Highlands Bankshares, Inc., the parent company of The Grant County Bank and Capon Valley Bank, posted year to date earnings for the first six months of 2018 of $1,910,000 or $1.43 per share of common stock outstanding (EPS), compared to $1,600,000 or $1.20 EPS for the same period of 2017.
On July 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 July 27, 2018 and was paid on or about August 3, 2018.
Net interest income, on a fully taxable equivalent basis, increased $233,000 for the first six 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 9.0 basis points to 4.58% at June 30, 2018, from 4.49% at June 30, 2017.
Return on average assets (ROAA) increased in 2018 to 0.94%, as compared to 0.79% in the same period of 2017. The return on average equity (ROAE) increased to 7.42% at June 30, 2018, as compared to 6.15% at June 30, 2017.
Total assets, as of June 30, 2018, increased $5,000,000 to $409,642,000 compared to December 31, 2017. Total liabilities increased $4,300,000 as of June 30, 2018 to $357,300,000 compared to December 31, 2017.
Shareholders’ Equity at June 30, 2018 was $52,342,000 or $39.15 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, “Our balance sheet is positioned well in the current environment. The company has had growth in total deposits, total loans, earnings per share, and book value. We remain focused on maintaining and developing relationships with small businesses and customers who understanding the advantages of establishing loan and deposit accounts with a locally owned and managed community bank.
“We are pleased that we are creating additional value for our stockholders by declaring a robust dividend again this quarter based upon the positive operating results and our current capital position. Our dividend yield is 3.90% when annualizing this quarters dividends compared to the current market price. Shareholder value has also increased with the increase in market price to $46.00 compared to $41.25 per share at the beginning of the year and now represents 117.5% of book value.
“We are well positioned to continue experiencing positive operating performance, and our engaged team members are looking forward to continuing to create value for the remainder of the year.”
Highlands Bankshares, Inc. is listed on the OTC market under the symbol HBSI (http://www.otcmarkets.com) and is the holding company for The Grant County Bank and Capon Valley Bank. Highland’s subsidiary banks operate twelve banking locations in West Virginia and Virginia and offer credit insurance through its wholly-owned subsidiary, HBI Life Insurance Company.