OTCPK:HBSI

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Highlands Bankshares

Executive Summary

Highlands Bankshares, Inc. operates as the bank holding company for The Grant County Bank and Capon Valley Bank that provide various banking products and services for individuals and businesses.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Highlands Bankshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HBSI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.9%

HBSI

3.9%

US Banks

2.5%

US Market


1 Year Return

-11.7%

HBSI

-20.0%

US Banks

16.3%

US Market

Return vs Industry: HBSI exceeded the US Banks industry which returned -20% over the past year.

Return vs Market: HBSI underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

HBSIIndustryMarket
7 Day3.9%3.9%2.5%
30 Day-5.3%9.5%5.6%
90 Dayn/a7.2%16.4%
1 Year-7.4%-11.7%-17.2%-20.0%18.8%16.3%
3 Year3.1%-8.9%-9.1%-16.4%45.1%35.7%
5 Year80.6%49.0%13.9%0.02%75.8%56.8%

Price Volatility Vs. Market

How volatile is Highlands Bankshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Highlands Bankshares undervalued compared to its fair value and its price relative to the market?

12.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HBSI ($36) is trading above our estimate of fair value ($35.85)

Significantly Below Fair Value: HBSI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HBSI is poor value based on its PE Ratio (12.9x) compared to the US Banks industry average (9.9x).

PE vs Market: HBSI is good value based on its PE Ratio (12.9x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HBSI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HBSI's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is Highlands Bankshares forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

26.7%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Highlands Bankshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Highlands Bankshares performed over the past 5 years?

-0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HBSI has high quality earnings.

Growing Profit Margin: HBSI's current net profit margins (19.1%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: HBSI's earnings have declined by 0.4% per year over the past 5 years.

Accelerating Growth: HBSI's earnings growth over the past year (4.2%) exceeds its 5-year average (-0.4% per year).

Earnings vs Industry: HBSI earnings growth over the past year (4.2%) exceeded the Banks industry -2.9%.


Return on Equity

High ROE: HBSI's Return on Equity (6.8%) is considered low.


Next Steps

Financial Health

How is Highlands Bankshares's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: HBSI's Assets to Equity ratio (7.8x) is low.

Allowance for Bad Loans: HBSI has a low allowance for bad loans (59%).

Low Risk Liabilities: 95% of HBSI's liabilities are made up of primarily low risk sources of funding.

Loan Level: HBSI has an appropriate level of Loans to Assets ratio (77%).

Low Risk Deposits: HBSI's Loans to Deposits ratio (92%) is appropriate.

Level of Bad Loans: HBSI has an appropriate level of bad loans (1.6%).


Next Steps

Dividend

What is Highlands Bankshares's current dividend yield, its reliability and sustainability?

5.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HBSI's dividend (5%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: HBSI's dividend (5%) is in the top 25% of dividend payers in the US market (4.36%)


Stability and Growth of Payments

Stable Dividend: HBSI's dividend payments have been volatile in the past 10 years.

Growing Dividend: HBSI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (64.6%), HBSI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average board tenure


CEO

John Van Meter (82 yo)

8.25yrs

Tenure

US$52,061

Compensation

Mr. John G. Van Meter serves as the Chairman of the Board at Highlands Bankshares Inc. since May 01, 1985 and has been its Chief Executive Officer and President since May 8, 2012. Mr. Van Meter has been Di ...


Board Members

NamePositionTenureCompensationOwnership
John Van Meter
Chairman8.25yrsUS$52.06k3.61%
$ 1.7m
George Ford
Corporate Treasurer & Director9.5yrsUS$29.60k0.26%
$ 126.7k
Michael McDonald
Corporate Secretary & Director0.25yrno data0.11%
$ 54.7k
Jack Walters
Vice Chairman of the Boardno dataUS$41.90k0.97%
$ 468.9k
Morris Homan
Independent Director12.25yrsUS$45.49k0.17%
$ 79.9k
Donald Baker
Independent Director8.25yrsUS$28.70k0.32%
$ 152.8k
Jack Barr
Independent Director8.08yrsUS$30.11k0.10%
$ 50.4k
James Pyles
Independent Director5.25yrsUS$28.36k0.22%
$ 105.1k
John Orndoff
Independent Director4.25yrsUS$25.27k0.19%
$ 90.0k
John Hott
Director0.25yrno data0.050%
$ 24.2k

8.1yrs

Average Tenure

68.5yo

Average Age

Experienced Board: HBSI's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Highlands Bankshares, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Highlands Bankshares, Inc.
  • Ticker: HBSI
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$48.127m
  • Shares outstanding: 1.34m
  • Website: https://www.grantcountybank.com

Location

  • Highlands Bankshares, Inc.
  • 3 North Main Street
  • PO Box 929
  • Petersburg
  • West Virginia
  • 26847
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HBSIOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 1995

Biography

Highlands Bankshares, Inc. operates as the bank holding company for The Grant County Bank and Capon Valley Bank that provide various banking products and services for individuals and businesses. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/09 00:45
End of Day Share Price2020/08/07 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.