OTCPK:HBIA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

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. More Details


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

HBIAIndustryMarket
7 Day0%5.1%0.4%
30 Day0%11.9%6.1%
90 Dayn/a5.4%8.9%
1 Year-8.5%-8.5%-24.0%-26.7%20.5%17.8%
3 Year17.3%17.3%-15.9%-22.9%42.3%32.9%
5 Year42.6%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

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

NamePositionTenureCompensationOwnership
Dwight Seegmiller
Presidentno dataUS$533.89k2.72%
$ 15.8m
Theodore Pacha
VP & Independent Director30.75yrsUS$39.34k0.29%
$ 1.7m
Steven Ropp
Senior VP & Director of Commercial Banking - Hills Bank & Trust12.75yrsUS$231.55k0.40%
$ 2.3m
Timothy Finer
Senior VP15.75yrsUS$213.94k0.38%
$ 2.2m
Bradford Zuber
Senior VP & Director of Trust Services - Hills Bank & Trust33.75yrsUS$239.40k0.39%
$ 2.3m
Jason Weeks
Interim Principal Accounting Officer0.083yrno datano data
Richard Oberman
Vice Presidentno dataUS$20.20kno 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

NamePositionTenureCompensationOwnership
Dwight Seegmiller
Presidentno dataUS$533.89k2.72%
$ 15.8m
Theodore Pacha
VP & Independent Director30.75yrsUS$39.34k0.29%
$ 1.7m
Sheldon Yoder
Independent Director23.75yrsUS$35.09k0.25%
$ 1.4m
Ann Rhodes
Independent Director27.75yrsUS$35.46k0.0054%
$ 31.4k
Michael Hodge
Director20.75yrsUS$32.39k0.23%
$ 1.4m
John Phelan
Independent Director13.5yrsUS$32.73k0.14%
$ 830.7k
Michael Donovan
Independent Director13.5yrsUS$35.46k0.24%
$ 1.4m
Emily Hughes
Independent Director8.5yrsUS$37.00k2.55%
$ 14.8m
Thomas Wiele
Independent Director8.5yrsUS$37.78k0.023%
$ 135.4k
James Schmitt
Independent Director1.5yrsUS$144.89k0.0017%
$ 9.6k
Kirsten Frey
Independent Director1.5yrsUS$146.84kno data
Casey Peck
Independent Director1.5yrsUS$144.89kno 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

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 Analysis2020/10/25 23:36
End of Day Share Price2020/10/20 00:00
Earnings2020/06/30
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.