Highlands Bankshares, Inc. reported unaudited earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported total interest income of $5,895,000 against $5,461,000 a year ago. Net interest income was $4,843,000 against $4,340,000 a year ago. Income before income taxes was $125,000 against loss before income taxes of $1,265,000 a year ago. Net income was $155,000 or $0.02 per basic and diluted share against net loss of $806,000 or $0.08 per diluted share a year ago. Return on average assets was positive at 0.10% compared to negative of 0.52% a year ago. Return on average equity was positive at 1.14% compared to negative of 5.95% a year ago. Book value per common share as at December 31, 2016 was $5.71 against $5.94 a year ago. In 2016, the Company's earnings were negatively impacted by a proactive strategy to improve credit risk and normalize its expense structure. In 2015, net income benefited from a $1.0 million deferred tax valuation reversal.

For the year, the company reported total interest income of $23,394,000 against $22,763,000 a year ago. Net interest income was $19,219,000 against $18,206,000 a year ago. Loss before income taxes was $348,000 against income before income taxes of $132,000 a year ago. Net income was $12,000 or $0.00 per basic and diluted share against $1,337,000 or $0.13 per diluted share a year ago.

For the fourth quarter of 2016, the company's net loan charge-offs were $216,000.