OTCPK:HLND

Stock Analysis Report

Highlands Bankshares

Executive Summary

Highlands Bankshares, Inc. operates as a bank holding company for Highlands Union Bank that provides retail and commercial banking services to individuals, businesses, and local government unit customers in Virginia, North Carolina, and Tennessee.

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.2%

HLND

4.8%

US Banks

2.3%

US Market


1 Year Return

21.0%

HLND

0.04%

US Banks

5.6%

US Market

Return vs Industry: HLND exceeded the US Banks industry which returned 0% over the past year.

Return vs Market: HLND exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

HLNDIndustryMarket
7 Day1.2%4.8%2.3%
30 Day-0.4%-0.5%-1.0%
90 Day19.3%2.0%-0.7%
1 Year21.0%21.0%2.9%0.04%7.9%5.6%
3 Year71.1%71.1%51.5%41.1%45.6%36.3%
5 Year152.8%152.8%70.9%52.3%65.8%47.6%

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?

18.88x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate HLND's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate HLND's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: HLND is poor value based on its PE Ratio (18.9x) compared to the Banks industry average (12.6x).

PE vs Market: HLND is poor value based on its PE Ratio (18.9x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HLND is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HLND's forecast earnings growth (21.7% per year) is above the savings rate (2.7%).

Earnings vs Market: HLND's earnings (21.7% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HLND's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HLND's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if HLND's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Highlands Bankshares performed over the past 5 years?

3.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HLND's earnings have grown by 3.7% per year over the past 5 years.

Accelerating Growth: HLND has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: HLND has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (31.8%).


Return on Equity

High ROE: HLND's Return on Equity (6.1%) is considered low.


Return on Assets

ROA vs Industry: HLND's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate HLND's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: HLND has a low level of unsold assets or inventory.

Debt Coverage by Assets: HLND's debt is covered by short term assets (assets are 1.801870x debt).


Financial Institutions Analysis

Asset Level: HLND's level of assets compared to its equity is moderate.

Allowance for Bad Loans: HLND has a low allowance for bad loans.

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

Loan Level: HLND has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HLND's loans are broadly funded by customer deposits.

Level of Bad Loans: HLND has an appropriate level of bad loans (1.2%)


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate HLND's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HLND's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if HLND's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HLND's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HLND is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HLND's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Highlands Bankshares's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Bryan Booher (48yo)

0.4yrs

Tenure

US$238,692

Compensation

Mr. Bryan Taylor Booher serves as Interim President & Chief Executive Officer of Highlands Bankshares, Inc. and Highlands Union Bank since May 10, 2019. Mr. Booher was appointed as Chief Risk Officer Highl ...


CEO Compensation Analysis

Compensation vs. Market: Bryan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Bryan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

1.5yrs

Average Tenure

55yo

Average Age

Experienced Management: HLND's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: HLND's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$5,54427 Nov 18
Robert Moser
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares900
Max PriceUS$6.16

Ownership Breakdown


Management Team

  • Rusty Little (56yo)

    Chief Accounting Officer

    • Tenure: 0yrs
    • Compensation: US$101.66k
  • Sam Neese (68yo)

    Consultant

    • Tenure: 3.7yrs
    • Compensation: US$257.08k
  • Bryan Booher (48yo)

    Interim President & CEO and Chief Risk Officer

    • Tenure: 0.4yrs
    • Compensation: US$238.69k
  • Karen White

    Director of Human Resources

    • Tenure: 0yrs
  • John Gray (55yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: US$171.79k
  • Robert Howard

    Human Resources Officer

    • Tenure: 0yrs
  • Michael Hill (50yo)

    Chief Banking Officer

    • Tenure: 0.7yrs
    • Compensation: US$238.61k

Board Members

  • E. Kendrick (67yo)

    Independent Director

    • Tenure: 19.8yrs
    • Compensation: US$16.75k
  • Charles Olinger (69yo)

    Independent Director

    • Tenure: 24.8yrs
    • Compensation: US$16.75k
  • Mike Rosinus (60yo)

    Director

    • Tenure: 0.2yrs
  • E. Bacon (39yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$16.75k
  • Jon Lundberg (58yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$16.75k
  • Rob Moser (54yo)

    Independent Chairman

    • Tenure: 1.8yrs
    • Compensation: US$16.75k
  • Chuck Meade (45yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$16.75k

Company Information

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


Key Information

  • Name: Highlands Bankshares, Inc.
  • Ticker: HLND
  • Exchange: OTCPK
  • Founded: 1985
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$69.884m
  • Shares outstanding: 8.25m
  • Website: https://www.hubank.com

Number of Employees


Location

  • Highlands Bankshares, Inc.
  • 340 West Main Street
  • Abingdon
  • Virginia
  • 24210
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HLNDOTCPK (Pink Sheets LLC)YesCommon StockUSUSDAug 2003

Biography

Highlands Bankshares, Inc. operates as a bank holding company for Highlands Union Bank that provides retail and commercial banking services to individuals, businesses, and local government unit customers i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:49
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.