Hills Bancorporation Files Q3 2024 10-Q

Ticker: HBIA · Form: 10-Q · Filed: Nov 8, 2024 · CIK: 732417

Sentiment: neutral

Topics: 10-Q, financials, banking

TL;DR

Hills Bancorporation's Q3 2024 10-Q is in. Check financials.

AI Summary

Hills Bancorporation filed its 10-Q for the period ending September 30, 2024. The filing covers financial performance and operational details for the third quarter and the year-to-date period. Key financial data and disclosures relevant to investors and regulators are presented.

Why It Matters

This filing provides crucial financial insights into Hills Bancorporation's performance, impacting investor decisions and regulatory oversight.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing with no immediate red flags or significant new risks indicated.

Key Players & Entities

FAQ

What is the reporting period for this 10-Q filing?

The Conformed Period of Report is 20240930, meaning the filing covers the period ending September 30, 2024.

When was this 10-Q filed with the SEC?

This 10-Q was filed on 20241108.

What is the primary business of Hills Bancorporation?

Hills Bancorporation is classified under State Commercial Banks [6022].

What is the state of incorporation for Hills Bancorporation?

The state of incorporation for Hills Bancorporation is IA (Iowa).

What are some of the financial statement line items mentioned in the filing data?

The filing data mentions items such as us-gaap:FiduciaryAndTrustMember, us-gaap:DepositAccountMember, us-gaap:AdditionalPaidInCapitalMember, and us-gaap:RetainedEarningsMember.

Filing Stats: 4,795 words · 19 min read · ~16 pages · Grade level 19.7 · Accepted 2024-11-08 11:25:19

Filing Documents

Financial Statements

Item 1. Financial Statements Consolidated balance sheets, September 30, 2024 (unaudited) and December 31, 2023 4 Consolidated statements of income (unaudited) for three and nine months ended September 30, 2024 and 2023 5 Consolidated statements of comprehensive income (loss) (unaudited) for three and nine months ended September 30, 2024 and 2023 6 Consolidated statements of stockholders' equity (unaudited) for three and nine months ended September 30, 2024 and 2023 7 Consolidated statements of cash flows (unaudited) for nine months ended September 30, 2024 and 2023 9

Notes to consolidated financial statements (condensed)

Notes to consolidated financial statements (condensed) 11

Management Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations 52

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 67

Controls and Procedures

Item 4. Controls and Procedures 68 Part II OTHER INFORMATION

Legal proceedings

Item 1. Legal proceedings 68

Risk factors

Item 1A. Risk factors 68

Unregistered sales of equity securities and use of proceeds

Item 2. Unregistered sales of equity securities and use of proceeds 69

Defaults upon senior securities

Item 3. Defaults upon senior securities 70

Mine safety disclosures

Item 4. Mine safety disclosures 70

Other information

Item 5. Other information 70

Exhibits

Item 6. Exhibits 71

Signatures

Signatures 72 Page 3 Index HILLS BANCORPORATION CONSOLIDATED BALANCE SHEETS (Amounts In Thousands, Except Share Amounts) September 30, 2024 December 31, 2023 ASSETS (Unaudited) Cash and cash equivalents $ 54,284 $ 59,482 Investment securities available for sale at fair value (amortized cost September 30, 2024 $ 912,885 ; December 31, 2023 $ 814,839 ) 889,534 779,421 Stock of Federal Home Loan Bank 14,271 15,746 Loans held for sale 7,763 2,023 Loans, net of allowance for credit losses September 30, 2024 $ 50,220 ; December 31, 2023 $ 49,410 3,371,345 3,389,372 Property and equipment, net 35,514 34,230 Tax credit real estate investments 9,260 7,910 Accrued interest receivable 22,533 19,786 Deferred income taxes, net 18,684 21,271 Goodwill 2,500 2,500 Other assets 11,795 9,926 Total Assets $ 4,437,483 $ 4,341,667 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Noninterest-bearing deposits $ 556,016 $ 600,398 Interest-bearing deposits 2,821,092 2,682,382 Total deposits $ 3,377,108 $ 3,282,780 Other short-term borrowings, including Bank Term Funding Program and federal funds purchased 322,670 219,000 Federal Home Loan Bank borrowings 155,400 296,648 Accrued interest payable 12,749 6,102 Allowance for credit losses on off-balance sheet credit exposures 4,360 5,110 Other liabilities 24,334 16,888 Total Liabilities $ 3,896,621 $ 3,826,528 Redeemable Common Stock Held by Employee Stock Ownership Plan (ESOP) $ 46,705 $ 44,853 STOCKHOLDERS' EQUITY Common stock, no par value; authorized 20,000,000 shares; issued September 30, 2024 10,348,262 shares; December 31, 2023 10,345,832 shares $ — $ — Paid in capital 64,708 63,827 Retained earnings 567,860 541,329 Accumulated other comprehensive loss ( 17,952 ) ( 27,176 ) Treasury stock at cost (September 30, 2024 1,365,398 shares; December 31, 2023 1,210,112 shares) ( 73,754 ) ( 62,841 ) Total Stockholders' Equity $ 540,862 $ 515,139 Less maximum cash obligation related to ESOP shares

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Summary of Significant Accounting Policies Basis of Presentation: The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial reporting and with instructions for Form 10-Q and Regulation S-X. These financial statements include all adjustments (consisting of normal recurring accruals) which in the opinion of management are considered necessary for the fair presentation of the financial position and results of operations for the periods shown. The Company considers that it operates as one business segment, a commercial bank. Operating results for the nine month period ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. For further information, refer to the consolidated financial statements and footnotes thereto included in the Form 10-K Annual Report of Hills Bancorporation and subsidiary (the "Company") for the year ended December 31, 2023 filed with the Securities Exchange Commission on March 5, 2024. The consolidated balance sheet as of December 31, 2023, has been derived from the audited consolidated financial statements for that period. The Company evaluated subsequent events through the filing date of its quarterly report on Form 10-Q with the SEC. Accounting Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain Signific

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, fees for trust services and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month, which is generally the time that payment is received. A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity's obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. As of September 30, 2024 and December 31, 2023, the Company did not have any significant contract balances. An entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company has not incurred or capitalized any contract acquisition costs as of September 30, 2024 and December 31, 2023. Tax credit real estate : Tax credit real estate represents three multi-family rental properties, three assisted living rental properties, a multi-tenant rental property for persons with disabilities, and a multi-family senior living rental property, all of which are affordable housing projects as of September

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (Unaudited) Available-for-sale debt securities and the allowance for credit losses on available-for-sale debt securities : Available-for-sale ("AFS") securities consist of debt securities not classified as trading or held to maturity. Available-for-sale securities are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, are reported as a separate component of stockholders' equity. There were no trading or held to maturity securities as of September 30, 2024 or 2023. Fair value measurement is based upon quoted market prices in active markets, if available. If quoted prices in active markets are not available, fair value is measured using pricing models or other model-based valuation techniques such as present value of future cash flows, which consider prepayment assumptions and other factors such as credit losses and market liquidity. Unrealized gains and losses are excluded from earnings and reported, net of tax, in other comprehensive income ("OCI"). Premiums on debt securities are amortized to the earliest call date and discounts on debt securities are accreted over the period to maturity of those securities. The method of amortization results in a constant effective yield on those securities (the interest method). Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For AFS debt securities, a decline in fair value due to credit loss results in recording an allowance for credit losses to the extent the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income, net of ap

View Full Filing

View this 10-Q filing on SEC EDGAR

View on Read The Filing