Highlands Bankshares : Reports 2022 First Quarter Earnings and Declares Quarterly Dividend

FOR IMMEDIATE RELEASE April 12, 2022

Highlands Bankshares, Inc. Reports 2022 First Quarter Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $917,000 for the first three-month period ended March 31, 2022. This represents a decrease of 12% from the $1,046,000 earned during the same period in 2021. On a per share basis, net income was $0.68 for the first three months of 2022, compared to earnings of $0.78 per share for the three months ended March 31, 2022.

On April 12, 2022, the Board of Directors declared a quarterly dividend of $0.45 per share to be paid on May 6, 2022 to all shareholders of record as of April 29, 2022. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.09%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "Despite a tumultuous start to the year world-wide, Highlands continues to deliver consistent earnings and a healthy dividend to shareholders for the first quarter. We are well positioned to continue to support consumers and small business clients throughout the Potomac Highlands and Shenandoah Valley with their financial needs.

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.