<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1996 10-Q OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                          12,968
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                 3,762
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                    111,853
<INVESTMENTS-CARRYING>                          21,914
<INVESTMENTS-MARKET>                            21,985
<LOANS>                                        368,214
<ALLOWANCE>                                      7,286
<TOTAL-ASSETS>                                 536,827
<DEPOSITS>                                     448,133
<SHORT-TERM>                                     7,972
<LIABILITIES-OTHER>                              9,858
<LONG-TERM>                                     25,795
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         8,925
<OTHER-SE>                                       36144
<TOTAL-LIABILITIES-AND-EQUITY>                 536,827
<INTEREST-LOAN>                                 21,740
<INTEREST-INVEST>                                5,351
<INTEREST-OTHER>                                   380
<INTEREST-TOTAL>                                27,471
<INTEREST-DEPOSIT>                              13,053
<INTEREST-EXPENSE>                              14,718
<INTEREST-INCOME-NET>                           12,753
<LOAN-LOSSES>                                      547
<SECURITIES-GAINS>                                   0
<EXPENSE-OTHER>                                  8,671
<INCOME-PRETAX>                                  6,397
<INCOME-PRE-EXTRAORDINARY>                       4,561
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     4,561
<EPS-PRIMARY>                                     3.09
<EPS-DILUTED>                                     3.09
<YIELD-ACTUAL>                                       0
<LOANS-NON>                                        339
<LOANS-PAST>                                     1,079
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                  5,970
<ALLOWANCE-OPEN>                                 6,740
<CHARGE-OFFS>                                      351
<RECOVERIES>                                         0
<ALLOWANCE-CLOSE>                                7,286
<ALLOWANCE-DOMESTIC>                             7,286
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0