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.

Rewards

Trading at 5.3% below its fair value

Earnings grew by 23.3% over the past year

Risk Analysis

No risks detected for HBIA from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid 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

3.2%

HBIA

16.8%

US Banks

12.5%

US Market


1 Year Return

n/a

HBIA

-26.9%

US Banks

-12.7%

US Market

Return vs Industry: Insufficient data to determine how HBIA performed against the US Banks industry.

Return vs Market: Insufficient data to determine how HBIA performed against the US Market.


Shareholder returns

HBIAIndustryMarket
7 Day3.2%16.8%12.5%
30 Day-0.4%-24.7%-14.7%
90 Day-0.8%-38.6%-21.5%
1 Yearn/a-24.8%-26.9%-10.9%-12.7%
3 Year28.7%28.7%-16.9%-23.0%12.6%5.4%
5 Year57.9%57.9%12.0%-0.7%31.9%17.5%

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?

5.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HBIA ($65) is trading below our estimate of fair value ($68.66)

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 (13.4x) compared to the Banks industry average (8.8x).

PE vs Market: HBIA is poor value based on its PE Ratio (13.4x) compared to the US market (13x).


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 (1.6x) 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?

-1.1%

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

Past Performance

How has Hills Bancorporation performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBIA has high quality earnings.

Growing Profit Margin: HBIA's current net profit margins (36.2%) are higher than last year (34.1%).


Past Earnings Growth Analysis

Earnings Trend: HBIA's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: HBIA's earnings growth over the past year (23.3%) exceeds its 5-year average (8.5% per year).

Earnings vs Industry: HBIA earnings growth over the past year (23.3%) exceeded the Banks industry 11%.


Return on Equity

High ROE: HBIA's Return on Equity (12.1%) 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

Inventory Level: HBIA has a low level of unsold assets or inventory.

Debt Coverage by Assets: HBIA's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: HBIA's level of assets compared to its equity is low.

Allowance for Bad Loans: HBIA has a sufficient allowance for bad loans.

Low Risk Liabilities: HBIA's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBIA has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HBIA's loans are broadly funded by customer deposits.

Level of Bad Loans: HBIA has an appropriate level of bad loans (0.78%)


Next Steps

Dividend

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

1.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBIA's dividend (1.26%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: HBIA's dividend (1.26%) is low compared to the top 25% of dividend payers in the US market (5.49%).


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 (16.9%), 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?

13.7yrs

Average management tenure


CEO

Dwight Seegmiller (66yo)

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 ($USD533.89K) is below average for companies of similar size in the US market ($USD3.18M).

Compensation vs Earnings: Dwight's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Dwight Seegmiller
Presidentno dataUS$533.89k2.7% $16.6m
Shari DeMaris
Secretary7.33yrsUS$366.55k0.15% $939.9k
Theodore Pacha
VP & Independent Director30.17yrsUS$39.34k0.29% $1.8m
Steven Ropp
Senior VP & Director of Commercial Banking - Hills Bank & Trust12.17yrsUS$231.55k0.38% $2.4m
Timothy Finer
Senior VP15.17yrsUS$213.94k0.38% $2.3m
Bradford Zuber
Senior VP & Director of Trust Services - Hills Bank & Trust33.17yrsUS$239.40k0.39% $2.4m
Richard Oberman
Vice Presidentno dataUS$20.20kno data

13.7yrs

Average Tenure

62yo

Average Age

Experienced Management: HBIA's management team is seasoned and experienced (13.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dwight Seegmiller
Presidentno dataUS$533.89k2.7% $16.6m
Theodore Pacha
VP & Independent Director30.17yrsUS$39.34k0.29% $1.8m
Sheldon Yoder
Independent Director23.17yrsUS$35.09k0.24% $1.5m
Ann Rhodes
Independent Director27.17yrsUS$35.46k0.0054% $32.9k
Michael Hodge
Director20.17yrsUS$32.39k0.23% $1.4m
John Phelan
Independent Director12.92yrsUS$32.73k0.14% $870.9k
Michael Donovan
Independent Director12.92yrsUS$35.46k0.24% $1.5m
Emily Hughes
Independent Director7.92yrsUS$37.00k2.53% $15.5m
Thomas Wiele
Independent Director7.92yrsUS$37.78k0.023% $142.0k
James Schmitt
Independent Director0.92yrUS$144.89k0.0016% $10.1k

16.5yrs

Average Tenure

65yo

Average Age

Experienced Board: HBIA's board of directors are seasoned and experienced ( 16.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HBIA insiders have bought more shares than they have sold 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$613.299m
  • Shares outstanding: 9.44m
  • 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 customers in Iowa. The company accepts demand, savings, and time deposits; offers real estate, commercial and financial, and agricultural loans, as well as personal, automobile, installment, and other consumer loans; maintains night and safe deposit facilities; and provides collection, exchange, and other banking services. It also administers estates, personal trusts, and pension plans; offers farm management, investment advisory, and custodial services for individuals, corporations, and nonprofit organizations; and originates mortgages that are sold in the secondary residential real estate market without mortgage servicing rights being retained. The company operates through its main office and its 18 full service branches in the Iowa counties of Johnson, Linn, and Washington. Hills Bancorporation was founded in 1904 and is headquartered in Hills, Iowa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:35
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.