Note 12. Divestiture of Wilson Bank Credit Card

Effective January 1, 2026, Wilson Bank entered into a definitive agreement with an unaffiliated third party to divest of its credit card business. The transaction closed in January 2026; however, Wilson Bank will continue to subservice the credit cards until April 2027. In connection with the sale, credit card balances totaling $6.7 million were moved out of the Bank's portfolio and a premium of $1.1 million was recognized into income, based upon the sales agreement with the purchaser. The reserve for customer credit card rewards points in the amount of $1.2 million was reversed and an additional expense of $120,000 for such points was recognized on the settlement date.