Highlands Bankshares : Reports 2024 Second Quarter Earnings And Declares Quarterly Dividend

FOR IMMEDIATE RELEASE

July 9, 2024

Highlands Bankshares, Inc.

Reports 2024 Second Quarter Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $2,121,000 for the first six-month period ended June 30, 2024. This represents an increase of 36.05% from the $1,559,000 earned during the same period in 2023. On a per share basis, net income was $1.59 for the first six months of 2024, compared to earnings of $1.17 per share for the six months ended June 30, 2023.

On July 9, 2024, the Board of Directors declared a quarterly dividend of $0.42 per share to be paid on August 2, 2024 to all shareholders of record as of July 26, 2024. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.73%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "We appear to be approaching an inflection point with interest rates as recent data points to the Federal Reserve beginning to ease monetary policy in the not too distant future. Inflation appears to be cooling and economic data is beginning to show that consumers are feeling the strain of higher interest rates. Locally, economic conditions are stable and we continue to see strength in loan demand, although somewhat less robust than the previous two years. Net interest income for Q2 improved compared to the year ago period due to increases in the loan portfolio, partially offset by higher interest expense on deposits. We have also set aside more money in our allowance for loan losses based on slowing economic conditions compared to the year ago period."

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.