<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE MARCH
31, 1998 FORM 10-Q OF HILLS BANCORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                          14,304
<INT-BEARING-DEPOSITS>                               0
<FED-FUNDS-SOLD>                                18,262
<TRADING-ASSETS>                                     0
<INVESTMENTS-HELD-FOR-SALE>                    111,258
<INVESTMENTS-CARRYING>                          23,542
<INVESTMENTS-MARKET>                            23,947
<LOANS>                                        439,049
<ALLOWANCE>                                      8,055
<TOTAL-ASSETS>                                 627,475
<DEPOSITS>                                     480,657
<SHORT-TERM>                                    21,917
<LIABILITIES-OTHER>                              4,757
<LONG-TERM>                                     60,764
<PREFERRED-MANDATORY>                            7,842
<PREFERRED>                                          0
<COMMON>                                         9,070
<OTHER-SE>                                      42,468
<TOTAL-LIABILITIES-AND-EQUITY>                 627,475
<INTEREST-LOAN>                                  9,175
<INTEREST-INVEST>                                2,015
<INTEREST-OTHER>                                   247
<INTEREST-TOTAL>                                11,437
<INTEREST-DEPOSIT>                               5,026
<INTEREST-EXPENSE>                               6,139
<INTEREST-INCOME-NET>                            5,298
<LOAN-LOSSES>                                      204
<SECURITIES-GAINS>                                   0
<EXPENSE-OTHER>                                  3,900
<INCOME-PRETAX>                                  2,610
<INCOME-PRE-EXTRAORDINARY>                       1,844
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,844
<EPS-PRIMARY>                                     1.26
<EPS-DILUTED>                                     1.24
<YIELD-ACTUAL>                                       0
<LOANS-NON>                                          0
<LOANS-PAST>                                     1,259
<LOANS-TROUBLED>                                     0
<LOANS-PROBLEM>                                      0
<ALLOWANCE-OPEN>                                 8,010
<CHARGE-OFFS>                                      159
<RECOVERIES>                                         0
<ALLOWANCE-CLOSE>                                8,055
<ALLOWANCE-DOMESTIC>                             8,055
<ALLOWANCE-FOREIGN>                                  0
<ALLOWANCE-UNALLOCATED>                              0