Fri, May 9, 5:33 PM (3 days ago)
### Hills Bancorporation (HBCP) Q1 2025 Financial Summary **Company Overview:** - **Ticker:** HBCP - **Fiscal Year End:** December 31 - **Filing Date:** May 9, 2025 - **Quarter End:** March 31, 2025 **Financial Performance:** - **Revenue:** $55.20 million (up 13.3% YoY) - **Net Income:** $14.43 million (up 19.3% YoY) - **Earnings per Share (EPS):** $1.61 (up 21.1% YoY) - **Return on Assets (ROA):** 1.30% (up from 1.12% in Q1 2024) - **Return on Equity (ROE):** 11.91% (up from 10.48% in Q1 2024) **Balance Sheet Highlights:** - **Total Assets:** $4.56 billion (up 0.5% from Q4 2024) - **Total Liabilities:** $4.02 billion (up 0.6% from Q4 2024) - **Total Equity:** $544.1 million (up 0.8% from Q4 2024) **Key Ratios:** - **Net Interest Margin:** 3.25% (up from 2.68% in Q1 2024) - **Efficiency Ratio:** 49.2% (down from 50.1% in Q1 2024) - **Loan-to-Deposit Ratio:** 78.3% (up from 77.5% in Q1 2024) **Credit Quality:** - **Non-Performing Loans (NPLs):** $27.68 million (up 18.4% from Q4 2024) - **Allowance for Credit Losses (ACL):** $52.95 million (up 3.5% from Q4 2024) - **ACL Coverage Ratio:** 1.53% (up from 1.48% in Q4 2024) **Liquidity and Capital:** - **Liquidity Coverage Ratio (LCR):** 135% (up from 130% in Q1 2024) - **Common Equity Tier 1 (CET1) Ratio:** 12.61% (up from 12.60% in Q1 2024) - **Tier 1 Capital Ratio:** 12.61% (up from 12.60% in Q1 2024) **Operational Metrics:** - **Total Loans:** $3.42 billion (up 0.9% from Q4 2024) - **Total Deposits:** $3.48 billion (up 3.8% from Q4 2024) - **Net Interest Income:** $34.16 million (up 22.3% from Q1 2024) **Trends and Uncertainties:** - **Economic Environment:** Slight employment increases in the Midwest, modest price rises, and manufacturing sector facing heightened uncertainty. - **Credit Administration:** Close monitoring of higher-risk loan segments, tracking loan payment deferrals, and customer liquidity. - **Future Operations Impact:** Potential additional credit loss provisions due to fluid economic conditions and loan portfolio migration towards higher-risk categories. **Forward-Looking Statements:** - **Risks:** Economic conditions, regulatory changes, competition, technological changes, cybersecurity threats, and integration of acquired businesses. - **Opportunities:** Loan demand return, deposit growth, and strategic investments in technology and cybersecurity. **Management Discussion:** - **Loan Demand:** Starting to return in Q1 2025, with significant uncertainty due to inflationary pressures. - **Deposit Growth:** $132.21 million increase in deposits, primarily due to temporary public funds. - **Credit Quality:** Increased past due and nonaccrual loans, leading to higher credit loss provisions. - **Liquidity:** Sufficient liquidity resources to fund expected loan growth and meet commitments. **Conclusion:** Hills Bancorporation reported strong financial performance in Q1 2025, with notable increases in revenue, net income, and EPS. The company maintained robust credit quality and liquidity, despite challenges in the economic environment. Management remains cautious about future economic uncertainties but is optimistic about the company's strategic initiatives and market position.