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Highlands Bankshares Announces The Planned Retirements Of Founding Directors James D. Moore, Jr., M.D. Non-Executive Chairman, and H. Ramsey White, Jr., D.D.S. Robert W. Moser, Jr. Elected Non-Executive Chairman

ABINGDON, VA, November 6, 2017 – Highlands Bankshares, Inc. (OTCQX: HLND) today announced the planned retirements of founding directors James D. Moore, Jr.,M.D., non-executive chairman of the board, and H. Ramsey White Jr., D.D.S., from the Company and its subsidiary, Highlands Union Bank, effective December 31, 2017. The board of directors elected Robert W. Moser, Jr. to be the Company’s and subsidiary bank’s next non-executive chairman, effective January 1, 2018.

“We thank Jim and Ramsey for their outstanding leadership of Highlands,” said Timothy K. Schools, President and Chief Executive Officer. “Without their entrepreneurial spirit in 1983 and perseverance through the recent economic crisis, Highlands would not exist today as one of Southwest Virginia’s largest employers, taxpayers, and capital providers. Through their thoughtful guidance, the board invested considerable time in succession planning the last two years with the goal of assembling a board and management team well suited to continue their vision of being an outstanding provider of financial services. It is due to their commitment that as they approach the Company’s mandatory retirement age, a strong team has been assembled, our financial health is near its peak, and in the past month Highlands was recognized as the best bank in our home market of Washington County, Virginia.”

Highlands Union Bank, the sole subsidiary of Highlands Bankshares, was opportunistically created in 1983 following Central Fidelity Bank’s acquisition of Washington County National Bank to provide Washington County, Virginia’s citizens and small businesses a locally-based bank with a foundation centered on service excellence and responsiveness. It opened in Abingdon, Virginia in 1985 with a $2 million capital investment. From a single location and through outstanding customer service, Highlands expanded over the following thirty-two years to serve markets in North Carolina, Tennessee, and Virginia and manage over $600 million in assets. Over the last year, Highlands has been recognized as the best bank in Watauga, North Carolina, Bristol, Virginia, Smyth County, Virginia, and Washington County, Virginia.

Mr. Moser joined the board of the Company and Bank in May of 2017. He is the co-founder, President, and Chief Operations Officer of Immedion, a leading data center services and Infrastructure-as-a-Service (IaaS) provider located in six markets covering western North Carolina, southern Ohio, and South Carolina. Previously, he spent nearly twenty years at Solectron and NCR where he earned the designation of Six Sigma Green Belt. Moser holds a Bachelor of Science degree in Computer Engineering from Clemson University.

About Highlands

Highlands provides a relationship-based and highly personal banking experience too small to mid-sized private businesses and professionals. Focused on providing value to each and every customer, Highlands delivers banking services through highly skilled employees, digital channels, as well as 16 offices located in North Carolina, Eastern Tennessee, and Southwest Virginia. For more information about Highlands, visit the company's website at

Contact Tim Schools, Chief Executive Officer, Highlands Bankshares, INC.,276-429-3000

Cautions Concerning Forward-Looking Statements

This news release may contain 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, including statements relating to financial and operational performance and certain plans, expectations, goals and projections. Although the Company believes that its expectations with respect to the forward-looking statements are based upon reliable assumptions within the bounds of its knowledge of its business and operations, these statements are inherently subject to numerous assumptions, risks and uncertainties, and there can be no assurances that actual results, performance or achievements will not differ materially from those set forth or implied in the forward-looking statements. For an explanation of the risks and uncertainties associated with forward-looking statements, see the risk factors and other cautionary language included in the Company's Annual Report on Form 10-K for the year ended December 31, 2015, and other filings with the Securities and Exchange Commission. All forward-looking statements included in this press release are based upon information available at the time of the release, and the Company assumes no obligation to update any forward-looking statement.

For more information about Highlands, visit the company’s website at