<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-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   DEC-31-1998
<CASH>                                         5,112
<INT-BEARING-DEPOSITS>                         3,432
<FED-FUNDS-SOLD>                              12,374
<TRADING-ASSETS>                                   0
<INVESTMENTS-HELD-FOR-SALE>                   29,758
<INVESTMENTS-CARRYING>                         3,504
<INVESTMENTS-MARKET>                           3,621
<LOANS>                                      148,384
<ALLOWANCE>                                    1,355
<TOTAL-ASSETS>                               210,981
<DEPOSITS>                                   184,587
<SHORT-TERM>                                       0
<LIABILITIES-OTHER>                            1,227
<LONG-TERM>                                    2,320
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                       2,734
<OTHER-SE>                                    20,113
<TOTAL-LIABILITIES-AND-EQUITY>               210,981
<INTEREST-LOAN>                               13,145
<INTEREST-INVEST>                              2,123
<INTEREST-OTHER>                                 505
<INTEREST-TOTAL>                              15,772
<INTEREST-DEPOSIT>                             7,692
<INTEREST-EXPENSE>                             7,745
<INTEREST-INCOME-NET>                          8,027
<LOAN-LOSSES>                                    355
<SECURITIES-GAINS>                                (2)
<EXPENSE-OTHER>                                5,377
<INCOME-PRETAX>                                3,030
<INCOME-PRE-EXTRAORDINARY>                     2,012
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                   2,012
<EPS-PRIMARY>                                   4.01
<EPS-DILUTED>                                   4.01
<YIELD-ACTUAL>                                  4.34
<LOANS-NON>                                       39
<LOANS-PAST>                                   1,522
<LOANS-TROUBLED>                                   0
<LOANS-PROBLEM>                                    0
<ALLOWANCE-OPEN>                               1,369
<CHARGE-OFFS>                                    477
<RECOVERIES>                                     108
<ALLOWANCE-CLOSE>                              1,355
<ALLOWANCE-DOMESTIC>                           1,355
<ALLOWANCE-FOREIGN>                                0
<ALLOWANCE-UNALLOCATED>                            0
        

</TABLE>