Item 5. Market for Registrant’s Common Equity
Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
As of January 31, 2021, the Company had 2,701 stockholders. There is no established trading market for the Company's common stock, and the Company's stock is not actively traded. Our common stock is not listed on the NASDAQ stock market or any other stock exchange. While there is no established public trading market for our common stock, our shares are currently quoted in the inter-dealer quotation, or “over-the-counter,” marketplace under the trading symbol “HBIA.” The principal over-the-counter market is operated by OTC Markets Group, Inc., which provides quotes for the Company on its OTC Pink tier.
The high and low bid information for the Company’s stock for each quarter of the two most recent fiscal years, as reported by OTC Market Groups, Inc., is provided below. The prices indicated reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.
2020 2019
High Low High Low
1st quarter $ 65.00 $ 61.06 $ 65.00 $ 60.60
2nd quarter 65.00 58.65 65.85 62.01
3rd quarter 62.04 58.35 66.00 63.80
4th quarter 62.04 60.07 71.00 65.00
In addition, based on the Company’s stock transfer records and information informally provided to the Company, stock trading transactions have been as follows:
Year Number of Shares Traded Number of Transactions High Selling Price Low Selling Price
2020 173,598 188 $ 66.00 $ 60.00 (1)
2019 126,189 146 $ 65.00 $ 61.00 (2)
2018 157,749 168 $ 61.00 $ 54.00 (3)
(1) 2020 transactions included repurchases by the Company of 133,622 shares of stock under the 2005 Stock Repurchase Program. 2020 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $60.00 to $66.00 per share.
(2) 2019 transactions included repurchases by the Company of 89,124 shares of stock under the 2005 Stock Repurchase Program. 2019 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $61.00 to $65.00 per share.
(3) 2018 transactions included repurchases by the Company of 116,962 shares of stock under the 2005 Stock Repurchase Program. 2018 transactions made under the 2005 Stock Repurchase Program were made at prices that ranged from $54.00 to $61.00 per share.
All transactions under the 2005 Stock Repurchase Program were at a price equal to the most recent quarterly independent appraisal of the shares of the Company's common stock. The most recent independent current quarterly appraisal value of the stock is $63.50 a share. The closing bid for the Company's stock on February 12, 2021 was $62.25 a share as reported by the OTC Markets Group, Inc.
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The Company currently pays an annual dividend on its common stock to stockholders, and it expects to continue to maintain its annual dividend for the foreseeable future periods.
The following performance graph provides information regarding cumulative, five-year shareholder returns on an indexed basis of the Company's Common Stock compared to the NASDAQ Market Index and the Regional-Southwest Banks Index prepared by MORNINGSTAR of Chicago, IL. The latter index reflects the performance of twenty-five bank holding companies operating principally in the Midwest as selected by MORNINGSTAR. The indexes assume the investment of $100 on December 31, 2015 in Company Common Stock, the NASDAQ Index and the Regional-Southwest Banks Index, with all dividends reinvested.
2015 2016 2017 2018 2019 2020
HILLS BANCORPORATION $ 100.00 $ 109.44 $ 124.92 $ 143.07 $ 154.50 $ 150.59
REGIONAL-SOUTHWEST BANKS $ 100.00 $ 151.34 $ 159.57 $ 145.45 $ 177.19 $ 167.83
NASDAQ MARKET INDEX $ 100.00 $ 108.87 $ 141.13 $ 137.12 $ 187.44 $ 271.64
Note regarding the performance graph: Cumulative five-year Shareholder returns on an indexed basis. The indexes assume the investment of $100 in year with all dividends reinvested.
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The following table sets forth the Company’s equity compensation plan information as of December 31, 2020, all of which relates to stock options issued under stock option plans approved by stockholders of the Company:
Plan Category Number of securities to
be issued upon exercise of
outstanding options,
warrants and rights (a) Weighted-average
exercise price of
outstanding options,
warrants and rights (b) Number of securities
remaining available for
future issuance under equity
compensation plans
[excluding securities reflected
in column (a)] (c)
Equity compensation plans approved by security holders 13,025 $ 45.92 231,425
Equity compensation plans not approved by security holders — — —
Total 13,025 $ 45.92 231,425
On July 26, 2005, the Company’s Board of Directors authorized a program to repurchase up to a total of 1,500,000 shares of the Company’s common stock (the “2005 Stock Repurchase Program”). The Company’s Board of Directors has authorized the 2005 Stock Repurchase Program through December 31, 2021. The Company expects the purchases pursuant to the 2005 Stock Repurchase Program to be made from time to time in private transactions at a price equal to the most recent quarterly independent appraisal of the shares of the Company’s common stock and with the Board reviewing the overall results of the 2005 Stock Repurchase Program on a quarterly basis. All purchases made pursuant to the 2005 Stock Repurchase Program since its inception have been made on that basis. The amount and timing of stock repurchases will be based on various factors, such as the Board’s assessment of the Company’s capital structure and liquidity, the amount of interest shown by shareholders in selling shares of stock to the Company at their appraised value, and applicable regulatory, legal and accounting factors.
The following table sets forth information about the Company’s stock purchases pursuant to the 2005 Stock Repurchase Program for the quarter ended December 31, 2020:
Period in 2020 Total number of
shares purchased Average price paid
per share Total number of
shares purchased
as part of publicly
announced plans
or programs Maximum number
of shares that may
yet be purchased
under the plans or
programs
October 1 to October 31 5,973 $ 62.00 5,973 165,617
November 1 to November 30 9,514 62.18 9,514 156,103
December 1 to December 31 5,728 62.50 5,728 150,375
Total 21,215 $ 62.21 21,215 150,375
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Item 6. Selected Financial Data
CONSOLIDATED FIVE-YEAR STATISTICAL SUMMARY
The following table sets forth certain of our financial and statistical information for each of the years in the five-year period ended December 31, 2020. This data should be read in conjunction with the consolidated financial statements and the accompanying notes thereto included or incorporated by reference elsewhere in this document.
2020 2019 2018 2017 2016
YEAR-END TOTALS (Amounts in Thousands)
Total assets $ 3,780,611 $ 3,300,887 $ 3,042,464 $ 2,963,360 $ 2,655,770
Investment securities 416,544 366,368 331,098 300,160 279,950
Loans held for sale 43,947 8,400 1,984 5,162 9,806
Loans, net 2,674,012 2,606,277 2,591,085 2,431,165 2,251,445
Deposits 3,192,568 2,661,364 2,421,124 2,288,565 2,036,312
Federal Home Loan Bank borrowings 105,000 185,000 215,000 295,000 235,000
Redeemable common stock 47,329 51,826 48,870 43,308 40,781
Stockholders' equity 416,076 375,211 334,882 311,716 289,270
EARNINGS (Amounts in Thousands)
Interest income $ 128,529 $ 132,332 $ 118,797 $ 105,952 $ 97,677
Interest expense 26,952 34,873 26,323 17,972 16,087
Provision for loan losses 4,358 (2,880) 8,497 1,688 (1,163)
Other income 28,336 24,792 23,818 20,818 19,995
Other expenses 75,631 67,264 62,123 59,512 56,799
Income taxes 11,277 12,549 8,905 19,537 14,394
Net income 38,647 45,318 36,767 28,061 31,555
Net income before Tax Act (1) NA NA NA 32,770 NA
PER SHARE
Net income:
Basic $ 4.12 $ 4.85 $ 3.93 $ 3.01 $ 3.40
Basic before Tax Act (1) NA NA NA 3.51 NA
Diluted 4.12 4.85 3.92 3.01 3.40
Diluted before Tax Act (1) NA NA NA 3.51 NA
Cash dividends 0.890 0.820 0.750 0.700 0.650
Book value as of December 31 44.59 40.12 35.87 33.39 31.22
Increase (decrease) in book value due to:
ESOP obligation (5.07) (5.54) (5.23) (4.64) (4.40)
Accumulated other comprehensive income 0.94 0.15 (0.35) (0.26) (0.36)
SELECTED RATIOS
Return on average assets 1.09 % 1.40 % 1.23 % 1.02 % 1.23 %
Return on average assets before Tax Act (1) NA NA NA 1.19 NA
Return on average equity 8.72 11.23 9.92 9.24 11.26
Return on average equity before Tax Act (1) NA NA NA 10.79 NA
Net interest margin 3.00 3.18 3.25 3.43 3.43
Average stockholders' equity to average total assets 12.47 12.45 12.35 11.02 10.94
Dividend payout ratio 21.54 16.90 19.05 23.11 19.20
(1) Non-GAAP financial measurement. For further information, refer to the Non-GAAP Financial Measures section of this report in Item 7.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.