Highlands Bankshares : Reports 2021 Year End Earnings and Declares Quarterly Dividend

FOR IMMEDIATE RELEASE

February 8, 2021

Highlands Bankshares, Inc.

Reports Year End Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $4,935,000 for the year ended December 31, 2021. This represents an increase of 47.7% from the $3,341,000 earned during 2020. On a per share basis, net income was $3.69 for 2021, compared to earnings of $2.50 per share for the year ended December 31, 2020.

On February 8, 2022, the Board of Directors declared a quarterly dividend of $0.45 per share to be paid on February 25, 2022 to all shareholders of record as of February 18, 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 "We are pleased to report earnings for the full year of 2021. 2021 was an excellent year for the Company on many levels. We remain committed to our clients, communities and shareholders and work hard every day to provide excellent banking services to clients, support to our communities and a fair return to our shareholders."

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.