Hills Bancorporation reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved a net income of $12.17 million for the third quarter, a substantial increase of 68% compared to $7.24 million in the same period of 2023. For the nine months ended September 30, 2024, net income rose to $36.58 million, up 16.98% from $31.27 million in the prior year. Basic and diluted earnings per share for the third quarter were $1.35, compared to $0.79 in the previous year.
Total interest income for the third quarter increased to $51.84 million, up from $44.20 million in 2023. However, net interest income slightly decreased to $29.43 million from $28.30 million year-over-year. The net interest margin on a tax-equivalent basis for the nine months ended September 30, 2024, was 2.74%, down from 2.92% in 2023, primarily due to increased interest expenses from higher rates on deposits.
Total assets as of September 30, 2024, reached $4.44 billion, an increase of $95.82 million since December 31, 2023. Total deposits rose by $94.33 million to $3.38 billion, while net loans decreased slightly to $3.37 billion. The allowance for credit losses increased to $50.22 million, representing 1.47% of loans held for investment, compared to 1.44% at the end of 2023.
The company also reported a notable increase in noninterest income, which rose by 8.78% to $22.95 million, driven by higher trust fees and net gains on the sale of loans. Trust fees increased to $11.23 million, reflecting a 12.43% rise from the previous year, supported by an increase in assets under management from $2.42 billion to $2.96 billion.
In terms of strategic developments, Hills Bancorporation made a tax equity investment in a historic preservation project in Cedar Rapids, Iowa, in July 2024. The company also maintained a stock repurchase program, purchasing 86,671 shares at an average price of $69.08 during the third quarter.
Overall, the company demonstrated resilience amid economic challenges, with management expressing cautious optimism regarding its ability to navigate current risks while maintaining strong capital levels and prudent underwriting policies.
About HILLS BANCORPORATION
About 10-Q Filings
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