OTCPK:HBIA

Stock Analysis Report

Hills Bancorporation

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 in Iowa.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.

Risks

  • Hills Bancorporation is not covered by any analysts.

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


Market Performance


7 Day Return

-1.1%

OTCPK:HBIA

3.3%

US Banks

2.1%

US Market


1 Year Return

n/a

OTCPK:HBIA

-13.8%

US Banks

-0.04%

US Market

No trading data on HBIA.

No trading data on HBIA.


Share holder returns

HBIAIndustryMarket
7 Day-1.1%3.3%2.1%
30 Day0%-7.0%-3.2%
90 Day1.3%-2.3%2.8%
1 Yearn/a-11.3%-13.8%2.2%-0.04%
3 Year40.2%40.2%42.5%32.7%41.5%32.3%
5 Year69.6%69.6%54.2%37.6%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

15.6x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Hills Bancorporation's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Hills Bancorporation's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Hills Bancorporation is overvalued based on earnings compared to the US Banks industry average.

Hills Bancorporation is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Hills Bancorporation, we can't assess if its growth is good value.


Price Based on Value of Assets

Hills Bancorporation is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Hills Bancorporation expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Hills Bancorporation is high growth as no revenue estimate data is available.

Hills Bancorporation's earnings are expected to grow by 4.2% yearly, however this is not considered high growth (20% yearly).

Unable to compare Hills Bancorporation's revenue growth to the United States of America market average as no estimate data is available.

Hills Bancorporation's earnings growth is positive but not above the United States of America market average.

Hills Bancorporation's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Hills Bancorporation will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Hills Bancorporation performed over the past 5 years?

6.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Hills Bancorporation's year on year earnings growth rate has been positive over the past 5 years.

Hills Bancorporation's 1-year earnings growth exceeds its 5-year average (13.7% vs 6.7%)

Hills Bancorporation's earnings growth has not exceeded the US Banks industry average in the past year (13.7% vs 33.2%).


Return on Equity

Hills Bancorporation has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Hills Bancorporation used its assets more efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Hills Bancorporation improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


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

Information is not available.

Information is not available.


Financial Institutions Analysis

Hills Bancorporation has an acceptable proportion of non-loan assets held.

Hills Bancorporation has a sufficient allowance for bad loans.

Hills Bancorporation's liabilities are made up of primarily low risk sources of funding.

Hills Bancorporation's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Hills Bancorporation are broadly funded by customer deposits.

Hills Bancorporation has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Hills Bancorporation's current dividend yield, its reliability and sustainability?

1.29%

Current Dividend Yield


Dividend Yield and Payments Analysis

Hills Bancorporation's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Hills Bancorporation's dividend is below the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (5x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Hills Bancorporation's salary, the management and board of directors tenure and is there insider trading?

13.1yrs

Average management tenure


CEO

Dwight Seegmiller (66yo)

0.0yrs

Tenure

US$533,180

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

Dwight's remuneration is lower than average for companies of similar size in United States of America.

Dwight's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

13.1yrs

Average Tenure

62yo

Average Age

The average tenure for the Hills Bancorporation management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

12.3yrs

Average Tenure

65yo

Average Age

The average tenure for the Hills Bancorporation board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

More shares have been bought than sold by Hills Bancorporation individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$2,25002 Jul 19
Steven Ropp
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Commercial Banking - Hills Bank & Trust
Shares40.32
Max PriceUS$55.80
BuyUS$2,25002 Apr 19
Steven Ropp
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Commercial Banking - Hills Bank & Trust
Shares40.98
Max PriceUS$54.90
BuyUS$54914 Jan 19
Bradford Zuber
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Trust Services - Hills Bank & Trust
Shares9
Max PriceUS$61.00
BuyUS$2,85414 Jan 19
Michael Donovan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares46.79
Max PriceUS$61.00
BuyUS$40,56514 Jan 19
John Phelan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares665
Max PriceUS$61.00
BuyUS$7,11214 Jan 19
Thomas Wiele
EntityIndividual
Role
Member of the Board of Directors
Director
Shares116.59
Max PriceUS$61.00
BuyUS$2,25003 Jan 19
Steven Ropp
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Commercial Banking - Hills Bank & Trust
Shares42.02
Max PriceUS$53.55
SellUS$18,30016 Nov 18
Bradford Zuber
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Trust Services - Hills Bank & Trust
Shares300
Max PriceUS$61.00
BuyUS$2,25009 Oct 18
Steven Ropp
EntityIndividual
Role
Other Key Executive
Senior VP & Director of Commercial Banking - Hills Bank & Trust
Shares43.1
Max PriceUS$52.20

Ownership Breakdown


Management Team

  • Dwight Seegmiller (66yo)

    President

    • Tenure: 0.0yrs
    • Compensation: US$533.18k
  • Theodore Pacha (70yo)

    VP & Director

    • Tenure: 0.0yrs
    • Compensation: US$36.83k
  • Richard Oberman (83yo)

    Vice President

    • Tenure: 0.0yrs
    • Compensation: US$21.93k
  • Steven Ropp (58yo)

    Senior VP & Director of Commercial Banking - Hills Bank & Trust

    • Tenure: 11.6yrs
    • Compensation: US$222.49k
  • Timothy Finer (57yo)

    Senior VP

    • Tenure: 14.6yrs
    • Compensation: US$205.61k
  • Bradford Zuber (62yo)

    Senior VP & Director of Trust Services - Hills Bank & Trust

    • Tenure: 32.6yrs
    • Compensation: US$231.42k
  • Shari DeMaris (50yo)

    Secretary

    • Tenure: 6.8yrs
    • Compensation: US$350.33k

Board Members

  • Dwight Seegmiller (66yo)

    President

    • Tenure: 0.0yrs
    • Compensation: US$533.18k
  • Sheldon Yoder (66yo)

    Director

    • Tenure: 22.6yrs
    • Compensation: US$34.50k
  • Ann Rhodes (65yo)

    Director

    • Tenure: 26.6yrs
    • Compensation: US$32.84k
  • Theodore Pacha (70yo)

    VP & Director

    • Tenure: 0.0yrs
    • Compensation: US$36.83k
  • Michael Hodge (65yo)

    Director

    • Tenure: 19.6yrs
    • Compensation: US$28.69k
  • John Phelan (64yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$32.40k
  • Michael Donovan (56yo)

    Director

    • Tenure: 12.3yrs
    • Compensation: US$32.04k
  • Emily Hughes (51yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$35.40k
  • Tom Wiele (66yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$36.35k
  • James Schmitt (63yo)

    Director

    • Tenure: 0.3yrs

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$596.405m
  • Shares outstanding: 9.35m
  • Website: https://www.hillsbank.com

Number of Employees


Location

  • Hills Bancorporation
  • 131 East Main Street
  • PO Box 160
  • Hills
  • Iowa
  • 52235
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBIAOTCPK (Pink Sheets LLC)YesCommon StockUSUSDJul 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 23:38
End of Day Share Price2019/08/19 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.