Highlands Bankshares : Reports 2021 Second Quarter Earnings and Declares Quarterly Dividend

FOR IMMEDIATE RELEASE

July 14, 2021

Highlands Bankshares, Inc.

Reports 2021 Second Quarter Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $2,335,000 for the first six-month period ended June 30, 2021. This represents an increase of 51.72% from the $1,539,000 earned during the same period in 2020. On a per share basis, net income was $1.74 for the first six months of 2021, compared to earnings of $1.15 per share for the six months ended June 30, 2020.

On July 13, 2021, the Board of Directors declared a quarterly dividend of $0.42 per share to be paid on August 6, 2021 to all shareholders of record as of July 30, 2021. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.27%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "The first six months of 2021 have shown significant improvement over the same period last year as lower net interest margins have been offset by increased non-interest income and reduced provisions for loan losses. We were active participants in the first half of the year in the Paycheck Protection Program which assisted many local area businesses in their recovery from the pandemic. The economy in our local markets continues to improve despite various challenges in the form of supply chain disruptions and hiring difficulties which are after effects of the COVID-19 pandemic."

Highlands Bankshares, Inc. operates twelve banking locations in West Virginia and Virginia through its two wholly-owned subsidiary banks, The Grant County Bank and Capon Valley Bank, and offers insurance services through its wholly-owned subsidiary HBI Life Insurance Company.