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

FOR IMMEDIATE RELEASE

October 12, 2021

Highlands Bankshares, Inc.

Reports 2021 Third Quarter Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $3,857,000 for the first nine-month period ended September 30, 2021. This represents an increase of 61% from the $2,392,000 earned during the same period in 2020. On a per share basis, net income was $2.88 for the first nine months of 2021, compared to earnings of $1.79 per share for the nine months ended September 30, 2020.

On October 12, 2021, the Board of Directors declared a quarterly dividend of $0.45 per share to be paid on November 4, 2021 to all shareholders of record as of October 29, 2021. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.68%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "We are pleased to distribute a $0.45 cash dividend to our shareholders. We have been diligently working through the forgiveness process for loans originated under the Paycheck Protection Program and fee income from these loans has contributed to outsized returns in this quarter as compared to prior quarters and to last year. These fees have helped offset the margin compression and soft lending environment that has occurred in the wake of record stimulus payments by the federal government."

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.