Hills Bancorp (NASDAQ: HBIA) is a community banking company that operates through its subsidiary bank to originate loans and gather deposits within its local trade area. It earns money primarily through net interest income, the spread between interest earned on loans and investment securities and interest paid on deposits and borrowings. The loan portfolio as of December 31, 2025 included commercial real estate loans ($565.18 million, 15.85% of total loans), multi-family real estate loans ($494.28 million, 13.87%), farmland mortgages ($276.79 million, 7.76%), agricultural loans ($118.92 million, 3.34%), and 1-to-4 family residential mortgages, construction loans, commercial and financial loans, and loans to individuals. The bank funds itself through a deposit base that was approximately 21.79% uninsured as of December 31, 2025, supplemented by Federal Home Loan Bank borrowings and other short-term facilities. Management describes the institution as community-focused, with growth tied to local management relationships.

Revenue model

Net interest income from a diversified loan portfolio and investment securities, funded by customer deposits and FHLB borrowings. Fee income from traditional banking transactions also contributes.

Products and services

Commercial real estate loans, multi-family real estate loans, farmland mortgage loans, agricultural loans, 1-to-4 family residential mortgage loans (first and junior liens), construction loans, commercial and financial loans, loans to individuals, obligations of state and political subdivisions, interest-bearing and noninterest-bearing deposit accounts, investment securities.

Customers and end markets

Small and mid-sized businesses, farmers and agricultural operators, individual residential borrowers, commercial real estate investors, and local government entities within the bank's trade area. As of December 31, 2025, small- and mid-sized businesses represented a material share of the uninsured deposit base.

Value-chain role

Direct lender and deposit gatherer. Originates, underwrites, and holds loans on balance sheet. Manages credit, liquidity, market, and operational risks through an enterprise risk management program.

Geographic exposure

Operates within a defined local trade area; the filing does not specify named states or cities.

Source: SEC 10-K, filed 2026-03-18

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