Highlands Bankshares, Inc. announced unaudited earnings of $2,390,000 for the first nine-month period ending Sept. 30. This represents a decrease of 27 percent from the $3,276,000 earned during the same period in 2022. On a per share basis, net income was $1.79 for the first nine months of 2023, compared to earnings of $2.45 per share for the nine months ended Sept. 30, 2022.
On Oct. 10, the board of directors declared a quarterly dividend of $0.42 per share to be paid on Nov. 3 to all shareholders of record as of Oct. 27. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands’ current dividend yield is 4.04 percent.
Jack H. Walters, chairman and chief executive officer of the holding company, stated, “Net income has lagged this year compared to the prior year due to the unexpected write-down of certain securities held in our investment portfolio, higher interest expense and increased provisions for future loan losses. When taken together with the current economic and geopolitical uncertainties, we believe it is in the best interest of the company to reduce the dividend to $0.42 per share for the current quarter. This is not a decision we take lightly, but we feel it to be necessary for the long-term strength of the company.”
Highlands Bankshares, Inc. operates 12 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