HILLS BANCORPORATION EXHIBIT II COMPUTATION OF EARNINGS PER COMMON SHARE Three Months Ended Nine Months Ended September 30 September 30 --------------------- --------------------- 2000 1999 2000 1999 --------- --------- --------- --------- 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