Executive Summary

Solid Q1 with earnings and core revenues higher year over year: Net income $14.43M and diluted EPS $1.61, up 19% and 21% YoY; net interest income rose to $34.16M, and noninterest income to $8.12M .
Deposits grew $132.2M in the quarter; funding mix shifted as HBIA retired all “other short‑term borrowings” and ramped FHLB advances to $509.9M, improving funding stability following year‑end BTFP/federal funds usage .
Credit costs normalized versus prior-year benefit: $3.87M credit loss expense vs a $(0.36)M benefit in Q1’24; nonaccrual loans and total past dues rose modestly, while the allowance increased to $52.95M .
No formal guidance or public earnings call found; S&P Global consensus estimates appear unavailable for HBIA this quarter, limiting beat/miss analysis.

What Went Well and What Went Wrong

What Went Well

Broad-based YoY earnings expansion: net interest income +$6.49M and noninterest income +$1.11M drove pre‑tax income to $17.77M (vs $15.23M), despite higher provisions .
Funding progress: Total deposits +$132.21M QoQ; shift from short-term market funds to FHLB advances reduced reliance on BTFP/fed funds purchased used at year‑end .
Management highlights stable one-segment model and consistent operating approach: “operations are managed, and financial performance is evaluated on a Company‑wide basis… [management] considers that it operates as one business segment” .

What Went Wrong

Provision normalization and asset quality pressure: credit loss expense swung to $3.87M from a $(0.36)M benefit in Q1’24; nonaccrual loans increased to $27.68M from $23.93M at 12/31/24, and total past‑due loans rose to $46.54M from $36.68M .
Higher operating costs YoY: noninterest expenses rose to $20.65M (from $19.81M), with outside services and salary/benefit lines up modestly .
No public earnings call, guidance, or Street coverage: absence of a transcript/guidance and limited consensus makes external expectations benchmarking and narrative color harder this quarter.

Financial Results

Income Statement (YoY)

Metric ($USD Millions, except per share)	Q1 2024	Q1 2025
Interest Income	$48.72	$55.20
Interest Expense	$21.05	$21.04
Net Interest Income	$27.67	$34.16
Credit Loss (Expense) Benefit	$(0.36)	$(3.87)
Noninterest Income	$7.01	$8.12
Noninterest Expense	$(19.81)	$(20.65)
Pre‑Tax Income	$15.23	$17.77
Net Income	$12.10	$14.43
Diluted EPS ($)	$1.33	$1.61

Notes: Banks typically present “net interest income + noninterest income” as total operating revenue; HBIA does not report a separate “revenue” line in filings, so the table shows components directly from the 10‑Q .

Balance Sheet (QoQ)

Metric ($USD Millions)	Dec 31, 2024	Mar 31, 2025
Total Assets	$4,588.24	$4,564.17
Cash & Equivalents	$123.40	$105.21
AFS Securities (FV)	$944.14	$906.11
Loans, net	$3,387.52	$3,415.20
Total Deposits	$3,346.13	$3,478.35
• Noninterest‑bearing	$581.04	$583.05
• Interest‑bearing	$2,765.09	$2,895.30
Other Short‑Term Borrowings	$546.64	$0.00
FHLB Borrowings	$127.05	$509.90
Stockholders’ Equity	$540.94	$544.08

Credit Quality & Reserves

Metric	Prior	Current
Allowance for Credit Losses (Loans) ($M)	$50.94 (Dec 31, 2024)	$52.95 (Mar 31, 2025)
Off‑Balance Sheet ACL ($M)	$2.90 (Dec 31, 2024)	$3.70 (Mar 31, 2025)
Nonaccrual Loans ($M)	$23.93 (Dec 31, 2024)	$27.68 (Mar 31, 2025)
Accruing 90+ Days Past Due ($M)	$0.87 (Dec 31, 2024)	$0.00 (Mar 31, 2025)
Total Past Due (30+ DPD) ($M)	$36.68 (Dec 31, 2024)	$46.54 (Mar 31, 2025)

Trend Reference (last reported quarter available)

Metric	Q3 2024
Net Income ($M)	$12.17
Diluted EPS ($)	$1.35

Segment breakdown: Management operates the bank as one business segment; no segment reporting applies .

KPIs: See credit quality figures above; company does not disclose quarterly NIM/efficiency in the 10‑Q, and we avoid deriving non‑reported ratios.

Guidance Changes

No formal guidance was found in the company’s Q1 2025 10‑Q or accompanying SEC filings; no earnings call transcript available. Accordingly, there are no revenue, margin, OpEx, OI&E, tax, or dividend guidance changes to report this quarter .

Earnings Call Themes & Trends

No public Q1 2025 earnings call transcript found. The table below references management commentary drawn from filings for thematic continuity.

Topic	Previous Mentions (Q3 2024 / FY 2024)	Current Period (Q1 2025)	Trend
Deposits & Liquidity	Uninsured deposits ~21.5% at 12/31/24; described multiple funding lines (FHLB, BTFP, Fed window) and contingency liquidity plan .	Deposit growth +$132M QoQ; shift from BTFP/fed funds to FHLB advances ($509.9M) .	Improving funding stability; reduced reliance on short‑term market funds.
Securities AFS	Unrealized loss position at 12/31/24; portfolio repositioned in Dec’24 with realized loss to uplift yield .	AFS fair value $906.1M at 3/31/25; gross unrealized losses modestly lower vs YE .	Slight improvement with carry yield uplift.
Credit Quality	Credit costs lowered in FY’24 vs FY’23; collateral‑dependent loans 1.12% at 9/30/24 .	Nonaccruals and past dues up QoQ; ACL increased; collateral‑dependent loans 1.05% of loans at 3/31/25 .	Mixed: normalization in provision, vigilant posture.
Operating Model	One segment; community banking focus reiterated in filings .	Continues to report as one business segment .	Stable.

Management Commentary

On reportable segments: “Operations are managed, and financial performance is evaluated on a Company‑wide basis… management considers that it operates as one business segment, a commercial bank.”
On nonaccruals this quarter: “There was no interest income recognized on nonaccrual loans for the three months ended March 31, 2025…”
On collateral‑dependent credits: “Collateral‑dependent loans were 1.05% of loans held for investment as of March 31, 2025…”

Q&A Highlights

No public Q1 2025 conference call transcript available; no Q&A themes or clarifications to report.

Estimates Context

S&P Global consensus appears unavailable for HBIA this quarter (no EPS or revenue consensus/estimate counts returned). As a result, we cannot assess beat/miss versus Wall Street for EPS or revenue.
Actual Q1 2025 revenue components and EPS are shown from company filings in the Financial Results section above .

Key Takeaways for Investors

Earnings momentum: Net interest and fee income growth supported 21% YoY EPS expansion despite a normalizing provision; Q1 delivered broad-based YoY improvements .
Funding repositioning: HBIA added $132M in deposits and replaced short‑term market funds with termable FHLB advances, a constructive step for stability and liquidity optics .
Credit vigilance: Nonaccruals and past dues increased QoQ; ACL rose accordingly—expect continued conservative reserve posture amid mixed macro and real‑estate dynamics .
Securities portfolio: After the Dec’24 repositioning, AFS unrealized losses improved slightly in Q1; carry income should benefit from higher yields purchased late last year .
Limited external signaling: No guidance or conference call color, and limited Street coverage may keep shares more tethered to reported fundamentals and local credit trends.
Near‑term focus: Track deposit mix/costs, reliance on FHLB vs other short‑term facilities, and leading indicators in CRE/multifamily and 1‑4 family as nonaccruals/past‑dues migrate .

Citations

Q1 2025 Form 10‑Q: income statement, balance sheet, credit quality, segment disclosure, MD&A and notes .
Q3 2024 Form 10‑Q: quarterly trend reference .
FY 2024 Form 10‑K: liquidity and funding framework; late‑2024 securities repositioning context .
Q1 2025 8‑K Item 2.02 references unaudited Quarterly Financial Report (Ex. 99.1) .

HILLS BANCORPORATION (HBIA)·Q1 2025 Earnings Summary