Highlands Bankshares, Inc. (OTCQB: HBSI) announces results of operations for the first quarter of 2015.
Highlands Bankshares, Inc., the parent company of The Grant County Bank and Capon Valley Bank, posted first quarter 2015 earnings of $755,000 or $0.56 per share of common stock outstanding (EPS), compared to $594,000 or $0.44 EPS for the same period of 2014.
On April 14, 2015, the Board of Directors declared a quarterly dividend to shareholders of $0.25 per share. This is a $0.10 per share increase over the amount declared for the same period in 2014. The dividend was payable to shareholders of record April 30, 2015 and was paid on May 8, 2015.
The company’s total provision for loan loss expense during the first three months of 2015 decreased $255,000 or 160.4% compared to the same period of 2014. The Company continually evaluates a number of factors including periodic credit reviews, non-performing assets, local and national economic trends, and loan portfolio mix to determine the provision for loan losses. As a result of a decrease in non-performing loans, a substantial reduction in the levels of charged-off loans, as well as a gradually improving economy, the company reversed $100,000 of its allowance for loan losses into income during the first quarter of 2015 that was previously placed into the allowance for loan losses.
Gross loans increased $1,920,000 or 0.6% to $306,394,000 at March 31, 2015 from $304,474,000 at December 31, 2014. Comparing loan growth for a one year period ending March 31, 2015, gross loans increased $8,104,000 or 2.71%. Net interest margin decreased 3.0 basis points to 4.44% at March 31, 2015 from 4.47% at March 31, 2014.
Return on average assets (ROAA) increased during 2015 to 0.77%, as compared to 0.62% in the same period of 2014. Likewise, the return on average equity (ROAE) increased to 6.42% during 2015, as compared to 5.39% in the same period of 2014.
Total assets, as of March 31, 2015, increased 1.0% or $3,968,000 to $392,061,000 compared to December 31, 2014. Total liabilities increased $3,486,000 or 1.0% as of March 31, 2015 to $344,805,000 compared to December 31, 2014.
Shareholders’ Equity at March 31, 2015 was $47,256,000 or $35.35 per outstanding share, compared to December 31, 2014 of $46,774,000 or $34.99 per outstanding share.
John Van Meter, Chairman and Chief Executive Officer of the holding company, stated “We are pleased with our continued quarter over quarter improved performance demonstrating our commitment to provide a solid return on shareholder investment while maintaining a strong capital position. Based upon the current market price and annualizing the dividends paid to shareholders this quarter, Highlands’ current dividend yield is approximately 4.0%.
“With the strengthening of our balance sheet and capital ratios, we were able to invest excess liquidity in loans at a time of increased commercial loan demand as the housing market remains sluggish. We have also benefited from lower interest expense by managing rates on our deposits.
“We remain practical and conservative and must consider the many challenges still facing the banking industry as a whole. We will, however, continue to make efforts to enhance our performance and the banking experience for our customers by relying on our established areas of expertise.”
Highlands Bankshares, Inc. operates twelve 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.