HILLS BANCORPORATION
EXHIBIT II
COMPUTATION OF EARNINGS PER COMMON SHARE
Three Months Ended Six Months Ended
June 30 June 30
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1998 1997 1998 1997
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Weighted average number of shares outstanding (basic) .... 1,467,754 1,467,259 1,467,754 1,467,259
Weighted average of potential dilutive shares attributable
to stock options granted computed under the treasury stock
method ................................................... 20,563 13,674 21,931 12,940
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Weighted average number of shares (diluted) .............. 1,488,317 1,480,933 1,489,685 1,480,199
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Earnings Per Share:
Net income (in thousands) ............................. $ 1,733 $ 1,935 $ 3,577 $ 3,546
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Earnings per common share:
Basic ............................................... $ 1.18 $ 1.32 $ 2.44 $ 2.42
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Diluted ............................................. 1.16 1.31 2.40 2.40
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