Company Highlands Bankshares, Inc.

Highlands Bankshares, Inc. is a bank holding company. The Company conducts its business operations through its bank subsidiary, Highlands Union Bank (the Bank). The Bank operates a commercial banking business, which offers general retail and commercial banking services to individuals, businesses and local government unit customers. The Bank's products and services include accepting deposits in the form of checking accounts, money market deposit accounts, interest-bearing demand deposit accounts, savings accounts and time deposits; making residential one- to four-family loans, owner occupied and non-owner occupied commercial real estate loans, second mortgages and equity lines, consumer loans, commercial and industrial loans, credit cards and agricultural loans; offering letters of credit; providing other consumer financial services, such as automatic funds transfer, collections, safe deposit, travelers checks and savings bond sales, and providing other miscellaneous services.