Recent news coverage includes the appointment of Lisa Shileny as CEO in early 2025. Other news items are general market articles unrelated to the company.

• Lisa Shileny was appointed President and Chief Executive Officer of Hills Bancorporation and Hills Bank effective January 1, 2025 [N5].

The company benefits from a diversified loan portfolio heavily weighted toward real estate, which historically provides stable collateral and repayment sources. Its strong local market presence in growing Iowa communities and comprehensive banking services support customer retention and deposit growth. The appointment of an experienced CEO with deep company knowledge may enhance strategic execution. The bank's mortgage origination and secondary market sales generate fee income, adding to revenue diversification. Adequate liquidity and positive net income reported in recent quarters reflect operational strength.

Risks include exposure to the agricultural sector, which is sensitive to commodity price volatility, weather conditions, and geopolitical trade tensions that could impair borrower repayment capacity. Increased reliance on wholesale funding and uninsured deposits may elevate liquidity risk. Rising interest rates have caused unrealized losses in the securities portfolio, potentially affecting capital and earnings. Intense competition from larger banks, credit unions, and nonbank financial entities may pressure margins and market share. Regulatory constraints and economic uncertainties could limit growth and profitability.

Hills Bancorporation's moat is primarily based on its strong local presence and relationships within its Iowa trade area, including Johnson, Linn, Washington, and Iowa counties. The bank's comprehensive service offerings across commercial, real estate, agricultural, and consumer banking, combined with trust and wealth management services, provide diversified revenue streams. Its longstanding history since 1982 and full ownership of Hills Bank and Trust Company support operational stability. The company's local knowledge and customer relationships may provide competitive advantages against larger institutions and nonbank competitors, although competition remains intense. Regulatory constraints and the bank's regional focus limit scale but reinforce community ties.

• Geopolitical and Economic Instability: Global conflicts, trade restrictions, inflation, and supply chain disruptions could adversely affect borrower credit quality and loan demand, especially in agriculture.
• Agricultural Sector Exposure: Volatility in commodity prices, adverse weather, and input cost increases may reduce agricultural borrowers' repayment capacity, increasing credit risk and loan losses.
• Liquidity and Funding Risks: Increased reliance on wholesale funding and uninsured deposits could affect liquidity availability and funding costs, impacting net interest income and earnings.
• Interest Rate Risk: Rising market interest rates have led to unrealized losses in the securities portfolio, which may affect accumulated other comprehensive income and capital levels.
• Competitive Pressure: Competition from banks, credit unions, and nonbank financial institutions with potentially lower cost structures and fewer regulatory constraints may pressure pricing and market share.

• Hills Bancorporation is a holding company engaged principally in banking through its subsidiary Hills Bank and Trust Company, operating entirely within Iowa [S1].
• The company was incorporated in 1982 and owns 100% of Hills Bank and Trust Company since 1984 [S1].
• The bank is a full-service commercial bank serving individuals, businesses, governmental units, and institutional customers [S1].
• Banking services include demand, savings, and time deposits; commercial, real estate, agricultural, and consumer loans; estate and trust administration; pension plans; farm management; investment advisory; and custodial services [S1].
• The bank earns substantial fees from originating mortgages sold on the secondary market without retaining servicing rights [S1].
• As of December 31, 2025, the loan portfolio totaled approximately $3.56 billion, with real estate loans comprising 86.39% of the portfolio [S1].
• Mortgage loans totaled $2.741 billion (76.90% of loans), including residential ($1.405 billion), commercial ($565.18 million), multi-family ($494.28 million), and farmland loans ($276.79 million) [S1].
• Construction loans totaled $338.10 million (9.48% of loans), including personal residence construction and land development/commercial projects [S1].
• Commercial and financial loans totaled $295.62 million (8.29% of loans), including lines of credit and term loans, mostly secured [S1].
• Agricultural loans totaled $118.92 million (3.34% of loans), secured mostly by crops and machinery, with repayment affected by external factors such as weather and commodity prices [S1].
• Consumer loans totaled $28.76 million (0.81% of loans) as of December 31, 2025 [S1].
• Loans to state and political subdivisions totaled $41.89 million (1.17% of loans) [S1].
• The bank's primary funding source is demand, savings, and time deposits [S1].
• The bank operates in a trade area covering Johnson, Linn, Washington, and Iowa counties in Iowa, including communities such as Iowa City, Coralville, Cedar Rapids, and Kalona [S1].
• The bank faces competition from commercial banks, savings institutions, credit unions, securities firms, insurance companies, and other financial service providers [S1].
• The company is subject to extensive federal and state regulation affecting growth and earnings [S1].
• As of December 31, 2025, the bank employed 479 full-time and 30 part-time employees; the holding company had two employees [S1].
• Lisa A. Shileny was appointed President and CEO of the company and bank effective January 1, 2025 [S1].
• As of September 30, 2026, the company reported cash and cash equivalents of $41.463 million and net income of $23.467 million for the quarter, with basic and diluted EPS of $1.34 [S2].
• The company disclosed that financial figures are summarized from the latest available SEC filings and are provided for informational purposes only — not financial advice [S2].
• Risk factors include geopolitical instability, inflationary pressures, and trade policy impacts that could affect borrowers, especially in agriculture [S2].
• Agricultural borrowers face risks from commodity price volatility, weather, foreign demand, tariffs, and input costs, which could affect credit quality [S2].
• Changes in funding sources have increased reliance on wholesale funding and uninsured deposits, which could affect liquidity and earnings [S2].
• Market interest rate increases have caused unrealized losses in the securities portfolio, affecting accumulated other comprehensive income [S2].
• Recent news includes the appointment of Lisa Shileny as CEO announced in March 2026 [N5].