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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=573 to 620). 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

43

Q2 2024Q2 2026peer median (50)

Asset Quality

8

Q2 2024Q2 2026peer median (50)

Profitability

21

Q2 2024Q2 2026peer median (50)

Liquidity

9

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 2026-10-10

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 $10.2MQ3 2024Q2 2026
Deposit mix
74%Interest-bearing $124.5M26%Noninterest $42.7MQ3 2024Q2 2026

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.

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

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%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.10%0.08%0.21%0.24%0.25%0.28%0.45%0.39%+15 bps
Return on Equity1.13%0.96%2.32%2.54%2.55%2.77%4.18%3.61%+107 bps
Net Interest Margin2.83%2.84%2.99%3.08%3.08%3.10%3.05%3.14%+6 bps
Efficiency Ratio88.03%90.13%85.24%86.15%87.02%87.32%84.77%87.10%+95 bps
Non-Interest Burden2.44%2.51%2.49%2.59%2.62%2.65%2.52%2.67%+9 bps
Growth
Asset Growth (YoY)0.59%-2.01%-5.20%-4.63%-5.60%-2.89%-1.10%-1.37%+325 bps
Loan Growth (YoY)-2.05%-5.14%-11.41%-13.09%-14.13%-14.42%-15.13%-13.40%-31 bps
Deposit Growth (YoY)-2.05%-2.61%-5.11%-6.65%-6.96%-6.70%-2.36%-2.24%+441 bps
Asset Quality
Nonperforming Loans / Loans1.09%1.08%1.23%1.51%1.56%1.80%2.20%2.51%+100 bps
Net Charge-Offs / Loans0.49%0.40%0.70%0.42%0.43%0.38%-0.04%0.27%-14 bps
Allowance / Loans1.33%1.40%1.30%1.39%1.43%1.42%1.48%1.37%-3 bps
Allowance Coverage of NPLs1.2x1.3x1.0x0.9x0.9x0.8x0.7x0.5x-0.4x
Capital
Tier 1 Leverage Ratio11.61%11.63%12.03%12.32%12.31%12.46%12.35%12.63%+31 bps
Total Risk-Based Capital11.61%11.63%12.03%12.32%12.31%12.46%12.35%12.63%+31 bps
Equity / Assets9.48%8.90%9.63%10.04%10.65%10.80%10.70%10.80%+76 bps
Liquidity & Funding
Loans / Deposits58.09%57.56%57.66%55.60%53.62%52.80%50.12%49.25%-635 bps
Liquid Assets / Assets7.04%4.47%4.91%5.77%4.45%2.91%4.31%5.78%+1 bps
CRE / Total Capitaln/an/an/an/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 2026-10-10

Highlands Community Bank

Covington, VA · Cert 57420 · Peer group: banks under $1B in assets (n=573-620)

State charter, Fed member · FED · 3 branches

Q2 2026

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

Executive Summary

  • Strongest standing: equity / assets outperforms 53% of banks under $1B in assets (rank 293 of 620).
  • Widest gap: net charge-offs / loans trails 94% of banks under $1B in assets (rank 539 of 573).
  • Overall: at or above the peer median on 1 of 9 directional measures.

Return on Assets

0.39%

Rank 520 of 620

Net Interest Margin

3.14%

Rank 431 of 620

Efficiency Ratio

87.10%

Rank 520 of 620

Equity / Assets

10.80%

Rank 293 of 620

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 68.1%Q2 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets0.39%0.60%1.00%1.45%Beats 16%520 / 620
Return on Equity3.61%5.30%9.30%13.29%Beats 17%513 / 620
Net Interest Margin3.14%3.02%3.53%4.04%Beats 30%431 / 620
Efficiency Ratio87.10%58.35%68.08%79.37%Beats 16%520 / 620
Asset Quality
Nonperforming Loans / Loans2.51%0.09%0.47%1.27%Beats 10%515 / 573
Net Charge-Offs / Loans0.29%n/a0.01%0.06%Beats 6%539 / 573
Capital
Tier 1 Capital Ratio12.63%11.27%13.87%18.78%Beats 40%375 / 620
Total Risk-Based Capital Ratio12.63%11.69%14.57%19.67%Beats 35%405 / 620
Equity / Assets10.80%9.03%10.60%13.73%Beats 53%293 / 620
Liquidity & Funding
Loans / Deposits49.25%65.08%79.69%92.47%11th pctl520 / 585
Loans / Assets43.61%51.85%67.17%77.86%17th pctl514 / 620
Brokered Deposits / Depositsn/aNot reported for this institution