Hills Bancorporation Files 2023 Annual Report on Form 10-K

TL;DR

<b>Hills Bancorporation has submitted its 2023 annual report (10-K) detailing financial performance and operations for the year ending December 31, 2023.</b>

AI Summary

HILLS BANCORPORATION (HBIA) filed a Annual Report (10-K) with the SEC on March 5, 2024. Hills Bancorporation filed its 2023 Form 10-K on March 5, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Iowa and operates in the Commercial Banks sector. Key financial data points for 2023, 2022, and 2021 are included. The report details various balance sheet items and equity components.

Why It Matters

For investors and stakeholders tracking HILLS BANCORPORATION, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Hills Bancorporation's financial health and operational activities for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial statements and disclosures within the 10-K allow stakeholders to understand the company's asset base, liabilities, equity, and revenue streams, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — HILLS BANCORPORATION shows moderate risk based on this filing. The filing is a standard 10-K for a publicly traded bank, indicating a routine disclosure of financial information. However, the absence of specific financial performance metrics in the provided snippet necessitates a medium risk assessment as a full analysis requires deeper review of the actual financial statements.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand Hills Bancorporation's performance and potential risks.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240305 — Filing Date (FILED AS OF DATE)
• 6022 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• HILLS BANCORPORATION (company) — COMPANY CONFORMED NAME
• 0000732417 (company) — CENTRAL INDEX KEY
• IA (company) — STATE OF INCORPORATION
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240305 (date) — FILED AS OF DATE
• 3196792291 (phone) — BUSINESS PHONE

FAQ

Industry Context

Hills Bancorporation operates within the Commercial Banks sector (SIC 6022). This sector is characterized by providing financial services such as accepting deposits, making loans, and offering other financial products.

Regulatory Implications

As a commercial bank, Hills Bancorporation is subject to regulations from various financial authorities, including those governing deposit-taking, lending practices, and capital requirements.

What Investors Should Do

1. Analyze the detailed financial statements for revenue, net income, and asset growth.
2. Examine the balance sheet for changes in loans, deposits, and equity.
3. Review the risk factors section for potential challenges and mitigation strategies.

Key Dates

• 2023-12-31: Fiscal Year End — Covers the period reported in the 10-K.
• 2024-03-05: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing. Comparative data from previous filings would be needed for a direct comparison.

Key Financial Figures

• $68.00 — based on the most recent sale price of $68.00 per share, and 7,670,102 shares held wa
• $2.929 billion — state Loans Real estate loans totaled $2.929 billion and comprised 85.18% of the Bank's loan
• $2.535 billion — cember 31, 2023, mortgage loans totaled $2.535 billion and comprised 73.72% of the Bank's loan
• $1.366 billion — Residential real estate loans totaled $1.366 billion and were 39.72% of the Bank's loan port
• $416.67 million — Commercial real estate loans totaled $416.67 million and were 12.12% of the Bank's loan port
• $471.01 million — Multi-family real estate loans totaled $471.01 million and were 13.70% of the Bank's loan port
• $281.16 million — tgage loans secured by farmland totaled $281.16 million and were 8.18% of the Bank's loan portf
• $80.25 million — n loans for personal residences totaled $80.25 million and were 2.33% of the Bank's loan portf
• $313.88 million — lopment and commercial projects totaled $313.88 million and were 9.13% of the Bank's loan portf
• $394.13 million — o. In total, construction loans totaled $394.13 million and were 11.46% of the Bank's loan port
• $307.19 million — al and financial loan portfolio totaled $307.19 million and comprised 8.93% of the total loan p
• $115.79 million — farming operations. These loans totaled $115.79 million and constituted 3.37% of the total loan
• $40.21 million — cember 31, 2023, consumer loans totaled $40.21 million and were 1.17% of the Bank's total loan
• $46.45 million — y tax-exempt loans. These loans totaled $46.45 million and comprised 1.35% of the Bank's total

Filing Documents

• hbia-20231231.htm (10-K) — 5304KB
• ex3120231231restatedarticl.htm (EX-3.1) — 58KB
• ex3220231231amendedandrest.htm (EX-3.2) — 78KB
• ex2112312023.htm (EX-21) — 3KB
• ex23_112312023.htm (EX-23.1) — 4KB
• ex31_112312023.htm (EX-31.1) — 10KB
• ex31_212312023.htm (EX-31.2) — 10KB
• ex3212312023.htm (EX-32) — 9KB
• hbia-20231231_g1.jpg (GRAPHIC) — 132KB
• 0000732417-24-000009.txt (&nbsp;) — 24791KB
• hbia-20231231.xsd (EX-101.SCH) — 104KB
• hbia-20231231_cal.xml (EX-101.CAL) — 152KB
• hbia-20231231_def.xml (EX-101.DEF) — 537KB
• hbia-20231231_lab.xml (EX-101.LAB) — 1178KB
• hbia-20231231_pre.xml (EX-101.PRE) — 826KB
• hbia-20231231_htm.xml (XML) — 6088KB

Business

Item 1. Business Page 3 General Page 3 Market Area Page 7 Competition Page 7 Supervision and Regulation Page 8

Risk Factors

Item 1A. Risk Factors Page 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments Page 24

Cybersecurity

Item 1C. Cybersecurity Page 24

Properties

Item 2. Properties Page 25

Legal Proceedings

Item 3. Legal Proceedings Page 26

Mine Safety Disclosures

Item 4. Mine Safety Disclosures Page 26 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Page 26

[Reserved]

Item 6. [Reserved] Page 28

Management's Discussion and Analysis of Financial Condition and Results of Operation

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation Page 29

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk Page 52

Consolidated Financial Statements and Supplementary Data

Item 8. Consolidated Financial Statements and Supplementary Data Page 54

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure Page 120

Controls and Procedures

Item 9A. Controls and Procedures Page 120

Other Information

Item 9B. Other Information Page 121 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance Page 121

Executive Compensation

Item 11. Executive Compensation Page 122

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Page 122

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence Page 122

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services Page 122 PART IV

Exhibits, Consolidated Financial Statement Schedules

Item 15. Exhibits, Consolidated Financial Statement Schedules Page 123 Page 2 Table of Contents PART I References in this report to "we," "us," "our," "Bank," or the "Company" or similar terms refer to Hills Bancorporation and its subsidiary.

Business

Item 1. Business GENERAL Hills Bancorporation (the "Company") is a holding company principally engaged, through its subsidiary bank, in the business of banking. The Company was incorporated December 12, 1982 and all operations are conducted within the state of Iowa. The Company became owner of 100% of the outstanding stock of Hills Bank and Trust Company, Hills, Iowa ("Hills Bank and Trust" or the "Bank") as of January 23, 1984 when stockholders of Hills Bank and Trust exchanged their shares for shares of the Company. Effective July 1, 1996, the Company formed a new subsidiary, Hills Bank, which acquired for cash all the outstanding shares of a bank in Lisbon, Iowa. Subsequently an office of Hills Bank was opened in Mount Vernon, Iowa, a community that is contiguous to Lisbon. Effective November 17, 2000, Hills Bank was merged into the Bank. On September 20, 1996, another subsidiary, Hills Bank Kalona, acquired cash and other assets and assumed the deposits of the Kalona, Iowa office of Boatmen's Bank Iowa, N.A. Effective October 26, 2001, Hills Bank Kalona was merged into the Bank. Through its internet website (www.hillsbank.com), the Company makes available the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, all amendments to those reports, and other filings with the Securities and Exchange Commission, as soon as reasonably practicable after they are filed or furnished. The Bank is a full-service commercial bank extending its services to individuals, businesses, governmental units and institutional customers. The Bank is actively engaged in all areas of commercial banking, including acceptance of demand, savings and time deposits; making commercial, real estate, agricultural and consumer loans; maintaining night and safe deposit facilities; and performing collection, exchange and other banking services tailored for individual customers. The Bank administers estates, personal trusts, and pension plans and provides fa

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View this 10-K filing on SEC EDGAR