Hills Bancorporation Changes Auditor Amidst Ongoing Material Weaknesses in Internal Controls
HBIA sits 31% above its 52-week low of $64.02 on light trading volume (0.1× avg).
Summary
Hills Bancorporation changed its independent auditor to Crowe LLP after a competitive process, but disclosed ongoing material weaknesses in internal controls over financial reporting.
Key Events · Corporate Governance and Compliance · HBIA
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Auditor Change Announced
Hills Bancorporation's Audit Committee dismissed Forvis Mazars, LLP and engaged Crowe LLP as the new independent registered public accounting firm for the fiscal year ending December 31, 2026, following a competitive selection process.
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Material Weaknesses Persist
The company disclosed ongoing material weaknesses in internal control over financial reporting, specifically concerning period-end financial reporting, manual journal entry controls, and related party transaction identification and disclosure.
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No Disagreements with Former Auditor
The company confirmed there were no disagreements with Forvis Mazars, LLP on accounting principles, practices, or audit scope, and the former auditor's reports for 2023 and 2024 were unqualified.
Analysis · HBIA · Finance
Hills Bancorporation has appointed Crowe LLP as its new independent registered public accounting firm, replacing Forvis Mazars, LLP, following a competitive review process. While the company reported no disagreements with the outgoing auditor, the filing explicitly notes the persistence of material weaknesses in internal control over financial reporting. These weaknesses relate to period-end financial reporting, segregation of duties for manual journal entries, and disclosure of related party transactions. The new auditor will be responsible for assessing and reporting on these control deficiencies, which could impact investor confidence in the company's financial reporting integrity.
At the time of this filing, HBIA was trading at $83.61 on OTC in the Finance sector, with a market capitalization of approximately $735.4M. The 52-week trading range was $64.02 to $83.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.