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Highlands Community Bank

Covington, VA · Cert 57420

State charter, Fed member · FED · 3 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets (n=581 to 629). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

42

Q2 2024Q2 2026peer median (50)

Asset Quality

8

Q2 2024Q2 2026peer median (50)

Profitability

21

Q2 2024Q2 2026peer median (50)

Liquidity

2

Q2 2024Q2 2026peer median

Efficiency

16

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Highlands Community Bank

Covington, VA · Cert 57420

State charter, Fed member · FED · 3 branches

Q2 2026

$188.9MAssets
$82.4MLoans
$167.3MDeposits
$20.4MEquity
Loan mix
70%RE $57.2M17%C&I $13.7M13%Consumer $10.2MQ2 2025Q2 2026
Deposit mix
74%Interest-bearing $124.5M26%Noninterest $42.7MQ2 2025Q2 2026

NIM

4.47%Q2 ’244.39%Q2 ’254.42%Q2 ’26+8%+2%

Non-interest income vs. expense

2.91%Q2 ’243.03%Q2 ’253.11%Q2 ’26+3%+3%

Executive Summary

  • Earnings: ROA of 0.39%, up 15 bps year over year; NIM at 3.14%.
  • Asset quality: problem loans at 2.51% of loans (+100 bps YoY), with net charge-offs at 0.27%.
  • Capital: tier 1 leverage ratio of 12.63%, up 31 bps from a year ago.
  • Funding: loans stand at 49.25% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.39%+15 bps YoY

Net Interest Margin (YTD, annualized)

3.14%+6 bps YoY

Efficiency Ratio (YTD, annualized)

87.10%+95 bps YoY

Tier 1 Leverage Ratio

12.63%+31 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.24%0.25%0.28%0.45%0.39%+15 bps
Return on Equity2.54%2.55%2.77%4.18%3.61%+107 bps
Net Interest Margin3.08%3.08%3.10%3.05%3.14%+6 bps
Efficiency Ratio86.15%87.02%87.32%84.77%87.10%+95 bps
Non-Interest Burden2.59%2.62%2.65%2.52%2.67%+9 bps
Growth
Asset Growth (YoY)-4.63%-5.60%-2.89%-1.10%-1.37%+325 bps
Loan Growth (YoY)-13.09%-14.13%-14.42%-15.13%-13.40%-31 bps
Deposit Growth (YoY)-6.65%-6.96%-6.70%-2.36%-2.24%+441 bps
Asset Quality
Nonperforming Loans / Loans1.51%1.56%1.80%2.20%2.51%+100 bps
Net Charge-Offs / Loans0.42%0.43%0.38%-0.04%0.27%-14 bps
Allowance / Loans1.39%1.43%1.42%1.48%1.37%-3 bps
Allowance Coverage of NPLs0.9x0.9x0.8x0.7x0.5x-0.4x
Capital
Tier 1 Leverage Ratio12.32%12.31%12.46%12.35%12.63%+31 bps
Total Risk-Based Capital12.32%12.31%12.46%12.35%12.63%+31 bps
Equity / Assets10.04%10.65%10.80%10.70%10.80%+76 bps
Liquidity & Funding
Loans / Deposits55.60%53.62%52.80%50.12%49.25%-635 bps
Liquid Assets / Assets5.77%4.45%2.91%4.31%5.78%+1 bps
CRE / Total Capitaln/a123.56%122.02%115.27%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Highlands Community Bank

Covington, VA · Cert 57420 · Peer group: banks under $1B in assets (n=581-629)

State charter, Fed member · FED · 3 branches

Q2 2026

$188.9MAssets
$82.4MLoans
$167.3MDeposits
$20.4MEquity

Executive Summary

  • Strongest standing: equity / assets outperforms 52% of banks under $1B in assets (rank 304 of 629).
  • Widest gap: net charge-offs / loans trails 94% of banks under $1B in assets (rank 547 of 581).
  • Overall: at or above the peer median on 1 of 9 directional measures.

Return on Assets

0.39%

Rank 528 of 629

Net Interest Margin

3.14%

Rank 440 of 629

Efficiency Ratio

87.10%

Rank 527 of 629

Equity / Assets

10.80%

Rank 304 of 629

Non-interest income vs. expense

$0.8M$5.9MINCOMEEXPENSE
Unfavorable gap of $5.1M · efficiency ratio beats 16% of banks under $1B in assets
Bank 87.10%Peer median 67.8%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.39%0.60%1.01%1.45%Beats 16%528 / 629
Return on Equity3.61%5.38%9.30%13.28%Beats 17%521 / 629
Net Interest Margin3.14%3.03%3.54%4.05%Beats 30%440 / 629
Efficiency Ratio87.10%58.35%67.79%79.08%Beats 16%527 / 629
Asset Quality
Nonperforming Loans / Loans2.51%0.09%0.46%1.20%Beats 10%526 / 581
Net Charge-Offs / Loans0.29%n/a0.01%0.06%Beats 6%547 / 581
Capital
Tier 1 Capital Ratio12.63%11.24%13.84%18.77%Beats 40%379 / 629
Total Risk-Based Capital Ratio12.63%11.58%14.43%19.66%Beats 35%410 / 629
Equity / Assets10.80%9.09%10.65%13.80%Beats 52%304 / 629
Liquidity & Funding
Loans / Deposits49.25%67.24%80.90%93.48%10th pctl534 / 594
Loans / Assets43.61%53.31%67.71%78.15%16th pctl528 / 629
Brokered Deposits / Depositsn/aNot reported for this institution