<TABLE> <S> <C>


<ARTICLE>                                            9
<LEGEND>
       This schedule contains summary financial information extracted from
Highlands Bankshares, Inc. Form 10QSB and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER>                                   1,000
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   MAR-31-1998
<CASH>                                               3,823
<INT-BEARING-DEPOSITS>                                 864
<FED-FUNDS-SOLD>                                     6,524
<TRADING-ASSETS>                                         0
<INVESTMENTS-HELD-FOR-SALE>                         30,401
<INVESTMENTS-CARRYING>                               4,426
<INVESTMENTS-MARKET>                                 4,520
<LOANS>                                            140,682
<ALLOWANCE>                                         (1,320)
<TOTAL-ASSETS>                                     195,252
<DEPOSITS>                                         171,718
<SHORT-TERM>                                            24
<LIABILITIES-OTHER>                                  1,627
<LONG-TERM>                                            228
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                             2,734
<OTHER-SE>                                          18,921
<TOTAL-LIABILITIES-AND-EQUITY>                     195,252
<INTEREST-LOAN>                                      3,157
<INTEREST-INVEST>                                      573
<INTEREST-OTHER>                                       100
<INTEREST-TOTAL>                                     3,830
<INTEREST-DEPOSIT>                                   1,882
<INTEREST-EXPENSE>                                   1,885
<INTEREST-INCOME-NET>                                1,945
<LOAN-LOSSES>                                           60
<SECURITIES-GAINS>                                       6
<EXPENSE-OTHER>                                      1,317
<INCOME-PRETAX>                                        732
<INCOME-PRE-EXTRAORDINARY>                             732
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                           497
<EPS-PRIMARY>                                          .99
<EPS-DILUTED>                                          .99
<YIELD-ACTUAL>                                        4.34
<LOANS-NON>                                             70
<LOANS-PAST>                                         1,216
<LOANS-TROUBLED>                                         0
<LOANS-PROBLEM>                                          0
<ALLOWANCE-OPEN>                                     1,370
<CHARGE-OFFS>                                          133
<RECOVERIES>                                            23
<ALLOWANCE-CLOSE>                                    1,320
<ALLOWANCE-DOMESTIC>                                 1,320
<ALLOWANCE-FOREIGN>                                      0
<ALLOWANCE-UNALLOCATED>                                  0
        


</TABLE>