On August 1, 2019, Edward M. Rosinus resigned as a director of Highlands Bankshares, Inc. (the “Company”) and Highlands Union Bank (the “Bank”). Edward M. Rosinus was appointed as a director to the Securities Purchase Agreement (the “Agreement”) dated as of April 14, 2014 by and among the Company and TNH Financials Fund, L.P. (the “Investor”). Edward M. Rosinus’s resignation is not due to a disagreement with the Company’s Board of Directors or management or on any matter relating to the Company’s operations, policies or procedures.

to the Agreement, the Investor designated Michael F. Rosinus as the replacement director of the Company and the Bank and, on August 1, 2019, the Company’s and the Bank’s Board of Directors appointed Michael F. Rosinus as a director of the Company and the Bank. Also to the Agreement, Michael F. Rosinus will enter into the Company’s standard Director Indemnification Agreement, which has been previously filed.

The Company expects that Michael F. Rosinus will be appointed to the Risk Committee and the Nominating & Corporate Governance Committee. Michael F. Rosinus will not receive compensation for his service as a director to the Agreement. Michael F. Rosinus is not a party to any transaction that would be required to be disclosed under Section 404(a) of Regulation S-K.

About HIGHLANDS BANKSHARES, INC. (OTCMKTS:HLND)

Highlands Bankshares, Inc. is a bank holding company. The Company conducts its business operations through its bank subsidiary, Highlands Union Bank (the Bank). The Bank operates a commercial banking business, which offers general retail and commercial banking services to individuals, businesses and local government unit customers. The Bank’s products and services include accepting deposits in the form of checking accounts, money market deposit accounts, interest-bearing demand deposit accounts, savings accounts and time deposits; making residential one- to four-family loans, owner occupied and non-owner occupied commercial real estate loans, second mortgages and equity lines, consumer loans, commercial and industrial loans, credit cards and agricultural loans; offering letters of credit; providing other consumer financial services, such as automatic funds transfer, collections, safe deposit, travelers checks and savings bond sales, and providing other miscellaneous services.