HILLS BANCORPORATION EXHIBIT II COMPUTATION OF EARNINGS PER COMMON SHARE Three months ended Nine months ended September 30 September 30 ---------------------- ---------------------- 2001 2000 2001 2000 ---------------------- ---------------------- Weighted average number of shares outstanding (basic) 1,498,053 1,495,941 1,496,438 1,495,941 Weighted average of potential dilutive shares attributable to stock options granted computed under the treasury stock method 12,674 12,726 12,248 12,775 ------------------------------------------------ Weighted average number of shares (diluted) 1,510,727 1,508,667 1,508,686 1,508,716 ================================================ Earnings Per Share: Net income (in thousands) $ 2,680 $ 2,336 $ 7,521 $ 6,939 ================================================ Earnings per common share: Basic $ 1.79 $ 1.56 $ 5.02 $ 4.63 Diluted $ 1.77 $ 1.55 $ 4.98 $ 4.60