Highlands Bankshares, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported total interest income was $6,009,000 against $5,761,000 a year ago. Net interest income was $5,218,000 against $4,814,000 a year ago. Income before income taxes was $1,380,000 against $1,574,000 a year ago. Net income was $1,091,000 against $1,020,000 a year ago. Diluted per share was $0.11 against $0.10 a year ago. Return on average assets (annualized) was 1.25% compared to 0.68% a year ago.

For the nine months, the company reported total interest income was $17,643,000 against $17,090,000 a year ago. Net interest income was $15,239,000 against $14,046,000 a year ago. Income before income taxes was $3,330,000 against $4,001,000 a year ago. Net income was $2,624,000 against $2,688,000 a year ago. Diluted per share was $0.25 against $0.26 a year ago. The book value per share of common and preferred stock at September 30, 2018 was $5.30, compared with $5.26 on June 30, 2018, and $5.55 on September 30, 2017. The year over year decline in stockholders' equity and book value per share of common and preferred stock is principally due to the revaluation of the company's net deferred tax asset related to the enactment of the Tax Cuts and Jobs Act in December 2017 and an increase throughout the year in the unrealized loss of the Company's investment portfolio recorded in accumulated other comprehensive income. Book value per common share was $5.80 compared to $6.12 a year ago.

The company's net charge-offs in the third quarter of 2018 were $110,000 or 0.10% annualized of average loans held for investment.

The company provided earnings guidance for the fourth quarter and full year 2018. The company is well positioned for a strong fourth quarter and anticipate 2018 as a whole to be another great year.