Hills Bancorporation
Market Cap
US$580.6m
Last Updated
2020/10/25 23:36 UTC
Data Sources
Company Financials
Executive Summary
Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking services to individuals, businesses, governmental units, and institutional customers. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
Similar Companies
Share Price & News
How has Hills Bancorporation's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HBIA has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0%
HBIA
5.1%
US Banks
0.4%
US Market
1 Year Return
-8.5%
HBIA
-26.7%
US Banks
17.8%
US Market
Return vs Industry: HBIA exceeded the US Banks industry which returned -26.3% over the past year.
Return vs Market: HBIA underperformed the US Market which returned 18.3% over the past year.
Shareholder returns
| HBIA | Industry | Market | |
|---|---|---|---|
| 7 Day | 0% | 5.1% | 0.4% |
| 30 Day | 0% | 11.9% | 6.1% |
| 90 Day | n/a | 5.4% | 8.9% |
| 1 Year | -8.5%-8.5% | -24.0%-26.7% | 20.5%17.8% |
| 3 Year | 17.3%17.3% | -15.9%-22.9% | 42.3%32.9% |
| 5 Year | 42.6%42.6% | 20.3%5.4% | 84.2%63.4% |
Price Volatility Vs. Market
How volatile is Hills Bancorporation's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Valuation
Is Hills Bancorporation undervalued compared to its fair value and its price relative to the market?
5.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HBIA ($62) is trading below our estimate of fair value ($65.34)
Significantly Below Fair Value: HBIA is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HBIA is poor value based on its PE Ratio (13.9x) compared to the US Banks industry average (10.3x).
PE vs Market: HBIA is good value based on its PE Ratio (13.9x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HBIA's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HBIA is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Hills Bancorporation forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
15.3%
Forecasted Banks industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hills Bancorporation has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Examine Hills Bancorporation's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
- While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on theOTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Hills Bancorporation's filings and announcementshere.
- Explore growth companies in the Banks industry.
Past Performance
How has Hills Bancorporation performed over the past 5 years?
9.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HBIA has high quality earnings.
Growing Profit Margin: HBIA's current net profit margins (34.1%) are lower than last year (34.2%).
Past Earnings Growth Analysis
Earnings Trend: HBIA's earnings have grown by 9.1% per year over the past 5 years.
Accelerating Growth: HBIA's earnings growth over the past year (8.9%) is below its 5-year average (9.1% per year).
Earnings vs Industry: HBIA earnings growth over the past year (8.9%) exceeded the Banks industry -3.7%.
Return on Equity
High ROE: HBIA's Return on Equity (10.5%) is considered low.
Next Steps
Financial Health
How is Hills Bancorporation's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: HBIA's Assets to Equity ratio (9x) is low.
Allowance for Bad Loans: HBIA has a sufficient allowance for bad loans (184%).
Low Risk Liabilities: 92% of HBIA's liabilities are made up of primarily low risk sources of funding.
Loan Level: HBIA has an appropriate level of Loans to Assets ratio (76%).
Low Risk Deposits: HBIA's Loans to Deposits ratio (93%) is appropriate.
Level of Bad Loans: HBIA has an appropriate level of bad loans (0.7%).
Next Steps
Dividend
What is Hills Bancorporation current dividend yield, its reliability and sustainability?
1.44%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HBIA's dividend (1.44%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.63%).
High Dividend: HBIA's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (4.56%).
Stability and Growth of Payments
Stable Dividend: HBIA's dividends per share have been stable in the past 10 years.
Growing Dividend: HBIA's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (20%), HBIA's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
14.3yrs
Average management tenure
CEO
Dwight Seegmiller (67 yo)
no data
Tenure
US$533,885
Compensation
Mr. Dwight O. Seegmiller has served as a Director of Hills Bancorporation (the “Company”) since 1986 and Hills Bank and Trust Company (the “Bank”) since 1986. Mr. Seegmiller is the President and Chief Exec ...
CEO Compensation Analysis
Compensation vs Market: Dwight's total compensation ($USD533.89K) is below average for companies of similar size in the US market ($USD1.93M).
Compensation vs Earnings: Dwight's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$533.89k | 2.72% $ 15.8m | |
| VP & Independent Director | 30.75yrs | US$39.34k | 0.29% $ 1.7m | |
| Senior VP & Director of Commercial Banking - Hills Bank & Trust | 12.75yrs | US$231.55k | 0.40% $ 2.3m | |
| Senior VP | 15.75yrs | US$213.94k | 0.38% $ 2.2m | |
| Senior VP & Director of Trust Services - Hills Bank & Trust | 33.75yrs | US$239.40k | 0.39% $ 2.3m | |
| Interim Principal Accounting Officer | 0.083yr | no data | no data | |
| Vice President | no data | US$20.20k | no data |
14.3yrs
Average Tenure
63yo
Average Age
Experienced Management: HBIA's management team is seasoned and experienced (14.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | no data | US$533.89k | 2.72% $ 15.8m | |
| VP & Independent Director | 30.75yrs | US$39.34k | 0.29% $ 1.7m | |
| Independent Director | 23.75yrs | US$35.09k | 0.25% $ 1.4m | |
| Independent Director | 27.75yrs | US$35.46k | 0.0054% $ 31.4k | |
| Director | 20.75yrs | US$32.39k | 0.23% $ 1.4m | |
| Independent Director | 13.5yrs | US$32.73k | 0.14% $ 830.7k | |
| Independent Director | 13.5yrs | US$35.46k | 0.24% $ 1.4m | |
| Independent Director | 8.5yrs | US$37.00k | 2.55% $ 14.8m | |
| Independent Director | 8.5yrs | US$37.78k | 0.023% $ 135.4k | |
| Independent Director | 1.5yrs | US$144.89k | 0.0017% $ 9.6k | |
| Independent Director | 1.5yrs | US$146.84k | no data | |
| Independent Director | 1.5yrs | US$144.89k | no data |
13.5yrs
Average Tenure
65.5yo
Average Age
Experienced Board: HBIA's board of directors are seasoned and experienced ( 13.5 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HBIA insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hills Bancorporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Hills Bancorporation
- Ticker: HBIA
- Exchange: OTCPK
- Founded: 1904
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$580.644m
- Shares outstanding: 9.37m
- Website: https://www.hillsbank.com
Number of Employees
Location
- Hills Bancorporation
- 131 East Main Street
- PO Box 160
- Hills
- Iowa
- 52235
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HBIA | OTCPK (Pink Sheets LLC) | Yes | Common Stock | US | USD | Jul 1999 |
Biography
Hills Bancorporation operates as the bank holding company for Hills Bank and Trust Company that provides commercial banking services to individuals, businesses, governmental units, and institutional custom ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/25 23:36 |
| End of Day Share Price | 2020/10/20 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.