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EX-32.2 - EXHIBIT 32.2 - WILSON BANK HOLDING COwbhc09302018ex322.htm
EX-32.1 - EXHIBIT 32.1 - WILSON BANK HOLDING COwbhc09302018ex321.htm
EX-31.2 - EXHIBIT 31.2 - WILSON BANK HOLDING COwbhc09302018ex312.htm
EX-31.1 - EXHIBIT 31.1 - WILSON BANK HOLDING COwbhc09302018ex311.htm

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2018
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, TN
 
37087
(Address of principal executive offices)
 
(Zip Code)
 (615) 444-2265
(Registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
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 every Interactive Data File required to be submitted 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 such files).    Yes  x    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
o
Accelerated filer
x
 
 
 
 
Non-accelerated filer
o
Smaller reporting company
o
(Do not check if a smaller reporting company)
Emerging growth company
o





If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Common stock outstanding: 10,622,172 shares at November 8, 2018
 



Part I:
 
  
 
 
 
 
 
Item 1.
 
  
 
 
 
 
 
The unaudited consolidated financial statements of the Company and its subsidiary are as follows:
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
Item 2.
 
  
 
 
 
 
 
Item 3.
 
  
 
 
 
 
 
 
 
Disclosures required by Item 3 are incorporated by reference to Management’s Discussion and Analysis of Financial Condition and Results of Operations.
  
 
 
 
 
 
 
Item 4.
 
  
 
 
 
 
 
Part II:
 
  
 
 
 
 
 
Item 1.
 
  
 
 
 
 
 
Item 1A.
 
  
 
 
 
 
 
Item 2.
 
  
 
 
 
 
 
Item 3.
 
  
 
 
 
 
 
Item 4.
 
  
 
 
 
 
 
Item 5.
 
  
 
 
 
 
 
Item 6.
 
  
 
 
 
 
 
  
EX-31.1 SECTION 302 CERTIFICATION OF THE CEO
  
 
EX-31.2 SECTION 302 CERTIFICATION OF THE CFO
  
 
EX-32.1 SECTION 906 CERTIFICATION OF THE CEO
  
 
EX-32.2 SECTION 906 CERTIFICATION OF THE CFO
  
 
EX-101 INTERACTIVE DATA FILE
  
 



Part I. Financial Information
Item 1. Financial Statements
WILSON BANK HOLDING COMPANY
Consolidated Balance Sheets
September 30, 2018 and December 31, 2017

 
(Unaudited)
 
(Audited)
 
September 30,
2018
 
December 31,
2017
 
(Dollars in Thousands
Except Share Amounts)
Assets
 
 
 
Loans
$
1,967,744

 
$
1,751,162

Less: Allowance for loan losses
(26,628
)
 
(23,909
)
Net loans
1,941,116

 
1,727,253

Securities:
 
 
 
Held to maturity, at cost (market value $0 and $32,111, respectively)

 
32,480

Available-for-sale, at market (amortized cost $302,724 and $338,449, respectively)
287,524

 
332,716

Total securities
287,524

 
365,196

Loans held for sale
6,620

 
5,106

Interest bearing deposits
77,292

 
83,787

Restricted equity securities
3,012

 
3,012

Total earning assets
2,315,564

 
2,184,354

Cash and due from banks
10,129

 
11,731

Bank premises and equipment, net
58,539

 
54,215

Accrued interest receivable
6,634

 
6,266

Deferred income tax asset
10,205

 
7,424

Other real estate
2,032

 
1,635

Bank owned life insurance
30,739

 
29,475

Other assets
21,450

 
17,128

Goodwill
4,805

 
4,805

Total assets
$
2,460,097

 
$
2,317,033

Liabilities and Stockholders’ Equity
 
 
 
Deposits
$
2,159,686

 
$
2,037,745

Securities sold under repurchase agreements

 
864

Accrued interest and other liabilities
18,244

 
10,694

Total liabilities
2,177,930

 
2,049,303

Stockholders’ equity:
 
 
 
Common stock, $2.00 par value; authorized 50,000,000 shares, issued and outstanding 10,622,022 and 10,450,711 shares, respectively
21,244

 
20,901

Additional paid-in capital
73,818

 
66,047

Retained earnings
198,332

 
185,017

Net unrealized losses on available-for-sale securities, net of income taxes of $3,973 and $1,498, respectively
(11,227
)
 
(4,235
)
Total stockholders’ equity
282,167

 
267,730

Total liabilities and stockholders’ equity
$
2,460,097

 
$
2,317,033


See accompanying notes to consolidated financial statements (unaudited)

4



WILSON BANK HOLDING COMPANY
Consolidated Statements of Earnings
Three Months and Nine Months Ended September 30, 2018 and 2017 (Unaudited)
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(Dollars in Thousands Except Per Share Amounts)
Interest income:
 
 
 
 
 
 
 
Interest and fees on loans
$
24,342

 
$
20,944

 
$
69,522

 
$
61,813

Interest and dividends on securities:
 
 
 
 
 
 
 
Taxable securities
1,362

 
1,316

 
4,630

 
3,950

Exempt from Federal income taxes
245

 
280

 
846

 
925

Interest on loans held for sale
53

 
77

 
134

 
210

Interest on Federal funds sold
10

 
30

 
40

 
65

Interest on balances held at depository institutions
215

 
234

 
633

 
481

Interest and dividends on restricted securities
71

 
23

 
135

 
89

Total interest income
26,298

 
22,904

 
75,940

 
67,533

Interest expense:
 
 
 
 
 
 
 
Interest on negotiable order of withdrawal accounts
483

 
338

 
1,257

 
968

Interest on money market and savings accounts
1,147

 
630

 
2,737

 
1,560

Interest on time deposits
2,024

 
1,361

 
5,398

 
3,909

Interest on federal funds purchased
2

 

 
4

 
8

Interest on securities sold under repurchase agreements

 
3

 
16

 
5

Total interest expense
3,656

 
2,332

 
9,412

 
6,450

Net interest income before provision for loan losses
22,642

 
20,572

 
66,528

 
61,083

Provision for loan losses
1,088

 
436

 
3,201

 
1,245

Net interest income after provision for loan losses
21,554

 
20,136

 
63,327

 
59,838

Non-interest income:
 
 
 
 
 
 
 
Service charges on deposit accounts
1,770

 
1,607

 
4,981

 
4,530

Other fees and commissions
3,390

 
2,760

 
10,198

 
8,931

Income on BOLI and annuity contracts
206

 
215

 
627

 
656

Gain on sale of loans
1,287

 
1,124

 
3,311

 
3,214

Gain (loss) on the sale of fixed assets
(2
)
 

 
(2
)
 
8

Gain (loss) on sale of other real estate
(38
)
 
(14
)
 
(38
)
 
40

Loss on sale of securities
(79
)
 
(23
)
 
(650
)
 
(61
)
Loss on sale of other assets

 

 
(3
)
 
(2
)
Total non-interest income
6,534

 
5,669

 
18,424

 
17,316

Non-interest expense:
 
 
 
 
 
 
 
Salaries and employee benefits
10,005

 
9,442

 
30,561

 
27,313

Occupancy expenses, net
1,194

 
997

 
3,249

 
2,782

Advertising & public relations expense
576

 
611

 
1,817

 
1,700

Furniture and equipment expense
778

 
528

 
2,022

 
1,572

Data processing expense
751

 
713

 
2,204

 
2,094

ATM & interchange expense
807

 
673

 
2,228

 
1,891

Directors’ fees
117

 
163

 
396

 
476

Other operating expenses
3,142

 
2,240

 
8,605

 
7,140

Total non-interest expense
17,370

 
15,367

 
51,082

 
44,968

Earnings before income taxes
10,718

 
10,438

 
30,669

 
32,186

Income taxes
2,746

 
3,969

 
7,908

 
12,234

Net earnings
$
7,972

 
$
6,469

 
$
22,761

 
$
19,952

Weighted average number of common shares outstanding-basic
10,601,882

 
10,435,032

 
10,544,584

 
10,392,828

Weighted average number of common shares outstanding-diluted
10,611,766

 
10,440,277

 
10,551,536

 
10,397,826

Basic earnings per common share
$
0.75

 
$
0.62

 
$
2.16

 
$
1.92

Diluted earnings per common share
$
0.75

 
$
0.62

 
$
2.16

 
$
1.92

Dividends per share
$
0.55

 
$
0.35

 
$
0.90

 
$
0.65

See accompanying notes to consolidated financial statements (unaudited)

5



WILSON BANK HOLDING COMPANY
Consolidated Statements of Comprehensive Earnings
Three Months and Nine Months Ended September 30, 2018 and 2017
(Unaudited)
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2018
 
2017
 
2018
 
2017
 
(In Thousands)
Net earnings
$
7,972

 
$
6,469

 
$
22,761

 
$
19,952

Other comprehensive earnings (loss), net of tax:
 
 
 
 
 
 
 
Unrealized gains (losses) on available-for-sale securities arising during period, net of taxes of $614, $44, $2,645 and $1,280, respectively
(1,737
)
 
(73
)
 
(7,472
)
 
2,062

Reclassification adjustment for net losses on the sale of securities included in net earnings, net of taxes of $21, $8, $170 and $23, respectively
58

 
15

 
480

 
38

Other comprehensive earnings (loss)
(1,679
)
 
(58
)
 
(6,992
)
 
2,100

Comprehensive earnings
$
6,293

 
$
6,411

 
$
15,769

 
$
22,052


See accompanying notes to consolidated financial statements (unaudited)


6



WILSON BANK HOLDING COMPANY
Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2018 and 2017
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited) 
 
Nine Months Ended September 30,
 
2018
 
2017
 
(In Thousands)
Cash flows from operating activities:
 
 
 
Interest received
$
77,403

 
$
70,032

Fees and commissions received
15,179

 
13,461

Proceeds from sale of loans held for sale
96,428

 
109,054

Origination of loans held for sale
(94,631
)
 
(102,167
)
Interest paid
(8,741
)
 
(6,423
)
Cash paid to suppliers and employees
(45,786
)
 
(36,172
)
Income taxes paid
(8,011
)
 
(13,712
)
Net cash provided by operating activities
31,841

 
34,073

Cash flows from investing activities:
 
 
 
Proceeds from maturities, calls, and principal payments of held-to-maturity securities
4,651

 
3,578

Proceeds from maturities, calls, and principal payments of available-for-sale securities
30,334

 
29,556

Proceeds from the sale of available-for-sale securities
35,093

 
25,207

Proceeds from the sale of held-to-maturity securities
4,764

 

Purchase of available-for-sale securities
(9,118
)
 
(53,967
)
Loans made to customers, net of repayments
(217,539
)
 
(60,743
)
Purchase of bank owned life insurance and annuity contracts
(637
)
 

Purchase of premises and equipment
(6,958
)
 
(8,836
)
Proceeds from sale of premises and equipment

 
8

Proceeds from sale of other real estate
33

 
2,696

Proceeds from sale of other assets
4

 
1

Net cash used in investing activities
(159,373
)
 
(62,500
)
Cash flows from financing activities:
 
 
 
Net increase in non-interest bearing, savings and NOW deposit accounts
64,729

 
71,280

Net increase in time deposits
57,212

 
7,900

Net increase (decrease) in securities sold under repurchase agreements
(864
)
 
618

Dividends paid
(9,446
)
 
(6,730
)
Proceeds from sale of common stock pursuant to dividend reinvestment
7,470

 
5,266

Proceeds from exercise of stock options
334

 
116

Net cash provided by financing activities
119,435

 
78,450

Net increase in cash and cash equivalents
(8,097
)
 
50,023

Cash and cash equivalents at beginning of period
95,518

 
47,918

Cash and cash equivalents at end of period
$
87,421

 
$
97,941

 
See accompanying notes to consolidated financial statements (unaudited)






7



WILSON BANK HOLDING COMPANY
Consolidated Statements of Cash Flows, Continued
Nine Months Ended September 30, 2018 and 2017
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited) 
 
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
 
(In Thousands)
Reconciliation of net earnings to net cash provided by operating activities:
 
 
 
 
Net earnings
 
22,761

 
19,952

Adjustments to reconcile net earnings to net cash provided by operating activities:
 
 
 
 
Depreciation, amortization, and accretion
 
4,463

 
4,146

Provision for loan losses
 
3,201

 
1,245

Loss (gain) on sale of other real estate
 
38

 
(40
)
Loss on sale of securities
 
650

 
61

Stock-based compensation expense
 
310

 
261

Loss on the sale of other assets
 
3

 
2

Loss (gain) on the sale of bank premises and equipment
 
2

 
(8
)
Decrease (increase) in loans held for sale
 
(1,514
)
 
3,673

Decrease (increase) in deferred tax asset
 
(306
)
 
(851
)
Increase in other assets, bank owned life insurance and annuity contract earnings, net
 
(4,949
)
 
(700
)
Decrease (increase) in interest receivable
 
(368
)
 
501

Increase in other liabilities
 
6,676

 
6,431

Increase (decrease) in taxes payable
 
203

 
(627
)
Increase in interest payable
 
671

 
27

Total adjustments
 
9,080

 
14,121

                         Net cash provided by operating activities
 
$
31,841


$
34,073

 
 
 
 
 
Supplemental schedule of non-cash activities:
 
 
 
 
Unrealized gain (loss) in value of securities available-for-sale, net of taxes of $2,475 and $1,303 for the nine months ended September 30, 2018 and 2017, respectively
 
$
(6,992
)
 
$
2,100

Non-cash transfers from held-to-maturity securities to available-for-sale securities
 
$
22,800

 
$

Non-cash transfers from loans to other real estate
 
$
563

 
$
173

Non-cash transfers from other real estate to loans
 
$
95

 
$
195

Non-cash transfers from loans to other assets
 
$
7

 
$
2

See accompanying notes to consolidated financial statements (unaudited)

8



WILSON BANK HOLDING COMPANY
Notes to Consolidated Financial Statements
(Unaudited)
Note 1. Summary of Significant Accounting Policies
Nature of Business — Wilson Bank Holding Company (the “Company”) is a bank holding company whose primary business is conducted by its wholly-owned subsidiary, Wilson Bank & Trust (the “Bank”). The Bank is a commercial bank headquartered in Lebanon, Tennessee. The Bank provides a full range of banking services in its primary market areas of Wilson, Davidson, Rutherford, Trousdale, Sumner, Dekalb, Putnam and Smith Counties, Tennessee.

Basis of Presentation — The accompanying unaudited, consolidated financial statements have been prepared in accordance with instructions to Form 10-Q and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles. All adjustments consisting of normally recurring accruals that, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the periods covered by the report have been included. The accompanying unaudited consolidated financial statements should be read in conjunction with the Company’s consolidated audited financial statements and related notes appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 2017.
These consolidated financial statements include the accounts of the Company and the Bank. Significant intercompany transactions and accounts are eliminated in consolidation.
Use of Estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet date and the 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 include the determination of the allowance for loan losses, the valuation of deferred tax assets, determination of any impairment of goodwill or other intangibles, other-than-temporary impairment of securities, the valuation of other real estate, and the fair value of financial instruments. These financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. There have been no significant changes to the Company’s significant accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
Loans — Loans are reported at their outstanding principal balances less unearned income, the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method.
Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, 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.
Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which often is determined when the principal or interest on the loan is more than 90 days past due, unless the loan is both well-secured and in the process of collection. Generally, all interest accrued but not collected for loans that are placed on nonaccrual status, is reversed against current income. Interest income is subsequently recognized only to the extent cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis. A nonaccrual loan is returned to accruing status once the loan has been brought current and collection is reasonably assured or the loan has been “well-secured” through other techniques. Past due status is determined based on the contractual due date per the underlying loan agreement.

All loans that are placed on nonaccrual are further analyzed to determine if they should be classified as impaired loans. At December 31, 2017 and September 30, 2018, there were no loans classified as nonaccrual that were not also deemed to be impaired except for those loans not individually evaluated for impairment as described below. 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. This determination is made using one or more of a variety of techniques, which include a review of the borrower’s financial condition, debt-service coverage ratios, global cash flow analysis, guarantor support, other loan file information, meetings with borrowers, inspection or reappraisal of collateral and/or consultation with legal counsel as

9



well as results of reviews of other similar industry credits (e.g. builder loans, development loans, church loans, etc). Loans with an identified weakness and principal balance of $500,000 or more are subject to individual identification for impairment. Individually identified 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 if the loan is collateral dependent. If the recorded investment in the impaired loan exceeds the measure of fair value, a specific valuation allowance is established as a component of the allowance for loan losses or, in the case of collateral dependent loans, the excess may be charged off. Changes to the valuation allowance are recorded as a component of the provision for loan losses. Any subsequent adjustments to present value calculations for impaired loan valuations as a result of the passage of time, such as changes in the anticipated payback period for repayment, are recorded as a component of the provision for loan losses. For loans less than $500,000, the Company assigns a valuation allowance to these loans utilizing an allocation rate equal to the allocation rate calculated for non-impaired loans of a similar type.
Allowance for Loan Losses — The allowance for loan losses is maintained at a level that management believes to be adequate to absorb probable losses in the loan portfolio. Loan losses are charged against the allowance when they are known. Subsequent recoveries are credited to the allowance. Management’s determination of the adequacy of the allowance is based on an evaluation of the portfolio, current economic conditions, volume, growth, composition of the loan portfolio, homogeneous pools of loans, risk ratings of specific loans, historical loan loss factors, loss experience of various loan segments, identified impaired loans and other factors related to the portfolio. This evaluation is performed quarterly and is inherently subjective, as it requires material estimates that are susceptible to significant change including the amounts and timing of future cash flows expected to be received on any impaired loans.
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.

Recently Issued Accounting Pronouncements    

In May 2014, FASB issued 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. We adopted ASU 2014-09 effective January 1, 2018. The adoption of this ASU did not have a material impact on our consolidated financial statements.

In February 2016, FASB issued ASU 2016-02, "Leases (Topic 842)." The amendments in this ASU are effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. As a result of the amendment, lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustments, such as adjustments for initial direct costs. For income statement purposes, FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). Classification will be based on criteria that are largely similar to those applied in current lease accounting, but without explicit bright lines. We currently do not expect this ASU to have a material impact on our consolidated financial statements.

In June 2016, FASB  issued 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

10



for credit losses on held-to-maturity 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. We are also evaluating the sufficiency of current systems and data needed to comply with this ASU. While we are currently unable to reasonably estimate the impact on our consolidated financial statements of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date.

In March 2017, FASB issued ASU 2017-08, “Receivables -  Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” ASU 2017-08 provides guidance on the amortization period for certain purchased callable debt securities held at a premium. This update shortens the amortization period for the premium to the earliest call date. Under current generally accepted accounting principles, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument related to certain cash flow issues. ASU 2017-08 will be effective for us on January 1, 2019. We are currently evaluating the potential impact of ASU 2017-08 on our consolidated financial statements. We expect that the impact of adoption will be significantly influenced by the composition of our securities portfolio as of the adoption date.

In February 2018, FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220).”  On December 22, 2017, the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act).  The amendments in this update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users.  The Company elected to adopt this update as of December 31, 2017 and as a result reclassified $697,000 from retained earnings to accumulated other comprehensive income.

In August 2018, FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 will be effective for us on January 1, 2020, with early adoption permitted, and is not expected to have a significant impact on our consolidated financial statements.

Other than those previously discussed, there were no other recently issued accounting pronouncements that we believe are reasonably likely to materially impact the Company.

Subsequent Events  - Accounting Standards Codification (ASC) Topic 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued.  Wilson Bank Holding Company evaluated all events or transactions that occurred after June 30, 2018 through the date of the issued financial statements.

Note 2. Loans and Allowance for Loan Losses
For financial reporting purposes, the Company classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed by the Bank with the Federal Deposit Insurance Corporation (“FDIC”).
The following schedule details the loans of the Company at September 30, 2018 and December 31, 2017:

11



 
(In Thousands)
 
September 30,
2018
 
December 31,
2017
Mortgage loans on real estate
 
 
 
       Residential 1-4 family
$
443,392

 
$
406,667

Multifamily
124,515

 
91,992

Commercial
709,067

 
661,223

Construction and land development
478,835

 
392,039

Farmland
24,834

 
34,212

Second mortgages
9,424

 
8,952

Equity lines of credit
75,713

 
60,650

Total mortgage loans on real estate
1,865,780

 
1,655,735

Commercial loans
51,226

 
47,939

Agricultural loans
1,737

 
1,665

Consumer installment loans
 
 
 
Personal
43,412

 
39,624

Credit cards
3,494

 
3,385

Total consumer installment loans
46,906

 
43,009

Other loans
9,231

 
10,193

                                Total loans before net deferred loan fees
1,974,880

 
1,758,541

Net deferred loan fees
(7,136
)
 
(7,379
)
Total loans
1,967,744

 
1,751,162

Less: Allowance for loan losses
(26,628
)
 
(23,909
)
Net loans
$
1,941,116

 
$
1,727,253


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 repayments 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") ratios, minimum credit scores, and maximum debt to income ratios. 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

12



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 ratios, minimum credit scores, and maximum debt to income ratios. 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, if any. The cash flows of borrowers, however, may not be as expected and any 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 incorporate 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 ratios on secured consumer loans, minimum credit scores, and maximum debt to income ratios. 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 loan 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.

The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon 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 borrowers’ ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, current and anticipated economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations.

13



Transactions in the allowance for loan losses for the nine months ended September 30, 2018 and year ended December 31, 2017 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
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,156

 
1,011

 
9,267

 
6,094

 
487

 
94

 
723

 
401

 
676

 
23,909

Provision
1,147

 
296

 
322

 
1,001

 
(271
)
 
1

 
123

 
4

 
578

 
3,201

Charge-offs
(78
)
 

 

 
(18
)
 

 

 

 

 
(839
)
 
(935
)
Recoveries
40

 

 

 
68

 

 

 
1

 
3

 
341

 
453

Ending balance
$
6,265

 
1,307

 
9,589

 
7,145

 
216

 
95

 
847

 
408

 
756

 
26,628

Ending balance individually evaluated for impairment
$
884

 

 
310

 

 

 

 

 

 

 
1,194

Ending balance collectively evaluated for impairment
$
5,381

 
1,307

 
9,279

 
7,145

 
216

 
95

 
847

 
408

 
756

 
25,434

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
443,392

 
124,515

 
709,067

 
478,835

 
24,834

 
9,424

 
75,713

 
51,226

 
57,874

 
1,974,880

Ending balance individually evaluated for impairment
$
3,342

 

 
2,477

 
844

 
310

 

 

 

 

 
6,973

Ending balance collectively evaluated for impairment
$
440,050

 
124,515

 
706,590

 
477,991

 
24,524

 
9,424

 
75,713

 
51,226

 
57,874

 
1,967,907

 
Residential
1-4 Family
 
Multifamily
 
Commercial
Real Estate
 
Construction
 
Farmland
 
Second
Mortgages
 
Equity Lines
of Credit
 
Commercial
 
Agricultural, Installment and Other
 
Total
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,571

 
839

 
9,541

 
5,387

 
658

 
112

 
675

 
386

 
562

 
22,731

Provision
675

 
172

 
(414
)
 
586

 
(168
)
 
(10
)
 
45

 
9

 
786

 
1,681

Charge-offs
(118
)
 

 

 

 
(3
)
 
(11
)
 

 

 
(1,090
)
 
(1,222
)
Recoveries
28

 

 
140

 
121

 

 
3

 
3

 
6

 
418

 
719

Ending balance
$
5,156

 
1,011

 
9,267

 
6,094

 
487

 
94

 
723

 
401

 
676

 
23,909

Ending balance individually evaluated for impairment
$
136

 

 
291

 

 

 

 

 

 

 
427

Ending balance collectively evaluated for impairment
$
5,020

 
1,011

 
8,976

 
6,094

 
487

 
94

 
723

 
401

 
676

 
23,482

Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance
$
406,667

 
91,992

 
661,223

 
392,039

 
34,212

 
8,952

 
60,650

 
47,939

 
54,867

 
1,758,541

Ending balance individually evaluated for impairment
$
2,678

 

 
3,046

 
1,182

 

 

 

 

 

 
6,906

Ending balance collectively evaluated for impairment
$
403,989

 
91,992

 
658,177

 
390,857

 
34,212

 
8,952

 
60,650

 
47,939

 
54,867

 
1,751,635


14



Impaired Loans
At September 30, 2018, the Company had certain impaired loans of $2.1 million which were on non-accruing interest status. At December 31, 2017, the Company had certain impaired loans of $1.7 million 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 at September 30, 2018 and December 31, 2017. 
 
In Thousands
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
September 30, 2018
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
1,654

 
1,629

 

 
2,141

 
99

Multifamily

 

 

 

 

Commercial real estate
318

 
318

 

 
464

 
12

Construction
846

 
844

 

 
946

 
32

Farmland
310

 
310

 

 
233

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
3,128

 
3,101

 

 
3,784

 
143

With related allowance recorded:
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
1,768

 
1,988

 
884

 
1,474

 
63

Multifamily

 

 

 

 

Commercial real estate
2,161

 
2,159

 
310

 
2,161

 
13

Construction

 

 

 

 

Farmland

 

 

 

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
3,929

 
4,147

 
1,194

 
3,635

 
76

Total
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
3,422

 
3,617

 
884

 
3,615

 
162

Multifamily

 

 

 

 

Commercial real estate
2,479

 
2,477

 
310

 
2,625

 
25

Construction
846

 
844

 

 
946

 
32

Farmland
310

 
310

 

 
233

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
7,057

 
7,248

 
1,194

 
7,419

 
219


15



 
In Thousands
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
December 31, 2017
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
2,314

 
2,322

 

 
742

 
103

Multifamily

 

 

 

 

Commercial real estate
893

 
889

 

 
902

 
39

Construction
1,185

 
1,182

 

 
1,354

 
64

Farmland

 

 

 
26

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
4,392

 
4,393

 

 
3,024

 
206

With related allowance recorded:
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
409

 
581

 
136

 
461

 
29

Multifamily

 

 

 

 

Commercial real estate
2,157

 
2,157

 
291

 
2,894

 
17

Construction

 

 

 

 

Farmland

 

 

 

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
2,566

 
2,738

 
427

 
3,355

 
46

Total:
 
 
 
 
 
 
 
 
 
Residential 1-4 family
$
2,723

 
2,903

 
136

 
1,203

 
132

Multifamily

 

 

 

 

Commercial real estate
3,050

 
3,046

 
291

 
3,796

 
56

Construction
1,185

 
1,182

 

 
1,354

 
64

Farmland

 

 

 
26

 

Second mortgages

 

 

 

 

Equity lines of credit

 

 

 

 

Commercial

 

 

 

 

Agricultural, installment and other

 

 

 

 

 
$
6,958

 
7,131

 
427

 
6,379

 
252

Impaired loans also include loans that the Bank may elect to formally restructure due to the weakening credit status of a borrower such that the restructuring may facilitate a repayment plan that minimizes the potential losses that the Bank may otherwise incur. These loans are classified as impaired loans and, if on non-accruing status as of the date of restructuring, the loans are included in the nonperforming loan balances. Not included in nonperforming loans are loans that have been restructured that were performing as of the restructure date.

Troubled Debt Restructuring
The Bank’s loan portfolio includes certain loans that have been modified in a troubled debt restructuring ("TDR"), where economic or other concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Bank’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.

16



The following table summarizes the carrying balances of TDRs at September 30, 2018 and December 31, 2017. 
 
September 30, 2018
 
December 31, 2017
 
(In thousands)
Performing TDRs
$
1,758

 
$
2,250

Nonperforming TDRs
1,324

 
1,834

Total TDRS
$
3,082

 
$
4,084


The following table outlines the amount of each troubled debt restructuring categorized by loan classification for the nine months ended September 30, 2018 and the year ended December 31, 2017 (in thousands, except for number of contracts): 
 
September 30, 2018
 
December 31, 2017
 
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
3

 
$
49

 
$
49

 
6

 
$
610

 
$
535

Multifamily

 

 

 

 

 

Commercial real estate

 

 

 

 

 

Construction

 

 

 

 

 

Farmland
1

 
310

 
310

 
1

 
86

 
86

Second mortgages

 

 

 

 

 

Equity lines of credit

 

 

 

 

 

Commercial

 

 

 

 

 

Agricultural, installment and other
1

 
92

 
92

 
1

 
3

 
3

Total
5

 
$
451

 
$
451

 
8

 
$
699

 
$
624

    
As of September 30, 2018 the Company had two loan relationships totaling $551,000 that had been previously classified as TDRs subsequently default within twelve months of restructuring. As of December 31, 2017, the Company had one loan relationship totaling $103,000 that had been previously classified as a TDR subsequently default within twelve months of restructuring. A default is defined as an occurrence which violates the terms of the receivable’s contract.

As of September 30, 2018 and December 31, 2017, the Company’s recorded investment in consumer mortgage loans in the process of foreclosure amounted to $280,000 and $201,000, respectively.
Potential problem loans, which include nonperforming loans, amounted to approximately $13.3 million at September 30, 2018 and $16.2 million at December 31, 2017. 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 Bank’s primary federal regulator, for loans classified as special mention, substandard, or doubtful.
The following summary presents the Bank's 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 Bank’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

17



liquidation of the debt. Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
Doubtful loans have all the characteristics of substandard loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The Bank considers all doubtful loans to be impaired and places such loans on nonaccrual status.

18



The following table is a summary of the Bank’s loan portfolio by risk rating at September 30, 2018 and December 31, 2017: 
<
 
(In Thousands)
 
Residential
1-4 Family
 
Multifamily
 
Commercial
Real Estate
 
Construction
 
Farmland
 
Second
Mortgages
 
Equity
Lines
of Credit
 
Commercial
 
Agricultural, installment and other
 
Total
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by Internally Assigned Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
434,841

 
124,515

 
705,453

 
478,670

 
24,365

 
9,203

 
75,557

 
51,226

 
57,750

 
1,961,580

Special Mention
3,876

 

 
1,690

 
68

 
93

 
181

 

 

 
82

 
5,990

Substandard
4,675

 

 
1,924

 
97

 
376

 
40

 
156

 

 
41

 
7,309

Doubtful

 

 

 

 

 

 

 

 
1

 
1

Total
$
443,392

 
124,515

 
709,067

 
478,835

 
24,834

 
9,424

 
75,713

 
51,226

 
57,874

 
1,974,880

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by Internally Assigned Rating
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pass
$
395,664

 
91,992

 
657,456

 
391,778

 
33,500

 
8,765

 
60,553

 
47,937

 
54,697

 
1,742,342

Special Mention
5,677

 

 
646

 
84

 
125

 
43

 
41

 
2

 
77

 
6,695

Substandard
5,326

 

 
3,121

 
177

 
587

 
144

 
56