Highlands Bankshares collected $1 million in net income during the fourth quarter of 2018, which was significantly more than the company’s $3.1 million net loss reported during the fourth quarter of 2017.
According to a press release from the company, the company had to pay a one-time additional income tax expense of $4 million in December 2017 due to the reevaluation of the company’s net deferred tax assets related to the enactment of the Tax Cuts and Jobs Act.
“2018 was an outstanding year by all measures. The tremendous work of our Highlands teammates over recent years resulted in our highest earnings since 2007, highest net interest margin since 2002, highest leverage ratio in the company's history, and lowest net charge-off ratio since 1995,” Highlands Bankshares CEO Timothy Schools said.
“Equally important, we maintained our well-recognized focus on customer service, earning ‘Best Bank’ designations in our home market of Washington County, Virginia, for the second consecutive year, and Watauga County, North Carolina, one of our key growth markets, for the fourth consecutive year.
“Highlands is well positioned, and we are even more excited about our prospects for 2019 and beyond and appreciate the loyalty of our employees, customers and shareholders."
Highlands provides banking services to small- to mid-sized private businesses, professionals and individuals. The company operates 16 offices in North Carolina, East Tennessee and Southwest Virginia.