Highlands Bankshares, Inc., the parent company of The Grant County Bank and Capon Valley Bank, posted first quarter 2018 earnings of $984,000 or $0.74 per share of common stock outstanding (EPS), compared to $765,000 or $0.57 EPS for the same period of 2017.
On April 10, 2018, the Board of Directors declared a quarterly dividend to shareholders of $0.45 per share. The dividend was payable to all shareholders of record as of April 27, 2018 and was paid on or about May 4, 2018.
Net interest income, on a fully taxable equivalent basis, increased $138,000 for the first three months of 2018, as compared to the same period in 2017. The increase in net interest income was driven by the increase in loan volume and rate and drop in volume of interest bearing liabilities partially offset by the increase in rate of interest bearing liabilities. Net interest margin increased 13.0 basis points to 4.53% at March 31, 2018, from 4.40% at March 31, 2017.
Return on average assets (ROAA) increased in 2018 to 0.97%, as compared to 0.76% in the same period of 2017. The return on average equity (ROAE) increased to 7.67% at March 31, 2018, as compared to 6.01% at December 31, 2017.
Total assets, as of March 31, 2018, decreased $49,000 to $404,609,000 compared to December 31, 2017. Total liabilities decreased $420,000 as of March 31, 2018 to $352,565,000 compared to December 31, 2017.
Shareholders’ Equity at March 31, 2018 was $52,044,000 or $38.93 per outstanding share, compared to December 31, 2017 of $51,673,000 or $38.65 per outstanding share.
John Van Meter, Chairman and Chief Executive Officer of the holding company, stated, “As announced earlier, we increased our dividend to shareholders this quarter based upon operating results and upon review of our dividend strategy in light of recent tax reform and our existing capital position. Highlands stock now provides a dividend yield of 4.2% when annualizing this quarters dividends compared to the current market price. We have also been pleased with the market price of our common stock which has increased from $41.25 per share to $42.65 per share during the current year. Since the end of 2015, our market price has increased 67.3%, and now represents 110% of book value.
“We are proud to announce increased earnings in the first quarter and are looking forward to success in 2018. We had growth in loans, deposits, and equity again this quarter. Our well-capitalized status remains a source of comfort to our shareholders, a buffer against economic uncertainty, and a platform for future growth of the company.
“Customers and relationships will drive the banking industry in the future. We continue to focus on ensuring that we meet the needs of our customers in an evolving banking environment and on positioning Highlands to be the best banking company possible.”