<ARTICLE> 9 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE SEPTEMBER 30, 1998 FORM 10-Q FOR 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-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 14,251 <INT-BEARING-DEPOSITS> 0 <FED-FUNDS-SOLD> 19,796 <TRADING-ASSETS> 0 <INVESTMENTS-HELD-FOR-SALE> 120,610 <INVESTMENTS-CARRYING> 21,976 <INVESTMENTS-MARKET> 22,518 <LOANS> 455,500 <ALLOWANCE> 8,483 <TOTAL-ASSETS> 654,230 <DEPOSITS> 502,248 <SHORT-TERM> 20,326 <LIABILITIES-OTHER> 4,272 <LONG-TERM> 63,732 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 9,070 <OTHER-SE> 45,780 <TOTAL-LIABILITIES-AND-EQUITY> 654,230 <INTEREST-LOAN> 28,108 <INTEREST-INVEST> 6,083 <INTEREST-OTHER> 893 <INTEREST-TOTAL> 35,084 <INTEREST-DEPOSIT> 15,253 <INTEREST-EXPENSE> 18,787 <INTEREST-INCOME-NET> 16,297 <LOAN-LOSSES> 712 <SECURITIES-GAINS> 0 <EXPENSE-OTHER> 12,148 <INCOME-PRETAX> 7,633 <INCOME-PRE-EXTRAORDINARY> 5,396 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,396 <EPS-PRIMARY> 3.68 <EPS-DILUTED> 3.62 <YIELD-ACTUAL> 0 <LOANS-NON> 0 <LOANS-PAST> 1,825 <LOANS-TROUBLED> 0 <LOANS-PROBLEM> 7,996 <ALLOWANCE-OPEN> 8,010 <CHARGE-OFFS> 239 <RECOVERIES> 0 <ALLOWANCE-CLOSE> 8,483 <ALLOWANCE-DOMESTIC> 8,483 <ALLOWANCE-FOREIGN> 0 <ALLOWANCE-UNALLOCATED> 0