HILLS BANCORPORATION
EXHIBIT II
COMPUTATION OF EARNINGS PER COMMON SHARE
<TABLE>
Three Months Ended Nine Months Ended
September 30 September 30
--------------------- ---------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Weighted average number of shares
outstanding (basic) ................................ 1,495,941 1,493,867 1,495,941 1,492,905
Weighted average of potential dilutive shares
attributable to stock options granted
computed under the treasury stock method ........... 12,726 12,011 12,775 12,154
--------- --------- --------- ---------
Weighted average number of shares (diluted) .......... 1,508,667 1,505,878 1,508,716 1,505,059
========= ========= ========= =========
Earnings per share:
Net income (in thousands) .......................... $ 2,336 $ 2,118 $ 6,939 $ 6,278
========= ========= ========= =========
Earnings per common share:
Basic ............................................ $ 1.56 $ 1.41 $ 4.63 $ 4.20
Diluted .......................................... 1.55 1.40 4.60 4.17
</TABLE>
