10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

__________________________________________________________

FORM 10-K

__________________________________________________________

(Mark One)

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2016

or

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-20402

 __________________________________________________________

WILSON BANK HOLDING COMPANY

(Exact name of registrant as specified in its charter)

__________________________________________________________

Tennessee	62-1497076
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
623 West Main Street
Lebanon, Tennessee	37087
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(615) 444-2265

Securities registered pursuant to Section 12(b) of the Act:

None

Securities registered pursuant to Section 12(g) of the Act:

Common Stock, $2.00 par value per share

(Title of class)

__________________________________________________________

 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  o    No  x

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.    Yes  o    No  x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  o

 No x

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	o	Accelerated filer	x
Non-accelerated filer	o   (Do not check if a smaller reporting company)	Smaller reporting company	o

The aggregate market value of the voting stock held by non-affiliates of the registrant on June 30, 2016, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $375,210,585. For purposes of this calculation, “affiliates” are considered to be the directors and executive officers of the registrant. The market value calculation was determined using $39.75 per share.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  o   No  x

Shares of common stock, $2.00 par value per share, outstanding on March 10, 2017 were 10,381,664.

DOCUMENTS INCORPORATED BY REFERENCE

Part of Form 10-K	Documents from which portions are incorporated by reference
Part II	Portions of the Registrant’s Annual Report to Shareholders for the fiscal year ended December 31, 2016 are incorporated by reference into Items 1, 5, 6, 7, 7A and 8.
Part III	Portions of the Registrant’s Proxy Statement relating to the Registrant’s Annual Meeting of Shareholders to be held on April 11, 2017 are incorporated by reference into Items 10, 11, 12, 13 and 14.

PART I

Item 1. Business.

General

Wilson Bank Holding Company (the “Company”) was incorporated on March 17, 1992 under the laws of the State of Tennessee. The purpose of the Company was to acquire all of the issued and outstanding capital stock of Wilson Bank and Trust (the “Bank”) and act as a one-bank holding company. On November 17, 1992, the Company acquired 100% of the capital stock of the Bank pursuant to the terms of an agreement and plan of share exchange.

All of the Company’s banking business is conducted through the Bank, a state chartered bank organized under the laws of the State of Tennessee. The Bank, on December 31, 2016, had eleven full service banking offices located in Wilson County, Tennessee, one full service banking facility in Trousdale County, Tennessee, two full service banking offices in eastern Davidson County, Tennessee, five full service banking offices located in Rutherford County, Tennessee, two full service banking offices in DeKalb County, Tennessee, two full service banking offices in Smith County, Tennessee, two full service banking office in Sumner County, Tennessee and one full service banking office in Putnam County, Tennessee.

The Company’s principal executive office is located at 623 West Main Street, Lebanon, Tennessee, which is also the principal location of the Bank. The Bank’s branch offices are located at 1444 Baddour Parkway, Lebanon, Tennessee; 200 Tennessee Boulevard, Lebanon, Tennessee; 402 Public Square, Watertown, Tennessee; 8875 Stewart’s Ferry Pike, Gladeville, Tennessee; 1476 North Mt. Juliet Road, Mt. Juliet, Tennessee; 11835 Highway 70, Mt. Juliet, Tennessee; 127 McMurry Boulevard, Hartsville, Tennessee; 1130 Castle Heights Avenue North, Lebanon, Tennessee; the Wal-Mart Super Center, Lebanon, Tennessee; 440 Highway 109 North, Lebanon, Tennessee; 1436 West Main Street, Lebanon, Tennessee; 709 South Mt. Juliet Road, Mt. Juliet, Tennessee 37122; 4736 Andrew Jackson Parkway in Hermitage, Tennessee; 217 Donelson Pike, Nashville, Tennessee; 710 NW Broad St, Murfreesboro, Tennessee; 3110 Memorial Blvd, Murfreesboro, Tennessee; 210 Commerce Drive, Smyrna, Tennessee; 2640 South Church Street, Murfreesboro, Tennessee; 4195 Franklin Road, Murfreesboro, Tennessee; 576 West Broad Street, Smithville, Tennessee; 306 Brush Creek Road, Alexandria, Tennessee; 1300 Main Street North, Carthage, Tennessee; 7 New Middleton Highway, Gordonsville, Tennessee; 455 West Main Street, Gallatin, Tennessee; 175 East Main Street, Hendersonville, Tennessee and 320 South Jefferson Avenue, Cookeville, Tennessee.Management believes that Wilson County, Trousdale County, Davidson County, Rutherford County, DeKalb County, Smith County, Sumner County, and Putnam County offer an environment for continued banking growth in the Company’s target market, which consists of local consumers, professionals and small-to-medium-sized businesses. The Bank offers a wide range of banking services, including checking, savings, and money market deposit accounts, certificates of deposit and loans for consumer, commercial and real estate purposes. The Bank also offers custodial, trust and discount brokerage services to its customers. The Bank does not have a concentration of deposits obtained from a single person or entity or a small group of persons or entities, the loss of which would have a material adverse effect on the business of the Bank.

The Bank was organized in 1987 to provide Wilson County with a locally-owned, locally-managed commercial bank. Since its opening, the Bank has experienced a steady growth in deposits and loans as a result of providing personal, service-oriented banking services to its targeted market. For the year ended December 31, 2016, the Company reported net earnings of approximately $25.63 million and at December 31, 2016 it had total assets of approximately $2.20 billion.

Financial and Statistical Information

The Company’s audited consolidated financial statements, selected financial data and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Company’s Annual Report to Shareholders for the year ended December 31, 2016 filed as Exhibit 13.1 to this Form 10-K (the “2016 Annual Report”), are incorporated herein by reference.

Regulation and Supervision

Both the Company and the Bank are subject to extensive state and federal banking laws and regulations that impose restrictions on and provide for general regulatory oversight of the Company’s and the Bank’s operations. These laws and regulations are generally intended to protect depositors and borrowers, and may not necessarily protect shareholders.

In July 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) was signed into law. The Dodd-Frank Act and the regulations promulgated thereunder implements far-reaching reforms of major elements of the financial landscape, particularly for larger financial institutions. Many of its most far-reaching provisions do not directly apply

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to community-based institutions like the Company or the Bank. For instance, provisions that regulate derivative transactions and limit derivatives trading activity of federally-insured institutions, enhance supervision of “systemically significant” institutions, impose new regulatory authority over hedge funds, limit proprietary trading by banks, and phase-out the eligibility of trust preferred securities for Tier 1 capital for institutions with greater than $15.0 billion in total assets are among the provisions that do not directly impact the Company either because of exemptions for institutions below a certain asset size or because of the nature of the Company’s operations. Those provisions that have been adopted or are expected to be adopted that have impacted and, in some cases, will continue to impact the Company include the following:

• Changing the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminating the ceiling and increasing the size of the floor of the Deposit Insurance Fund, and offsetting the impact of the increase in the minimum floor on institutions with less than $10 billion in assets.

• Making permanent the $250,000 limit for federal deposit insurance and increasing the cash limit of Securities Investor Protection Corporation protection to $250,000.

• Repealing the federal prohibition on payment of interest on demand deposits, thereby permitting depositing institutions to pay interest on business transaction and other accounts.

• Centralizing responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, responsible for implementing federal consumer protection laws, although banks below $10 billion in assets will continue to be examined and supervised for compliance with these laws by their primary federal banking regulator.

• Limiting the debit interchange fees that financial institutions larger than a certain size are permitted to charge.

• Imposing new requirements for mortgage lending, including new minimum underwriting standards, prohibitions on certain yield-spread compensation to mortgage originators, special consumer protections for mortgage loans that do not meet certain provision qualifications, prohibitions and limitations on certain mortgage terms and various new mandated disclosures to mortgage borrowers.

• Applying the same leverage and risk based capital requirements that apply to insured depository institutions to their holding companies.

• Permitting national and state banks to establish de novo interstate branches at any location where a bank based in that state could establish a branch, and requiring that bank holding companies and banks be well-capitalized and well managed in order to acquire banks located outside their home state.

• Imposing new limits on affiliated transactions and causing derivative transactions to be subject to lending limits.

• Implementing certain corporate governance revisions that apply to all public companies.

Many aspects of the Dodd-Frank Act, including some described above, are not yet effective and remain subject to rulemaking and will take effect over several years, and their impact on the Company or the financial industry is difficult to predict before such regulations are adopted.

The Company is a bank holding company within the meaning of the Bank Holding Company Act of 1956 (the “BHC Act”) and is registered with the Board of Governors of the Federal Reserve System (the “FRB”). The Company is required to file annual reports and other information regarding its business operations and those of its bank subsidiary with, and is subject to examination by, the FRB. The Bank is chartered under the laws of the State of Tennessee and is subject to the supervision of, and is regularly examined by, the Tennessee Department of Financial Institutions (the “TDFI”). The Bank is also regularly examined by the Federal Deposit Insurance Corporation (“FDIC”), the government entity that insures the Bank’s deposits subject to applicable limitations.

Under the BHC Act, a bank holding company may not directly or indirectly acquire ownership or control of more than five percent of the voting shares or substantially all of the assets of any company, including a bank, without the prior approval of the FRB unless the bank holding company already owns a majority of such company. In addition, bank holding companies are generally prohibited under the BHC Act from engaging in non-banking activities, subject to certain exceptions and the modernization of the financial services industry in connection with the passing of the Gramm-Leach-Bliley Act of 1999 (the “GLB Act”). Under the BHC Act, the FRB is authorized to approve the ownership by a bank holding company of shares of any

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company whose activities have been determined by the FRB to be so closely related to banking or to managing or controlling banks as to be a proper incident thereto.

Subject to various exceptions, the BHC Act and the Federal Change in Bank Control Act, together with related regulations, require FRB approval prior to any person or company acquiring "control" of a bank holding company. Control is conclusively presumed to exist if an individual or company acquires 25% or more of any class of voting securities of the bank holding company. Control is refutably presumed to exist if a person or company acquires 10% or more, but less than 25%, of any class of voting securities and either:

• The bank holding company has registered securities under Section 12 of the Securities Exchange Act of 1934;

• No other person owns a greater percentage of that class of voting securities immediately after the transaction.

The Company’s common stock is registered under Section 12 of the Securities Exchange Act of 1934. The regulations provide a procedure for challenge of the rebuttable control presumption.

Under the GLB Act, a “financial holding company” may engage in activities the FRB determines to be financial in nature or incidental to such financial activity or complementary to a financial activity and not a substantial risk to the safety and soundness of such depository institutions or the financial system. Generally, such companies may engage in a wide range of securities activities and insurance underwriting and agency activities. The Company has not made application to the FRB to become a “financial holding company.”

Under the BHC Act, a bank holding company, which has not qualified or elected to become a financial holding company, is generally prohibited from engaging in or acquiring direct or indirect control of more than 5% of the voting shares of any company engaged in nonbanking activities unless, prior to the enactment of the Gramm-Leach-Bliley Act, the FRB found those activities to be so closely related to banking as to be a proper incident to the business of banking. Activities that the FRB has found to be so closely related to banking as to be a proper incident to the business of banking include:

• Factoring accounts receivable;

• Acquiring or servicing loans;

• Leasing personal property;

• Conducting discount securities brokerage activities;

• Performing selected data processing services;

• Acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; and

• Underwriting certain insurance risks of the holding company and its subsidiaries.

Despite prior approval, the FRB may order a bank holding company or its subsidiaries to terminate any of these activities or to terminate its ownership or control of any subsidiary when it has reasonable cause to believe that the bank holding company’s continued ownership, activity or control constitutes a serious risk to the financial safety, soundness, or stability of any of its bank subsidiaries.

Under the Tennessee Bank Structure Act, a bank holding company which controls 30% or more of the total deposits (excluding certain deposits) in all federally insured financial institutions in Tennessee is prohibited from acquiring any bank in Tennessee. With prior regulatory approval, Tennessee law permits banks based in the state to either establish new or acquire existing branch offices throughout Tennessee. As a result of the Dodd-Frank Act, the Bank and other state-chartered or national banks generally may establish new branches in another state to the same extent as banks chartered in the other state may establish new branches in that state.

The Company and the Bank are subject to certain restrictions imposed by the Federal Reserve Act and the Federal Deposit Insurance Act, respectively, on any extensions of credit to the bank holding company or its subsidiary bank, on investments in the stock or other securities of the bank holding company or its subsidiary bank, and on taking such stock or other securities as collateral for loans of any borrower. The Bank takes Company common stock as collateral for borrowings subject to the aforementioned restrictions.

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Both the Company and the Bank are subject to the provisions of Section 23A of the Federal Reserve Act. Section 23A places limits on the amount of:

• A bank’s loans or extensions of credit, including purchases of assets subject to an agreement to repurchase, to or for the benefit of affiliates;

• A bank’s investment in affiliates;

• Assets a bank may purchase from affiliates, except for real and personal property exempted by the FRB;

• The amount of loans or extensions of credit to third parties collateralized by the securities or obligations of affiliates;

• Transactions involving the borrowing or lending of securities and any derivative transaction that results in credit exposure to an affiliate; and

• A bank’s guarantee, acceptance or letter of credit issued on behalf of an affiliate.

The total amount of the above transactions is limited in amount, as to any one affiliate, to 10% of a bank’s capital and surplus and, as to all affiliates combined, to 20% of a bank’s capital and surplus. In addition to the limitation on the amount of these transactions, each of the above transactions must also meet specified collateral requirements. The Bank must also comply with other provisions designed to avoid the taking of low-quality assets.

The Company and the Bank are also subject to the provisions of Section 23B of the Federal Reserve Act which, among other things, prohibits an institution from engaging in the above transactions with affiliates unless the transactions are on terms substantially the same, or at least as favorable to the institution or its subsidiaries, as those prevailing at the time for comparable transactions with nonaffiliated companies.

The Bank is also subject to restrictions on extensions of credit to its executive officers, directors, principal stockholders and their related interests. These extensions of credit (1) must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with third parties, and (2) must not involve more than the normal risk of repayment or present other unfavorable features.

The FRB has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The FRB has issued a policy statement expressing its view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality, and overall financial condition.

The Company is a legal entity separate and distinct from the Bank. Over time, the principal source of the Company’s cash flow, including cash flow to pay dividends to the Company’s common stock shareholders, will be dividends that the Bank pays to the Company as its sole shareholder. Under Tennessee law, the Company is not permitted to pay dividends if, after giving effect to such payment, the Company would not be able to pay its debts as they become due in the normal course of business or the Company’s total assets would be less than the sum of its total liabilities plus any amounts needed to satisfy any preferential rights if the Company were dissolving. In addition, in deciding whether or not to declare a dividend of any particular size, the Company’s board of directors must consider the Company’s current and prospective capital, liquidity, and other needs.

Statutory and regulatory limitations also apply to the Bank’s payment of dividends to the Company. Under Tennessee law, the Bank in any one calendar year can only pay dividends to the Company in an amount equal to or less than the total amount of its net income for that calendar year combined with retained net income for the preceding two years. Payment of dividends in excess of this amount requires the consent of the Commissioner of the TDFI.

The payment of dividends by the Bank and the Company may also be affected by other factors, such as the requirement to maintain adequate capital above regulatory guidelines. The federal banking agencies have indicated that paying dividends that deplete a depository institution’s capital base to an inadequate level would be an unsafe and unsound banking practice. Under the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”), a depository institution may not pay any dividend if payment would cause it to become undercapitalized or if it already is undercapitalized. Moreover, the federal agencies

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have issued policy statements that provide that bank holding companies and insured banks should generally only pay dividends out of current operating earnings.

Under the Dodd-Frank Act, and previously under FRB policy, the Company is required to act as a source of financial strength for the Bank and to commit resources to support the Bank. This support can be required at times when it would not be in the best interest of the Company’s shareholders or creditors to provide it. Further, if the Bank’s capital levels were to fall below certain minimum regulatory guidelines, the Bank would need to develop a capital plan to increase its capital levels and the Company would be required to guarantee the Bank’s compliance with the capital plan in order for such plan to be accepted by the federal regulatory agency. In the event of bankruptcy, any commitment by the Company to a federal regulatory agency to maintain the capital of the Bank would be assumed by the bankruptcy trustee and entitled to a priority of payment.

Both the Company and the Bank are required to comply with the capital adequacy standards established by the FRB, in the Company’s case, and the FDIC, in the case of the Bank. The FRB has established a risk-based and a leverage measure of capital adequacy for bank holding companies, like the Company. The Bank is also subject to risk-based and leverage capital requirements adopted by the FDIC, which are substantially similar to those adopted by the FRB for bank holding companies. In addition, the FDIC and TDFI may require state banks that are not members of the FRB, like the Bank, to maintain capital at levels higher than those required by general regulatory requirements.

The risk-based capital standards are designed to make regulatory capital requirements more sensitive to differences in risk profiles among banks and bank holding companies, to account for off-balance-sheet exposure, and to minimize disincentives for holding liquid assets. Assets and off-balance-sheet items, such as letters of credit and unfunded loan commitments, are assigned to broad risk categories, each with appropriate risk weights. The resulting capital ratios represent capital as a percentage of total risk-weighted assets and off-balance-sheet items.

In late 2010, the Basel Committee on Banking Supervision issued “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (“Basel III”), a new capital framework for banks and bank holding companies. Basel III imposes a stricter definition of capital, with more focus on common equity for those banks and bank holding companies to which it is applicable. In July 2013, the federal bank regulatory authorities, including the FRB and the FDIC, approved final rules that revised their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel III Committee on Banking Supervision in Basel III and certain provisions of the Dodd-Frank Act. The final rules, which became effective as to the Company and the Bank on January 1, 2015, apply to all depository institutions, top-tier bank holding companies with total consolidated assets of $1 billion or more, and top-tier savings and loan holding companies (“banking organizations”). Under the rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The rules, among other things, included new minimum risk-based capital and leverage ratios. Moreover, these rules refined the definition of what constitutes “capital” for purposes of calculating those ratios. Since January 1, 2015, the minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also established a “capital conservation buffer” of 2.5% (to be phased in over three years) above the regulatory minimum capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7.0%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The phase in of the capital conservation buffer requirement began in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if its capital levels fall below the minimum amounts plus the then applicable buffer. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. For the quarters ending in calendar year 2017, neither the Company nor the Bank will be required to obtain regulatory approval for dividends, stock repurchases or payment of discretionary bonuses solely as a result of these buffers as long as its common equity Tier 1 capital ratio exceeds 5.75%, its Tier 1 capital ratio exceeds 7.25% and its total capital ratio exceeds 9.25%. Each of these amounts will increase by an additional 0.625% on January 1st of 2018 and 2019.

Under the rules implementing Basel III, Tier 1 capital generally consists of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments, and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. Cumulative preferred stock and trust preferred securities issued after May 19, 2010, will no longer qualify as Tier 1 capital, but such securities issued prior to May 19, 2010, including in the case of bank holding companies with less than $15.0 billion in total assets as of December 31, 2009, trust preferred securities issued prior to that date, will continue to count as Tier 1 capital subject to certain limitations. The definition of Tier 2 capital is generally unchanged from the definition in place prior to January 1, 2015 for most banking organizations, subject to certain new eligibility criteria.

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Common equity Tier 1 capital generally consists of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions.

The final rules implementing Basel III allow banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company and the Bank each opted out of this requirement.

The FRB has adopted regulations applicable to bank holding companies with assets over $10 billion that require such holding companies to develop and submit to the FRB annually capital plans demonstrating the company’s ability to meet, under various stressed economic conditions and over a nine-quarter planning horizon, the above-described minimum leverage capital, Tier 1 risk-based capital and total risk-based capital requirements, as well as a minimum Tier 1 common capital ratio (Tier 1 risk-based capital less preferred stock and trust preferred securities) of at least 5%. While these regulations are not applicable to the Company, the Company’s federal regulator may seek to impose similar stress testing on the Company through its examination authority.

Failure to meet statutorily mandated capital guidelines or more restrictive ratios separately established for a financial institution could subject a bank or bank holding company to a variety of enforcement remedies, including issuance of a capital directive, the termination of deposit insurance by the FDIC, a prohibition on accepting or renewing brokered deposits, limitations on the rates of interest that the institution may pay on its deposits, limitations on the ability to hire senior executive officers or add directors without prior approval and other restrictions on its business. As described above, significant additional restrictions can be imposed on FDIC-insured depository institutions that fail to meet applicable capital requirements.

Additionally, the FDICIA establishes a system of prompt corrective action to resolve the problems of undercapitalized financial institutions. Under this system, the federal banking regulators have established five capital categories (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized) into one of which all institutions are categorized. Federal banking regulators are required to take various mandatory supervisory actions and are authorized to take other discretionary actions with respect to institutions in the three undercapitalized categories. The severity of the action depends upon the capital category in which the institution is placed. Generally, subject to a narrow exception, the banking regulator must appoint a receiver or conservator for an institution that is critically undercapitalized. The federal banking agencies have specified by regulation the relevant capital level for each category. Effective as of January 1, 2015, the relevant capital ratios associated with each of these categories is as set forth on the following table:

	Common Equity Tier 1 Risk-based Capital ratio	Total Risk-based Capital ratio	Tier 1 Risk-based Capital ratio	Tier 1 Leverage ratio
Well capitalized	6.5%	10%	8%	5%
Adequately capitalized	4.5%	8%	6%	4%
Undercapitalized	< 4.5%	< 8%	< 6%	< 4%
Significantly undercapitalized	< 3%	< 6%	< 4%	< 3%
Critically undercapitalized	Tangible Equity/Total Assets ≤ 2%

State nonmember banks are required to be "well-capitalized" in order to take advantage of expedited procedures on certain applications, such as branches and mergers, and to accept and renew brokered deposits without further regulatory approval.

The FDIC has adopted a risk-based assessment system for insured depository institutions that takes into account the risks attributable to different categories and concentrations of assets and liabilities. Under the Dodd-Frank Act, the FDIC adopted regulations that base deposit insurance assessments on total assets less capital rather than deposit liabilities and include off-balance sheet liabilities of institutions and their affiliates in risk-based assessments.

The Dodd-Frank Act increased the basic limit on federal deposit insurance coverage to $250,000 per depositor. The Dodd-Frank Act also repealed the prohibition on paying interest on demand transaction accounts, but did not extend unlimited insurance protection for these accounts.

The FDIC may terminate its insurance of deposits if it finds that the institution has engaged in unsafe and unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, rule, order or condition imposed by the FDIC.

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The Financial Reform, Recovery and Enforcement Act of 1989 provides that a holding company’s controlled insured depository institutions are liable for any loss incurred by the FDIC in connection with the default of, or any FDIC-assisted transaction involving, an affiliated insured bank or savings association.

The maximum permissible rates of interest on most commercial and consumer loans made by the Bank are governed by Tennessee’s general usury law and the Tennessee Industrial Loan and Thrift Companies Act (“Industrial Loan Act”). Certain other usury laws affect limited classes of loans, but the Company believes that the laws referenced above are the most significant. Tennessee’s general usury law authorizes a floating rate of 4% per annum over the average prime or base commercial loan rate, as published by the FRB from time to time, subject to an absolute 24% per annum limit. The Industrial Loan Act, which is generally applicable to most of the loans made by the Bank in Tennessee, authorizes an interest rate of up to 24% per annum and also allows certain loan charges, generally on a more liberal basis than does the general usury law.

The Bank's loan operations are also subject to federal laws applicable to credit transactions, such as the:

• Federal Truth-In-Lending Act, governing disclosures of credit terms and costs to consumer borrowers giving consumers the right to cancel certain credit transactions, and defining requirements for servicing consumer loans secured by a dwelling;

• Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;

• Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;

• Fair Credit Reporting Act of 1978, governing the use and provision of information to credit reporting agencies;

• Fair Debt Collection Practices Act, governing the manner in which consumer debts may be collected by collection agencies;

• Service Members' Civil Relief Act, governing the repayment terms of, and property rights underlying, secured obligations of persons in active military service;

• Rules and regulations of the various federal agencies charged with the responsibility of implementing the federal laws;

• Electronic Funds Transfer Act, which regulates fees and other terms of electronic funds transactions;

• Fair and Accurate Credit Transactions Act of 2003, which permanently extended the national credit reporting standards of the Fair Credit Reporting Act, and permits consumers, including the Bank’s customers, to opt out of information sharing among affiliated companies for marketing purposes and requires financial institutions, including banks, to notify a customer if the institution provides negative information about the customer to a national credit reporting agency or if the credit that is granted to the customer is on less favorable terms than those generally available;

• the Fair Housing Act, which prohibits discriminatory practices relative to real estate related transactions, including the financing of housing and the rules and regulations of the various federal agencies charged with the responsibility of implementing such federal laws; and

• the Real Estate Settlement and Procedures Act of 1974, which affords consumers greater protection pertaining to federally related mortgage loans by requiring, among other things, improved and streamlined good faith estimate forms including clear summary information and improved disclosure of yield spread premiums.

The Bank’s deposit operations are subject to the:

• Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;

• Electronic Funds Transfer Act and Regulation E issued by the Federal Reserve to implement that act, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities (including with respect to the permissibility of overdraft charges) arising from the use of automated teller machines and other electronic banking services;

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• the Truth in Savings Act, which requires depository institutions to disclose the terms of deposit accounts to consumers;

• the Expedited Funds Availability Act, which requires financial institutions to make deposited funds available according to specified time schedules and to disclose funds availability policies to consumers; and

• the Check Clearing for the 21st Century Act (“Check 21”), which is designed to foster innovation in the payments system and to enhance its efficiency by reducing some of the legal impediments to check truncation. Check 21 created a new negotiable instrument called a substitute check and permits, but does not require, banks to truncate original checks, process check information electronically, and deliver substitute checks to banks that wish to continue receiving paper checks.

The Bank’s loan and deposit operations are both subject to the Bank Secrecy Act which governs how banks and other firms report certain currency transactions and maintain appropriate safeguards against "money laundering" activities.

The President of the United States signed the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “Patriot Act”), into law on October 26, 2001. The Patriot Act established a wide variety of new and enhanced ways of combating international terrorism. The provisions that affect banks (and other financial institutions) most directly are contained in Title III of the act. In general, Title III amended existing law - primarily the Bank Secrecy Act - to provide the Secretary of the U.S. Department of the Treasury (the “Treasury”) and other departments and agencies of the federal government with enhanced authority to identify, deter, and punish international money laundering and other crimes.

Among other things, the Patriot Act prohibits financial institutions from doing business with foreign "shell" banks and requires increased due diligence for private banking transactions and correspondent accounts for foreign banks. In addition, financial institutions will have to follow new minimum verification of identity standards for all new accounts and will be permitted to share information with law enforcement authorities under circumstances that were not previously permitted. These and other provisions of the Patriot Act became effective at varying times, and the Treasury and various federal banking agencies are responsible for issuing regulations to implement the law.

The Community Reinvestment Act of 1977 (the “Community Reinvestment Act”) requires that, in connection with examinations of financial institutions within their respective jurisdictions, the FRB and the FDIC shall evaluate the record of each financial institution in meeting the credit needs of its local community, including low- and moderate-income neighborhoods. These facts are also considered in evaluating mergers, acquisitions, and applications to open a branch or facility. Failure to adequately meet these criteria could impose additional requirements and limitations on the Bank. Additionally, banks are required to publicly disclose the terms of various Community Reinvestment Act-related agreements. The Bank received an “outstanding” Community Reinvestment Act rating from its primary federal regulator on its most recent regulatory examination.

The banking industry is generally subject to extensive regulatory oversight. The Company, as a bank holding company with securities registered under the Securities Exchange Act of 1934, and the Bank, as a state-chartered bank with deposits insured by the FDIC, are subject to a number of laws and regulations. Many of these laws and regulations have undergone significant change in recent years. In July 2010, the U.S. Congress passed the Dodd-Frank Act, which includes significant consumer protection provisions related to, among other things, residential mortgage loans that have increased, and are likely to further increase, the Company's regulatory compliance costs. With the enactment of the Dodd-Frank Act and the significant amount of regulations that have already been adopted and that are to come from the passage of that legislation, the nature and extent of the future legislative and regulatory changes affecting financial institutions and the resulting impact on those institutions is very unpredictable at this time. The Dodd-Frank Act, in particular, required that a significant number of new regulations be adopted by various financial regulatory agencies, many of which have been implemented but some of which remain to be implemented.

Competition

The banking business is highly competitive. The Company's primary market area consists of Wilson, Trousdale, Davidson, Rutherford, DeKalb, Smith, Sumner and Putnam Counties in Tennessee. The Company competes with numerous commercial banks and savings institutions with offices in these market areas. In addition to these competitors, the Company competes for loans with insurance companies, regulated small loan companies, credit unions, and certain government agencies. The Company also competes with numerous companies and financial institutions engaged in similar lines of business, such as mortgage banking

10

companies, brokerage companies and lending companies. Some of the Company's competitors have significantly greater financial resources and offer a greater number of branch locations. To offset this advantage of its larger competitors, the Company believes it can attract customers by providing loan and management decisions at the local level. The Company does not experience significant seasonal trends in its operations.

Monetary Policies

The results of operations of the Bank and the Company are affected by the policies of the regulatory authorities, particularly the FRB. An important function of the FRB is to regulate the national supply of bank credit in order to combat recession and curb inflation. Among the instruments used to attain these objectives are open market operations in U.S. government securities, changes in the discount rate on bank borrowings and changes in reserve requirements relating to member bank deposits. These instruments are used in varying combinations to influence overall growth and distribution of bank loans, investments and deposits, and their use may also affect interest rates charged on loans and paid for deposits. Policies of the regulatory agencies have had a significant effect on the operating results of commercial banks in the past and are expected to do so in the future. The effect of such policies upon the future business and results of operations of the Company and the Bank cannot be predicted with accuracy.

Employment

As of March 10, 2017, the Company and its subsidiary collectively employed 444 full-time equivalent employees.

Available Information

The Company’s Internet website is http://www.wilsonbank.com. Please note that the Company's website address is provided as an inactive textual reference only. The Company makes available free of charge on its website the Company’s annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports as soon as reasonably practicable after it electronically files or furnishes such materials to the Securities and Exchange Commission (the “SEC”). The information provided on the Company's website is not part of this report, and is therefore not incorporated by reference herein unless such information is otherwise specifically referenced elsewhere in this report.

Statistical Information Required by Guide 3

The statistical information required to be displayed under Item 1 pursuant to Guide 3, “Statistical Disclosure by Bank Holding Companies,” of the Exchange Act Industry Guides is incorporated herein by reference to the Consolidated Financial Statements and the notes thereto and the Management’s Discussion and Analysis sections in the Company’s 2016 Annual Report. Certain information not contained in the Company’s 2016 Annual Report, but required by Guide 3, is contained in the tables immediately following:

[REMINDER OF PAGE INTENTIONALLY LEFT BLANK]

11

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

 I. Distribution of Assets, Liabilities and Stockholders' Equity;

Interest Rates and Interest Differential

The schedule which follows indicates the average balances for each major balance sheet item, an analysis of net interest income and net interest expense and the change in interest income and interest expense attributable to changes in volume and changes in rates.

The difference between interest income on interest-earning assets and interest expense on interest-bearing liabilities is net interest income, which is the Company's gross margin. Analysis of net interest income is more meaningful when income from tax-exempt earning assets is adjusted to a tax equivalent basis. Accordingly, the following schedule includes a tax equivalent adjustment of tax-exempt earning assets, assuming a weighted average Federal income tax rate of 34%.

In this schedule, "change due to volume" is the change in volume multiplied by the interest rate for the prior year. "Change due to rate" is the change in interest rate multiplied by the volume for the prior year. Changes in interest income and expense not due solely to volume or rate changes have been allocated to the “change due to volume” and “change due to rate” in proportion to the relationship of the absolute dollar amounts of the change in each category.

Non-accrual loans have been included in the loan category. Loan fees of $5,935,000, $4,698,000 and $4,075,000 for 2016, 2015 and 2014, respectively, are included in loan income and represent an adjustment of the yield on these loans.

12

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

	Dollars In Thousands
	2016						2015						2016/2015 Change
	Average Balance			Average Yield		Income/ Expense	Average Balance			Average Yield		Income/ Expense	Due to Volume			Due to Rate		Total
Loans, net of unearned interest	$	1,571,528		4.90	%	77,024	$	1,418,561		5.04	%	71,543	$	7,557		(2,076	)	5,481
Investment securities—taxable	308,251			1.85		5,714	311,925			1.88		5,868	(64		)	(90	)	(154	)
Investment securities—tax exempt	60,464			1.97		1,191	37,810			2.03		768	447			(24	)	423
Taxable equivalent adjustment	—			1.02		614	—			1.05		396	231			(13	)	218
Total tax-exempt investment securities	60,464			2.99		1,805	37,810			3.08		1,164	678			(37	)	641
Total investment securities	368,715			2.04		7,519	349,735			2.01		7,032	614			(127	)	487
Loans held for sale	12,228			3.20		391	10,724			3.59		385	51			(45	)	6
Federal funds sold and interest bearing deposits	74,242			.41		304	75,842			.20		154	3			147		150
Restricted equity securities	3,012			4.05		122	3,012			4.02		121	—			1		1
Total earning assets	2,029,725			4.21		85,360	1,857,874			4.26		79,235	8,225			(2,100	)	6,125
Cash and due from banks	12,997						9,290
Allowance for loan losses	(23,013		)				(22,588		)
Bank premises and equipment	42,418						40,743
Other assets	61,102						55,198
Total assets	$	2,123,229					$	1,940,517

13

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

	Dollars In Thousands
	2016					2015					2016/2015 Change
	Average Balance		Average Yield		Income/ Expense	Average Balance		Average Yield		Income/ Expense	Due to Volume			Due to Rate		Total
Deposits:
Negotiable order of withdrawal accounts	$	449,053	.31	%	1,371	$	398,881	.38	%	1,515	$	168		(312	)	(144	)
Money market demand accounts	582,408		.25		1,471	499,942		.29		1,463	222			(214	)	8
Individual retirement accounts	84,732		.85		720	89,340		.95		846	(42		)	(84	)	(126	)
Other savings deposits	117,802		.38		444	105,648		.42		443	47			(46	)	1
Certificates of deposit	426,858		1.00		4,258	442,702		.98		4,333	(161		)	86		(75	)
Total interest-bearing deposits	1,660,853		.50		8,264	1,536,513		.56		8,600	234			(570	)	(336	)
Securities sold under repurchase agreements	1,214		.25		3	2,505		.28		7	(3		)	(1	)	(4	)
Federal funds purchased	2,348		.72		17	90		1.11		1	—			—		16
Total interest-bearing liabilities	1,664,415		.50		8,284	1,539,108		.56		8,608	231			(571	)	(324	)
Demand deposits	210,655					178,281
Other liabilities	10,831					9,525
Stockholders’ equity	237,328					213,603
Total liabilities and stockholders’ equity	$	2,123,229				$	1,940,517
Net interest income					77,076					70,627
Net yield on earning assets (1)			3.80	%				3.80	%
Net interest spread (2)			3.71	%				3.70	%

(1) Net interest income divided by average earning assets.

(2) Average interest rate on earning assets less average interest rate on interest-bearing liabilities.

14

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

	Dollars In Thousands
	2015						2014						2015/2014 Change
	Average Balance			Average Yield		Income/ Expense	Average Balance			Average Yield		Income/ Expense	Due to Volume			Due to Rate		Total
Loans, net of unearned interest	$	1,418,561		5.04	%	71,543	$	1,261,131		5.29	%	66,685	$	8,098		(3,240	)	4,858
Investment securities—taxable	311,925			1.88		5,868	340,969			1.90		6,464	(531		)	(65	)	(596	)
Investment securities—tax exempt	37,810			2.03		768	32,814			2.07		679	102			(13	)	89
Taxable equivalent adjustment	—			1.05		396	—			1.07		350	53			(7	)	46
Total tax-exempt investment securities	37,810			3.08		1,164	32,814			3.14		1,029	155			(20	)	135
Total investment securities	349,735			2.01		7,032	373,783			2.00		7,493	(376		)	(85	)	(461	)
Loans held for sale	10,724			3.59		385	7,342			3.58		263	121			1		122
Federal funds sold, and interest bearing deposits	75,842			.20		154	85,987			.19		167	(21		)	8		(13	)
Restricted equity securities	3,012			4.02		121	3,012			4.05		122	—			(1	)	(1	)
Total earning assets	1,857,874			4.26		79,235	1,731,255			4.32		74,730	7,822			(3,317	)	4,505
Cash and due from banks	9,290						10,597
Allowance for loan losses	(22,588		)				(23,230		)
Bank premises and equipment	40,743						39,293
Other assets	55,198						50,452
Total assets	$	1,940,517					$	1,808,367

15

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

	Dollars In Thousands
	2015					2014					2015/2014 Change
	Average Balance		Average Yield		Income/ Expense	Average Balance		Average Yield		Income/ Expense	Due to Volume			Due to Rate		Total
Deposits:
Negotiable order of withdrawal accounts	$	398,881	.38	%	1,515	$	349,375	.45	%	1,587	$	199		(271	)	(72	)
Money market demand accounts	499,942		.29		1,463	439,867		.42		1,831	237			(605	)	(368	)
Individual retirement accounts	89,340		.95		846	93,687		1.12		1,047	(47		)	(154	)	(201	)
Other savings deposits	105,648		.42		443	99,753		.54		535	31			(123	)	(92	)
Certificates of deposit	442,702		.98		4,333	474,310		1.00		4,744	(316		)	(95	)	(411	)
Total interest-bearing deposits	1,536,513		.56		8,600	1,456,992		.67		9,744	104			(1,248	)	(1,144	)
Securities sold under repurchase agreements	2,505		.28		7	5,784		.40		23	(10		)	(6	)	(16	)
Federal funds purchased	90		1.11		1	123		.81		1	—			—		—
Total interest-bearing liabilities	1,539,108		.56		8,608	1,462,899		.67		9,768	94			(1,254	)	(1,160	)
Demand deposits	178,281					146,473
Other liabilities	9,525					9,186
Stockholders’ equity	213,603					189,809
Total liabilities and stockholders’ equity	$	1,940,517				$	1,808,367
Net interest income					70,627					64,962
Net yield on earning assets (1)			3.80	%				3.75	%
Net interest spread (2)			3.70	%				3.65	%

(1)Net interest income divided by average earning assets.

(2)Average interest rate on earning assets less average interest rate on interest-bearing liabilities.

16

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

II. Investment Portfolio:

A.    Investment securities at December 31, 2016 consist of the following:

	Securities Held-To-Maturity
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
U.S. Government-sponsored enterprises (GSEs) residential	$	11,856	48	230	11,674
Obligations of states and political subdivisions	24,768		142	439	24,471
	$	36,624	190	669	36,145

	Securities Available-For-Sale
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)	$	61,879	—	2,391	59,488
Mortgage-backed:
GSE residential	166,316		496	2,447	164,365
Asset-backed:
SBAP	37,577		9	729	36,857
Obligations of states and political subdivisions	53,429		52	1,606	51,875
	$	319,201	557	7,173	312,585

17

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

II. Investment Portfolio, Continued

A.    Continued:

Investment securities at December 31, 2015 consist of the following:

	Securities Held-To-Maturity
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
U.S. Government-sponsored enterprises (GSEs) residential	$	9,375	60	169	9,266
Obligations of states and political subdivisions	18,820		288	9	19,099
	$	28,195	348	178	28,365

	Securities Available-For-Sale
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)	$	77,177	215	483	76,909
Mortgage-backed:
GSE residential	192,983		430	1,498	191,915
Asset-backed:
SBAP	31,253		54	273	31,034
Obligations of states and political subdivisions	31,093		274	97	31,270
	$	332,506	973	2,351	331,128

18

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

II. Investment Portfolio, Continued

A.    Continued:

Investment securities at December 31, 2014 consist of the following:

	Securities Held-To-Maturity
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
U.S. Government-sponsored enterprises (GSEs) residential	$	7,398	76	147	7,327
Obligations of states and political subdivisions	20,725		389	41	21,073
	$	28,123	465	188	28,400

	Securities Available-For-Sale
	(In Thousands)
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)	$	131,767	129	1,329	130,567
Mortgage-backed:
GSE residential	170,802		731	464	171,069
Asset-backed:
SBAP	30,627		98	205	30,520
Obligations of states and political subdivisions	14,324		98	158	14,264
	$	347,520	1,056	2,156	346,420

19

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

II. Investment Portfolio, Continued:

B. The following schedule details the contractual maturities and weighted average yields of investment securities of the Company. Actual maturities may differ from contractual maturities of mortage-backed securities because the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories noted below as of December 31, 2016:

Held-To-Maturity Securities	Amortized Cost		Estimated Market Value	Weighted Average Yields
	(In Thousands, Except Yields)
Mortgage-backed:
GSEs residential	$	11,856	11,674	2.86	%
Obligations of states and political subdivisions*:
Less than one year	2,003		2,013	5.41
One to three years	7,900		7,937	2.42
Three to five years	2,222		2,214	2.92
Five to ten years	8,307		8,124	3.08
More than ten years	4,336		4,183	3.31
Total obligations of states and political subdivisions	24,768		24,471	3.08
Total held-to-maturity securities	$	36,624	36,145	3.01	%

* Weighted average yield is stated on a tax-equivalent basis, assuming a weighted average Federal income tax rate of 34%.

20

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

 II. Investment Portfolio, Continued;

B.    Continued:

Available-For-Sale Securities	Amortized Cost		Estimated Market Value	Weighted Average Yields
	(In Thousands, Except Yields)
Mortgage and asset-backed securities	$	203,893	201,222	1.88	%
U.S. Government-sponsored enterprises (GSEs):
Less than one year	—		—	—
One to three years	—		—	—
Three to five years	7,000		6,872	1.56
Five to ten years	42,105		40,571	1.97
More than ten years	12,774		12,045	2.18
Total U.S. Government-sponsored enterprises (GSEs)	61,879		59,488	1.97
Obligations of states and political subdivisions*:
Less than one year	—		—	—
One to three years	3,308		3,311	2.01
Three to five years	6,624		6,566	2.36
Five to ten years	30,777		30,018	2.80
More than ten years	12,720		11,980	2.92
Total obligations of states and political subdivisions	53,429		51,875	2.72
Total available-for-sale securities	$	319,201	312,585	2.04	%

* Weighted average yield is stated on a tax-equivalent basis, assuming a weighted average Federal income tax rate of 34%.

21

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

III. Loan Portfolio:

A.    Loan Types

The following schedule details the loans of the Company at December 31, 2016, 2015, 2014, 2013 and 2012:

	In Thousands
	2016			2015		2014		2013		2012
Commercial, financial and agricultural	$	48,294		41,339		42,200		34,834		35,521
Real estate—construction	339,580			275,319		245,830		194,426		190,356
Real estate—mortgage	1,264,277			1,110,989		1,027,723		940,077		902,930
Installment	44,274			43,467		41,025		41,118		41,713
Total loans	1,696,425			1,471,114		1,356,778		1,210,455		1,170,520
Deferred loan fees	(6,606		)	(5,035	)	(4,341	)	(3,253	)	(2,912	)
Total loans, net of deferred fees	1,689,819			1,466,079		1,352,437		1,207,202		1,167,608
Less allowance for loan losses	(22,731		)	(22,900	)	(22,572	)	(22,935	)	(25,497	)
Net loans	$	1,667,088		1,443,179		1,329,865		1,184,267		1,142,111

22

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

III. Loan Portfolio, Continued:

B.    Maturities and Sensitivities of Loans to Changes in Interest Rates

The following table classifies our fixed and variable rate loans at December 31, 2016 according to contractual maturities of: (1) one year or less, (2) after one year through five years, and (3) after five years. The table also classifies our variable rate loans pursuant to the contractual repricing dates of the underlying loans (dollars in thousands):

	Amounts at December 31, 2016
	Fixed Rates		Variable Rates	Totals	At December 31, 2016
Based on contractual maturity:
Due within one year	$	211,142	33,547	244,689	14.4	%
Due in one year to five years	194,433		93,289	287,722	17.0
Due after five years	111,985		1,052,029	1,164,014	68.6
Totals	$	517,560	1,178,865	1,696,425	100.0	%
Based on contractual repricing dates:
Daily floating rate	$	—	10,871	10,871	0.6	%
Due within one year	211,142		289,802	500,944	29.5
Due in one year to five years	194,433		681,090	875,523	51.7
Due after five years	111,985		197,102	309,087	18.2
Totals	$	517,560	1,178,865	1,696,425	100.0	%

The following table represents the contractual maturities of the loan portfolio as of December 31, 2016 (dollars in thousands):

	Due Within One Year		Due in One to Five Years	Due After Five Years	Total
Commercial, financial and agricultural	$	8,699	16,259	23,336	48,294
Real estate—construction	116,246		79,143	144,191	339,580
Real estate—mortgage	104,219		164,295	995,763	1,264,277
Installment	15,525		28,025	724	44,274
	$	244,689	287,722	1,164,014	1,696,425

23

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

III. Loan Portfolio, Continued:

C.    Risk Elements

The following schedule details selected information as to non-performing loans of the Company at December 31, 2016, 2015, 2014, 2013 and 2012:

	In Thousands, Except Percentages
	2016			2015	2014	2013	2012
Non-accrual loans:
Commercial, financial and agricultural	$	—		—	—	—	—
Real estate—construction	—			—	—	3,524	9,626
Real estate—mortgage	3,565			4,909	616	2,053	7,229
Installment	—			—	—	—	—
Total non-accrual	$	3,565		4,909	616	5,577	16,855
Loans 90 days past due still accruing and non-performing TDRs:
Commercial, financial and agricultural	$	—		41	9	285	54
Real estate—construction	22			—	73	271	24
Real estate—mortgage	2,944			4,475	5,008	1,550	736
Installment	160			55	48	27	105
Total loans 90 days past due still accruing and non-performing TDRs	$	3,126		4,571	5,138	2,133	919
Total non-performing loans	$	6,691		9,480	5,754	7,710	17,774
Total loans, net of deferred fees	$	1,689,819		1,466,079	1,352,437	1,207,202	1,167,608
Percentage of total non- performing loans to total loans outstanding, net of deferred fees	.40		%	.65	.43	.64	1.52
Other real estate	$	4,527		5,410	7,298	12,869	15,307

24

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

III. Loan Portfolio, Continued:

C.    Risk Elements, Continued:

The accrual of interest income is discontinued when it is determined that collection of interest is less than probable or the collection of any amount of principal is doubtful. The decision to place a loan on a non-accrual status is based on an evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors that affect the borrower’s ability to pay. At the time a loan is placed on a non-accrual status, the accrued but unpaid interest is also evaluated as to collectability. If collectability is doubtful, the unpaid interest is charged off. Thereafter, interest on non-accrual loans is recognized only as received. Non-accrual loans totaled $3,565,000 at December 31, 2016, $4,909,000 at December 31, 2015, $616,000 at December 31, 2014, $5,577,000 at December 31, 2013 and $16,855,000 at December 31, 2012. Gross interest income on non-accrual loans that would have been recorded for the year ended December 31, 2016 if the loans had been current totaled $202,000 compared to $291,000 in 2015, $39,000 in 2014, $296,000 in 2013 and $775,000 in 2012. The amount of interest and fee income recognized on total loans during 2016 totaled $77,024,000 as compared to $71,543,000 in 2015, $66,685,000 in 2014, $66,177,000 in 2013 and $66,080,000 in 2012.

At December 31, 2016, loans, which include the above, totaling $16,158,000 were included in the Company’s internal classified loan list. Of these loans $16,021,000 are real estate and $137,000 are various other types of loans. The value collateralizing these loans is estimated by management to be approximately $27,982,000 ($27,968,000 related to real property securing real estate loans and $14,000 related to the various other types of loans). Such loans are listed as classified when information obtained about possible credit problems of the borrowers has prompted management to question the ability of the borrower to comply with the repayment terms of the loan agreement. The loan classifications do not represent or result from trends or uncertainties which management expects will materially impact future operating results, liquidity or capital resources.

At December 31, 2016, real estate construction and mortgage loans made up 20% and 74.5%, respectively, of the Company’s loan portfolio.

At December 31, 2016 and 2015, other real estate totaled $4,527,000 and $5,410,000, respectively.

25

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

III.    Loan Portfolio, Continued:

C.    Risk Elements, Continued:

There were no material amounts of other interest-bearing assets (interest-bearing deposits with other banks, municipal bonds, etc.) at December 31, 2016 which would be required to be disclosed as past due, non-accrual, restructured or potential problem loans, if such interest-bearing assets were loans.

26

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

IV. Summary of Loan Loss Experience:

The following schedule details selected information related to the allowance for loan loss account of the Company at December 31, 2016, 2015, 2014, 2013 and 2012 and the years then ended.

	In Thousands, Except Percentages
	2016			2015		2014		2013		2012
Allowance for loan losses at beginning of period	$	22,900		22,572		22,935		25,497		24,525
Charge-offs:
Commercial, financial and agricultural	(11		)	—		(37	)	(150	)	(454	)
Real estate – construction	(66		)	(26	)	(7	)	(1,470	)	(2,226	)
Real estate – mortgage	(209		)	(414	)	(1,436	)	(3,247	)	(6,066	)
Installment	(674		)	(664	)	(387	)	(380	)	(412	)
	(960		)	(1,104	)	(1,867	)	(5,247	)	(9,158	)
Recoveries:
Commercial, financial and agricultural	15			7		464		38		71
Real estate – construction	34			39		324		179		174
Real estate – mortgage	131			767		84		123		169
Installment	232			231		134		168		188
	412			1,044		1,006		508		602
Net loan charge-offs	(548		)	(60	)	(861	)	(4,739	)	(8,556	)
Provision for loan losses charged to expense	379			388		498		2,177		9,528
Allowance for loan losses at end of period	$	22,731		22,900		22,572		22,935		25,497
Total loans, net of deferred fees, at end of year	$	1,689,819		1,466,079		1,352,437		1,207,202		1,167,608
Average total loans outstanding, net of deferred fees, during year	$	1,571,528		1,418,561		1,261,131		1,205,296		1,138,525
Net charge-offs as a percentage of average total loans outstanding, net of deferred fees, during year	0.04		%	0.01		0.07		0.39		0.75
Ending allowance for loan losses as a percentage of total loans outstanding net of deferred fees, at end of year	1.35		%	1.56		1.67		1.90		2.18

27

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

IV.    Summary of Loan Loss Experience, Continued:

The allowance for loan losses is an amount that management believes will be adequate to absorb possible losses on existing loans that may become uncollectible. The provision for loan losses charged to operating expense is based on past loan loss experience and other factors which, in management’s judgment, deserve current recognition in estimating possible loan losses. Such other factors considered by management include growth and composition of the loan portfolio, review of specific problem loans, the relationship of the allowance for loan losses to outstanding loans, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral and current economic conditions that may affect the borrower’s ability to pay.

Management conducts a continuous review of all loans that are delinquent, previously charged down or which are determined to be potentially uncollectible. Loan classifications are reviewed periodically by a person independent of the lending function. The Board of Directors of the Company periodically reviews the adequacy of the allowance for loan losses.

The following detail provides a breakdown of the allocation of the allowance for loan losses:

	December 31, 2016				December 31, 2015
	In Thousands		Percent of Loans In Each Category To Total Loans		In Thousands		Percent of Loans In Each Category To Total Loans
Commercial, financial and agricultural	$	386	2.9	%	$	339	2.8	%
Real estate construction	5,387		20.0		5,136		18.7
Real estate mortgage	16,396		74.5		16,983		75.5
Installment	562		2.6		442		3.0
	$	22,731	100.0	%	$	22,900	100.0	%

	December 31, 2014				December 31, 2013
	In Thousands		Percent of Loans In Each Category To Total Loans		In Thousands		Percent of Loans In Each Category To Total Loans
Commercial, financial and agricultural	$	178	3.1	%	$	402	2.9	%
Real estate construction	5,578		18.1		5,159		16.1
Real estate mortgage	16,492		75.8		17,053		77.6
Installment	324		3.0		321		3.4
	$	22,572	100.0	%	$	22,935	100.0	%

	December 31, 2012
	In Thousands		Percent of Loans In Each Category To Total Loans
Commercial, financial and agricultural	$	397	3.0	%
Real estate construction	7,191		16.3
Real estate mortgage	17,515		77.1
Installment	394		3.6
	$	25,497	100.0	%

28

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

V. Deposits:

The average amounts and average interest rates for deposits for 2016, 2015 and 2014 are detailed in the following schedule:

	2016				2015				2014
	Average Balance In Thousands		Average Rate		Average Balance In Thousands		Average Rate		Average Balance In Thousands		Average Rate
Non-interest bearing deposits	$	210,655	—		$	178,281	—		$	146,473	—
Negotiable order of withdrawal accounts	449,053		.31	%	398,881		.38	%	349,375		.45	%
Money market demand accounts	582,408		.25	%	499,942		.29	%	439,867		.42	%
Individual retirement accounts	84,732		.85	%	89,340		.95	%	93,687		1.12	%
Other savings	117,802		.38	%	105,648		.42	%	99,753		.54	%
Certificates of deposit	426,858		1.00	%	442,702		.98	%	474,310		1.00	%
	$	1,871,508	.44	%	$	1,714,794	.50	%	$	1,603,465	.61	%

The following schedule details the maturities of certificates of deposit and individual retirement accounts of $100,000 and more at December 31, 2016:

	In Thousands
	Certificates of Deposit		Individual Retirement Accounts	Total
Less than three months	$	34,154	2,895	37,049
Three to six months	30,390		2,782	33,172
Six to twelve months	43,648		6,168	49,816
More than twelve months	118,759		23,535	142,294
	$	226,951	35,380	262,331

29

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

VI. Return on Equity and Assets:

The following schedule details selected key ratios of the Company at December 31, 2016, 2015 and 2014:

	2016		2015		2014
Return on assets (Net income divided by average total assets)	1.21	%	1.23	%	1.15	%
Return on equity (Net income divided by average equity)	10.80	%	11.17	%	10.95	%
Dividend payout ratio (Dividends declared per share divided by net income per share)	22.49	%	20.83	%	21.82	%
Equity to asset ratio (Average equity divided by average total assets)	11.18	%	11.01	%	10.50	%
Leverage capital ratio (Equity divided by fourth quarter average total assets, excluding the net unrealized gain (loss) on available-for-sale securities)	11.17	%	11.06	%	10.59	%

The minimum leverage capital ratio required by the regulatory agencies is 4%.

30

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

VI. Return on Equity and Assets, Continued:

The following schedule details the Company’s risk-based capital at December 31, 2016 excluding the net unrealized loss on available-for-sale securities which is shown as a deduction in stockholders’ equity in the consolidated financial statements:

	In Thousands
Tier I capital:
Stockholders’ equity, excluding the net unrealized loss on available-for-sale securities, intangible assets and goodwill	$	243,898
Total capital:
Allowable allowance for loan losses	23,056
Total capital	$	266,954
Risk-weighted assets	$	2,106,960
Risk-based capital ratios:
Tier I capital ratio	11.6		%
Common equity Tier 1 capital ratio	11.6		%
Total risk-based capital ratio	12.7		%

31

WILSON BANK HOLDING COMPANY

Form 10-K

December 31, 2016

VI. Return on Equity and Assets, Continued:

The Company and the Bank are required to maintain a total capital to risk-weighted asset ratio of 8.625% and a Tier I capital to risk-weighted asset ratio of 6.625% in each case pursuant to the regulations implementing the Basel III guidelines, including the capital conservation buffer. At December 31, 2016, the Company and the Bank were in compliance with these requirements.

The following schedule details the Company’s interest rate sensitivity at December 31, 2016:

	Repricing Within
(In Thousands)	Total		0-30 Days		31-90 Days		91-180 Days		181-365 Days		Over 1 Year
Earning assets:
Loans, net of deferred fees	$	1,689,819	142,462		64,357		90,835		207,555		1,184,610
Securities	349,209		25,231		762		3,477		3,793		315,946
Loans held for sale	14,788		14,788		—		—		—		—
Federal funds sold	—		—		—		—		—		—
Restricted equity securities	3,012		3,012		—		—		—		—
Total earning assets	2,056,828		185,493		65,119		94,312		211,348		1,500,556
Interest-bearing liabilities:
Negotiable order of withdrawal accounts	454,487		454,487		—		—		—		—
Money market demand accounts	628,321		628,321		—		—		—		—
Individual retirement accounts	82,798		3,050		7,794		9,308		14,444		48,202
Other savings	123,749		123,749		—		—		—		—
Certificates of deposit	425,809		19,422		49,571		61,935		80,567		214,314
Securities sold under repurchase agreements	736		736		—		—		—		—
	1,715,900		1,229,765		57,365		71,243		95,011		262,516
Interest-sensitivity gap	$	340,928	(1,044,272	)	7,754		23,069		116,337		1,238,040
Cumulative gap			(1,044,272	)	(1,036,518	)	(1,013,449	)	(897,112	)	340,928
Interest-sensitivity gap as % of total assets			(47.5	)%	0.3	%	1.1	%	5.3	%	56.3	%
Cumulative gap as % of total assets			(47.5	)%	(47.2	)%	(46.1	)%	(40.8	)%	15.5	%

The Company presently maintains a liability sensitive position over the next twelve months. However, management expects that liabilities of a demand nature will renew and that it will not be necessary to replace them with significantly higher cost funds.

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Item 1A. Risk Factors.

Investing in the Company's common stock involves various risks which are particular to the Company, its industry and its market area. Several risk factors regarding investing in the Company's common stock are discussed below. If any of the following risks were to occur, the Company may not be able to conduct its business as currently planned and its financial condition or operating results could be materially and negatively impacted. These matters could cause the trading price of the Company's common stock to decline in future periods.

The Company’s loan portfolio includes a significant amount of real estate loans, including construction and development loans, which loans have a greater credit risk than residential mortgage loans.

As of December 31, 2016, approximately 95% of the Company’s loans held for investment were secured by real estate. Of this amount, approximately 42% were commercial real estate loans, 22% were residential real estate loans, 20% were construction and development loans and 11% were other real estate loans. In total these loans make up approximately 98% of the Company’s non-performing loans at December 31, 2016. Construction and development lending is generally considered to have relatively high credit risks because the principal is concentrated in a limited number of loans with repayment dependent on the successful completion and operation of the related real estate project. Consequently, the credit quality of many of these loans deteriorated in 2008, 2009 and the first half of 2010 as a result of adverse conditions in the real estate market within the Company’s markets. While conditions have stabilized somewhat since the second half of 2010, if residential real estate prices again decline or demand weakens, that could again result in price reductions in home and land values adversely affecting the value of collateral securing the construction and development loans that the Company holds. Renewed adverse economic and real estate market conditions could lead to further increases in non-performing loans and other real estate owned, increased charge offs from the disposition of non-performing assets, increases in provision for loan losses and increases in operating expenses as a result of the allocation of management time and resources to the collection and work out of these loans, all of which would negatively impact the Company’s financial condition and results of operations.

The Company has significant credit exposure to borrowers that are homebuilders and land developers and the Company also targets small to medium-sized businesses.

At December 31, 2016, the Company had significant credit exposures to borrowers in certain businesses, including new home builders and land subdividers. Although conditions in the Company’s market have improved over the last four years, these industries continue to experience challenges as a result of the continued sluggish economy. If the economic environment in the Company’s market weakens in 2017 or beyond, these industry concentrations could result in higher than normal deterioration in credit quality, past dues, loan charge offs and collateral value declines, which could cause the Company’s earnings to be negatively impacted. Furthermore, any of the Company’s large credit exposures that deteriorate unexpectedly could cause the Company to have to make significant additional loan loss provisions, negatively impacting the Company’s earnings.

A substantial focus of the Company’s marketing and business strategy is to serve small to medium-sized businesses in its market areas. As a result, a relatively high percentage of the Company’s loan portfolio consists of commercial loans primarily to small to medium-sized businesses. The Company expects to seek to expand the amount and percentage of such loans in its portfolio in 2017. During periods of lower economic growth like those the Company experienced in recent years or recessionary environments like the Company experienced in 2007 and 2008, small to medium-sized businesses may be impacted more severely and more quickly than larger businesses. Consequently, the ability of such businesses to repay their loans may deteriorate, and in some cases this deterioration may occur quickly, which would adversely impact the Company’s results of operations and financial condition.

Fluctuations in interest rates could reduce the Company's profitability.

The absolute level of interest rates as well as changes in interest rates may affect the Company’s level of interest income, the primary component of its gross revenue, as well as the level of its interest expense. Interest rate fluctuations are caused by many factors which, for the most part, are not under the Company’s direct control. For example, national monetary policy plays a significant role in the determination of interest rates. Additionally, competitor pricing and the resulting negotiations that occur with the Company’s customers also impact the rates the Company collects on loans and the rates it pays on deposits.

As interest rates change, the Company expects that it will periodically experience “gaps” in the interest rate sensitivities of its assets and liabilities, meaning that either its interest-bearing liabilities (usually deposits and borrowings) will be more sensitive to changes in market interest rates than its interest-earning assets (usually loans and investment securities), or vice versa. In either event, if market interest rates should move contrary to the Company’s position, this “gap” may work against the Company, and its earnings may be negatively affected.

33

Changes in the level of interest rates also may negatively affect the Company’s ability to originate real estate loans, the value of its assets and its ability to realize gains from the sale of its assets, all of which ultimately affect the Company’s earnings. A decline in the market value of the Company’s assets may limit the Company’s ability to borrow additional funds. As a result, the Company could be required to sell some of its loans and investments under adverse market conditions, upon terms that are not favorable to the Company, in order to maintain its liquidity. If those sales are made at prices lower than the amortized costs of the investments, the Company will incur losses.

If the federal funds rate remains at current extremely low levels, the Company’s net interest margin, and consequently the Company’s net earnings, may be negatively impacted.

Because of significant competitive pressures in the Company’s market and the negative impact of these pressures on the Company’s deposit and loan pricing, coupled with the fact that a significant portion of the Company’s loan portfolio has variable rate pricing that moves in concert with changes to the FRB’s federal funds rate (which is at an extremely low rate as a result of current economic conditions), the Company’s net interest margin may be negatively impacted if these rates remain at their extremely low levels. Additionally, the amount of non-accrual loans and other real estate owned was elevated between 2010 and 2013and may again be elevated if economic conditions deteriorate. If levels of other real estate owned increase, the expenses to resolve these the increased levels (including maintenance costs, valuation adjustments owed on new appraisals and gains and losses on dispositions) may also increase and negatively impact the Company’s results of operations. The Company also expects loan pricing to remain competitive in 2017 and believes that economic factors affecting broader markets will likely result in reduced yields for the Company’s investment securities portfolio as prepayments continue to escalate. As a result, the Company’s net interest margin, and consequently its profitability, may continue to be negatively impacted in 2017 and beyond.

The Company is geographically concentrated in Wilson County, Tennessee and its surrounding counties and changes in local economic conditions could impact its profitability.

The Company operates primarily in Wilson, DeKalb, Smith, Rutherford, Putnam, and Sumner counties and certain of the surrounding counties and substantially all of its loan customers and most of its deposit and other customers live or have operations in this same geographic area. Accordingly, the Company’s success significantly depends upon the growth in population, income levels, and deposits in these areas, along with the continued attraction of business ventures to the area and the area’s economic stability and strength of the housing market, and its profitability is impacted by the changes in general economic conditions in this market. Economic conditions in the Company’s markets, although continuing to stabilize, remain uncertain, particularly the real estate construction and development segment of the Company’s loan portfolio. The Company cannot assure investors that economic conditions in its markets will continue to remain healthy during 2017 or thereafter, and weakened economic conditions in the Company’s markets could cause the Company to constrict its growth rate, affect the ability of its customers to repay their loans and generally affect the Company’s financial condition and results of operations.

The Company is less able than a larger institution to spread the risks of unfavorable local economic conditions across a large number of diversified economies. Moreover, the Company cannot give any assurance that it will benefit from any market growth or return of more favorable economic conditions in its primary market areas if they do occur.

The Company could sustain losses if its asset quality declines.

The Company’s earnings are significantly affected by its ability to properly originate, underwrite and service loans. The Company could sustain losses if it incorrectly assesses the creditworthiness of its borrowers or fails to detect or respond to deterioration in asset quality in a timely manner. Problems with asset quality, particularly within the commercial real estate segment of the Company’s loan portfolio, could cause the Company’s interest income and net interest margin to decrease and its provisions for loan losses and non-interest expenses to increase, which could adversely affect its results of operations and financial condition.

An inadequate allowance for loan losses would reduce the Company’s earnings.

The risk of credit losses on loans varies with, among other things, general economic conditions, the type of loan being made, the creditworthiness of the borrower over the term of the loan and, in the case of a collateralized loan, the value and marketability of the collateral for the loan. Management maintains an allowance for loan losses based upon, among other things, historical experience, an evaluation of economic conditions and regular reviews of delinquencies and loan portfolio quality. Based upon such factors, management makes various assumptions and judgments about the ultimate collectibility of the loan portfolio, provides an allowance for loan losses based upon a percentage of the outstanding balances and takes a charge against earnings with respect to specific loans when their ultimate collectibility is considered questionable. If management’s assumptions

34

and judgments prove to be incorrect and the allowance for loan losses is inadequate to absorb losses, the Bank’s earnings and capital could be significantly and adversely affected.

In addition, federal and state regulators periodically review the Company’s loan portfolio and may require it to increase its allowance for loan losses or recognize loan charge-offs. Their conclusions about the quality of the Company’s loan portfolio may be different than the Company’s. Any increase in the Company’s allowance for loan losses or loan charge offs as required by these regulatory agencies could have a negative effect on the Company’s operating results. Moreover, additions to the allowance may be necessary based on changes in economic and real estate market conditions, new information regarding existing loans or borrowers, identification of additional problem loans and other factors, both within and outside of the Company’s management’s control. These additions may require increased provision expense which would negatively impact the Company’s results of operations.

Negative developments in the U.S. and local economy may adversely impact the Company’s results in the future.

Economic conditions in the markets in which the Company operates deteriorated significantly between early 2008 and the middle of 2010. These challenges manifested themselves primarily in the form of increased levels of provisions for loan losses and other real estate expense related to declining collateral values in the Company’s real estate loan portfolio and increased costs associated with its portfolio of other real estate owned. Although economic conditions appear to have stabilized and strengthened in the Company's markets in recent years and the Company has refocused its efforts on growing its earning assets, the Company believes that it will continue to experience an uncertain economic environment in 2017. Accordingly, the Company expects that its results of operations could be negatively impacted by economic conditions, including reduced loan demand. There can be no assurance that the economic conditions that adversely affected the financial services industry, and the capital, credit and real estate markets, generally, or the Company in particular, during the most recent recession will not return, in which case the Company could experience reduced earnings or again experience significant losses and write-downs of assets, and could face capital and liquidity constraints or other business challenges.

Over the last four years the Company has sought to expand its franchise by developing new markets or expanding its operations in existing markets and may continue to do so in future years.

In 2015, the Company opened a new branch location in Putnam County, a market not previously served by the Company, and has opened an additional branch location in Rutherford County in January of 2017. Expansion, whether by opening new branches or acquiring existing branches or whole banks, involves various risks, including:

Management of Growth. The Company may be unable to successfully:

• maintain loan quality in the context of significant loan growth;

• avoid diversion or disruption of its existing operations or management as well as those of an acquired institution;

• maintain adequate management personnel and systems to oversee such growth;

• maintain adequate internal audit, loan review and compliance functions; and

• implement additional policies, procedures and operating systems required to support such growth.

Operating Results. There is no assurance that existing offices or future offices will maintain or achieve deposit levels, loan balances or other operating results necessary to avoid losses or produce profits. Execution on a growth strategy could lead to increases in overhead expenses if the Company were to add new offices and staff. The Company’s historical results may not be indicative of future results or results that may be achieved if it were to increase the number and concentration of its branch offices in its existing or new markets.

Development of Offices. There are considerable costs involved in opening branches, and new branches generally do not generate sufficient revenues to offset their costs until they have been in operation for at least a year or more. Accordingly, any new branches the Company establishes can be expected to negatively impact the Company’s earnings for some period of time until they reach certain economies of scale. The same is true for the Company’s efforts to expand in these markets with the hiring of additional seasoned professionals with significant experience in that market. The Company’s expenses could be further increased if it encounters delays in opening any of its new branches. The Company may be unable to accomplish future branch expansion plans due to a lack of available satisfactory sites, difficulties in acquiring such sites, failure to timely receive any required regulatory approvals, increased expenses or loss of potential sites due to complexities associated with zoning and permitting processes, higher than anticipated merger and acquisition costs or other factors. Finally, any branch the Company may not meet the Company’s long-term profitability expectations or otherwise be successful even after it has been established or acquired, as the case may be.

35

Regulatory and Economic Factors. Growth of banks like the Bank may be adversely affected by a number of regulatory and economic developments or other events. Failure to obtain required regulatory approvals, changes in laws and regulations or other regulatory developments and changes in prevailing economic conditions or other unanticipated events may prevent or adversely affect the Company’s growth and expansion. Such factors may cause the Company to alter its growth and expansion plans or slow or halt the growth and expansion process, which may prevent the Company from entering its expected markets or allow competitors to gain or retain market share in the Company’s existing markets.

Failure to successfully address these and other issues related to the Company's expansion could have a material adverse effect on its financial condition and results of operations, and could adversely affect its ability to successfully implement its business strategy.

Changes that became effective on January 1, 2015 to capital requirements for bank holding companies and depository institutions may negatively impact the Company’s and the Bank’s results of operations.

In July 2013, the FRB and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules, which became effective on January 1, 2015, implement the Basel III regulatory capital reforms and changes required by the Dodd-Frank Act.

Various provisions of the Dodd-Frank Act increase the capital requirements of bank holding companies. The leverage and risk-based capital ratios of these entities may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules implementing the Basel III regulatory capital reforms include new minimum risk-based capital and leverage ratios. These rules also refine the definition of what constitutes “capital” for purposes of calculating those ratios. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% ; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a “capital conservation buffer” of 2.5% (to be phased in over three years) above the new regulatory minimum capital ratios, and result in the following minimum ratios when fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7.0%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. The phase in of the capital conservation buffer began in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if its capital levels fall below the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions.

The application of more stringent capital requirements for the Company and the Bank, like those implementing the Basel III reforms (particularly the new common equity Tier 1 capital ratio), could, among other things, result in lower returns on invested capital, require the raising of additional capital, and result in regulatory actions if the Company or the Bank were to be unable to comply with such requirements. Furthermore, the imposition of liquidity requirements in connection with the implementation of the final rules regarding Basel III could result in the Company or the Bank having to lengthen the term of their funding, restructure their business models and/or increase their holdings of liquid assets. Implementation of changes to asset risk weightings for risk-based capital calculations, items included or deducted in calculating regulatory capital and/or additional capital conservation buffers could result in management modifying its business strategy and could limit the Company’s and the Bank’s ability to make distributions, including paying dividends or buying back shares.

The Company is dependent on its information technology and telecommunications systems and third-party servicers, and systems failures, interruptions or breaches of security could have an adverse effect on its financial condition and results of operations.

The Company’s operations rely on the secure processing, storage and transmission of confidential and other information in its computer systems and networks. Although the Company takes protective measures and endeavors to modify these systems as circumstances warrant, the security of its computer systems, software and networks may be vulnerable to breaches, unauthorized access, misuse, computer viruses or other malicious code and other events that could have a security impact. The Company outsources many of its major systems, such as data processing, loan servicing and deposit processing systems. The failure of these systems, or the termination of a third-party software license or service agreement on which any of these systems is based, could interrupt the Company’s operations. Because the Company’s information technology and telecommunications systems interface with and depend on third-party systems, the Company could experience service denials if demand for such services exceeds capacity or such third-party systems fail or experience interruptions. If sustained or repeated, a system failure or service denial could result in a deterioration of the Company’s ability to process new and renewal loans, gather deposits and provide customer service, compromise its ability to operate effectively, damage its reputation, result in a loss of customer business and/or subject it to additional regulatory scrutiny and possible financial liability, any of which could have a material adverse effect on the Company’s financial condition and results of operations.

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In addition, the Company provides its customers the ability to bank remotely, including over the internet. The secure transmission of confidential information is a critical element of remote banking. The Company’s network could be vulnerable to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches. The Company may be required to spend significant capital and other resources to protect against the threat of security breaches and computer viruses, or to alleviate problems caused by security breaches or viruses. To the extent that the Company’s activities or the activities of its customers involve the storage and transmission of confidential information, security breaches and viruses could expose the Company to claims, litigation and other possible liabilities. Any inability to prevent security breaches or computer viruses could also cause existing customers to lose confidence in the Company’s systems and could adversely affect the Company’s reputation, results of operations and ability to attract and maintain customers and businesses. In addition, a security breach could also subject the Company to additional regulatory scrutiny, expose it to civil litigation and possible financial liability and cause reputational damage.

Environmental liability associated with commercial lending could result in losses.

In the course of business, the Bank may acquire, through foreclosure, properties securing loans it has originated or purchased which are in default. Particularly in commercial real estate lending, there is a risk that hazardous substances could be discovered on these properties. In this event, the Company, or the Bank, might be required to remove these substances from the affected properties at the Company’s sole cost and expense. The cost of this removal could substantially exceed the value of affected properties. The Company and the Bank may not have adequate remedies against the prior owner or other responsible parties and could find it difficult or impossible to sell the affected properties. These events could have a material adverse effect on the Company’s business, results of operations and financial condition.

Liquidity needs could adversely affect the Company’s results of operations and financial condition.

The Company relies on dividends from the Bank as its primary source of funds. The primary source of funds of the Bank are customer deposits and loan repayments. While scheduled loan repayments are a relatively stable source of funds, they are subject to the ability of borrowers to repay the loans. The ability of borrowers to repay loans can be adversely affected by a number of factors, including changes in economic conditions, adverse trends or events affecting business industry groups, reductions in real estate values or markets, business closings or lay-offs, inclement weather, natural disasters and international instability. Additionally, deposit levels may be affected by a number of factors, including rates paid by competitors, general interest rate levels, deposit customers’ views on the Bank’s financial strength, returns available to customers on alternative investments and general economic conditions. Accordingly, the Company may be required from time to time to rely on secondary sources of liquidity to meet withdrawal demands or otherwise fund operations. Such sources include Federal Home Loan Bank (“FHLB”) advances and federal funds lines of credit from correspondent banks and the Federal Reserve Bank of Atlanta. While the Company believes that these sources are currently adequate, there can be no assurance they will be sufficient to meet future liquidity demands.

Competition from financial institutions and other financial service providers may adversely affect the Company’s profitability.

The banking business is highly competitive and the Company experiences competition in each of its markets from many other financial institutions. The Company competes with commercial banks, credit unions, savings and loan associations, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds, and other mutual funds, as well as other community banks and super-regional and national financial institutions that operate offices in the Company’s primary market areas and elsewhere. Many of the Company’s competitors are well-established, larger financial institutions that have greater resources and lending limits and a lower cost of funds than the Company has.

Additionally, the Company faces competition from similarly sized and smaller community banks, including those with senior management who were previously affiliated with other local or regional banks or those controlled by investor groups with strong local business and community ties. These community banks may offer higher deposit rates or lower cost loans in an effort to attract the Company’s customers, and may attempt to hire the Company’s management and employees.

The Company competes with these other financial institutions both in attracting deposits and in making loans. In addition, the Company has to attract its customer base from other existing financial institutions and from new residents. This competition at times has made it more difficult for the Company to make new loans and at times has forced the Company to offer higher deposit rates. Price competition for loans and deposits might result in the Company earning less interest on its loans and paying more interest on its deposits, which reduces the Company’s net interest income. The Company’s profitability depends upon its continued ability to successfully compete with an array of financial institutions in its market areas.

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The Company’s key management personnel may leave at any time.

The Company’s future success depends to a significant extent on the continued service of its key management personnel, especially Randall Clemons, its president and chief executive officer, and Elmer Richerson, the president of the Bank. While the Company does not have employment agreements with any of its personnel and can provide no assurance that it will be able to retain any of its key officers and employees or attract and retain qualified personnel in the future, it has entered into non-competition agreements with such persons which would prevent them in most circumstances, from competing with the Bank for one year following their termination. In addition, these persons are parties to certain deferred compensation, supplemental retirement and equity incentive plans, the benefits of which would cease to accrue upon the termination of the person’s employment with the Company or the Bank.

The Company has previously announced that Mr. Richerson will retire at the end of 2017 and that Mr. Clemons intends to retire at the end of 2019. Each of these individuals has been a large part of our success and our ability to continue to grow our loan portfolio and deliver returns for our shareholders will depend on the ability of these individuals’ successors to manage the transition smoothly and operate the Bank in a profitable manner.

The Company, as well as the Bank, operate in an increasingly highly regulated environment and are supervised and examined by various federal and state regulatory agencies who may adversely affect the Company’s ability to conduct business.

The TDFI and the FRB supervise and examine the Bank and the Company, respectively. Because the Bank’s deposits are federally insured, the FDIC also regulates its activities. These and other regulatory agencies impose certain regulations and restrictions on the Bank, including:

• explicit standards as to capital and financial condition;

• limitations on the permissible types, amounts and extensions of credit and investments;

• restrictions on permissible non-banking activities; and

• restrictions on dividend payments.

Federal and state regulatory agencies have extensive discretion and power to prevent or remedy unsafe or unsound practices or violations of law by banks and bank holding companies. As a result, the Company must expend significant time and expense to assure that it is in compliance with regulatory requirements and agency practices.

The Company, as well as the Bank, also undergoes periodic examinations by one or more regulatory agencies. Following such examinations, the Company or the Bank may be required, among other things, to make additional provisions to its allowance for loan loss or to restrict its operations. These actions would result from the regulators’ judgments based on information available to them at the time of their examination. The Bank’s operations are also governed by a wide variety of state and federal consumer protection laws and regulations. These federal and state regulatory restrictions limit the manner in which the Company and the Bank may conduct business and obtain financing. These laws and regulations can and do change significantly from time to time, and any such changes could adversely affect the Company’s results of operations.

Federal or state legislation or regulation may increase the Company’s expenses and reduce earnings.

Federal bank regulators are increasing regulatory scrutiny, and additional restrictions (including those originating from the Dodd-Frank Act) on financial institutions have been proposed or adopted by regulators and by Congress. Changes in tax law, federal legislation, regulation or policies, such as bankruptcy laws, deposit insurance, consumer protection laws, and capital requirements, among others, can result in significant increases in the Company’sexpenses and/or charge-offs, which may adversely affect its earnings. Changes in state or federal tax laws or regulations can have a similar impact. State and municipal governments, including the State of Tennessee, could seek to increase their tax revenues through increased tax levies which could have a meaningful impact on the Company’s results of operations. Furthermore, financial institution regulatory agencies may continue to be aggressive in responding to concerns and trends identified in examinations, including the continued issuance of additional formal or informal enforcement or supervisory actions. These actions, whether formal or informal, could result in the Company’sor the Bank’s agreeing to limitations or monetary penalties or to take actions that limit its operational flexibility, restrict its growth or increase its capital or liquidity levels, any of which could materially and adversely affect the Company’s results of operations. Failure to comply with any formal or informal regulatory restrictions, including informal supervisory actions, could lead to further regulatory enforcement actions. Negative developments in the financial services industry and the impact of recently enacted or new legislation in response to those developments could negatively impact the Company’s operations by restricting its business operations, including its ability to originate or sell loans, and adversely impact its financial performance.

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In addition, industry, legislative or regulatory developments may cause the Company to materially change its existing strategic direction, capital strategies, compensation or operating plans.

Implementation of the various provisions of the Dodd-Frank Act has resulted in increases in the Company’s operating costs and may continue to cause additional increases, and implementation of those provisions of the Dodd-Frank Act that are not yet implemented could have a material effect on the Company’s business, financial condition or results of operations.

On July 21, 2010, then President Obama signed the Dodd-Frank Act. This landmark legislation includes, among other things, (i) the creation of a Financial Services Oversight Counsel to identify emerging systemic risks and improve interagency cooperation; (ii) the elimination of the Office of Thrift Supervision and the transfer of oversight of federally chartered thrift institutions and their holding companies to the Office of the Comptroller of the Currency and the Federal Reserve; (iii) the creation of a Consumer Financial Protection Agency authorized to promulgate and enforce consumer protection regulations relating to financial products that would affect banks and non-bank finance companies; (iv) the establishment of new capital and prudential standards for banks and bank holding companies; (v) the termination of investments by the U.S. Treasury under the U.S. Treasury’s Troubled Asset Relief Program; (vi) enhanced regulation of financial markets, including the derivatives, securitization and mortgage origination markets; (vii) the elimination of certain proprietary trading and private equity investment activities by banks; (viii) the elimination of barriers to de novo interstate branching by banks; (ix) a permanent increase of the previously implemented temporary increase of FDIC deposit insurance to $250,000; (x) the authorization of interest-bearing transaction accounts; and (xi) changes in how the FDIC deposit insurance assessments will be calculated and an increase in the minimum designated reserve ratio for the Deposit Insurance Fund.

Certain provisions of the legislation are not immediately effective or are subject to required studies and implementing regulations. Further, community banks with less than $10 billion in assets (like the Bank) are exempt from certain provisions of the legislation. Although a number of regulations implementing portions of the Dodd-Frank Act have been promulgated, the Company is still unable to predict how the remaining portions of this legislation may be interpreted and enforced or how implementing regulations and supervisory policies may affect it. There can be no assurance that these or future reforms will not significantly increase the Company’s compliance or operating costs or otherwise have a significant impact on the Company’s business, financial condition and results of operations. Finally, President Donald Trump and the Congressional majority have indicated that the Dodd-Frank Act will be under further scrutiny and some of the provisions of the Dodd-Frank Act rules promulgated thereunder may be revised, repealed or amended.

The Company’s asset valuation may include methodologies, estimations and assumptions which are subject to differing interpretations and could result in changes to asset valuations that may materially adversely affect its results of operations or financial condition.

The Company uses estimates, assumptions, and judgments when financial assets and liabilities are measured and reported at fair value. Assets and liabilities carried at fair value inherently result in a higher degree of financial statement volatility. Fair values and the information used to record valuation adjustments for certain assets and liabilities are based on quoted market prices and/or other observable inputs provided by independent third-party sources, when available. When such third-party information is not available, fair value is estimated primarily by using cash flow and other financial modeling techniques utilizing assumptions such as credit quality, liquidity, interest rates and other relevant inputs. Changes in underlying factors, assumptions, or estimates in any of these areas could materially impact the Company’s future financial condition and results of operations.

During periods of market disruption, including periods of significantly rising or high interest rates, rapidly widening credit spreads or illiquidity, it may be difficult to value certain assets if trading becomes less frequent and/or market data becomes less observable. There may be certain asset classes that were in active markets with significant observable data that become illiquid due to the current financial environment. In such cases, certain asset valuations may require more subjectivity and management judgment. As such, valuations may include inputs and assumptions that are less observable or require greater estimation. Further, rapidly changing and unprecedented credit and equity market conditions could materially impact the valuation of assets as reported within the Company’s consolidated financial statements and the period-to-period changes in value could vary significantly. Decreases in value may have a material adverse effect on results of operations or financial condition.

Valuation methodologies which are particularly susceptible to the conditions mentioned above include those used to value certain securities in the Company’s available for sale investment portfolio such as auction rate securities and non-agency mortgage and asset-backed securities, in addition to non-marketable private equity securities, loans held for sale and intangible assets.

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The Company’s common stock is thinly traded, and recent prices may not reflect the prices at which the stock would trade in an active trading market.

The Company’s common stock is not traded through an organized exchange, but rather is traded in individually-arranged transactions between buyers and sellers. Therefore, recent prices at which the stock has traded may not necessarily reflect the actual value of the Company’s common stock. A shareholder’s ability to sell the shares of Company common stock in a timely manner may be substantially limited by the lack of a trading market for the common stock.

An investment in the Company’s common stock is not an insured deposit.

The Company’s common stock is not a bank deposit and, therefore, is not insured against loss by the FDIC, any other deposit insurance fund or by any other public or private entity. Investment in the Company’s common stock is inherently risky for the reasons described in this “Risk Factors” section and elsewhere in this report and is subject to the equity market forces like other common stock. As a result, if you acquire the Company’s stock, you could lose some or all of your investment.

Item 1B. Unresolved Staff Comments.

None.

Item 2. Properties

The Company’s main office is owned by the Company and consists of approximately four acres at 623 West Main Street, Lebanon, Tennessee. The building is a two story, brick building, with approximately 35,000 square feet. The lot has approximately 350 feet of road frontage on West Main Street. In addition thereto, the Bank has twenty-fivebranch locations located at the following locations: 1436 West Main Street, Lebanon, Tennessee; 1444 Baddour Parkway, Lebanon, Tennessee; 200 Tennessee Boulevard, Lebanon, Tennessee; 8875 Stewart’s Ferry Pike, Gladeville, Tennessee; 402 Public Square, Watertown, Tennessee; 1476 North Mt. Juliet Road, Mt. Juliet, Tennessee; 11835 Highway 70, Mount Juliet, Tennessee; 1130 Castle Heights Avenue North, Lebanon, Tennessee; 127 McMurry Blvd., Hartsville, Tennessee; the Wal-Mart Supercenter, Lebanon, Tennessee; 440 Highway 109 North, Lebanon, Tennessee; 4736 Andrew Jackson Parkway in Hermitage, Tennessee; 3110 Memorial Blvd in Murfreesboro, Tennessee; 210 Commerce Drive in Smyrna, Tennessee; 2640 South Church Street, Murfreesboro, Tennessee; 217 Donelson Pike, Nashville, Tennessee; 710 NW Broad in Murfreesboro, Tennessee; 4195 Franklin Road, Murfreesboro, Tennessee; 576 West Broad Street in Smithville, Tennessee; 306 Brush Creek Road in Alexandria, Tennessee; 1300 Main Street North in Carthage, Tennessee; 7 New Middleton Highway in Gordonsville, Tennessee; 709 South Mt. Juliet Road, Mt. Juliet, Tennessee; 455 West Main Street, Gallatin, Tennessee; 175 East Main Street, Hendersonville, Tennessee; 320 South Jefferson Avenue, Cookeville, Tennessee; a Loan Production Office at 393 Maple Street Suite 100-A in Gallatin, Tennessee and a Loan Production Office at 161 Harold court in Franklin, Tennessee.

The Mt. Juliet office contains approximately 16,000 square feet of space; the Castle Heights Office contains 2,400 square feet of space; the Hartsville Office contains 8,000 square feet of space; the Leeville-109 branch contains approximately 4,000 square feet. The Hermitage branch opened in the fall of 1999 and contains 8,000 square feet of space. The Gladeville branch contains approximately 3,400 square feet of space. The Lebanon facility at Tennessee Boulevard was expanded in 1997 to 2,200 square feet of space. The Mt. Juliet facility on Highway 70 was completed in July 2004 and contains approximately 3,450 square feet of space and the Providence facility which was opened in 2011 contains approximately 4,450 square feet of space. The NorthWest Broad Street facility was relocated from a leased office to an office owned by the Bank in 2011 and contains approximately 6,300 square feet of space. The Smyrna office opened in September of 2006 and contains approximately 3,600 square feet of space. The Memorial Blvd office in Murfreesboro opened in October of 2006 and contains approximately 7,800 square feet of space. The Highway 96 office in Murfreesboro opened in January 2017 and contains approximately 4,700 square feet of space. Also, the South Church Street office in Murfreesboro opened in January 2008 and contains approximately 7,800 square feet of space. Each of the branch facilities of the Bank not otherwise described above contains approximately 1,000 square feet of space.

The Bank also has a facility at 576 West Broad Street in Smithville, Tennessee which was expanded in 2001 and now contains approximately 10,300 square feet of space and a facility at 306 Brush Creek Road in Alexandria, Tennessee which occupies approximately 2,400 square feet of space. The Bank owns both facilities. The Bank also owns a building at 1300 Main Street North, Carthage, Tennessee, which was expanded in 2005 and now contains approximately 11,000 square feet and a second facility in Gordonsville, Tennessee at 7 New Middleton Highway, Gordonsville, Tennessee. The Bank owns a building at 455 West Main Street in Gallatin, Tennessee which occupies approximately 4,800 square feet of space and a building at 175 East Main Street in Hendersonville, Tennessee which occupies approximately 6,300 square feet of space. The Bank owns a

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building at 217 Donelson Pike, Donelson, Tennessee which occupies approximately 8,000 square feet of space and a building at 320 South Jefferson Avenue, Cookeville, Tennessee, which occupies approximately 6,300 square feet of space. The Bank owns all of its branch facilities except for the Lebanon facility at Tennessee Boulevard, its space in the Wal-Mart Supercenter, and its Loan Production office in Gallatin. The Bank also leases space at seven locations within Wilson County, DeKalb County, Rutherford County, DavidsonCounty, Smith County and Cannon County where it maintains and operates automatic teller machines.

In the fourth quarter of 2016, the Bank commenced construction on a 67,000 square foot operations center on property that it owns which is adjacent to its main office location on West Main Street in Lebanon, Tennessee. The building will house operations and technology staff and the Company believes it will improve the Bank's efficiency.

Item 3. Legal Proceedings

As of the date hereof, there are no material pending legal proceedings to which the Company or any of its subsidiaries is a party or of which any of its properties are subject; nor are there material proceedings known to the Company or its subsidiaries to be contemplated by any governmental authority; nor are there material proceedings known to the Company or its subsidiaries, pending or contemplated, in which any director, officer or affiliate or any principal security holder of the Company or any of its subsidiaries or any associate of any of the foregoing, is a party or has an interest adverse to the Company or any of its subsidiaries.

Item 4. Mine Safety Disclosures

Not Applicable.

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PART II

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchasers of Equity Securities

Information required by this item is contained under the heading “Holding Company & Stock Information” on page 98 of the Company’s 2016Annual Report and is incorporated herein by reference.

The Company did not repurchase any shares of its common stock during the quarter ended December 31, 2016.

Item 6. Selected Financial Data

Information required by this item is contained under the heading “Wilson Bank Holding Company Financial Highlights (Unaudited)” on page 17 of the Company’s 2016Annual Report and is incorporated herein by reference.

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Information required by this item is contained under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as set forth on pages 18 through 44 of the Company’s 2016Annual Report and is incorporated herein by reference.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Information required by this item is contained under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Quantitative and Qualitative Disclosures About Market Risk” as set forth on pages 38-39 of the Company’s 2016Annual Report and is incorporated herein by reference.

Item 8. Financial Statements and Supplementary Data

The consolidated financial statements and the independent auditor’s report of Maggart & Associates, P.C. required by this item are contained in pages 46 through 97 of the Company’s 2016 Annual Report and are incorporated herein by reference.

Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the “Exchange Act”), that are designed to ensure that information required to be disclosed by it in the reports that if files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. The Company carried out an evaluation, under the supervision and with the participation of its management, including its Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures as of the end of the period covered by this report. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective.

Management Report on Internal Control Over Financial Reporting

Management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control system was designed to provide reasonable assurance to the Company’s management and board of directors regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

The Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2016. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013).

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Based on that assessment, management concluded that, as of December 31, 2016, the Company’s internal control over financial reporting was effective based on those criteria.

The Company’s independent registered public accounting firm has issued an attestation report on the Company’s internal control over financial reporting, which report is contained on page 45 of Wilson Bank Holding Company’s 2016 Annual Report and is incorporated herein by reference.

Changes in Internal Controls

No changes were made to the Company’s internal control over financial reporting during the quarter ended December 31, 2016 that have materially affected, or that are reasonably likely to materially affect, the Company’s internal control over financial reporting

Item 9B. Other Information

None.

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PART III

Item 10.Directors, Executive Officers and Corporate Governance

The information required by this item with respect to directors is incorporated herein by reference to the sections entitled “Item-1 Election of Directors-Information Concerning Nominees” and “Item-1 Election of Directors-Director Qualifications” in the Company’s definitive proxy materials filed in connection with the Company’s 2017 Annual Meeting of Shareholders (the "2017 Annual Meeting of Shareholder"). The information required by this item with respect to executive officers is set forth below:

James Randall Clemons (64) - Mr. Clemons is President and Chief Executive Officer of the Company and the Chief Executive Officer of the Bank. Mr. Clemons also serves on the Board of Directors of the Company and the Bank. He has held such positions with the Company since its formation in March 1992 and has held his Bank positions since the Bank commenced operations in May 1987. Prior to that time, Mr. Clemons served as Senior Vice President and Cashier for Peoples Bank, Lebanon, Tennessee.

Elmer Richerson (64) - Mr. Richerson joined the Bank in February 1989. Prior to such time, Mr. Richerson was the manager of the Lebanon branch of Heritage Federal Savings and Loan Association from March 1988 to February 1989. From September 1986 until March 1988, Mr. Richerson was a liquidation assistant for the Federal Deposit Insurance Corporation. Since May 2002, Mr. Richerson has served as President of the Bank. From 1997 to May 2002, Mr. Richerson served as an Executive Vice President and Senior Loan Officer of the Bank and oversaw the branch administration for the Bank. Mr. Richerson also serves on the Board of Directors of the Bank and in 1998 was elected to serve on the Board of Directors of the Company as well.

Gary Whitaker (59) - Mr. Whitaker joined the Bank in May 1996. Prior to that time Mr. Whitaker was employed with NationsBank of Tennessee, N.A. in Nashville (and its predecessors) from 1979. He has held positions in collections, as branch manager, in construction lending, retail marketing, automobile lending, loan administration, operations analyst, as Vice President, Senior Vice President and most recently as Executive Vice President since 2002. His principal duties include overseeing the Bank’s lending function and loan operations.

Lisa Pominski (52) - Ms. Pominski is Executive Vice President and the Chief Financial Officer of the Bank and the Company and is the Company’s principal financial and accounting officer. Ms. Pominski has held several positions with the Bank including Asst. Cashier, Asst. Vice President and Senior Vice President since the Bank’s formation in May of 1987. Prior to 1987 Ms. Pominski was employed by People’s Bank, Lebanon, TN.

John McDearman (48) - Mr. McDearman joined the Bank in November of 1998. He has held positions in branch administration and commercial lending. From November 2002 to January 2009, he held the position of Senior Vice President-Central Division of the Bank. Currently he serves as Executive Vice President, a position he has held since January 2009. Prior to joining the Bank in 1998 he was Assistant Vice President, Banking Center Manager for NationsBank, Chattanooga, TN, a position he held from 1994 to 1998. His primary duties include working alongside the President and Chief Executive Officer in providing the overall direction and administration of programs, products, and services provided by the Bank.

Clark Oakley (47) - Mr. Oakley joined the Bank in October of 1995. He has held positions in mortgage origination and branch administration. From 2008 to 2016 he held the position of Senior Vice President- Eastern Division of the Bank. Currently he serves as Executive Vice President and Chief Operations Officer. Prior to 1995 Mr. Oakley was employed at Union Planters Bank in Alexandria, TN. His primary duties include overseeing bank operations including information technology and electronic banking.

All officers serve at the pleasure of the Board of Directors. No officers are involved in any legal proceedings which are material to an evaluation of their ability and integrity.

The Company has adopted a code of conduct for its senior executive and financial officers (the “Code of Conduct”), a copy of which will be provided to any person, without charge, upon request to the Company at 623 West Main Street, Lebanon, Tennessee 37087, Attention: Corporate Secretary. The Company will make any legally required disclosures regarding amendments to, or waivers of, provisions of its Code of Conduct either in a Current Report on Form 8-K or on its website, in each case in accordance with the rules and regulations of the SEC.

The information required by this item with respect to the Company’s audit committee and any “audit committee financial expert” is incorporated herein by reference to the section entitled “Item-1 Election of Directors - Description of the Board and Committees of the Board” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

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The information required by this item with respect to compliance with Section 16(a) of the Exchange Act is incorporated herein by reference to the Section entitled “Item-1 Election of Directors - Compliance with Section 16(a) of the Securities Exchange Act of 1934” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

Item 11. Executive Compensation

Information required by this item is incorporated herein by reference to the sections entitled “Executive Compensation” and “Personnel Committee Interlocks and Insider Participation” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Information required by this item is incorporated herein by reference to the section entitled “Stock Ownership” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

The following table summarizes information concerning the Company’s equity compensation plans at December 31, 2016 and has been adjusted to reflect the Company’s two-for-one stock split in the form of a 100% stock dividend paid on October 30, 2003, a four-for-three stock split in the form of a stock dividend paid on May 31, 2007 and a four-for-three stock split in the form of a stock dividend paid on March 31, 2016:

Plan Category	Number of securities to be issued upon exercise of outstanding options, warrants and rights	Weighted-average exercise price of outstanding options, warrants and rights	Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in first column)
Equity compensation plans approved by shareholders	183,847	$ 38.08	660,603
Equity compensation plans not approved by shareholders	—	—	—
Total	183,847	$ 38.08	660,603

Item 13. Certain Relationships and Related Transactions, and Director Independence

Information required by this item with respect to certain relationships and related transactions is incorporated herein by reference to the section entitled “Certain Relationships and Related Transactions” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

Information required by this item with respect to director independence is incorporated herein by reference to the section entitled “Item-1 Election of Directors - Director Independence” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

Item 14. Principal Accountant Fees and Services

Information required by this item is incorporated herein by reference to the section entitled “Item-2 Ratification of the Appointment of the Independent Registered Public Accounting Firm” in the Company’s definitive proxy materials filed in connection with the 2017 Annual Meeting of Shareholders.

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Item 15. Exhibits, Financial Statement Schedules

(a)(1)    Financial Statements. See Item 8.

(a)(2)    Financial Statement Schedules. Not Applicable.

(a)(3)    Exhibits. See Index to Exhibits.

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Item 16. Form 10K Summary

None

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WILSON BANK HOLDING COMPANY
By:	/s/ J. Randall Clemons
	Name: J. Randall Clemons
	Title: President and Chief Executive Officer
Date:	March 10, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ J. Randall Clemons
J. Randall Clemons	President, Chief Executive Officer and Director (Principal Executive Officer)	March 10, 2017
/s/ Lisa Pominski
Lisa Pominski	Chief Financial Officer (Principal Financial and Accounting Officer)	March 10, 2017
/s/ Elmer Richerson H. Elmer Richerson	Executive Vice President & Director	March 10, 2017
/s/ Charles Bell Charles Bell	Director	March 10, 2017
/s/ Jack W. Bell Jack W. Bell	Director	March 10, 2017
/s/ James F. Comer James F. Comer	Director	March 10, 2017
/s/ Jerry L. Franklin Jerry L. Franklin	Director	March 10, 2017

/s/ John B. Freeman John B. Freeman	Director	March 10, 2017
/s/ William P. Jordan William P. Jordan	Director	March 10, 2017
/s/ James Anthony Patton James Anthony Patton	Director	March 10, 2017

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INDEX TO EXHIBITS

2.1	Agreement and Plan of Merger dated November 16, 2004, among Wilson Bank Holding Company, Wilson Bank and Trust and DeKalb Community Bank. (Pursuant to Item 601(b)(2) of Regulation S-K, the Schedules to this agreement are omitted, but will be provided supplementally to the Securities and Exchange Commission upon request.) (incorporated herein by reference to Exhibit 2.1 of the Company’s Registration Statement on Form S-4 (Registration No. 333-121943)).
2.2	Agreement and Plan of Merger dated November 16, 2004, among Wilson Bank Holding Company, Wilson Bank and Trust and Community Bank of Smith County. (Pursuant to Item 601(b)(2) of Regulation S-K, the schedules to this agreement are omitted, but will be provided supplementally to the Securities and Exchange Commission upon request.) (incorporated herein by reference to Exhibit 2.1 of the Company’s Registration Statement on Form S-4 (Registration No. 333-122534)).
3.1	Charter of Wilson Bank Holding Company, as amended (restated for SEC electronic filling purposes only) (incorporated herein by reference to Exhibit 3.1 of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2016 filed with the SEC on August 9, 2016).
3.2	Bylaws of Wilson Bank Holding Company, as amended (restated for SEC electronic filling purposes only) (incorporated herein by reference to Exhibit 3.2 of the Company’s Quarterly Report on form 10-Q for the quarter ended March 31, 2016 filed with the SEC on May 10, 2016).
4.1	Specimen Common Stock Certificate. (incorporated herein by reference to Exhibit 4.1 of the Company’s Registration Statement on Form S-4 (Registration No. 333-121943)).
10.1	Wilson Bank Holding Company 1999 Stock Option Plan (incorporated herein by reference to Exhibit 4 of the Company’s Registration Statement on Form S-8 (Registration No. 333-32442)).*
10.2	Wilson Bank Holding Company 2009 Stock Option Plan (incorporated herein by reference to Exhibit 4.3 of the Company’s Registration Statement on Form S-8 (Registration No. 333-158621)).*
10.3	Form of Wilson Bank Holding Company Incentive Stock Option Agreement (incorporated herein by reference to Exhibit 10.7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2005 (File No. 000-20402)).*
10.4	Amendment, dated December 30, 2008, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.5	Amendment, dated December 30, 2008, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.6	Amendment, dated December 30, 2008, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.3 the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.7	Amendment, dated December 30, 2008, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*

49

10.8	Amendment, dated December 30, 2008, to Executive Salary Continuation Agreement dated as of January 1, 2006, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.9	Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.10	Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.11	Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.9 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.12	Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.11 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.13	Executive Salary Continuation Agreement dated as of July 28, 2006, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.12 of the Company’s Current Report on Form 8-K filed with the SEC on January 6, 2009 (File No. 000-20402)).*
10.14	Amendment, dated November 23, 2012, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.15	Amendment, dated November 23, 2012, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.16	Amendment, dated November 23, 2012, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.17	Amendment, dated November 23, 2012, to Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.18	Amendment, dated November 23, 2012, to Executive Salary Continuation Agreement dated as of January 1, 2006, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.19	Second Amendment, dated November 23, 2012 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002 by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*

50

10.20	Second Amendment, dated November 23, 2012 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002 by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.21	Second Amendment, dated November 23, 2012 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002 by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.22	Second Amendment, dated November 23, 2012 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002 by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.9 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.23	Amendment, dated November 23, 2012 to Wilson Bank and Trust Life Insurance Endorsement Method Split Dollar Plan Agreement dated as of July 28, 2006 by and between Wilson Bank and John C. McDearman III (incorporated by reference to Exhibit 10.10 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.24	Supplemental Executive Retirement Plan Agreement, dated November 23, 2012, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.11 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.25	Supplemental Executive Retirement Plan Agreement, dated November 23, 2012, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.12 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.26	Supplemental Executive Retirement Plan Agreement, dated November 23, 2012, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.13 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.27	Supplemental Executive Retirement Plan Agreement, dated November 23, 2012, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.14 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.28	Supplemental Executive Retirement Plan Agreement, dated November 23, 2012, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.15 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.29	Amendment, dated August 21, 2003 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.16 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.30	Amendment, dated August 21, 2003 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.17 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.31	Amendment, dated August 21, 2003 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.13 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*

51

10.32	Amendment, dated August 21, 2003 to Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.19 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.33	Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.20 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.34	Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.21 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.35	Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.22 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.36	Wilson Bank and Trust Amended and Restated Life Insurance Endorsement Method Split Dollar Plan Agreement dated October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.23 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.37	Wilson Bank and Trust Life Insurance Endorsement Method Split Dollar Plan Agreement dated July 28, 2006, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.24 of the Company’s Current Report on Form 8-K filed with the SEC on November 29, 2012).*
10.38	Executive Survivor Income Agreement, dated April 14, 2014, by and between the Bank and Lisa Pominski (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.39	Executive Survivor Income Agreement, dated April 14, 2014, by and between the Bank and Gary Whitaker (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.40	Executive Survivor Income Agreement, dated April 14, 2014, by and between the Bank and John C. McDearman, III (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.41	Director Survivor Income Agreement, dated April 14, 2014, by and between the Bank and J. Randall Clemons (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.42	Director Survivor Income Agreement, dated April 14, 2014, by and between the Bank and H. Elmer Richerson (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.43	Director Survivor Income Agreement, dated April 14, 2014, by and between the Bank and Jack Bell (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).

10.44 Director Survivor Income Agreement, dated April 14, 2014, by and between the Bank and James Comer (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).

52

10.45	Director Survivor Income Agreement, dated April 14, 2014, by and between the Bank and James Patton (incorporated by reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K filed with the SEC on April 18, 2014).
10.46	Director Survivor Income Agreement, dated April 6, 2015, by and between the Bank and William Jordan (incorporated by reference to Exhibit 10.46 of the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on March 14, 2016).
10.47	Supplemental Executive Retirement Plan Agreement, dated May 22, 2015, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2015).*
10.48	Supplemental Executive Retirement Plan Agreement, dated May 22, 2015, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2015).*
10.49	Supplemental Executive Retirement Plan Agreement, dated May 22, 2015, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2015).*
10.50	Supplemental Executive Retirement Plan Agreement, dated May 22, 2015, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2015).*
10.51	Supplemental Executive Retirement Plan Agreement, dated May 22, 2015, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the SEC on May 29, 2015).*
10.52	Second Amendment to the Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and J. Randall Clemons (incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.53	Second Amendment to the Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Elmer Richerson (incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.54	Second Amendment to the Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Lisa T. Pominski (incorporated by reference to Exhibit 10.3 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.55	Second Amendment to the Amended and Restated Executive Salary Continuation Agreement dated as of October 7, 2002, by and between Wilson Bank and Trust and Gary Whitaker (incorporated by reference to Exhibit 10.4 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.56	Second Amendment to the Executive Salary Continuation Agreement dated as of January 1, 2006, by and between Wilson Bank and Trust and John C. McDearman III (incorporated by reference to Exhibit 10.5 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.57	Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.6 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.58	Form of Stock Appreciation Rights Agreement for employees under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.7 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*

53

10.59	Form of Non-qualified Stock Option Agreement for employees under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.8 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.60	Form of Stock Appreciation Rights Agreement for employee directors under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.9 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.61	Form of Non-qualified Stock Option Agreement for employee directors under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.10 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.62	Form of Stock Appreciation Rights Agreement for directors under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.11 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
10.63	Form of Non-qualified Stock Option Agreement for directors under the Wilson Bank Holding Company Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.12 of the Company’s Current Report on Form 8-K filed with the SEC on September 30, 2016).*
13.1	Selected Portions of the Wilson Bank Holding Company Annual Report to Shareholders for the year ended December 31, 2016 incorporated by reference into items 1, 5, 6, 7, 7A and 8.
21.1	Subsidiaries of the Company.
23.1	Consent of Independent Registered Public Accounting Firm.
31.1	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of the Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of the Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Interactive Data File.

*    Management compensatory plan or contract

54

EX-13.1

Exhibit 13.1

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended regarding, among other things, the anticipated financial and operating results of the Company. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to publicly release any modifications or revisions to these forward-looking statements to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events.

The Company cautions investors that future financial and operating results may differ materially from those projected in forward-looking statements made by, or on behalf of, the Company. The words “expect,” “intend,” “should,” “may,” “could,” “believe,” “suspect,” “anticipate,” “seek,” “plan,” “estimate” and similar expressions are intended to identify such forward-looking statements, but other statements not based on historical fact may also be considered forward-looking. Such forward-looking statements involve known and unknown risks and uncertainties, including, but not limited to those described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, and also include, without limitation, (i) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for these losses, (ii) renewed deterioration in the real estate market conditions in the Company’s market areas, (iii) increased competition with other financial institutions, (iv) the deterioration of the economy in the Company’s market areas, (v) rapid fluctuations in short-term interest rates, (vi) significant downturns in the business of one or more large customers, (vii) the inability of the Company to comply with regulatory capital requirements, including those resulting from changes to capital calculation methodologies and required capital maintenance levels; (viii) changes in state or Federal regulations, policies, or legislation applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd Frank Wall Street Reform and Consumer Protection Act, (ix) changes in capital levels and loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions, or regulatory developments, (x) inadequate allowance for loan losses, (xi) the effectiveness of the Company’s activities in improving, resolving or liquidating lower quality assets, (xii) results of regulatory examinations, (xiii) the vulnerability of our network and online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss and other security breaches; (xiv) the possibility of additional increases to compliance costs as a result of increased regulatory oversight; and (xv) loss of key personnel. These risks and uncertainties may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. The Company’s future operating results depend on a number of factors which were derived utilizing numerous assumptions that could cause actual results to differ materially from those projected in forward-looking statements.

General

The Company is a registered bank holding company that owns 100% of the common stock of Wilson Bank and Trust (“Wilson Bank”), a state bank headquartered in Lebanon, Tennessee. The Company was formed in 1992.

Wilson Bank is a community bank headquartered in Lebanon, Tennessee, serving Wilson County, DeKalb County, Smith County, Trousdale County, Rutherford County, the eastern part of Davidson County, Putnam County, and Sumner County, Tennessee as its primary market areas. Generally, this market is the eastern portion of the Nashville-Davidson-Murfreesboro-Franklin, Tennessee metropolitan statistical area. At December 31, 2016, Wilson Bank had twenty-six locations in Wilson, Davidson, DeKalb, Smith, Sumner, Rutherford, Putnam, and Trousdale Counties. Management believes that these counties offer an environment for continued growth, and the Company’s target market is local consumers, professionals and small businesses. Wilson Bank offers a wide range of banking services, including checking, savings and money market deposit accounts, certificates of deposit and loans for consumer, commercial and real estate purposes. The Company also offers an investment center which offers a full line of investment services to its customers.

The following discussion and analysis is designed to assist readers in their analysis of the Company’s consolidated financial statements and should be read in conjunction with such consolidated financial statements.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Critical Accounting Estimates

The accounting principles we follow and our methods of applying these principles conform with U.S. generally accepted accounting principles and with general practices within the banking industry. In connection with the application of those principles, we have made judgments and estimates which, in the case of the determination of our allowance for loan losses and the assessment of impairment of the intangibles resulting from our mergers with Dekalb Community Bank and Community Bank of Smith County in 2005 have been critical to the determination of our financial position and results of operations. Additional information regarding significant accounting policies is described in Note 1 to the Financial Statements for the year ended December 31, 2016 in the Company’s Annual Report on Form 10-K.

Allowance for Loan Losses (“allowance”)-Our management assesses the adequacy of the allowance prior to the end of each calendar quarter. This assessment includes procedures to estimate the allowance and test the adequacy and appropriateness of the resulting balance. The level of the allowance is based upon management’s evaluation of the loan portfolio, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indicators and other pertinent factors, including regulatory recommendations. This evaluation is inherently subjective as it requires material estimates, including the amounts and timing of future cash flows expected to be received on impaired loans, that may be susceptible to significant change. Loan losses are charged off when management believes that the full collectability of the loan is unlikely. A loan may be partially charged-off after a “confirming event” has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. Allocation of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, is deemed to be uncollectible.

A loan is impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collection of all amounts due according to the contractual terms means that both the interest and principal payments of a loan will be collected as scheduled in the loan agreement.

An impairment allowance is recognized if the fair value of the loan is less than the recorded investment in the loan (recorded investment in the loan is the principal balance plus any accrued interest, net of deferred loan fees or costs and unamortized premium or discount). The impairment is recognized through the allowance. Loans that are impaired are recorded at the present value of expected future cash flows discounted at the loan’s effective interest rate, or if the loan is collateral dependent, impairment measurement is based on the fair value of the collateral, less estimated disposal costs. If the measure of the impaired loan is less than the recorded investment in the loan, the Company recognizes an impairment by creating a valuation allowance with a corresponding charge to the provision for loan losses or by adjusting an existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses. Management believes it follows appropriate accounting and regulatory guidance in determining impairment and accrual status of impaired loans.

The level of allowance maintained is believed by management to be adequate to absorb probable losses inherent in the portfolio at the balance sheet date. The allowance is increased by provisions charged to expense and decreased by charge-offs, net of recoveries of amounts previously charged-off.

In assessing the adequacy of the allowance, we also consider the results of our ongoing loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, the input from our independent loan reviewers, and reviews that may have been conducted by bank regulatory agencies as part of their usual examination process. We incorporate loan review results in the determination of whether or not it is probable that we will be able to collect all amounts due according to the contractual terms of a loan.

As part of management’s quarterly assessment of the allowance, management divides the loan portfolio into twelve segments based on bank call reporting requirements. Each segment is then analyzed such that an allocation of the allowance is estimated for each loan segment.

The allowance allocation begins with a process of estimating the probable losses in each of the twelve loan segments. The estimates for these loans are based on our historical loss data for that category over the last twenty quarters.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The estimated loan loss allocation for all twelve loan portfolio segments is then adjusted for several “environmental” factors. The allocation for environmental factors is particularly subjective and does not lend itself to exact mathematical calculation. This amount represents estimated probable inherent credit losses which exist, but have not yet been identified, as of the balance sheet date, and are based upon quarterly trend assessments in delinquent and nonaccrual loans, unanticipated charge-offs, credit concentration changes, prevailing economic conditions, changes in lending personnel experience, changes in lending policies or procedures, changes in interest rate, and other influencing factors. These environmental factors are considered for each of the twelve loan segments, and the allowance allocation, as determined by the processes noted above for each component, is increased or decreased based on the incremental assessment of these various environmental factors.

We then test the resulting allowance by comparing the balance in the allowance to industry and peer information. Our management then evaluates the result of the procedures performed, including the result of our testing, and concludes on the appropriateness of the balance of the allowance in its entirety. The board of directors reviews and approves the assessment prior to the filing of quarterly and annual financial information.

Impairment of Intangible Assets-Long-lived assets, including purchased intangible assets subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated.

Goodwill and intangible assets that have indefinite useful lives are evaluated for impairment annually and are evaluated for impairment more frequently if events and circumstances indicate that the asset might be impaired. That annual assessment date is December 31. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The Company first has the option to perform a qualitative assessment of goodwill to determine if impairment has occurred. Based upon the qualitative assessment, if the fair value of goodwill exceeds the carrying value, the evaluation of goodwill is complete. If the qualitative assessment indicates that impairment is present, the goodwill impairment analysis continues with a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment.

If required, the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated potential impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the first step, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill.

Other-than-temporary Impairment-Impaired securities are assessed quarterly for the presence of other-than-temporary impairment (“OTTI”). A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether OTTI has occurred, management considers factors such as (1) length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, and (3) the Company’s ability and intent to hold the security for a period sufficient to allow for an anticipated recovery in fair value. If management deems a security to be OTTI, management reviews the present value of the future cash flows associated with the security. A shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, the credit loss is recognized in that period as a charge to earnings and a new cost basis for the security is established. If management concludes that no credit loss exists and it is not more-likely-than-not that the Company will be required to sell the security before the recovery of the security’s cost basis, then the security is not deemed OTTI and the shortfall is recorded as a component of equity.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Results of Operations

Net earnings for the year ended December 31, 2016 were $25,633,000, an increase of $1,770,000, or 7.42%, compared to net earnings of $23,863,000 for 2015. Our 2015 net earnings were 14.85%, or $3,086,000, above our net earnings of $20,777,000 for 2014. Basic earnings per share were $2.49 in 2016, compared with $2.35 in 2015 and $2.06 in 2014. Diluted earnings per share were $2.49 in 2016, compared to $2.35 in 2015 and $2.06 in 2014. Net yield on earning assets for the year ended December 31, 2016 was 3.80%, compared to 3.80% and 3.75% for the years ended December 31, 2015 and December 31, 2014, respectively. Net interest spread for the year ended December 31, 2016 was 3.71%, compared to 3.70% and 3.65% for the years ended December 31, 2015 and December 31, 2014, respectively. See below for further discussion regarding variances related to net interest income, provision for loan losses, non-interest income, non-interest expense and income taxes.

Net Interest Income

Net interest income represents the amount by which interest earned on various earning assets exceeds interest paid on deposits and other interest-bearing liabilities and is the most significant component of the Company’s earnings. Total interest income in 2016 was $84,746,000, compared with $78,839,000 in 2015 and $74,380,000 in 2014, in each case excluding tax exempt adjustments relating to tax exempt securities. The increase in total interest income in 2016 was primarily attributable to an overall increase in loans and the resulting increase in the aggregate amount of interest and fees earned on loans that outpaced an overall reduction in loan yields resulting from competition in our market area. The ratio of average earning assets to total average assets was 95.6%, 95.7% and 95.7% for each of the years ended December 31, 2016, 2015 and 2014, respectively. Average earning assets increased $171,851,000 from December 31, 2015 to December 31, 2016. The average rate earned on earning assets for 2016 was 4.21%, compared with 4.26% in 2015 and 4.32% in 2014. The decrease in yields is a direct reflection of the decrease in loan yields resulting from competition in our area. However, the decreases in earning asset yields were offset by a decrease in the cost of interest-bearing deposits, which when coupled with growth in interest earning assets led to an overall increase in net interest income.

Interest earned on earning assets does not include any interest income which would have been recognized on non-accrual loans if such loans were performing. The amount of interest not recognized on non-accrual loans totaled $202,000 in 2016, $291,000 in 2014 and $39,000 in 2014. Total interest expense for 2016 was $8,284,000, a decrease of $324,000, or 3.76%, compared to total interest expense of $8,608,000 in 2015. The decrease in 2016 was primarily due to a decrease in the rates paid on deposits, particularly transaction accounts and money market accounts, reflecting the low interest rate environment and a continued shift in the mix of deposits from certificates of deposits and individual retirement accounts to transaction and money market accounts. Total interest expense decreased from $9,768,000 in 2014 to $8,608,000 in 2015, a decrease of $1,160,000, or 11.88%, reflecting similar shifts in deposit mix and reductions in rates paid as experienced in 2016.

Net interest income for 2016 totaled $76,462,000 as compared to $70,231,000 and $64,612,000 in 2015 and 2014, respectively. The net interest spread, defined as the effective yield on earning assets less the effective cost of deposits and borrowed funds (calculated on a fully taxable equivalent basis), increased to 3.71% in 2016 from 3.70% in 2015. The net interest spread was 3.65% in 2014. Net yield on earning assets for 2016 and 2015 was 3.80%, up from 3.75% in 2014. The increase in net yield on earning assets resulted from Wilson Bank’s ability to lower deposit costs in excess of the decrease in interest rates received on interest earning assets. Changes in interest rates paid on products such as interest checking, savings, and money market accounts will generally increase or decrease in a manner that is consistent with changes in the short-term environment. The Company’s liabilities are positioned to re-price faster than its assets such that a short-term declining rate environment should have a positive impact on the Company’s earnings as its interest expense decreases faster than interest income. Conversely, a rising rate environment could have a short-term negative impact on margins as many of the Company’s loans have rate floors above current market rates, thus deposits would likely re-price faster than loans. Management regularly monitors the deposit rates of the Company’s competitors and these rates continue to put pressure on the Company’s deposit pricing. This pressure could negatively impact the Company’s net interest margin and earnings if short-term rates begin to rise.

Provision for Loan Losses

The provision for loan losses represents a charge to earnings necessary to establish an allowance for loan losses that, in management’s evaluation, is adequate to provide coverage for estimated losses on outstanding loans and to provide for uncertainties in the economy. The 2016 provision for loan losses was $379,000, a decrease of $9,000 from the provision of $388,000 in 2015, which was $110,000 lower than the provision in 2014. The decrease in the provision for the year ended December 31, 2016 reflects the improving asset quality trends experienced by Wilson Bank in 2016 reflective of the continued improvement in the economy in Wilson Bank's primary market areas. Management continues to fund the allowance for loan losses through provisions based on management’s calculation of the allowance for loan losses. Current year provisions for loan losses are primarily attributable to loan growth, which

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

was 15.26% in 2016. The provision for loan losses is based on past loan experience and other factors which, in management’s judgment, deserve current recognition in estimating loan losses. Such factors include growth and composition of the loan portfolio, review of specific problem loans, past due and nonperforming loans, change in lending staff, the recommendations of the Company’s regulators, and current economic conditions that may affect the borrowers’ ability to repay.

Wilson Bank’s charge-off policy for impaired loans is similar to its charge-off policy for all loans in that loans are charged-off in the month when they are considered uncollectible. Net charge-offs increased to $548,000 in 2016 from $60,000 in 2015 due to the recovery of one large loan in 2015. Net charge-offs in 2014 totaled $861,000. The ratio of net charge-offs to average total outstanding loans was 0.04% in 2016, 0.004% in 2015 and 0.07% in 2014.

The increase in net charge-offs and decrease in provision for loan losses resulted in a decrease of the allowance for loan losses (net of charge-offs and recoveries) to $22,731,000 at December 31, 2016 from $22,900,000 at December 31, 2015 and $22,572,000 at December 31, 2014. The allowance for loan losses decreased .74% between December 31, 2015 and December 31, 2016 as compared to the 15.26% increase in total loans over the same period, reflecting management's views that the Company's asset quality metrics continued to improve in 2016, and the lower levels of nonperforming assets. The allowance for loan losses was 1.35% of total loans outstanding at December 31, 2016 compared to 1.56% at December 31, 2015 and 1.67% at December 31, 2014. As a percentage of nonperforming loans at December 31, 2016, 2015 and 2014, the allowance for loan losses represented 340%, 242% and 392%, respectively. The internally classified loans as a percentage of the allowance for loan losses were 71.1% and 110.1%, respectively, at December 31, 2016 and 2015.

The level of the allowance and the amount of the provision involve evaluation of uncertainties and matters of judgment. The Company maintains an allowance for loan losses which management believes is adequate to absorb losses inherent in the loan portfolio. A formal review is prepared quarterly by the Chief Financial Officer and provided to the Board of Directors to assess the risk in the portfolio and to determine the adequacy of the allowance for loan losses. The review includes analysis of historical performance, the level of non-performing and adversely rated loans, specific analysis of certain problem loans, loan activity since the previous assessment, reports prepared by the Company's independent Loan Review Department, consideration of current economic conditions and other pertinent information. The level of the allowance to net loans outstanding will vary depending on the overall results of this quarterly assessment. See the discussion under “Critical Accounting Estimates” for more information. Management believes the allowance for loan losses at December 31, 2016 to be adequate, but if economic conditions deteriorate beyond management’s current expectations and additional charge-offs are incurred, the allowance for loan losses may require an increase through additional provision for loan losses which would negatively impact earnings.

Non-Interest Income

The components of the Company’s non-interest income include service charges on deposit accounts, other fees and commissions, fees and gains on sales of loans, gains on sales of securities, bank-owned life insurance (BOLI) and annuity earnings, gain on the sale of other real estate and other income. Total non-interest income for 2016 was $21,728,000, compared with $19,941,000 in 2015 and $16,678,000 in 2014. The 8.96% increase from 2015 was primarily due to an increase in service charges on deposits, an increase in other fees and commissions, an increase in security gains, and increase in fees and gains on sales of loans offset in part by a decrease in income on BOLI and annuity contracts and a decrease on the gain on sale of other real estate. Other fees and commissions increased $939,000 in 2016 when compared to 2015. Other fees and commissions include income on brokerage accounts, debit card interchange fee income, and various other fees. Fees and gains on sales of loans increased $307,000 in 2016 when compared to 2015. The increase in fees and gains on sales of loans during 2016 related primarily to the increase in consumer demand for residential mortgages and the continued improvement in the real estate market in Wilson Bank's lending areas. The service charges on deposit accounts increased $621,000, or 12.06%, to $5,769,000 for the year ended December 31, 2016 compared to the year ended December 31, 2015 as a result of our overdraft privilege program and an increase in consumer checking accounts as well as transactions. Income earned on bank-owned life insurance decreased $45,000, or 5.13%, to $832,000 during the year ended December 31, 2016 compared to the same period in 2015, resulting from the $8.5 million purchase of additional bank-owned life insurance in 2015 that was accompanied by a one-time bonus. Gain on the sale of other real estate decreased $310,000 for the year ended December 31, 2016 as compared to December 31, 2015 due to a lower volume of foreclosures, less other real estate owned transactions, and overall improved economic conditions and housing market.

The Company’s non-interest income is composed of several components, some of which vary significantly between periods. Service charges on deposit accounts and other non-interest income generally reflect the Company’s growth, while fees for origination of mortgage loans and brokerage fees and commissions will often reflect stock and home mortgage market conditions and fluctuate more widely from period to period.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Non-Interest Expenses

Non-interest expenses consist primarily of employee costs, FDIC premiums, occupancy expenses, furniture and equipment expenses, data processing expenses, directors’ fees, loss on the disposition of other assets and fixed assets, and other operating expenses. Total non-interest expenses for 2016 increased 9.93% to $57,337,000 from $52,159,000 in 2015. Non-interest expenses for 2015 were up 9.3% over non-interest expenses in 2014 which totaled $47,705,000. The increase in non-interest expenses in 2016 is primarily attributable to an increase in salaries and employee benefits and the reversal of an accrual for potential litigation losses that was recorded in 2015. Salaries and employee benefits were up in 2016 when compared to 2015 because the number of employees continued to increase in order to support the Company's growth in operations and new branch expansions. Occupancy expenses for 2016 increased $194,000, or 5.6% from 2015 due to the opening of a new branch and the remodeling of two existing branches.

Income Taxes

The Company’s income tax expense was $14,841,000 for 2016, an increase of $1,079,000 from $13,762,000 for 2015, which was up by $1,452,000 from the 2014 total of $12,310,000. The percentage of income tax expense to earnings before taxes was 36.7% in 2016, 36.6% in 2015 and 37.2% in 2014.

Our income tax expense, deferred tax assets and liabilities and reserves for unrecognized tax benefits reflect management’s best assessment of estimated future taxes to be paid. We are subject to income taxes at both the federal and state level. Significant judgments and estimates are required in determining the consolidated income tax expense.

Deferred income taxes arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we begin with historical results adjusted for changes in accounting policies and incorporate assumptions including the amount of future state and federal pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying businesses. In evaluating the objective evidence that historical results provide, we consider three years of cumulative operating income. Changes in current tax laws and rates could also affect recorded deferred tax assets and liabilities in the future. Management is not aware of any such changes that would have a material effect on the Company’s results of operations, cash flows or financial position, but if the corporate tax rate was reduced materially, we would likely record a valuation allowance on our deferred tax assets that would negatively impact our results of operations. However, the decrease in current tax provision due to a lowering of rates would likely offset any recorded valuation allowance on our deferred tax assets.

Financial Accounting Standards Board (“FASB”) ASC Topic 740, Income Taxes (“ASC 740”) provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. ASC Topic 740 also provides guidance on measurement, derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

We recognize tax liabilities in accordance with ASC Topic 740 and we adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available. Due to the complexity of some of these uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the tax liabilities. These differences will be reflected as increases or decreases to income tax expense in the period in which they are determined.

Earnings Per Share

The computation of basic earnings per share is based on the weighted average number of common shares outstanding during the period. The computation of diluted earnings per share for the Company begins with the basic earnings per share plus the effect of common shares contingently issuable from stock options.

The following is a summary of components comprising basic and diluted earnings per share (“EPS”) for the years ended December 31, 2016, 2015 and 2014:

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	Years Ended December 31,
	2016		2015	2014
	(Dollars in Thousands except per share amounts)
Basic EPS Computation
Numerator – Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator – Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Basic earnings per common share	$	2.49	2.35	2.06
Diluted EPS Computation:
Numerator – Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator – Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Dilutive effect of stock options	4,996		4,703	5,857
	10,284,328		10,170,180	10,068,640
Diluted earnings per common share	$	2.49	2.35	2.06

Financial Condition

Balance Sheet Summary

The Company’s total assets increased by $176,447,000, or 8.73%, to $2,198,051,000 at December 31, 2016, after increasing 7.92% in 2015 to $2,021,604,000 at December 31, 2015. Loans, net of allowance for loan losses, totaled $1,667,088,000 at December 31, 2016, a 15.51% increase compared to December 31, 2015. The increase in loans resulted from an overall increase in loan demand in the housing market, as well as other sectors in which we lend money, along with an increase in marketing efforts that concentrated on increasing the volume of loans. At year end 2016, securities totaled $349,209,000, a decrease of 2.81% from $359,323,000 at December 31, 2015, primarily as a result of management's decision to reinvest liquid funds in higher yielding assets as well as a decrease in the fair market value of the available for sale securities. As a result of loan growth that outpaced deposit growth, fed funds sold decreased $35,220,000, or 100.00% to $0 at December 31, 2016.

Total liabilities increased by $155,265,000, or 8.63%, to $1,953,431,000 at December 31, 2016 compared to $1,798,166,000 at December 31, 2015. This increase was composed primarily of the $152,285,000 increase in total deposits to $1,942,135,000, a 8.51% increase from December 31, 2015. Securities sold under repurchase agreements decreased to $736,000 from $2,035,000 at the respective year ends 2016 and 2015.

Stockholders’ equity increased $21,182,000, or 9.48%, in 2016, due to net earnings and the issuance of stock pursuant to the Company’s Dividend Reinvestment Plan, offset by dividends paid on the Company’s common stock and changes in unrealized losses on available-for-sale securities. The change in stockholders’ equity includes a $3,232,000 increase in net unrealized losses on available-for-sale securities, net of taxes during the period. A more detailed discussion of assets, liabilities and capital follows.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Loans:

Loan category amounts and the percentage of loans in each category to total loans are as follows:

	December 31, 2016				December 31, 2015
	(Dollar Amounts in Thousands)				(Dollar Amounts in Thousands)
	AMOUNT		PERCENTAGE		AMOUNT		PERCENTAGE
Commercial, financial and agricultural	$	48,294	2.9	%	$	41,339	2.8	%
Installment and other	44,274		2.6		43,467		3.0
Real estate – mortgage	1,264,277		74.5		1,110,989		75.5
Real estate – construction	339,580		20.0		275,319		18.7
TOTAL	$	1,696,425	100.0	%	$	1,471,114	100.0	%

Loans are the largest component of the Company’s assets and are its primary source of income. The Company’s loan portfolio, net of allowance for loan losses, increased 15.51% at year end 2016 when compared to year end 2015. The loan portfolio is composed of four primary loan categories: commercial, financial and agricultural; installment and other; real estate-mortgage; and real estate-construction. The table above sets forth the loan categories and the percentage of such loans in the portfolio as of December 31, 2016 and 2015.

As represented in the table, Wilson Bank experienced loan growth for the year ended December 31, 2016 in all loan categories. Real estate mortgage loans increased 13.80% in 2016 and comprised 74.5% of the total loan portfolio at December 31, 2016, compared to 75.5% at December 31, 2015. Management believes the increase in real estate mortgage loans was primarily due to the continued favorable interest rate environment, favorable population growth in the Company’s market areas, and the Company’s ability to increase its market share of such loans while maintaining its loan underwriting standards. Installment loans increased 1.86% in 2016 and comprised 2.6% of the total loan portfolio at December 31, 2016, compared to 3.0% at December 31, 2015. Commercial, financial, and agricultural loans increased 16.82% in 2016 and comprised 2.9% of the total loan portfolio at December 31, 2016, compared to 2.8% at December 31, 2015. Real estate construction loans increased 23.34% in 2016 and comprised 20.0% of the portfolio at December 31, 2016, compared to 18.7% at December 31, 2015. The increase in real estate construction loans during 2016 reflected the overall increase in demand for such loans in the overall economy and the Company’s market. Because of the increase in the construction portfolio, Wilson Bank has implemented an additional layer of monitoring as it seeks to avoid advancing funds that exceed the present value of the collateral securing the loan. The responsibility for monitoring percentage of completion and distribution of funds tied to these completion percentages are now monitored and administered by a credit administration department independent of the lending function. Wilson Bank continues to seek to diversity its real estate portfolio to avoid having concentrations in any one type of loan.

Banking regulators define highly leveraged transactions to include leveraged buy-outs, acquisition loans and recapitalization loans of an existing business. Under the regulatory definition, at December 31, 2016, the Company had no highly leveraged transactions, and there were no foreign loans outstanding during any of the reporting periods. As of December 31, 2016, the Company had not underwritten any loans in connection with capital leases.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The following tables present the Company’s nonaccrual loans and past due loans as of December 31, 2016 and December 31, 2015.

Loans on Nonaccrual Status	In Thousands
	2016		2015
Residential 1-4 family	$	—	$	41
Multifamily	—		—
Commercial real estate	3,255		4,293
Construction	—		—
Farmland	310		575
Second mortgages	—		—
Equity lines of credit	—		—
Commercial	—		—
Agricultural, installment and other	—		—
Total	$	3,565	$	4,909

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	(In thousands)
	30-59 Days Past Due		60-89 Days Past Due	Nonaccrual and Greater than 90 Days Past Due	Past Due	Current	Loans	Loans Greater Than 90 Days Past Due and Accruing Interest
December 31, 2016
Residential 1-4 family	$	3,311	1,307	1,434	6,052	370,820	376,872	$	1,434
Multifamily	—		—	—	—	79,908	79,908	—
Commercial real estate	41		175	3,335	3,551	701,256	704,807	80
Construction	1,872		53	22	1,947	337,633	339,580	22
Farmland	56		1,163	410	1,629	35,890	37,519	100
Second mortgages	177		—	11	188	8,978	9,166	11
Equity lines of credit	40		148	17	205	55,800	56,005	17
Commercial	37		4	—	41	37,636	37,677	—
Agricultural, installment and other	385		85	143	613	54,278	54,891	143
Total	$	5,919	2,935	5,372	14,226	1,682,199	1,696,425	$	1,807
December 31, 2015
Residential 1-4 family	$	3,272	1,198	1,412	5,882	343,749	349,631	$	1,371
Multifamily	—		—	—	—	49,564	49,564	—
Commercial real estate	172		—	4,293	4,465	621,158	625,623	—
Construction	958		230	—	1,188	274,131	275,319	—
Farmland	88		21	886	995	31,119	32,114	311
Second Mortgages	87		—	4	91	7,460	7,551	4
Equity Lines of Credit	283		89	197	569	45,937	46,506	197
Commercial	2		—	39	41	30,496	30,537	39
Agricultural, installment and other	382		114	56	552	53,717	54,269	56
Total	$	5,244	1,652	6,887	13,783	1,457,331	1,471,114	$	1,978

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Non-performing loans, which include nonaccrual loans and loans 90 days past due, totaled $5,372,000 at December 31, 2016, a decrease from $6,887,000 at December 31, 2015, resulting from a $1,344,000, or 27.38%, decrease in nonaccrual loans and a $171,000, or 8.65%, decrease in 90 day past due and accruing loans. The decrease in non-performing loans during the year ended December 31, 2016 of $1,151,000 was due primarily to a decrease in non-performing commercial real estate mortgage loans of $4,274,000, offset in part by an increase of non-performing residential 1-4 family real estate loans of $958,000. The decrease in non-performing commercial real estate mortgage loans resulted primarily from one large commercial real estate loan in nonaccrual status that was paid off and another loan that was partially paid off. Nonaccrual loans are loans on which interest is no longer accrued because management believes collection of such interest is doubtful due to management’s evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors affecting the borrower’s ability to pay. Nonaccrual loans totaled $3,565,000 at December 31, 2016, compared to $4,909,000 at December 31, 2015. The decrease in nonaccrual loans relates primarily to a decrease in nonaccrual commercial real estate mortgage loans of $1,038,000 reflected in the above-described decrease in non-performing loans within that category that resulted primarily from one large commercial real estate loan in nonaccrual status that was paid off and another nonaccrual loan that was partially paid off. Management believes that it is probable that it will incur losses on nonperforming loans but believes that these losses should not exceed the amount in the allowance for loan losses already allocated to these loans, unless there is a deterioration of local real estate values.

At December 31, 2016, the Company had one impaired loan totaling $2,988,000 which was on non accruing interest status. At December 31, 2015, the Company had three impaired loans of $4,868,000 which were on non accruing interest status. In each case, at the date such loans were placed on nonaccrual status, the Company reversed all previously accrued interest income against current year earnings.

The following table presents the Company’s impaired loans (including loans on nonaccrual status and loans past due 90 days or more) at December 31, 2016 and December 31, 2015.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With no related allowance recorded:
Residential 1-4 family	$	150	148	—	150	7
Multifamily	—		—	—	—	—
Commercial real estate	4,248		4,246	—	4,352	38
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment, and other	—		—	—	—	—
	$	6,125	6,115	—	6,359	132
With allowance recorded:
Residential 1-4 family	$	540	531	196	540	32
Multifamily	—		—	—	—	—
Commercial real estate	443		443	120	111	5
Construction	—		—	—	—	—
Farmland	—		—	—	—	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment, and other	—		—	—	—	—
	$	983	974	316	651	37

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Total
Residential 1-4 family	$	690	679	196	690	39
Multifamily	—		—	—	—	—
Commercial real estate	4,691		4,689	120	4,463	43
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,108	7,089	316	7,010	169
December 31, 2015
With no related allowance recorded:
Residential 1-4 family	$	633	622	—	724	39
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	5,048	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	431	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment, and other	—		—	—	—	—
	$	7,796	7,778	—	6,689	160
With allowance recorded:
Residential 1-4 family	$	834	827	194	785	47
Multifamily	—		—	—	—	—
Commercial real estate	—		—	—	3,419	—
Construction	—		—	—	—	—
Farmland	—		—	—	144	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment, and other	—		—	—	—	—
	$	834	827	194	4,348	47
Total
Residential 1-4 family	$	1,467	1,449	194	1,509	86
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	8,467	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	575	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	8,630	8,605	194	11,037	207

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

A loan is considered impaired, in accordance with the impairment accounting guidance of FASB ASC 310, when the current net worth and financial capacity of the borrower or of the collateral pledged, if any, is viewed as inadequate and it is probable that the Company will be unable to collect the scheduled payments of principal and interest due under the contractual terms of the loan agreement. In those cases, such loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt, and if such deficiencies are not corrected, there is a probability that the Company will sustain some loss. In such cases, interest income continues to accrue as long as the loan does not meet the Company’s criteria for nonaccrual status. Impaired loans are measured at the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. If the measure of the impaired loan is less than the recorded investment in the loan, the Company shall recognize impairment by creating a valuation allowance with a corresponding charge to the provision for loan losses or by adjusting an existing valuation allowance for the impaired loan with a corresponding charge or credit to the provision for loan losses.

The Company considers all loans subject to the provisions of FASB ASC 310 that are on nonaccrual status to be impaired. Loans are placed on nonaccrual status when doubt as to timely collection of principal or interest exists, or when principal or interest is past due 90 days or more unless such loans are well-secured and in the process of collection. Delays or shortfalls in loan payments are evaluated with various other factors to determine if a loan is impaired. Generally, delinquencies under 90 days are considered insignificant unless certain other factors are present which indicate impairment is probable. The decision to place a loan on nonaccrual status is also based on an evaluation of the borrower’s financial condition, collateral liquidation value, and other factors that affect the borrower’s ability to pay.

The Company also internally classifies loans which, although current, management questions the borrower’s ability to comply with the present repayment terms of the loan agreement. These internally classified loans totaled $16,158,000, inclusive of the Company’s non-performing loans, at December 31, 2016, as compared to $25,217,000 at December 31, 2015. Of the internally classified loans at December 31, 2016, $16,021,000 are real estate related loans (including loans to home builders and developers of land, commercial real estate, as well as multi family mortgage loans) and $137,000 are various other types of loans. These loans have been graded accordingly considering bankruptcies, inadequate cash flows and delinquencies. Management does not anticipate losses on these loans to exceed the amount already allocated to loan losses for these loans, unless there is a deterioration of local real estate values.

The internally classified loans as a percentage of the allowance for loan losses were 71.1% and 110.1%, respectively, at December 31, 2016 and 2015.

The Company’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. The concessions typically result from the Company’s loss mitigation activities and could include reduction in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. Because of Wilson Bank’s policy to consider a TDR as nonperforming until there has been at least six months of repayment performance, the addition of one large TDR in the last half of 2015 caused the nonperforming TDRs as of December 31, 2016 to decrease $1,802,000 when compared to 2015; however, overall TDR relationships increased. Total TDRs increased $492,000 from December 31, 2015 to December 31, 2016 due to several small loan relationships that were classified as TDRs in 2016.

The allowance for loan losses is discussed under “Critical Accounting Estimates” and “Provision for Loan Losses.” The Company maintains its allowance for loan losses at an amount believed by management to be adequate to provide for loan losses in the loan portfolio.

Substantially all of the Company’s loans are from Wilson, DeKalb, Smith, Putnam, Trousdale, Davidson, Rutherford and adjacent counties. Although the majority of the Company's loans are in the real estate market, the Company seeks to exercise prudent risk management in lending through the diversification by loan category within the real estate segment, including 1-4 family residential real estate, commercial real estate, multifamily, construction, second mortgages, farmland, and equity lines of credit. At December 31, 2016, no single industry segment accounted for more than 10% of the Company’s portfolio other than construction and real estate loans.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The Company’s management believes there is an opportunity to increase the loan portfolio in the Company’s primary market area in 2017 as economic conditions continue to improve. The Company will target commercial business lending, commercial and residential real estate lending and consumer lending as areas of emphasis in 2017. Although it is the Company’s objective to achieve a loan portfolio equal to approximately 85% of deposit balances, various factors, including demand for loans which meet its underwriting standards, will likely determine the size of the loan portfolio in a given economic climate. At December 31, 2016, the Company’s total loans equaled 87.0% of its total deposits. As a practice, the Company generates its own loans and does not buy participations from other institutions. The Company may sell portions of the loans it generates to other financial institutions for cash in order to improve the liquidity of the Company’s loan portfolio or extend its lending capacity.

Securities

Securities decreased 2.81% to $349,209,000 at December 31, 2016 from $359,323,000 at December 31, 2015, and comprised the second largest and other primary component of the Company’s earning assets. Securities decreased as the result of management’s decision to reinvest liquid funds in higher yielding assets and a decrease in the fair market value of available-for-sale securities. The average yield, excluding tax equivalent adjustment, of the securities portfolio at December 31, 2016 was 2.14% with a weighted average life of 6.09 years, as compared to an average yield of 2.16% and a weighted average life of 5.25 years at December 31, 2015. The weighted average lives on mortgage-backed securities reflect the repayment rate used for book value calculations.

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

No securities have been classified as trading securities.

The Company’s classification of securities as of December 31, 2016 and December 31, 2015 is as follows:

	December 31, 2016				December 31, 2016
(In Thousands)	Held-To-Maturity				Available-For-Sale
	Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)*	$	—	$	—	$	61,879	$	59,488
Mortgage-backed
GSEs residential	11,856		11,674		166,316		164,365
Asset-backed:
SBAP	—		—		37,577		36,857
Obligations of state and political
subdivision	24,768		24,471		53,429		51,875
	$	36,624	$	36,145	$	319,201	$	312,585

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks, and Government National Mortgage Association

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	December 31, 2015				December 31, 2015
(In Thousands)	Held-To-Maturity				Available-For-Sale
	Amortized Cost		Estimated Market Value		Amortized Cost		Estimated Market Value
U.S. Government-sponsored enterprises (GSEs)*	$	—	$	—	$	77,177	$	76,909
Mortgage-backed:
GSE residential	9,375		9,266		192,983		191,915
Asset-backed:
SBAP	—		—		31,253		31,034
Obligations of state and political
Subdivision	18,820		19,099		31,093		31,270
	$	28,195	$	28,365	$	332,506	$	331,128

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks, and Government National Mortgage Association

The classification of a portion of the securities portfolio as available-for-sale was made to provide for more flexibility in asset/liability management and capital management.

The following table shows the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2016:

	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses		Number of Securities	Fair Value		Unrealized Losses
Held to Maturity Securities:
Mortgage-backed:
GSE residential	$	8,177	$	151	7	$	1,704	$	79	1	$	9,881	$	230
Obligations of states and political subdivisions	16,081		439		41	—		—		—	16,081		439
	$	24,258	$	590	48	$	1,704	$	79	1	$	25,962	$	669
Available for Sale Securities:
GSEs	$	59,488	$	2,391	23	$	—	$	—	—	$	59,488	$	2,391
Mortgage-backed:
GSE residential	124,011		2,350		64	6,918		97		9	130,929		2,447
Asset-backed:
SBAP	33,579		729		17	—		—		—	33,579		729
Obligations of states and political subdivisions	42,801		1,606		116	—		—		—	42,801		1,606
	$	259,879	$	7,076	220	$	6,918	$	97	9	$	266,797	$	7,173

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The impaired securities are considered high quality investments in line with normal industry investing practices. The unrealized losses are primarily the result of changes in the interest rate and sector environments. Impaired securities are assessed quarterly for the presence of other-than-temporary impairment (“OTTI”). A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether OTTI has occurred, management considers factors such as (1) length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospects of the issuer, and (3) the Company’s ability and intent to hold the security for a period sufficient to allow for an anticipated recovery in fair value. If management deems a security to be OTTI, management reviews the present value of the future cash flows associated with the security. A shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, the credit loss is recognized in that period as a charge to earnings and a new cost basis for the security is established. If management concludes that no credit loss exists and it is not more-likely-than-not that it will be required to sell the security before the recovery of the security’s cost basis, then the security is not deemed OTTI and the shortfall is recorded as a component of equity. Accordingly, as of December 31, 2016, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in our consolidated income statement.

Deposits

The increases in assets in 2016 and 2015 were funded primarily by increases in deposits, decrease in fed funds sold, and the Company’s earnings. Total deposits, which are the principal source of funds for the Company, totaled $1,942,135,000 at December 31, 2016 compared to $1,789,850,000 at December 31, 2015. The Company has targeted local consumers, professionals and small businesses as its central clientele; therefore, deposit instruments in the form of demand deposits, savings accounts, money market demand accounts, certificates of deposits and individual retirement accounts are offered to customers. Management believes the Wilson County, Davidson County, DeKalb County, Putnam County, Smith County, Sumner County, Rutherford County and Trousdale County areas are attractive economic markets offering growth opportunities for the Company; however, the Company competes with several larger banks and community banks that have bank offices in these counties which may negatively impact market growth or maintenance of current market share. Even though the Company is in a very competitive market, management currently believes that its market share can be maintained or expanded.

The $152,285,000, or 8.51%, growth in deposits in 2016 was due to a $104,426,000, or 19.93%, increase in money market accounts,a $8,520,000, or 1.91%, increase in NOW accounts, a $29,909,000, or 15.18%, increase in demand deposit accounts and a $15,920,000, or 14.76%, increase in savings accounts, offset in part by a decrease in certificates of deposits (including individual retirement accounts) of $6,490,000 or 1.26%. The average rate paid on average total interest-bearing deposits was 0.50% for 2016, compared to 0.56% for 2015, reflecting a reduction in short-term interest rates and a shift in deposits to lower paying transaction and money market accounts from certificates of deposit. The average rate paid in 2014 was 0.67%. Competitive pressure from other banks in our market area relating to deposit pricing continues to adversely affect the rates paid on deposit accounts as it limits our ability to more fully reduce deposit rates in line with short-term rates. The ratio of average loans to average deposits was 84.0% in 2016, 82.7% in 2015, and 78.7% in 2014. The Company anticipates that during 2017 deposits will continue to shift to money market or savings accounts due to the current rate environment notwithstanding the slight rate increase initiated by the Federal Reserve in late 2016 that we contemplate may continue in 2017.

Contractual Obligations

The Company’s contractual obligations at December 31, 2016 are as follows:

(In Thousands)	Less than 1 Year		1 –3 Years		3-5 Years		More than 5 Years		Total
Long-Term Debt	$	—	$	—	$	—	$	—	$	—
Operating Leases	244		440		391		—		1,075
Purchases	—		—		—		—		—
Other Long-Term
liabilities	—		—		—		—		—
Total	$	244	$	440	$	391	$	—	$	1,075

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Long-term debt contractual obligations would typically include advances from the Federal Home Loan Bank, but at December 31, 2016, the Company had no such advances. The Company leases land for certain branch facilities and automatic teller machine locations. Future minimum rental payments required under the terms of these non-cancellable leases are included in operating lease obligations.

Off Balance Sheet Arrangements

At December 31, 2016, the Company had unfunded lines of credit of $484 million and outstanding standby letters of credit of $51 million. Because these commitments generally have fixed expiration dates and many will expire without being drawn upon, the total commitment level does not necessarily represent future cash requirements. If needed to fund these outstanding commitments, the Company’s bank subsidiary has the ability to 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 Company’s bank subsidiary could sell participations in these or other loans to correspondent banks. As mentioned below, Wilson Bank has been able to fund its ongoing liquidity needs through its stable core deposit base, loan payments, its investment security maturities, and short-term borrowings.

Liquidity and Asset Management

The Company’s management seeks to maximize net interest income by managing the Company’s assets and liabilities within appropriate constraints on capital, liquidity and interest rate risk. Liquidity is the ability to maintain sufficient cash levels necessary to fund operations, meet the requirements of depositors and borrowers and fund attractive investment opportunities. Higher levels of liquidity bear corresponding costs, measured in terms of lower yields on short-term, more liquid earning assets and higher interest expense involved in extending liability maturities. Liquid assets include cash and cash equivalents, investment securities and money market instruments that will mature within one year. At December 31, 2016, the Company’s liquid assets totaled approximately $165 million.

The Company maintains a formal asset and liability management process to quantify, monitor and control interest rate risk, and to assist management in maintaining stability in the net interest margin under varying interest rate environments. The Company accomplishes this process through the development and implementation of lending, funding and pricing strategies designed to maximize net interest income under varying interest rate environments subject to specific liquidity and interest rate risk guidelines.

Analysis of rate sensitivity and rate gap analysis are the primary tools used to assess the direction and magnitude of changes in net interest income resulting from changes in interest rates. Included in the analysis are cash flows and maturities of financial instruments held for purposes other than trading, changes in market conditions, loan volumes and pricing and deposit volume and mix. These assumptions are inherently uncertain, and, as a result, net interest income can not be precisely estimated nor can the impact of higher or lower interest rates on net interest income be precisely predicted. Actual results will differ due to timing, magnitude and frequency of interest rate changes and changes in market conditions and management’s strategies, among other factors.

The Company’s primary source of liquidity is a stable core deposit base. In addition, short-term borrowings, loan payments and investment security maturities provide a secondary source. At December 31, 2016, the Company had a liability sensitive position (a negative gap). Liability sensitivity means that more of the Company’s liabilities are capable of re-pricing over certain time frames than its assets. The interest rates associated with these liabilities may not actually change over this period but are capable of changing.

Interest rate risk (sensitivity) management focuses on the earnings risk associated with changing interest rates. Management seeks to maintain profitability in both immediate and long term earnings through funds management/interest rate risk management. The Company’s rate sensitivity position has an important impact on earnings. Senior management of the Company meets quarterly to analyze its rate sensitivity position. These meetings focus on the spread between the Company’s cost of funds and interest yields generated primarily through loans and investments.

The Company’s securities portfolio consists of earning assets that provide interest income. For those securities classified as held-to-maturity, the Company has the ability and intent to hold these securities to maturity or on a long-term basis. Securities classified as available-for-sale include securities intended to be used as part of the Company’s asset/liability strategy and/or securities that may be sold in response to changes in interest rates, prepayment risk, the need or desire to increase capital and similar economic

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

factors. At December 31, 2016, securities totaling approximately $28.8 million mature or will be subject to rate adjustments within the next twelve months.

A secondary source of liquidity is the Company’s loan portfolio. At December 31, 2016, loans totaling approximately $512 million either will become due or will be subject to rate adjustments within twelve months from that date. Continued emphasis will be placed on structuring adjustable rate loans.

As for liabilities, certificates of deposit and individual retirement accounts of $100,000 or greater totaling approximately $120 million will become due or reprice during the next twelve months. Historically, there has been no significant reduction in immediately withdrawable accounts such as negotiable order of withdrawal accounts, money market demand accounts, demand deposit accounts and regular savings accounts. Management anticipates that there will be no significant withdrawals from these accounts in 2017.

The following table shows the rate sensitivity gaps for different time periods as of December 31, 2016:

Interest Rate Sensitivity Gaps

(In Thousands)	1-90 Days			91-180 Days		181-365 Days		One Year And Longer		Total
Interest-earning assets	$	276,466		92,123		207,555		1,480,684		2,056,828
Interest-bearing liabilities	(1,287,130		)	(71,243	)	(95,011	)	(262,516	)	(1,715,900	)
Interest-rate sensitivity gap	$	(1,010,664	)	20,880		112,544		1,218,168		340,928
Cumulative gap	$	(1,010,664	)	(989,784	)	(877,240	)	340,928

The Company also uses simulation modeling to evaluate both the level of interest rate sensitivity as well as potential balance sheet strategies. The Asset Liability Committee meets quarterly to analyze the interest rate shock simulation. The interest rate simulation model is based on a number of assumptions. The assumptions relate primarily to loan and deposit growth, asset and liability prepayments, the call features of investment securities, interest rates and balance sheet management strategies. The Company also uses Economic Value of Equity (“EVE”) sensitivity analysis to understand the impact of changes in interest rates on long-term cash flows, income and capital. EVE is calculated by discounting the cash flows for all balance sheet instruments under different interest rate scenarios. Presented below is the estimated impact on Wilson Bank’s net interest income and EVE as of December 31, 2016, assuming an immediate shift in interest rates:

	% Change from Base Case for Immediate Parallel Changes in Rates
	-100 BP(1)		+100 BP		+200 BP
Net interest income	(3.13	)%	(3.79	)%	(7.88	)%
EVE	(7.30	)	(0.49	)	(2.08	)

(1) Because certain current short-term interest rates are at or below 1.00%, the 100 basis points downward shock assumes that certain corresponding interest rates reflect a decrease of less than the full 100 basis point downward shock.

Management believes that with present maturities, the anticipated growth in deposit base, and the efforts of management in its asset/liability management program, liquidity will not pose a problem in the near term future. At the present time there are no other known trends or any known commitments, demands, events or uncertainties that will result in, or that are reasonably likely to result in, the Company’s liquidity changing in a materially adverse way.

Capital Resources, Capital Position and Dividends

At December 31, 2016, total stockholders’ equity was $244,620,000, or 11.13% of total assets, which compares with $223,438,000, or 11.05% of total assets, at December 31, 2015, and $200,892,000, or 10.72% of total assets, at December 31, 2014. The dollar

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

increase in the Company’s stockholders’ equity during 2016 reflects (i) net income of $25,633,000 less cash dividends of $0.56 per share totaling $5,756,000, (ii) the issuance of 98,318 shares of common stock for $4,316,000, as reinvestment of cash dividends, (iii) the issuance of 5,120 shares of common stock pursuant to exercise of stock options for $152,000, (iv) the net unrealized loss on available-for-sale securities of $3,232,000, and (v) a stock based compensation expense of $69,000.

The Company and the Bank are subject to regulatory capital requirements administered by the FDIC, the Federal Reserve and the Tennessee Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by the regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Wilson Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1, and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). As of December 31, 2016 and December 31, 2015, the Company and the Bank are considered to be “well-capitalized” under applicable regulatory definitions.

As of December 31, 2016, the most recent notification from the FDIC categorized Wilson Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized for prompt corrective action regualtions as of December 31, 2016 and December 31, 2015, an institution was required to maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk based and Tier 1 leverage ratios as set forth in the following tables and not be subject to a written agreement, order or directive to maintain a specific capital level. There are no conditions or events since the notification that management believes have changed Wilson Bank’s category. The Company’s and Wilson Bank’s actual capital amounts and ratios as of December 31, 2016 and 2015, are presented in the following table (dollar amounts in thousands):

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	Actual				Minimum Capital Requirements				Minimum To Be Well Capitalized Under Applicable Prompt Corrective Action Regulatory Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
December 31, 2016
Total capital to risk weighted assets:
Consolidated	$	266,954	12.7	%	$	181,298	8.625	%	N/A		N/A
Wilson Bank	265,142		12.6		181,496		8.625		$	210,430	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		139,295		6.625		N/A		N/A
Wilson Bank	242,085		11.5		139,462		6.625		168,407		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		107,756		5.125		N/A		N/A
Wilson Bank	242,085		11.5		107,886		5.125		136,831		6.5
Tier 1 capital to average assets:
Consolidated	243,897		11.2		87,106		4.0		N/A		N/A
Wilson Bank	242,085		11.1		87,238		4.0		109,047		5.0

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	Actual				Minimum Capital Requirements				Minimum To Be Well Capitalized Under Applicable Prompt Corrective Action Regulatory Provisions
December 31, 2015	Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital to risk weighted assets:
Consolidated	$	240,848	14.1	%	$	136,588	8.0	%	N/A		N/A
Wilson Bank	238,963		14.0		136,575		8.0		$	170,719	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		102,441		6.0		N/A		N/A
Wilson Bank	217,600		12.8		102,431		6.0		136,575		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		76,831		4.5		N/A		N/A
Wilson Bank	217,600		12.8		76,823		4.5		110,967		6.5
Tier 1 capital to average assets:
Consolidated	219,483		11.1		79,361		4.0		N/A		N/A
Wilson Bank	217,600		11.0		79,354		4.0		99,192		5.0

In July 2013, the Federal banking regulators, in response to the Statutory Requirements of The Dodd-Frank Act, adopted new regulations implementing the Basel Capital Adequacy Accord (“Basel III”) and the related higher minimum capital ratios. The new capital requirements were effective beginning January 1, 2015 and include a new “Common Equity Tier I Ratio”, which has stricter rules as to what qualifies as Common Equity Tier I Capital.

The guidelines under Basel III establish a 2.5% capital conservation buffer requirement that is phased in over four years beginning January 1, 2016. The buffer is related to Risk Weighted Assets. In order to avoid limitations on capital distributions such as dividends and certain discretionary bonus payments to executive officers, a banking organization must maintain capital ratios above the minimum ratios including the buffer. The Basel III minimum requirements after giving effect to the buffer as of January 1, of each year presented are as follows:

	2016		2017		2018		2019
Common Equity Tier I Ratio	5.125	%	5.75	%	6.375	%	7.0	%
Tier I Capital to Risk Weighted Assets Ratio	6.625	%	7.25	%	7.875	%	8.5	%
Total Capital to Risk Weighted Assets Ratio	8.625	%	9.25	%	9.875	%	10.5	%

The requirements of Basel III also place more restrictions on the inclusion of deferred tax assets and capitalized mortgage servicing rights as a percentage of Tier I Capital. In addition, the risk weights assigned to certain assets such as past due loans and certain real estate loans have been increased.

The requirements of Basel III allowed banks and bank holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company and Wilson Bank have opted out of this requirement.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The application of these more stringent capital requirements to the Company and Wilson Bank could, among other things, result in lower returns on invested capital, require the raising of additional capital, and result in regulatory actions if the Company and Wilson Bank were to be unable to comply with such requirements. Furthermore, the imposition of liquidity requirements in connection with the implementation of the final rules regarding Basel III could result in the Company or Wilson Bank having to lengthen the term of their funding, restructure their business models and/or increase their holdings of liquid assets. Implementation of changes to asset risk weightings for risk-based capital calculations, items included or deducted in calculating regulatory capital and/or additional capital conservation buffers could result in management modifying its business strategy and could limit the Company’s and Wilson Bank’s ability to make distributions, including paying dividends or buying back shares.

Quantitative and Qualitative Disclosures About Market Risk

The Company’s primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on a large portion of the Company’s assets and liabilities, and the market value of all interest-earning assets and interest-bearing liabilities, other than those which possess a short term to maturity. Based upon the nature of the Company’s operations, the Company is not subject to foreign currency exchange or commodity price risk.

Interest rate risk (sensitivity) management focuses on the earnings risk associated with changing interest rates. Management seeks to maintain profitability in both short term and long term earnings through funds management/interest rate risk management. The Company’s rate sensitivity position has an important impact on earnings. Senior management of the Company meets quarterly to analyze the rate sensitivity position. These meetings focus on the spread between the cost of funds and interest yields generated primarily through loans and investments.

The following table provides information about the Company’s financial instruments that are sensitive to changes in interest rates as of December 31, 2016.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	(Dollars in Thousands)Expected Maturity Date—Year Ending December 31,
	2017			2018		2019		2020		2021		Thereafter		Total		Fair Value
Earning assets:
Loans, net of unearned interest:
Variable rate	$	33,547		26,977		16,857		16,243		33,214		1,052,027		1,178,865		1,178,865
Average interest rate	4.55		%	4.45	%	4.63	%	4.64	%	4.49	%	4.38	%	4.39	%
Fixed rate	$	211,142		94,626		43,547		30,095		26,165		111,985		517,560		524,040
Average interest rate	4.14		%	4.55	%	5.04	%	4.78	%	4.39	%	4.20	%	4.35	%
Securities	$	2,605		4,442		6,895		7,223		11,120		316,924		349,209		348,730
Average interest rate	3.35		%	1.29	%	1.72	%	1.57	%	1.67	%	1.96	%	2.14	%
Loans held for sale	$	14,788		—		—		—		—		—		14,788		14,788
Average interest rate	3.20		%	—		—		—		—		—		3.20	%
Federal funds sold	—			—		—		—		—		—		—		—
Average interest rate	—			—		—		—		—		—		—
Interest-bearing deposits	$	1,452,649		131,358		76,942		34,783		19,432		—		1,715,164		1,460,812
Average interest rate	0.36		%	1.03	%	1.20	%	1.56	%	1.58	%	—		0.48	%
Securities sold under repurchase agreements	$	736		—		—		—		—		—		736		736
Average interest rate	0.25		%	—		—		—		—		—		0.25	%

Impact of Inflation

Although interest rates are significantly affected by inflation, for the fiscal years ended December 31, 2016, 2015, and 2014, the inflation rate is believed to have had an immaterial impact on the Company’s results of operations.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Disclosures About Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement and not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.

Valuation Hierarchy

FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1-inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2-inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3-inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy.

Assets

Securities available-for-sale-Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy.

Impaired loans-A loan is considered to be impaired when it is probable the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the expense is recognized as a charge-off. Impaired loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower’s underlying financial condition.

Other real estate owned-Other real estate owned (“OREO”) represents real estate foreclosed upon by the Company through loan defaults by customers or acquired in lieu of foreclosure. Substantially all of these amounts relate to lots, homes and development projects that are either completed or are in various stages of construction for which the Company believes it has adequate collateral. Upon foreclosure, the property is recorded at the lower of cost or

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment.

Other assets-Included in other assets are certain assets carried at fair value, including the cash surrender value of bank owned life insurance policies. The Company uses financial information received from insurance carriers indicating the performance of the insurance policies and cash surrender values in determining the carrying value of life insurance. The Company reflects these assets within Level 3 of the valuation hierarchy due to the unobservable inputs included in the valuation of these items. The Company does not consider the fair values of these policies to be materially sensitive to changes in these unobservable inputs.

Mortgage loans held-for-sale-Mortgage loans held-for-sale are carried at their fair value. The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

The following tables present the financial instruments carried at fair value as of December 31, 2016 and December 31, 2015, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	59,488	—	59,488	—
Mortgage-backed securities	164,365		—	164,365	—
Asset-backed securities	36,857		—	36,857	—
State and municipal securities	51,875		—	51,875	—
Total investment securities available-for-sale	$	312,585	—	312,585	—
Loans held for sale	14,788		—	14,788	—
Other assets	28,616		—	—	28,616
Total assets at fair value	$	355,989	—	327,373	28,616
December 31, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	76,909	—	76,909	—
Mortgage-backed securities	191,915		—	191,915	—
Asset-backed securities	31,034		—	31,034	—
State and municipal securities	31,270		—	31,270	—
Total investment securities available-for-sale	$	331,128	—	331,128	—
Loans held for sale	10,135		—	10,135	—
Other assets	26,672		—	—	26,672
Total assets at fair value	$	367,935	—	341,263	26,672

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

	Measured on a Non-recurring basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Other real estate owned	$	4,527	—	—	4,527
Impaired loans, net (¹)	6,792		—	—	6,792
Total	$	11,319	—	—	11,319
December 31, 2015
Other real estate owned	$	5,410	—	—	5,410
Impaired loans, net (¹)	8,436		—	—	8,436
Total	$	13,846	—	—	13,846

(1)    Amount is net of a valuation allowance of $316,000 at December 31, 2016 and $194,000 at December 31, 2015 as required by ASC 310, “Receivables.”

In the case of the investment securities portfolio, the Company monitors the valuation technique utilized by various pricing agencies to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the twelve months ended December 31, 2016, there were no transfers between Levels 1, 2 or 3.

The table below includes a roll forward of the balance sheet amounts for the year ended December 31, 2016 and December 31, 2015 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):

	For the Twelve Months Ended December 31,
	2016			2015
	Other Assets		Other Liabilities	Other Assets		Other Liabilities
Fair value, January 1	$	17,733	—	$	13,344	—
Total realized gains included in income	673		—	532		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	—		—	—		—
Purchases, issuances and settlements, net	10,210		—	3,857		—
Transfers out of Level 3	—		—	—		—
Fair value, December 31	$	28,616	—	$	17,733	—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	$	673	—	$	532	—

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2016 and December 31, 2015. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

Held-to-maturity securities-Estimated fair values for held-to-maturity investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics.

Loans-The fair value of our loan portfolio includes a credit risk factor in the determination of the fair value of our loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Our loan portfolio is initially fair valued using a segmented approach. We divide our loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk.

For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price.

Deposits and Securities sold under agreements to repurchase- Fair values for deposits are estimated using discounted cash flow models, using current market interest rates offered on deposits with similar remaining maturities.

Off-Balance Sheet Instruments-The fair values of the Company’s off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to the Company until such commitments are funded.

The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of the Company’s financial instruments at December 31, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as noninterest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

(in Thousands)	Carrying/ Notional Amount		Estimated Fair Value(¹)	Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Financial assets:
Securities held-to-maturity	$	36,624	36,145	—	36,145	—
Loans, net	1,667,088		1,673,568	—	—	1,673,568
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,942,871		1,631,032	—	—	1,631,032
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—
December 31, 2015
Financial assets:
Securities held-to-maturity	$	28,195	28,365	—	28,365	—
Loans, net	1,443,179		1,443,738	—	—	1,443,738
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,791,885		1,549,414	—	—	1,549,414
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—

⁽¹⁾ Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

Impact of New Accounting Standards

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date" deferred the effective date of ASU 2014-09 by one year to January 1, 2018. We are currently evaluating the potential impact of ASU 2014-09 on our financial statements.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

ASU 2016-02,“Leases (Topic 842)” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

ASU 2016-09,“Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. We elected to adopt the provisions of ASU 2016-09 during the first quarter of 2016 in advance of the required application date of January 1, 2017.

ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements.

ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

WILSON BANK HOLDING COMPANY

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

There were no other recently issued accounting pronouncements that are expected to materially impact the Company.

Holding Company & Stock Information

Wilson Bank Holding Company Directors

James F. Comer, Chairman; Randall Clemons; Charles Bell; Jack Bell; Jerry Franklin; John Freeman; William Jordan; James Anthony Patton; and Elmer Richerson.

Common Stock Market Information

The common stock of Wilson Bank Holding Company is not traded on an exchange nor is there a known active trading market. The number of stockholders of record at February 6, 2017 was 3,920. Based solely on information made available to the Company from limited numbers of buyers and sellers, the Company believes that the following table sets forth the quarterly range of sale prices for the Company’s stock during the years 2015 and 2016. *The information set forth below has been adjusted to reflect a four for three stock split for shareholders as of record as of March 24, 2016.

Stock Prices

2015	High			Low
First Quarter	$	36.26		$	35.81
Second Quarter	$	36.71		$	36.26
Third Quarter	$	37.16		$	36.71
Fourth Quarter	$	37.62		$	37.16
2016	High			Low
First Quarter	$	39.25		$	37.62
Second Quarter	$	42.25	*	$	39.25
Third Quarter	$	40.25		$	39.75
Fourth Quarter	$	55.00	*	$	40.25
*Represents one transaction of 50 shares during the second quarter and one transaction of 294 shares during the fourth quarter of which the company is aware where the sale prices was at least $2.50 higher than any other trade during the quarter. The volume weighted average stock price during the second quarter was $39.28 and the volume weighted stock price during the fourth quarter was $40.62.

On January 1, 2015, a $.30 per share cash dividend was declared and on July 1, 2015 a $.35 per share cash dividend was declared and paid to shareholders of record on those dates. On January 1, 2016, a $.35 per share cash dividend was declared and on July 1, 2016, a $.30 per share cash dividend was declared and paid to shareholders of record on those dates. Future dividends will be dependent upon the Company’s profitability, its capital needs, overall financial condition, economic and regulatory consideration.

Annual Meeting and Information Contacts

The Annual Meeting of Shareholders will be held in the Main Office of Wilson Bank Holding Company at 7:00 P.M., April 11, 2017 at 623 West Main Street, Lebanon, Tennessee.

For further information concerning Wilson Bank Holding Company or Wilson Bank & Trust, or to obtain a copy of the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission, which is available without charge to shareholders, please contact Lisa Pominski, CFO, Wilson Bank & Trust, P.O. Box 768, Lebanon, Tennessee 37088-0768, phone (615) 443-6612.

WILSON BANK HOLDING COMPANY FINANCIAL HIGHLIGHTS (UNAUDITED)

	In Thousands, Except Per Share Information
	As Of December 31,
	2016		2015	2014	2013	2012
CONSOLIDATED BALANCE SHEETS:
Total assets end of year	$	2,198,051	2,021,604	1,873,242	1,748,971	1,680,820
Loans, net	$	1,667,088	1,443,179	1,329,865	1,184,267	1,142,111
Securities	$	349,209	359,323	374,543	356,196	332,786
Deposits	$	1,942,135	1,789,850	1,660,270	1,554,255	1,493,922
Stockholders’ equity	$	244,620	223,438	200,892	177,671	169,698

	Years Ended December 31,
	2016			2015		2014		2013		2012
CONSOLIDATED STATEMENTS OF EARNINGS:
Interest income	$	84,746		78,839		74,380		71,814		72,361
Interest expense	8,284			8,608		9,768		10,879		14,107
Net interest income	76,462			70,231		64,612		60,935		58,254
Provision for loan losses	379			388		498		2,177		9,528
Net interest income after provision for loan losses	76,083			69,843		64,114		58,758		48,726
Non-interest income	21,728			19,941		16,678		15,204		16,035
Non-interest expense	57,337			52,159		47,705		48,787		45,098
Earnings before income taxes	40,474			37,625		33,087		25,175		19,663
Income taxes	14,841			13,762		12,310		9,306		7,515
Net earnings	$	25,633		23,863		20,777		15,869		12,148
Cash dividends declared	$	5,756		4,935		4,510		4,464		6,243
PER SHARE DATA: (1)
Basic earnings per common share	$	2.49		2.35		2.06		1.59		1.24
Diluted earnings per common share	$	2.49		2.35		2.06		1.59		1.24
Cash dividends	$	0.56		0.49		0.45		0.45		0.64
Book value	$	23.71		21.90		19.90		17.77		17.15
RATIOS:
Return on average stockholders’ equity	10.80		%	11.17	%	10.95	%	9.20	%	7.49	%
Return on average assets	1.21		%	1.23	%	1.15	%	0.93	%	75.00	%
Capital to assets	11.13		%	11.05	%	10.72	%	10.16	%	10.10	%
Dividends declared per share as percentage of basic earnings per share	22.49		%	20.77	%	21.82	%	28.30	%	51.52	%

(1) Per share data has been retroactively adjusted to reflect a 4 for 3 stock split which occurred effective March 30, 2016.

WILSON BANK HOLDING COMPANY

Consolidated Financial Statements

December 31, 2016 and 2015

(With Independent Auditor’s Report Thereon)

Stephen M. Maggart, CPA, ABV, CFF J. Mark Allen, CPA Michael T. Holland, CPA, ABV, CFF M. Todd Maggart, CPA, ABV, CFF Michael F. Murphy, CPA P. Jason Ricciardi, CPA, CGMA David B. von Dohlen, CPA T. Keith Wilson, CPA, CITP

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of

Wilson Bank Holding Company:

We have audited the accompanying consolidated balance sheets of Wilson Bank Holding Company and Subsidiary as of December 31, 2016 and 2015, and the related consolidated statements of earnings, comprehensive earnings, changes in stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 2016. We also have audited Wilson Bank Holding Company and Subsidiary’s internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Wilson Bank Holding Company’s management is responsible for these financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on these financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB) United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Wilson Bank Holding Company and Subsidiary as of December 31, 2016 and 2015, and the results of their operations and their cash flows for each of the years in the three year period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, Wilson Bank Holding Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2016, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

/s/ Maggart & Associates, P.C.

Nashville, Tennessee

February 24, 2017

150 FOURTH AVENUE, NORTH ▪ SUITE 2150 ▪ NASHVILLE, TENNESSEE 37219-2431 ▪ (615) 252-6100 ▪ Fax ▪ (615) 252-6105

www.maggartpc.com

WILSON BANK HOLDING COMPANY

Consolidated Balance Sheets

December 31, 2016 and 2015

	Dollars in thousands
	2016			2015
ASSETS
Loans, net of allowance for loan losses of $22,731 and $22,900, respectively	$	1,667,088		1,443,179
Securities:
Held-to-maturity, at amortized cost (market value $36,145 and $28,365, respectively)	36,624			28,195
Available-for-sale, at market (amortized cost $319,201 and $332,506, respectively)	312,585			331,128
Total securities	349,209			359,323
Loans held for sale	14,788			10,135
Federal funds sold	—			35,220
Restricted equity securities, at cost	3,012			3,012
Total earning assets	2,034,097			1,850,869
Cash and due from banks	47,918			74,033
Premises and equipment, net	44,414			42,100
Accrued interest receivable	6,104			5,244
Deferred income taxes	10,758			8,039
Other real estate	4,527			5,410
Bank owned life insurance	28,616			17,733
Goodwill	4,805			4,805
Other assets	16,812			13,371
Total assets	$	2,198,051		2,021,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	$	1,942,135		1,789,850
Securities sold under repurchase agreements	736			2,035
Accrued interest and other liabilities	10,560			6,281
Total liabilities	1,953,431			1,798,166
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	20,639			15,304
Additional paid-in capital	60,541			61,339
Retained earnings	167,523			147,646
Net unrealized losses on available-for-sale securities, net of taxes of $2,533 and $527, respectively	(4,083		)	(851	)
Total stockholders’ equity	244,620			223,438
COMMITMENTS AND CONTINGENCIES
Total liabilities and stockholders’ equity	$	2,198,051		2,021,604

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Consolidated Statements of Earnings

Three Years Ended December 31, 2016

	Dollars In Thousands (except per share data)
	2016			2015		2014
Interest income:
Interest and fees on loans	$	77,024		71,543		66,685
Interest and dividends on securities:
Taxable securities	5,714			5,868		6,464
Exempt from Federal income taxes	1,191			768		679
Interest on loans held for sale	391			385		263
Interest on Federal funds sold	304			154		167
Interest and dividends on restricted equity securities	122			121		122
Total interest income	84,746			78,839		74,380
Interest expense:
Interest on negotiable order of withdrawal accounts	1,371			1,515		1,587
Interest on money market accounts and other savings accounts	1,915			1,906		2,366
Interest on certificates of deposit and individual retirement accounts	4,978			5,179		5,791
Interest on securities sold under repurchase agreements	3			7		23
Interest on Federal funds purchased	17			1		1
Total interest expense	8,284			8,608		9,768
Net interest income before provision for loan losses	76,462			70,231		64,612
Provision for loan losses	379			388		498
Net interest income after provision for loan losses	76,083			69,843		64,114
Non-interest income	21,728			19,941		16,678
Non-interest expense	(57,337		)	(52,159	)	(47,705	)
Earnings before income taxes	40,474			37,625		33,087
Income taxes	14,841			13,762		12,310
Net earnings	$	25,633		23,863		20,777
Basic earnings per common share	$	2.49		2.35		2.06
Diluted earnings per common share	$	2.49		2.35		2.06
Weighted average common shares outstanding:
Basic	10,279,332			10,165,477		10,062,783
Diluted	10,284,328			10,170,180		10,068,640

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Consolidated Statements of Comprehensive Earnings

Three Years Ended December 31, 2016

	Dollars In Thousands
	2016			2015		2014
Net earnings	$	25,633		23,863		20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively	(2,948		)	(58	)	3,953
Reclassification adjustment for net gains included in net earnings, net of taxes of $176, $71, and $209, respectively	(284		)	(114	)	(336	)
Other comprehensive earnings (losses)	(3,232		)	(172	)	3,617
Comprehensive earnings	$	22,401		23,691		24,394

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Consolidated Statements of Changes in Stockholders’ Equity

Three Years Ended December 31, 2016

	Dollars In Thousands
	Common Stock			Additional Paid-In Capital		Retained Earnings		Net Unrealized Gain (Loss) On Available-For-Sale Securities		Total
Balance December 31, 2013	$	14,997		54,519		112,451		(4,296	)	177,671
Cash dividends declared, $.45 per share	—			—		(4,510	)	—		(4,510	)
Issuance of 69,289 shares of stock pursuant to dividend reinvestment plan	139			3,065		—		—		3,204
Issuance of 6,144 shares of stock pursuant to exercise of stock options	12			174		—		—		186
Share based compensation expense	—			41		—		—		41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245	—			—		—		3,617		3,617
Repurchase of 2,053 common shares	(4		)	(90	)	—		—		(94	)
Net earnings for the year	—			—		20,777		—		20,777
Balance December 31, 2014	15,144			57,709		128,718		(679	)	200,892
Cash dividends declared, $.49 per share	—			—		(4,935	)	—		(4,935	)
Issuance of 72,543 shares of stock pursuant to dividend reinvestment plan	145			3,366		—		—		3,511
Issuance of 7,633 shares of stock pursuant to exercise of stock options	15			226		—		—		241
Share based compensation expense	—			38		—		—		38
Net change in fair value of available-for-sale securities during the year, net of taxes of $106	—			—		—		(172	)	(172	)
Net earnings for the year	—			—		23,863		—		23,863
Balance December 31, 2015	15,304			61,339		147,646		(851	)	223,438
Cash dividends declared, $.56 per share	—			—		(5,756	)	—		(5,756	)
Issuance of 98,318 shares of stock pursuant to dividend reinvestment plan	197			4,119		—		—		4,316
Issuance of 5,120 shares of stock pursuant to exercise of stock options	10			142		—		—		152
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split	5,128			(5,128	)	—		—		—
Share based compensation expense	—			69		—		—		69
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,006	—			—		—		(3,232	)	(3,232	)
Net earnings for the year	—			—		25,633		—		25,633
Balance December 31, 2016	$	20,639		60,541		167,523		(4,083	)	244,620

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Consolidated Statements of Cash Flows

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars In Thousands
	2016			2015		2014
Cash flows from operating activities:
Interest received	$	86,641		81,054		75,937
Fees and other income received	16,029			15,346		13,269
Proceeds from sales of loans	160,816			157,261		105,414
Origination of loans held for sale	(161,114		)	(153,882	)	(105,078	)
Interest paid	(8,278		)	(8,728	)	(9,964	)
Cash paid to suppliers and employees	(53,454		)	(51,474	)	(45,890	)
Income taxes paid	(13,837		)	(13,937	)	(12,277	)
Net cash provided by operating activities	26,803			25,640		21,411
Cash flows from investing activities:
Purchase of available-for-sale securities	(181,285		)	(125,000	)	(171,497	)
Proceeds from calls, maturities and paydowns of available-for-sale securities	102,596			95,620		86,946
Proceeds from sale of available-for-sale securities	90,007			42,845		72,215
Purchase of held-to-maturity securities	(11,479		)	(4,413	)	(3,610	)
Proceeds from maturities and paydowns of held-to-maturity securities	2,742			4,079		2,049
Loans made to customers, net of repayments	(223,950		)	(114,456	)	(144,410	)
Purchase of bank owned life insurance and annuity contracts	(11,916		)	(8,464	)	(5,565	)
Purchase of bank premises and equipment	(5,147		)	(4,612	)	(4,145	)
Proceeds from sale of other assets	15			12		4
Proceeds from sale of other real estate	581			3,000		3,945
Net cash used in investing activities	(237,836		)	(111,389	)	(164,068	)
Cash flows from financing activities:
Net increase in non-interest bearing, savings, NOW and money market deposit accounts	158,775			160,760		147,458
Net decrease in time deposits	(6,490		)	(31,180	)	(41,443	)
Net decrease in securities sold under agreements to repurchase	(1,299		)	(1,402	)	(5,641	)
Dividends paid	(5,756		)	(4,935	)	(4,510	)
Proceeds from sale of common stock pursuant to dividend reinvestment	4,316			3,511		3,204
Proceeds from sale of common stock pursuant to exercise of stock options	152			241		186
Repurchase of common shares	—			—		(94	)
Net cash provided by financing activities	149,698			126,995		99,160
Net increase (decrease) in cash and cash equivalents	(61,335		)	41,246		(43,497	)
Cash and cash equivalents at beginning of year	109,253			68,007		111,504
Cash and cash equivalents at end of year	$	47,918		109,253		68,007

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Consolidated Statements of Cash Flows, Continued

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars In Thousands
	2016			2015		2014
Reconciliation of net earnings to net cash provided by operating activities:
Net earnings	$	25,633		23,863		20,777
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, amortization and accretion	5,515			4,578		4,162
Provision for loan losses	379			388		498
Share based compensation expense	69			38		41
Provision for deferred tax expense (benefit)	(164		)	1,238		634
Gains on sales of other real estate, net	(52		)	(362	)	(77	)
Loss on sales of other assets	1			2		6
Loss (gain) on sale of premises and equipment	73			53		(7	)
Security gains	(460		)	(185	)	(545	)
Increase in loans held for sale	(4,653		)	(669	)	(2,444	)
Increase (decrease) in taxes payable	1,168			(1,413	)	(601	)
Increase in other assets, bank owned life insurance and annuity contract earnings	(2,408		)	(1,161	)	(1,297	)
Decrease (increase) in accrued interest receivable	(860		)	219		(400	)
Increase (decrease) in interest payable	6			(120	)	(196	)
Increase (decrease) in other liabilities	2,556			(829	)	860
Total adjustments	1,170			1,777		634
Net cash provided by operating activities	$	26,803		25,640		21,411
Supplemental Schedule of Non-Cash Activities:
Unrealized gain (loss) in value of securities available-for-sale, net of taxes of $2,006 in 2016, $106 in 2015, and $2,245 in 2014	$	(3,232	)	(172	)	3,617
Non-cash transfers from loans to other real estate	$	696		1,930		799
Non-cash transfers from other real estate to loans	$	1,050		1,180		2,502
Non-cash transfers from loans to other assets	$	16		4		17

See accompanying notes to consolidated financial statements.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements

December 31, 2016, 2015 and 2014

(1) Summary of Significant Accounting Policies

The accounting and reporting policies of Wilson Bank Holding Company (“the Company”) and Wilson Bank & Trust (“Wilson Bank”) are in accordance with accounting principles generally accepted in the United States of America (“U.S.”) and conform to general practices within the banking industry. The following is a brief summary of the significant policies.

(a) Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Wilson Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

(b) Nature of Operations

Wilson Bank operates under a state bank charter and provides full banking services. As a state-chartered bank that is not a member of the Federal Reserve, Wilson Bank is subject to regulations of the Tennessee Department of Financial Institutions and the Federal Deposit Insurance Corporation (“FDIC”). The areas served by Wilson Bank include Wilson County, DeKalb County, Rutherford County, Smith County, Trousdale County, Putnam County, Sumner County, and eastern Davidson County, Tennessee and surrounding counties in Middle Tennessee. Services are provided at the main office and twenty-five branch locations.

(c) Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets and other real estate, other-than-temporary impairments of securities, and the fair value of financial instruments.

(d) Significant Group Concentrations of Credit Risk

Most of the Company’s activities are with customers located within Middle Tennessee. The types of securities in which the Company invests are described in note 3. The types of lending in which the Company engages are described in note 2. The Company does not have any significant concentrations to any one industry or customer other than as disclosed in note 2.

Residential 1-4 family, commercial real estate and construction mortgage loans, represented 22%, 42% and 20% and 24%, 43% and 19% of the loan portfolio at December 31, 2016 and 2015, respectively.

(e) Loans

The Company grants mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout Middle Tennessee. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans, and premiums or discounts on purchased loans.

Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized on a straight line basis over the respective term of the loan.

As part of our routine credit monitoring process, the Company performs regular credit reviews of the loan portfolio and loans receive risk ratings by the assigned credit officer, which are subject to validation by our independent loan review department. Risk ratings are categorized as pass, special mention, substandard or doubtful. The Company believes that our categories follow those outlined by our primary regulator.

Generally the accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than when they become 180 days past due. Past due status is based on contractual terms

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

(f) Allowance for Loan Losses

Management provides for loan losses by establishing an allowance. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s quarterly review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

In assessing the adequacy of the allowance, we also consider the results of our ongoing independent loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, independent loan reviewers, and reviews that may have been conducted by third-party reviewers. We incorporate relevant loan review results in the loan impairment determination. In addition, regulatory agencies, as an integral part of their examination process, will periodically review the Company’s allowance for loan losses and may require the Company to record adjustments to the allowance based on their judgment about information available to them at the time of their examinations.

In addition to the independent loan review process, the aforementioned risk ratings are subject to continual review by loan officers to determine that the appropriate risk ratings are being utilized in our allowance for loan loss process. Each risk rating is also subject to review by our independent loan review department. Currently, our independent loan review department targets reviews of 100% of existing loan relationships with aggregate debt of $1.0 million and greater and new loans with aggregate debt of $500,000 and greater. In addition, our independent loan review targets portfolio segments, loans assigned to a particular lending officer, and loans with four or more renewals.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are individually classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience, historical loan loss factors, loss experience of various loan segments, and other adjustments based on management’s assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial, mortgage and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(g) Debt and Equity Securities

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value based on available market prices, with unrealized gains and losses excluded from earnings and reported in other comprehensive income on an after-tax basis. Securities classified as “available for sale” are held for indefinite periods of time and may be sold in response to movements in market interest rates, changes in the maturity or mix of Company assets and liabilities or demand for liquidity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Other-than-temporary Impairment—Impaired securities are assessed quarterly for the presence of other-than-temporary impairment (“OTTI”). A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether OTTI has occurred, management considers factors such as (1) length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospectus of the issuer, and (3) Wilson Bank’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. If management deems a security to be OTTI, management reviews the present value of the future cash flows associated with the security. A shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. If management concludes that no credit loss exists and it is not “more-likely-than-not” that it will be required to sell the security before the recovery of the security’s cost basis, then the security is not deemed OTTI and the shortfall is recorded as a component of equity.

No securities have been classified as trading securities.

(h) Federal Home Loan Bank Stock

The Company, as a member of the Federal Home Loan Bank (“FHLB”) Cincinnati system, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at par value, which approximates its fair value. Management reviews the investment for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2016, the minimum required investment was approximately $2.4 million. Stock redemptions are at the discretion of the FHLB.

(i) Loans Held for Sale

Mortgage loans held-for-sale are carried at fair value. The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

(j) Premises and Equipment

Premises and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the related assets. Gains or losses realized on items retired and otherwise disposed of are credited or charged to operations and cost and related accumulated depreciation are removed from the asset and accumulated depreciation accounts.

Expenditures for major renovations and improvements of premises and equipment are capitalized and those for maintenance and repairs are charged to earnings as incurred.

(k) Other Real Estate

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less the estimated cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to their acquisition by the Company, valuations of these assets are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance [i.e. any direct write-downs] are included in net expenses from foreclosed assets.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(l) Intangible Assets

The Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 350, Goodwill and Other Intangible Assets requires that management determine the allocation of intangible assets into identifiable groups at the date of acquisition and that appropriate amortization periods be established. Under the provisions of FASB ASC 350, goodwill is not to be amortized; rather, it is to be monitored for impairment and written down to the impairment value at the time impairment occurs. The Company has determined that no impairment loss needs to be recognized related to its goodwill.

(m) Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and Federal funds sold. Generally, Federal funds sold are purchased and sold for one day periods. Management makes deposits only with financial institutions it considers to be financially sound.

(n) Long-Term Assets

Premises and equipment, intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

(o) Securities Sold Under Agreements to Repurchase

Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by Federal deposit insurance.

(p) Income Taxes

The Company accounts for Income Taxes in accordance with income tax accounting guidance (FASB ASC 740, Income Taxes). The Company follows accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.

The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

(q) Equity-Based Incentives

Stock compensation accounting guidance (FASB ASC 718, “Compensation—Stock Compensation”) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, cash settled stock appreciation rights (SARs), and employee share purchase plans.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options and cash settled SARs.

(r) Advertising Costs

Advertising costs are expensed as incurred by the Company and totaled $2,310,000, $2,337,000 and $1,884,000 for 2016, 2015 and 2014, respectively.

(s) Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

(t) Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in note 20 of the consolidated financial statements. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.

(u) Reclassification

Certain reclassifications have been made to the 2015 and 2014 figures to conform to the presentation for 2016.

(v) Off-Balance-Sheet Financial Instruments

In the ordinary course of business, Wilson Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received.

(w) Stock Split

The Company's Board of Directors voted for a 4 for 3 stock split for stockholders of record as of March 24, 2016 payable March 30, 2016. Each stockholder received four (4) shares of common stock for each three (3) shares owned with no allowance for fractual shares. Per share data and stock options included in these financial statements has been restated to give effect to the stock split.

(x) Recently Adopted Accounting Pronouncements

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date" deferred the effective date of ASU 2014-09 by one year to January 1, 2018. We are currently evaluating the potential impact of ASU 2014-09 on our financial statements.

ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

ASU 2016-02,“Leases (Topic 842)” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

ASU 2016-09,“Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. We elected to adopt the provisions of ASU 2016-09 during the first quarter of 2016 in advance of the required application date of January 1, 2017.

ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements.

ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

There were no other recently issued accounting pronouncements that are expected to materially impact the Company.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(2) Loans and Allowance for Loan Losses

The classification of loans at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Mortgage loans on real estate:
Residential 1-4 family	$	376,872		349,631
Multifamily	79,908			49,564
Commercial	704,807			625,623
Construction	339,580			275,319
Farmland	37,519			32,114
Second mortgages	9,166			7,551
Equity lines of credit	56,005			46,506
Total mortgage loans on real estate	1,603,857			1,386,308
Commercial loans	37,677			30,537
Agriculture loans	1,562			1,552
Consumer installment loans:
Personal	41,117			40,196
Credit cards	3,157			3,271
Total consumer installment loans	44,274			43,467
Other loans	9,055			9,250
	1,696,425			1,471,114
Net deferred loan fees	(6,606		)	(5,035	)
Total loans	1,689,819			1,466,079
Less: Allowance for loan losses	(22,731		)	(22,900	)
Loans, net	$	1,667,088		1,443,179

At December 31, 2016, variable rate and fixed rate loans totaled $1,178,865,000 and $517,560,000, respectively. At December 31, 2015, variable rate and fixed rate loans totaled $970,428,000 and $500,686,000, respectively.

In the normal course of business, Wilson Bank has made loans at prevailing interest rates and terms to directors and executive officers of the Company and to their affiliates. The aggregate amount of these loans was $9,692,000 and $6,576,000 at December 31, 2016 and 2015, respectively. None of these loans were restructured, charged-off or involved more than the normal risk of collectibility or presented other unfavorable features during the three years ended December 31, 2016.

An analysis of the activity with respect to such loans to related parties is as follows:

	In Thousands
	December 31,
	2016			2015
Balance, January 1	$	6,576		11,744
New loans and renewals during the year	16,295			12,329
Repayments (including loans paid by renewal) during the year	(13,179		)	(17,497	)
Balance, December 31	$	9,692		6,576

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(2) Loans and Allowance for Loan Losses, Continued

Risk characteristics relevant to each portfolio segment are as follows:

Construction and land development: Loans for non-owner-occupied real estate construction or land development are generally repaid through cash flow related to the operation, sale or refinance of the property. The Company also finances construction loans for owner-occupied properties. A portion of the Company’s construction and land portfolio segment is comprised of loans secured by residential product types (residential land and single-family construction). With respect to construction loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, market sales activity, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

1-4 family residential real estate: Residential real estate loans represent loans to consumers or investors to finance a residence. These loans are typically financed on 15 to 30 year amortization terms, but generally with shorter maturities of 5 to 15 years. Many of these loans are extended to borrowers to finance their primary or secondary residence. Loans to an investor secured by a 1-4 family residence will be repaid from either the rental income from the property or from the sale of the property. This loan segment also includes closed-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home. Loans in this portfolio segment are underwritten and approved based on a number of credit quality criteria including limits on maximum Loan-to-Value (LTV), minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment.

1-4 family HELOC: This loan segment includes open-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home utilizing a revolving line of credit. These loans are underwritten and approved based on a number of credit quality criteria including limits on maximum LTV, minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. Because of the revolving nature of these loans, as well as the fact that many represent second mortgages, this portfolio segment can contain more risk than the amortizing 1-4 family residential real estate loans.

Multi-family and commercial real estate: Multi-family and commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate.

Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting the market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Non-owner occupied commercial real estate loans are

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

loans secured by multifamily and commercial properties where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from

third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. These loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail properties. Owner-occupied commercial real estate loans are loans where the primary source of repayment is the cash flow from the ongoing operations and business activities conducted by the party, or affiliate of the party, who owns the property.

Commercial and industrial: The commercial and industrial loan portfolio segment includes commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and usually incorporates a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer: The consumer loan portfolio segment includes non-real estate secured direct loans to consumers for household, family, and other personal expenditures. Consumer loans may be secured or unsecured and are usually structured with short or medium term maturities. These loans are underwritten and approved based on a number of consumer credit quality criteria including limits on maximum LTV on secured consumer loans, minimum credit scores, and maximum debt to income. Many traditional forms of consumer installment credit have standard monthly payments and fixed repayment schedules of one to five years. These loans are made with either fixed or variable interest rates that are based on specific indices. Installment loans fill a variety of needs, such as financing the purchase of an automobile, a boat, a recreational vehicle or other large personal items, or for consolidating debt. These loans may be unsecured or secured by an assignment of title, as in an automobile loan, or by money in a bank account. In addition to consumer installment loans, this portfolio segment also includes secured and unsecured personal lines of credit as well as overdraft protection lines. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures.

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310), when based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Substantially all of the Company’s impaired loans are collateral dependent.

The following tables, present the Company’s impaired loans at December 31, 2016 and 2015:

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With no related allowance recorded:
Residential 1-4 family	$	150	148	—	150	7
Multifamily	—		—	—	—	—
Commercial real estate	4,248		4,246	—	4,352	38
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	6,125	6,115	—	6,359	132

	In Thousands
	Record Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With allowance recorded:
Residential 1-4 family	$	540	531	196	540	32
Multifamily	—		—	—	—	—
Commercial real estate	443		443	120	111	5
Construction	—		—	—	—	—
Farmland	—		—	—	—	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	983	974	316	651	37

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
Total:
Residential 1-4 family	$	690	679	196	690	39
Multifamily	—		—	—	—	—
Commercial real estate	4,691		4,689	120	4,463	43
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,108	7,089	316	7,010	169

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With no related allowance recorded:
Residential 1-4 family	$	633	622	—	724	39
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	5,048	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	431	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,796	7,778	—	6,689	160

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With allowance recorded:
Residential 1-4 family	$	834	827	194	785	47
Multifamily	—		—	—	—	—
Commercial real estate	—		—	—	3,419	—
Construction	—		—	—	—	—
Farmland	—		—	—	144	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	834	827	194	4,348	47
December 31, 2015
Total:
Residential 1-4 family	$	1,467	1,449	194	1,509	86
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	8,467	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	575	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	8,630	8,605	194	11,037	207

The following tables present the Company’s nonaccrual loans, credit quality indicators and past due loans as of December 31, 2016 and 2015.

Loans on Nonaccrual Status

	In Thousands
	2016		2015
Residential 1-4 family	$	—	41
Multifamily	—		—
Commercial real estate	3,255		4,293
Construction	—		—
Farmland	310		575
Second mortgages	—		—
Equity lines of credit	—		—
Commercial	—		—
Agricultural, installment and other	—		—
Total	$	3,565	4,909

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

The amount of interest income that would have been recognized for the years ended December 31, 2016 and 2015 amounted to $202,000 and $291,000, respectively, if the above nonaccrual loans had been current.

Potential problem loans, which include nonperforming loans, amounted to approximately $16.2 million at December 31, 2016 compared to $25.2 million at December 31, 2015. Potential problem loans represent those loans with a well defined weakness and where information about possible credit problems of borrowers has caused management to have serious doubts about the borrower’s ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by the FDIC, the Company’s primary federal regulator, for loans classified as special mention, substandard, or doubtful, excluding the impact of nonperforming loans.

The following table presents our loan balances by primary loan classification and the amount classified within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard and doubtful which are defined as follows:

• Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

• Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

• Doubtful loans have all the characteristics of substandard loans with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Company considers all doubtful loans to be impaired and places the loans on nonaccrual status.

Credit Quality Indicators

	In Thousands
	Residential 1-4 Family		Multifamily	Commercial Real Estate	Construction	Farmland	Second Mortgages	Equity Lines of Credit	Commercial	Agricultural, Installment and Other	Total
Credit Risk Profile by Internally Assigned Grade
December 31, 2016
Pass	$	367,987	79,908	699,314	339,354	36,675	8,748	55,850	37,677	54,754	1,680,267
Special mention	5,616		—	668	121	147	303	—	—	26	6,881
Substandard	3,269		—	4,825	105	697	115	155	—	111	9,277
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	376,872	79,908	704,807	339,580	37,519	9,166	56,005	37,677	54,891	1,696,425
December 31, 2015
Pass	$	340,019	49,564	612,318	274,926	30,933	7,097	46,361	30,525	54,154	1,445,897
Special mention	6,957		—	8,227	277	200	353	—	10	38	16,062
Substandard	2,655		—	5,078	116	981	101	145	2	77	9,155
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	349,631	49,564	625,623	275,319	32,114	7,551	46,506	30,537	54,269	1,471,114

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

Age Analysis of Past Due Loans

	In Thousands
	30-59 Days Past Due		60-89 Days Past Due	Nonaccrual and Greater Than 90 Days	Total Nonaccrual and Past Due	Current	Total Loans	Recorded Investment Greater Than 90 Days and Accruing
December 31, 2016
Residential 1-4 family	$	3,311	1,307	1,434	6,052	370,820	376,872	1,434
Multifamily	—		—	—	—	79,908	79,908	—
Commercial real estate	41		175	3,335	3,551	701,256	704,807	80
Construction	1,872		53	22	1,947	337,633	339,580	22
Farmland	56		1,163	410	1,629	35,890	37,519	100
Second mortgages	177		—	11	188	8,978	9,166	11
Equity lines of credit	40		148	17	205	55,800	56,005	17
Commercial	37		4	—	41	37,636	37,677	—
Agricultural, installment and other	385		85	143	613	54,278	54,891	143
Total	$	5,919	2,935	5,372	14,226	1,682,199	1,696,425	1,807
December 31, 2015
Residential 1-4 family	$	3,272	1,198	1,412	5,882	343,749	349,631	1,371
Multifamily	—		—	—	—	49,564	49,564	—
Commercial real estate	172		—	4,293	4,465	621,158	625,623	—
Construction	958		230	—	1,188	274,131	275,319	—
Farmland	88		21	886	995	31,119	32,114	311
Second mortgages	87		—	4	91	7,460	7,551	4
Equity lines of credit	283		89	197	569	45,937	46,506	197
Commercial	2		—	39	41	30,496	30,537	39
Agricultural, installment and other	382		114	56	552	53,717	54,269	56
Total	$	5,244	1,652	6,887	13,783	1,457,331	1,471,114	1,978

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

Transactions in the allowance for loan losses for the years ended December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland	Second Mortgages	Equity Lines of Credit	Commercial		Agricultural, Installment and Other		Total
December 31, 2016
Allowance for loan losses:
Beginning balance	$	5,024		619	9,986		5,136		654	106	594	301		480		22,900
Provision	(400		)	220	(399	)	283		2	2	66	81		524		379
Charge-offs	(109		)	—	(100	)	(66	)	—	—	—	(11	)	(674	)	(960	)
Recoveries	56			—	54		34		2	4	15	15		232		412
Ending balance	$	4,571		839	9,541		5,387		658	112	675	386		562		22,731
Ending balance individually evaluated for impairment	$	196		—	120		—		—	—	—	—		—		316
Ending balance collectively evaluated for impairment	$	4,375		839	9,421		5,387		658	112	675	386		562		22,415
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—
Loans:
Ending balance	$	376,872		79,908	704,807		339,580		37,519	9,166	56,005	37,677		54,891		1,696,425
Ending balance individually evaluated for impairment	$	679		—	4,689		1,618		103	—	—	—		—		7,089
Ending balance collectively evaluated for impairment	$	376,193		79,908	700,118		337,962		37,416	9,166	56,005	37,677		54,891		1,689,336
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland		Second Mortgages		Equity Lines of Credit		Commercial	Agricultural, Installment and Other		Total
December 31, 2015
Allowance for loan losses:
Beginning balance	$	5,582		172	9,578		5,578		795		61		304		176	326		22,572
Provision	(290		)	447	(267	)	(455	)	(142	)	87		303		118	587		388
Charge-offs	(311		)	—	(44	)	(26	)	—		(45	)	(14	)	—	(664	)	(1,104	)
Recoveries	43			—	719		39		1		3		1		7	231		1,044
Ending balance	$	5,024		619	9,986		5,136		654		106		594		301	480		22,900
Ending balance individually evaluated for impairment	$	194		—	—		—		—		—		—		—	—		194
Ending balance collectively evaluated for impairment	$	4,830		619	9,986		5,136		654		106		594		301	480		22,706
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—
Loans:
Ending balance	$	349,631		49,564	625,623		275,319		32,114		7,551		46,506		30,537	54,269		1,471,114
Ending balance individually evaluated for impairment	$	1,449		—	4,643		1,938		575		—		—		—	—		8,605
Ending balance collectively evaluated for impairment	$	348,182		49,564	620,980		273,381		31,539		7,551		46,506		30,537	54,269		1,462,509
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—

The Company’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. The concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

The following table summarizes the carrying balances of TDRs at December 31, 2016 and December 31, 2015 (dollars in thousands):

	2016		2015
Performing TDRs	$	3,277	983
Nonperforming TDRs	1,319		3,121
Total TDRs	$	4,596	4,104

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

The following table outlines the amount of each troubled debt restructuring categorized by loan classification for the years ended December 31, 2016 and 2015 (dollars in thousands):

	December 31, 2016			December 31, 2015
	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance
Residential 1-4 family	4	130	130	2	77	77
Multifamily	—	—	—	—	—	—
Commercial real estate	2	1,364	1,244	—	—	—
Construction	—	—	—	1	1,938	1,938
Farmland	1	103	103	—	—	—
Second mortgages	—	—	—	—	—	—
Equity lines of credit	—	—	—	—	—	—
Commercial	—	—	—	—	—	—
Agricultural, installment and other	2	17	17	1	2	1
Total	9	1,614	1,494	4	2,017	2,016

As of December 31, 2016 the Company did not have any loans previously classified as troubled debt restructurings default within twelve months of the restructuring. As of December 31, 2015 the Company had two loans totaling $1,060,000 previously classified as troubled debt restructurings default within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable’s contract.

The Company’s principal customers are primarily in the Middle Tennessee area with a concentration in Wilson County, Tennessee. Credit is extended to businesses and individuals and is evidenced by promissory notes. The terms and conditions of the loans including collateral vary depending upon the purpose of the credit and the borrower’s financial condition.

In 2016, 2015 and 2014, the Company originated loans in the secondary market of $161,114,000, $153,882,000 and $105,078,000, respectively. The fees and gain on sale of these loans totaled $4,355,000, $4,048,000 and $2,780,000 in 2016, 2015 and 2014, respectively. The Company sells loans to third-party investors on a loan-by-loan basis and has not entered into any forward commitments with investors for future bulk sales. All of these loan sales transfer servicing rights to the buyer.

In some instances Wilson Bank sells loans that contain provisions which permit the borrower to seek recourse against Wilson Bank in certain circumstances. At December 31, 2016 and 2015, total loans sold with recourse in the secondary market aggregated $124,480,000 and $111,521,000, respectively. At December 31, 2016, Wilson Bank has not been required to repurchase a significant amount of the loans originated by Wilson Bank and sold in the secondary market. Management expects no material losses to result from these recourse provisions.

(3) Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at December 31, 2016 consist of the following:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	11,856	48	230	11,674
Obligations of states and political subdivisions	24,768		142	439	24,471
	$	36,624	190	669	36,145

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	61,879	—	2,391	59,488
Mortgage-backed:
GSE residential	166,316		496	2,447	164,365
Asset-backed:
SBAP	37,577		9	729	36,857
Obligations of states and political subdivisions	53,429		52	1,606	51,875
	$	319,201	557	7,173	312,585

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

The Company’s classification of securities at December 31, 2015 is as follows:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	9,375	60	169	9,266
Obligations of states and political subdivisions	18,820		288	9	19,099
	$	28,195	348	178	28,365

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	77,177	215	483	76,909
Mortgage-backed:
GSE residential	192,983		430	1,498	191,915
Asset-backed:
SBAP	31,253		54	273	31,034
Obligations of states and political subdivisions	31,093		274	97	31,270
	$	332,506	973	2,351	331,128

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

Included in mortgage-backed GSE residential available-for-sale securities are collateralized mortgage obligations totaling $16,015,000 (fair value of $15,814,000) and $14,269,000 (fair value of $14,168,000) at December 31, 2016 and 2015, respectively.

The amortized cost and estimated market value of debt securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In Thousands
Securities Held-To-Maturity	Amortized Cost		Estimated Market Value
Due in one year or less	$	2,003	2,013
Due after one year through five years	10,122		10,151
Due after five years through ten years	8,307		8,124
Due after ten years	4,336		4,183
	24,768		24,471
Mortgage-backed securities	11,856		11,674
	$	36,624	36,145

	In Thousands
Securities Available-For-Sale	Amortized Cost		Estimated Market Value
Due in one year or less	$	—	—
Due after one year through five years	16,932		16,749
Due after five years through ten years	72,882		70,589
Due after ten years	25,494		24,025
	115,308		111,363
Mortgage and asset-backed securities	203,893		201,222
	$	319,201	312,585

Results from sales of debt and equity securities are as follows:

	In Thousands
	2016			2015		2014
Gross proceeds	$	90,007		42,845		72,215
Gross realized gains	$	716		261		$	638
Gross realized losses	(256		)	(76	)	(93		)
Net realized gains	$	460		185		$	545

Securities carried in the balance sheet of approximately $196,397,000 (approximate market value of $192,484,000) and $163,674,000 (approximate market value of $162,905,000) were pledged to secure public deposits and for other purposes as required or permitted by law at December 31, 2016 and 2015, respectively.

Included in the securities above are $27,412,000 and $10,840,000 (approximate market value of $27,088,000 and $10,269,000) and $21,593,000 and $1,073,000 (approximate market value of $21,896,000 and $1,083,000) at December 31, 2016 and 2015, respectively, in obligations of political subdivisions located within the State of Tennessee and Texas, respectively. Management purchases only obligations of such political subdivisions it considers to be financially sound.

Securities that have rates that adjust prior to maturity totaled $50,991,000 (approximate market value of $51,132,000) and $40,023,000 (approximate market value of $40,009,000) at December 31, 2016 and 2015, respectively.

Temporarily Impaired Securities

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

Available-for-sale and held to maturity securities that have been in a continuous unrealized loss position at December 31, 2016 are as follows:

	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses
Held to Maturity Securities:
Debt securities:
Mortgage-backed:
GSE residential	$	8,177	$	151	7	$	1,704	$	79	1	$	9,881	$	230
Obligations of states and political subdivisions	16,081		439		41	—		—		—	16,081		439
	$	24,258	$	590	48	$	1,704	$	79	1	$	25,962	$	669
Available-for-Sale Securities:
Debt securities:
GSEs	$	59,488	$	2,391	23	$	—	$	—	—	$	59,488	$	2,391
Mortgage-backed:
GSE residential	124,011		2,350		64	6,918		97		9	130,929		2,447
Asset-backed:
SBAP	33,579		729		17	—		—		—	33,579		729
Obligations of states and political subdivisions	42,801		1,606		116	—		—		—	42,801		1,606
	$	259,879	$	7,076	220	$	6,918	$	97	9	$	266,797	$	7,173

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost.

Management has the ability and intent to hold the securities classified as held to maturity in the table above until they mature, at which time we will receive full value for the securities. Furthermore, as of December 31, 2016, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2016, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in our consolidated statements of earnings.

(4) Restricted Equity Securities

Restricted equity securities consists of stock of the FHLB of Cincinnati amounting to $3,012,000 at December 31, 2016 and 2015. The stock can be sold back only at par or a value as determined by the issuing institution and only to the respective financial institution or to another member institution. These securities are recorded at cost.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(5) Premises and Equipment

The detail of premises and equipment at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Land	$	17,022		17,022
Buildings	29,937			27,821
Leasehold improvements	368			140
Furniture and equipment	9,760			8,605
Automobiles	304			280
Construction-in-progress	2,851			2,091
	60,242			55,959
Less accumulated depreciation	(15,828		)	(13,859	)
	$	44,414		42,100

During 2016, 2015 and 2014 payments of $1,361,000, $1,222,000 and $1,176,000, respectively, were made to an entity owned by a director for the construction of buildings and minor repair work.

Depreciation expense was $2,760,000, $2,582,000 and $2,205,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

(6) Acquired Intangible Assets and Goodwill

The Company's intangible assets result from the excess of purchase price over the applicable book value of the net assets acquired related to outside ownership of two previously 50% owned subsidiaries that the Company acquired 100% of in 2005.

	In Thousands
	2016		2015
Goodwill:
Balance at January 1,	$	4,805	4,805
Goodwill acquired during year	—		—
Impairment loss	—		—
Balance at December 31,	$	4,805	4,805

(7) Deposits

Deposits at December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	2016		2015
Demand deposits	$	226,971	197,062
Savings accounts	123,749		107,829
Negotiable order of withdrawal accounts	454,487		445,967
Money market demand accounts	628,321		523,895
Certificates of deposit $250,000 or greater	64,938		64,236
Other certificates of deposit	360,871		364,274
Individual retirement accounts $250,000 or greater	8,417		9,074
Other individual retirement accounts	74,381		77,513
	$	1,942,135	1,789,850

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

Principal maturities of certificates of deposit and individual retirement accounts at December 31, 2016 are as follows:

	(In Thousands)
Maturity	Total
2017	$	246,092
2018	131,358
2019	76,942
2020	34,783
2021	19,432
Thereafter	—
	$	508,607

The aggregate amount of overdrafts reclassified as loans receivable was $481,000 and $303,000 at December 31, 2016 and 2015, respectively.

As of December 31, 2016 and 2015, Wilson Bank was not required to maintain a cash balance with the Federal Reserve.

(8) Securities Sold Under Repurchase Agreements

Securities sold under repurchase agreements were $736,000 and $2,035,000 at December 31, 2016 and 2015, respectively. The maximum amounts of outstanding repurchase agreements at any month end during 2016 and 2015 were $2,070,000 and $3,514,000, respectively. The average daily balance outstanding during 2016 and 2015 was $1,214,000 and $2,505,000, respectively. The weighted-average interest rate on the outstanding balance at December 31, 2016 and 2015 was .25% . The underlying securities are typically held by other financial institutions and are designated as pledged.

(9) Non-Interest Income and Non-Interest Expense

The significant components of non-interest income and non-interest expense for the years ended December 31, 2016, 2015 and 2014 are presented below:

	In Thousands
	2016		2015	2014
Non-interest income:
Service charges on deposits	$	5,769	5,148	4,374
Other fees and commissions	10,260		9,321	8,519
BOLI and annuity earnings	832		877	376
Security gains, net	460		185	545
Fees and gains on sales of loans	4,355		4,048	2,780
Gain on sale of other real estate, net	52		362	77
Gain on sale of fixed assets, net	—		—	7
	$	21,728	19,941	16,678

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	In Thousands
	2016		2015	2014
Non-interest expense:
Employee salaries and benefits	$	34,106	31,556	27,793
Occupancy expenses	3,638		3,444	3,100
Furniture and equipment expenses	2,019		2,063	1,767
Loss on the sale of fixed assets, net	73		53	—
Loss on sales of other assets, net	1		2	6
Data processing expenses	2,576		2,476	2,313
FDIC insurance	968		953	1,049
Directors’ fees	691		735	720
Other operating expenses	13,265		10,877	10,957
	$	57,337	52,159	47,705

(10) Income Taxes

The components of the net deferred tax asset are as follows:

	In Thousands
	2016			2015
Deferred tax asset:
Federal	$	11,316		8,954
State	1,863			1,380
	13,179			10,334
Deferred tax liability:
Federal	(2,010		)	(1,905	)
State	(411		)	(390	)
	(2,421		)	(2,295	)
Net deferred tax asset	$	10,758		8,039

The tax effects of each type of significant item that gave rise to deferred tax assets (liabilities) are:

	In Thousands
	2016			2015
Financial statement allowance for loan losses in excess of tax allowance	$	8,252		8,317
Excess of depreciation deducted for tax purposes over the amounts deducted in the financial statements	(1,941		)	(1,815	)
Financial statement deduction for deferred compensation in excess of deduction for tax purposes	1,423			1,174
Writedown of other real estate not deductible for income tax purposes until sold	287			162
Financial statement income on FHLB stock dividends not recognized for tax purposes	(480		)	(480	)
Unrealized loss on securities available-for-sale	2,533			528
Other items, net	684			153
	$	10,758		8,039

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

The components of income tax expense (benefit) are summarized as follows:

	In Thousands
	Federal			State		Total
2016
Current	$	12,910		2,095		15,005
Deferred	(136		)	(28	)	(164	)
Total	$	12,774		2,067		14,841
2015
Current	$	10,871		1,653		12,524
Deferred	1,028			210		1,238
Total	$	11,899		1,863		13,762
2014
Current	$	10,201		1,475		11,676
Deferred	526			108		634
Total	$	10,727		1,583		12,310

A reconciliation of actual income tax expense of $14,841,000, $13,762,000 and $12,310,000 for the years ended December 31, 2016, 2015 and 2014, respectively, to the “expected” tax expense (computed by applying the statutory rate of 34% to earnings before income taxes) is as follows:

	In Thousands
	2016			2015		2014
Computed “expected” tax expense	$	13,761		12,793		11,250
State income taxes, net of Federal income tax benefit	1,364			1,243		1,029
Tax exempt interest, net of interest expense exclusion	(401		)	(266	)	(244	)
Federal income tax rate in excess of statutory rate related to taxable income over $10 million	370			312		290
Earnings on cash surrender value of life insurance	(283		)	(298	)	(128	)
Expenses not deductible for tax purposes	40			35		37
Stock based compensation expense	35			13		14
Other	(45		)	(70	)	62
	$	14,841		13,762		12,310

Total income tax expense for 2016, 2015 and 2014, includes $176,000, $71,000 and $209,000 of expense related to the realized gain and loss, respectively, on sale of securities.

As of December 31, 2016, 2015 and 2014 the Company has not accrued or recognized interest or penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense.

There were no unrecognized tax benefits at December 31, 2016.

Wilson Bank does not expect that unrecognized tax benefits will significantly increase or decrease within the next 12 months. Included in the balance at December 31, 2016, were approximately $13.2 million of tax positions (deferred tax assets) for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

The Company and Wilson Bank file income tax returns in the United States (“U.S.”), as well as in the State of Tennessee. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2012. The Company’s Federal tax returns have been audited through December 31, 2004 with no changes.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(11) Commitments and Contingent Liabilities

The Company is party to litigation and claims arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company's consolidated financial position.

Wilson Bank leases land for certain branch facilities and automatic teller machine locations. Future minimum rental payments required under the terms of the noncancellable leases are as follows:

Years Ending December 31,	In Thousands
2017	$	244
2018	218
2019	222
2020	228
2021	163

Total rent expense amounted to $204,000, $192,000 and $133,000, respectively, during the years ended December 31, 2016, 2015 and 2014.

The Company has lines of credit with other financial institutions totaling $53,000,000 at December 31, 2016 and 2015. At December 31, 2016 and 2015, respectively, there was no balance outstanding under these lines of credit.

The Company also has a Cash Management Advance ("CMA") Line of Credit agreement. The CMA is a component of the Company's Blanket Agreement for advances with the FHLB. The purpose of the CMA is to assist with short-term liquidity management. Under the terms of the CMA, the Company may borrow a maximum of $25,000,000, selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. There were no borrowings outstanding under the CMA at December 31, 2016 or December 31, 2015.

(12) Financial Instruments with Off-Balance-Sheet Risk

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

	In Thousands
	Contract or Notional Amount
	2016		2015
Financial instruments whose contract amounts represent credit risk:
Unused commitments to extend credit	$	483,818	391,553
Standby letters of credit	50,660		36,631
Total	$	534,478	428,184

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. The Company evaluates each customer's credit-worthiness on a case-by-case basis. The amount of collateral, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral normally consists of real property.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most guarantees extend from one to two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments and the present creditworthiness of such counterparties. Such commitments have been made on terms which are competitive in the markets in which the Company operates; thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. The maximum potential amount of future payments that the Company could be required to make under the guarantees totaled $50.7 million at December 31, 2016.

(13) Concentration of Credit Risk

Practically all of the Company’s loans, commitments, and commercial and standby letters of credit have been granted to customers in the Company’s market area. Practically all such customers are depositors of Wilson Bank. The concentrations of credit by type of loan are set forth in note 2 to the consolidated financial statements.

At December 31, 2016, the Company’s cash and due from banks and federal funds sold included commercial bank deposits aggregating $704,000 in excess of the FDIC limit of $250,000 per depositor.

Federal funds sold were deposited with one bank.

(14) Employee Benefit Plan

Wilson Bank has in effect a 401(k) plan (the “401(k) Plan”) which covers eligible employees. To be eligible an employee must have obtained the age of 20.5. The provisions of the 401(k) Plan provide for both employee and employer contributions. For the years ended December 31, 2016, 2015 and 2014, Wilson Bank contributed $2,006,000, $1,840,000 and $1,734,000, respectively, to the 401(k) Plan.

(15) Dividend Reinvestment Plan

Under the terms of the Company’s dividend reinvestment plan (the “DRIP”) holders of common stock may elect to automatically reinvest cash dividends in additional shares of common stock. The Company may elect to sell original issue shares or to purchase shares in the open market for the account of participants. Original issue shares of 98,318 in 2016, 72,543 in 2015 and 69,289 in 2014 were sold to participants under the terms of the DRIP.

(16) Regulatory Matters and Restrictions on Dividends

The Company and Wilson Bank are subject to regulatory capital requirements administered by the FDIC, the Federal Reserve and the Tennessee Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Wilson Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Wilson Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Wilson Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2016 and 2015, that the Company and Wilson Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2016, the most recent notification from the FDIC categorized Wilson Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believes have changed Wilson Bank’s category. To be categorized as well capitalized for purposes of prompt corrective action regulations as of December 31, 2016 and 2015, an institution must have maintained minimum capital ratios as set forth in the following tables and not have been subject to a written agreement, order or directive to maintain a higher capital level. The Company’s and Wilson Bank’s actual capital amounts and ratios as of December 31, 2016 and 2015, are also presented in the table:

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2016
Total capital to risk weighted assets:
Consolidated	$	266,954	12.7	%	$	181,298	8.625	%	N/A		N/A
Wilson Bank	265,142		12.6		181,496		8.625		$	210,430	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		139,295		6.625		N/A		N/A
Wilson Bank	242,085		11.5		139,462		6.625		168,407		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		107,756		5.125		N/A		N/A
Wilson Bank	242,085		11.5		107,886		5.125		136,831		6.5
Tier 1 capital to average assets:
Consolidated	243,897		11.2		87,106		4.0		N/A		N/A
Wilson Bank	242,085		11.1		87,238		4.0		109,047		5.0

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2015
Total capital to risk weighted assets:
Consolidated	$	240,848	14.1	%	$	136,588	8.0	%	N/A		N/A
Wilson Bank	238,963		14.0		136,575		8.0		$	170,719	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		102,441		6.0		N/A		N/A
Wilson Bank	217,600		12.8		102,431		6.0		136,575		8.0
Common Equity Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		76,831		4.5		N/A		N/A
Wilson Bank	217,600		12.8		76,823		4.5		110,967		6.5
Tier 1 capital to average assets:
Consolidated	219,483		11.1		79,361		4.0		N/A		N/A
Wilson Bank	217,600		11.0		79,354		4.0		99,192		5.0

In July 2013, the Federal banking regulators, in response to the Statutory Requirements of The Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted new regulations implementing the Basel Capital Adequacy Accord (“Basel III”) and the related minimum capital ratios. The new capital requirements were effective beginning January 1, 2015 and include a new “Common Equity Tier I Ratio”, which has stricter rules as to what qualifies as Common Equity Tier I Capital. A summary of the changes to the Regulatory Capital Ratios are as follows:

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	Guideline in Effect At 12/31/2014				Basel III Requirements
	Minimum		Well Capitalized		Minimum		Well Capitalized
Common Equity Tier I Ratio (Common Equity to Risk Weighted Assets)	Not Applicable		Not Applicable		4.5	%	6.5	%
Tier I Capital to Risk Weighted Assets	4	%	6	%	6	%	8	%
Total Capital to Risk Weighted Assets	8	%	10	%	8	%	10	%
Tier I Leverage Ratio	4	%	5	%	4	%	5	%

The guidelines under Basel III establish a 2.5% capital conservation buffer requirement that is phased in over four years beginning January 1, 2016. The buffer is related to Risk Weighted Assets. In order to avoid limitations on capital distributions such as dividends and certain discretionary bonus payments to executive officers, a banking organization must maintain capital ratios above the minimum ratios including the buffer. The Basel III minimum requirements after giving effect to the buffer as of January 1, of each year are as follows:

	2016		2017		2018		2019
Common Equity Tier I Ratio	5.125	%	5.75	%	6.375	%	7.0	%
Tier I Capital to Risk Weighted Assets Ratio	6.625	%	7.25	%	7.875	%	8.5	%
Total Capital to Risk Weighted Assets Ratio	8.625	%	9.25	%	9.875	%	10.5	%

The requirements of Basel III also place additional restrictions on the inclusion of deferred tax assets and capitalized mortgage servicing rights as a percentage of Tier I Capital. In addition, the risk weights assigned to certain assets such as past due loans and certain real estate loans have been increased.

The requirements of Basel III allow banks and bank holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company and Wilson Bank have chosen to opt out of this requirement.

(17) Salary Deferral Plans

The Company provides its executive officers certain non-qualified pension benefits through an Executive Salary Continuation Plan ("the Plan") and Supplemental Executive Retirement Plan (SERP) Agreements ("SERP Agreements"). The Plan and SERP agreements were established by the Board of Directors to reward executive management for past performance and to provide additional incentive to retain the service of executive management. The Plan and SERP Agreements generally provide executives with benefits of a portion of their salary beginning at retirement through life. As a result, the Company has accrued a liability for future obligations under the Plan and SERP Agreements. At December 31, 2016 and 2015, the liability related to the Plan totaled $1,869,000 and $1,872,000, respectively. At December 31, 2016 and 2015 the liability related to the SERP Agreements totaled $1,846,000 and $1,161,000, respectively.

The Company has purchased life insurance policies to provide the benefits related to the Plan, which at December 31, 2016 and 2015 had a cash surrender value of $3,688,000 and $3,376,000, respectively, and a face value of insurance policies in force of $11,148,000 and $10,508,000, respectively. The life insurance policies remain the sole property of the Company and are payable to the Company.

The Company has also purchased Flexible Premium Indexed Deferred Annuity Contracts (“Annuity Contracts”) to provide benefits related to the SERP Agreements. The Annuity Contracts remain the sole property of the Company and are payable to the Company. At December 31, 2016 and 2015 the Annuity Contracts had a value of $10,804,000 and $8,939,000, respectively.

The Company has also purchased bank owned life insurance policies on its executive officers. The insurance policies remain the sole property of the Company and are payable to the Company. The cash surrender value of the life insurance contracts totaled $24,928,000 and $14,357,000 and the face amount of the insurance policies in force approximated $61,287,000 and $35,471,000 at December 31, 2016 and 2015, respectively.

(18) Stock Option Plan

In April 1999, the stockholders of the Company approved the Wilson Bank Holding Company 1999 Stock Option Plan (the “1999 Stock Option Plan”). The Stock Option Plan provides for the granting of stock options, and authorizes the issuance of common stock upon the exercise of such options, for up to 200,000 shares of common stock, to officers and other key

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

employees of the Company and its subsidiary. Furthermore, the Company and its subsidiary may reserve additional shares for issuance under the 1999 Stock Option Plan as needed in order that the aggregate number of shares that may be issued during the term of the 1999 Stock Option Plan is equal to five percent (5%) of the shares of common stock then issued and outstanding.

In April 2009, the Company’s shareholders approved the Wilson Bank Holding Company 2009 Stock Option Plan (the “2009 Stock Option Plan”). The 2009 Stock Option Plan was effective as of April 14, 2009 and replaces the 1999 Stock Option Plan which expired on April 13, 2009. Under the 2009 Stock Option Plan, awards may be in the form of options to acquire common stock of the Company. Subject to adjustment as provided by the terms of the 2009 Stock Option Plan, the maximum number of shares of common stock with respect to which awards may be granted under the 2009 Stock Option Plan is 100,000 shares. As of December 31, 2016, the Company has granted 49,400 options to employees pursuant to the 2009 Stock Option Plan.

Under the 2009 Stock Option Plan, stock option awards may be granted in the form of incentive stock options or nonstatutory stock options and are generally exercisable for up to ten years following the date such option awards are granted. Exercise prices of incentive stock options must be equal to or greater than 100% of the fair market value of the common stock on the grant date.

During the second quarter of 2016, the Company’s shareholders approved the Wilson Bank Holding Company 2016 Equity Incentive Plan, which authorizes awards of up to 750,000 shares of common stock. The 2016 Equity Incentive Plan was approved by the Board of Directors and effective as of January 25, 2016 and approved by the Company’s shareholders on April 12, 2016. The Board of Directors approved an amendment and restatement of the 2016 Equity Incentive Plan (as amended and restated the “2016 Equity Incentive Plan”) to make clear that directors who are not also employees of the Company may be awarded stock appreciation rights. The primary purpose of the 2016 Equity Incentive Plan is to promote the interest of the Company and its shareholders by, among other things, (i) attracting and retaining key officers, employees and directors of, and consultants to, the Company and its subsidiaries and affiliates, (ii) motivating those individuals by means of performance-related incentives to achieve long-range performance goals, (iii) enabling such individuals to participate in the long-term growth and financial success of the Company, (iv) encouraging ownership of stock in the Company by such individuals, and (v) linking their compensation to the long-term interests of the Company and its shareholders. Except for certain limitations, awards can be in the form of stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted shares and restricted share units, performance awards and other stock-based awards. As of December 31, 2016, the Company has 610,003 shares remaining available for issuance under the 2016 Equity Incentive Plan. As of December 31, 2016, the Company had granted 60,832 non-qualified stock options and 79,165 cash settled stock appreciation rights each with a weighted average price of $40.36.

The fair value of each stock option and cash settled SAR grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants in 2016, 2015 and 2014:

	2016		2015		2014
Expected dividends	1.21	%	1.00	%	1.11	%
Expected term (in years)	8.71		8.96		9.33
Expected volatility	26	%	22	%	23	%
Risk-free rate	2.02	%	2.02	%	2.62	%

The expected stock price volatility is based on historical volatility adjusted for consideration of other relevant factors. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts.

A summary of the stock option and SAR activity for 2016, 2015 and 2014 is as follows:

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	2016				2015				2014
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	49,895		$	30.19	58,092		$	28.52	63,539		$	27.32
Granted	140,997		40.36		4,333		36.23		4,333		34.31
Exercised	(5,545	)	27.38		(10,177	)	23.69		(8,192	)	22.68
Forfeited or expired	(1,500	)	28.44		(2,353	)	28.22		(1,588	)	26.52
Outstanding at end of year	183,847		$	38.08	49,895		$	30.19	58,092		$	28.52
Options and SARs exercisable at year end	13,553		$	29.29	13,085		$	28.55	16,085		$	25.94

The following table summarizes information about stock options and SARs for the year ended December 31, 2016:

	Options and SARs Outstanding					Options and SARs Exercisable
Range of Exercise Prices	Number Outstanding at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Number Exercisable at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
$ 22.22 - $ 33.56	33,451		$	29.33	3.70 years	12,453		$	28.78	3.28 years
$ 33.94 - $ 40.75	150,396		$	40.03	9.67 years	1,100		$	35.06	7.57 years
	183,847					13,553
Aggregate intrinsic value (in thousands)	$	490				$	155

	Shares		Weighted Average Grant Date Fair Value
Non-vested options and SARs at January 1, 2016	36,810		7.14
Granted	140,997		11.29
Vested	(6,646	)	5.95
Forfeited	(867	)	5.93
Non-vested options and SARs at December 31, 2016	170,294		10.63

The weighted average fair value at the grant date of options and SARs granted during the years 2016, 2015 and 2014 was $11.29, $12.72 and $13.41, respectively. The total intrinsic value of options and SARs exercised during the years 2016, 2015 and 2014 was $65,000, $129,000 and $99,000, respectively.

As of December 31, 2016, there was $1,784,000 of total unrecognized cost related to non-vested share-based compensation arrangements granted under the Company’s stock option plans. The cost is expected to be recognized over a weighted-average period of 4.9 years.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(19) Earnings Per Share

The following is a summary of the components comprising basic and diluted earnings per share (“EPS”):

	In Thousands (except share data)
	2016		2015	2014
Basic EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator - Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Basic earnings per common share	$	2.49	2.35	2.06
Diluted EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator:
Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Dilutive effect of stock options	4,996		4,703	5,857
	10,284,328		10,170,180	10,068,640
Diluted earnings per common share	$	2.49	2.35	2.06

(20) Disclosures About Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.

Valuation Hierarchy

FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets

• Level 2 - inputs to the valuation methodology include all prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 - inputs to the valuation methodology that are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy.

Assets

Securities available-for-sale - Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy.

Impaired loans - A loan is considered to be impaired when it is probable the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the expense is recognized as a charge-off. Impaired loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower’s underlying financial condition.

Other real estate owned - Other real estate owned (“OREO”) represents real estate foreclosed upon by the Company through loan defaults by customers or acquired in lieu of foreclosure. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest income or noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment.

Other assets - Included in other assets are certain assets carried at fair value, including the cash surrender value of bank owned life insurance policies. The Company uses financial information received from insurance carriers indicating the performance of the insurance policies and cash surrender values in determining the carrying value of life insurance. The Company reflects these assets within Level 3 of the valuation hierarchy due to the unobservable inputs included in the valuation of these items. The Company does not consider the fair values of these policies to be materially sensitive to changes in these unobservable inputs.

Mortgage loans held for sale - Mortgage loans held for sale are carried at fair value. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

The following tables present the financial instruments carried at fair value as of December 31, 2016 and December 31, 2015, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	59,488	—	59,488	—
Mortgage-backed securities	164,365		—	164,365	—
Asset-backed securities	36,857		—	36,857	—
State and municipal securities	51,875		—	51,875	—
Total investment securities available-for-sale	312,585		—	312,585	—
Loans held for sale	14,788		—	14,788	—
Other assets	28,616		—	—	28,616
Total assets at fair value	$	355,989	—	327,373	28,616

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	76,909	—	76,909	—
Mortgage-backed securities	191,915		—	191,915	—
Asset-backed securities	31,034		—	31,034	—
State and municipal securities	31,270		—	31,270	—
Total investment securities available-for-sale	331,128		—	331,128	—
Loans held for sale	10,135		—	10,135	—
Other assets	26,672		—	—	26,672
Total assets at fair value	$	367,935	—	341,263	26,672

	Measured on a Non-Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Other real estate owned	$	4,527	—	—	4,527
Impaired loans, net (¹)	6,792		—	—	6,792
Total	$	11,319	—	—	11,319
December 31, 2015
Other real estate owned	$	5,410	—	—	5,410
Impaired loans, net (¹)	8,436		—	—	8,436
Total	$	13,846	—	—	13,846

(1) Amount is net of a valuation allowance of $316,000 at December 31, 2016 and $194,000 at December 31, 2015 as required by ASC 310, “Receivables.”

In the case of its investment securities portfolio, the Company monitors the valuation technique utilized by various pricing agencies to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the twelve months ended December 31, 2016, there were no transfers between Levels 1, 2 or 3.

The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2016 and 2015 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

	For the Year Ended December 31,
	2016			2015
	Other Assets		Other Liabilities	Other Assets		Other Liabilities
Fair value, January 1	$	17,733	—	$	13,344	—
Total realized gains included in income	673		—	532		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	—		—	—		—
Purchases, issuances and settlements, net	10,210		—	3,857		—
Transfers out of Level 3	—		—	—		—
Fair value, December 31	$	28,616	—	$	17,733	—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	$	673	—	$	532	—

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2016 and December 31, 2015. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

Held-to-maturity securities- Estimated fair values for held-to-maturity investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics.

Loans- The fair value of our loan portfolio includes a credit risk factor in the determination of the fair value of our loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Our loan portfolio is initially fair valued using a segmented approach. We divide our loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk.

For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price.

Deposits and Securities sold under agreements to repurchase- Fair values for deposits are estimated using discounted cash flow models, using current market interest rates offered on deposits with similar remaining maturities.

Off-Balance Sheet Instruments- The fair values of the Company’s off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to the Company until such commitments are funded.

The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of the Company’s financial instruments at December 31, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(in Thousands)	Carrying/ Notional Amount		Estimated Fair Value (¹)	Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Financial assets:
Securities held-to-maturity	$	36,624	36,145	—	36,145	—
Loans, net	1,667,088		1,673,568	—	—	1,673,568
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,942,871		1,631,032	—	—	1,631,032
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—
December 31, 2015
Financial assets:
Securities held-to-maturity	$	28,195	28,365	—	28,365	—
Loans, net	1,443,179		1,443,738	—	—	1,443,738
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,791,885		1,549,414	—	—	1,549,414
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—

(1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(21) Wilson Bank Holding Company -

Parent Company Financial Information

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Balance Sheets

December 31, 2016 and 2015

	Dollars In Thousands
	2016				2015
ASSETS
Cash	$	1,678		*	1,685		*
Investment in wholly-owned commercial bank subsidiary	242,808			*	221,555		*
Refundable income taxes	169				198
Total assets	$	244,655			223,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Stock appreciation rights payable	$	35			—
Total liabilities	$	35			—
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	$	20,639			15,304
Additional paid-in capital	60,541				61,339
Retained earnings	167,523				147,646
Net unrealized losses on available-for-sale securities, net of income taxes of $2,533 and $527, respectively	(4,083		)		(851	)
Total stockholders’ equity	244,620				223,438
Total liabilities and stockholders’ equity	$	244,655			223,438

* Eliminated in consolidation.

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Earnings and Comprehensive Earnings

Three Years Ended December 31, 2016

	Dollars In Thousands
	2016				2015			2014
Expenses:
Directors’ fees	$	327			350			351
Other	194				152			191
Loss before Federal income tax benefits and equity in undistributed earnings of commercial bank subsidiary	(521		)		(502	)		(542	)
Federal income tax benefits	169				198			212
	(352		)		(304	)		(330	)
Equity in undistributed earnings of commercial bank subsidiary	25,985			*	24,167		*	21,107		*
Net earnings	25,633				23,863			20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale- securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively	(2,948		)		(58	)		3,953
Reclassification adjustments for net gains included in net earnings, net of taxes of $176, $71, and $209 respectively	(284		)		(114	)		(336	)
Other comprehensive earnings (losses)	(3,232		)		(172	)		3,617
Comprehensive earnings	$	22,401			23,691			24,394

* Eliminated in consolidation

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Changes in Stockholders’ Equity

Three Years Ended December 31, 2016

	Dollars In Thousands
	Common Stock			Additional Paid-In Capital		Retained Earnings		Net Unrealized Gain (Loss) On Available-For-Sale Securities		Total
Balance December 31, 2013	$	14,997		54,519		112,451		(4,296	)	177,671
Cash dividends declared, $.45 per share	—			—		(4,510	)	—		(4,510	)
Issuance of 69,289 shares of stock pursuant to dividend reinvestment plan	139			3,065		—		—		3,204
Issuance of 6,144 shares of stock pursuant to exercise of stock options	12			174		—		—		186
Share based compensation expense	—			41		—		—		41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245	—			—		—		3,617		3,617
Repurchase of 2,053 common shares	(4		)	(90	)	—		—		(94	)
Net earnings for the year	—			—		20,777		—		20,777
Balance December 31, 2014	15,144			57,709		128,718		(679	)	200,892
Cash dividends declared, $.49 per share	—			—		(4,935	)	—		(4,935	)
Issuance of 72,543 shares of stock pursuant to dividend reinvestment plan	145			3,366		—		—		3,511
Issuance of 7,633 shares of stock pursuant to exercise of stock options	15			226		—		—		241
Share based compensation expense	—			38		—		—		38
Net change in fair value of available-for-sale securities during the year, net of taxes of $106	—			—		—		(172	)	(172	)
Net earnings for the year	—			—		23,863		—		23,863
Balance December 31, 2015	15,304			61,339		147,646		(851	)	223,438
Cash dividends declared, $.56 per share	—			—		(5,756	)	—		(5,756	)
Issuance of 98,318 shares of stock pursuant to dividend reinvestment plan	197			4,119		—		—		4,316
Issuance of 5,120 shares of stock pursuant to exercise of stock options	10			142		—		—		152
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split	5,128			(5,128	)	—		—		—
Share based compensation expense	—			69		—		—		69
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,006	—			—		—		(3,232	)	(3,232	)
Net earnings for the year	—			—		25,633		—		25,633
Balance December 31, 2016	$	20,639		60,541		167,523		(4,083	)	244,620

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Cash Flows

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars In Thousands
	2016			2015		2014
Cash flows from operating activities:
Cash paid to suppliers and other	$	(417	)	(464	)	(501	)
Tax benefits received	198			212		173
Net cash used in operating activities	(219		)	(252	)	(328	)
Cash flows from investing activities:
Dividends received from commercial bank subsidiary	1,500			2,000		—
Net cash provided by investing activities	1,500			2,000		—
Cash flows from financing activities:
Dividends paid	(5,756		)	(4,935	)	(4,510	)
Proceeds from sale of stock pursuant to dividend reinvestment	4,316			3,511		3,204
Proceeds from exercise of stock options	152			241		186
Common shares repurchased	—			—		(94	)
Net cash used in financing activities	(1,288		)	(1,183	)	(1,214	)
Net increase (decrease) in cash and cash equivalents	(7		)	565		(1,542	)
Cash and cash equivalents at beginning of year	1,685			1,120		2,662
Cash and cash equivalents at end of year	$	1,678		1,685		1,120

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Cash Flows, Continued

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars in Thousands
	2016			2015		2014
Reconciliation of net earnings to net cash used in operating activities:
Net earnings	$	25,633		23,863		20,777
Adjustments to reconcile net earnings to net cash used in operating activities:
Equity in earnings of commercial bank subsidiary	(25,985		)	(24,167	)	(21,107	)
Decrease (increase) in refundable income taxes	29			14		(39	)
Share based compensation expense	104			38		41
Total adjustments	(25,852		)	(24,115	)	(21,105	)
Net cash used in operating activities	$	(219	)	(252	)	(328	)

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(22) Quarterly Financial Data (Unaudited)

Selected quarterly results of operations for the four quarters ended December 31 are as follows:

	(In Thousands, except per share data)
	2016					2015					2014
	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter
Interest income	$	22,078	21,454	20,877	20,337	$	20,213	19,982	19,617	19,027	$	19,180	18,980	18,286	17,934
Interest expense	1,990		2,077	2,106	2,111	2,087		2,114	2,191	2,216	2,397		2,426	2,437	2,508
Net interest income	20,088		19,377	18,771	18,226	18,126		17,868	17,426	16,811	16,783		16,554	15,849	15,426
Provision for loan losses	89		141	82	67	123		109	81	75	134		87	28	249
Earnings before income taxes	10,120		11,095	10,162	9,097	8,720		9,862	9,889	9,154	8,888		8,772	8,503	6,924
Net earnings	6,802		6,918	6,270	5,643	5,958		6,088	6,201	5,616	6,100		5,351	5,154	4,172
Basic earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41
Diluted earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41

WILSON BANK HOLDING COMPANY

Notes to Consolidated Financial Statements, Continued

December 31, 2016, 2015 and 2014

(23) Subsequent Events

ASC Topic 855, Subsequent Events, as amended by ASU No. 2010-90, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after December 31, 2016, through the date of the issued financial statements. During this period there were no material recognizable subsequent events that required recognition in our disclosures to the December 31, 2016 financial statements.

EX-21.1

EXHIBIT 21.1

SUBSIDIARIES OF THE ISSUER

The Company has a wholly-owned subsidiary, Wilson Bank and Trust, a state chartered bank incorporated under the laws of the State of Tennessee and doing business under the same name.

EX-23.1

EXHIBIT 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in the Registration Statement (Form S-8, No. 333-32442) pertaining to the Wilson Bank Holding Company 1999 Stock Option Plan, the Registration Statement (Form S-3, No. 333-81984) pertaining to the Wilson Bank Holding Company Dividend Reinvestment Plan, the Registration Statement (Form S-8, No. 333-158621) pertaining to the Wilson Bank Holding Company 2009 Stock Option Plan and the Registration Statement (Form S-8, No. 333-210927) pertaining to the Wilson Bank Holding Company 2016 Equity Incentive Plan of our reports dated February 24, 2017, with respect to the consolidated financial statements of Wilson Bank Holding Company and with respect to the effectiveness of internal control over financial reporting of Wilson Bank Holding Company, included in this Annual Report on Form 10-K for the year ended December 31, 2016.

/s/ Maggart & Associates, P.C.

MAGGART & ASSOCIATES, P.C.

Nashville, Tennessee

March 10, 2017

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, J. Randall Clemons, certify that:
1.	I have reviewed this annual report on Form 10-K of Wilson Bank Holding Company;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
	(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 10, 2017
		By:/s/ J. Randall Clemons
		Name: J. Randall Clemons
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Lisa Pominski , certify that:
1.	I have reviewed this annual report on Form 10-K of Wilson Bank Holding Company;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15(d)-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
	(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):
	(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: March 10, 2017
		By:/s/ Lisa Pominski
		Name: Lisa Pominski
		Executive Vice President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Wilson Bank Holding Company (the “Company”) on Form 10-K for the period ended December 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Randall Clemons, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ J. Randall Clemons

Randall Clemons

President and Chief Executive Officer

Date: March 10, 2017

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Wilson Bank Holding Company (the “Company”) on Form 10-K for the period ended December 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lisa Pominski, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Lisa Pominski

Lisa Pominski, Executive Vice President and Chief

Financial Officer

Date: March 10, 2017

22107263.3

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 10, 2017	Jun. 30, 2016
Document And Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	WBHC
Entity Registrant Name	WILSON BANK HOLDING CO
Entity Central Index Key	0000885275
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		10,381,664
Entity Public Float			$ 375,210,585

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Loans, net of allowance for loan losses of $22,731 and $22,900, respectively	$ 1,667,088	$ 1,443,179
Held-to-maturity, at amortized cost (market value $36,145 and $28,365, respectively)	36,624	28,195
Available-for-sale, at market (amortized cost $319,201 and $332,506, respectively)	312,585	331,128
Total securities	349,209	359,323
Loans held for sale	14,788	10,135
Federal funds sold	0	35,220
Restricted equity securities, at cost	3,012	3,012
Total earning assets	2,034,097	1,850,869
Cash and due from banks	47,918	74,033
Premises and equipment, net	44,414	42,100
Accrued interest receivable	6,104	5,244
Deferred income taxes	10,758	8,039
Other real estate	4,527	5,410
Bank owned life insurance	28,616	17,733
Goodwill	4,805	4,805
Other assets	16,812	13,371
Total assets	2,198,051	2,021,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits	1,942,135	1,789,850
Securities sold under repurchase agreements	736	2,035
Accrued interest and other liabilities	10,560	6,281
Total liabilities	1,953,431	1,798,166
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	20,639	15,304
Additional paid-in capital	60,541	61,339
Retained earnings	167,523	147,646
Net unrealized losses on available-for-sale securities, net of taxes of $2,533 and $527, respectively	(4,083)	(851)
Total stockholders’ equity	244,620	223,438
COMMITMENTS AND CONTINGENCIES
Total liabilities and stockholders’ equity	$ 2,198,051	$ 2,021,604

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for loan losses	$ 22,731	$ 22,900
Held-to-maturity, market value	36,145	28,365
Available-for-sale, amortized cost	$ 319,201	$ 332,506
Common stock, par value (in dollars per share)	$ 2.00	$ 2.00
Common stock, shares authorized	50,000,000	15,000,000
Common stock, shares issued	10,319,673	7,652,144
Common stock, shares outstanding	10,319,673	7,652,144
Net unrealized losses on available-for-sale securities, income taxes	$ 2,533	$ 527

XML

Consolidated Statements of Earnings - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Interest income:
Interest and fees on loans	$ 77,024	$ 71,543	$ 66,685
Interest and dividends on securities:
Taxable securities	5,714	5,868	6,464
Exempt from Federal income taxes	1,191	768	679
Interest on loans held for sale	391	385	263
Interest on Federal funds sold	304	154	167
Interest and dividends on restricted equity securities	122	121	122
Total interest income	84,746	78,839	74,380
Interest expense:
Interest on negotiable order of withdrawal accounts	1,371	1,515	1,587
Interest on money market accounts and other savings accounts	1,915	1,906	2,366
Interest on certificates of deposit and individual retirement accounts	4,978	5,179	5,791
Interest on securities sold under repurchase agreements	3	7	23
Interest on Federal funds purchased	17	1	1
Total interest expense	8,284	8,608	9,768
Net interest income before provision for loan losses	76,462	70,231	64,612
Provision for loan losses	379	388	498
Net interest income after provision for loan losses	76,083	69,843	64,114
Non-interest income	21,728	19,941	16,678
Non-interest expense	(57,337)	(52,159)	(47,705)
Earnings before income taxes	40,474	37,625	33,087
Income taxes	14,841	13,762	12,310
Net earnings	$ 25,633	$ 23,863	$ 20,777
Basic earnings per common share (in dollars per share)	$ 2.49	$ 2.35	$ 2.06
Diluted earnings per common share (in dollars per share)	$ 2.49	$ 2.35	$ 2.06
Weighted average common shares outstanding:
Basic (in shares)	10,279,332	10,165,477	10,062,783
Diluted (in shares)	10,284,328	10,170,180	10,068,640

XML

Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Net earnings	$ 6,802	$ 6,918	$ 6,270	$ 5,643	$ 5,958	$ 6,088	$ 6,201	$ 5,616	$ 6,100	$ 5,351	$ 5,154	$ 4,172	$ 25,633	$ 23,863	$ 20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively													(2,948)	(58)	3,953
Reclassification adjustment for net gains included in net earnings, net of taxes of $176, $71, and $209, respectively													(284)	(114)	(336)
Other comprehensive earnings (losses)													(3,232)	(172)	3,617
Comprehensive earnings													$ 22,401	$ 23,691	$ 24,394

XML

Consolidated Statements of Comprehensive Earnings (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
Unrealized gains (losses) on available-for-sale securities arising during period, taxes	$ 1,830	$ 35	$ 2,454
Reclassification adjustment for net gains included in net earnings, taxes	$ 176	$ 71	$ 209

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Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Net Unrealized Gain (Loss) On Available-For-Sale Securities
Beginning balance at Dec. 31, 2013	$ 177,671	$ 14,997	$ 54,519	$ 112,451	$ (4,296)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively	(4,510)			(4,510)
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively	3,204	139	3,065
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively	186	12	174
Share based compensation expense	41		41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively	3,617				3,617
Repurchase of 2,053 common shares	(94)	(4)	(90)
Net earnings for the year	20,777			20,777
Ending balance at Dec. 31, 2014	200,892	15,144	57,709	128,718	(679)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively	(4,935)			(4,935)
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively	3,511	145	3,366
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively	241	15	226
Share based compensation expense	38		38
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively	(172)				(172)
Net earnings for the year	23,863			23,863
Ending balance at Dec. 31, 2015	223,438	15,304	61,339	147,646	(851)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively	(5,756)			(5,756)
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively	4,316	197	4,119
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively	152	10	142
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split	0	5,128	(5,128)
Share based compensation expense	69		69
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively	(3,232)				(3,232)
Net earnings for the year	25,633			25,633
Ending balance at Dec. 31, 2016	$ 244,620	$ 20,639	$ 60,541	$ 167,523	$ (4,083)

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Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	5,120	7,633	6,144
Net change in fair value of available-for-sale securities, tax | $	$ (2,006)	$ (106)	$ 2,245
Repurchase of common shares			2,053
Shares of stock pursuant to stock split	2,564,091
Stock split, conversion ratio	1.3333
Common Stock
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	6,120	7,633	6,144
Repurchase of common shares			2,053
Shares of stock pursuant to stock split	2,564,091
Additional Paid-In Capital
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	6,120	7,633	6,144
Repurchase of common shares			2,053
Retained Earnings
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Net Unrealized Gain (Loss) On Available-For-Sale Securities
Net change in fair value of available-for-sale securities, tax | $	$ (2,006)	$ (106)	$ 2,245

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Interest received	$ 86,641	$ 81,054	$ 75,937
Fees and other income received	16,029	15,346	13,269
Proceeds from sales of loans	160,816	157,261	105,414
Origination of loans held for sale	(161,114)	(153,882)	(105,078)
Interest paid	(8,278)	(8,728)	(9,964)
Cash paid to suppliers and employees	(53,454)	(51,474)	(45,890)
Income taxes paid	(13,837)	(13,937)	(12,277)
Net cash provided by operating activities	26,803	25,640	21,411
Cash flows from investing activities:
Purchase of available-for-sale securities	(181,285)	(125,000)	(171,497)
Proceeds from calls, maturities and paydowns of available-for-sale securities	102,596	95,620	86,946
Proceeds from sale of available-for-sale securities	90,007	42,845	72,215
Purchase of held-to-maturity securities	(11,479)	(4,413)	(3,610)
Proceeds from maturities and paydowns of held-to-maturity securities	2,742	4,079	2,049
Loans made to customers, net of repayments	(223,950)	(114,456)	(144,410)
Purchase of bank owned life insurance and annuity contracts	(11,916)	(8,464)	(5,565)
Purchase of bank premises and equipment	(5,147)	(4,612)	(4,145)
Proceeds from sale of other assets	15	12	4
Proceeds from sale of other real estate	581	3,000	3,945
Net cash used in investing activities	(237,836)	(111,389)	(164,068)
Cash flows from financing activities:
Net increase in non-interest bearing, savings, NOW and money market deposit accounts	158,775	160,760	147,458
Net decrease in time deposits	(6,490)	(31,180)	(41,443)
Net decrease in securities sold under agreements to repurchase	(1,299)	(1,402)	(5,641)
Dividends paid	(5,756)	(4,935)	(4,510)
Proceeds from sale of common stock pursuant to dividend reinvestment	4,316	3,511	3,204
Proceeds from sale of common stock pursuant to exercise of stock options	152	241	186
Repurchase of common shares	0	0	(94)
Net cash provided by financing activities	149,698	126,995	99,160
Net increase (decrease) in cash and cash equivalents	(61,335)	41,246	(43,497)
Cash and cash equivalents at beginning of year	109,253	68,007	111,504
Cash and cash equivalents at end of year	47,918	109,253	68,007
Reconciliation of net earnings to net cash provided by operating activities:
Net earnings	25,633	23,863	20,777
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation, amortization and accretion	5,515	4,578	4,162
Provision for loan losses	379	388	498
Share based compensation expense	69	38	41
Provision for deferred tax expense (benefit)	(164)	1,238	634
Gains on sales of other real estate, net	(52)	(362)	(77)
Loss on sales of other assets	1	2	6
Loss (gain) on sale of premises and equipment	73	53	(7)
Security gains	(460)	(185)	(545)
Increase in loans held for sale	(4,653)	(669)	(2,444)
Increase (decrease) in taxes payable	1,168	(1,413)	(601)
Increase in other assets, bank owned life insurance and annuity contract earnings	(2,408)	(1,161)	(1,297)
Decrease (increase) in accrued interest receivable	(860)	219	(400)
Increase (decrease) in interest payable	6	(120)	(196)
Increase (decrease) in other liabilities	2,556	(829)	860
Total adjustments	1,170	1,777	634
Net cash provided by operating activities	26,803	25,640	21,411
Supplemental Schedule of Non-Cash Activities:
Unrealized gain (loss) in value of securities available-for-sale, net of taxes of $2,006 in 2016, $106 in 2015, and $2,245 in 2014	(3,232)	(172)	3,617
Non-cash transfers from loans to other real estate	696	1,930	799
Non-cash transfers from other real estate to loans	1,050	1,180	2,502
Non-cash transfers from loans to other assets	$ 16	$ 4	$ 17

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Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement of Cash Flows [Abstract]
Unrealized loss in values of securities available-for-sale, net of taxes	$ (2,006)	$ (106)	$ 2,245

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

The accounting and reporting policies of Wilson Bank Holding Company (“the Company”) and Wilson Bank & Trust (“Wilson Bank”) are in accordance with accounting principles generally accepted in the United States of America (“U.S.”) and conform to general practices within the banking industry. The following is a brief summary of the significant policies.

(a) Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Wilson Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

(b) Nature of Operations

Wilson Bank operates under a state bank charter and provides full banking services. As a state-chartered bank that is not a member of the Federal Reserve, Wilson Bank is subject to regulations of the Tennessee Department of Financial Institutions and the Federal Deposit Insurance Corporation (“FDIC”). The areas served by Wilson Bank include Wilson County, DeKalb County, Rutherford County, Smith County, Trousdale County, Putnam County, Sumner County, and eastern Davidson County, Tennessee and surrounding counties in Middle Tennessee. Services are provided at the main office and twenty-five branch locations.

(c) Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets and other real estate, other-than-temporary impairments of securities, and the fair value of financial instruments.

(d) Significant Group Concentrations of Credit Risk

Most of the Company’s activities are with customers located within Middle Tennessee. The types of securities in which the Company invests are described in note 3. The types of lending in which the Company engages are described in note 2. The Company does not have any significant concentrations to any one industry or customer other than as disclosed in note 2.

Residential 1-4 family, commercial real estate and construction mortgage loans, represented 22%, 42% and 20% and 24%, 43% and 19% of the loan portfolio at December 31, 2016 and 2015, respectively.

(e) Loans

The Company grants mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout Middle Tennessee. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans, and premiums or discounts on purchased loans.

Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized on a straight line basis over the respective term of the loan.

As part of our routine credit monitoring process, the Company performs regular credit reviews of the loan portfolio and loans receive risk ratings by the assigned credit officer, which are subject to validation by our independent loan review department. Risk ratings are categorized as pass, special mention, substandard or doubtful. The Company believes that our categories follow those outlined by our primary regulator.

Generally the accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than when they become 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

(f) Allowance for Loan Losses

Management provides for loan losses by establishing an allowance. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s quarterly review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

In assessing the adequacy of the allowance, we also consider the results of our ongoing independent loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, independent loan reviewers, and reviews that may have been conducted by third-party reviewers. We incorporate relevant loan review results in the loan impairment determination. In addition, regulatory agencies, as an integral part of their examination process, will periodically review the Company’s allowance for loan losses and may require the Company to record adjustments to the allowance based on their judgment about information available to them at the time of their examinations.

In addition to the independent loan review process, the aforementioned risk ratings are subject to continual review by loan officers to determine that the appropriate risk ratings are being utilized in our allowance for loan loss process. Each risk rating is also subject to review by our independent loan review department. Currently, our independent loan review department targets reviews of 100% of existing loan relationships with aggregate debt of $1.0 million and greater and new loans with aggregate debt of $500,000 and greater. In addition, our independent loan review targets portfolio segments, loans assigned to a particular lending officer, and loans with four or more renewals.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are individually classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience, historical loan loss factors, loss experience of various loan segments, and other adjustments based on management’s assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial, mortgage and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

(g) Debt and Equity Securities

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value based on available market prices, with unrealized gains and losses excluded from earnings and reported in other comprehensive income on an after-tax basis. Securities classified as “available for sale” are held for indefinite periods of time and may be sold in response to movements in market interest rates, changes in the maturity or mix of Company assets and liabilities or demand for liquidity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Other-than-temporary Impairment—Impaired securities are assessed quarterly for the presence of other-than-temporary impairment (“OTTI”). A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether OTTI has occurred, management considers factors such as (1) length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospectus of the issuer, and (3) Wilson Bank’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. If management deems a security to be OTTI, management reviews the present value of the future cash flows associated with the security. A shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. If management concludes that no credit loss exists and it is not “more-likely-than-not” that it will be required to sell the security before the recovery of the security’s cost basis, then the security is not deemed OTTI and the shortfall is recorded as a component of equity.

No securities have been classified as trading securities.

(h) Federal Home Loan Bank Stock

The Company, as a member of the Federal Home Loan Bank (“FHLB”) Cincinnati system, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at par value, which approximates its fair value. Management reviews the investment for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2016, the minimum required investment was approximately $2.4 million. Stock redemptions are at the discretion of the FHLB.

(i) Loans Held for Sale

Mortgage loans held-for-sale are carried at fair value. The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

(j) Premises and Equipment

Premises and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the related assets. Gains or losses realized on items retired and otherwise disposed of are credited or charged to operations and cost and related accumulated depreciation are removed from the asset and accumulated depreciation accounts.

Expenditures for major renovations and improvements of premises and equipment are capitalized and those for maintenance and repairs are charged to earnings as incurred.

(k) Other Real Estate

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less the estimated cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to their acquisition by the Company, valuations of these assets are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance [i.e. any direct write-downs] are included in net expenses from foreclosed assets.

(l) Intangible Assets

The Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 350, Goodwill and Other Intangible Assets requires that management determine the allocation of intangible assets into identifiable groups at the date of acquisition and that appropriate amortization periods be established. Under the provisions of FASB ASC 350, goodwill is not to be amortized; rather, it is to be monitored for impairment and written down to the impairment value at the time impairment occurs. The Company has determined that no impairment loss needs to be recognized related to its goodwill.

(m) Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and Federal funds sold. Generally, Federal funds sold are purchased and sold for one day periods. Management makes deposits only with financial institutions it considers to be financially sound.

(n) Long-Term Assets

Premises and equipment, intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

(o) Securities Sold Under Agreements to Repurchase

Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by Federal deposit insurance.

(p) Income Taxes

The Company accounts for Income Taxes in accordance with income tax accounting guidance (FASB ASC 740, Income Taxes). The Company follows accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.

The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

(q) Equity-Based Incentives

Stock compensation accounting guidance (FASB ASC 718, “Compensation—Stock Compensation”) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, cash settled stock appreciation rights (SARs), and employee share purchase plans.

The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options and cash settled SARs.

(r) Advertising Costs

Advertising costs are expensed as incurred by the Company and totaled $2,310,000, $2,337,000 and $1,884,000 for 2016, 2015 and 2014, respectively.

(s) Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

(t) Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in note 20 of the consolidated financial statements. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.

(u) Reclassification

Certain reclassifications have been made to the 2015 and 2014 figures to conform to the presentation for 2016.

(v) Off-Balance-Sheet Financial Instruments

In the ordinary course of business, Wilson Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received.

(w) Stock Split

The Company's Board of Directors voted for a 4 for 3 stock split for stockholders of record as of March 24, 2016 payable March 30, 2016. Each stockholder received four (4) shares of common stock for each three (3) shares owned with no allowance for fractual shares. Per share data and stock options included in these financial statements has been restated to give effect to the stock split.

(x) Recently Adopted Accounting Pronouncements

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date" deferred the effective date of ASU 2014-09 by one year to January 1, 2018. We are currently evaluating the potential impact of ASU 2014-09 on our financial statements.

ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

ASU 2016-02,“Leases (Topic 842)” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

ASU 2016-09,“Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. We elected to adopt the provisions of ASU 2016-09 during the first quarter of 2016 in advance of the required application date of January 1, 2017.

ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements.

ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

There were no other recently issued accounting pronouncements that are expected to materially impact the Company.

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Loans and Allowance for Loan Losses

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Loans and Allowance for Loan Losses

Loans and Allowance for Loan Losses

The classification of loans at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Mortgage loans on real estate:
Residential 1-4 family	$	376,872		349,631
Multifamily	79,908			49,564
Commercial	704,807			625,623
Construction	339,580			275,319
Farmland	37,519			32,114
Second mortgages	9,166			7,551
Equity lines of credit	56,005			46,506
Total mortgage loans on real estate	1,603,857			1,386,308
Commercial loans	37,677			30,537
Agriculture loans	1,562			1,552
Consumer installment loans:
Personal	41,117			40,196
Credit cards	3,157			3,271
Total consumer installment loans	44,274			43,467
Other loans	9,055			9,250
	1,696,425			1,471,114
Net deferred loan fees	(6,606		)	(5,035	)
Total loans	1,689,819			1,466,079
Less: Allowance for loan losses	(22,731		)	(22,900	)
Loans, net	$	1,667,088		1,443,179

At December 31, 2016, variable rate and fixed rate loans totaled $1,178,865,000 and $517,560,000, respectively. At December 31, 2015, variable rate and fixed rate loans totaled $970,428,000 and $500,686,000, respectively.

In the normal course of business, Wilson Bank has made loans at prevailing interest rates and terms to directors and executive officers of the Company and to their affiliates. The aggregate amount of these loans was $9,692,000 and $6,576,000 at December 31, 2016 and 2015, respectively. None of these loans were restructured, charged-off or involved more than the normal risk of collectibility or presented other unfavorable features during the three years ended December 31, 2016.

An analysis of the activity with respect to such loans to related parties is as follows:

	In Thousands
	December 31,
	2016			2015
Balance, January 1	$	6,576		11,744
New loans and renewals during the year	16,295			12,329
Repayments (including loans paid by renewal) during the year	(13,179		)	(17,497	)
Balance, December 31	$	9,692		6,576

(2) Loans and Allowance for Loan Losses, Continued

Risk characteristics relevant to each portfolio segment are as follows:

Construction and land development: Loans for non-owner-occupied real estate construction or land development are generally repaid through cash flow related to the operation, sale or refinance of the property. The Company also finances construction loans for owner-occupied properties. A portion of the Company’s construction and land portfolio segment is comprised of loans secured by residential product types (residential land and single-family construction). With respect to construction loans to developers and builders that are secured by non-owner occupied properties that the Company may originate from time to time, the Company generally requires the borrower to have had an existing relationship with the Company and have a proven record of success. Construction and land development loans are underwritten utilizing independent appraisal reviews, sensitivity analysis of absorption and lease rates, market sales activity, and financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing.

1-4 family residential real estate: Residential real estate loans represent loans to consumers or investors to finance a residence. These loans are typically financed on 15 to 30 year amortization terms, but generally with shorter maturities of 5 to 15 years. Many of these loans are extended to borrowers to finance their primary or secondary residence. Loans to an investor secured by a 1-4 family residence will be repaid from either the rental income from the property or from the sale of the property. This loan segment also includes closed-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home. Loans in this portfolio segment are underwritten and approved based on a number of credit quality criteria including limits on maximum Loan-to-Value (LTV), minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment.

1-4 family HELOC: This loan segment includes open-end home equity loans that are secured by a first or second mortgage on the borrower’s residence. This allows customers to borrow against the equity in their home utilizing a revolving line of credit. These loans are underwritten and approved based on a number of credit quality criteria including limits on maximum LTV, minimum credit scores, and maximum debt to income. Real estate market values as of the time the loan is made directly affect the amount of credit extended and, in addition, changes in these residential property values impact the depth of potential losses in this portfolio segment. Because of the revolving nature of these loans, as well as the fact that many represent second mortgages, this portfolio segment can contain more risk than the amortizing 1-4 family residential real estate loans.

Multi-family and commercial real estate: Multi-family and commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans, in addition to those of real estate loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate.

Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type. This diversity helps reduce the Company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. The Company also utilizes third-party experts to provide insight and guidance about economic conditions and trends affecting the market areas it serves. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans. Non-owner occupied commercial real estate loans are loans secured by multifamily and commercial properties where the primary source of repayment is derived from rental income associated with the property (that is, loans for which 50 percent or more of the source of repayment comes from

third party, nonaffiliated, rental income) or the proceeds of the sale, refinancing, or permanent financing of the property. These loans are made to finance income-producing properties such as apartment buildings, office and industrial buildings, and retail properties. Owner-occupied commercial real estate loans are loans where the primary source of repayment is the cash flow from the ongoing operations and business activities conducted by the party, or affiliate of the party, who owns the property.

Commercial and industrial: The commercial and industrial loan portfolio segment includes commercial and industrial loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchases or other expansion projects. Collection risk in this portfolio is driven by the creditworthiness of underlying borrowers, particularly cash flow from customers’ business operations. Commercial and industrial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and usually incorporates a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers.

Consumer: The consumer loan portfolio segment includes non-real estate secured direct loans to consumers for household, family, and other personal expenditures. Consumer loans may be secured or unsecured and are usually structured with short or medium term maturities. These loans are underwritten and approved based on a number of consumer credit quality criteria including limits on maximum LTV on secured consumer loans, minimum credit scores, and maximum debt to income. Many traditional forms of consumer installment credit have standard monthly payments and fixed repayment schedules of one to five years. These loans are made with either fixed or variable interest rates that are based on specific indices. Installment loans fill a variety of needs, such as financing the purchase of an automobile, a boat, a recreational vehicle or other large personal items, or for consolidating debt. These loans may be unsecured or secured by an assignment of title, as in an automobile loan, or by money in a bank account. In addition to consumer installment loans, this portfolio segment also includes secured and unsecured personal lines of credit as well as overdraft protection lines. Loans in this portfolio segment are sensitive to unemployment and other key consumer economic measures.

A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310), when based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Substantially all of the Company’s impaired loans are collateral dependent.

The following tables, present the Company’s impaired loans at December 31, 2016 and 2015:

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With no related allowance recorded:
Residential 1-4 family	$	150	148	—	150	7
Multifamily	—		—	—	—	—
Commercial real estate	4,248		4,246	—	4,352	38
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	6,125	6,115	—	6,359	132

	In Thousands
	Record Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With allowance recorded:
Residential 1-4 family	$	540	531	196	540	32
Multifamily	—		—	—	—	—
Commercial real estate	443		443	120	111	5
Construction	—		—	—	—	—
Farmland	—		—	—	—	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	983	974	316	651	37

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
Total:
Residential 1-4 family	$	690	679	196	690	39
Multifamily	—		—	—	—	—
Commercial real estate	4,691		4,689	120	4,463	43
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,108	7,089	316	7,010	169

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With no related allowance recorded:
Residential 1-4 family	$	633	622	—	724	39
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	5,048	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	431	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,796	7,778	—	6,689	160

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With allowance recorded:
Residential 1-4 family	$	834	827	194	785	47
Multifamily	—		—	—	—	—
Commercial real estate	—		—	—	3,419	—
Construction	—		—	—	—	—
Farmland	—		—	—	144	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	834	827	194	4,348	47
December 31, 2015
Total:
Residential 1-4 family	$	1,467	1,449	194	1,509	86
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	8,467	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	575	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	8,630	8,605	194	11,037	207

The following tables present the Company’s nonaccrual loans, credit quality indicators and past due loans as of December 31, 2016 and 2015.

Loans on Nonaccrual Status

	In Thousands
	2016		2015
Residential 1-4 family	$	—	41
Multifamily	—		—
Commercial real estate	3,255		4,293
Construction	—		—
Farmland	310		575
Second mortgages	—		—
Equity lines of credit	—		—
Commercial	—		—
Agricultural, installment and other	—		—
Total	$	3,565	4,909

The amount of interest income that would have been recognized for the years ended December 31, 2016 and 2015 amounted to $202,000 and $291,000, respectively, if the above nonaccrual loans had been current.

Potential problem loans, which include nonperforming loans, amounted to approximately $16.2 million at December 31, 2016 compared to $25.2 million at December 31, 2015. Potential problem loans represent those loans with a well defined weakness and where information about possible credit problems of borrowers has caused management to have serious doubts about the borrower’s ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by the FDIC, the Company’s primary federal regulator, for loans classified as special mention, substandard, or doubtful, excluding the impact of nonperforming loans.

The following table presents our loan balances by primary loan classification and the amount classified within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard and doubtful which are defined as follows:

• Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

• Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

• Doubtful loans have all the characteristics of substandard loans with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Company considers all doubtful loans to be impaired and places the loans on nonaccrual status.

Credit Quality Indicators

	In Thousands
	Residential 1-4 Family		Multifamily	Commercial Real Estate	Construction	Farmland	Second Mortgages	Equity Lines of Credit	Commercial	Agricultural, Installment and Other	Total
Credit Risk Profile by Internally Assigned Grade
December 31, 2016
Pass	$	367,987	79,908	699,314	339,354	36,675	8,748	55,850	37,677	54,754	1,680,267
Special mention	5,616		—	668	121	147	303	—	—	26	6,881
Substandard	3,269		—	4,825	105	697	115	155	—	111	9,277
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	376,872	79,908	704,807	339,580	37,519	9,166	56,005	37,677	54,891	1,696,425
December 31, 2015
Pass	$	340,019	49,564	612,318	274,926	30,933	7,097	46,361	30,525	54,154	1,445,897
Special mention	6,957		—	8,227	277	200	353	—	10	38	16,062
Substandard	2,655		—	5,078	116	981	101	145	2	77	9,155
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	349,631	49,564	625,623	275,319	32,114	7,551	46,506	30,537	54,269	1,471,114

Age Analysis of Past Due Loans

	In Thousands
	30-59 Days Past Due		60-89 Days Past Due	Nonaccrual and Greater Than 90 Days	Total Nonaccrual and Past Due	Current	Total Loans	Recorded Investment Greater Than 90 Days and Accruing
December 31, 2016
Residential 1-4 family	$	3,311	1,307	1,434	6,052	370,820	376,872	1,434
Multifamily	—		—	—	—	79,908	79,908	—
Commercial real estate	41		175	3,335	3,551	701,256	704,807	80
Construction	1,872		53	22	1,947	337,633	339,580	22
Farmland	56		1,163	410	1,629	35,890	37,519	100
Second mortgages	177		—	11	188	8,978	9,166	11
Equity lines of credit	40		148	17	205	55,800	56,005	17
Commercial	37		4	—	41	37,636	37,677	—
Agricultural, installment and other	385		85	143	613	54,278	54,891	143
Total	$	5,919	2,935	5,372	14,226	1,682,199	1,696,425	1,807
December 31, 2015
Residential 1-4 family	$	3,272	1,198	1,412	5,882	343,749	349,631	1,371
Multifamily	—		—	—	—	49,564	49,564	—
Commercial real estate	172		—	4,293	4,465	621,158	625,623	—
Construction	958		230	—	1,188	274,131	275,319	—
Farmland	88		21	886	995	31,119	32,114	311
Second mortgages	87		—	4	91	7,460	7,551	4
Equity lines of credit	283		89	197	569	45,937	46,506	197
Commercial	2		—	39	41	30,496	30,537	39
Agricultural, installment and other	382		114	56	552	53,717	54,269	56
Total	$	5,244	1,652	6,887	13,783	1,457,331	1,471,114	1,978

Transactions in the allowance for loan losses for the years ended December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland	Second Mortgages	Equity Lines of Credit	Commercial		Agricultural, Installment and Other		Total
December 31, 2016
Allowance for loan losses:
Beginning balance	$	5,024		619	9,986		5,136		654	106	594	301		480		22,900
Provision	(400		)	220	(399	)	283		2	2	66	81		524		379
Charge-offs	(109		)	—	(100	)	(66	)	—	—	—	(11	)	(674	)	(960	)
Recoveries	56			—	54		34		2	4	15	15		232		412
Ending balance	$	4,571		839	9,541		5,387		658	112	675	386		562		22,731
Ending balance individually evaluated for impairment	$	196		—	120		—		—	—	—	—		—		316
Ending balance collectively evaluated for impairment	$	4,375		839	9,421		5,387		658	112	675	386		562		22,415
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—
Loans:
Ending balance	$	376,872		79,908	704,807		339,580		37,519	9,166	56,005	37,677		54,891		1,696,425
Ending balance individually evaluated for impairment	$	679		—	4,689		1,618		103	—	—	—		—		7,089
Ending balance collectively evaluated for impairment	$	376,193		79,908	700,118		337,962		37,416	9,166	56,005	37,677		54,891		1,689,336
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—

	In thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland		Second Mortgages		Equity Lines of Credit		Commercial	Agricultural, Installment and Other		Total
December 31, 2015
Allowance for loan losses:
Beginning balance	$	5,582		172	9,578		5,578		795		61		304		176	326		22,572
Provision	(290		)	447	(267	)	(455	)	(142	)	87		303		118	587		388
Charge-offs	(311		)	—	(44	)	(26	)	—		(45	)	(14	)	—	(664	)	(1,104	)
Recoveries	43			—	719		39		1		3		1		7	231		1,044
Ending balance	$	5,024		619	9,986		5,136		654		106		594		301	480		22,900
Ending balance individually evaluated for impairment	$	194		—	—		—		—		—		—		—	—		194
Ending balance collectively evaluated for impairment	$	4,830		619	9,986		5,136		654		106		594		301	480		22,706
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—
Loans:
Ending balance	$	349,631		49,564	625,623		275,319		32,114		7,551		46,506		30,537	54,269		1,471,114
Ending balance individually evaluated for impairment	$	1,449		—	4,643		1,938		575		—		—		—	—		8,605
Ending balance collectively evaluated for impairment	$	348,182		49,564	620,980		273,381		31,539		7,551		46,506		30,537	54,269		1,462,509
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—

The Company’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. The concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

The following table summarizes the carrying balances of TDRs at December 31, 2016 and December 31, 2015 (dollars in thousands):

	2016		2015
Performing TDRs	$	3,277	983
Nonperforming TDRs	1,319		3,121
Total TDRs	$	4,596	4,104

The following table outlines the amount of each troubled debt restructuring categorized by loan classification for the years ended December 31, 2016 and 2015 (dollars in thousands):

	December 31, 2016			December 31, 2015
	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance
Residential 1-4 family	4	130	130	2	77	77
Multifamily	—	—	—	—	—	—
Commercial real estate	2	1,364	1,244	—	—	—
Construction	—	—	—	1	1,938	1,938
Farmland	1	103	103	—	—	—
Second mortgages	—	—	—	—	—	—
Equity lines of credit	—	—	—	—	—	—
Commercial	—	—	—	—	—	—
Agricultural, installment and other	2	17	17	1	2	1
Total	9	1,614	1,494	4	2,017	2,016

As of December 31, 2016 the Company did not have any loans previously classified as troubled debt restructurings default within twelve months of the restructuring. As of December 31, 2015 the Company had two loans totaling $1,060,000 previously classified as troubled debt restructurings default within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable’s contract.

The Company’s principal customers are primarily in the Middle Tennessee area with a concentration in Wilson County, Tennessee. Credit is extended to businesses and individuals and is evidenced by promissory notes. The terms and conditions of the loans including collateral vary depending upon the purpose of the credit and the borrower’s financial condition.

In 2016, 2015 and 2014, the Company originated loans in the secondary market of $161,114,000, $153,882,000 and $105,078,000, respectively. The fees and gain on sale of these loans totaled $4,355,000, $4,048,000 and $2,780,000 in 2016, 2015 and 2014, respectively. The Company sells loans to third-party investors on a loan-by-loan basis and has not entered into any forward commitments with investors for future bulk sales. All of these loan sales transfer servicing rights to the buyer.

In some instances Wilson Bank sells loans that contain provisions which permit the borrower to seek recourse against Wilson Bank in certain circumstances. At December 31, 2016 and 2015, total loans sold with recourse in the secondary market aggregated $124,480,000 and $111,521,000, respectively. At December 31, 2016, Wilson Bank has not been required to repurchase a significant amount of the loans originated by Wilson Bank and sold in the secondary market. Management expects no material losses to result from these recourse provisions.

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Debt and Equity Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Debt and Equity Securities

Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at December 31, 2016 consist of the following:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	11,856	48	230	11,674
Obligations of states and political subdivisions	24,768		142	439	24,471
	$	36,624	190	669	36,145

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	61,879	—	2,391	59,488
Mortgage-backed:
GSE residential	166,316		496	2,447	164,365
Asset-backed:
SBAP	37,577		9	729	36,857
Obligations of states and political subdivisions	53,429		52	1,606	51,875
	$	319,201	557	7,173	312,585

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

The Company’s classification of securities at December 31, 2015 is as follows:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	9,375	60	169	9,266
Obligations of states and political subdivisions	18,820		288	9	19,099
	$	28,195	348	178	28,365

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	77,177	215	483	76,909
Mortgage-backed:
GSE residential	192,983		430	1,498	191,915
Asset-backed:
SBAP	31,253		54	273	31,034
Obligations of states and political subdivisions	31,093		274	97	31,270
	$	332,506	973	2,351	331,128

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

Included in mortgage-backed GSE residential available-for-sale securities are collateralized mortgage obligations totaling $16,015,000 (fair value of $15,814,000) and $14,269,000 (fair value of $14,168,000) at December 31, 2016 and 2015, respectively.

The amortized cost and estimated market value of debt securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	In Thousands
Securities Held-To-Maturity	Amortized Cost		Estimated Market Value
Due in one year or less	$	2,003	2,013
Due after one year through five years	10,122		10,151
Due after five years through ten years	8,307		8,124
Due after ten years	4,336		4,183
	24,768		24,471
Mortgage-backed securities	11,856		11,674
	$	36,624	36,145

	In Thousands
Securities Available-For-Sale	Amortized Cost		Estimated Market Value
Due in one year or less	$	—	—
Due after one year through five years	16,932		16,749
Due after five years through ten years	72,882		70,589
Due after ten years	25,494		24,025
	115,308		111,363
Mortgage and asset-backed securities	203,893		201,222
	$	319,201	312,585

Results from sales of debt and equity securities are as follows:

	In Thousands
	2016			2015		2014
Gross proceeds	$	90,007		42,845		72,215
Gross realized gains	$	716		261		$	638
Gross realized losses	(256		)	(76	)	(93		)
Net realized gains	$	460		185		$	545

Securities carried in the balance sheet of approximately $196,397,000 (approximate market value of $192,484,000) and $163,674,000 (approximate market value of $162,905,000) were pledged to secure public deposits and for other purposes as required or permitted by law at December 31, 2016 and 2015, respectively.

Included in the securities above are $27,412,000 and $10,840,000 (approximate market value of $27,088,000 and $10,269,000) and $21,593,000 and $1,073,000 (approximate market value of $21,896,000 and $1,083,000) at December 31, 2016 and 2015, respectively, in obligations of political subdivisions located within the State of Tennessee and Texas, respectively. Management purchases only obligations of such political subdivisions it considers to be financially sound.

Securities that have rates that adjust prior to maturity totaled $50,991,000 (approximate market value of $51,132,000) and $40,023,000 (approximate market value of $40,009,000) at December 31, 2016 and 2015, respectively.

Temporarily Impaired Securities

The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2016.

Available-for-sale and held to maturity securities that have been in a continuous unrealized loss position at December 31, 2016 are as follows:

	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses
Held to Maturity Securities:
Debt securities:
Mortgage-backed:
GSE residential	$	8,177	$	151	7	$	1,704	$	79	1	$	9,881	$	230
Obligations of states and political subdivisions	16,081		439		41	—		—		—	16,081		439
	$	24,258	$	590	48	$	1,704	$	79	1	$	25,962	$	669
Available-for-Sale Securities:
Debt securities:
GSEs	$	59,488	$	2,391	23	$	—	$	—	—	$	59,488	$	2,391
Mortgage-backed:
GSE residential	124,011		2,350		64	6,918		97		9	130,929		2,447
Asset-backed:
SBAP	33,579		729		17	—		—		—	33,579		729
Obligations of states and political subdivisions	42,801		1,606		116	—		—		—	42,801		1,606
	$	259,879	$	7,076	220	$	6,918	$	97	9	$	266,797	$	7,173

Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses to the extent the impairment is related to credit losses. The amount of the impairment related to other factors is recognized in other comprehensive income. In estimating other-than-temporary impairment losses, management considers, among other things, (i) the length of time and the extent to which the fair value has been less than cost, (ii) the financial condition and near-term prospects of the issuer, and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in cost.

Management has the ability and intent to hold the securities classified as held to maturity in the table above until they mature, at which time we will receive full value for the securities. Furthermore, as of December 31, 2016, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. Any unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the bonds approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of December 31, 2016, management believes the impairments detailed in the table above are temporary and no impairment loss has been realized in our consolidated statements of earnings.

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Restricted Equity Securities

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Restricted Equity Securities

Restricted Equity Securities

Restricted equity securities consists of stock of the FHLB of Cincinnati amounting to $3,012,000 at December 31, 2016 and 2015. The stock can be sold back only at par or a value as determined by the issuing institution and only to the respective financial institution or to another member institution. These securities are recorded at cost.

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Premises and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Premises and Equipment

Premises and Equipment

The detail of premises and equipment at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Land	$	17,022		17,022
Buildings	29,937			27,821
Leasehold improvements	368			140
Furniture and equipment	9,760			8,605
Automobiles	304			280
Construction-in-progress	2,851			2,091
	60,242			55,959
Less accumulated depreciation	(15,828		)	(13,859	)
	$	44,414		42,100

During 2016, 2015 and 2014 payments of $1,361,000, $1,222,000 and $1,176,000, respectively, were made to an entity owned by a director for the construction of buildings and minor repair work.

Depreciation expense was $2,760,000, $2,582,000 and $2,205,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

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Acquired Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets and Goodwill

Acquired Intangible Assets and Goodwill

The Company's intangible assets result from the excess of purchase price over the applicable book value of the net assets acquired related to outside ownership of two previously 50% owned subsidiaries that the Company acquired 100% of in 2005.

	In Thousands
	2016		2015
Goodwill:
Balance at January 1,	$	4,805	4,805
Goodwill acquired during year	—		—
Impairment loss	—		—
Balance at December 31,	$	4,805	4,805

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Deposits

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Deposits

Deposits

Deposits at December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	2016		2015
Demand deposits	$	226,971	197,062
Savings accounts	123,749		107,829
Negotiable order of withdrawal accounts	454,487		445,967
Money market demand accounts	628,321		523,895
Certificates of deposit $250,000 or greater	64,938		64,236
Other certificates of deposit	360,871		364,274
Individual retirement accounts $250,000 or greater	8,417		9,074
Other individual retirement accounts	74,381		77,513
	$	1,942,135	1,789,850

Principal maturities of certificates of deposit and individual retirement accounts at December 31, 2016 are as follows:

	(In Thousands)
Maturity	Total
2017	$	246,092
2018	131,358
2019	76,942
2020	34,783
2021	19,432
Thereafter	—
	$	508,607

The aggregate amount of overdrafts reclassified as loans receivable was $481,000 and $303,000 at December 31, 2016 and 2015, respectively.

As of December 31, 2016 and 2015, Wilson Bank was not required to maintain a cash balance with the Federal Reserve.

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Securities Sold Under Repurchase Agreements

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Securities Sold Under Repurchase Agreements

Securities Sold Under Repurchase Agreements

Securities sold under repurchase agreements were $736,000 and $2,035,000 at December 31, 2016 and 2015, respectively. The maximum amounts of outstanding repurchase agreements at any month end during 2016 and 2015 were $2,070,000 and $3,514,000, respectively. The average daily balance outstanding during 2016 and 2015 was $1,214,000 and $2,505,000, respectively. The weighted-average interest rate on the outstanding balance at December 31, 2016 and 2015 was .25% . The underlying securities are typically held by other financial institutions and are designated as pledged.

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Non-Interest Income and Non-Interest Expense

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

Non-Interest Income and Non-Interest Expense

Non-Interest Income and Non-Interest Expense

The significant components of non-interest income and non-interest expense for the years ended December 31, 2016, 2015 and 2014 are presented below:

	In Thousands
	2016		2015	2014
Non-interest income:
Service charges on deposits	$	5,769	5,148	4,374
Other fees and commissions	10,260		9,321	8,519
BOLI and annuity earnings	832		877	376
Security gains, net	460		185	545
Fees and gains on sales of loans	4,355		4,048	2,780
Gain on sale of other real estate, net	52		362	77
Gain on sale of fixed assets, net	—		—	7
	$	21,728	19,941	16,678

	In Thousands
	2016		2015	2014
Non-interest expense:
Employee salaries and benefits	$	34,106	31,556	27,793
Occupancy expenses	3,638		3,444	3,100
Furniture and equipment expenses	2,019		2,063	1,767
Loss on the sale of fixed assets, net	73		53	—
Loss on sales of other assets, net	1		2	6
Data processing expenses	2,576		2,476	2,313
FDIC insurance	968		953	1,049
Directors’ fees	691		735	720
Other operating expenses	13,265		10,877	10,957
	$	57,337	52,159	47,705

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Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of the net deferred tax asset are as follows:

	In Thousands
	2016			2015
Deferred tax asset:
Federal	$	11,316		8,954
State	1,863			1,380
	13,179			10,334
Deferred tax liability:
Federal	(2,010		)	(1,905	)
State	(411		)	(390	)
	(2,421		)	(2,295	)
Net deferred tax asset	$	10,758		8,039

The tax effects of each type of significant item that gave rise to deferred tax assets (liabilities) are:

	In Thousands
	2016			2015
Financial statement allowance for loan losses in excess of tax allowance	$	8,252		8,317
Excess of depreciation deducted for tax purposes over the amounts deducted in the financial statements	(1,941		)	(1,815	)
Financial statement deduction for deferred compensation in excess of deduction for tax purposes	1,423			1,174
Writedown of other real estate not deductible for income tax purposes until sold	287			162
Financial statement income on FHLB stock dividends not recognized for tax purposes	(480		)	(480	)
Unrealized loss on securities available-for-sale	2,533			528
Other items, net	684			153
	$	10,758		8,039

The components of income tax expense (benefit) are summarized as follows:

	In Thousands
	Federal			State		Total
2016
Current	$	12,910		2,095		15,005
Deferred	(136		)	(28	)	(164	)
Total	$	12,774		2,067		14,841
2015
Current	$	10,871		1,653		12,524
Deferred	1,028			210		1,238
Total	$	11,899		1,863		13,762
2014
Current	$	10,201		1,475		11,676
Deferred	526			108		634
Total	$	10,727		1,583		12,310

A reconciliation of actual income tax expense of $14,841,000, $13,762,000 and $12,310,000 for the years ended December 31, 2016, 2015 and 2014, respectively, to the “expected” tax expense (computed by applying the statutory rate of 34% to earnings before income taxes) is as follows:

	In Thousands
	2016			2015		2014
Computed “expected” tax expense	$	13,761		12,793		11,250
State income taxes, net of Federal income tax benefit	1,364			1,243		1,029
Tax exempt interest, net of interest expense exclusion	(401		)	(266	)	(244	)
Federal income tax rate in excess of statutory rate related to taxable income over $10 million	370			312		290
Earnings on cash surrender value of life insurance	(283		)	(298	)	(128	)
Expenses not deductible for tax purposes	40			35		37
Stock based compensation expense	35			13		14
Other	(45		)	(70	)	62
	$	14,841		13,762		12,310

Total income tax expense for 2016, 2015 and 2014, includes $176,000, $71,000 and $209,000 of expense related to the realized gain and loss, respectively, on sale of securities.

As of December 31, 2016, 2015 and 2014 the Company has not accrued or recognized interest or penalties related to uncertain tax positions. It is the Company’s policy to recognize interest and/or penalties related to income tax matters in income tax expense.

There were no unrecognized tax benefits at December 31, 2016.

Wilson Bank does not expect that unrecognized tax benefits will significantly increase or decrease within the next 12 months. Included in the balance at December 31, 2016, were approximately $13.2 million of tax positions (deferred tax assets) for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

The Company and Wilson Bank file income tax returns in the United States (“U.S.”), as well as in the State of Tennessee. The Company is no longer subject to U.S. federal or state income tax examinations by tax authorities for years before 2012. The Company’s Federal tax returns have been audited through December 31, 2004 with no changes.

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Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

Commitments and Contingent Liabilities

The Company is party to litigation and claims arising in the normal course of business. Management, after consultation with legal counsel, believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company's consolidated financial position.

Wilson Bank leases land for certain branch facilities and automatic teller machine locations. Future minimum rental payments required under the terms of the noncancellable leases are as follows:

Years Ending December 31,	In Thousands
2017	$	244
2018	218
2019	222
2020	228
2021	163

Total rent expense amounted to $204,000, $192,000 and $133,000, respectively, during the years ended December 31, 2016, 2015 and 2014.

The Company has lines of credit with other financial institutions totaling $53,000,000 at December 31, 2016 and 2015. At December 31, 2016 and 2015, respectively, there was no balance outstanding under these lines of credit.

The Company also has a Cash Management Advance ("CMA") Line of Credit agreement. The CMA is a component of the Company's Blanket Agreement for advances with the FHLB. The purpose of the CMA is to assist with short-term liquidity management. Under the terms of the CMA, the Company may borrow a maximum of $25,000,000, selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. There were no borrowings outstanding under the CMA at December 31, 2016 or December 31, 2015.

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Financial Instruments with Off-Balance-Sheet Risk

12 Months Ended

Dec. 31, 2016

Investments, All Other Investments [Abstract]

Financial Instruments with Off-Balance-Sheet Risk

Financial Instruments with Off-Balance-Sheet Risk

The Company is party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments.

	In Thousands
	Contract or Notional Amount
	2016		2015
Financial instruments whose contract amounts represent credit risk:
Unused commitments to extend credit	$	483,818	391,553
Standby letters of credit	50,660		36,631
Total	$	534,478	428,184

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to be drawn upon, the total commitment amounts generally represent future cash requirements. The Company evaluates each customer's credit-worthiness on a case-by-case basis. The amount of collateral, if deemed necessary by the Company upon extension of credit, is based on management's credit evaluation of the counterparty. Collateral normally consists of real property.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing, and similar transactions. Most guarantees extend from one to two years. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The fair value of standby letters of credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements, the likelihood of the counterparties drawing on such financial instruments and the present creditworthiness of such counterparties. Such commitments have been made on terms which are competitive in the markets in which the Company operates; thus, the fair value of standby letters of credit equals the carrying value for the purposes of this disclosure. The maximum potential amount of future payments that the Company could be required to make under the guarantees totaled $50.7 million at December 31, 2016.

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Concentration of Credit Risk

12 Months Ended

Dec. 31, 2016

Risks and Uncertainties [Abstract]

Concentration of Credit Risk

Concentration of Credit Risk

Practically all of the Company’s loans, commitments, and commercial and standby letters of credit have been granted to customers in the Company’s market area. Practically all such customers are depositors of Wilson Bank. The concentrations of credit by type of loan are set forth in note 2 to the consolidated financial statements.

At December 31, 2016, the Company’s cash and due from banks and federal funds sold included commercial bank deposits aggregating $704,000 in excess of the FDIC limit of $250,000 per depositor.

Federal funds sold were deposited with one bank.

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Employee Benefit Plan

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plan

Employee Benefit Plan

Wilson Bank has in effect a 401(k) plan (the “401(k) Plan”) which covers eligible employees. To be eligible an employee must have obtained the age of 20.5. The provisions of the 401(k) Plan provide for both employee and employer contributions. For the years ended December 31, 2016, 2015 and 2014, Wilson Bank contributed $2,006,000, $1,840,000 and $1,734,000, respectively, to the 401(k) Plan.

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Dividend Reinvestment Plan

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Dividend Reinvestment Plan

Dividend Reinvestment Plan

Under the terms of the Company’s dividend reinvestment plan (the “DRIP”) holders of common stock may elect to automatically reinvest cash dividends in additional shares of common stock. The Company may elect to sell original issue shares or to purchase shares in the open market for the account of participants. Original issue shares of 98,318 in 2016, 72,543 in 2015 and 69,289 in 2014 were sold to participants under the terms of the DRIP.

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Regulatory Matters and Restrictions on Dividends

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Regulatory Matters and Restrictions on Dividends

Regulatory Matters and Restrictions on Dividends

The Company and Wilson Bank are subject to regulatory capital requirements administered by the FDIC, the Federal Reserve and the Tennessee Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Wilson Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Wilson Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Prompt corrective action provisions are not applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and Wilson Bank to maintain minimum amounts and ratios (set forth in the following table) of total, Tier 1 and common equity Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2016 and 2015, that the Company and Wilson Bank meet all capital adequacy requirements to which they are subject.

As of December 31, 2016, the most recent notification from the FDIC categorized Wilson Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since the notification that management believes have changed Wilson Bank’s category. To be categorized as well capitalized for purposes of prompt corrective action regulations as of December 31, 2016 and 2015, an institution must have maintained minimum capital ratios as set forth in the following tables and not have been subject to a written agreement, order or directive to maintain a higher capital level. The Company’s and Wilson Bank’s actual capital amounts and ratios as of December 31, 2016 and 2015, are also presented in the table:

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2016
Total capital to risk weighted assets:
Consolidated	$	266,954	12.7	%	$	181,298	8.625	%	N/A		N/A
Wilson Bank	265,142		12.6		181,496		8.625		$	210,430	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		139,295		6.625		N/A		N/A
Wilson Bank	242,085		11.5		139,462		6.625		168,407		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		107,756		5.125		N/A		N/A
Wilson Bank	242,085		11.5		107,886		5.125		136,831		6.5
Tier 1 capital to average assets:
Consolidated	243,897		11.2		87,106		4.0		N/A		N/A
Wilson Bank	242,085		11.1		87,238		4.0		109,047		5.0

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2015
Total capital to risk weighted assets:
Consolidated	$	240,848	14.1	%	$	136,588	8.0	%	N/A		N/A
Wilson Bank	238,963		14.0		136,575		8.0		$	170,719	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		102,441		6.0		N/A		N/A
Wilson Bank	217,600		12.8		102,431		6.0		136,575		8.0
Common Equity Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		76,831		4.5		N/A		N/A
Wilson Bank	217,600		12.8		76,823		4.5		110,967		6.5
Tier 1 capital to average assets:
Consolidated	219,483		11.1		79,361		4.0		N/A		N/A
Wilson Bank	217,600		11.0		79,354		4.0		99,192		5.0

In July 2013, the Federal banking regulators, in response to the Statutory Requirements of The Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted new regulations implementing the Basel Capital Adequacy Accord (“Basel III”) and the related minimum capital ratios. The new capital requirements were effective beginning January 1, 2015 and include a new “Common Equity Tier I Ratio”, which has stricter rules as to what qualifies as Common Equity Tier I Capital. A summary of the changes to the Regulatory Capital Ratios are as follows:

	Guideline in Effect At 12/31/2014				Basel III Requirements
	Minimum		Well Capitalized		Minimum		Well Capitalized
Common Equity Tier I Ratio (Common Equity to Risk Weighted Assets)	Not Applicable		Not Applicable		4.5	%	6.5	%
Tier I Capital to Risk Weighted Assets	4	%	6	%	6	%	8	%
Total Capital to Risk Weighted Assets	8	%	10	%	8	%	10	%
Tier I Leverage Ratio	4	%	5	%	4	%	5	%

The guidelines under Basel III establish a 2.5% capital conservation buffer requirement that is phased in over four years beginning January 1, 2016. The buffer is related to Risk Weighted Assets. In order to avoid limitations on capital distributions such as dividends and certain discretionary bonus payments to executive officers, a banking organization must maintain capital ratios above the minimum ratios including the buffer. The Basel III minimum requirements after giving effect to the buffer as of January 1, of each year are as follows:

	2016		2017		2018		2019
Common Equity Tier I Ratio	5.125	%	5.75	%	6.375	%	7.0	%
Tier I Capital to Risk Weighted Assets Ratio	6.625	%	7.25	%	7.875	%	8.5	%
Total Capital to Risk Weighted Assets Ratio	8.625	%	9.25	%	9.875	%	10.5	%

The requirements of Basel III also place additional restrictions on the inclusion of deferred tax assets and capitalized mortgage servicing rights as a percentage of Tier I Capital. In addition, the risk weights assigned to certain assets such as past due loans and certain real estate loans have been increased.

The requirements of Basel III allow banks and bank holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. The Company and Wilson Bank have chosen to opt out of this requirement.

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Salary Deferral Plans

12 Months Ended

Dec. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Salary Deferral Plans

Salary Deferral Plans

The Company provides its executive officers certain non-qualified pension benefits through an Executive Salary Continuation Plan ("the Plan") and Supplemental Executive Retirement Plan (SERP) Agreements ("SERP Agreements"). The Plan and SERP agreements were established by the Board of Directors to reward executive management for past performance and to provide additional incentive to retain the service of executive management. The Plan and SERP Agreements generally provide executives with benefits of a portion of their salary beginning at retirement through life. As a result, the Company has accrued a liability for future obligations under the Plan and SERP Agreements. At December 31, 2016 and 2015, the liability related to the Plan totaled $1,869,000 and $1,872,000, respectively. At December 31, 2016 and 2015 the liability related to the SERP Agreements totaled $1,846,000 and $1,161,000, respectively.

The Company has purchased life insurance policies to provide the benefits related to the Plan, which at December 31, 2016 and 2015 had a cash surrender value of $3,688,000 and $3,376,000, respectively, and a face value of insurance policies in force of $11,148,000 and $10,508,000, respectively. The life insurance policies remain the sole property of the Company and are payable to the Company.

The Company has also purchased Flexible Premium Indexed Deferred Annuity Contracts (“Annuity Contracts”) to provide benefits related to the SERP Agreements. The Annuity Contracts remain the sole property of the Company and are payable to the Company. At December 31, 2016 and 2015 the Annuity Contracts had a value of $10,804,000 and $8,939,000, respectively.

The Company has also purchased bank owned life insurance policies on its executive officers. The insurance policies remain the sole property of the Company and are payable to the Company. The cash surrender value of the life insurance contracts totaled $24,928,000 and $14,357,000 and the face amount of the insurance policies in force approximated $61,287,000 and $35,471,000 at December 31, 2016 and 2015, respectively.

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Stock Option Plan

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Option Plan

Stock Option Plan

In April 1999, the stockholders of the Company approved the Wilson Bank Holding Company 1999 Stock Option Plan (the “1999 Stock Option Plan”). The Stock Option Plan provides for the granting of stock options, and authorizes the issuance of common stock upon the exercise of such options, for up to 200,000 shares of common stock, to officers and other key employees of the Company and its subsidiary. Furthermore, the Company and its subsidiary may reserve additional shares for issuance under the 1999 Stock Option Plan as needed in order that the aggregate number of shares that may be issued during the term of the 1999 Stock Option Plan is equal to five percent (5%) of the shares of common stock then issued and outstanding.

In April 2009, the Company’s shareholders approved the Wilson Bank Holding Company 2009 Stock Option Plan (the “2009 Stock Option Plan”). The 2009 Stock Option Plan was effective as of April 14, 2009 and replaces the 1999 Stock Option Plan which expired on April 13, 2009. Under the 2009 Stock Option Plan, awards may be in the form of options to acquire common stock of the Company. Subject to adjustment as provided by the terms of the 2009 Stock Option Plan, the maximum number of shares of common stock with respect to which awards may be granted under the 2009 Stock Option Plan is 100,000 shares. As of December 31, 2016, the Company has granted 49,400 options to employees pursuant to the 2009 Stock Option Plan.

Under the 2009 Stock Option Plan, stock option awards may be granted in the form of incentive stock options or nonstatutory stock options and are generally exercisable for up to ten years following the date such option awards are granted. Exercise prices of incentive stock options must be equal to or greater than 100% of the fair market value of the common stock on the grant date.

During the second quarter of 2016, the Company’s shareholders approved the Wilson Bank Holding Company 2016 Equity Incentive Plan, which authorizes awards of up to 750,000 shares of common stock. The 2016 Equity Incentive Plan was approved by the Board of Directors and effective as of January 25, 2016 and approved by the Company’s shareholders on April 12, 2016. The Board of Directors approved an amendment and restatement of the 2016 Equity Incentive Plan (as amended and restated the “2016 Equity Incentive Plan”) to make clear that directors who are not also employees of the Company may be awarded stock appreciation rights. The primary purpose of the 2016 Equity Incentive Plan is to promote the interest of the Company and its shareholders by, among other things, (i) attracting and retaining key officers, employees and directors of, and consultants to, the Company and its subsidiaries and affiliates, (ii) motivating those individuals by means of performance-related incentives to achieve long-range performance goals, (iii) enabling such individuals to participate in the long-term growth and financial success of the Company, (iv) encouraging ownership of stock in the Company by such individuals, and (v) linking their compensation to the long-term interests of the Company and its shareholders. Except for certain limitations, awards can be in the form of stock options (both incentive stock options and non-qualified stock options), stock appreciation rights, restricted shares and restricted share units, performance awards and other stock-based awards. As of December 31, 2016, the Company has 610,003 shares remaining available for issuance under the 2016 Equity Incentive Plan. As of December 31, 2016, the Company had granted 60,832 non-qualified stock options and 79,165 cash settled stock appreciation rights each with a weighted average price of $40.36.

The fair value of each stock option and cash settled SAR grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants in 2016, 2015 and 2014:

	2016		2015		2014
Expected dividends	1.21	%	1.00	%	1.11	%
Expected term (in years)	8.71		8.96		9.33
Expected volatility	26	%	22	%	23	%
Risk-free rate	2.02	%	2.02	%	2.62	%

The expected stock price volatility is based on historical volatility adjusted for consideration of other relevant factors. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of the grant. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts.

A summary of the stock option and SAR activity for 2016, 2015 and 2014 is as follows:

	2016				2015				2014
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	49,895		$	30.19	58,092		$	28.52	63,539		$	27.32
Granted	140,997		40.36		4,333		36.23		4,333		34.31
Exercised	(5,545	)	27.38		(10,177	)	23.69		(8,192	)	22.68
Forfeited or expired	(1,500	)	28.44		(2,353	)	28.22		(1,588	)	26.52
Outstanding at end of year	183,847		$	38.08	49,895		$	30.19	58,092		$	28.52
Options and SARs exercisable at year end	13,553		$	29.29	13,085		$	28.55	16,085		$	25.94

The following table summarizes information about stock options and SARs for the year ended December 31, 2016:

	Options and SARs Outstanding					Options and SARs Exercisable
Range of Exercise Prices	Number Outstanding at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Number Exercisable at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
$ 22.22 - $ 33.56	33,451		$	29.33	3.70 years	12,453		$	28.78	3.28 years
$ 33.94 - $ 40.75	150,396		$	40.03	9.67 years	1,100		$	35.06	7.57 years
	183,847					13,553
Aggregate intrinsic value (in thousands)	$	490				$	155

	Shares		Weighted Average Grant Date Fair Value
Non-vested options and SARs at January 1, 2016	36,810		7.14
Granted	140,997		11.29
Vested	(6,646	)	5.95
Forfeited	(867	)	5.93
Non-vested options and SARs at December 31, 2016	170,294		10.63

The weighted average fair value at the grant date of options and SARs granted during the years 2016, 2015 and 2014 was $11.29, $12.72 and $13.41, respectively. The total intrinsic value of options and SARs exercised during the years 2016, 2015 and 2014 was $65,000, $129,000 and $99,000, respectively.

As of December 31, 2016, there was $1,784,000 of total unrecognized cost related to non-vested share-based compensation arrangements granted under the Company’s stock option plans. The cost is expected to be recognized over a weighted-average period of 4.9 years.

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Earnings Per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following is a summary of the components comprising basic and diluted earnings per share (“EPS”):

	In Thousands (except share data)
	2016		2015	2014
Basic EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator - Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Basic earnings per common share	$	2.49	2.35	2.06
Diluted EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator:
Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Dilutive effect of stock options	4,996		4,703	5,857
	10,284,328		10,170,180	10,068,640
Diluted earnings per common share	$	2.49	2.35	2.06

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Disclosures About Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Disclosures About Fair Value of Financial Instruments

Disclosures About Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.

Valuation Hierarchy

FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

• Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets

• Level 2 - inputs to the valuation methodology include all prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 - inputs to the valuation methodology that are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy.

Assets

Securities available-for-sale - Where quoted prices are available for identical securities in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and certain other financial products. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. In certain cases where there is limited activity or less transparency around inputs to the valuation and more complex pricing models or discounted cash flows are used, securities are classified within Level 3 of the valuation hierarchy.

Impaired loans - A loan is considered to be impaired when it is probable the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. Impaired loans are measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a valuation allowance may be established as a component of the allowance for loan losses or the expense is recognized as a charge-off. Impaired loans are classified within Level 3 of the hierarchy due to the unobservable inputs used in determining their fair value such as collateral values and the borrower’s underlying financial condition.

Other real estate owned - Other real estate owned (“OREO”) represents real estate foreclosed upon by the Company through loan defaults by customers or acquired in lieu of foreclosure. Upon foreclosure, the property is recorded at the lower of cost or fair value, based on appraised value, less selling costs estimated as of the date acquired with any loss recognized as a charge-off through the allowance for loan losses. Additional OREO losses for subsequent valuation downward adjustments are determined on a specific property basis and are included as a component of noninterest expense along with holding costs. Any gains or losses realized at the time of disposal are also reflected in noninterest income or noninterest expense, as applicable. OREO is included in Level 3 of the valuation hierarchy due to the lack of observable market inputs into the determination of fair value. Appraisal values are property-specific and sensitive to the changes in the overall economic environment.

Other assets - Included in other assets are certain assets carried at fair value, including the cash surrender value of bank owned life insurance policies. The Company uses financial information received from insurance carriers indicating the performance of the insurance policies and cash surrender values in determining the carrying value of life insurance. The Company reflects these assets within Level 3 of the valuation hierarchy due to the unobservable inputs included in the valuation of these items. The Company does not consider the fair values of these policies to be materially sensitive to changes in these unobservable inputs.

Mortgage loans held for sale - Mortgage loans held for sale are carried at fair value. The fair value of loans held for sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

The following tables present the financial instruments carried at fair value as of December 31, 2016 and December 31, 2015, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	59,488	—	59,488	—
Mortgage-backed securities	164,365		—	164,365	—
Asset-backed securities	36,857		—	36,857	—
State and municipal securities	51,875		—	51,875	—
Total investment securities available-for-sale	312,585		—	312,585	—
Loans held for sale	14,788		—	14,788	—
Other assets	28,616		—	—	28,616
Total assets at fair value	$	355,989	—	327,373	28,616

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	76,909	—	76,909	—
Mortgage-backed securities	191,915		—	191,915	—
Asset-backed securities	31,034		—	31,034	—
State and municipal securities	31,270		—	31,270	—
Total investment securities available-for-sale	331,128		—	331,128	—
Loans held for sale	10,135		—	10,135	—
Other assets	26,672		—	—	26,672
Total assets at fair value	$	367,935	—	341,263	26,672

	Measured on a Non-Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Other real estate owned	$	4,527	—	—	4,527
Impaired loans, net (¹)	6,792		—	—	6,792
Total	$	11,319	—	—	11,319
December 31, 2015
Other real estate owned	$	5,410	—	—	5,410
Impaired loans, net (¹)	8,436		—	—	8,436
Total	$	13,846	—	—	13,846

(1) Amount is net of a valuation allowance of $316,000 at December 31, 2016 and $194,000 at December 31, 2015 as required by ASC 310, “Receivables.”

In the case of its investment securities portfolio, the Company monitors the valuation technique utilized by various pricing agencies to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the twelve months ended December 31, 2016, there were no transfers between Levels 1, 2 or 3.

The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2016 and 2015 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):

	For the Year Ended December 31,
	2016			2015
	Other Assets		Other Liabilities	Other Assets		Other Liabilities
Fair value, January 1	$	17,733	—	$	13,344	—
Total realized gains included in income	673		—	532		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	—		—	—		—
Purchases, issuances and settlements, net	10,210		—	3,857		—
Transfers out of Level 3	—		—	—		—
Fair value, December 31	$	28,616	—	$	17,733	—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	$	673	—	$	532	—

The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2016 and December 31, 2015. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein.

Held-to-maturity securities- Estimated fair values for held-to-maturity investment securities are based on quoted market prices where available. If quoted market prices are not available, then fair values are estimated by using pricing models that use observable inputs or quoted prices of securities with similar characteristics.

Loans- The fair value of our loan portfolio includes a credit risk factor in the determination of the fair value of our loans. This credit risk assumption is intended to approximate the fair value that a market participant would realize in a hypothetical orderly transaction. Our loan portfolio is initially fair valued using a segmented approach. We divide our loan portfolio into the following categories: variable rate loans, impaired loans and all other loans. The results are then adjusted to account for credit risk.

For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price.

Deposits and Securities sold under agreements to repurchase- Fair values for deposits are estimated using discounted cash flow models, using current market interest rates offered on deposits with similar remaining maturities.

Off-Balance Sheet Instruments- The fair values of the Company’s off-balance-sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value to the Company until such commitments are funded.

The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of the Company’s financial instruments at December 31, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.

(in Thousands)	Carrying/ Notional Amount		Estimated Fair Value (¹)	Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Financial assets:
Securities held-to-maturity	$	36,624	36,145	—	36,145	—
Loans, net	1,667,088		1,673,568	—	—	1,673,568
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,942,871		1,631,032	—	—	1,631,032
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—
December 31, 2015
Financial assets:
Securities held-to-maturity	$	28,195	28,365	—	28,365	—
Loans, net	1,443,179		1,443,738	—	—	1,443,738
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,791,885		1,549,414	—	—	1,549,414
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—

(1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

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Wilson Bank Holding Company - Parent Company Financial Information

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Wilson Bank Holding Company - Parent Company Financial Information

Wilson Bank Holding Company -

Parent Company Financial Information

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Balance Sheets

December 31, 2016 and 2015

	Dollars In Thousands
	2016				2015
ASSETS
Cash	$	1,678		*	1,685		*
Investment in wholly-owned commercial bank subsidiary	242,808			*	221,555		*
Refundable income taxes	169				198
Total assets	$	244,655			223,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Stock appreciation rights payable	$	35			—
Total liabilities	$	35			—
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	$	20,639			15,304
Additional paid-in capital	60,541				61,339
Retained earnings	167,523				147,646
Net unrealized losses on available-for-sale securities, net of income taxes of $2,533 and $527, respectively	(4,083		)		(851	)
Total stockholders’ equity	244,620				223,438
Total liabilities and stockholders’ equity	$	244,655			223,438

* Eliminated in consolidation.

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Earnings and Comprehensive Earnings

Three Years Ended December 31, 2016

	Dollars In Thousands
	2016				2015			2014
Expenses:
Directors’ fees	$	327			350			351
Other	194				152			191
Loss before Federal income tax benefits and equity in undistributed earnings of commercial bank subsidiary	(521		)		(502	)		(542	)
Federal income tax benefits	169				198			212
	(352		)		(304	)		(330	)
Equity in undistributed earnings of commercial bank subsidiary	25,985			*	24,167		*	21,107		*
Net earnings	25,633				23,863			20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale- securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively	(2,948		)		(58	)		3,953
Reclassification adjustments for net gains included in net earnings, net of taxes of $176, $71, and $209 respectively	(284		)		(114	)		(336	)
Other comprehensive earnings (losses)	(3,232		)		(172	)		3,617
Comprehensive earnings	$	22,401			23,691			24,394

* Eliminated in consolidation

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Changes in Stockholders’ Equity

Three Years Ended December 31, 2016

	Dollars In Thousands
	Common Stock			Additional Paid-In Capital		Retained Earnings		Net Unrealized Gain (Loss) On Available-For-Sale Securities		Total
Balance December 31, 2013	$	14,997		54,519		112,451		(4,296	)	177,671
Cash dividends declared, $.45 per share	—			—		(4,510	)	—		(4,510	)
Issuance of 69,289 shares of stock pursuant to dividend reinvestment plan	139			3,065		—		—		3,204
Issuance of 6,144 shares of stock pursuant to exercise of stock options	12			174		—		—		186
Share based compensation expense	—			41		—		—		41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245	—			—		—		3,617		3,617
Repurchase of 2,053 common shares	(4		)	(90	)	—		—		(94	)
Net earnings for the year	—			—		20,777		—		20,777
Balance December 31, 2014	15,144			57,709		128,718		(679	)	200,892
Cash dividends declared, $.49 per share	—			—		(4,935	)	—		(4,935	)
Issuance of 72,543 shares of stock pursuant to dividend reinvestment plan	145			3,366		—		—		3,511
Issuance of 7,633 shares of stock pursuant to exercise of stock options	15			226		—		—		241
Share based compensation expense	—			38		—		—		38
Net change in fair value of available-for-sale securities during the year, net of taxes of $106	—			—		—		(172	)	(172	)
Net earnings for the year	—			—		23,863		—		23,863
Balance December 31, 2015	15,304			61,339		147,646		(851	)	223,438
Cash dividends declared, $.56 per share	—			—		(5,756	)	—		(5,756	)
Issuance of 98,318 shares of stock pursuant to dividend reinvestment plan	197			4,119		—		—		4,316
Issuance of 5,120 shares of stock pursuant to exercise of stock options	10			142		—		—		152
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split	5,128			(5,128	)	—		—		—
Share based compensation expense	—			69		—		—		69
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,006	—			—		—		(3,232	)	(3,232	)
Net earnings for the year	—			—		25,633		—		25,633
Balance December 31, 2016	$	20,639		60,541		167,523		(4,083	)	244,620

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Cash Flows

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars In Thousands
	2016			2015		2014
Cash flows from operating activities:
Cash paid to suppliers and other	$	(417	)	(464	)	(501	)
Tax benefits received	198			212		173
Net cash used in operating activities	(219		)	(252	)	(328	)
Cash flows from investing activities:
Dividends received from commercial bank subsidiary	1,500			2,000		—
Net cash provided by investing activities	1,500			2,000		—
Cash flows from financing activities:
Dividends paid	(5,756		)	(4,935	)	(4,510	)
Proceeds from sale of stock pursuant to dividend reinvestment	4,316			3,511		3,204
Proceeds from exercise of stock options	152			241		186
Common shares repurchased	—			—		(94	)
Net cash used in financing activities	(1,288		)	(1,183	)	(1,214	)
Net increase (decrease) in cash and cash equivalents	(7		)	565		(1,542	)
Cash and cash equivalents at beginning of year	1,685			1,120		2,662
Cash and cash equivalents at end of year	$	1,678		1,685		1,120

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Cash Flows, Continued

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars in Thousands
	2016			2015		2014
Reconciliation of net earnings to net cash used in operating activities:
Net earnings	$	25,633		23,863		20,777
Adjustments to reconcile net earnings to net cash used in operating activities:
Equity in earnings of commercial bank subsidiary	(25,985		)	(24,167	)	(21,107	)
Decrease (increase) in refundable income taxes	29			14		(39	)
Share based compensation expense	104			38		41
Total adjustments	(25,852		)	(24,115	)	(21,105	)
Net cash used in operating activities	$	(219	)	(252	)	(328	)

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (Unaudited)

Selected quarterly results of operations for the four quarters ended December 31 are as follows:

	(In Thousands, except per share data)
	2016					2015					2014
	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter
Interest income	$	22,078	21,454	20,877	20,337	$	20,213	19,982	19,617	19,027	$	19,180	18,980	18,286	17,934
Interest expense	1,990		2,077	2,106	2,111	2,087		2,114	2,191	2,216	2,397		2,426	2,437	2,508
Net interest income	20,088		19,377	18,771	18,226	18,126		17,868	17,426	16,811	16,783		16,554	15,849	15,426
Provision for loan losses	89		141	82	67	123		109	81	75	134		87	28	249
Earnings before income taxes	10,120		11,095	10,162	9,097	8,720		9,862	9,889	9,154	8,888		8,772	8,503	6,924
Net earnings	6,802		6,918	6,270	5,643	5,958		6,088	6,201	5,616	6,100		5,351	5,154	4,172
Basic earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41
Diluted earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41

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Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

ASC Topic 855, Subsequent Events, as amended by ASU No. 2010-90, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. The Company evaluated all events or transactions that occurred after December 31, 2016, through the date of the issued financial statements. During this period there were no material recognizable subsequent events that required recognition in our disclosures to the December 31, 2016 financial statements.

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary Wilson Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

Nature of Operations

Nature of Operations

Wilson Bank operates under a state bank charter and provides full banking services. As a state-chartered bank that is not a member of the Federal Reserve, Wilson Bank is subject to regulations of the Tennessee Department of Financial Institutions and the Federal Deposit Insurance Corporation (“FDIC”). The areas served by Wilson Bank include Wilson County, DeKalb County, Rutherford County, Smith County, Trousdale County, Putnam County, Sumner County, and eastern Davidson County, Tennessee and surrounding counties in Middle Tennessee. Services are provided at the main office and twenty-five branch locations.

Estimates

Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”), management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of deferred tax assets and other real estate, other-than-temporary impairments of securities, and the fair value of financial instruments.

Significant Group Concentrations of Credit Risk

Significant Group Concentrations of Credit Risk

Most of the Company’s activities are with customers located within Middle Tennessee. The types of securities in which the Company invests are described in note 3. The types of lending in which the Company engages are described in note 2. The Company does not have any significant concentrations to any one industry or customer other than as disclosed in note 2.

Loans

Loans

The Company grants mortgage, commercial and consumer loans to customers. A substantial portion of the loan portfolio is represented by mortgage loans throughout Middle Tennessee. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in this area.

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses, and any unamortized deferred fees or costs on originated loans, and premiums or discounts on purchased loans.

Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized on a straight line basis over the respective term of the loan.

As part of our routine credit monitoring process, the Company performs regular credit reviews of the loan portfolio and loans receive risk ratings by the assigned credit officer, which are subject to validation by our independent loan review department. Risk ratings are categorized as pass, special mention, substandard or doubtful. The Company believes that our categories follow those outlined by our primary regulator.

Generally the accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than when they become 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

Allowance for Loan Losses

Management provides for loan losses by establishing an allowance. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s quarterly review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

In assessing the adequacy of the allowance, we also consider the results of our ongoing independent loan review process. We undertake this process both to ascertain whether there are loans in the portfolio whose credit quality has weakened over time and to assist in our overall evaluation of the risk characteristics of the entire loan portfolio. Our loan review process includes the judgment of management, independent loan reviewers, and reviews that may have been conducted by third-party reviewers. We incorporate relevant loan review results in the loan impairment determination. In addition, regulatory agencies, as an integral part of their examination process, will periodically review the Company’s allowance for loan losses and may require the Company to record adjustments to the allowance based on their judgment about information available to them at the time of their examinations.

In addition to the independent loan review process, the aforementioned risk ratings are subject to continual review by loan officers to determine that the appropriate risk ratings are being utilized in our allowance for loan loss process. Each risk rating is also subject to review by our independent loan review department. Currently, our independent loan review department targets reviews of 100% of existing loan relationships with aggregate debt of $1.0 million and greater and new loans with aggregate debt of $500,000 and greater. In addition, our independent loan review targets portfolio segments, loans assigned to a particular lending officer, and loans with four or more renewals.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are individually classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience, historical loan loss factors, loss experience of various loan segments, and other adjustments based on management’s assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial, mortgage and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer loans for impairment disclosures, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower.

Debt and Equity Securities

Debt and Equity Securities

Certain debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and recorded at fair value based on available market prices, with unrealized gains and losses excluded from earnings and reported in other comprehensive income on an after-tax basis. Securities classified as “available for sale” are held for indefinite periods of time and may be sold in response to movements in market interest rates, changes in the maturity or mix of Company assets and liabilities or demand for liquidity. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Other-than-temporary Impairment—Impaired securities are assessed quarterly for the presence of other-than-temporary impairment (“OTTI”). A decline in the fair value of any available-for-sale or held-to-maturity security below cost that is deemed to be other-than-temporary results in a reduction in the carrying amount of the security. To determine whether OTTI has occurred, management considers factors such as (1) length of time and extent that fair value has been less than cost, (2) the financial condition and near term prospectus of the issuer, and (3) Wilson Bank’s ability and intent to hold the security for a period sufficient to allow for any anticipated recovery in fair value. If management deems a security to be OTTI, management reviews the present value of the future cash flows associated with the security. A shortfall of the present value of the cash flows expected to be collected in relation to the amortized cost basis is referred to as a credit loss. If a credit loss is identified, the credit loss is recognized as a charge to earnings and a new cost basis for the security is established. If management concludes that no credit loss exists and it is not “more-likely-than-not” that it will be required to sell the security before the recovery of the security’s cost basis, then the security is not deemed OTTI and the shortfall is recorded as a component of equity.

No securities have been classified as trading securities.

Federal Home Loan Bank Stock

Federal Home Loan Bank Stock

The Company, as a member of the Federal Home Loan Bank (“FHLB”) Cincinnati system, is required to maintain an investment in capital stock of the FHLB. Based on redemption provisions of the FHLB, the stock has no quoted market value and is carried at par value, which approximates its fair value. Management reviews the investment for impairment based on the ultimate recoverability of the cost basis in the FHLB stock. As of December 31, 2016, the minimum required investment was approximately $2.4 million. Stock redemptions are at the discretion of the FHLB.

Loans Held for Sale

Loans Held for Sale

Mortgage loans held-for-sale are carried at fair value. The fair value of loans held-for-sale is determined using quoted prices for similar assets, adjusted for specific attributes of that loan.

Premises and Equipment

Premises and Equipment

Premises and equipment are stated at cost. Depreciation is computed primarily by the straight-line method over the estimated useful lives of the related assets. Gains or losses realized on items retired and otherwise disposed of are credited or charged to operations and cost and related accumulated depreciation are removed from the asset and accumulated depreciation accounts.

Expenditures for major renovations and improvements of premises and equipment are capitalized and those for maintenance and repairs are charged to earnings as incurred.

Other Real Estate

Other Real Estate

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less the estimated cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to their acquisition by the Company, valuations of these assets are periodically performed by management, and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance [i.e. any direct write-downs] are included in net expenses from foreclosed assets.

Intangible Assets

Intangible Assets

The Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 350, Goodwill and Other Intangible Assets requires that management determine the allocation of intangible assets into identifiable groups at the date of acquisition and that appropriate amortization periods be established. Under the provisions of FASB ASC 350, goodwill is not to be amortized; rather, it is to be monitored for impairment and written down to the impairment value at the time impairment occurs. The Company has determined that no impairment loss needs to be recognized related to its goodwill.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks and Federal funds sold. Generally, Federal funds sold are purchased and sold for one day periods. Management makes deposits only with financial institutions it considers to be financially sound.

Long-Term Assets

Long-Term Assets

Premises and equipment, intangible assets, and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Securities Sold Under Agreements to Repurchase

Securities Sold Under Agreements to Repurchase

Substantially all repurchase agreement liabilities represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by Federal deposit insurance.

Income Taxes

Income Taxes

The Company accounts for Income Taxes in accordance with income tax accounting guidance (FASB ASC 740, Income Taxes). The Company follows accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.

The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

The Company recognizes interest and penalties on income taxes as a component of income tax expense.

Equity-Based Incentives

Equity-Based Incentives

Stock compensation accounting guidance (FASB ASC 718, “Compensation—Stock Compensation”) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, cash settled stock appreciation rights (SARs), and employee share purchase plans.

The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options and cash settled SARs.

Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred by the Company

Earnings Per Share

Earnings Per Share

Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options and are determined using the treasury stock method.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in note 20 of the consolidated financial statements. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.

Reclassifications

Reclassification

Certain reclassifications have been made to the 2015 and 2014 figures to conform to the presentation for 2016.

Off-Balance-Sheet Financial Instruments

Off-Balance-Sheet Financial Instruments

In the ordinary course of business, Wilson Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit, commitments under credit card arrangements, commercial letters of credit and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded or related fees are incurred or received.

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 was originally going to be effective for us on January 1, 2017; however, ASU 2015-14, “Revenue from Contracts with Customers (Topic 606) - Deferral of the Effective Date" deferred the effective date of ASU 2014-09 by one year to January 1, 2018. We are currently evaluating the potential impact of ASU 2014-09 on our financial statements.

ASU 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-01, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016-01 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

ASU 2016-02,“Leases (Topic 842)” ASU 2016-02 will, among other things, require lessees to recognize a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model and ASC Topic 606, “Revenue from Contracts with Customers.” ASU 2016-02 will be effective for us on January 1, 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the potential impact of ASU 2016-02 on our financial statements.

ASU 2016-09,“Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” Under ASU 2016-09 all excess tax benefits and tax deficiencies related to share-based payment awards should be recognized as income tax expense or benefit in the income statement during the period in which they occur. Previously, such amounts were recorded in the pool of excess tax benefits included in additional paid-in capital, if such pool was available. Because excess tax benefits are no longer recognized in additional paid-in capital, the assumed proceeds from applying the treasury stock method when computing earnings per share should exclude the amount of excess tax benefits that would have previously been recognized in additional paid-in capital. Additionally, excess tax benefits should be classified along with other income tax cash flows as an operating activity rather than a financing activity, as was previously the case. ASU 2016-09 also provides that an entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest (current GAAP) or account for forfeitures when they occur. ASU 2016-09 changes the threshold to qualify for equity classification (rather than as a liability) to permit withholding up to the maximum statutory tax rates (rather than the minimum as was previously the case) in the applicable jurisdictions. We elected to adopt the provisions of ASU 2016-09 during the first quarter of 2016 in advance of the required application date of January 1, 2017.

ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020. We are currently evaluating the potential impact of ASU 2016-13 on our financial statements.

ASU 2016-15, “Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments.” ASU 2016-15 provides guidance related to certain cash flow issues in order to reduce the current and potential future diversity in practice. ASU 2016-15 will be effective for us on January 1, 2018 and is not expected to have a significant impact on our financial statements.

There were no other recently issued accounting pronouncements that are expected to materially impact the Company.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), which defines fair value, establishes a framework for measuring fair value in U.S. GAAP and expands disclosures about fair value measurements. The definition of fair value focuses on the exit price, i.e., the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, not the entry price, i.e., the price that would be paid to acquire the asset or received to assume the liability at the measurement date. The statement emphasizes that fair value is a market-based measurement; not an entity-specific measurement. Therefore, the fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability.

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Loans and Allowance for Loan Losses (Tables)

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Schedule of Details on Loans of Company

The classification of loans at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Mortgage loans on real estate:
Residential 1-4 family	$	376,872		349,631
Multifamily	79,908			49,564
Commercial	704,807			625,623
Construction	339,580			275,319
Farmland	37,519			32,114
Second mortgages	9,166			7,551
Equity lines of credit	56,005			46,506
Total mortgage loans on real estate	1,603,857			1,386,308
Commercial loans	37,677			30,537
Agriculture loans	1,562			1,552
Consumer installment loans:
Personal	41,117			40,196
Credit cards	3,157			3,271
Total consumer installment loans	44,274			43,467
Other loans	9,055			9,250
	1,696,425			1,471,114
Net deferred loan fees	(6,606		)	(5,035	)
Total loans	1,689,819			1,466,079
Less: Allowance for loan losses	(22,731		)	(22,900	)
Loans, net	$	1,667,088		1,443,179

Schedule of Loans and Leases Receivable Related Parties

An analysis of the activity with respect to such loans to related parties is as follows:

	In Thousands
	December 31,
	2016			2015
Balance, January 1	$	6,576		11,744
New loans and renewals during the year	16,295			12,329
Repayments (including loans paid by renewal) during the year	(13,179		)	(17,497	)
Balance, December 31	$	9,692		6,576

Company's Impaired Loans

The following tables, present the Company’s impaired loans at December 31, 2016 and 2015:

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With no related allowance recorded:
Residential 1-4 family	$	150	148	—	150	7
Multifamily	—		—	—	—	—
Commercial real estate	4,248		4,246	—	4,352	38
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	6,125	6,115	—	6,359	132

	In Thousands
	Record Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
With allowance recorded:
Residential 1-4 family	$	540	531	196	540	32
Multifamily	—		—	—	—	—
Commercial real estate	443		443	120	111	5
Construction	—		—	—	—	—
Farmland	—		—	—	—	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	983	974	316	651	37

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2016
Total:
Residential 1-4 family	$	690	679	196	690	39
Multifamily	—		—	—	—	—
Commercial real estate	4,691		4,689	120	4,463	43
Construction	1,623		1,618	—	1,778	82
Farmland	104		103	—	79	5
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,108	7,089	316	7,010	169

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With no related allowance recorded:
Residential 1-4 family	$	633	622	—	724	39
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	5,048	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	431	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	7,796	7,778	—	6,689	160

	In Thousands
	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
December 31, 2015
With allowance recorded:
Residential 1-4 family	$	834	827	194	785	47
Multifamily	—		—	—	—	—
Commercial real estate	—		—	—	3,419	—
Construction	—		—	—	—	—
Farmland	—		—	—	144	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	834	827	194	4,348	47
December 31, 2015
Total:
Residential 1-4 family	$	1,467	1,449	194	1,509	86
Multifamily	—		—	—	—	—
Commercial real estate	4,645		4,643	—	8,467	24
Construction	1,943		1,938	—	486	97
Farmland	575		575	—	575	—
Second mortgages	—		—	—	—	—
Equity lines of credit	—		—	—	—	—
Commercial	—		—	—	—	—
Agricultural, installment and other	—		—	—	—	—
	$	8,630	8,605	194	11,037	207

Loans on Nonaccrual Status

The following tables present the Company’s nonaccrual loans, credit quality indicators and past due loans as of December 31, 2016 and 2015.

Loans on Nonaccrual Status

	In Thousands
	2016		2015
Residential 1-4 family	$	—	41
Multifamily	—		—
Commercial real estate	3,255		4,293
Construction	—		—
Farmland	310		575
Second mortgages	—		—
Equity lines of credit	—		—
Commercial	—		—
Agricultural, installment and other	—		—
Total	$	3,565	4,909

Credit Quality Indicators

The following table presents our loan balances by primary loan classification and the amount classified within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard and doubtful which are defined as follows:

• Special mention loans have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date.

• Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

• Doubtful loans have all the characteristics of substandard loans with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Company considers all doubtful loans to be impaired and places the loans on nonaccrual status.

Credit Quality Indicators

	In Thousands
	Residential 1-4 Family		Multifamily	Commercial Real Estate	Construction	Farmland	Second Mortgages	Equity Lines of Credit	Commercial	Agricultural, Installment and Other	Total
Credit Risk Profile by Internally Assigned Grade
December 31, 2016
Pass	$	367,987	79,908	699,314	339,354	36,675	8,748	55,850	37,677	54,754	1,680,267
Special mention	5,616		—	668	121	147	303	—	—	26	6,881
Substandard	3,269		—	4,825	105	697	115	155	—	111	9,277
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	376,872	79,908	704,807	339,580	37,519	9,166	56,005	37,677	54,891	1,696,425
December 31, 2015
Pass	$	340,019	49,564	612,318	274,926	30,933	7,097	46,361	30,525	54,154	1,445,897
Special mention	6,957		—	8,227	277	200	353	—	10	38	16,062
Substandard	2,655		—	5,078	116	981	101	145	2	77	9,155
Doubtful	—		—	—	—	—	—	—	—	—	—
Total	$	349,631	49,564	625,623	275,319	32,114	7,551	46,506	30,537	54,269	1,471,114

Age Analysis of Past Due Loans

Age Analysis of Past Due Loans

	In Thousands
	30-59 Days Past Due		60-89 Days Past Due	Nonaccrual and Greater Than 90 Days	Total Nonaccrual and Past Due	Current	Total Loans	Recorded Investment Greater Than 90 Days and Accruing
December 31, 2016
Residential 1-4 family	$	3,311	1,307	1,434	6,052	370,820	376,872	1,434
Multifamily	—		—	—	—	79,908	79,908	—
Commercial real estate	41		175	3,335	3,551	701,256	704,807	80
Construction	1,872		53	22	1,947	337,633	339,580	22
Farmland	56		1,163	410	1,629	35,890	37,519	100
Second mortgages	177		—	11	188	8,978	9,166	11
Equity lines of credit	40		148	17	205	55,800	56,005	17
Commercial	37		4	—	41	37,636	37,677	—
Agricultural, installment and other	385		85	143	613	54,278	54,891	143
Total	$	5,919	2,935	5,372	14,226	1,682,199	1,696,425	1,807
December 31, 2015
Residential 1-4 family	$	3,272	1,198	1,412	5,882	343,749	349,631	1,371
Multifamily	—		—	—	—	49,564	49,564	—
Commercial real estate	172		—	4,293	4,465	621,158	625,623	—
Construction	958		230	—	1,188	274,131	275,319	—
Farmland	88		21	886	995	31,119	32,114	311
Second mortgages	87		—	4	91	7,460	7,551	4
Equity lines of credit	283		89	197	569	45,937	46,506	197
Commercial	2		—	39	41	30,496	30,537	39
Agricultural, installment and other	382		114	56	552	53,717	54,269	56
Total	$	5,244	1,652	6,887	13,783	1,457,331	1,471,114	1,978

Transactions in Allowance for Loan Losses

Transactions in the allowance for loan losses for the years ended December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland	Second Mortgages	Equity Lines of Credit	Commercial		Agricultural, Installment and Other		Total
December 31, 2016
Allowance for loan losses:
Beginning balance	$	5,024		619	9,986		5,136		654	106	594	301		480		22,900
Provision	(400		)	220	(399	)	283		2	2	66	81		524		379
Charge-offs	(109		)	—	(100	)	(66	)	—	—	—	(11	)	(674	)	(960	)
Recoveries	56			—	54		34		2	4	15	15		232		412
Ending balance	$	4,571		839	9,541		5,387		658	112	675	386		562		22,731
Ending balance individually evaluated for impairment	$	196		—	120		—		—	—	—	—		—		316
Ending balance collectively evaluated for impairment	$	4,375		839	9,421		5,387		658	112	675	386		562		22,415
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—
Loans:
Ending balance	$	376,872		79,908	704,807		339,580		37,519	9,166	56,005	37,677		54,891		1,696,425
Ending balance individually evaluated for impairment	$	679		—	4,689		1,618		103	—	—	—		—		7,089
Ending balance collectively evaluated for impairment	$	376,193		79,908	700,118		337,962		37,416	9,166	56,005	37,677		54,891		1,689,336
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—	—	—	—		—		—

	In thousands
	Residential 1-4 Family			Multifamily	Commercial Real Estate		Construction		Farmland		Second Mortgages		Equity Lines of Credit		Commercial	Agricultural, Installment and Other		Total
December 31, 2015
Allowance for loan losses:
Beginning balance	$	5,582		172	9,578		5,578		795		61		304		176	326		22,572
Provision	(290		)	447	(267	)	(455	)	(142	)	87		303		118	587		388
Charge-offs	(311		)	—	(44	)	(26	)	—		(45	)	(14	)	—	(664	)	(1,104	)
Recoveries	43			—	719		39		1		3		1		7	231		1,044
Ending balance	$	5,024		619	9,986		5,136		654		106		594		301	480		22,900
Ending balance individually evaluated for impairment	$	194		—	—		—		—		—		—		—	—		194
Ending balance collectively evaluated for impairment	$	4,830		619	9,986		5,136		654		106		594		301	480		22,706
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—
Loans:
Ending balance	$	349,631		49,564	625,623		275,319		32,114		7,551		46,506		30,537	54,269		1,471,114
Ending balance individually evaluated for impairment	$	1,449		—	4,643		1,938		575		—		—		—	—		8,605
Ending balance collectively evaluated for impairment	$	348,182		49,564	620,980		273,381		31,539		7,551		46,506		30,537	54,269		1,462,509
Ending balance loans acquired with deteriorated credit quality	$	—		—	—		—		—		—		—		—	—		—

Summary of Carrying Balances of TDRs

The following table summarizes the carrying balances of TDRs at December 31, 2016 and December 31, 2015 (dollars in thousands):

	2016		2015
Performing TDRs	$	3,277	983
Nonperforming TDRs	1,319		3,121
Total TDRs	$	4,596	4,104

Troubled Debt Restructuring Categorized by Loan

The following table outlines the amount of each troubled debt restructuring categorized by loan classification for the years ended December 31, 2016 and 2015 (dollars in thousands):

	December 31, 2016			December 31, 2015
	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance	Number of Contracts	Pre Modification Outstanding Recorded Investment	Post Modification Outstanding Recorded Investment, Net of Related Allowance
Residential 1-4 family	4	130	130	2	77	77
Multifamily	—	—	—	—	—	—
Commercial real estate	2	1,364	1,244	—	—	—
Construction	—	—	—	1	1,938	1,938
Farmland	1	103	103	—	—	—
Second mortgages	—	—	—	—	—	—
Equity lines of credit	—	—	—	—	—	—
Commercial	—	—	—	—	—	—
Agricultural, installment and other	2	17	17	1	2	1
Total	9	1,614	1,494	4	2,017	2,016

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Debt and Equity Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Summary of Debt and Equity Securities

Debt and equity securities have been classified in the consolidated balance sheet according to management’s intent. Debt and equity securities at December 31, 2016 consist of the following:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	11,856	48	230	11,674
Obligations of states and political subdivisions	24,768		142	439	24,471
	$	36,624	190	669	36,145

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	61,879	—	2,391	59,488
Mortgage-backed:
GSE residential	166,316		496	2,447	164,365
Asset-backed:
SBAP	37,577		9	729	36,857
Obligations of states and political subdivisions	53,429		52	1,606	51,875
	$	319,201	557	7,173	312,585

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

The Company’s classification of securities at December 31, 2015 is as follows:

	Securities Held-To-Maturity
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Mortgage-backed:
Government-sponsored enterprises (GSEs)* residential	$	9,375	60	169	9,266
Obligations of states and political subdivisions	18,820		288	9	19,099
	$	28,195	348	178	28,365

	Securities Available-For-Sale
	In Thousands
	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Estimated Market Value
Government-sponsored enterprises (GSEs)*	$	77,177	215	483	76,909
Mortgage-backed:
GSE residential	192,983		430	1,498	191,915
Asset-backed:
SBAP	31,253		54	273	31,034
Obligations of states and political subdivisions	31,093		274	97	31,270
	$	332,506	973	2,351	331,128

* Such as Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Home Loan Banks, Federal Farm Credit Banks and Government National Mortgage Association.

Maturity of Amortized Cost and Estimated Market Value of Debt Securities

Included in mortgage-backed GSE residential available-for-sale securities are collateralized mortgage obligations totaling $16,015,000 (fair value of $15,814,000) and $14,269,000 (fair value of $14,168,000) at December 31, 2016 and 2015, respectively.

The amortized cost and estimated market value of debt securities at December 31, 2016, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	In Thousands
Securities Held-To-Maturity	Amortized Cost		Estimated Market Value
Due in one year or less	$	2,003	2,013
Due after one year through five years	10,122		10,151
Due after five years through ten years	8,307		8,124
Due after ten years	4,336		4,183
	24,768		24,471
Mortgage-backed securities	11,856		11,674
	$	36,624	36,145

	In Thousands
Securities Available-For-Sale	Amortized Cost		Estimated Market Value
Due in one year or less	$	—	—
Due after one year through five years	16,932		16,749
Due after five years through ten years	72,882		70,589
Due after ten years	25,494		24,025
	115,308		111,363
Mortgage and asset-backed securities	203,893		201,222
	$	319,201	312,585

Sales of Debt and Equity Securities

Results from sales of debt and equity securities are as follows:

	In Thousands
	2016			2015		2014
Gross proceeds	$	90,007		42,845		72,215
Gross realized gains	$	716		261		$	638
Gross realized losses	(256		)	(76	)	(93		)
Net realized gains	$	460		185		$	545

Gross Unrealized Losses and Fair Value of Company's Investments

Available-for-sale and held to maturity securities that have been in a continuous unrealized loss position at December 31, 2016 are as follows:

	In Thousands, Except Number of Securities
	Less than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses		Number of Securities Included	Fair Value		Unrealized Losses
Held to Maturity Securities:
Debt securities:
Mortgage-backed:
GSE residential	$	8,177	$	151	7	$	1,704	$	79	1	$	9,881	$	230
Obligations of states and political subdivisions	16,081		439		41	—		—		—	16,081		439
	$	24,258	$	590	48	$	1,704	$	79	1	$	25,962	$	669
Available-for-Sale Securities:
Debt securities:
GSEs	$	59,488	$	2,391	23	$	—	$	—	—	$	59,488	$	2,391
Mortgage-backed:
GSE residential	124,011		2,350		64	6,918		97		9	130,929		2,447
Asset-backed:
SBAP	33,579		729		17	—		—		—	33,579		729
Obligations of states and political subdivisions	42,801		1,606		116	—		—		—	42,801		1,606
	$	259,879	$	7,076	220	$	6,918	$	97	9	$	266,797	$	7,173

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Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Detail of Premises and Equipment

The detail of premises and equipment at December 31, 2016 and 2015 is as follows:

	In Thousands
	2016			2015
Land	$	17,022		17,022
Buildings	29,937			27,821
Leasehold improvements	368			140
Furniture and equipment	9,760			8,605
Automobiles	304			280
Construction-in-progress	2,851			2,091
	60,242			55,959
Less accumulated depreciation	(15,828		)	(13,859	)
	$	44,414		42,100

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Acquired Intangible Assets and Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The Company's intangible assets result from the excess of purchase price over the applicable book value of the net assets acquired related to outside ownership of two previously 50% owned subsidiaries that the Company acquired 100% of in 2005.

	In Thousands
	2016		2015
Goodwill:
Balance at January 1,	$	4,805	4,805
Goodwill acquired during year	—		—
Impairment loss	—		—
Balance at December 31,	$	4,805	4,805

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Deposits (Tables)

12 Months Ended

Dec. 31, 2016

Banking and Thrift [Abstract]

Deposits

Deposits at December 31, 2016 and 2015 are summarized as follows:

	In Thousands
	2016		2015
Demand deposits	$	226,971	197,062
Savings accounts	123,749		107,829
Negotiable order of withdrawal accounts	454,487		445,967
Money market demand accounts	628,321		523,895
Certificates of deposit $250,000 or greater	64,938		64,236
Other certificates of deposit	360,871		364,274
Individual retirement accounts $250,000 or greater	8,417		9,074
Other individual retirement accounts	74,381		77,513
	$	1,942,135	1,789,850

Principal Maturities of Certificate of Deposit and Individual Retirement Accounts

Principal maturities of certificates of deposit and individual retirement accounts at December 31, 2016 are as follows:

	(In Thousands)
Maturity	Total
2017	$	246,092
2018	131,358
2019	76,942
2020	34,783
2021	19,432
Thereafter	—
	$	508,607

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Non-Interest Income and Non-Interest Expense (Tables)

12 Months Ended

Dec. 31, 2016

Other Income and Expenses [Abstract]

Components of Non-Interest Income and Non-Interest Expense

The significant components of non-interest income and non-interest expense for the years ended December 31, 2016, 2015 and 2014 are presented below:

	In Thousands
	2016		2015	2014
Non-interest income:
Service charges on deposits	$	5,769	5,148	4,374
Other fees and commissions	10,260		9,321	8,519
BOLI and annuity earnings	832		877	376
Security gains, net	460		185	545
Fees and gains on sales of loans	4,355		4,048	2,780
Gain on sale of other real estate, net	52		362	77
Gain on sale of fixed assets, net	—		—	7
	$	21,728	19,941	16,678

	In Thousands
	2016		2015	2014
Non-interest expense:
Employee salaries and benefits	$	34,106	31,556	27,793
Occupancy expenses	3,638		3,444	3,100
Furniture and equipment expenses	2,019		2,063	1,767
Loss on the sale of fixed assets, net	73		53	—
Loss on sales of other assets, net	1		2	6
Data processing expenses	2,576		2,476	2,313
FDIC insurance	968		953	1,049
Directors’ fees	691		735	720
Other operating expenses	13,265		10,877	10,957
	$	57,337	52,159	47,705

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components of the Net Deferred Tax Asset

The components of the net deferred tax asset are as follows:

	In Thousands
	2016			2015
Deferred tax asset:
Federal	$	11,316		8,954
State	1,863			1,380
	13,179			10,334
Deferred tax liability:
Federal	(2,010		)	(1,905	)
State	(411		)	(390	)
	(2,421		)	(2,295	)
Net deferred tax asset	$	10,758		8,039

Deferred Tax Assets (Liabilities) in Which Tax Effects of Significant Item that Gave Rise

The tax effects of each type of significant item that gave rise to deferred tax assets (liabilities) are:

	In Thousands
	2016			2015
Financial statement allowance for loan losses in excess of tax allowance	$	8,252		8,317
Excess of depreciation deducted for tax purposes over the amounts deducted in the financial statements	(1,941		)	(1,815	)
Financial statement deduction for deferred compensation in excess of deduction for tax purposes	1,423			1,174
Writedown of other real estate not deductible for income tax purposes until sold	287			162
Financial statement income on FHLB stock dividends not recognized for tax purposes	(480		)	(480	)
Unrealized loss on securities available-for-sale	2,533			528
Other items, net	684			153
	$	10,758		8,039

Summary of Components of Income Tax Expense (Benefit)

The components of income tax expense (benefit) are summarized as follows:

	In Thousands
	Federal			State		Total
2016
Current	$	12,910		2,095		15,005
Deferred	(136		)	(28	)	(164	)
Total	$	12,774		2,067		14,841
2015
Current	$	10,871		1,653		12,524
Deferred	1,028			210		1,238
Total	$	11,899		1,863		13,762
2014
Current	$	10,201		1,475		11,676
Deferred	526			108		634
Total	$	10,727		1,583		12,310

Reconciliation of Actual Income Tax Expense to the Expected Tax Expense

A reconciliation of actual income tax expense of $14,841,000, $13,762,000 and $12,310,000 for the years ended December 31, 2016, 2015 and 2014, respectively, to the “expected” tax expense (computed by applying the statutory rate of 34% to earnings before income taxes) is as follows:

	In Thousands
	2016			2015		2014
Computed “expected” tax expense	$	13,761		12,793		11,250
State income taxes, net of Federal income tax benefit	1,364			1,243		1,029
Tax exempt interest, net of interest expense exclusion	(401		)	(266	)	(244	)
Federal income tax rate in excess of statutory rate related to taxable income over $10 million	370			312		290
Earnings on cash surrender value of life insurance	(283		)	(298	)	(128	)
Expenses not deductible for tax purposes	40			35		37
Stock based compensation expense	35			13		14
Other	(45		)	(70	)	62
	$	14,841		13,762		12,310

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Commitments and Contingent Liabilities (Tables)

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Rental Payments Under Operating Leases

Wilson Bank leases land for certain branch facilities and automatic teller machine locations. Future minimum rental payments required under the terms of the noncancellable leases are as follows:

Years Ending December 31,	In Thousands
2017	$	244
2018	218
2019	222
2020	228
2021	163

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Financial Instruments with Off-Balance-Sheet Risk (Tables)

12 Months Ended

Dec. 31, 2016

Investments, All Other Investments [Abstract]

Financial Instruments Whose Contract Amounts Represent Credit Risk

	In Thousands
	Contract or Notional Amount
	2016		2015
Financial instruments whose contract amounts represent credit risk:
Unused commitments to extend credit	$	483,818	391,553
Standby letters of credit	50,660		36,631
Total	$	534,478	428,184

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Regulatory Matters and Restrictions on Dividends (Tables)

12 Months Ended

Dec. 31, 2016

Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]

Summary of Actual Capital Amounts and Ratios, Regulatory Capital Ratios and Basel III Minimum Requirements

The Company’s and Wilson Bank’s actual capital amounts and ratios as of December 31, 2016 and 2015, are also presented in the table:

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2016
Total capital to risk weighted assets:
Consolidated	$	266,954	12.7	%	$	181,298	8.625	%	N/A		N/A
Wilson Bank	265,142		12.6		181,496		8.625		$	210,430	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		139,295		6.625		N/A		N/A
Wilson Bank	242,085		11.5		139,462		6.625		168,407		8.0
Common equity Tier 1 capital to risk weighted assets:
Consolidated	243,897		11.6		107,756		5.125		N/A		N/A
Wilson Bank	242,085		11.5		107,886		5.125		136,831		6.5
Tier 1 capital to average assets:
Consolidated	243,897		11.2		87,106		4.0		N/A		N/A
Wilson Bank	242,085		11.1		87,238		4.0		109,047		5.0

	Actual				Regulatory Minimum Capital Requirement				Regulatory Minimum To Be Well Capitalized
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(dollars in thousands)
December 31, 2015
Total capital to risk weighted assets:
Consolidated	$	240,848	14.1	%	$	136,588	8.0	%	N/A		N/A
Wilson Bank	238,963		14.0		136,575		8.0		$	170,719	10.0	%
Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		102,441		6.0		N/A		N/A
Wilson Bank	217,600		12.8		102,431		6.0		136,575		8.0
Common Equity Tier 1 capital to risk weighted assets:
Consolidated	219,483		12.9		76,831		4.5		N/A		N/A
Wilson Bank	217,600		12.8		76,823		4.5		110,967		6.5
Tier 1 capital to average assets:
Consolidated	219,483		11.1		79,361		4.0		N/A		N/A
Wilson Bank	217,600		11.0		79,354		4.0		99,192		5.0

Basel III Requirements [Member]

Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]

Summary of Actual Capital Amounts and Ratios, Regulatory Capital Ratios and Basel III Minimum Requirements

The Basel III minimum requirements after giving effect to the buffer as of January 1, of each year are as follows:

	2016		2017		2018		2019
Common Equity Tier I Ratio	5.125	%	5.75	%	6.375	%	7.0	%
Tier I Capital to Risk Weighted Assets Ratio	6.625	%	7.25	%	7.875	%	8.5	%
Total Capital to Risk Weighted Assets Ratio	8.625	%	9.25	%	9.875	%	10.5	%

Common Equity Tier I Ratio [Member]

Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]

Summary of Actual Capital Amounts and Ratios, Regulatory Capital Ratios and Basel III Minimum Requirements

A summary of the changes to the Regulatory Capital Ratios are as follows:

	Guideline in Effect At 12/31/2014				Basel III Requirements
	Minimum		Well Capitalized		Minimum		Well Capitalized
Common Equity Tier I Ratio (Common Equity to Risk Weighted Assets)	Not Applicable		Not Applicable		4.5	%	6.5	%
Tier I Capital to Risk Weighted Assets	4	%	6	%	6	%	8	%
Total Capital to Risk Weighted Assets	8	%	10	%	8	%	10	%
Tier I Leverage Ratio	4	%	5	%	4	%	5	%

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Stock Option Plan (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Weighted-Average Black-Scholes Fair Value Assumptions

The fair value of each stock option and cash settled SAR grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions used for grants in 2016, 2015 and 2014:

	2016		2015		2014
Expected dividends	1.21	%	1.00	%	1.11	%
Expected term (in years)	8.71		8.96		9.33
Expected volatility	26	%	22	%	23	%
Risk-free rate	2.02	%	2.02	%	2.62	%

Summary of Stock Option Activity

A summary of the stock option and SAR activity for 2016, 2015 and 2014 is as follows:

	2016				2015				2014
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of year	49,895		$	30.19	58,092		$	28.52	63,539		$	27.32
Granted	140,997		40.36		4,333		36.23		4,333		34.31
Exercised	(5,545	)	27.38		(10,177	)	23.69		(8,192	)	22.68
Forfeited or expired	(1,500	)	28.44		(2,353	)	28.22		(1,588	)	26.52
Outstanding at end of year	183,847		$	38.08	49,895		$	30.19	58,092		$	28.52
Options and SARs exercisable at year end	13,553		$	29.29	13,085		$	28.55	16,085		$	25.94

Summary of Information about Stock Options

The following table summarizes information about stock options and SARs for the year ended December 31, 2016:

	Options and SARs Outstanding					Options and SARs Exercisable
Range of Exercise Prices	Number Outstanding at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Number Exercisable at 12/31/16		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term
$ 22.22 - $ 33.56	33,451		$	29.33	3.70 years	12,453		$	28.78	3.28 years
$ 33.94 - $ 40.75	150,396		$	40.03	9.67 years	1,100		$	35.06	7.57 years
	183,847					13,553
Aggregate intrinsic value (in thousands)	$	490				$	155

Schedule of Nonvested Share Activity

	Shares		Weighted Average Grant Date Fair Value
Non-vested options and SARs at January 1, 2016	36,810		7.14
Granted	140,997		11.29
Vested	(6,646	)	5.95
Forfeited	(867	)	5.93
Non-vested options and SARs at December 31, 2016	170,294		10.63

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Summary of Components Comprising Basic and Diluted Earnings Per Share

The following is a summary of the components comprising basic and diluted earnings per share (“EPS”):

	In Thousands (except share data)
	2016		2015	2014
Basic EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator - Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Basic earnings per common share	$	2.49	2.35	2.06
Diluted EPS Computation:
Numerator - Earnings available to common stockholders	$	25,633	23,863	20,777
Denominator:
Weighted average number of common shares outstanding	10,279,332		10,165,477	10,062,783
Dilutive effect of stock options	4,996		4,703	5,857
	10,284,328		10,170,180	10,068,640
Diluted earnings per common share	$	2.49	2.35	2.06

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Disclosures About Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present the financial instruments carried at fair value as of December 31, 2016 and December 31, 2015, by caption on the consolidated balance sheet and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	59,488	—	59,488	—
Mortgage-backed securities	164,365		—	164,365	—
Asset-backed securities	36,857		—	36,857	—
State and municipal securities	51,875		—	51,875	—
Total investment securities available-for-sale	312,585		—	312,585	—
Loans held for sale	14,788		—	14,788	—
Other assets	28,616		—	—	28,616
Total assets at fair value	$	355,989	—	327,373	28,616

	Measured on a Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2015
Investment securities available-for-sale:
U.S. Government sponsored enterprises	$	76,909	—	76,909	—
Mortgage-backed securities	191,915		—	191,915	—
Asset-backed securities	31,034		—	31,034	—
State and municipal securities	31,270		—	31,270	—
Total investment securities available-for-sale	331,128		—	331,128	—
Loans held for sale	10,135		—	10,135	—
Other assets	26,672		—	—	26,672
Total assets at fair value	$	367,935	—	341,263	26,672

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

	Measured on a Non-Recurring Basis
	Total Carrying Value in the Consolidated Balance Sheet		Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Other real estate owned	$	4,527	—	—	4,527
Impaired loans, net (¹)	6,792		—	—	6,792
Total	$	11,319	—	—	11,319
December 31, 2015
Other real estate owned	$	5,410	—	—	5,410
Impaired loans, net (¹)	8,436		—	—	8,436
Total	$	13,846	—	—	13,846

(1) Amount is net of a valuation allowance of $316,000 at December 31, 2016 and $194,000 at December 31, 2015 as required by ASC 310, “Receivables.”

Changes in Fair Value Due to Observable Factors

The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2016 and 2015 (including the change in fair value) for financial instruments classified by the Company within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):

	For the Year Ended December 31,
	2016			2015
	Other Assets		Other Liabilities	Other Assets		Other Liabilities
Fair value, January 1	$	17,733	—	$	13,344	—
Total realized gains included in income	673		—	532		—
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	—		—	—		—
Purchases, issuances and settlements, net	10,210		—	3,857		—
Transfers out of Level 3	—		—	—		—
Fair value, December 31	$	28,616	—	$	17,733	—
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	$	673	—	$	532	—

Carrying Value and Estimated Fair Value of Financial Instruments

The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of the Company’s financial instruments at December 31, 2016 and December 31, 2015. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization.

(in Thousands)	Carrying/ Notional Amount		Estimated Fair Value (¹)	Quoted Market Prices in an Active Market (Level 1)	Models with Significant Observable Market Parameters (Level 2)	Models with Significant Unobservable Market Parameters (Level 3)
December 31, 2016
Financial assets:
Securities held-to-maturity	$	36,624	36,145	—	36,145	—
Loans, net	1,667,088		1,673,568	—	—	1,673,568
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,942,871		1,631,032	—	—	1,631,032
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—
December 31, 2015
Financial assets:
Securities held-to-maturity	$	28,195	28,365	—	28,365	—
Loans, net	1,443,179		1,443,738	—	—	1,443,738
Financial liabilities:
Deposits and securities sold under agreements to repurchase	1,791,885		1,549,414	—	—	1,549,414
Off-balance sheet instruments:
Commitments to extend credit	—		—	—	—	—
Standby letters of credit	—		—	—	—	—

(1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

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Wilson Bank Holding Company - Parent Company Financial Information (Tables)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Balance Sheets - Parent Company Only

Balance Sheets

December 31, 2016 and 2015

	Dollars In Thousands
	2016				2015
ASSETS
Cash	$	1,678		*	1,685		*
Investment in wholly-owned commercial bank subsidiary	242,808			*	221,555		*
Refundable income taxes	169				198
Total assets	$	244,655			223,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Stock appreciation rights payable	$	35			—
Total liabilities	$	35			—
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	$	20,639			15,304
Additional paid-in capital	60,541				61,339
Retained earnings	167,523				147,646
Net unrealized losses on available-for-sale securities, net of income taxes of $2,533 and $527, respectively	(4,083		)		(851	)
Total stockholders’ equity	244,620				223,438
Total liabilities and stockholders’ equity	$	244,655			223,438

* Eliminated in consolidation.

Statements of Earnings and Comprehensive Earnings - Parent Company Only

Statements of Earnings and Comprehensive Earnings

Three Years Ended December 31, 2016

	Dollars In Thousands
	2016				2015			2014
Expenses:
Directors’ fees	$	327			350			351
Other	194				152			191
Loss before Federal income tax benefits and equity in undistributed earnings of commercial bank subsidiary	(521		)		(502	)		(542	)
Federal income tax benefits	169				198			212
	(352		)		(304	)		(330	)
Equity in undistributed earnings of commercial bank subsidiary	25,985			*	24,167		*	21,107		*
Net earnings	25,633				23,863			20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale- securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively	(2,948		)		(58	)		3,953
Reclassification adjustments for net gains included in net earnings, net of taxes of $176, $71, and $209 respectively	(284		)		(114	)		(336	)
Other comprehensive earnings (losses)	(3,232		)		(172	)		3,617
Comprehensive earnings	$	22,401			23,691			24,394

* Eliminated in consolidation

Statements of Changes in Stockholders' Equity - Parent Company Only

Statements of Changes in Stockholders’ Equity

Three Years Ended December 31, 2016

	Dollars In Thousands
	Common Stock			Additional Paid-In Capital		Retained Earnings		Net Unrealized Gain (Loss) On Available-For-Sale Securities		Total
Balance December 31, 2013	$	14,997		54,519		112,451		(4,296	)	177,671
Cash dividends declared, $.45 per share	—			—		(4,510	)	—		(4,510	)
Issuance of 69,289 shares of stock pursuant to dividend reinvestment plan	139			3,065		—		—		3,204
Issuance of 6,144 shares of stock pursuant to exercise of stock options	12			174		—		—		186
Share based compensation expense	—			41		—		—		41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245	—			—		—		3,617		3,617
Repurchase of 2,053 common shares	(4		)	(90	)	—		—		(94	)
Net earnings for the year	—			—		20,777		—		20,777
Balance December 31, 2014	15,144			57,709		128,718		(679	)	200,892
Cash dividends declared, $.49 per share	—			—		(4,935	)	—		(4,935	)
Issuance of 72,543 shares of stock pursuant to dividend reinvestment plan	145			3,366		—		—		3,511
Issuance of 7,633 shares of stock pursuant to exercise of stock options	15			226		—		—		241
Share based compensation expense	—			38		—		—		38
Net change in fair value of available-for-sale securities during the year, net of taxes of $106	—			—		—		(172	)	(172	)
Net earnings for the year	—			—		23,863		—		23,863
Balance December 31, 2015	15,304			61,339		147,646		(851	)	223,438
Cash dividends declared, $.56 per share	—			—		(5,756	)	—		(5,756	)
Issuance of 98,318 shares of stock pursuant to dividend reinvestment plan	197			4,119		—		—		4,316
Issuance of 5,120 shares of stock pursuant to exercise of stock options	10			142		—		—		152
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split	5,128			(5,128	)	—		—		—
Share based compensation expense	—			69		—		—		69
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,006	—			—		—		(3,232	)	(3,232	)
Net earnings for the year	—			—		25,633		—		25,633
Balance December 31, 2016	$	20,639		60,541		167,523		(4,083	)	244,620

Statements of Cash Flows - Parent Company Only

Statements of Cash Flows

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars In Thousands
	2016			2015		2014
Cash flows from operating activities:
Cash paid to suppliers and other	$	(417	)	(464	)	(501	)
Tax benefits received	198			212		173
Net cash used in operating activities	(219		)	(252	)	(328	)
Cash flows from investing activities:
Dividends received from commercial bank subsidiary	1,500			2,000		—
Net cash provided by investing activities	1,500			2,000		—
Cash flows from financing activities:
Dividends paid	(5,756		)	(4,935	)	(4,510	)
Proceeds from sale of stock pursuant to dividend reinvestment	4,316			3,511		3,204
Proceeds from exercise of stock options	152			241		186
Common shares repurchased	—			—		(94	)
Net cash used in financing activities	(1,288		)	(1,183	)	(1,214	)
Net increase (decrease) in cash and cash equivalents	(7		)	565		(1,542	)
Cash and cash equivalents at beginning of year	1,685			1,120		2,662
Cash and cash equivalents at end of year	$	1,678		1,685		1,120

WILSON BANK HOLDING COMPANY

(Parent Company Only)

Statements of Cash Flows, Continued

Three Years Ended December 31, 2016

Increase (Decrease) in Cash and Cash Equivalents

	Dollars in Thousands
	2016			2015		2014
Reconciliation of net earnings to net cash used in operating activities:
Net earnings	$	25,633		23,863		20,777
Adjustments to reconcile net earnings to net cash used in operating activities:
Equity in earnings of commercial bank subsidiary	(25,985		)	(24,167	)	(21,107	)
Decrease (increase) in refundable income taxes	29			14		(39	)
Share based compensation expense	104			38		41
Total adjustments	(25,852		)	(24,115	)	(21,105	)
Net cash used in operating activities	$	(219	)	(252	)	(328	)

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Results of Operations for the Four Quarters

Selected quarterly results of operations for the four quarters ended December 31 are as follows:

	(In Thousands, except per share data)
	2016					2015					2014
	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter		Third Quarter	Second Quarter	First Quarter
Interest income	$	22,078	21,454	20,877	20,337	$	20,213	19,982	19,617	19,027	$	19,180	18,980	18,286	17,934
Interest expense	1,990		2,077	2,106	2,111	2,087		2,114	2,191	2,216	2,397		2,426	2,437	2,508
Net interest income	20,088		19,377	18,771	18,226	18,126		17,868	17,426	16,811	16,783		16,554	15,849	15,426
Provision for loan losses	89		141	82	67	123		109	81	75	134		87	28	249
Earnings before income taxes	10,120		11,095	10,162	9,097	8,720		9,862	9,889	9,154	8,888		8,772	8,503	6,924
Net earnings	6,802		6,918	6,270	5,643	5,958		6,088	6,201	5,616	6,100		5,351	5,154	4,172
Basic earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41
Diluted earnings per common share	0.66		0.67	0.61	0.55	0.59		0.60	0.61	0.55	0.61		0.53	0.51	0.41

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Summary of Significant Accounting Policies - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($) security Branch loan Component	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Significant Accounting Policies [Line Items]
Number of full service branches | Branch	25
Loan review target (as a percent)	100.00%
Existing loan review, Aggregate	$ 1,000,000
New loan review, Aggregate	$ 500,000
Number of loans renewed | loan	4
Securities classified as trading securities | security	0
Federal Home Loan Bank Stock minimum required investment	$ 2,400,000
Impairment loss recognized related to Goodwill	$ 0	$ 0
Federal fund maturity period	1 day
Number of components of income tax expense | Component	2
Deferred income tax benefit realizable (as a percent)	50.00%
Tax benefit (as a percent)	50.00%
Advertising costs Incurred	$ 2,310,000	$ 2,337,000	$ 1,884,000
Stock split, conversion ratio	1.3333
Residential 1-4 Family [Member]
Significant Accounting Policies [Line Items]
Percentage of Investment	22.00%	24.00%
Construction Mortgage Loans [Member]
Significant Accounting Policies [Line Items]
Percentage of Investment	20.00%	19.00%
Commercial Real Estate [Member]
Significant Accounting Policies [Line Items]
Percentage of Investment	42.00%	43.00%
Commercial [Member]
Significant Accounting Policies [Line Items]
Accruing loans past due period	90 days
Credit Card Loans and Other Personal Loans [Member]
Significant Accounting Policies [Line Items]
Accruing loans past due period	180 days

XML

Loans and Allowance for Loan Losses - Schedule of Details on Loans of Company (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	$ 1,696,425	$ 1,471,114
Net deferred loan fees	(6,606)	(5,035)
Total loans	1,689,819	1,466,079
Less: Allowance for loan losses	(22,731)	(22,900)	$ (22,572)
Loans, net	1,667,088	1,443,179
Agricultural [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	1,562	1,552
Residential 1-4 Family [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	376,872	349,631
Commercial [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	704,807	625,623
Farmland [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	37,519	32,114
Construction [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	339,580	275,319
Second mortgages [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	9,166	7,551
Less: Allowance for loan losses	(112)	(106)	$ (61)
Equity line of credit [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	56,005	46,506
Mortgage loans on real estate [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	1,603,857	1,386,308
Multifamily [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	79,908	49,564
Commercial [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	37,677	30,537
Consumer [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	44,274	43,467
Consumer [Member] | Personal [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	41,117	40,196
Consumer [Member] | Credit cards [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	3,157	3,271
Other [Member]
Loans and Leases Receivable Disclosure [Line Items]
Total Loans	$ 9,055	$ 9,250

XML

Loans and Allowance for Loan Losses - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) loan	Dec. 31, 2015 USD ($) loan	Dec. 31, 2014 USD ($)
Financing Receivable, Recorded Investment [Line Items]
Variable rate loans	$ 1,178,865	$ 970,428
Fixed rate loans	517,560	500,686
Prevailing interest rate loans	9,692	6,576	$ 11,744
Nonaccrual loans interest lost	$ 202	$ 291
Troubled debt restructuring number of loans | loan	0	2
Troubled debt restructurings subsequently default within twelve months		$ 1,060
Loans in secondary market	$ 161,114	153,882	105,078
Gain on sale of loans in secondary market	4,355	4,048	$ 2,780
Loans sold with recourse	124,480	111,521
Nonperforming [Member]
Financing Receivable, Recorded Investment [Line Items]
Potential problem loans	$ 16,200	$ 25,200
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Amortization term, lower range	15 years
Amortization term, upper range	30 years
Maturity period, lower range	5 years
Maturity period, upper range	15 years

XML

Loans and Allowance for Loan Losses - Schedule of Loans and Leases Receivable Related Parties (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Loans and Leases Receivable, Related Parties [Roll Forward]
Balance, January 1	$ 6,576	$ 11,744
New loans and renewals during the year	16,295	12,329
Repayments (including loans paid by renewal) during the year	(13,179)	(17,497)
Balance, December 31	$ 9,692	$ 6,576

XML

Loans and Allowance for Loan Losses - Company's Impaired Loans (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Recorded Investment	$ 7,108	$ 8,630
Unpaid Principal Balance	7,089	8,605
Related Allowance	316	194
Average Recorded Investment	7,010	11,037
Interest Income Recognized	169	207
Residential 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	690	1,467
Unpaid Principal Balance	679	1,449
Related Allowance	196	194
Average Recorded Investment	690	1,509
Interest Income Recognized	39	86
Multifamily [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,691	4,645
Unpaid Principal Balance	4,689	4,643
Related Allowance	120	0
Average Recorded Investment	4,463	8,467
Interest Income Recognized	43	24
Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,623	1,943
Unpaid Principal Balance	1,618	1,938
Related Allowance	0	0
Average Recorded Investment	1,778	486
Interest Income Recognized	82	97
Farmland [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	104	575
Unpaid Principal Balance	103	575
Related Allowance	0	0
Average Recorded Investment	79	575
Interest Income Recognized	5	0
Second mortgages [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
Agricultural, Installment and Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With No Related Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	6,125	7,796
Unpaid Principal Balance	6,115	7,778
Average Recorded Investment	6,359	6,689
Interest Income Recognized	132	160
With No Related Allowance Recorded [Member] | Residential 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	150	633
Unpaid Principal Balance	148	622
Average Recorded Investment	150	724
Interest Income Recognized	7	39
With No Related Allowance Recorded [Member] | Multifamily [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With No Related Allowance Recorded [Member] | Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	4,248	4,645
Unpaid Principal Balance	4,246	4,643
Average Recorded Investment	4,352	5,048
Interest Income Recognized	38	24
With No Related Allowance Recorded [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	1,623	1,943
Unpaid Principal Balance	1,618	1,938
Average Recorded Investment	1,778	486
Interest Income Recognized	82	97
With No Related Allowance Recorded [Member] | Farmland [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	104	575
Unpaid Principal Balance	103	575
Average Recorded Investment	79	431
Interest Income Recognized	5	0
With No Related Allowance Recorded [Member] | Second mortgages [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With No Related Allowance Recorded [Member] | Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With No Related Allowance Recorded [Member] | Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With No Related Allowance Recorded [Member] | Agricultural, Installment and Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	983	834
Unpaid Principal Balance	974	827
Related Allowance	316	194
Average Recorded Investment	651	4,348
Interest Income Recognized	37	47
With Allowance Recorded [Member] | Residential 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	540	834
Unpaid Principal Balance	531	827
Related Allowance	196	194
Average Recorded Investment	540	785
Interest Income Recognized	32	47
With Allowance Recorded [Member] | Multifamily [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	443	0
Unpaid Principal Balance	443	0
Related Allowance	120	0
Average Recorded Investment	111	3,419
Interest Income Recognized	5	0
With Allowance Recorded [Member] | Construction [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Farmland [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	144
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Second mortgages [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Commercial [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	0	0
With Allowance Recorded [Member] | Agricultural, Installment and Other [Member]
Financing Receivable, Impaired [Line Items]
Recorded Investment	0	0
Unpaid Principal Balance	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Interest Income Recognized	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Loans on Nonaccrual Status (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	$ 3,565	$ 4,909
Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	41
Multifamily [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	0
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	3,255	4,293
Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	0
Farmland [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	310	575
Second mortgages [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	0
Equity Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	0
Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	0	0
Agricultural, Installment and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on Nonaccrual Status, Total	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Credit Quality Indicators (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Credit Risk Profile by Internally Assigned Grade
Total Loans	$ 1,696,425	$ 1,471,114
Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	1,680,267	1,445,897
Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	6,881	16,062
Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	9,277	9,155
Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Residential 1-4 Family [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	376,872	349,631
Residential 1-4 Family [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	367,987	340,019
Residential 1-4 Family [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	5,616	6,957
Residential 1-4 Family [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	3,269	2,655
Residential 1-4 Family [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Multifamily [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	79,908	49,564
Multifamily [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	79,908	49,564
Multifamily [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Multifamily [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Multifamily [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Commercial Real Estate [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	704,807	625,623
Commercial Real Estate [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	699,314	612,318
Commercial Real Estate [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	668	8,227
Commercial Real Estate [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	4,825	5,078
Commercial Real Estate [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Construction [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	339,580	275,319
Construction [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	339,354	274,926
Construction [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	121	277
Construction [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	105	116
Construction [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Farmland [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	37,519	32,114
Farmland [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	36,675	30,933
Farmland [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	147	200
Farmland [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	697	981
Farmland [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Second mortgages [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	9,166	7,551
Second mortgages [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	8,748	7,097
Second mortgages [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	303	353
Second mortgages [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	115	101
Second mortgages [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Equity Lines of Credit [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	56,005	46,506
Equity Lines of Credit [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	55,850	46,361
Equity Lines of Credit [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Equity Lines of Credit [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	155	145
Equity Lines of Credit [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Commercial [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	37,677	30,537
Commercial [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	37,677	30,525
Commercial [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	10
Commercial [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	2
Commercial [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	0	0
Agricultural, Installment and Other [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	54,891	54,269
Agricultural, Installment and Other [Member] | Pass [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	54,754	54,154
Agricultural, Installment and Other [Member] | Special Mention [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	26	38
Agricultural, Installment and Other [Member] | Substandard [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	111	77
Agricultural, Installment and Other [Member] | Doubtful [Member]
Credit Risk Profile by Internally Assigned Grade
Total Loans	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Age Analysis of Past Due Loans (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	$ 14,226	$ 13,783
Current	1,682,199	1,457,331
Total Loans	1,696,425	1,471,114
Recorded Investment Greater Than 90 Days and Accruing	1,807	1,978
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	6,052	5,882
Current	370,820	343,749
Total Loans	376,872	349,631
Recorded Investment Greater Than 90 Days and Accruing	1,434	1,371
Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	0
Current	79,908	49,564
Total Loans	79,908	49,564
Recorded Investment Greater Than 90 Days and Accruing	0	0
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	3,551	4,465
Current	701,256	621,158
Total Loans	704,807	625,623
Recorded Investment Greater Than 90 Days and Accruing	80	0
Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,947	1,188
Current	337,633	274,131
Total Loans	339,580	275,319
Recorded Investment Greater Than 90 Days and Accruing	22	0
Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,629	995
Current	35,890	31,119
Total Loans	37,519	32,114
Recorded Investment Greater Than 90 Days and Accruing	100	311
Second mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	188	91
Current	8,978	7,460
Total Loans	9,166	7,551
Recorded Investment Greater Than 90 Days and Accruing	11	4
Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	205	569
Current	55,800	45,937
Total Loans	56,005	46,506
Recorded Investment Greater Than 90 Days and Accruing	17	197
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	41	41
Current	37,636	30,496
Total Loans	37,677	30,537
Recorded Investment Greater Than 90 Days and Accruing	0	39
Agricultural, Installment and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	613	552
Current	54,278	53,717
Total Loans	54,891	54,269
Recorded Investment Greater Than 90 Days and Accruing	143	56
30-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	5,919	5,244
30-59 Days Past Due [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	3,311	3,272
30-59 Days Past Due [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	0
30-59 Days Past Due [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	41	172
30-59 Days Past Due [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,872	958
30-59 Days Past Due [Member] | Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	56	88
30-59 Days Past Due [Member] | Second mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	177	87
30-59 Days Past Due [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	40	283
30-59 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	37	2
30-59 Days Past Due [Member] | Agricultural, Installment and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	385	382
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	2,935	1,652
60-89 Days Past Due [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,307	1,198
60-89 Days Past Due [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	0
60-89 Days Past Due [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	175	0
60-89 Days Past Due [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	53	230
60-89 Days Past Due [Member] | Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,163	21
60-89 Days Past Due [Member] | Second mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	0
60-89 Days Past Due [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	148	89
60-89 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	4	0
60-89 Days Past Due [Member] | Agricultural, Installment and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	85	114
Nonaccrual and Greater than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	5,372	6,887
Nonaccrual and Greater than 90 Days [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	1,434	1,412
Nonaccrual and Greater than 90 Days [Member] | Multifamily [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	0
Nonaccrual and Greater than 90 Days [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	3,335	4,293
Nonaccrual and Greater than 90 Days [Member] | Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	22	0
Nonaccrual and Greater than 90 Days [Member] | Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	410	886
Nonaccrual and Greater than 90 Days [Member] | Second mortgages [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	11	4
Nonaccrual and Greater than 90 Days [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	17	197
Nonaccrual and Greater than 90 Days [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	0	39
Nonaccrual and Greater than 90 Days [Member] | Agricultural, Installment and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Nonaccrual and Past Due	$ 143	$ 56

XML

Loans and Allowance for Loan Losses - Transactions in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for loan losses:
Beginning balance	$ 22,900	$ 22,572
Provision	379	388
Charge-offs	(960)	(1,104)
Recoveries	412	1,044
Ending balance	22,731	22,900
Ending balance individually evaluated for impairment	316	194
Ending balance collectively evaluated for impairment	22,415	22,706
Loans:
Ending balance	1,696,425	1,471,114
Ending balance individually evaluated for impairment	7,089	8,605
Ending balance collectively evaluated for impairment	1,689,336	1,462,509
Residential 1-4 Family [Member]
Allowance for loan losses:
Beginning balance	5,024	5,582
Provision	(400)	(290)
Charge-offs	(109)	(311)
Recoveries	56	43
Ending balance	4,571	5,024
Ending balance individually evaluated for impairment	196	194
Ending balance collectively evaluated for impairment	4,375	4,830
Loans:
Ending balance	376,872	349,631
Ending balance individually evaluated for impairment	679	1,449
Ending balance collectively evaluated for impairment	376,193	348,182
Multifamily [Member]
Allowance for loan losses:
Beginning balance	619	172
Provision	220	447
Charge-offs	0	0
Recoveries	0	0
Ending balance	839	619
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	839	619
Loans:
Ending balance	79,908	49,564
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	79,908	49,564
Commercial Real Estate [Member]
Allowance for loan losses:
Beginning balance	9,986	9,578
Provision	(399)	(267)
Charge-offs	(100)	(44)
Recoveries	54	719
Ending balance	9,541	9,986
Ending balance individually evaluated for impairment	120	0
Ending balance collectively evaluated for impairment	9,421	9,986
Loans:
Ending balance	704,807	625,623
Ending balance individually evaluated for impairment	4,689	4,643
Ending balance collectively evaluated for impairment	700,118	620,980
Construction [Member]
Allowance for loan losses:
Beginning balance	5,136	5,578
Provision	283	(455)
Charge-offs	(66)	(26)
Recoveries	34	39
Ending balance	5,387	5,136
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	5,387	5,136
Loans:
Ending balance	339,580	275,319
Ending balance individually evaluated for impairment	1,618	1,938
Ending balance collectively evaluated for impairment	337,962	273,381
Farmland [Member]
Allowance for loan losses:
Beginning balance	654	795
Provision	2	(142)
Charge-offs	0	0
Recoveries	2	1
Ending balance	658	654
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	658	654
Loans:
Ending balance	37,519	32,114
Ending balance individually evaluated for impairment	103	575
Ending balance collectively evaluated for impairment	37,416	31,539
Second mortgages [Member]
Allowance for loan losses:
Beginning balance	106	61
Provision	2	87
Charge-offs	0	(45)
Recoveries	4	3
Ending balance	112	106
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	112	106
Loans:
Ending balance	9,166	7,551
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	9,166	7,551
Equity Lines of Credit [Member]
Allowance for loan losses:
Beginning balance	594	304
Provision	66	303
Charge-offs	0	(14)
Recoveries	15	1
Ending balance	675	594
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	675	594
Loans:
Ending balance	56,005	46,506
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	56,005	46,506
Commercial [Member]
Allowance for loan losses:
Beginning balance	301	176
Provision	81	118
Charge-offs	(11)	0
Recoveries	15	7
Ending balance	386	301
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	386	301
Loans:
Ending balance	37,677	30,537
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	37,677	30,537
Agricultural, Installment and Other [Member]
Allowance for loan losses:
Beginning balance	480	326
Provision	524	587
Charge-offs	(674)	(664)
Recoveries	232	231
Ending balance	562	480
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	562	480
Loans:
Ending balance	54,891	54,269
Ending balance individually evaluated for impairment	0	0
Ending balance collectively evaluated for impairment	54,891	54,269
Receivables Acquired with Deteriorated Credit Quality [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Residential 1-4 Family [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Multifamily [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial Real Estate [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Construction [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Farmland [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Second mortgages [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Equity Lines of Credit [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Commercial [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	0	0
Receivables Acquired with Deteriorated Credit Quality [Member] | Agricultural, Installment and Other [Member]
Allowance for loan losses:
Ending balance loans acquired with deteriorated credit quality	0	0
Loans:
Ending balance loans acquired with deteriorated credit quality	$ 0	$ 0

XML

Loans and Allowance for Loan Losses - Summary of Carrying Balances of TDRs (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financing Receivable, Modifications [Line Items]
Total TDRS	$ 4,596	$ 4,104
Performing [Member]
Financing Receivable, Modifications [Line Items]
Total TDRS	3,277	983
Nonperforming [Member]
Financing Receivable, Modifications [Line Items]
Total TDRS	$ 1,319	$ 3,121

XML

Loans and Allowance for Loan Losses - Troubled Debt Restructuring Categorized by Loan (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) contract	Dec. 31, 2015 USD ($) contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	9	4
Pre Modification Outstanding Recorded Investment	$ 1,614	$ 2,017
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 1,494	$ 2,016
Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	4	2
Pre Modification Outstanding Recorded Investment	$ 130	$ 77
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 130	$ 77
Multifamily [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0
Pre Modification Outstanding Recorded Investment	$ 0	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 0	$ 0
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	0
Pre Modification Outstanding Recorded Investment	$ 1,364	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 1,244	$ 0
Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	1
Pre Modification Outstanding Recorded Investment	$ 0	$ 1,938
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 0	$ 1,938
Farmland [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	1	0
Pre Modification Outstanding Recorded Investment	$ 103	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 103	$ 0
Second mortgages [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0
Pre Modification Outstanding Recorded Investment	$ 0	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 0	$ 0
Equity Lines of Credit [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0
Pre Modification Outstanding Recorded Investment	$ 0	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 0	$ 0
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0
Pre Modification Outstanding Recorded Investment	$ 0	$ 0
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 0	$ 0
Agricultural, Installment and Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	2	1
Pre Modification Outstanding Recorded Investment	$ 17	$ 2
Post Modification Outstanding Recorded Investment, Net of Related Allowance	$ 17	$ 1

XML

Debt and Equity Securities - Summary of Debt and Equity Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Summary Of Debt And Equity Securities [Line Items]
Securities Held-To-Maturity, Amortized Cost	$ 36,624	$ 28,195
Securities Held-To-Maturity, Gross Unrealized Gains	190	348
Securities Held-To-Maturity, Gross Unrealized Losses	669	178
Securities Held-To-Maturity, Estimated Market Value	36,145	28,365
Securities Available-For-Sale, Amortized Cost	319,201	332,506
Securities Available-For-Sale, Gross Unrealized Gains	557	973
Securities Available-For-Sale, Gross Unrealized Losses	7,173	2,351
Total investment securities available-for-sale	312,585	331,128
US Government-Sponsored Enterprises (GSEs) [Member]
Summary Of Debt And Equity Securities [Line Items]
Securities Available-For-Sale, Amortized Cost	61,879	77,177
Securities Available-For-Sale, Gross Unrealized Gains	0	215
Securities Available-For-Sale, Gross Unrealized Losses	2,391	483
Total investment securities available-for-sale	59,488	76,909
Government-Sponsored Enterprises (GSEs) residential [Member]
Summary Of Debt And Equity Securities [Line Items]
Securities Held-To-Maturity, Amortized Cost	11,856	9,375
Securities Held-To-Maturity, Gross Unrealized Gains	48	60
Securities Held-To-Maturity, Gross Unrealized Losses	230	169
Securities Held-To-Maturity, Estimated Market Value	11,674	9,266
Securities Available-For-Sale, Amortized Cost	166,316	192,983
Securities Available-For-Sale, Gross Unrealized Gains	496	430
Securities Available-For-Sale, Gross Unrealized Losses	2,447	1,498
Total investment securities available-for-sale	164,365	191,915
SBAP [Member]
Summary Of Debt And Equity Securities [Line Items]
Securities Available-For-Sale, Amortized Cost	37,577	31,253
Securities Available-For-Sale, Gross Unrealized Gains	9	54
Securities Available-For-Sale, Gross Unrealized Losses	729	273
Total investment securities available-for-sale	36,857	31,034
Obligations of States and Political Subdivisions [Member]
Summary Of Debt And Equity Securities [Line Items]
Securities Held-To-Maturity, Amortized Cost	24,768	18,820
Securities Held-To-Maturity, Gross Unrealized Gains	142	288
Securities Held-To-Maturity, Gross Unrealized Losses	439	9
Securities Held-To-Maturity, Estimated Market Value	24,471	19,099
Securities Available-For-Sale, Amortized Cost	53,429	31,093
Securities Available-For-Sale, Gross Unrealized Gains	52	274
Securities Available-For-Sale, Gross Unrealized Losses	1,606	97
Total investment securities available-for-sale	$ 51,875	$ 31,270

XML

Debt and Equity Securities - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Collateralized mortgage obligations	$ 16,015	$ 14,269
Collateralized mortgage obligations, fair value	15,814	14,168
Securities pledged to secure public deposits	196,397	163,674
Market value of securities pledged to secure public deposits	192,484	162,905
Securities adjust prior to maturity	50,991	40,023
Market value of securities that have rates that adjust prior to maturity	51,132	40,009
Tennessee
Schedule of Available-for-sale Securities [Line Items]
Securities in obligations of political subdivisions	27,412	21,593
Market value of securities in obligations of political subdivisions	27,088	21,896
Texas
Schedule of Available-for-sale Securities [Line Items]
Securities in obligations of political subdivisions	10,840	1,073
Market value of securities in obligations of political subdivisions	$ 10,269	$ 1,083

XML

Debt and Equity Securities - Maturity of Amortized Cost and Estimated Market Value of Debt Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Securities Held-to-maturity, Due in one year or less, Amortized Cost	$ 2,003
Securities Held-to-maturity, Due after one year through five years, Amortized Cost	10,122
Securities Held-to-maturity, Due after five years through ten years, Amortized Cost	8,307
Securities Held-to-maturity, Due after ten years, Amortized Cost	4,336
Securities Held-to-maturity, Gross Amortized Cost	24,768
Securities Held-to-maturity, Mortgage-backed securities, Amortized Cost	11,856
Securities Held-to-maturity, Amortized Cost	36,624	$ 28,195
Securities Held-to-maturity, Due in one year or less, Estimated Market Value	2,013
Securities Held-to-maturity, Due after one year through five years, Estimated Market Value	10,151
Securities Held-to-maturity, Due after five years through ten years, Estimated Market Value	8,124
Securities Held-to-maturity, Due after ten years, Estimated Market Value	4,183
Securities Held-to-maturity, Gross Estimated Market Value	24,471
Securities Held-to-maturity, Mortgage-backed securities, Estimated Market Value	11,674
Securities Held-to-maturity, Estimated Market Value	36,145	28,365
Securities Available-For-Sale, Due in one year or less, Amortized Cost	0
Securities Available-For-Sale, Due after one year through five years, Amortized Cost	16,932
Securities Available-For-Sale, Due after five years through ten years, Amortized Cost	72,882
Securities Available-For-Sale, Due after ten years, Amortized Cost	25,494
Securities Available-For-Sale, Gross Amortized Cost	115,308
Securities Available-For-Sale, Mortgage-backed securities, Amortized Cost	203,893
Securities Available-For-Sale, Amortized Cost	319,201	332,506
Securities Available-For-Sale, Due in one year or less, Estimated Market Value	0
Securities Available-For-Sale, Due after one year through five years, Estimated Market Value	16,749
Securities Available-For-Sale, Due after five years through ten years, Estimated Market Value	70,589
Securities Available-For-Sale, Due after ten years, Estimated Market Value	24,025
Securities Available-For-Sale, Gross Estimated Market Value	111,363
Securities Available-For-Sale, Mortgage-backed securities, Estimated Market Value	201,222
Securities Available-For-Sale, Estimated Market Value	$ 312,585	$ 331,128

XML

Debt and Equity Securities - Sales of Debt and Equity Securities (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Gross proceeds	$ 90,007	$ 42,845	$ 72,215
Gross realized gains	716	261	638
Gross realized losses	(256)	(76)	(93)
Net realized gains	$ 460	$ 185	$ 545

XML

Debt and Equity Securities - Gross Unrealized Losses and Fair Value of Company's Investments (Detail) $ in Thousands	Dec. 31, 2016 USD ($) security	Dec. 31, 2015 USD ($)
Held To Maturity Debt Securities [Line Items]
Held to Maturity Securities, Fair Value, Less than 12 Month	$ 24,258
Held to Maturity Securities, Unrealized losses, Less than 12 Month	$ 590
Held to Maturity Securities, Number of securities included, Less than 12 Month | security	48,000
Held to Maturity Securities, Fair Value, 12 Month or More	$ 1,704
Held to Maturity Securities, Unrealized losses, 12 Month or More	$ 79
Held to Maturity Securities, Number of securities included, 12 Month or More | security	1
Held to Maturity Securities, Total Fair Value	$ 25,962
Securities Held to Maturity, Total Unrealized Losses	669	$ 178
Available-for-Sale Securities, Fair Value, Less than 12 Month	259,879
Available-for-Sale Securities, Unrealized Losses, Less than 12 Month	$ 7,076
Available-for-Sale Securities, Number of Securities Included, Less than 12 Month | security	220
Available-for-Sale Securities, Fair Value, 12 Month or More	$ 6,918
Available-for-Sale Securities, Unrealized Loss, 12 Month or More	$ 97
Available-for-Sale Securities, Number of securities included, 12 Month or More | security	9
Available-for-Sale Securities, Total Fair Value	$ 266,797
Available-for-Sale Securities, Total Unrealized Losses	7,173	2,351
US Government-Sponsored Enterprises (GSEs) [Member]
Held To Maturity Debt Securities [Line Items]
Available-for-Sale Securities, Fair Value, Less than 12 Month	59,488
Available-for-Sale Securities, Unrealized Losses, Less than 12 Month	$ 2,391
Available-for-Sale Securities, Number of Securities Included, Less than 12 Month | security	23
Available-for-Sale Securities, Fair Value, 12 Month or More	$ 0
Available-for-Sale Securities, Unrealized Loss, 12 Month or More	$ 0
Available-for-Sale Securities, Number of securities included, 12 Month or More | security	0
Available-for-Sale Securities, Total Fair Value	$ 59,488
Available-for-Sale Securities, Total Unrealized Losses	2,391	483
GSE Residential [Member]
Held To Maturity Debt Securities [Line Items]
Held to Maturity Securities, Fair Value, Less than 12 Month	8,177
Held to Maturity Securities, Unrealized losses, Less than 12 Month	$ 151
Held to Maturity Securities, Number of securities included, Less than 12 Month | security	7,000
Held to Maturity Securities, Fair Value, 12 Month or More	$ 1,704
Held to Maturity Securities, Unrealized losses, 12 Month or More	$ 79
Held to Maturity Securities, Number of securities included, 12 Month or More | security	1
Held to Maturity Securities, Total Fair Value	$ 9,881
Securities Held to Maturity, Total Unrealized Losses	230	169
Available-for-Sale Securities, Fair Value, Less than 12 Month	124,011
Available-for-Sale Securities, Unrealized Losses, Less than 12 Month	$ 2,350
Available-for-Sale Securities, Number of Securities Included, Less than 12 Month | security	64
Available-for-Sale Securities, Fair Value, 12 Month or More	$ 6,918
Available-for-Sale Securities, Unrealized Loss, 12 Month or More	$ 97
Available-for-Sale Securities, Number of securities included, 12 Month or More | security	9
Available-for-Sale Securities, Total Fair Value	$ 130,929
Available-for-Sale Securities, Total Unrealized Losses	2,447	1,498
SBAP [Member]
Held To Maturity Debt Securities [Line Items]
Available-for-Sale Securities, Fair Value, Less than 12 Month	33,579
Available-for-Sale Securities, Unrealized Losses, Less than 12 Month	$ 729
Available-for-Sale Securities, Number of Securities Included, Less than 12 Month | security	17
Available-for-Sale Securities, Fair Value, 12 Month or More	$ 0
Available-for-Sale Securities, Unrealized Loss, 12 Month or More	$ 0
Available-for-Sale Securities, Number of securities included, 12 Month or More | security	0
Available-for-Sale Securities, Total Fair Value	$ 33,579
Available-for-Sale Securities, Total Unrealized Losses	729	273
Obligations of States and Political Subdivisions [Member]
Held To Maturity Debt Securities [Line Items]
Held to Maturity Securities, Fair Value, Less than 12 Month	16,081
Held to Maturity Securities, Unrealized losses, Less than 12 Month	$ 439
Held to Maturity Securities, Number of securities included, Less than 12 Month | security	41,000
Held to Maturity Securities, Fair Value, 12 Month or More	$ 0
Held to Maturity Securities, Unrealized losses, 12 Month or More	$ 0
Held to Maturity Securities, Number of securities included, 12 Month or More | security	0
Held to Maturity Securities, Total Fair Value	$ 16,081
Securities Held to Maturity, Total Unrealized Losses	439	9
Available-for-Sale Securities, Fair Value, Less than 12 Month	42,801
Available-for-Sale Securities, Unrealized Losses, Less than 12 Month	$ 1,606
Available-for-Sale Securities, Number of Securities Included, Less than 12 Month | security	116
Available-for-Sale Securities, Fair Value, 12 Month or More	$ 0
Available-for-Sale Securities, Unrealized Loss, 12 Month or More	$ 0
Available-for-Sale Securities, Number of securities included, 12 Month or More | security	0
Available-for-Sale Securities, Total Fair Value	$ 42,801
Available-for-Sale Securities, Total Unrealized Losses	$ 1,606	$ 97

XML

Restricted Equity Securities - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
FHLB [Member]
Marketable Securities [Line Items]
Restricted equity securities consists of stock of the Federal Home Loan Bank of Cincinnati	$ 3,012	$ 3,012

XML

Premises and Equipment - Detail of Premises and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 60,242	$ 55,959
Less accumulated depreciation	(15,828)	(13,859)
Premises and equipment, net	44,414	42,100
Land [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	17,022	17,022
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	29,937	27,821
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	368	140
Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	9,760	8,605
Automobiles [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	304	280
Construction-In-Progress [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 2,851	$ 2,091

XML

Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Construction of buildings and minor repair work	$ 1,361	$ 1,222	$ 1,176
Depreciation expense	$ 2,760	$ 2,582	$ 2,205

XML

Acquired Intangible Assets and Goodwill - Additional Information (Detail) - subsidiary	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2005
Goodwill and Intangible Assets Disclosure [Abstract]
Number of subsidiaries acquired	2
Intangible assets percentage of owned subsidiaries	50.00%
Ownership interests acquired (as a percent)		100.00%

XML

Acquired Intangible Assets and Goodwill - Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Roll Forward]
Balance at January 1,	$ 4,805	$ 4,805
Goodwill acquired during year	0	0
Impairment loss	0	0
Balance at December 31,	$ 4,805	$ 4,805

XML

Deposits - Deposits (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Demand deposits	$ 226,971	$ 197,062
Savings accounts	123,749	107,829
Negotiable order of withdrawal accounts	454,487	445,967
Money market demand accounts	628,321	523,895
Certificates of deposit $250,000 or greater	64,938	64,236
Other certificates of deposit	360,871	364,274
Individual retirement accounts $250,000 or greater	8,417	9,074
Other individual retirement accounts	74,381	77,513
Deposits	$ 1,942,135	$ 1,789,850

XML

Deposits - Principal Maturities of Certificate of Deposit and Individual Retirement Accounts (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Banking and Thrift [Abstract]
2017	$ 246,092
2018	131,358
2019	76,942
2020	34,783
2021	19,432
Thereafter	0
Time Deposits, Total	$ 508,607

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Deposits - Additional Information (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Overdrafts reclassified as loans receivable	$ 481,000	$ 303,000
Average required cash balance	$ 0	$ 0

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Securities Sold Under Repurchase Agreements - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Banking and Thrift [Abstract]
Securities sold under repurchase agreements	$ 736	$ 2,035
Maximum amounts of outstanding repurchase agreements	2,070	3,514
Average daily balance outstanding	$ 1,214	$ 2,505
Weighted average interest rate on outstanding balance (as a percent)	0.25%	0.25%

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Non-Interest Income and Non-Interest Expense - Components of Non-Interest Income and Non-Interest Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Non-interest income:
Service charges on deposits	$ 5,769	$ 5,148	$ 4,374
Other fees and commissions	10,260	9,321	8,519
BOLI and annuity earnings	832	877	376
Security gains, net	460	185	545
Fees and gains on sales of loans	4,355	4,048	2,780
Gain on sale of other real estate, net	52	362	77
Gain on sale of fixed assets, net	0	0	7
Non-interest income	21,728	19,941	16,678
Non-interest expense:
Employee salaries and benefits	34,106	31,556	27,793
Occupancy expenses	3,638	3,444	3,100
Furniture and equipment expenses	2,019	2,063	1,767
Loss on the sale of fixed assets, net	73	53	0
Loss on sales of other assets, net	1	2	6
Data processing expenses	2,576	2,476	2,313
FDIC insurance	968	953	1,049
Directors’ fees	691	735	720
Other operating expenses	13,265	10,877	10,957
Non-interest expense	$ 57,337	$ 52,159	$ 47,705

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Income Taxes - Components of the Net Deferred Tax Asset (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset	$ 13,179	$ 10,334
Deferred tax liability	(2,421)	(2,295)
Net deferred tax asset	10,758	8,039
Federal [Member]
Schedule Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset	11,316	8,954
Deferred tax liability	(2,010)	(1,905)
State [Member]
Schedule Of Deferred Tax Assets And Liabilities [Line Items]
Deferred tax asset	1,863	1,380
Deferred tax liability	$ (411)	$ (390)

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Income Taxes - Deferred Tax Assets (Liabilities) in Which Tax Effects of Significant Item that Gave Rise (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Financial statement allowance for loan losses in excess of tax allowance	$ 8,252	$ 8,317
Excess of depreciation deducted for tax purposes over the amounts deducted in the financial statements	(1,941)	(1,815)
Financial statement deduction for deferred compensation in excess of deduction for tax purposes	1,423	1,174
Writedown of other real estate not deductible for income tax purposes until sold	287	162
Financial statement income on FHLB stock dividends not recognized for tax purposes	(480)	(480)
Unrealized loss on securities available-for-sale	2,533	528
Other items, net	684	153
Net deferred tax asset	$ 10,758	$ 8,039

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Income Taxes - Summary of Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Current, Federal	$ 12,910	$ 10,871	$ 10,201
Current, State	2,095	1,653	1,475
Current, Total	15,005	12,524	11,676
Deferred, Federal	(136)	1,028	526
Deferred, State	(28)	210	108
Deferred, Total	(164)	1,238	634
Federal	12,774	11,899	10,727
State	2,067	1,863	1,583
Total	$ 14,841	$ 13,762	$ 12,310

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Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Federal income tax benefits	$ 14,841,000	$ 13,762,000	$ 12,310,000
Statutory income tax rate (as a percent)	34.00%
Income tax expense related to the realized gain and loss, respectively, on sale of securities	$ 176,000	71,000	209,000
Accrued or recognized interest or penalties related to uncertain tax positions	0	$ 0	$ 0
Unrecognized tax benefits	$ 0
Period for change of unrecognized tax benefits	12 months
Deferred tax asset that we did not prevail on all uncertain tax position	$ 13,200,000

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Income Taxes - Reconciliation of Actual Income Tax Expense to the Expected Tax Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Computed “expected” tax expense	$ 13,761	$ 12,793	$ 11,250
State income taxes, net of Federal income tax benefit	1,364	1,243	1,029
Tax exempt interest, net of interest expense exclusion	(401)	(266)	(244)
Federal income tax rate in excess of statutory rate related to taxable income over $10 million	370	312	290
Earnings on cash surrender value of life insurance	(283)	(298)	(128)
Expenses not deductible for tax purposes	40	35	37
Stock based compensation expense	35	13	14
Other	(45)	(70)	62
Total	$ 14,841	$ 13,762	$ 12,310

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Income Taxes - Reconciliation of Actual Income Tax Expense to the Expected Tax Expense - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($)
Income Tax Disclosure [Abstract]
Taxable income for which federal income tax rate in excess of statutory rate	$ 10,000,000

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Commitments and Contingent Liabilities - Future Minimum Rental Payments under Operating Leases (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2017	$ 244
2018	218
2019	222
2020	228
2021	$ 163

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Commitments and Contingent Liabilities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 204,000	$ 192,000	$ 133,000
Debt Instrument [Line Items]
Line of credit with other financial institution	53,000,000	53,000,000
Balance outstanding under line of credit	0	0
Line of Credit [Member] | Cash Management Advance (CMA) [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
Borrowings under variable rate, period up to	90 days
Borrowings under fixed rate, period up to	30 days
Borrowings under CMA	$ 0	$ 0

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Financial Instruments with Off-Balance-Sheet Risk - Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Financial instruments whose contract amounts represent credit risk
Financial instruments whose contract amounts represent credit risk	$ 534,478	$ 428,184
Unused Commitments to Extend Credit [Member]
Financial instruments whose contract amounts represent credit risk
Financial instruments whose contract amounts represent credit risk	483,818	391,553
Standby Letters of Credit [Member]
Financial instruments whose contract amounts represent credit risk
Financial instruments whose contract amounts represent credit risk	50,660	$ 36,631
Maximum potential amount of future payments that the Company guarantee	$ 50,700

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Concentration of Credit Risk - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($) Bank
Risks and Uncertainties [Abstract]
Company's cash and due from banks and federal funds sold total	$ 704,000
FDIC limit of per depositor	$ 250,000
Federal funds sold deposited with banks, number or banks | Bank	1

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Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]
Minimum age limit of employee to be eligible for the plan	20 years 6 months
Employers contribution	$ 2,006	$ 1,840	$ 1,734

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Dividend Reinvestment Plan - Additional Information (Detail) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Original issue shares under the terms of the dividend reinvestment plan (DRIP)	98,318	72,543	69,289

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Regulatory Matters and Restrictions on Dividends - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 USD ($)
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
New capital requirement effective date	2015
Capital conservation buffer ratio to be phased in over four years (as a percent)	2.50%
Capital conservation buffer phased in period	4 years
Capital conservation buffer beginning period	2016
Basel III Requirements [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Unrealized gains and losses in accumulated other comprehensive income	$ 250,000,000,000

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Regulatory Matters and Restrictions on Dividends - Summary of Company's and Wilson Banks Actual Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Total capital to risk weighted assets:
Total capital to risk weighted assets actual amount	$ 266,954	$ 240,848
Total capital to risk weighted assets actual ratio (as a percent)	12.70%	14.10%
Total capital to risk weighted assets regulatory minimum capital requirement amount	$ 181,298	$ 136,588
Total capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	8.625%	8.00%	8.00%
Total capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		10.00%	10.00%
Tier 1 capital to risk weighted assets:
Tier 1 capital to risk weighted assets actual amount	$ 243,897	$ 219,483
Tier 1 capital to risk weighted assets actual ratio (as a percent)	11.60%	12.90%
Tier 1 capital to risk weighted assets regulatory minimum capital requirement amount	$ 139,295	$ 102,441
Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	6.625%	6.00%	4.00%
Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		8.00%	6.00%
Common equity Tier 1 capital to risk weighted assets:
Common equity Tier 1 capital to risk weighted assets actual amount	$ 243,897	$ 219,483
Common equity Tier 1 capital to risk weighted assets actual ratio (as a percent)	11.60%	12.90%
Common equity Tier 1 capital to risk weighted assets regulatory minimum capital requirement amount	$ 107,756	$ 76,831
Common equity Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	5.125%	4.50%
Common equity Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		6.50%
Tier 1 capital to average assets:
Tier 1 capital to average assets actual amount	$ 243,897	$ 219,483
Tier 1 capital to average assets actual ratio (as a percent)	11.20%	11.10%
Tier 1 capital to average assets regulatory minimum capital requirement amount	$ 87,106	$ 79,361
Tier 1 capital to average assets regulatory minimum capital requirement ratio (as a percent)	4.00%	4.00%	4.00%
Tier 1 capital to average assets regulatory minimum to be well capitalized ratio (as a percent)		5.00%	5.00%
Wilson Bank Holding Company [Member]
Total capital to risk weighted assets:
Total capital to risk weighted assets actual amount	$ 265,142	$ 238,963
Total capital to risk weighted assets actual ratio (as a percent)	12.60%	14.00%
Total capital to risk weighted assets regulatory minimum capital requirement amount	$ 181,496	$ 136,575
Total capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	8.625%	8.00%
Total capital to risk weighted assets regulatory minimum to be well capitalized amount	$ 210,430	$ 170,719
Total capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets:
Tier 1 capital to risk weighted assets actual amount	$ 242,085	$ 217,600
Tier 1 capital to risk weighted assets actual ratio (as a percent)	11.50%	12.80%
Tier 1 capital to risk weighted assets regulatory minimum capital requirement amount	$ 139,462	$ 102,431
Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	6.625%	6.00%
Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized amount	$ 168,407	$ 136,575
Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)	8.00%	8.00%
Common equity Tier 1 capital to risk weighted assets:
Common equity Tier 1 capital to risk weighted assets actual amount	$ 242,085	$ 217,600
Common equity Tier 1 capital to risk weighted assets actual ratio (as a percent)	11.50%	12.80%
Common equity Tier 1 capital to risk weighted assets regulatory minimum capital requirement amount	$ 107,886	$ 76,823
Common equity Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	5.125%	4.50%
Common equity Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized amount	$ 136,831	$ 110,967
Common equity Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)	6.50%	6.50%
Tier 1 capital to average assets:
Tier 1 capital to average assets actual amount	$ 242,085	$ 217,600
Tier 1 capital to average assets actual ratio (as a percent)	11.10%	11.00%
Tier 1 capital to average assets regulatory minimum capital requirement amount	$ 87,238	$ 79,354
Tier 1 capital to average assets regulatory minimum capital requirement ratio (as a percent)	4.00%	4.00%
Tier 1 capital to average assets regulatory minimum to be well capitalized amount	$ 109,047	$ 99,192
Tier 1 capital to average assets regulatory minimum to be well capitalized ratio (as a percent)	5.00%	5.00%

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Regulatory Matters and Restrictions on Dividends - Summary of Changes to Regulatory Capital Ratios (Detail)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Banking and Thrift [Abstract]
Common equity Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	5.125%	4.50%
Common equity Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		6.50%
Tier 1 capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	6.625%	6.00%	4.00%
Tier 1 capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		8.00%	6.00%
Total capital to risk weighted assets regulatory minimum capital requirement ratio (as a percent)	8.625%	8.00%	8.00%
Total capital to risk weighted assets regulatory minimum to be well capitalized ratio (as a percent)		10.00%	10.00%
Tier 1 capital to average assets regulatory minimum capital requirement ratio (as a percent)	4.00%	4.00%	4.00%
Tier 1 capital to average assets regulatory minimum to be well capitalized ratio (as a percent)		5.00%	5.00%

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Regulatory Matters and Restrictions on Dividends - Summary of Basel III Minimum Requirements After Giving Effect to the Buffer (Detail)	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (as a percent)	5.125%	4.50%
Tier 1 Capital to Risk Weighted Assets Ratio (as a percent)	6.625%	6.00%	4.00%
Total Capital to Risk Weighted Assets Ratio (as a percent)	8.625%	8.00%	8.00%
2016 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (as a percent)	5.125%
Tier 1 Capital to Risk Weighted Assets Ratio (as a percent)	6.625%
Total Capital to Risk Weighted Assets Ratio (as a percent)	8.625%
2017 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (as a percent)	5.75%
Tier 1 Capital to Risk Weighted Assets Ratio (as a percent)	7.25%
Total Capital to Risk Weighted Assets Ratio (as a percent)	9.25%
2018 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (as a percent)	6.375%
Tier 1 Capital to Risk Weighted Assets Ratio (as a percent)	7.875%
Total Capital to Risk Weighted Assets Ratio (as a percent)	9.875%
2019 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (as a percent)	7.00%
Tier 1 Capital to Risk Weighted Assets Ratio (as a percent)	8.50%
Total Capital to Risk Weighted Assets Ratio (as a percent)	10.50%

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Salary Deferral Plans - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Executive Salary Continuation Plan [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Salary deferral compensation liability total	$ 1,869	$ 1,872
Cash surrender value of life insurance, carrying value	3,688	3,376
Face amount of the insurance policies in force	11,148	10,508
Supplemental Employee Retirement Plan Agreement [Member]
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items]
Salary deferral compensation liability total	1,846	1,161
Cash surrender value of life insurance, carrying value	24,928	14,357
Face amount of the insurance policies in force	61,287	35,471
Flexible Indexed Annuity Contracts	$ 10,804	$ 8,939

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Stock Option Plan - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	12 Months Ended
	Apr. 14, 2009	Apr. 13, 2009	Apr. 30, 1999	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Percentage of common stock shares issued and outstanding			5.00%
Stock option expiration period				10 years
Percentage of the fair market value of the common stock on the grant date				100.00%
The weighted average fair value at the grant date of options granted (in dollars per share)				$ 11.29	$ 12.72	$ 13.41
The total intrinsic value of options exercised				$ 65	$ 129	$ 99
Total unrecognized cost related to non-vested share-based compensation arrangements granted under the Company's stock option plans				$ 1,784
Weighted-average period for recognition of unrecognized costs				4 years 11 months 5 days
1999 Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized			200,000
Stock Option Plan expiration date		Apr. 13, 2009
2009 Stock Option Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized				100,000
Stock Option Plan effective date	Apr. 14, 2009
Options granted to employees (in shares)				49,400
2016 Equity Incentive Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Number of shares authorized							750,000
Granted weighted-average exercise price (in dollars per shares)				$ 40.36
Stock Options [Member] | 2016 Equity Incentive Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Shares remaining available for issuance				610,003
Granted (in shares)				60,832
Stock Appreciation Rights (SARs) [Member] | 2016 Equity Incentive Plan [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Cash settled stock appreciation rights granted (in shares)				79,165

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Stock Option Plan - Schedule of Weighted-Average Black-Scholes Fair Value Assumptions (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Expected dividends (as percent)	1.21%	1.00%	1.11%
Expected term (in years)	8 years 8 months 16 days	8 years 11 months 14 days	9 years 3 months 29 days
Expected volatility (as percent)	26.00%	22.00%	23.00%
Risk-free rate (as percent)	2.02%	2.02%	2.62%

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Stock Option Plan - Summary of Stock Option Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Shares
Exercised (in shares)	(5,120)	(7,633)	(6,144)
Stock Options and Stock Appreciation Rights [Member]
Shares
Option outstanding at beginning of year (in shares)	49,895	58,092	63,539
Granted (in shares)	140,997	4,333	4,333
Exercised (in shares)	(5,545)	(10,177)	(8,192)
Forfeited or expired (in shares)	(1,500)	(2,353)	(1,588)
Option outstanding at end of year (in shares)	183,847	49,895	58,092
Options exercisable at year end (in shares)	13,553	13,085	16,085
Weighted Average Exercise Price
Outstanding weighted-average exercise price at beginning of year (in dollars per share)	$ 30.19	$ 28.52	$ 27.32
Granted weighted-average exercise price (in dollars per shares)	40.36	36.23	34.31
Exercised weighted-average exercise price (in dollars per shares)	27.38	23.69	22.68
Forfeited or expired weighted-average exercise price (in dollars per shares)	28.44	28.22	26.52
Outstanding weighted-average exercise price at end of year (in dollars per shares)	38.08	30.19	28.52
Options exercisable weighted-average exercise price at year end (in dollars per shares)	$ 29.29	$ 28.55	$ 25.94

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Stock Option Plan - Summary of Information about Stock Options (Detail) - Stock Options and Stock Appreciation Rights [Member] $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of outstanding (in shares)	183,847
Options Outstanding, Aggregate intrinsic value | $	$ 490
Options Exercisable, Number exercisable (in shares)	13,553
Options Exercisable, Aggregate intrinsic value | $	$ 155
26.63 to 35.75 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of outstanding (in shares)	33,451
Options Outstanding, Weighted average exercise price (in dollars per share) | $ / shares	$ 29.33
Options Outstanding, Weighted average remaining contractual term	3 years 256 days
Options Exercisable, Number exercisable (in shares)	12,453
Options Exercisable, Weighted average exercise price (in dollars per share) | $ / shares	$ 28.78
Options Exercisable, Weighted average remaining contractual term	3 years 3 months 12 days
37.75 to 48.95 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of outstanding (in shares)	150,396
Options Outstanding, Weighted average exercise price (in dollars per share) | $ / shares	$ 40.03
Options Outstanding, Weighted average remaining contractual term	9 years 8 months 2 days
Options Exercisable, Number exercisable (in shares)	1,100
Options Exercisable, Weighted average exercise price (in dollars per share) | $ / shares	$ 35.06
Options Exercisable, Weighted average remaining contractual term	7 years 6 months 27 days

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Stock Option Plan - Summary of Information about Stock Options - Additional Information (Detail) - Stock Options and Stock Appreciation Rights [Member]	12 Months Ended
	Dec. 31, 2016 $ / shares
26.63 to 35.75 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower limit (in dollars per share)	$ 22.22
Exercise Price, Upper limit (in dollars per share)	33.56
37.75 to 48.95 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower limit (in dollars per share)	33.94
Exercise Price, Upper limit (in dollars per share)	$ 40.75

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Stock Option Plan - Nonvested Share Activity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted Average Grant Date Fair Value
Granted, Weighted average grant date fair value (in dollars per share)	$ 11.29	$ 12.72	$ 13.41
Stock Options and Stock Appreciation Rights [Member]
Shares
Non-vested options and SARs at beginning of period (in shares)	37,000
Granted (in shares)	140,997	4,333	4,333
Vested (in shares)	(7,000)
Forfeited (in shares)	(1,000)
Non-vested options and SARs at end of period (in shares)	170,000	37,000
Weighted Average Grant Date Fair Value
Non-vested options and SARs at beginning of period, Weighted average grant date fair value (in dollars per share)	$ 7.14
Granted, Weighted average grant date fair value (in dollars per share)	11.29
Vested, Weighted average grant date fair value (in dollars per share)	5.95
Forfeited, Weighted average grant date fair value (in dollars per share)	5.93
Non-vested options and SARs at end of period, Weighted average grant date fair value (in dollars per share)	$ 10.63	$ 7.14

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Earnings Per Share - Summary of Components Comprising Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Basic EPS Computation:
Numerator - Earnings available to common stockholders	$ 6,802	$ 6,918	$ 6,270	$ 5,643	$ 5,958	$ 6,088	$ 6,201	$ 5,616	$ 6,100	$ 5,351	$ 5,154	$ 4,172	$ 25,633	$ 23,863	$ 20,777
Denominator - Weighted average number of common shares outstanding													10,279,332	10,165,477	10,062,783
Basic earnings per common share (in dollars per share)	$ 0.66	$ 0.67	$ 0.61	$ 0.55	$ 0.59	$ 0.60	$ 0.61	$ 0.55	$ 0.61	$ 0.53	$ 0.51	$ 0.41	$ 2.49	$ 2.35	$ 2.06
Diluted EPS Computation:
Numerator - Earnings available to common stockholders													$ 25,633	$ 23,863	$ 20,777
Denominator - Weighted average number of common shares outstanding													10,279,332	10,165,477	10,062,783
Dilutive effect of stock options (in shares)													4,996	4,703	5,857
Weighted average number of shares outstanding-diluted													10,284,328	10,170,180	10,068,640
Diluted earnings per common share (in dollars per share)	$ 0.66	$ 0.67	$ 0.61	$ 0.55	$ 0.59	$ 0.60	$ 0.61	$ 0.55	$ 0.61	$ 0.53	$ 0.51	$ 0.41	$ 2.49	$ 2.35	$ 2.06

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Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	$ 312,585	$ 331,128
State and municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	51,875	31,270
Fair Value Measurements Recurring [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	312,585	331,128
Loans held for sale	14,788	10,135
Other assets	28,616	26,672
Total assets at fair value	355,989	367,935
Fair Value Measurements Recurring [Member] | Mortgage-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	164,365	191,915
Fair Value Measurements Recurring [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	36,857	31,034
Fair Value Measurements Recurring [Member] | State and municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	51,875	31,270
Fair Value Measurements Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Loans held for sale		0
Other assets	0	0
Total assets at fair value	0	0
Fair Value Measurements Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | Mortgage-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | State and municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	312,585	331,128
Loans held for sale	14,788	10,135
Other assets	0	0
Total assets at fair value	327,373	341,263
Fair Value Measurements Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | Mortgage-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	164,365	191,915
Fair Value Measurements Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	36,857	31,034
Fair Value Measurements Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | State and municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	51,875	31,270
Fair Value Measurements Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Loans held for sale		0
Other assets	28,616	26,672
Total assets at fair value	28,616	26,672
Fair Value Measurements Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | Mortgage-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | Asset-backed Securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | State and municipal securities [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | U.S. Government Sponsored Enterprises [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	59,488	76,909
Fair Value Measurements Recurring [Member] | U.S. Government Sponsored Enterprises [Member] | Quoted Market Prices in an Active Market (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	0	0
Fair Value Measurements Recurring [Member] | U.S. Government Sponsored Enterprises [Member] | Models with Significant Observable Market Parameters (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	59,488	76,909
Fair Value Measurements Recurring [Member] | U.S. Government Sponsored Enterprises [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Total investment securities available-for-sale	$ 0	$ 0

XML

Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other real estate owned	$ 4,527	$ 5,410
Impaired loans, net	6,792	8,436
Total	11,319	13,846
Quoted Market Prices in an Active Market (Level 1) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other real estate owned	0	0
Impaired loans, net	0	0
Total	0	0
Models with Significant Observable Market Parameters (Level 2) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other real estate owned	0	0
Impaired loans, net	0	0
Total	0	0
Models with Significant Unobservable Market Parameters (Level 3) [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Other real estate owned	4,527	5,410
Impaired loans, net	6,792	8,436
Total	$ 11,319	$ 13,846

XML

Disclosures About Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Measurements, Nonrecurring [Member]
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
Valuation allowance	$ 316	$ 194

XML

Disclosures About Fair Value of Financial Instruments - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2016 TransferStation
Fair Value Disclosures [Abstract]
Transfers between levels one, two and three	0

XML

Disclosures About Fair Value of Financial Instruments - Changes in Fair Value Due to Observable Factors (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Other Assets
Fair value, January 1	$ 17,733	$ 13,344
Total realized gains included in income	673	532
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	0	0
Purchases, issuances and settlements, net	10,210	3,857
Transfers out of Level 3	0	0
Fair value, December 31	28,616	17,733
Other Liabilities
Fair value, January 1	0	0
Total realized gains included in income	0	0
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31	0	0
Purchases, issuances and settlements, net	0	0
Transfers out of Level 3	0	0
Fair value, December 31	0	0
Other Assets [Member]
Other Liabilities
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	673	532
Other Liabilities [Member]
Other Liabilities
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31	$ 0	$ 0

XML

Disclosures About Fair Value of Financial Instruments - Carrying Value and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities held-to-maturity, Carrying/Notional Amount	$ 36,624	$ 28,195
Loans, net, Carrying/Notional Amount	1,667,088	1,443,179
Deposits and securities sold under agreements to repurchase, Carrying/Notional Amount	1,942,871	1,791,885
Commitments to extend credit, Carrying/Notional Amount	0	0
Standby letters of credit, Carrying/Notional Amount	0	0
Securities Held-To-Maturity, Estimated Market Value	36,145	28,365
Loans, net, Estimated Fair Value	1,673,568	1,443,738
Deposits and securities sold under agreements to repurchase, Estimated Fair Value	1,631,032	1,549,414
Commitments to extend credit, Estimated Fair Value	0	0
Standby letters of credit, Estimated Fair Value	0	0
Quoted Market Prices in an Active Market (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Held-To-Maturity, Estimated Market Value	0	0
Loans, net, Estimated Fair Value	0	0
Deposits and securities sold under agreements to repurchase, Estimated Fair Value	0	0
Commitments to extend credit, Estimated Fair Value	0	0
Standby letters of credit, Estimated Fair Value	0	0
Models with Significant Observable Market Parameters (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Held-To-Maturity, Estimated Market Value	36,145	28,365
Loans, net, Estimated Fair Value	0	0
Deposits and securities sold under agreements to repurchase, Estimated Fair Value	0	0
Commitments to extend credit, Estimated Fair Value	0	0
Standby letters of credit, Estimated Fair Value	0	0
Models with Significant Unobservable Market Parameters (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities Held-To-Maturity, Estimated Market Value	0	0
Loans, net, Estimated Fair Value	1,673,568	1,443,738
Deposits and securities sold under agreements to repurchase, Estimated Fair Value	1,631,032	1,549,414
Commitments to extend credit, Estimated Fair Value	0	0
Standby letters of credit, Estimated Fair Value	$ 0	$ 0

XML

Wilson Bank Holding Company - Parent Company Financial Information - Balance Sheets - Parent Company Only (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
ASSETS
Cash	$ 47,918	$ 109,253	$ 68,007	$ 111,504
Total assets	2,198,051	2,021,604
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total liabilities	1,953,431	1,798,166
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	20,639	15,304
Additional paid-in capital	60,541	61,339
Retained earnings	167,523	147,646
Net unrealized losses on available-for-sale securities, net of income taxes of $527 and $421, respectively	(4,083)	(851)
Total stockholders’ equity	244,620	223,438	200,892	177,671
Total liabilities and stockholders’ equity	2,198,051	2,021,604
Wilson Bank Holding Company [Member]
ASSETS
Cash	1,678	1,685	1,120	2,662
Investment in wholly-owned commercial bank subsidiary	242,808	221,555
Refundable income taxes	169	198
Total assets	244,655	223,438
LIABILITIES AND STOCKHOLDERS’ EQUITY
Stock appreciation rights payable	35	0
Total liabilities	35	0
Stockholders’ equity:
Common stock, par value $2.00 per share, authorized 50,000,000 and 15,000,000 shares, respectively, 10,319,673 and 7,652,144 shares issued and outstanding, respectively	20,639	15,304
Additional paid-in capital	60,541	61,339
Retained earnings	167,523	147,646
Net unrealized losses on available-for-sale securities, net of income taxes of $527 and $421, respectively	(4,083)	(851)
Total stockholders’ equity	244,620	223,438	$ 200,892	$ 177,671
Total liabilities and stockholders’ equity	$ 244,655	$ 223,438

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Wilson Bank Holding Company - Parent Company Financial Information - Balance Sheets - Parent Company Only - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Parent Company Only Financial Information [Line Items]
Common stock, par value (in dollars per share)	$ 2.00	$ 2.00
Common stock, shares authorized	50,000,000	15,000,000
Common stock, shares issued	10,319,673	7,652,144
Common stock, shares outstanding	10,319,673	7,652,144
Wilson Bank Holding Company [Member]
Parent Company Only Financial Information [Line Items]
Common stock, par value (in dollars per share)	$ 2.00	$ 2.00
Common stock, shares authorized	50,000,000	15,000,000
Common stock, shares issued	10,319,673	7,652,144
Common stock, shares outstanding	10,319,673	7,652,144
Net unrealized losses on available-for-sale securities, income taxes	$ 2,533	$ 527

XML

Wilson Bank Holding Company - Parent Company Financial Information - Statements of Earnings and Comprehensive Earnings - Parent Company Only (Detail) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Expenses:
Directors’ fees													$ 691	$ 735	$ 720
Earnings before income taxes	$ 10,120	$ 11,095	$ 10,162	$ 9,097	$ 8,720	$ 9,862	$ 9,889	$ 9,154	$ 8,888	$ 8,772	$ 8,503	$ 6,924	40,474	37,625	33,087
Federal income tax benefits													(14,841)	(13,762)	(12,310)
Net earnings	$ 6,802	$ 6,918	$ 6,270	$ 5,643	$ 5,958	$ 6,088	$ 6,201	$ 5,616	$ 6,100	$ 5,351	$ 5,154	$ 4,172	25,633	23,863	20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale- securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively													(2,948)	(58)	3,953
Reclassification adjustments for net gains included in net earnings, net of taxes of $176, $71, and $209 respectively													(284)	(114)	(336)
Other comprehensive earnings (losses)													(3,232)	(172)	3,617
Comprehensive earnings													22,401	23,691	24,394
Wilson Bank Holding Company [Member]
Expenses:
Directors’ fees													327	350	351
Other													194	152	191
Earnings before income taxes													(521)	(502)	(542)
Federal income tax benefits													169	198	212
Non-interest expense													(352)	(304)	(330)
Equity in undistributed earnings of commercial bank subsidiary													25,985	24,167	21,107
Net earnings													25,633	23,863	20,777
Other comprehensive earnings (losses), net of tax:
Net unrealized gains (losses) on available-for-sale- securities arising during period, net of taxes of $1,830, $35, and $2,454, respectively													(2,948)	(58)	3,953
Reclassification adjustments for net gains included in net earnings, net of taxes of $176, $71, and $209 respectively													(284)	(114)	(336)
Other comprehensive earnings (losses)													(3,232)	(172)	3,617
Comprehensive earnings													$ 22,401	$ 23,691	$ 24,394

XML

Wilson Bank Holding Company - Parent Company Financial Information - Statements of Earnings and Comprehensive Earnings - Parent Company Only - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Parent Company Only Financial Information [Line Items]
Unrealized gains (losses) on available-for-sale securities arising during period, net of taxes	$ 1,830	$ 35	$ 2,454
Reclassification adjustment for net gains included in net earnings, taxes	176	71	209
Wilson Bank Holding Company [Member]
Parent Company Only Financial Information [Line Items]
Unrealized gains (losses) on available-for-sale securities arising during period, net of taxes	1,830	35	2,454
Reclassification adjustment for net gains included in net earnings, taxes	$ 176	$ 71	$ 209

XML

Wilson Bank Holding Company - Parent Company Financial Information - Statements of Changes in Stockholders' Equity - Parent Company Only (Detail) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Parent Company Only Financial Information [Line Items]
Beginning balance				$ 223,438				$ 200,892				$ 177,671	$ 223,438	$ 200,892	$ 177,671
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively													(5,756)	(4,935)	(4,510)
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													4,316	3,511	3,204
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													152	241	186
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split													5,128
Share based compensation expense													69	38	41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively													(3,232)	(172)	3,617
Repurchase of 2,053 common shares															(94)
Net earnings for the year	$ 6,802	$ 6,918	$ 6,270	5,643	$ 5,958	$ 6,088	$ 6,201	5,616	$ 6,100	$ 5,351	$ 5,154	4,172	25,633	23,863	20,777
Ending balance	244,620				223,438				200,892				244,620	223,438	200,892
Common Stock
Parent Company Only Financial Information [Line Items]
Beginning balance				15,304				15,144				14,997	15,304	15,144	14,997
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													197	145	139
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													10	15	12
Repurchase of 2,053 common shares															(4)
Ending balance	20,639				15,304				15,144				20,639	15,304	15,144
Additional Paid-In Capital
Parent Company Only Financial Information [Line Items]
Beginning balance				61,339				57,709				54,519	61,339	57,709	54,519
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													4,119	3,366	3,065
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													142	226	174
Share based compensation expense													69	38	41
Repurchase of 2,053 common shares															(90)
Ending balance	60,541				61,339				57,709				60,541	61,339	57,709
Retained Earnings
Parent Company Only Financial Information [Line Items]
Beginning balance				147,646				128,718				112,451	147,646	128,718	112,451
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively													(5,756)	(4,935)	(4,510)
Net earnings for the year													25,633	23,863	20,777
Ending balance	167,523				147,646				128,718				167,523	147,646	128,718
Net Unrealized Gain (Loss) On Available-For-Sale Securities
Parent Company Only Financial Information [Line Items]
Beginning balance				(851)				(679)				(4,296)	(851)	(679)	(4,296)
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively													(3,232)	(172)	3,617
Ending balance	(4,083)				(851)				(679)				(4,083)	(851)	(679)
Wilson Bank Holding Company [Member]
Parent Company Only Financial Information [Line Items]
Beginning balance				223,438				200,892				177,671	223,438	200,892	177,671
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively													(5,756)	(4,935)	(4,510)
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													4,316	3,511	3,204
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													152	241	186
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split													0
Share based compensation expense													69	38	41
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively													(3,232)		3,617
Repurchase of 2,053 common shares														(172)	(94)
Net earnings for the year													25,633	23,863	20,777
Ending balance	244,620				223,438				200,892				244,620	223,438	200,892
Wilson Bank Holding Company [Member] | Common Stock
Parent Company Only Financial Information [Line Items]
Beginning balance				15,304				15,144				14,997	15,304	15,144	14,997
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													197	145	139
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													10	15	12
Repurchase of 2,053 common shares															(4)
Ending balance	20,639				15,304				15,144				20,639	15,304	15,144
Wilson Bank Holding Company [Member] | Additional Paid-In Capital
Parent Company Only Financial Information [Line Items]
Beginning balance				61,339				57,709				54,519	61,339	57,709	54,519
Issuance of 69,289, 72,543 and 98,318 shares of stock pursuant to dividend reinvestment plan for the period 2014, 2015 and 2016 respectively													4,119	3,366	3,065
Issuance of 6,144, 7,633 and 5,120 shares of stock pursuant to exercise of stock options for the period 2014, 2015 and 2016 respectively													142	226	174
Issuance of 2,564,091 shares of common stock pursuant to a 4 for 3 stock split													(5,128)
Share based compensation expense													69	38	41
Repurchase of 2,053 common shares															(90)
Ending balance	60,541				61,339				57,709				60,541	61,339	57,709
Wilson Bank Holding Company [Member] | Retained Earnings
Parent Company Only Financial Information [Line Items]
Beginning balance				147,646				128,718				112,451	147,646	128,718	112,451
Cash dividends declared, $.45, $.49 and $.56 per share for the period ended 2014, 2015 and 2016 respectively													(5,756)	(4,935)	(4,510)
Net earnings for the year													25,633	23,863	20,777
Ending balance	167,523				147,646				128,718				167,523	147,646	128,718
Wilson Bank Holding Company [Member] | Net Unrealized Gain (Loss) On Available-For-Sale Securities
Parent Company Only Financial Information [Line Items]
Beginning balance				$ (851)				$ (679)				$ (4,296)	(851)	(679)	(4,296)
Net change in fair value of available-for-sale securities during the year, net of taxes of $2,245, $106 and $2,006 for the period 2014, 2015 and 2016 respectively													(3,232)		3,617
Repurchase of 2,053 common shares														(172)
Ending balance	$ (4,083)				$ (851)				$ (679)				$ (4,083)	$ (851)	$ (679)

XML

Wilson Bank Holding Company - Parent Company Financial Information - Statements of Changes in Stockholders' Equity - Parent Company Only - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) $ / shares shares
Parent Company Only Financial Information [Line Items]
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	5,120	7,633	6,144
Shares of stock pursuant to stock split	2,564,091
Stock split, conversion ratio	1.3333
Net change in fair value of available-for-sale securities, tax | $	$ (2,006)	$ (106)	$ 2,245
Repurchase of common shares			2,053
Common Stock
Parent Company Only Financial Information [Line Items]
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	6,120	7,633	6,144
Shares of stock pursuant to stock split	2,564,091
Repurchase of common shares			2,053
Additional Paid-In Capital
Parent Company Only Financial Information [Line Items]
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	6,120	7,633	6,144
Repurchase of common shares			2,053
Retained Earnings
Parent Company Only Financial Information [Line Items]
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Net Unrealized Gain (Loss) On Available-For-Sale Securities
Parent Company Only Financial Information [Line Items]
Net change in fair value of available-for-sale securities, tax | $	$ (2,006)	$ (106)	$ 2,245
Wilson Bank Holding Company [Member]
Parent Company Only Financial Information [Line Items]
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	5,120	7,633	6,144
Shares of stock pursuant to stock split	2,564,091
Net change in fair value of available-for-sale securities, tax | $	$ 2,006	$ 106	$ 2,245
Repurchase of common shares			2,053
Wilson Bank Holding Company [Member] | Common Stock
Parent Company Only Financial Information [Line Items]
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	5,120	7,633	6,144
Shares of stock pursuant to stock split	2,564,091
Repurchase of common shares			2,053
Wilson Bank Holding Company [Member] | Additional Paid-In Capital
Parent Company Only Financial Information [Line Items]
Shares of stock pursuant to dividend reinvestment plan	98,318	72,543	69,289
Shares of stock pursuant to exercise of stock options	5,120	7,633	6,144
Shares of stock pursuant to stock split	2,564,091
Repurchase of common shares			2,053
Wilson Bank Holding Company [Member] | Retained Earnings
Parent Company Only Financial Information [Line Items]
Cash dividends declared, per shares (in dollars per share) | $ / shares	$ 0.56	$ 0.49	$ 0.45
Wilson Bank Holding Company [Member] | Net Unrealized Gain (Loss) On Available-For-Sale Securities
Parent Company Only Financial Information [Line Items]
Net change in fair value of available-for-sale securities, tax | $	$ 2,006	$ 106	$ 2,245

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Wilson Bank Holding Company - Parent Company Financial Information - Statements of Cash Flows - Parent Company Only (Detail) - USD ($) $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Cash paid to suppliers and other													$ (53,454)	$ (51,474)	$ (45,890)
Net cash provided by operating activities													26,803	25,640	21,411
Cash flows from investing activities:
Net cash used in investing activities													(237,836)	(111,389)	(164,068)
Cash flows from financing activities:
Dividends paid													(5,756)	(4,935)	(4,510)
Proceeds from sale of stock pursuant to dividend reinvestment													4,316	3,511	3,204
Proceeds from exercise of stock options													152	241	186
Common shares repurchased													0	0	(94)
Net cash provided by financing activities													149,698	126,995	99,160
Net increase (decrease) in cash and cash equivalents													(61,335)	41,246	(43,497)
Cash and cash equivalents at beginning of year				$ 109,253				$ 68,007				$ 111,504	109,253	68,007	111,504
Cash and cash equivalents at end of year	$ 47,918				$ 109,253				$ 68,007				47,918	109,253	68,007
Reconciliation of net earnings to net cash used in operating activities:
Net earnings	6,802	$ 6,918	$ 6,270	5,643	5,958	$ 6,088	$ 6,201	5,616	6,100	$ 5,351	$ 5,154	4,172	25,633	23,863	20,777
Adjustments to reconcile net earnings to net cash used in operating activities:
Decrease (increase) in refundable income taxes													1,168	(1,413)	(601)
Share based compensation expense													69	38	41
Total adjustments													1,170	1,777	634
Net cash provided by operating activities													26,803	25,640	21,411
Wilson Bank Holding Company [Member]
Cash flows from operating activities:
Cash paid to suppliers and other													(417)	(464)	(501)
Tax benefits received													198	212	173
Net cash provided by operating activities													(219)	(252)	(328)
Cash flows from investing activities:
Dividends received from commercial bank subsidiary													1,500	2,000	0
Net cash used in investing activities													1,500	2,000	0
Cash flows from financing activities:
Dividends paid													(5,756)	(4,935)	(4,510)
Proceeds from sale of stock pursuant to dividend reinvestment													4,316	3,511	3,204
Proceeds from exercise of stock options													152	241	186
Common shares repurchased													0	0	(94)
Net cash provided by financing activities													(1,288)	(1,183)	(1,214)
Net increase (decrease) in cash and cash equivalents													(7)	565	(1,542)
Cash and cash equivalents at beginning of year				$ 1,685				$ 1,120				$ 2,662	1,685	1,120	2,662
Cash and cash equivalents at end of year	$ 1,678				$ 1,685				$ 1,120				1,678	1,685	1,120
Reconciliation of net earnings to net cash used in operating activities:
Net earnings													25,633	23,863	20,777
Adjustments to reconcile net earnings to net cash used in operating activities:
Equity in earnings of commercial bank subsidiary													(25,985)	(24,167)	(21,107)
Decrease (increase) in refundable income taxes													29	14	(39)
Share based compensation expense													104	38	41
Total adjustments													(25,852)	(24,115)	(21,105)
Net cash provided by operating activities													$ (219)	$ (252)	$ (328)

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Quarterly Financial Data (Unaudited) - Quarterly Results of Operations for the Four Quarters (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended												12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information Disclosure [Abstract]
Interest income	$ 22,078	$ 21,454	$ 20,877	$ 20,337	$ 20,213	$ 19,982	$ 19,617	$ 19,027	$ 19,180	$ 18,980	$ 18,286	$ 17,934	$ 84,746	$ 78,839	$ 74,380
Interest expense	1,990	2,077	2,106	2,111	2,087	2,114	2,191	2,216	2,397	2,426	2,437	2,508	8,284	8,608	9,768
Net interest income	20,088	19,377	18,771	18,226	18,126	17,868	17,426	16,811	16,783	16,554	15,849	15,426	76,462	70,231	64,612
Provision for loan losses	89	141	82	67	123	109	81	75	134	87	28	249
Earnings before income taxes	10,120	11,095	10,162	9,097	8,720	9,862	9,889	9,154	8,888	8,772	8,503	6,924	40,474	37,625	33,087
Net earnings	$ 6,802	$ 6,918	$ 6,270	$ 5,643	$ 5,958	$ 6,088	$ 6,201	$ 5,616	$ 6,100	$ 5,351	$ 5,154	$ 4,172	$ 25,633	$ 23,863	$ 20,777
Basic earnings per common share (in dollars per share)	$ 0.66	$ 0.67	$ 0.61	$ 0.55	$ 0.59	$ 0.60	$ 0.61	$ 0.55	$ 0.61	$ 0.53	$ 0.51	$ 0.41	$ 2.49	$ 2.35	$ 2.06
Diluted earnings per common share (in dollars per share)	$ 0.66	$ 0.67	$ 0.61	$ 0.55	$ 0.59	$ 0.60	$ 0.61	$ 0.55	$ 0.61	$ 0.53	$ 0.51	$ 0.41	$ 2.49	$ 2.35	$ 2.06