Hills Bancorporation (HBIA) 10-K 2007 FY Annual report

EXHIBIT 11

HILLS BANCORPORATION

STATEMENT RE COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE

	Year Ended December 31,
	2007			2006			2005
Shares of common stock, beginning		4,503,738			4,562,237			4,549,656
Shares of common stock, ending		4,490,107			4,503,738			4,562,237
Computation of weighted average number of basic and
diluted shares:
Common shares outstanding at the beginning of the year		4,503,738			4,562,237			4,549,656
Weighted average number of net shares issued       (redeemed)		(4,158	)		(6,215	)		4,165
Weighted average shares outstanding (basic)		4,499,580			4,556,022			4,553,821
Weighted average of potential dilutive shares
attributable to stock options granted, computed under
the treasury stock method		19,495			25,581			22,354
Weighted average number of shares (diluted)		4,519,075			4,581,603			4,576,175
Net income (In Thousands)	$	16,143		$	15,559		$	15,202
Earnings per share:
Basic	$	3.59		$	3.42		$	3.34
Diluted	$	3.57		$	3.39		$	3.32
Dividends per common share	$	0.86		$	0.81		$	0.75

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