<TABLE> <S> <C>

<ARTICLE>       9
</ARTICLE>
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
HIGHLANDS BANKSHARES INC /VA/ CONSOLIDATED BALANCE SHEET AT DECEMBER 31, 1997
AND THE CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31,
1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>    1,000

<S>                                           <C>
<PERIOD-TYPE>                                    12-MOS
<FISCAL-YEAR-END>                           DEC-31-1997
<PERIOD-END>                                DEC-31-1997
<CASH>                                        $   7,712
<INT-BEARING-DEPOSITS>                                0
<FED-FUNDS-SOLD>                                  7,213
<TRADING-ASSETS>                                      0
<INVESTMENTS-HELD-FOR-SALE>                      41,963
<INVESTMENTS-CARRYING>                                0
<INVESTMENTS-MARKET>                                  0
<LOANS>                                         192,005
<ALLOWANCE>                                       1,636
<TOTAL-ASSETS>                                  258,236
<DEPOSITS>                                      236,646
<SHORT-TERM>                                          0
<LIABILITIES-OTHER>                               2,174
<LONG-TERM>                                       2,614
<COMMON>                                          3,081
<PREFERRED-MANDATORY>                                 0
<PREFERRED>                                           0
<OTHER-SE>                                       13,721
<TOTAL-LIABILITIES-AND-EQUITY>                  258,236
<INTEREST-LOAN>                                  16,203
<INTEREST-INVEST>                                 2,363
<INTEREST-OTHER>                                    169
<INTEREST-TOTAL>                                 18,735
<INTEREST-DEPOSIT>                               10,099
<INTEREST-EXPENSE>                               10,321
<INTEREST-INCOME-NET>                             8,414
<LOAN-LOSSES>                                     1,002
<SECURITIES-GAINS>                                   10
<EXPENSE-OTHER>                                   5,382
<INCOME-PRETAX>                                   2,918
<INCOME-PRE-EXTRAORDINARY>                        1,952
<EXTRAORDINARY>                                       0
<CHANGES>                                             0
<NET-INCOME>                                      1,952
<EPS-PRIMARY>                                      1.59
<EPS-DILUTED>                                      1.52
<YIELD-ACTUAL>                                     3.88
<LOANS-NON>                                         888
<LOANS-PAST>                                      1,019
<LOANS-TROUBLED>                                      0
<LOANS-PROBLEM>                                       0
<ALLOWANCE-OPEN>                                  1,072
<CHARGE-OFFS>                                       512
<RECOVERIES>                                         74
<ALLOWANCE-CLOSE>                                 1,636
<ALLOWANCE-DOMESTIC>                              1,636
<ALLOWANCE-FOREIGN>                                   0
<ALLOWANCE-UNALLOCATED>                               0


</TABLE>