<TABLE> <S> <C>


<ARTICLE>                                            9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM HIGHLANDS
BANKSHARES, INC. FORM 10KSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                         0000756862
<NAME>                        HIGHLANDS BANKSHARES, INC.
<MULTIPLIER>                                   1,000

<S>                             <C>
<PERIOD-TYPE>                  YEAR
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   DEC-31-1997
<CASH>                                         3,246
<INT-BEARING-DEPOSITS>                           827
<FED-FUNDS-SOLD>                               6,895
<TRADING-ASSETS>                                   0
<INVESTMENTS-HELD-FOR-SALE>                   31,682
<INVESTMENTS-CARRYING>                         4,577
<INVESTMENTS-MARKET>                           4,678
<LOANS>                                      137,105
<ALLOWANCE>                                    1,370
<TOTAL-ASSETS>                               190,770
<DEPOSITS>                                   167,936
<SHORT-TERM>                                       0
<LIABILITIES-OTHER>                            1,311
<LONG-TERM>                                      226
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                       2,734
<OTHER-SE>                                    18,563
<TOTAL-LIABILITIES-AND-EQUITY>               190,770
<INTEREST-LOAN>                               12,230
<INTEREST-INVEST>                              2,503
<INTEREST-OTHER>                                 351
<INTEREST-TOTAL>                              15,084
<INTEREST-DEPOSIT>                             7,388
<INTEREST-EXPENSE>                             7,473
<INTEREST-INCOME-NET>                          7,610
<LOAN-LOSSES>                                    190
<SECURITIES-GAINS>                              (117)
<EXPENSE-OTHER>                                5,115
<INCOME-PRETAX>                                2,877
<INCOME-PRE-EXTRAORDINARY>                     1,880
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                   1,880
<EPS-PRIMARY>                                   3.73
<EPS-DILUTED>                                   3.73
<YIELD-ACTUAL>                                  4.35
<LOANS-NON>                                        0
<LOANS-PAST>                                   1,247
<LOANS-TROUBLED>                                   0
<LOANS-PROBLEM>                                    0
<ALLOWANCE-OPEN>                               1,257
<CHARGE-OFFS>                                    225
<RECOVERIES>                                     147
<ALLOWANCE-CLOSE>                              1,369
<ALLOWANCE-DOMESTIC>                           1,369
<ALLOWANCE-FOREIGN>                                0
<ALLOWANCE-UNALLOCATED>                            0


</TABLE>