HIGHLANDS BANKSHARES INC /VA/ Files SEC form 10-Q, Quarterly Report

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is provided to address information about the Company's financial condition and results of operations that is not otherwise apparent from the Consolidated Financial Statements and the notes thereto or included in this report. Reference should be made to those statements and the notes thereto for an understanding of the following discussion and analysis. The Company generates a significant amount of its income from the net interest income earned by the Bank. Net interest income is the difference between interest income and interest expense. Interest income depends on the amount of interest-earning assets outstanding during the period and the interest rates earned thereon. The Company's cost of money is a function of the average amount of deposits and borrowed money outstanding during the period and the interest rates paid thereon. The quality of the assets further influences the amount of interest income lost on non-accrual loans and the amount of additions to the allowance for loan losses. Highlands Union Insurance Services and Highlands Union Financial Services, which are subsidiaries of Highlands Union Bank, generate fee income by providing insurance and financial service products to its clients. Critical Accounting Policy The financial condition and results of operations presented in the Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements and management's discussion and analysis are, to a large degree, dependent upon the accounting policies of the Company. The selection and application of these accounting policies involve judgments, estimates, and uncertainties that are susceptible to change. For a discussion of the Company's critical accounting policy related to its allowance for loan losses, see the Company's Annual Report on Form 10-K for the year ended December 31, 2008. 2008 - ...
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HIGHLANDS BANKSHARES INC /VA/ Financials

PERIOD ENDING30-Jun-0931-Mar-0931-Dec-0830-Sep-08Total Revenue10,086  10,925  10,606  10,949  Cost of Revenue2,982  3,169  3,518  3,523  Gross Profit7,104  7,756  7,088  7,426  Operating ExpensesResearch Development -   -   -   -  Selling General and Administrative4,686  5,108  4,751  4,470  Non Recurring -   -   -   -  Others353  389  238  6,498  Total Operating Expenses -   -   -   -  Operating Income or Loss2,065  2,259  2,099  (3,542)Income from Continuing OperationsTotal Other Income/Expenses Net -   -   -   -  Earnings Before Interest And Taxes2,065  2,259  2,099  (3,542)Interest Expense1,174  1,115  1,157  1,210  Income Before Tax891  1,144  942  (4,752)Income Tax Expense(33)(71)70  (1,850)Minority Interest -   -   -   -  Net Income From Continuing Ops924  1,215  872  (2,902)Non-recurring EventsDiscontinued Operations -   -   -   -  Extraordinary Items -   -   -   -  Effect Of Accounting Changes -   ...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 10-Q, Quarterly Report

Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is provided to address information about the Company's financial condition and results of operations that is not otherwise apparent from the Consolidated Financial Statements and the notes thereto or included in this report. Reference should be made to those statements and the notes thereto for an understanding of the following discussion and analysis. The Company generates a significant amount of its income from the net interest income earned by the Bank. Net interest income is the difference between interest income and interest expense. Interest income depends on the amount of interest-earning assets outstanding during the period and the interest rates earned thereon. The Company's cost of money is a function of the average amount of deposits and borrowed money outstanding during the period and the interest rates paid thereon. The quality of the assets further influences the amount of interest income lost on non-accrual loans and the amount of additions to the allowance for loan losses. Highlands Union Insurance Services and Highlands Union Financial Services, which are subsidiaries of Highlands Union Bank, generate fee income by providing insurance and financial service products to its clients. Critical Accounting Policy The financial condition and results of operations presented in the Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements and management's discussion and analysis are, to a large degree, dependent upon the accounting policies of the Company. The selection and application of these accounting policies involve judgments, estimates, and uncertainties that are susceptible to change. For a discussion of the Company's critical accounting policy related to its allowance for loan losses, see the Company's Annual Report on Form 10-K for the year ended December 31, 2008. 2008 - 2009 Economic Environmen...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 8-K, Other Events

Show all filings for HIGHLANDS BANKSHARES INC /VA/ | Request a Trial to NEW EDGAR Online Pro Form 8-K for HIGHLANDS BANKSHARES INC /VA/ 10-Jul-2009Other Events Copyright © 2009 Yahoo! Inc. All rights reserved. Privacy Policy - Terms of Service - Copyright/IP Policy - Send Feedback SEC Filing data and information provided by EDGAR Online, Inc. (1-800-416-6651). All information provided "as is" for informational purposes only, not ...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 10-Q, Quarterly Report

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is provided to address information about the Company's financial condition and results of operations that is not otherwise apparent from the Consolidated Financial Statements and the notes thereto or included in this report. Reference should be made to those statements and the notes thereto for an understanding of the following discussion and analysis. The Company generates a significant amount of its income from the net interest income earned by the Bank. Net interest income is the difference between interest income and interest expense. Interest income depends on the amount of interest-earning assets outstanding during the period and the interest rates earned thereon. The Company's cost of money is a function of the average amount of deposits and borrowed money outstanding during the period and the interest rates paid thereon. The quality of the assets further influences the amount of interest income lost on non-accrual loans and the amount of additions to the allowance for loan losses. Highlands Union Insurance Services and Highlands Union Financial Services, which are subsidiaries of Highlands Union Bank, generate fee income by providing insurance and financial service products to its clients. Critical Accounting Policy The financial condition and results of operations presented in the Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements and management's discussion and analysis are, to a large degree, dependent upon the accounting policies of the Company. The selection and application of these accounting policies involve judgments, estimates, and uncertainties that are susceptible to change. For a discussion of the Company's critical accounting policy related to its allowance for loan losses, see the Company's Annual Report on Form 10-K for the year ended December 31, 2008. 2008...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 8-K, Other Events, Financial Statements and Exhibits

Item 8.01. Other Events. Highlands Bankshares, Inc. (the "Company") has previously announced that it was considering participating in the U.S. Treasury Department's TARP Capital Purchase Program ("CPP"). Since that time, the Company began looking for alternative sources of capital due to its concerns with the potential for additional regulatory burdens associated with the CPP and the possibility that Congress could further change the terms of the transaction or impose additional burdens at any time. The Company announced today that it entered into a $7,500,000 Loan Commitment with Community Bankers Bank ("CBB"), pursuant to which CBB agreed to extend to the Company a Revolving Line of Credit of up to $3,000,000 ("Loan A") and a Closed-End Term Loan of up to $4,500,000 ("Loan B") (collectively, the "Loans"). As a result, the Board of Directors of the Company determined that it was not in the best interests of the Company or its shareholders to participate in the CPP and declined the opportunity. The Company advanced an initial $3,000,000 under the Loans on April 24, 2009 and may advance up to the maximum amount under the Loans in minimal increments of $500,000. Loan A shall accrue interest at the U.S. prime rate, subject to a floor of 5% and a ceiling of 9%. Loan B shall accrue interest at a rate of 6.75% for the initial five year term then adjusting to the prevailing market rate of interest at renewal. The Loans may be repaid in whole or in part at any time without penalty. Loan A will mature in three years and shall be renewed annually therafter at the request of the Company, provided that no conditions of default exist. Loan B will mature in five years and shall renew for an additional five year period at the request of the Company, provided that no conditions of default exist. As collateral for the Loans, the Company pledged 100% of the authorized capital stock of its wholly-owned subsidiary, Highlands Union Bank. Th...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 10-K, Annual Report

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations The purpose of this discussion is to provide information about the financial condition and results of operations of the Company and its wholly-owned subsidiaries and other information included in this report. This discussion should be read in conjunction with the Company's Consolidated Financial Statements and Notes to Consolidated Financial Statements. Caution About Forward-Looking Statements This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Company's actual results could differ materially form those set forth in the forward-looking statements. Such forward-looking statements involve known and unknown risks including, but not limited to, the following factors: • Difficult market conditions in our industry; • Unprecedented levels of market volatility; • Effects of soundness of other financial institutions; • Uncertain outcome of recently enacted legislation to stabilize the U.S. financial system; • Potential impact on us of recently enacted legislation; • Further deterioration in the housing market; • Continued problems related to the national credit crisis and deepening recession; • Unemployment continuing to rise; • The ability to successfully manage the Company's growth or implement its growth strategies if it is unable to identify attractive markets, locations or opportunities to expand in the future; • The ability to continue to attract low cost core deposits to fund asset growth; • The ability to attract and maintain capital levels adequate to support the Company's growth; • Maintaining cost controls and asset qualities as the Company opens or acquires new branches; • Reliance on the Company's management team, in...
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HIGHLANDS BANKSHARES INC /VA/ Files SEC form 10-Q, Quarterly Report

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is provided to address information about the Company's financial condition and results of operations that is not otherwise apparent from the Consolidated Financial Statements and the notes thereto or included in this report. Reference should be made to those statements and the notes thereto for an understanding of the following discussion and analysis. The Company generates a significant amount of its income from the net interest income earned by the Bank. Net interest income is the difference between interest income and interest expense. Interest income depends on the amount of interest-earning assets outstanding during the period and the interest rates earned thereon. The Company's cost of money is a function of the average amount of deposits and borrowed money outstanding during the period and the interest rates paid thereon. The quality of the assets further influences the amount of interest income lost on non-accrual loans and the amount of additions to the allowance for loan losses. Highlands Union Insurance Services and Highlands Union Financial Services, which are subsidiaries of Highlands Union Bank, generate fee income by providing insurance and financial service products to its clients. Critical Accounting Policy The financial condition and results of operations presented in the Consolidated Financial Statements, accompanying Notes to Consolidated Financial Statements and management's discussion and analysis are, to a large degree, dependent upon the accounting policies of the Company. The selection and application of these accounting policies involve judgments, estimates, and uncertainties that are susceptible to change. For a discussion of the Company's critical accounting policy related to its allowance for loan losses, see the Company's Annual Report on Form 10-K for the year ended December 31, 2007. Results...
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