Hills Bancorporation (OTC: HBIA)

Hills Bancorporation is a bank holding company whose principal activity is conducted through its wholly owned subsidiary Hills Bank and Trust Company. The Company provides a full range of commercial banking services to individuals, businesses, governmental units and institutional customers within the state of Iowa. Its core operations include accepting deposits, making loans, and offering trust and wealth management services.

The Company generates revenue primarily from interest income on its loan portfolio, which consists of real estate, commercial, agricultural and consumer loans. It also earns fee income from mortgage loan originations that are sold on the secondary market without retaining servicing rights. Additional revenue streams include service charges on deposit accounts, trust and investment advisory fees, and other banking related fees.

Hills Bancorporation operates in a highly competitive market where it faces rivalry from other commercial banks, savings institutions, credit unions and nonbank financial entities. Its competitive position is supported by a strong local presence, deep community relationships and a solid capital base, as evidenced by a Community Bank Leverage Ratio of 12.94 percent as of December 31, 2025. While some competitors benefit from larger scale and lower regulatory costs, the Company differentiates itself through personalized service and a focus on the agricultural and residential lending niches of eastern Iowa.

The Company serves a diverse customer base that includes individual consumers, small and medium sized businesses, agricultural operators, governmental agencies and nonprofit organizations. Its deposit and loan relationships are concentrated in the communities of Johnson, Linn, Washington and Iowa Counties, where it maintains branches in Iowa City, Coralville, Lisbon, Kalona and Williamsburg.