Highlands Bankshares : Reports Year End Earnings and Declares Quarterly Dividend

FOR IMMEDIATE RELEASE

February 14, 2023

Highlands Bankshares, Inc.

Reports Year End Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $4,427,000 for the year ended December 31, 2022. This represents a decrease of 10.29% from the $4,935,000 earned during 2021. On a per share basis, net income was $3.31 for 2022, compared to earnings of $3.69 per share for the year ended December 31, 2021.

On February 14, 2023, the Board of Directors declared a quarterly dividend of $0.45 per share to be paid on March 6, 2023 to all shareholders of record as of February 27, 2023. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.19%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "We are pleased with our operating results from the past year. While 2022, presented its share of challenges such as inflation and the unprecedented pace of interest rate increases, we remained focused on building and growing relationships with consumers and businesses throughout our market areas. We look forward to serving our many customers throughout the Potomac Highlands and Virginia in 2023."

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.