HILLS BANCORPORATION EXHIBIT II COMPUTATION OF EARNINGS PER COMMON SHARE Three Months Ended Six Months Ended June 30 June 30 ---------------------- ---------------------- 1997 1996 1997 1996 --------- --------- --------- --------- Shares of common stock, beginning ............... 1,465,204 1,463,604 1,465,384 1,463,604 Options exercised during this period ... 2,055 - - - 2,055 - - - Shares redeemed during this period ..... - - - - - - (180) - - - --------- ---------- ---------- ---------- Shares of common stock, ending .................. 1,467,259 1,463,604 1,467,259 1,463,604 ========== ========== ========== ========== Weighted average number of shares outstanding # . 1,480,933 1,474,643 1,480,199 1,476,216 ========== ========== ========== ========== Earnings and Earnings Per Share: Net income (in thousands) .............. $ 1,935 $ 1,555 $ 3,546 $ 2,981 ========== ========== ========== ========== Earnings per common share .............. $ 1.31 $ 1.05 $ 2.40 $ 2.02 ========== ========== ========== ==========