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

FOR IMMEDIATE RELEASE

October 11, 2022

Highlands Bankshares, Inc.

Reports 2022 Third Quarter Earnings

And Declares Quarterly Dividend

Petersburg, WV - Highlands Bankshares, Inc. (OTC: HBSI) announced unaudited earnings of $3,276,000 for the first nine-month period ended September 30, 2022. This represents a decrease of 15% from the $3,857,000 earned during the same period in 2021. On a per share basis, net income was $2.45 for the first nine months of 2022, compared to earnings of $2.88 per share for the nine months ended September 30, 2021.

On October 11, 2022, the Board of Directors declared a quarterly dividend of $0.45 per share to be paid on November 4, 2022 to all shareholders of record as of October 28, 2022. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands' current dividend yield is 4.21%.

Jack H. Walters, Chairman and Chief Executive Officer of the holding company, stated "Despite the economic headwinds that are beginning to be felt across the country related to inflation and interest rate increases, Highlands continues to deliver steady results. We are pleased to again distribute a portion of our income to our shareholders and we thank them for their loyalty and trust in Highlands Bankshares."

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.