HILLS BANCORPORATION EXHIBIT II COMPUTATION OF EARNINGS PER COMMON SHARE Three months ended March 31 --------------------- 2002 2001 --------------------- Weighted average number of shares outstanding (basic) .......................................... 1,498,558 1,495,483 Weighted average of potential dilutive shares attributable to stock options granted computed under the treasury stock method .................. 12,879 13,250 --------------------- Weighted average number of shares (diluted) ........ 1,511,437 1,508,733 ===================== Earnings Per Share: Net income (in thousands) ....................... $ 2,623 $ 2,307 ===================== Earnings per common share: Basic ............................................ $ 1.75 $ 1.54 Diluted .......................................... 1.74 1.53 1