<ARTICLE> 9 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DECEMBER 31, 1996 FORM 10-K OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> DEC-31-1996 <CASH> 15,036 <INT-BEARING-DEPOSITS> 0 <FED-FUNDS-SOLD> 1,107 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 110,537 <INVESTMENTS-CARRYING> 22,098 <INVESTMENTS-MARKET> 22,232 <LOANS> 375,575 <ALLOWANCE> 7,311 <TOTAL-ASSETS> 539,452 <DEPOSITS> 450,061 <SHORT-TERM> 6,071 <LIABILITIES-OTHER> 10,190 <LONG-TERM> 25,795 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 8,997 <OTHER-SE> 38,338 <TOTAL-LIABILITIES-AND-EQUITY> 539,452 <INTEREST-LOAN> 29,724 <INTEREST-INVEST> 7,307 <INTEREST-OTHER> 485 <INTEREST-TOTAL> 37,516 <INTEREST-DEPOSIT> 17,762 <INTEREST-EXPENSE> 19,951 <INTEREST-INCOME-NET> 17,565 <LOAN-LOSSES> 754 <SECURITIES-GAINS> (57) <EXPENSE-OTHER> 12,057 <INCOME-PRETAX> 8,622 <INCOME-PRE-EXTRAORDINARY> 6,144 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,144 <EPS-PRIMARY> 4.15 <EPS-DILUTED> 4.15 <YIELD-ACTUAL> 3.86 <LOANS-NON> 339 <LOANS-PAST> 1,092 <LOANS-TROUBLED> 0 <LOANS-PROBLEM> 6,689 <ALLOWANCE-OPEN> 6,740 <CHARGE-OFFS> 971 <RECOVERIES> 438 <ALLOWANCE-CLOSE> 7,311 <ALLOWANCE-DOMESTIC> 7,311 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 1,085