Highlands Bankshares 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 14, 2014
DocumentDocumentAndEntityInformationAbstract	'	'
Entity Registrant Name	'HIGHLANDS BANKSHARES INC /VA/	'
Entity Central Index Key	'0001008579	'
Document Period End Date	30-Sep-14	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	7,851,780
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and due from banks	$16,602	$16,965
Federal funds sold	45,520	67,030
Total Cash and Cash Equivalents	62,122	83,995
Investment securities available for sale (amortized cost $83,687 at September 30, 2014, $56,582 at December 31, 2013)	83,239	55,318
Other investments, at cost	6,757	4,710
Loans, net of allowance for loan losses of $5,529 at September 30, 2014, $6,825 at December 31, 2013	399,055	396,961
Premises and equipment, net	20,327	20,188
Deferred Tax Assets	11,150	10,444
Interest receivable	2,320	2,171
Bank owned life Insurance	14,085	14,132
Other real estate owned	6,720	7,834
Other assets	3,829	2,559
Total Assets	609,604	598,312
Deposits:	'	'
Non-interest bearing	115,127	107,328
Interest bearing	372,822	380,946
Total Deposits	487,949	488,274
Interest, taxes and other liabilities	1,298	2,595
Other short-term borrowings	20,050	23,500
Long-term debt	47,764	47,802
Capital securities	0	3,150
Total Other Liabilities	69,112	77,047
Total Liabilities	557,061	565,321
STOCKHOLDERS' EQUITY	'	'
Common stock (7,843 at September 30, 2014 and 5,011 at December 31, 2013 shares issued and outstanding)	4,902	3,132
Preferred stock (2,048 shares issued and outstanding)	4,096	0
Additional paid-in capital	18,998	7,783
Retained earnings	24,843	22,910
Accumulated other comprehensive loss	-296	-834
Total Stockholders' Equity	52,543	32,991
Total Liabilities and Stockholders' Equity	$609,604	$598,312

Consolidated_Balance_Sheets_Un1

Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
ASSETS	'	'
Investment securities available for sale, amortization cost	$83,687	$56,582
Loans, allowance for loan losses	$5,529	$6,825
STOCKHOLDERS' EQUITY	'	'
Common stock, shares issued (in shares)	7,843	5,011
Common stock, shares outstanding (in shares)	7,843	5,011
Preferred stock shares issued	2,048	0
Preferred stock shares outstanding	2,048	0

Consolidated_Statements_of_Inc

Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
INTEREST INCOME	'	'	'	'
Loans receivable and fees on loans	$5,458	$5,384	$16,045	$16,186
Securities available for sale:	'	'	'	'
Taxable	277	173	691	534
Exempt from taxable income	124	138	371	418
Other investment income	50	31	151	122
Federal funds sold	32	35	110	110
Total Interest Income	5,941	5,761	17,368	17,370
INTEREST EXPENSE	'	'	'	'
Deposits	630	726	1,933	2,255
Other borrowed funds	621	727	2,077	2,178
Total Interest Expense	1,251	1,453	4,010	4,433
Net Interest Income	4,690	4,308	13,358	12,937
Provision for Loan Losses	352	552	1,248	1,120
Net Interest Income after Provision for Loan Losses	4,338	3,756	12,110	11,817
NON-INTEREST INCOME	'	'	'	'
Securities gains losses, net	0	0	0	-4
Service charges on deposit accounts	485	533	1,431	1,545
Other service charges, commissions and fees	396	446	1,248	1,248
Other operating income	203	159	564	533
Total Non-Interest Income	1,084	1,138	3,243	3,322
NON-INTEREST EXPENSE	'	'	'	'
Salaries and employee benefits	2,451	2,398	7,424	7,140
Occupancy expense of bank premises	202	301	778	902
Furniture and equipment expense	290	295	862	910
Other operating expense	1,444	1,378	4,105	4,034
Foreclosed Assets - Write-down and Operating Expenses	462	1,632	1,234	2,381
Total Non-Interest Expense	4,849	6,004	14,403	15,367
Income (Loss) Before Income Taxes	573	-1,110	950	-228
Income Tax Expense (Benefit)	47	-452	-983	-2,314
Net Income	$526	($658)	$1,933	$2,086
Basic Earnings Per Common Share - Weighted Average	$0.07	($0.13)	$0.29	$0.42
Earnings Per Common Share - Assuming Dilution	$0.05	($0.13)	$0.22	$0.42

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statements Of Comprehensive Income	'	'	'	'
Net Income	$526	($658)	$1,933	$2,086
Other Comprehensive Income	'	'	'	'
Unrealized gains (losses) on securities during the period	-201	-156	815	-1,537
Less: reclassification adjustment for losses included in net income	0	0	0	4
Other Comprehensive Income (Loss), before tax	-201	-156	815	-1,533
Income tax expense (benefit) related to other comprehensive income	-68	-53	277	-519
Other Comprehensive Income (Loss)	-133	-103	538	-1,014
Comprehensive Income	$393	($761)	$2,471	$1,072

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net Income	$1,933	$2,086
Adjustments to reconcile net income to net cash provided by operating activities	'	'
Provision for loan losses	1,248	1,120
Depreciation and amortization	653	676
Net realized (gains) losses on available for sale securities	0	4
Net amortization on securities	475	586
Amortization of Capital issue costs	18	4
(Increase) decrease in interest receivable	-149	2
Valuation adjustment of other real estate owned	386	1,645
Valuation adjustment of deferred tax assets	-1,000	-2,000
Increase in other assets	-1,270	-213
Increase in interest, taxes and other liabilities	-1,210	380
Net cash provided by operating activities	1,084	4,290
Securities available for sale:	'	'
Proceeds from sale of securities	0	1,321
Proceeds from maturities of debt and equity securities	6,597	8,366
Purchase of debt and equity securities	-34,177	-11,765
Purchases of other investments	-2,047	220
Net increase in loans	-6,185	-14,769
Proceeds from sales of other real estate owned	3,141	5,514
Proceeds from Cash Surrender Value of Life Insurance	360	0
Premises and equipment expenditures	-763	-848
Net cash used in investing activities	-33,074	-11,961
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Issuance of Common Stock	9,912	0
Issuance of Preferred Stock	7,168	0
Net decrease in time deposits	-11,110	-16,696
Net increase in demand, savings and other deposits	10,785	19,522
Increase (decrease) in short-term borrowings	-3,450	3,355
Decrease in long-term debt	-38	-3,483
Redemption of Capital Securites	-3,150	0
Net cash provided by financing activities	10,117	2,698
Net decrease in cash and cash equivalents	-21,873	-4,973
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	83,995	81,208
CASH AND CASH EQUIVALENTS AT END OF PERIOD	62,122	76,235
Cash paid during the year for:	'	'
Interest	5,221	4,303
SUPPLEMENTAL DISCLOSURES OF NONCASH TRANSACTIONS	'	'
Transfer of loans to other real estate owned	2,843	3,572
Loans originated from sales of other real estate owned	$561	$1,751

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Stockholdersb Equity (USD $)	Common Stock	Preferred Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income / Loss	Total
In Thousands, except Share data
Balance at Dec. 31, 2012	$3,132	'	$7,783	$21,428	($1,871)	$30,472
Balance, Shares at Dec. 31, 2012	5,011	'	'	'	'	'
Net loss	'	'	'	2,086	'	2,086
Other comprehensive income (loss)	'	'	'	'	-1,014	-1,014
Balance at Sep. 30, 2013	3,132	'	7,783	23,514	-2,885	31,544
Balance, Shares at Sep. 30, 2013	5,011	'	'	'	'	'
Balance at Jun. 30, 2013	3,132	'	7,783	24,172	-2,782	32,305
Balance, Shares at Jun. 30, 2013	5,011	'	'	'	'	'
Net loss	'	'	'	-658	'	-658
Other comprehensive income (loss)	'	'	'	'	-103	-103
Balance at Sep. 30, 2013	3,132	'	7,783	23,514	-2,885	31,544
Balance, Shares at Sep. 30, 2013	5,011	'	'	'	'	'
Balance at Dec. 31, 2013	3,132	'	7,783	22,910	-834	32,991
Balance, Shares at Dec. 31, 2013	5,011	'	'	'	'	'
Common Stock Issuance	1,770	'	8,142	'	'	9,912
Common Stock Issuance, Shares	2,832	'	'	'	'	'
Preferred Stock Issuance	'	4,096	3,073	'	'	7,169
Preferred Stock Issuance, Shares	'	2,048	'	'	'	'
Net loss	'	'	'	1,933	'	1,933
Other comprehensive income (loss)	'	'	'	'	538	538
Balance at Sep. 30, 2014	4,902	4,096	18,998	24,843	-296	52,543
Balance, Shares at Sep. 30, 2014	7,843	2,048	'	'	'	'
Balance at Jun. 30, 2014	4,803	4,096	18,541	24,317	-163	51,594
Balance, Shares at Jun. 30, 2014	7,684	2,048	'	'	'	'
Common Stock Issuance	99	'	457	'	'	556
Common Stock Issuance, Shares	159	'	'	'	'	'
Net loss	'	'	'	526	'	526
Other comprehensive income (loss)	'	'	'	'	-133	-133
Balance at Sep. 30, 2014	$4,902	'	$18,998	$24,843	($296)	$52,543
Balance, Shares at Sep. 30, 2014	7,843	'	'	'	'	'

1_General

1. General	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
General	'
	The consolidated financial statements of Highlands Bankshares, Inc. (the “Company”) include its wholly-owned subsidiary, Highlands Union Bank (the “Bank”). The statements also include Highlands Union Insurance Services, Inc., Highlands Union Financial Services, Inc., and Blue Ridge Hospitality, LLC, which are wholly owned subsidiaries of the Bank. Blue Ridge Hospitality, LLC, was formed in June 2014 to hold and manage certain properties acquired by the Bank through foreclosure or deed in lieu of foreclosure. The consolidated financial statements of Highlands Bankshares, Inc. (the “Company”) conform to United States generally accepted accounting principles and to banking industry practices. The accompanying consolidated interim financial statements are unaudited. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included. All such adjustments are of a normal and recurring nature. The consolidated balance sheet as of December 31, 2013 has been extracted from the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (the “2013 Form 10-K”). The notes included herein should be read in conjunction with the notes to consolidated financial statements included in the 2013 Form 10-K. The results of operations for the three month and nine month periods ended September 30, 2014 are not necessarily indicative of the results to be expected for the full year.
	The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

2_Loans_and_Allowance_for_Loan

2. Loans and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Loans and Allowance for Loan Losses	'
	The composition of net loans is as follows:
		30-Sep-14		31-Dec-13
	Real Estate Secured:
	Residential 1-4 family	$184,300		$   175,860
	Multifamily	21,233		20,592
	Construction and Land Loans	18,618		18,509
	Commercial Real Estate, Owner Occupied	70,845		71,459
	Commercial Real Estate, Non-owner occupied	31,726		37,117
	Second mortgages	7,574		7,934
	Equity lines of credit	7,020		7,884
	Farmland	8,756		9,322
		350,072		348,677
	Secured (other) and unsecured
	Personal	20,352		20,472
	Commercial	31,473		31,575
	Agricultural	3,085		3,376
		54,910		55,423
	Overdrafts	242		304
		405,224		404,404
	Less:
	Allowance for loan losses	5,529		6,825
	Net deferred fees	640		618
		6,169		7,443
	Loans, net	$399,055		$    396,961
	The following table is an analysis of past due loans as of September 30, 2014:
			30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables	Recorded Investment > 90 Days and Accruing
	Real Estate Secured
	Residential 1-4 family		$2,775		$    1,997		$  2,730		$  7,502		$  176,798		$  184,300	$         -
	Equity lines of credit		16		50		240		306		6,714		7,020	-
	Multifamily		-		-		-		-		21,233		21,233	-
	Farmland		399		179		129		707		8,049		8,756	-
	Construction, Land Development, Other Land Loans		197		36		161		394		18,224		18,618	-
	Commercial Real Estate- Owner Occupied		845		2		2,702		3,549		67,296		70,845	-
	Commercial Real Estate- Non Owner Occupied		4		-		1,547		1,551		30,175		31,726	-
	Second Mortgages		90		51		145		286		7,288		7,574	-
	Non Real Estate Secured
	Personal		487		80		216		783		19,811		20,594	-
	Commercial		580		511		206		1,297		30,176		31,473	-
	Agricultural		9		84		492		585		2,500		3,085	-
	Total		$  5,402		$    2,990		$   8,568		$  16,960		$  388,264		$  405,224	$          -
	The following table is an analysis of past due loans as of December 31, 2013:
			30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables	Recorded Investment > 90 Days and Accruing
	Real Estate Secured
	Residential 1-4 family		$    3,219		$    1,805		$    2,699		$    7,723		$  168,137		$  175,860	$          -
	Equity lines of credit		-		-		318		318		7,566		7,884	-
	Multifamily		-		97		-		97		20,495		20,592	-
	Farmland		38		-		129		167		9,155		9,322	-
	Construction,  Land Development, Other Land Loans		303		117		1,615		2,035		16,474		18,509	-
	Commercial Real Estate- Owner Occupied		665		26		1,610		2,301		69,158		71,459	-
	Commercial Real Estate- Non Owner Occupied		234		2,257		637		3,128		33,989		37,117	-
	Second Mortgages		341		3		56		400		7,534		7,934	-
	Non Real Estate Secured
	Personal		357		177		146		680		20,096		20,776	2
	Commercial		1,344		121		266		1,731		29,844		31,575	-
	Agricultural		29		-		-		29		3,347		3,376	-
	Total		$    6,530		$    4,603		$   7,476		$   18,609		$  385,795		$  404,404	$          2
	Loans are considered delinquent when payments have not been made according to the terms of the contract. The accrual of interest on loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.
	The following is a summary of non-accrual loans at September 30, 2014 and December 31, 2013:
		30-Sep-14		31-Dec-13
	Real Estate Secured
	Residential 1-4 Family	$           4,201		$       2,890
	Multifamily	-		-
	Construction and Land Loans	1,922		1,694
Commercial-Owner Occupied	5,617		3,005
Commercial- Non Owner Occupied	1,547		2,429
Second Mortgages	145		92
Equity Lines of Credit	240		318
Farmland	129		146
Secured (other) and Unsecured
Personal	215		144
Commercial	206		266
Agricultural	493		-
Total	$14,715		$     10,984
The September 30, 2014 total includes approximately $6.14 million of loans that are paying under the terms of their existing loan agreement but included in non-accrual per regulatory guidance.
The following tables represent a summary of credit quality indicators of the Company’s loan portfolio at September 30, 2014 and December 31, 2013. The grades are assigned and/or modified by the Company’s credit review and credit analysis departments based on the creditworthiness of the borrower and the overall strength of the loan.
Credit Risk Profile by Internally Assigned Grade as of September 30, 2014
Grade (1)		Residential 1-4 Family		Multifamily		Farmland		Construction, Land Loans		Commercial Real Estate- Owner Occupied		Commercial Real Estate Non-Owner Occupied
Quality		30,632		6		476		3,147		3,882		800
Satisfactory		98,771		16,549		1,884		7,588		32,417		14,446
Acceptable		41,489		2,589		4,969		5,481		19,916		12,224
Special Mention		3,319		837		467		488		3,185		2,339
Substandard		10,089		1,252		960		1,914		11,445		1,917
Doubtful		-				-		-		-		-
Total		$   184,300		$     21,233		$     8,756		$        18,618		$     70,845		$     31,726
Credit Risk Profile by Internally Assigned Grade as of December 31, 2013
Grade (1)		Residential 1-4 Family		Multifamily		Farmland		Construction, Land Loans		Commercial Real Estate- Owner Occupied		Commercial Real Estate Non-Owner Occupied
Quality		33,137		-		823		3,425		5,831		1,495
Satisfactory		90,569		15,419		4,128		8,123		27,712		15,153
Acceptable		38,958		3,049		3,699		3,733		22,007		11,148
Special Mention		4,678		2,124		6		1,652		6,823		2,507
Substandard		8,518		-		666		1,576		8,620		6,814
Doubtful		-		-		-		-		466		-
Total		$   175,860		$     20,592		$     9,322		$        18,509		$     71,459		$      37,117
(1) Quality--This grade is reserved for the Bank’s top quality loans. These loans have excellent sources of repayment, with no significant identifiable risk of collection.  Generally, loans assigned this rating will demonstrate the following characteristics:
Conformity in all respects with Bank policy, guidelines, underwriting standards, and Federal and State regulations (no exceptions of any kind).
Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources.
Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor.
For existing loans, all of the requirements above apply plus all payments have been made as agreed, current financial information on all borrowers and guarantors has been obtained and analyzed, and overall business operating trends are either stable or improving.
Satisfactory-This grade is given to performing loans. These loans have adequate sources of repayment, with little identifiable risk of collection. Loans assigned this rating will demonstrate the following characteristics:
General conformity to the Bank's policy requirements, product guidelines and underwriting standards.  Any exceptions that are identified during the underwriting and approval process have been adequately mitigated by other factors.
Documented historical cash flow that meets or exceeds required minimum Bank guidelines, or that can be supplemented with verifiable cash flow from other sources.
Adequate secondary sources to liquidate the debt, including combinations of liquidity, liquidation of collateral, or liquidation value to the net worth of the borrower or guarantor
For existing loans, all of the requirements outlined above will apply, plus all payments have been made as agreed, current financial information on all borrowers and guarantors has been obtained and analyzed, and overall business operating trends are stable with any declines considered minor and temporary.
Acceptable-This grade is given to loans that show signs of weakness in either adequate sources of repayment or collateral, but have demonstrated mitigating factors that minimize the risk of delinquency or loss.  Loans assigned this rating may demonstrate some or all of the following characteristics:
Additional exceptions to the Bank's policy requirements, product guidelines or underwriting standards that present a higher degree of risk to the Bank.  Although the combination and/or severity of identified exceptions is greater, all exceptions have been properly mitigated by other factors.
Unproved, insufficient or marginal primary sources of repayment that appear sufficient to service the debt at this time.  Repayment weaknesses may be due to minor operational issues, financial trends, or reliance on projected (not historic) performance.
Marginal or unproven secondary sources to liquidate the debt, including combinations of liquidation of collateral and liquidation value to the net worth of the borrower or guarantor.
For existing loans, payments have generally been made as agreed with only minor and isolated delinquencies.
Special Mention -This grade is given to Watch List loans that include the following characteristics:
Loans with underwriting guideline tolerances and/or exceptions with no identifiable mitigating factors.
Extending loans that are currently performing satisfactorily but with potential weaknesses that may, if not corrected, weaken the asset or inadequately protect the Bank's position at some future date. Potential weaknesses are the result of deviations from prudent lending practices.
Loans where adverse economic conditions that develop subsequent to the loan origination do not jeopardize liquidation of the debt, but do substantially increase the level of risk may also warrant this rating.
Substandard-Loans in this category are characterized by deterioration in quality exhibited by any number of well-defined weaknesses requiring corrective action. A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
The weaknesses may include, but are not limited to:
	·	High debt to worth ratios and or declining or negative earnings trends
	·	Declining or inadequate liquidity
	·	Improper loan structure or questionable repayment sources
	·	Lack of well-defined secondary repayment source, and
	·	Unfavorable competitive comparisons.
Such loans are no longer considered to be adequately protected due to the borrower's declining net worth, lack of earnings capacity, declining collateral margins and/or unperfected collateral positions. A possibility of loss of a portion of the loan balance cannot be ruled out. The repayment ability of the borrower is marginal or weak and the loan may have exhibited excessive overdue status or extensions and/or renewals.
Doubtful -Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. The ability of the borrower to service the debt is extremely weak, overdue status is constant, the debt has been placed on non-accrual status, and no definite repayment schedule exists.
However, these loans are not yet rated as loss because certain events may occur which would salvage the debt. Among these events are:
	·	Injection of capital;
	·	Alternative financing; and/or,
	·	Liquidation of assets or the pledging of additional collateral.
Credit Risk Profile based on payment activity as of September 30, 2014
		Consumer - Non Real Estate		Equity Line of Credit / Second Mortgages		Commercial - Non Real Estate		Agricultural - Non Real Estate
Performing		$       20,378		$          14,209		$               31,267		$            2,593
Nonperforming (>90 days past due)		216		385		206		492
Total		$       20,594		$        14,594		$              31,473		$           3,085
Credit Risk Profile based on payment activity as of December 31, 2013
		Consumer - Non Real Estate		Equity Line of Credit / Second Mortgages		Commercial - Non Real Estate		Agricultural - Non Real Estate
Performing		$       20,630		$          15,444		$               31,309		$            3,376
Nonperforming (>90 days past due)		146		374		266		-
Total		$       20,776		$         15,818		$              31,575		$           3,376
The following tables reflect the Bank’s impaired loans at September 30, 2014:
September 30, 2014		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With No Related Allowance
Real Estate Secured
Residential 1-4 family		$     7,190		$     7,190		$          -		$     6,616		$       146
Equity lines of credit		301		379		-		332		4
Multifamily		1,252		1,252		-		626		48
Farmland		971		971		-		727		37
Construction, Land Development, Other Land Loans		1,726		1,726		-		1,710		32
Commercial Real Estate- Owner Occupied		9,561		9,765		-		7,477		196
Commercial Real Estate- Non Owner Occupied		-		-		-		3,227		-
Second Mortgages		204		204		-		133		5
Non Real Estate Secured
Personal /Consumer		65		65		-		59		2
Commercial		373		373		-		234		17
Agricultural		492		547		-		246		-
Total		$    22,135		$    22,472		$          -		$   21,387		$       487
September 30, 2014		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With an Allowance Recorded
Real Estate Secured
Residential 1-4 family		$     3,377		$     3,377		$       686		$     3,201		$       95
Equity lines of credit		-		-		-		19		-
Multifamily		-		-		-		-		-
Farmland		-		-		-		100		-
Construction, Land Development, Other Land Loans		366		366		20		183		6
Commercial Real Estate- Owner Occupied		1,902		1,902		273		2,715		51
Commercial Real Estate- Non Owner Occupied		1,918		1,918		323		3,249		27
Second Mortgages		-		-		-		28		-
Non Real Estate Secured
Personal /Consumer		229		229		158		181		5
Commercial		658		658		414		791		24
Agricultural		8		8		8		94		-
Total		$    8,458		$    8,458		$     1,882		$    10,561		$       208
The following tables reflect the Bank’s impaired loans at December 31, 2013:
December 31, 2013		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With no Related Allowance
Real Estate Secured
Residential 1-4 family		$     6,042		$     6,042		$          -		$     6,300		$       198
Equity lines of credit		364		364		-		182		6
Multifamily		-		-		-		-		-
Farmland		483		483		-		391		11
Construction, Land Development, Other Land Loans		1,694		1,694		-		1,677		1
Commercial Real Estate- Owner Occupied		5,393		5,393		-		5,201		173
Commercial Real Estate- Non Owner Occupied		6,454		6,454		-		4,943		250
Second Mortgages		62		62		-		191		3
Non Real Estate Secured
Personal		53		53		-		31		3
Commercial		96		96		-		82		5
Agricultural		-		-		-		10		-
Total		$    20,641		$    20,641		$          -		$   19,008		$       650
December 31, 2013		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
With an Allowance Recorded
Real Estate Secured
Residential 1-4 family		$     3,026		$     3,026		$       394		$     3,756		$       145
Equity lines of credit		38		38		38		19		1
Multifamily		-		-		-		202		-
Farmland		200		200		25		201		8
Construction, Land Development, Other Land Loans		-		-		-		-		-
Commercial Real Estate- Owner Occupied		3,528		3,528		630		3,113		72
Commercial Real Estate- Non Owner Occupied		4,581		4,581		1,230		3,788		93
Second Mortgages		56		56		45		28		1
Non Real Estate Secured
Personal		133		133		84		77		6
Commercial		924		924		695		791		34
Agricultural		181		181		56		448		4
Total		$    12,667		$    12,667		$     3,197		$    12,423		$       364
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by loan category and is segregated by impairment evaluation method as of September 30, 2014 and September 30, 2013.
Nine  months ended Sept. 30, 2014	Residential 1-4 Family	Multifamily	Construction and Land Loans	Commercial  R./E Owner Occupied	Commercial R/E Non-Owner Occupied	Second Mortgages	Equity Line of Credit	Farmland	Personal and  Overdrafts	Commercial and Agricultural	Unallocated	Total
Allowance for Credit Losses:
Beginning Balance December 31,  2013	$  975	$   143	$   230	$  1,029	$   1,415	$   153	$   50	$   65	$   483	$   1,264	$   1,018	$   6,825
Provision for Credit Losses	353	-102	-103	-218	982	-52	125	-51	599	23	-308	1,248
Charge-offs	188	-	18	345	1,239	25	100	-	471	387	-	2,773
Recoveries	-1	-	-6	-132	-	-	-	-	-54	-36	-	-229
Net Charge-offs	187	-	12	213	1,239	25	100	-	417	351	-	2,544
Ending Balance Sept. 30, 2014	1,141	41	115	598	1,158	76	75	14	665	936	710	5,529
Ending Balance: Individually evaluated for impairment	686	-	20	273	323	-	-	-	158	422	-	1,882
Ending Balance:  Collectively Evaluated for Impairment	455	41	95	325	835	76	75	14	507	514	710	3,647
Loans:
Ending Balance: Individually Evaluated for Impairment	10,567	1,252	2,092	11,463	1,918	204	301	971	294	1,531	-	30,593
Ending Balance: Collectively Evaluated for Impairment	173,733	19,981	16,526	59,382	29,808	7,370	6,719	7,785	20,300	33,027	-	374,631
Ending Balance: Sept.  30, 2014	$184,300	$21,233	$18,618	$70,845	$31,726	$7,574	$7,020	$8,756	$20,594	$34,558	-	$405,224
Nine  months ended September  30, 2013	Residential 1-4 Family	Multifamily	Construction and Land Loans	Commercial Owner Occupied	Commercial Non-Owner Occupied	Second Mortgages	Equity Line of Credit	Farmland	Personal and  Overdrafts	Commercial and Agricultural	Unallocated	Total
Allowance for Credit Losses:
Beginning Balance December 31,  2012	$   1,242	$   280	$   823	$   1,039	$   1,075	$   161	$   30	$    97	$   486	$1,530	$  686	7,449
Provision for Credit Losses	329	-102	-404	161	376	150	1	17	348	-275	519	1,120
Charge-offs	333	-	127	408	52	134	3	41	331	193	-	1,622
Recoveries	6	-	3	-	-	-	-	-	39	30	-	78
Net Charge-offs	327	-	124	408	52	134	3	41	292	163	-	1,544
Ending Balance September 30, 2013	1,244	178	295	792	1,399	177	28	73	542	1,092	1,205	7,025
Ending Balance: Individually evaluated for impairment	615	-	-	339	1,185	38	13	9	116	637	-	2,952
Ending Balance:  Collectively Evaluated for Impairment	629	178	295	453	214	139	15	64	426	455	1,205	4,073
Loans:
Ending Balance: Individually Evaluated for Impairment	10,357	-	1,625	8,921	12,114	261	234	432	239	2,015	-	36,198
Ending Balance: Collectively Evaluated for Impairment	164,614	19,768	15,995	58,758	25,215	7,939	7,933	10,296	21,608	32,403	-	364,529
Ending Balance: September  30, 2013	$174,971	$19,768	$17,620	$67,679	$37,329	$8,200	$8,167	$10,728	$21,847	$34,418	-	$400,727
A loan is considered impaired and an allowance for loan losses is established on loans for which it is probable that the full collection of principal and interest is in doubt. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value based on recent appraisal and /or tax assessment value, liquidation value and/or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2014 and December 31, 2013, all of the total impaired loans were evaluated based on the fair value of the collateral. On a quarterly basis, the ALLL methodology begins with the determination of individually impaired loans. All loans that are rated “7” (Doubtful) are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated “6” (Substandard) or are expected to be downgraded to “6”, require additional analysis to determine whether they may be impaired. All loans that are rated “5” (Special Mention) are presumed not to be impaired. However, “5” rated loans with the following characteristics warrant further analysis before completing an assessment of impairment:
	•	A loan is 60 days or more delinquent on scheduled principal or interest;
	•	A loan is presently in an unapproved over advanced position;
	•	A loan is newly modified; or
	•	A loan is expected to be modified.
The Company’s credit administration personnel and senior financial officers are responsible for tracking, coding, and monitoring loans that become Troubled Debt Restructurings (“TDRs”). Concessions are made to existing borrowers in the form of modified interest rates and / or payment terms. The loans are segregated for regulatory and external reporting. Each specific TDR is reviewed to determine if the accrual of interest should be discontinued and also reviewed for impairment. The Company’s senior credit administration officer performs this analysis on a quarterly basis in addition to determining any other loans that are impaired within the loan portfolio. The Company had a total of $12,161 and $17,810 of loans categorized as troubled debt restructurings as of September 30, 2014 and December 31, 2013, respectively. Interest is accrued on TDRs if the loan is otherwise not impaired and the full collection of principal and interest under the modified terms is still deemed probable.
In the determination of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings by adjusting the loan grades of such loans. Defaults resulting in charge-offs affect the historical loss experience ratios which are a component of the allowance calculation. Additionally, specific reserves may be established on restructured loans evaluated individually.
The following tables summarize the troubled debt restructurings during the nine months ended September 30, 2014 and 2013.
Troubled Debt Restructurings –Nine months ended September 30, 2014 Interest only	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily	1	1,252	1,252
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied	1	1,395	1,395
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	2	2,647	2,647
Troubled Debt Restructurings Below Market Rate	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	1	879	879
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied	1	707	707
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	2	1,586	1,586
Troubled Debt Restructurings Loan term extension	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	6	1,217	1,217
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied	1	2,114	2,114
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Business Commercial
Agricultural	1	129	129
Total	8	3,460	3,460
	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Total Restructurings	12	7,693	7,693
Troubled Debt Restructurings That subsequently defaulted	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	-	-	-
Troubled Debt Restructurings Below Market Rate	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	2	1,264	1,264
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied	5	8,687	8,687
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	7	9,951	9,951
Troubled Debt Restructurings – Nine months ended September 30, 2013   Interest only	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied	1	1,395	1,395
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	1	1,395	1,395
Troubled Debt Restructurings Loan term extension	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	3	500	500
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans	1	55	55
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied
Second Mortgages	1	36	36
Non Real Estate Secured
Personal / Consumer
Commercial	1	71	71
Agricultural	3	755	755
Total	9	1,417	1,417
Troubled Debt Restructurings All	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Total Restructurings	17	12,763	12,763
Troubled Debt Restructurings That subsequently defaulted	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	-	-	-
The loan review function performs various tasks that are utilized to discover weaknesses within the loan portfolio. These include annual reviews on loan relationships that are greater than $500. The relationship review includes a discussion on the collateral, repayment history, guarantor(s) financial position, and debt service coverage on an individual and global level. These reviews are based primarily upon federal tax returns for cash flow determination, internally prepared interim statements and personal financial statements. Debt service coverage (DSC) is calculated on each individual customer, or guarantor, as well as the aggregate or global DSC. The DSC is discounted to determine a “stressed” DSC. Collateral evaluation includes an inspection of the collateral file to determine if the Bank is indeed properly securitized. Collateral is discounted, when appropriate, to determine a “stressed” loan to value ratio. In addition to annual loan relationship reviews, quarterly reviews on all loan relationships over $100 that are graded Substandard, Doubtful and Loss are also completed. This quarterly review process is comprised of a shortened version of the full relationship review. These quarterly reviews include a discussion on personal credit management, DSC and LTV. In addition to these quarterly reviews of non-pass watch list relationships, a semi-annual review is conducted on all Special Mention loan relationships that are on the watch list. These reviews are prepared in the same manner as the quarterly non-pass relationship reviews. The appropriateness of the risk rating of each relationship is assessed, with changes to the risk rating being made by the Senior Credit Review Officer, when deemed appropriate. Other measures taken to determine potential problem relationships include the monthly preparation of the watch list. During that process, past due loan reports are reviewed, as well as any other information that might be presented by loan officers, regarding a particular loan relationship that is exhibiting stress. To be considered as a watch list relationship, distinct characteristics must be exhibited. These include, but are not limited to late payments greater than 60 days, a low DSC calculation, bankruptcy filings, casualty losses, or other issues that would cause a perceived increase in the risk of loss to the Company. The final segment of the loan review process involves special reviews. These reviews target specific segments of the loan portfolio, i.e. credit cards, equity lines, consumer loans, construction loans, and other specific segments of the loan portfolio that management wishes to have reviewed. However, currently, the primary emphasis of the loan review function is loan relationship review work, and watch list management.
The segments of the Company’s loan portfolio are disaggregated to a level that allows management to monitor risk and performance. In reviewing risk, management has determined there to be several different risk categories within the loan portfolio. The allowance for loan losses consists of amounts applicable to: (i) the commercial loan portfolio; (ii) the commercial real estate loan portfolio; (iii) the construction loan portfolio; (iv) the consumer loan portfolio; and, (v) the residential loan portfolio. The commercial real estate (“CRE”) loan segment is further disaggregated into two classes. Non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, generally have a greater risk profile than all other CRE loans, which include multifamily structures and owner-occupied commercial structures. The construction loan segment is further disaggregated into two classes. One-to-four family residential construction loans are generally made to individuals for the acquisition of and/or construction on a lot or lots on which a residential dwelling is to be built. Commercial construction loans are generally made to developers or investors for the purpose of acquiring, developing and constructing residential or commercial structures. Construction lending is generally considered to involve a higher degree of credit risk than long-term permanent financing.
The following describes the Company’s basic methodology for computing its ALLL.
On a quarterly basis, the ALLL methodology begins with the identification of loans subject to ASC 310. All loans that are rated “7” (Doubtful) are assessed as impaired based on the expectation that the full collection of principal and interest is in doubt. All loans that are rated “6” (Substandard) or are expected to be downgraded to “6”, require additional analysis to determine whether they may be impaired under ASC 310. All loans that are rated “5” (Special Mention) are presumed not to be impaired. However, “5” rated loans, together with any Troubled Debt Restructured (TDR) loan, may warrant further analysis before completing an assessment of impairment.
For ASC 310 loans that are individually evaluated and found to be impaired (primarily those designated as Substandard and Doubtful), the associated ALLL will be based upon one of the three impairment measurement methods specified within ASC 310:
	-1	Present value of expected future cash flows discounted at the loan’s effective interest rate;
	-2	Loan’s observable market price; or
	-3	Fair value of the collateral.
To determine the amount of loan loss exposure for the impaired ASC 310 loans, the value of collateral for secured loans is evaluated to determine the current value and potential exposure. The collateral value is adjusted for its age and condition, and, for real estate, adjusted for condition, location, and age of the most current appraisal. If the adjusted value of the collateral is less than the current principal balance, the difference is designated as direct exposure for loan loss calculations. The total balance of unsecured loans is considered as direct exposure.
ASC 450 Loan Loss:
For all other loans, including individual loans determined not to be impaired under ASC 310, the associated ALLL is calculated in accordance with ASC 450 that provides for estimated credit losses likely to be realized on groups of loans with similar risk characteristics. The Company uses standard call report categories to segregate loans into groups with similar risk characteristics. Estimated credit losses reflect significant factors that affect the collectability of the portfolio as of the evaluation date. Key factors that influence risk within the Company’s loan portfolio are divided into three major categories:
(1) Historical Loss Factor: To calculate the anticipated loan loss in each call report category for ASC 450 loans, the Company begins with the net loss in each category for each of the last twelve quarters. The Company uses a rolling twelve quarter weighted historical loss average where the most recent quarters are weighted heavier than the earlier quarters so that the calculation reflects current risk trends within the portfolio. The weighting used by the Company is similar to the Rule of 78’s with the net losses of the most recent quarter weighted at 12/78ths and those in the first quarter in the twelve quarter period weighted at 1/78th. Therefore, the net losses of the most recent year represent approximately 54% of the calculation compared with 33% if a simple average of losses over the three-year period was used. The total of weighted factors for each call report category is applied to the current outstanding loan balance in each category to calculate expected loss based on historical data for a group of loans with similar risk characteristics. The same weighting is applied to all loan types.
(2)External economic factors: Economic conditions have a significant impact on Company’s loan portfolio because deteriorating conditions can adversely impact both collateral values and the customer’s ability to service debt. Management has selected the following external factors as indicators of economic conditions:
	a.	National GDP Growth Rate
	b.	Local Unemployment Rates
	c.	The Prime Rate
The values for external factors are updated on a quarterly basis based on current economic data.
(3)Internal process factors: Internal factors that influence loss rates as a result of risk management and control practices include the following:
	d.	Past-Due Loans
	e.	Non-Accrual Loans
	f.	CRE Concentrations
	g.	Loan Volume Level
	h.	Level and Trend of Classified Loans
The values for internal factors are updated on a quarterly basis based on current portfolio metrics.
Once the quarterly ALLL is computed, the calculations are reviewed by the Company’s credit administration committee which is comprised of the CEO, CFO, and Senior Lending Officers, including Credit Review personnel. The Company’s controller also performs a detailed review of the computations, estimates, etc. included in the ALLL calculation. The ALLL is then reviewed and approved by the Board of Directors.

3_Income_Taxes

3. Income Taxes	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Income Taxes	'
	Income tax expense (benefit) for the nine months ended September 30 is different than the amount computed by applying the statutory corporate federal income tax rate of 34% to income before taxes. The reasons for these differences are as follows:
		2014	2013
	Tax expense at statutory rate	$     323	$     (77)
	Reduction in taxes from:
	Tax-exempt interest	-126	-142
	Valuation adjustment for deferred tax assets	-1,000	-2000
	Life Insurance Proceeds	-44
	Other, net	-136	-95
	Income tax expense	$     (983)	$     (2,314)
	In the second quarter of both 2014 and 2013, the Company reversed a portion of the valuation allowance that was established against the deferred tax assets (“DTA”) during the fourth quarter of 2011. The valuation allowance was established during 2011 due to uncertainty at the time regarding the ability to generate sufficient future taxable income to fully realize the benefit of the net DTA. Subsequent to 2011, earnings performance and asset quality have improved resulting in greater expected realization of the DTA. In addition, the Company raised $17,080 million of new capital in 2014 which has allowed the Company to payoff two high rate debt instrument (Holding Company Loan to Community Bankers Bank and Trust Preferred Securities) improving future earnings potential. As a result of these factors, the Company determined in the second quarter of 2014 to reverse $1 million of the DTA valuation allowance. At September 30, 2014 the remaining DTA valuation allowance was $1 million. In assessing the realizability of DTA, management considers whether it is more likely than not that some portion or all of the DTA will not be realized. The Company evaluates the carrying amount of its DTA on a quarterly basis in accordance with the guidance provided in FASB ASC Topic 740 (“ASC 740”), in particular, applying the criteria set forth therein to determine whether it is more likely than not (i.e., a likelihood of more than 50%) that some portion, or all, of the DTA will not be realized within its life cycle, based on the weight of available evidence. In most cases, the realization of the DTA is dependent upon the Company generating a sufficient level of taxable income in future periods, which can be difficult to predict. If the Company’s forecast of taxable income within the carry forward periods available under applicable law is not sufficient to cover the amount of net deferred assets, such assets may be impaired. Management considers the reversal of deferred tax liabilities (including the impact of available carry-back and carry-forward periods), projected future taxable income and tax-planning strategies in making this assessment.

4_Capital_Requirements

4. Capital Requirements	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Capital Requirements	'
	Regulators of the Company and the Bank have implemented risk-based capital guidelines which require compliance with certain minimum capital ratios as a percent of assets and other certain off-balance sheet items that are adjusted for predefined credit risk factors. The regulatory minimum for Tier 1 and combined Tier 1 and Tier 2 capital ratios are 4.0% and 8.0%, respectively. Tier 1 capital includes tangible equity reduced by goodwill and certain other intangibles. Tier 2 capital includes portions of the allowance for loan losses, not to exceed Tier 1 capital. In addition to the risk-based guidelines, a minimum leverage ratio (Tier 1 capital as a percentage of average total consolidated assets) of 4.0% is required. The following table presents the capital ratios for the Company and the Bank. The Company’s September 30, 2014 capital ratios include funds received from the private placement capital raise in April of 2014 and proceeds from the rights offering that was completed in September of 2014. The Bank’s September 30, 2014 capital ratios include $7,900 down-streamed to the Bank from the Company during 2014.
	September 30, 2014
	Entity	Tier 1	Total Risk Based	Leverage
	Highlands Bankshares, Inc.	12.93%	14.18%	7.79%
	Highlands Union Bank	12.61%	13.86%	7.59%
	December 31, 2013
	Entity	Tier 1	Total Risk Based	Leverage
	Highlands Bankshares, Inc.	8.55%	9.81%	5.22%
	Highlands Union Bank	9.77%	11.03%	5.98%

5_Capital_Securities

5. Capital Securities	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Capital Securities	'
	The Company completed a $7.5 million capital issue of 9.25% Preferred Securities (the “Trust Preferred Securities”) on January 23, 1998. These Trust Preferred Securities were issued by Highlands Capital Trust I, a wholly owned subsidiary of the Company.
	On July 15, 2014, the Company redeemed in full the Trust Preferred Securities and paid all the deferred interest payments with proceeds received from the April 2014 private placement capital raise that is further discussed in Note 12.

6_Per_Share_Amounts

6. Per Share Amounts	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Per Share Amounts	'
	The following table contains information regarding the Company’s computation of basic earnings per share (weighted average method) and diluted earnings per share for the nine and three months ended September 30, 2014 and 2013. Diluted earnings per share include the 2,048,179 preferred shares that were issued in the April 2014 private placement and further discussed in Note 12.
		Nine Months Ended September  30,		Three Months Ended September 30,
		2014	2013	2014	2013
	Basic Earnings per Common Share	$0.29	$         0.42	$ 0.07	$ (0.13)
	Basic Number of  Common Shares - Weighted Average	6,665,553	5,011,152	7,712,070	5,011,152
	Diluted Earnings per Share	$  0.22	$            0.42	$  0.05	$  (0.13)
	Diluted Number of Shares	8,713,732	5,011,152	9,760,249	5,011,152

7_Commitments_and_Contingencie

7. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Commitments and Contingencies	'
	The Bank is a party to various financial instruments with off-balance sheet risk arising in the normal course of business to meet the financing needs of its customers. Those financial instruments include commitments to extend credit and standby letters of credit. At September 30, 2014, these commitments included: standby letters of credit of $332; equity lines of credit of $7,802; credit card lines of credit of $6,151; commercial real estate, construction and land development commitments of $2,716; and other unused commitments to fund interest earning assets of $28,071.

8_Fair_Value

8. Fair Value	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Fair Value	'
	The Company utilizes fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Securities available-for-sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write-downs of individual assets.
	Fair Value Hierarchy
	Under ASC Topic 820 on Fair Value Measurements and Disclosures, the Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:
		Level 1		Valuation is based upon quoted prices for identical instruments traded in active markets.
		Level 2		Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
		Level 3		Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
	In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon third party models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality, the Company’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.
	Recurring - Investment Securities Available for Sale
	Securities classified as available for sale are reported at fair value utilizing Level 2. For Level 2 securities, the Company obtains fair value measurements from multiple independent third party sources. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information, and the bond’s terms and conditions, among other things.
	The following tables summarize the Company’s available for sale securities portfolio measured at fair value on a recurring basis as of September 30, 2014 and December 31, 2013, segregated by the level of the valuation inputs within the fair value hierarchy.
	30-Sep-14
		Level 1	Level 2	Level 3	Total Fair Value
	Available for Sale Securities
	State and Political Subdivisions	$          -	$  10,402	$          -	$  10,402
	Mortgage Backed Securities	$          -	$  59,165	$          -	$  59,165
	Single Issue Trust Preferred	$          -	$       889	$          -	$       889
	SBA Pools	$          -	$  12,783	$          -	$  12,783
	SLMA	$          -	$            -	$          -	$            -
	Total AFS Securities	$          -	$  83,239	$          -	$  83,239
	December 31, 2013
		Level 1	Level 2	Level 3	Total Fair Value
	Available for Sale Securities
	State and Political Subdivisions	$          -	$     9,537	$          -	$    9,537
	Mortgage Backed Securities	$          -	$   30,740	$          -	$  30,740
	Single Issue Trust Preferred	$          -	$        883	$          -	$        883
	SBA Pools	$          -	$   13,659	$          -	$   13,659
	SLMA	$          -	$       499	$          -	$        499
	Total AFS Securities	$          -	$  55,318	$          -	$    55,318
	Non Recurring - Loans
	The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, recent appraisal value and /or tax assessed value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At September 30, 2014 and December 31, 2013, all of the total impaired loans were evaluated based on the fair value of the collateral. The Company frequently obtains appraisals prepared by external professional appraisers and applies discounts ranging from 8% to 40% depending on type of property, condition, location, etc. The Company also in certain instances, prepares internally generated valuations from on-site inspections, third-party valuation models or other information.
	Non Recurring -Foreclosed Assets / Repossessions
	Foreclosed assets and repossessions are adjusted to fair value upon transfer of the loans to foreclosed assets and repossessions. Subsequently, foreclosed assets and repossessions are carried at the lower of carrying value or fair value. Fair value is based upon independent market prices or recent appraised values of the collateral which the Company considers as nonrecurring Level 2. When the current appraised value is not available and /or further discounted below the most recent appraised value less selling costs due to such things as absorption rates and market conditions, the Company records the foreclosed assets within Level 3 of the fair value hierarchy.
	The following table summarizes the Company’s assets at fair value on a non - recurring basis as of September 30, 2014 and December 31, 2013 segregated by the level of the valuation inputs within the fair value hierarchy. The tables disclose the recorded investment of impaired loans requiring a specific allowance.
	30-Sep-14	Level 1	Level 2	Level 3	Total Fair Value
	Impaired Loans	$           -	$             -	$   8,458	$   8,458
	OREO	$           -	$            -	$     6,720	$   6,720
	31-Dec-13	Level 1	Level 2	Level 3	Total Fair Value
	Impaired Loans	$           -	$             -	$   12,667	$   12,667
	OREO	$           -	$     1,218	$     6,616	$   7,834
	The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company uses Level 3 inputs to determine fair value (dollars in thousands):
						Quantitative Information about Level 3 Fair Value Measurements
			30-Sep			December 31,		Valuation	Unobservable	Range
			2014			2013		Techniques	Input (2)	(Weighted Average)
	OREO		$	6,720		$	6,616	Appraisal of collateral (1)	Appraisal adjustments	0% to 45% (13%)
									Liquidation expenses	0% to 10% (9%)
	Impaired loans		$	8,458		$	12,667	Fair value of collateral –real estate  (1), (3)	Appraisal adjustments	0% to 10% (9%)
								Fair value of collateral –equipment, inventory, other  (1), (3)	Appraisal adjustments	25% to 50% (33%)
									Liquidation expenses	0% to 10% -9%)
	Valuation adjustments and liquidation cost adjustments represent unobservable inputs for OREO and impaired loans.   The ranges of discounts applied are based on age of independent appraisals, type and condition of collateral, current market conditions, and experience with the local market.
	(1)  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable.
	(2)  Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
	(3)  Includes qualitative adjustments by management.
	General
	The Company has no liabilities carried at fair value or measured at fair value on a recurring or non-recurring basis.
	Fair Value of Financial Instruments
	Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company.
	Cash and Cash Equivalents
	The carrying amount reported in the balance sheets for cash, short-term investments and federal funds sold approximates fair value.
	Securities Available for Sale
	Fair values are determined in the manner as described above.
	Other Investments
	Other investments include Federal Home Loan Bank stock, Federal Reserve Bank stock, Community Bankers Bank stock, and Pacific Coast Bankers Bank stock. The carrying value of those securities approximates fair value based on the redemption provisions of those Banks. Also included in other investments are certificates of deposit purchased from other FDIC insured banks in which the carrying amount approximates fair value.
	Loans
The fair value of loans represent the amount at which the loans of the Bank could be exchanged on the open market, based upon the current lending rate for similar types of lending arrangements discounted over the remaining life of the loans. For fixed rate loans and for variable rate loans with infrequent re-pricing or re-pricing limits, fair value is based on discounted cash flows using current market rates applied to the cash flow analysis.
Deposits
The fair value of time deposits is based on discounted cash flows using current market rates applied to the cash flow analysis for each time deposit. Other non-maturity deposits are reported at their carrying values.
Other Short-Term Borrowings
Fair values of other short-term borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Estimated maturity dates are also included in the calculation of fair value for these borrowings.
Long-term Debt and Capital Securities
Rates currently available to the Company for debt with similar terms and remaining maturities or established call prices are used to estimate fair value of existing debt.
Off-Balance Sheet Instruments
The amount of off-balance sheet commitments to extend credit, standby letters of credit, and financial guarantees, is considered equal to fair value. Because of the uncertainty involved in attempting to assess the likelihood and timing of commitments being drawn upon, coupled with the lack of an established market and the wide diversity of fee structures, the Company does not believe it is meaningful to provide an estimate of fair value that differs from the given value of the commitment.
The carrying amounts and fair values of the Company's financial instruments at September 30, 2014 and December 31, 2013 were as follows:
	30-Sep-14			31-Dec-13
	Carrying Amount	Fair Value		Carrying Amount	Fair Value
Cash and cash equivalents	$    62,122	$   62,122		$    83,995	$    83,995
Securities available for sale	83,239	83,239		55,318	55,318
Other investments	6,757	6,757		4,710	4,710
Loans, net	399,055	396,166		396,961	390,401
Deposits	-487,949	-466,902		-488,274	-466,120
Other short-term borrowings	-20,050	-21,578		-23,500	-25,538
Long-term debt	-47,764	-50,573		-47,802	-50,892
Capital Securities	-	-		-3,150	-3,175

9_Investment_Securities_Availa

9. Investment Securities Available-For-Sale	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Investment Securities Available-For-Sale	'
	The amortized cost and market value of securities available for sale are as follows:
		September 30, 2014
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	State and political subdivisions	$   10,306		135		39		$    10,402
	Mortgage backed securities	59,307		221		363		59,165
	Single Issue Trust Preferred	906		-		17		889
	SBA Pools	13,168		22		407		12,783
	SLMA	-		-		-		-
		$  83,687		$       378		$    826		$   83,239
		December 31, 2013
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	State and political subdivisions	$   9,795		51		309		$      9,537
	Mortgage backed securities	30,984		190		434		30,740
	Single Issue Trust Preferred	907		-		24		883
	SBA Pools	14,396		30		767		13,659
	SLMA	500		-		1		499
		$   56,582		$       271		$     1,535		$    55,318
	Investment securities available for sale with a carrying value of $41,730 and $40,077 at September 30, 2014 and December 31, 2013, respectively, and a market value of $41,485 and $39,889 at September 30, 2014 and December 31, 2013, respectively, were pledged as collateral on public deposits, FHLB advances and for other purposes as required or permitted by law.
	The following table presents the age of gross unrealized losses and fair value by investment category:
		30-Sep-14
		Less Than 12 months		12 Months or More		Total
		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
	States and political subdivisions	$   531	$      6	$    1,748	$       33	$   2,279	$      39
	Mortgage-backed securities	32,841	184	10,495	179	43,336	363
	Single Issue Trust Preferred	-	-	889	17	889	17
	SBA Pools	-	-	11,604	407	11,604	407
	SLMA	-	-	-	-	-	-
	Total	$  33,372	$   190	$  24,736	$    636	$58,108	$  826
		31-Dec-13
		Less Than 12 months		12 Months or More		Total
		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
	State and political subdivisions	$    4,812	$     144	$   849	$      165	$   5,661	$      309
	Mortgage-backed securities	16,586	308	1,733	126	18,319	434
	Single Issue Trust Preferred	-	-	883	24	883	24
	SBA Pools	7,273	482	4,802	285	12,075	767
	SLMA	499	1	-	-	499	1
	Total	$  29,170	$     935	$  8,267	$    600	$37,437	$  1,535
	The Company assesses its securities for OTTI quarterly by reviewing credit ratings, financial and regulatory reports as well as other pertinent published financial data. As of September 30, 2014 and December 31, 2013, the Company's assessment revealed no impairment other than that deemed temporary on those securities.
	The amortized cost and estimated fair value of securities available for sale at September 30, 2014 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
		Amortized Cost		Approximate Market Value
	Due in one year or less	$            -		$            -
	Due after one year through five years	1,534		1,545
	Due after five years through ten years	2,092		2,119
	Due after ten years	20,754		20,410
		24,380		24,074
	Mortgage-backed securities	59,307		59,165
		$     83,687		$     83,239

10_Formal_Written_Agreement

10. Formal Written Agreement	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Formal Written Agreement	'
	On October 13, 2010, the Company and Bank entered into a written agreement (“Written Agreement”) with the Federal Reserve Bank of Richmond (the “Reserve Bank”). Under the terms of the Written Agreement, the Bank has agreed to develop and submit to the Reserve Bank for approval within the time periods specified therein written plans or programs to:
		·	strengthen board oversight of the management and operations of the Bank;
		·	strengthen credit risk management and administration;
		·	provide for the effective grading of the Bank’s loan portfolio;
		·	summarize the findings of its review of the adequacy of the staffing of its loan review function;
		·	improve the Bank’s position with respect to loans, relationships, or other assets in excess of $500,000 that currently are or in the future become past due more than 90 days, on the Bank’s problem loan list, or adversely classified in any report of examination of the Bank;
		·	review and revise the Bank’s methodology for determining the allowance for loan and lease losses (“ALLL”) and maintain an adequate ALLL;
		·	maintain sufficient capital at the Company and the Bank;
		·	establish a revised written contingency funding plan;
		·	establish a revised written strategic and capital plan;
		·	establish a revised investment policy;
		·	improve the Bank’s earnings and overall condition;
		·	revise the Bank’s information technology program;
		·	establish a disaster recovery and business continuity program; and,
		·	establish a committee to monitor compliance with all aspects of the written agreement.
	Further, both the Company and the Bank have agreed to refrain from declaring or paying dividends without prior regulatory approval. The Company has agreed that it will not take any other form of payment representing a reduction in Bank’s capital or make any distributions of interest, principal or other sums on subordinated debentures or trust preferred securities without prior regulatory approval. The Company also has agreed not to incur, increase or guarantee any debt or not to purchase or redeem any shares of its stock without prior regulatory approval.

11_Summary_of_Significant_Acco

11. Summary of Significant Accounting Policy Update For Certain Required Disclosures	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
Summary of Significant Accounting Policy Update For Certain Required Disclosures	'
	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 and early adoption is not permitted. The Company does not expect ASU 2014-09 to have a material effect on the Company’s current financial position or results of operations; however, it may impact the reporting of future financial statement disclosures.
	In June of 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (Topic 860). The amendments in this Update require that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty (a repurchase financing), which will result in secured borrowing accounting for the repurchase agreement. The amendments require an entity to disclose information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements, in which the transferor retains substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. In addition the amendments require disclosure of the types of collateral pledged in repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions and the tenor of those transactions. The amendments are effective for the first interim or annual period beginning after December 15, 2014.   The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.
	In August 2014, the FASB issued ASU 2014-14 Receivables – Troubled Debt Restructurings by Creditors: Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (Subtopic 310-40). The amendments in this Update require the de-recognition of mortgage loan and recognition of other receivable if the loan has a government guarantee and the following conditions are met: 1) the loan has a government guarantee that is not separable from the loan before foreclosure; 2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; 3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments are effective for the first interim or annual period beginning after December 15, 2014.   The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

12_Capital_Raise

12. Capital Raise	9 Months Ended
	Sep. 30, 2014
NotesToFinancialStatementsAbstract	'
12. Capital Raise	'
	On April 16, 2014, the management and board of directors of Highlands Bankshares, Inc. announced the completion of a $16,500 private placement capital raise. Purchasers in the private placement included outside investors, as well as certain directors and executive officers of the Company. The Company sold 2,673,249 newly issued shares of the Company’s common stock at $3.50 per share, and 2,048,179 shares of Series-A convertible perpetual preferred stock at $3.50 per share. The private placement was disclosed on Form 8-K on April 16, 2014. The Company immediately paid off its Holding Company Loan in the amount of $3,440 to Community Bankers Bank on April 16, 2014 with the funds received from the capital raise.
	The Company also paid off the remaining $3,150 of its trust preferred securities including accrued interest. The payoff totaling $4,802 was completed on July 15, 2014. The Company also down-streamed to the subsidiary Bank in June 2014, $7,500 of funds received from the capital raise. During the third quarter of 2014, the Company also conducted a rights offering to its existing shareholders other than directors and executive officers. The Company raised a total of $556 as a result of the offering. The Company immediately down-streamed $400 of the $556 to the Bank in September of 2014.

11_Recently_Issued_Accounting_

11. Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2014
Recently Issued Accounting Pronouncements Policies	'
Recently Issued Accounting Pronouncements	'
	In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods, and interim periods within that period, beginning after December 15, 2016 and early adoption is not permitted. The Company does not expect ASU 2014-09 to have a material effect on the Company’s current financial position or results of operations; however, it may impact the reporting of future financial statement disclosures.
	In June of 2014, the FASB issued ASU No. 2014-11, Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures (Topic 860). The amendments in this Update require that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty (a repurchase financing), which will result in secured borrowing accounting for the repurchase agreement. The amendments require an entity to disclose information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements, in which the transferor retains substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction. In addition the amendments require disclosure of the types of collateral pledged in repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions and the tenor of those transactions. The amendments are effective for the first interim or annual period beginning after December 15, 2014.   The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.
	In August 2014, the FASB issued ASU 2014-14 Receivables – Troubled Debt Restructurings by Creditors: Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (Subtopic 310-40). The amendments in this Update require the de-recognition of mortgage loan and recognition of other receivable if the loan has a government guarantee and the following conditions are met: 1) the loan has a government guarantee that is not separable from the loan before foreclosure; 2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim; 3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments are effective for the first interim or annual period beginning after December 15, 2014.   The adoption of this ASU is not expected to have a material impact on the Company’s consolidated financial statements.

2_Loans_and_Allowance_for_Loan1

2. Loans and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2014
DisclosureLoansAndAllowanceForLoanLossesTablesAbstract	'
Composition of net loans	'
	The composition of net loans is as follows:
		30-Sep-14		31-Dec-13
	Real Estate Secured:
	Residential 1-4 family	$184,300		$   175,860
	Multifamily	21,233		20,592
	Construction and Land Loans	18,618		18,509
	Commercial Real Estate, Owner Occupied	70,845		71,459
	Commercial Real Estate, Non-owner occupied	31,726		37,117
	Second mortgages	7,574		7,934
	Equity lines of credit	7,020		7,884
	Farmland	8,756		9,322
		350,072		348,677
	Secured (other) and unsecured
	Personal	20,352		20,472
	Commercial	31,473		31,575
	Agricultural	3,085		3,376
		54,910		55,423
	Overdrafts	242		304
		405,224		404,404
	Less:
	Allowance for loan losses	5,529		6,825
	Net deferred fees	640		618
		6,169		7,443
	Loans, net	$399,055		$    396,961
Analysis of past due loans	'
	The following table is an analysis of past due loans as of September 30, 2014:
			30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables	Recorded Investment > 90 Days and Accruing
	Real Estate Secured
	Residential 1-4 family		$2,775		$    1,997		$  2,730		$  7,502		$  176,798		$  184,300	$         -
	Equity lines of credit		16		50		240		306		6,714		7,020	-
	Multifamily		-		-		-		-		21,233		21,233	-
	Farmland		399		179		129		707		8,049		8,756	-
	Construction, Land Development, Other Land Loans		197		36		161		394		18,224		18,618	-
	Commercial Real Estate- Owner Occupied		845		2		2,702		3,549		67,296		70,845	-
	Commercial Real Estate- Non Owner Occupied		4		-		1,547		1,551		30,175		31,726	-
	Second Mortgages		90		51		145		286		7,288		7,574	-
	Non Real Estate Secured
	Personal		487		80		216		783		19,811		20,594	-
	Commercial		580		511		206		1,297		30,176		31,473	-
	Agricultural		9		84		492		585		2,500		3,085	-
	Total		$  5,402		$    2,990		$   8,568		$  16,960		$  388,264		$  405,224	$          -
	The following table is an analysis of past due loans as of December 31, 2013:
			30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Financing Receivables	Recorded Investment > 90 Days and Accruing
	Real Estate Secured
	Residential 1-4 family		$    3,219		$    1,805		$    2,699		$    7,723		$  168,137		$  175,860	$          -
	Equity lines of credit		-		-		318		318		7,566		7,884	-
	Multifamily		-		97		-		97		20,495		20,592	-
	Farmland		38		-		129		167		9,155		9,322	-
	Construction,  Land Development, Other Land Loans		303		117		1,615		2,035		16,474		18,509	-
	Commercial Real Estate- Owner Occupied		665		26		1,610		2,301		69,158		71,459	-
	Commercial Real Estate- Non Owner Occupied		234		2,257		637		3,128		33,989		37,117	-
	Second Mortgages		341		3		56		400		7,534		7,934	-
	Non Real Estate Secured
	Personal		357		177		146		680		20,096		20,776	2
	Commercial		1,344		121		266		1,731		29,844		31,575	-
	Agricultural		29		-		-		29		3,347		3,376	-
	Total		$    6,530		$    4,603		$   7,476		$   18,609		$  385,795		$  404,404	$          2
Schedule of non-accrual loans	'
	The following is a summary of non-accrual loans at September 30, 2014 and December 31, 2013:
		30-Sep-14		31-Dec-13
	Real Estate Secured
	Residential 1-4 Family	$           4,201		$       2,890
	Multifamily	-		-
	Construction and Land Loans	1,922		1,694
	Commercial-Owner Occupied	5,617		3,005
	Commercial- Non Owner Occupied	1,547		2,429
	Second Mortgages	145		92
	Equity Lines of Credit	240		318
	Farmland	129		146
	Secured (other) and Unsecured
	Personal	215		144
	Commercial	206		266
	Agricultural	493		-
	Total	$14,715		$     10,984
Credit Risk Profile by Internally Assigned Grade	'
	Credit Risk Profile by Internally Assigned Grade as of September 30, 2014
	Grade (1)		Residential 1-4 Family		Multifamily		Farmland		Construction, Land Loans		Commercial Real Estate- Owner Occupied		Commercial Real Estate Non-Owner Occupied
	Quality		30,632		6		476		3,147		3,882		800
	Satisfactory		98,771		16,549		1,884		7,588		32,417		14,446
	Acceptable		41,489		2,589		4,969		5,481		19,916		12,224
	Special Mention		3,319		837		467		488		3,185		2,339
	Substandard		10,089		1,252		960		1,914		11,445		1,917
	Doubtful		-				-		-		-		-
	Total		$   184,300		$     21,233		$     8,756		$        18,618		$     70,845		$     31,726
	Credit Risk Profile by Internally Assigned Grade as of December 31, 2013
	Grade (1)		Residential 1-4 Family		Multifamily		Farmland		Construction, Land Loans		Commercial Real Estate- Owner Occupied		Commercial Real Estate Non-Owner Occupied
	Quality		33,137		-		823		3,425		5,831		1,495
	Satisfactory		90,569		15,419		4,128		8,123		27,712		15,153
	Acceptable		38,958		3,049		3,699		3,733		22,007		11,148
	Special Mention		4,678		2,124		6		1,652		6,823		2,507
	Substandard		8,518		-		666		1,576		8,620		6,814
	Doubtful		-		-		-		-		466		-
	Total		$   175,860		$     20,592		$     9,322		$        18,509		$     71,459		$      37,117
	(1) Quality--This grade is reserved for the Bank’s top quality loans. These loans have excellent sources of repayment, with no significant identifiable risk of collection.  Generally, loans assigned this rating will demonstrate the following characteristics:
Credit Risk Profile based on payment activity	'
	Credit Risk Profile based on payment activity as of September 30, 2014
			Consumer - Non Real Estate		Equity Line of Credit / Second Mortgages		Commercial - Non Real Estate		Agricultural - Non Real Estate
	Performing		$       20,378		$          14,209		$               31,267		$            2,593
	Nonperforming (>90 days past due)		216		385		206		492
	Total		$       20,594		$        14,594		$              31,473		$           3,085
	Credit Risk Profile based on payment activity as of December 31, 2013
			Consumer - Non Real Estate		Equity Line of Credit / Second Mortgages		Commercial - Non Real Estate		Agricultural - Non Real Estate
	Performing		$       20,630		$          15,444		$               31,309		$            3,376
	Nonperforming (>90 days past due)		146		374		266		-
	Total		$       20,776		$         15,818		$              31,575		$           3,376
Impaired loans	'
	The following tables reflect the Bank’s impaired loans at September 30, 2014:
	September 30, 2014		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	With No Related Allowance
	Real Estate Secured
	Residential 1-4 family		$     7,190		$     7,190		$          -		$     6,616		$       146
	Equity lines of credit		301		379		-		332		4
	Multifamily		1,252		1,252		-		626		48
	Farmland		971		971		-		727		37
	Construction, Land Development, Other Land Loans		1,726		1,726		-		1,710		32
	Commercial Real Estate- Owner Occupied		9,561		9,765		-		7,477		196
	Commercial Real Estate- Non Owner Occupied		-		-		-		3,227		-
	Second Mortgages		204		204		-		133		5
	Non Real Estate Secured
	Personal /Consumer		65		65		-		59		2
	Commercial		373		373		-		234		17
	Agricultural		492		547		-		246		-
	Total		$    22,135		$    22,472		$          -		$   21,387		$       487
	September 30, 2014		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	With an Allowance Recorded
	Real Estate Secured
	Residential 1-4 family		$     3,377		$     3,377		$       686		$     3,201		$       95
	Equity lines of credit		-		-		-		19		-
	Multifamily		-		-		-		-		-
	Farmland		-		-		-		100		-
	Construction, Land Development, Other Land Loans		366		366		20		183		6
	Commercial Real Estate- Owner Occupied		1,902		1,902		273		2,715		51
	Commercial Real Estate- Non Owner Occupied		1,918		1,918		323		3,249		27
	Second Mortgages		-		-		-		28		-
	Non Real Estate Secured
	Personal /Consumer		229		229		158		181		5
	Commercial		658		658		414		791		24
	Agricultural		8		8		8		94		-
	Total		$    8,458		$    8,458		$     1,882		$    10,561		$       208
	The following tables reflect the Bank’s impaired loans at December 31, 2013:
	December 31, 2013		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	With no Related Allowance
	Real Estate Secured
	Residential 1-4 family		$     6,042		$     6,042		$          -		$     6,300		$       198
	Equity lines of credit		364		364		-		182		6
	Multifamily		-		-		-		-		-
	Farmland		483		483		-		391		11
	Construction, Land Development, Other Land Loans		1,694		1,694		-		1,677		1
	Commercial Real Estate- Owner Occupied		5,393		5,393		-		5,201		173
	Commercial Real Estate- Non Owner Occupied		6,454		6,454		-		4,943		250
	Second Mortgages		62		62		-		191		3
	Non Real Estate Secured
	Personal		53		53		-		31		3
	Commercial		96		96		-		82		5
	Agricultural		-		-		-		10		-
	Total		$    20,641		$    20,641		$          -		$   19,008		$       650
	December 31, 2013		Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
	With an Allowance Recorded
	Real Estate Secured
	Residential 1-4 family		$     3,026		$     3,026		$       394		$     3,756		$       145
	Equity lines of credit		38		38		38		19		1
	Multifamily		-		-		-		202		-
	Farmland		200		200		25		201		8
	Construction, Land Development, Other Land Loans		-		-		-		-		-
	Commercial Real Estate- Owner Occupied		3,528		3,528		630		3,113		72
	Commercial Real Estate- Non Owner Occupied		4,581		4,581		1,230		3,788		93
	Second Mortgages		56		56		45		28		1
	Non Real Estate Secured
	Personal		133		133		84		77		6
Commercial		924		924		695		791		34
Agricultural		181		181		56		448		4
Total		$    12,667		$    12,667		$     3,197		$    12,423		$       364
Allowance for loan losses and the recorded investment in loans by loan category	'
	Nine  months ended Sept. 30, 2014	Residential 1-4 Family	Multifamily	Construction and Land Loans	Commercial  R./E Owner Occupied	Commercial R/E Non-Owner Occupied	Second Mortgages	Equity Line of Credit	Farmland	Personal and  Overdrafts	Commercial and Agricultural	Unallocated	Total
	Allowance for Credit Losses:
	Beginning Balance December 31,  2013	$  975	$   143	$   230	$  1,029	$   1,415	$   153	$   50	$   65	$   483	$   1,264	$   1,018	$   6,825
	Provision for Credit Losses	353	-102	-103	-218	982	-52	125	-51	599	23	-308	1,248
	Charge-offs	188	-	18	345	1,239	25	100	-	471	387	-	2,773
	Recoveries	-1	-	-6	-132	-	-	-	-	-54	-36	-	-229
	Net Charge-offs	187	-	12	213	1,239	25	100	-	417	351	-	2,544
	Ending Balance Sept. 30, 2014	1,141	41	115	598	1,158	76	75	14	665	936	710	5,529
	Ending Balance: Individually evaluated for impairment	686	-	20	273	323	-	-	-	158	422	-	1,882
	Ending Balance:  Collectively Evaluated for Impairment	455	41	95	325	835	76	75	14	507	514	710	3,647
	Loans:
	Ending Balance: Individually Evaluated for Impairment	10,567	1,252	2,092	11,463	1,918	204	301	971	294	1,531	-	30,593
	Ending Balance: Collectively Evaluated for Impairment	173,733	19,981	16,526	59,382	29,808	7,370	6,719	7,785	20,300	33,027	-	374,631
	Ending Balance: Sept.  30, 2014	$184,300	$21,233	$18,618	$70,845	$31,726	$7,574	$7,020	$8,756	$20,594	$34,558	-	$405,224
	Nine  months ended September  30, 2013	Residential 1-4 Family	Multifamily	Construction and Land Loans	Commercial Owner Occupied	Commercial Non-Owner Occupied	Second Mortgages	Equity Line of Credit	Farmland	Personal and  Overdrafts	Commercial and Agricultural	Unallocated	Total
	Allowance for Credit Losses:
	Beginning Balance December 31,  2012	$   1,242	$   280	$   823	$   1,039	$   1,075	$   161	$   30	$    97	$   486	$1,530	$  686	7,449
	Provision for Credit Losses	329	-102	-404	161	376	150	1	17	348	-275	519	1,120
	Charge-offs	333	-	127	408	52	134	3	41	331	193	-	1,622
	Recoveries	6	-	3	-	-	-	-	-	39	30	-	78
	Net Charge-offs	327	-	124	408	52	134	3	41	292	163	-	1,544
	Ending Balance September 30, 2013	1,244	178	295	792	1,399	177	28	73	542	1,092	1,205	7,025
	Ending Balance: Individually evaluated for impairment	615	-	-	339	1,185	38	13	9	116	637	-	2,952
	Ending Balance:  Collectively Evaluated for Impairment	629	178	295	453	214	139	15	64	426	455	1,205	4,073
	Loans:
	Ending Balance: Individually Evaluated for Impairment	10,357	-	1,625	8,921	12,114	261	234	432	239	2,015	-	36,198
	Ending Balance: Collectively Evaluated for Impairment	164,614	19,768	15,995	58,758	25,215	7,939	7,933	10,296	21,608	32,403	-	364,529
	Ending Balance: September  30, 2013	$174,971	$19,768	$17,620	$67,679	$37,329	$8,200	$8,167	$10,728	$21,847	$34,418	-	$400,727
Troubled debt restructurings	'
	The following tables summarize the troubled debt restructurings during the nine months ended September 30, 2014 and 2013.
	Troubled Debt Restructurings –Nine months ended September 30, 2014 Interest only	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
	Real Estate Secured
	Residential 1-4 family
	Equity lines of credit
	Multifamily	1	1,252	1,252
	Farmland
	Construction, Land Development, Other Land Loans
	Commercial Real Estate-  Owner Occupied	1	1,395	1,395
	Commercial Real Estate-  Non Owner Occupied
	Second Mortgages
	Non Real Estate Secured
	Personal / Consumer
	Commercial
	Agricultural
	Total	2	2,647	2,647
	Troubled Debt Restructurings Below Market Rate	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
	Real Estate Secured
	Residential 1-4 family	1	879	879
	Equity lines of credit
	Multifamily
	Farmland
	Construction, Land Development, Other Land Loans
	Commercial Real Estate-  Owner Occupied	1	707	707
	Commercial Real Estate-  Non Owner Occupied
	Second Mortgages
	Non Real Estate Secured
	Personal / Consumer
	Commercial
	Agricultural
	Total	2	1,586	1,586
	Troubled Debt Restructurings Loan term extension	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
	Real Estate Secured
	Residential 1-4 family	6	1,217	1,217
	Equity lines of credit
	Multifamily
	Farmland
	Construction, Land Development, Other Land Loans
	Commercial Real Estate-  Owner Occupied	1	2,114	2,114
	Commercial Real Estate-  Non Owner Occupied
	Second Mortgages
	Non Real Estate Secured
	Personal / Consumer
	Business Commercial
	Agricultural	1	129	129
	Total	8	3,460	3,460
		Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
	Total Restructurings	12	7,693	7,693
	Troubled Debt Restructurings That subsequently defaulted	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
	Real Estate Secured
	Residential 1-4 family
	Equity lines of credit
	Multifamily
	Farmland
	Construction, Land Development, Other Land Loans
	Commercial Real Estate-  Owner Occupied
	Commercial Real Estate-  Non Owner Occupied
	Second Mortgages
	Non Real Estate Secured
	Personal / Consumer
	Commercial
	Agricultural
	Total	-	-	-
Troubled Debt Restructurings Below Market Rate	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	2	1,264	1,264
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied	5	8,687	8,687
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	7	9,951	9,951
Troubled Debt Restructurings – Nine months ended September 30, 2013   Interest only	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied	1	1,395	1,395
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	1	1,395	1,395
Troubled Debt Restructurings Loan term extension	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family	3	500	500
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans	1	55	55
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied
Second Mortgages	1	36	36
Non Real Estate Secured
Personal / Consumer
Commercial	1	71	71
Agricultural	3	755	755
Total	9	1,417	1,417
Troubled Debt Restructurings All	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Total Restructurings	17	12,763	12,763
Troubled Debt Restructurings That subsequently defaulted	Number of Contracts	Pre- Modification  Outstanding Recorded Investment	Post - Modification Recorded Investment
Real Estate Secured
Residential 1-4 family
Equity lines of credit
Multifamily
Farmland
Construction, Land Development, Other Land Loans
Commercial Real Estate-  Owner Occupied
Commercial Real Estate-  Non Owner Occupied
Second Mortgages
Non Real Estate Secured
Personal / Consumer
Commercial
Agricultural
Total	-	-	-

3_Income_Taxes_Tables

3. Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2014
Loans: [Abstract]	'
Income tax reconciliation	'
		2014	2013
	Tax expense at statutory rate	$     323	$     (77)
	Reduction in taxes from:
	Tax-exempt interest	-126	-142
	Valuation adjustment for deferred tax assets	-1,000	-2000
	Life Insurance Proceeds	-44
	Other, net	-136	-95
	Income tax expense	$     (983)	$     (2,314)

4_Capital_Requirements_Tables

4. Capital Requirements (Tables)	9 Months Ended
	Sep. 30, 2014
Farmland, real estate secured impaired loans, fair value disclosure	'
Schedule of Capital Ratios as Required by Regulators	'
	September 30, 2014
	Entity	Tier 1	Total Risk Based	Leverage
	Highlands Bankshares, Inc.	12.93%	14.18%	7.79%
	Highlands Union Bank	12.61%	13.86%	7.59%
	December 31, 2013
	Entity	Tier 1	Total Risk Based	Leverage
	Highlands Bankshares, Inc.	8.55%	9.81%	5.22%
	Highlands Union Bank	9.77%	11.03%	5.98%

6_Per_Share_Amounts_Tables

6. Per Share Amounts (Tables)	9 Months Ended
	Sep. 30, 2014
Past due days	'
Schedule of Earnings Per Share, Basic and Diluted	'
		Nine Months Ended September  30,		Three Months Ended September 30,
		2014	2013	2014	2013
	Basic Earnings per Common Share	$0.29	$         0.42	$ 0.07	$ (0.13)
	Basic Number of  Common Shares - Weighted Average	6,665,553	5,011,152	7,712,070	5,011,152
	Diluted Earnings per Share	$  0.22	$            0.42	$  0.05	$  (0.13)
	Diluted Number of Shares	8,713,732	5,011,152	9,760,249	5,011,152

8_Fair_Value_Tables

8. Fair Value (Tables)	9 Months Ended
	Sep. 30, 2014
Liabilities Less Deposits	'
Available for sale securities portfolio measured at fair value on a recurring basis	'
	30-Sep-14
		Level 1	Level 2	Level 3	Total Fair Value
	Available for Sale Securities
	State and Political Subdivisions	$          -	$  10,402	$          -	$  10,402
	Mortgage Backed Securities	$          -	$  59,165	$          -	$  59,165
	Single Issue Trust Preferred	$          -	$       889	$          -	$       889
	SBA Pools	$          -	$  12,783	$          -	$  12,783
	SLMA	$          -	$            -	$          -	$            -
	Total AFS Securities	$          -	$  83,239	$          -	$  83,239
	December 31, 2013
		Level 1	Level 2	Level 3	Total Fair Value
	Available for Sale Securities
	State and Political Subdivisions	$          -	$     9,537	$          -	$    9,537
	Mortgage Backed Securities	$          -	$   30,740	$          -	$  30,740
	Single Issue Trust Preferred	$          -	$        883	$          -	$        883
	SBA Pools	$          -	$   13,659	$          -	$   13,659
	SLMA	$          -	$       499	$          -	$        499
	Total AFS Securities	$          -	$  55,318	$          -	$    55,318
Assets at fair value on a non - recurring basis segregated by the level of the valuation inputs within the fair value hierarchy	'
	30-Sep-14	Level 1	Level 2	Level 3	Total Fair Value
	Impaired Loans	$           -	$             -	$   8,458	$   8,458
	OREO	$           -	$            -	$     6,720	$   6,720
	31-Dec-13	Level 1	Level 2	Level 3	Total Fair Value
	Impaired Loans	$           -	$             -	$   12,667	$   12,667
	OREO	$           -	$     1,218	$     6,616	$   7,834
Level 3 inputs for assets measured on a nonrecurring basis	'
						Quantitative Information about Level 3 Fair Value Measurements
			30-Sep			December 31,		Valuation	Unobservable	Range
			2014			2013		Techniques	Input (2)	(Weighted Average)
	OREO		$	6,720		$	6,616	Appraisal of collateral (1)	Appraisal adjustments	0% to 45% (13%)
									Liquidation expenses	0% to 10% (9%)
	Impaired loans		$	8,458		$	12,667	Fair value of collateral –real estate  (1), (3)	Appraisal adjustments	0% to 10% (9%)
								Fair value of collateral –equipment, inventory, other  (1), (3)	Appraisal adjustments	25% to 50% (33%)
									Liquidation expenses	0% to 10% -9%)
Carrying amounts and fair values of financial instruments	'
	The carrying amounts and fair values of the Company's financial instruments at September 30, 2014 and December 31, 2013 were as follows:
		30-Sep-14			31-Dec-13
		Carrying Amount	Fair Value		Carrying Amount	Fair Value
	Cash and cash equivalents	$    62,122	$   62,122		$    83,995	$    83,995
	Securities available for sale	83,239	83,239		55,318	55,318
	Other investments	6,757	6,757		4,710	4,710
	Loans, net	399,055	396,166		396,961	390,401
	Deposits	-487,949	-466,902		-488,274	-466,120
	Other short-term borrowings	-20,050	-21,578		-23,500	-25,538
	Long-term debt	-47,764	-50,573		-47,802	-50,892
	Capital Securities	-	-		-3,150	-3,175

9_Investment_Securities_Availa1

9. Investment Securities Available-For-Sale (Tables)	9 Months Ended
	Sep. 30, 2014
Maximum amount of all loan relationships review in addition to annual loan relationship	'
Schedule of amortized cost and market value of securities available-for-sale	'
	The amortized cost and market value of securities available for sale are as follows:
		September 30, 2014
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	State and political subdivisions	$   10,306		135		39		$    10,402
	Mortgage backed securities	59,307		221		363		59,165
	Single Issue Trust Preferred	906		-		17		889
	SBA Pools	13,168		22		407		12,783
	SLMA	-		-		-		-
		$  83,687		$       378		$    826		$   83,239
		December 31, 2013
		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	State and political subdivisions	$   9,795		51		309		$      9,537
	Mortgage backed securities	30,984		190		434		30,740
	Single Issue Trust Preferred	907		-		24		883
	SBA Pools	14,396		30		767		13,659
	SLMA	500		-		1		499
		$   56,582		$       271		$     1,535		$    55,318
Age of gross unrealized losses and fair value by investment category	'
	The following table presents the age of gross unrealized losses and fair value by investment category:
		30-Sep-14
		Less Than 12 months		12 Months or More		Total
		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
	States and political subdivisions	$   531	$      6	$    1,748	$       33	$   2,279	$      39
	Mortgage-backed securities	32,841	184	10,495	179	43,336	363
	Single Issue Trust Preferred	-	-	889	17	889	17
	SBA Pools	-	-	11,604	407	11,604	407
	SLMA	-	-	-	-	-	-
	Total	$  33,372	$   190	$  24,736	$    636	$58,108	$  826
		31-Dec-13
		Less Than 12 months		12 Months or More		Total
		Fair Value	Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
	State and political subdivisions	$    4,812	$     144	$   849	$      165	$   5,661	$      309
	Mortgage-backed securities	16,586	308	1,733	126	18,319	434
	Single Issue Trust Preferred	-	-	883	24	883	24
	SBA Pools	7,273	482	4,802	285	12,075	767
	SLMA	499	1	-	-	499	1
	Total	$  29,170	$     935	$  8,267	$    600	$37,437	$  1,535
Amortized cost and estimated fair value of securities available-for-sale by contractual maturity	'
		Amortized Cost		Approximate Market Value
	Due in one year or less	$            -		$            -
	Due after one year through five years	1,534		1,545
	Due after five years through ten years	2,092		2,119
	Due after ten years	20,754		20,410
		24,380		24,074
	Mortgage-backed securities	59,307		59,165
		$     83,687		$     83,239

2_Loans_and_Allowance_for_Loan2

2. Loans and Allowance for Loan Losses (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	$405,224	$404,404
Allowance for loan losses	5,529	6,825
Net deferred fees	640	618
Total allowances and net deferred fees	6,169	7,443
Loans, net	399,055	396,961
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	5,402	6,530
60 to 89 Days Past Due	2,990	4,603
Greater Than 90 Days	8,568	7,476
Total Past Due	16,960	18,609
Current	388,264	385,795
Total Financing Receivables	405,224	404,404
Recorded Investment > 90 Days and Accruing	'	2
Non-accrual loans	14,715	10,984
Real Estate Secured [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	350,072	348,677
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	'	'
Total Financing Receivables	350,072	348,677
Real Estate Secured [Member] | One to Four Family Residential [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	184,300	175,860
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	2,775	3,219
60 to 89 Days Past Due	1,997	1,805
Greater Than 90 Days	2,730	2,699
Total Past Due	7,502	7,723
Current	176,798	168,137
Total Financing Receivables	184,300	175,860
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	4,201	2,890
Real Estate Secured [Member] | Multi Family [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	21,233	20,592
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	0	0
60 to 89 Days Past Due	0	97
Greater Than 90 Days	0	0
Total Past Due	0	97
Current	21,233	20,495
Total Financing Receivables	21,233	20,592
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	0	0
Real Estate Secured [Member] | Construction and Land Development [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	18,618	18,509
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	197	303
60 to 89 Days Past Due	36	117
Greater Than 90 Days	161	1,615
Total Past Due	394	2,035
Current	18,224	16,474
Total Financing Receivables	18,618	18,509
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	1,922	1,694
Real Estate Secured [Member] | Commercial, Owner Occupied [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	70,845	71,459
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	845	665
60 to 89 Days Past Due	2	26
Greater Than 90 Days	2,702	1,610
Total Past Due	3,549	2,301
Current	67,296	69,158
Total Financing Receivables	70,845	71,459
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	5,617	3,005
Real Estate Secured [Member] | Commercial, Non owner Occupied [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	31,726	37,117
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	4	234
60 to 89 Days Past Due	0	2,257
Greater Than 90 Days	1,547	637
Total Past Due	1,551	3,128
Current	30,175	33,989
Total Financing Receivables	31,726	37,117
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	1,547	2,429
Real Estate Secured [Member] | Second Mortgage [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	7,574	7,934
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	90	341
60 to 89 Days Past Due	51	3
Greater Than 90 Days	145	56
Total Past Due	286	400
Current	7,288	7,534
Total Financing Receivables	7,574	7,934
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	145	92
Real Estate Secured [Member] | Home Equity Line of Credit [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	7,020	7,884
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	16	0
60 to 89 Days Past Due	'	0
Greater Than 90 Days	'	318
Total Past Due	'	318
Current	'	7,566
Total Financing Receivables	7,020	7,884
Recorded Investment > 90 Days and Accruing	'	0
Non-accrual loans	240	318
Real Estate Secured [Member] | Farmland [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	8,756	9,322
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	399	38
60 to 89 Days Past Due	'	0
Greater Than 90 Days	'	129
Total Past Due	'	167
Current	'	9,155
Total Financing Receivables	8,756	9,322
Recorded Investment > 90 Days and Accruing	'	0
Non-accrual loans	129	146
Secured (other) and unsecured [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	54,910	55,423
Analysis of past due loans [Abstract]	'	'
Total Financing Receivables	54,910	55,423
Secured (other) and unsecured [Member] | Personal Loans [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	20,594	20,776
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	487	357
60 to 89 Days Past Due	80	177
Greater Than 90 Days	216	146
Total Past Due	783	680
Current	19,811	20,096
Total Financing Receivables	20,594	20,776
Recorded Investment > 90 Days and Accruing	0	2
Non-accrual loans	215	144
Secured (other) and unsecured [Member] | Commercial Loan [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	31,473	31,575
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	580	1,344
60 to 89 Days Past Due	511	121
Greater Than 90 Days	206	266
Total Past Due	1,297	1,731
Current	30,176	29,844
Total Financing Receivables	31,473	31,575
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	206	266
Secured (other) and unsecured [Member] | Agricultural [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	3,085	3,376
Analysis of past due loans [Abstract]	'	'
30 to 59 Days Past Due	9	29
60 to 89 Days Past Due	84	0
Greater Than 90 Days	492	0
Total Past Due	585	29
Current	2,500	3,347
Total Financing Receivables	3,085	3,376
Recorded Investment > 90 Days and Accruing	0	0
Non-accrual loans	493	0
Secured (other) and unsecured [Member] | Overdrafts [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Loans, gross	242	304
Analysis of past due loans [Abstract]	'	'
Total Financing Receivables	$242	$304

2_Loans_and_Allowance_for_Loan3

2. Loans and Allowance for Loan Losses, Credit Risk Profile (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
One to Four Family Residential [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	$184,300	$175,860
One to Four Family Residential [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	30,632	33,137
One to Four Family Residential [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	98,771	90,569
One to Four Family Residential [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	41,489	38,958
One to Four Family Residential [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	3,319	4,678
One to Four Family Residential [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	10,089	8,518
One to Four Family Residential [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	0
Multi Family [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	21,233	20,592
Multi Family [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	6	0
Multi Family [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	16,549	15,419
Multi Family [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	2,589	3,049
Multi Family [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	837	2,124
Multi Family [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	1,252	0
Multi Family [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	0
Farmland [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	8,756	9,322
Farmland [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	476	823
Farmland [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	1,884	4,128
Farmland [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	4,969	3,699
Farmland [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	467	6
Farmland [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	960	666
Farmland [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	0
Construction and Land Development [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	18,618	18,509
Construction and Land Development [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	3,147	3,425
Construction and Land Development [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	7,588	8,123
Construction and Land Development [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	5,481	3,733
Construction and Land Development [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	488	1,652
Construction and Land Development [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	1,914	1,576
Construction and Land Development [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	0
Commercial, Owner Occupied [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	70,845	71,459
Commercial, Owner Occupied [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	3,882	5,831
Commercial, Owner Occupied [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	32,417	27,712
Commercial, Owner Occupied [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	19,916	22,007
Commercial, Owner Occupied [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	3,185	6,823
Commercial, Owner Occupied [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	11,445	8,620
Commercial, Owner Occupied [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	466
Commercial, Non owner Occupied [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	31,726	37,117
Commercial, Non owner Occupied [Member] | Pass [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	800	1,495
Commercial, Non owner Occupied [Member] | Satisfactory [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	14,446	15,153
Commercial, Non owner Occupied [Member] | Acceptable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	12,224	11,148
Commercial, Non owner Occupied [Member] | Special Mention [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	2,339	2,507
Commercial, Non owner Occupied [Member] | Substandard [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	1,917	6,814
Commercial, Non owner Occupied [Member] | Doubtful [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	0	0
Consumer Non Real Estate [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	20,594	20,796
Consumer Non Real Estate [Member] | Performing Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	20,378	20,630
Consumer Non Real Estate [Member] | Nonperforming Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	216	146
Equity Line of Credit Second Mortgages Non Real Estate Secured [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	14,594	15,818
Equity Line of Credit Second Mortgages Non Real Estate Secured [Member] | Performing Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	14,209	15,444
Equity Line of Credit Second Mortgages Non Real Estate Secured [Member] | Nonperforming Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	385	374
Commercial Non Real Estate [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	31,473	31,575
Commercial Non Real Estate [Member] | Performing Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	31,267	31,309
Commercial Non Real Estate [Member] | Nonperforming Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	206	266
Agricultural [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	3,085	3,376
Agricultural [Member] | Performing Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	2,593	3,376
Agricultural [Member] | Nonperforming Financing Receivable [Member]	'	'
Financing Receivable, Recorded Investment [Line Items]	'	'
Loans	$492	$0

2_Loans_and_Allowance_for_Loan4

2. Loans and Allowance for Loan Losses, Impaired Loans (Details) (USD $)	9 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Recorded Investment [Abstract]	'	'
With No Related Allowance	$22,135	$20,641
With Related Allowance	8,458	12,667
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	22,472	20,641
With Related Allowance	8,458	12,667
Related Allowance	1,882	3,197
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	21,387	19,008
With Related Allowance	10,561	12,423
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	487	650
With Related Allowance	208	364
Real Estate Secured [Member] | One to Four Family Residential [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	7,190	6,042
With Related Allowance	3,377	3,026
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	7,190	6,042
With Related Allowance	3,377	3,026
Related Allowance	686	394
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	6,616	6,300
With Related Allowance	3,201	3,756
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	146	198
With Related Allowance	95	145
Real Estate Secured [Member] | Home Equity Line of Credit [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	301	364
With Related Allowance	0	38
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	379	364
With Related Allowance	0	38
Related Allowance	0	38
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	332	182
With Related Allowance	19	19
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	4	6
With Related Allowance	0	1
Real Estate Secured [Member] | Multi Family [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	1,252	0
With Related Allowance	0	0
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	1,252	0
With Related Allowance	0	0
Related Allowance	0	0
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	626	0
With Related Allowance	0	202
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	48	0
With Related Allowance	0	0
Real Estate Secured [Member] | Farmland [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	971	483
With Related Allowance	0	200
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	971	483
With Related Allowance	0	200
Related Allowance	0	25
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	727	391
With Related Allowance	100	201
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	37	11
With Related Allowance	0	8
Real Estate Secured [Member] | Construction and Land Development [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	1,726	1,694
With Related Allowance	366	0
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	1,726	1,694
With Related Allowance	366	0
Related Allowance	20	0
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	1,710	1,677
With Related Allowance	183	0
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	32	1
With Related Allowance	6	0
Real Estate Secured [Member] | Commercial, Owner Occupied [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	9,561	5,393
With Related Allowance	1,902	3,528
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	9,765	5,393
With Related Allowance	1,902	3,528
Related Allowance	273	630
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	7,477	5,201
With Related Allowance	2,715	3,113
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	196	173
With Related Allowance	51	72
Real Estate Secured [Member] | Commercial, Non owner Occupied [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	0	6,454
With Related Allowance	1,918	4,581
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	0	6,454
With Related Allowance	1,918	4,581
Related Allowance	323	1,230
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	3,227	4,943
With Related Allowance	3,249	3,788
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	0	250
With Related Allowance	27	93
Real Estate Secured [Member] | Second Mortgage [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	204	62
With Related Allowance	0	56
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	204	62
With Related Allowance	0	56
Related Allowance	0	45
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	133	191
With Related Allowance	28	28
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	5	3
With Related Allowance	0	1
Non Real Estate Secured [Member] | Personal [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	65	53
With Related Allowance	229	133
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	65	53
With Related Allowance	229	133
Related Allowance	158	84
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	59	31
With Related Allowance	181	77
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	2	3
With Related Allowance	5	6
Non Real Estate Secured [Member] | Commercial Loan [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	373	96
With Related Allowance	658	924
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	373	96
With Related Allowance	658	924
Related Allowance	414	695
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	234	82
With Related Allowance	791	791
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	17	5
With Related Allowance	24	34
Non Real Estate Secured [Member] | Agricultural [Member]	'	'
Recorded Investment [Abstract]	'	'
With No Related Allowance	492	0
With Related Allowance	8	181
Unpaid Principal Balance [Abstract]	'	'
With No Related Allowance	547	0
With Related Allowance	8	181
Related Allowance	8	56
Average Recorded Investment [Abstract]	'	'
With No Related Allowance	246	10
With Related Allowance	94	448
Interest Income Recognized [Abstract]	'	'
With No Related Allowance	0	0
With Related Allowance	$0	$4

2_Loans_and_Allowance_for_Loan5

2. Loans and Allowance for Loan Losses, Alowance for Credit Losses (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	$6,825	$7,449
Provision for Credit Losses	1,248	1,120
Charge-offs	2,773	1,622
Recoveries	-229	78
Net Charge-offs	2,544	1,544
Ending Balance	5,529	7,025
Ending Balance: Individually evaluated for impairment	1,882	2,952
Ending Balance: Collectively evaluated for impairment	3,647	4,073
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	30,593	36,198
Ending balance: Collectively Evaluated for Impairment	374,631	364,529
Ending Balance	405,224	400,727
One to Four Family Residential [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	975	1,242
Provision for Credit Losses	353	329
Charge-offs	188	333
Recoveries	-1	6
Net Charge-offs	187	327
Ending Balance	1,141	1,244
Ending Balance: Individually evaluated for impairment	686	615
Ending Balance: Collectively evaluated for impairment	455	629
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	10,567	10,357
Ending balance: Collectively Evaluated for Impairment	173,733	164,614
Ending Balance	184,300	174,971
Multi Family [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	143	280
Provision for Credit Losses	-102	-102
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	41	178
Ending Balance: Individually evaluated for impairment	0	0
Ending Balance: Collectively evaluated for impairment	41	178
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	1,252	0
Ending balance: Collectively Evaluated for Impairment	19,981	19,768
Ending Balance	21,233	19,768
Construction and Land Development [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	230	823
Provision for Credit Losses	-103	-404
Charge-offs	18	127
Recoveries	-6	3
Net Charge-offs	12	124
Ending Balance	115	295
Ending Balance: Individually evaluated for impairment	20	0
Ending Balance: Collectively evaluated for impairment	95	295
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	2,092	1,625
Ending balance: Collectively Evaluated for Impairment	16,526	15,995
Ending Balance	18,618	17,620
Commercial, Owner Occupied [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	1,029	1,039
Provision for Credit Losses	-218	161
Charge-offs	345	408
Recoveries	-132	0
Net Charge-offs	213	408
Ending Balance	598	792
Ending Balance: Individually evaluated for impairment	273	339
Ending Balance: Collectively evaluated for impairment	325	453
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	11,463	8,921
Ending balance: Collectively Evaluated for Impairment	59,382	58,758
Ending Balance	70,845	67,679
Commercial, Non owner Occupied [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	1,415	1,075
Provision for Credit Losses	982	376
Charge-offs	1,239	52
Recoveries	0	0
Net Charge-offs	1,239	52
Ending Balance	1,158	1,399
Ending Balance: Individually evaluated for impairment	323	1,185
Ending Balance: Collectively evaluated for impairment	835	214
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	1,918	12,114
Ending balance: Collectively Evaluated for Impairment	29,808	25,215
Ending Balance	31,726	37,329
Second Mortgage [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	153	161
Provision for Credit Losses	-52	150
Charge-offs	25	134
Recoveries	0	0
Net Charge-offs	25	134
Ending Balance	76	177
Ending Balance: Individually evaluated for impairment	0	38
Ending Balance: Collectively evaluated for impairment	76	139
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	204	261
Ending balance: Collectively Evaluated for Impairment	7,370	7,939
Ending Balance	7,574	8,200
Home Equity Line of Credit [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	50	30
Provision for Credit Losses	125	1
Charge-offs	100	3
Recoveries	0	0
Net Charge-offs	100	3
Ending Balance	75	28
Ending Balance: Individually evaluated for impairment	0	13
Ending Balance: Collectively evaluated for impairment	75	15
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	301	234
Ending balance: Collectively Evaluated for Impairment	6,719	7,933
Ending Balance	7,020	8,167
Farmland [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	65	97
Provision for Credit Losses	-51	17
Charge-offs	0	41
Recoveries	0	0
Net Charge-offs	0	41
Ending Balance	14	73
Ending Balance: Individually evaluated for impairment	0	9
Ending Balance: Collectively evaluated for impairment	14	64
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	971	432
Ending balance: Collectively Evaluated for Impairment	7,785	10,296
Ending Balance	8,756	10,728
Personal and Overdrafts [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	483	486
Provision for Credit Losses	599	348
Charge-offs	471	331
Recoveries	-54	39
Net Charge-offs	417	292
Ending Balance	665	542
Ending Balance: Individually evaluated for impairment	158	116
Ending Balance: Collectively evaluated for impairment	507	426
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	294	239
Ending balance: Collectively Evaluated for Impairment	20,300	21,608
Ending Balance	20,594	21,847
Commercial and Agricultural Real Estate Portfolio Segment [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	1,264	1,530
Provision for Credit Losses	23	-275
Charge-offs	387	193
Recoveries	-36	30
Net Charge-offs	351	163
Ending Balance	936	1,092
Ending Balance: Individually evaluated for impairment	422	637
Ending Balance: Collectively evaluated for impairment	514	455
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	1,531	2,015
Ending balance: Collectively Evaluated for Impairment	33,027	32,403
Ending Balance	34,558	34,418
Unallocated [Member]	'	'
Allowance for Credit Losses [Roll Forward]	'	'
Beginning Balance	1,018	686
Provision for Credit Losses	-308	519
Charge-offs	0	0
Recoveries	0	0
Net Charge-offs	0	0
Ending Balance	710	1,205
Ending Balance: Individually evaluated for impairment	0	0
Ending Balance: Collectively evaluated for impairment	710	1,205
Loans: [Abstract]	'	'
Ending Balance: Individually Evaluated for Impairment	0	0
Ending balance: Collectively Evaluated for Impairment	0	0
Ending Balance	$0	$0

2_Loans_and_Allowance_for_Loan6

2. Loans and Allowance for Loan Losses, Troubed Debt Resturcturing (Details) (USD $)	Sep. 30, 2014	Sep. 30, 2013
In Thousands, unless otherwise specified	contract	contract
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	12	17
Pre-Modification Outstanding Recorded Investment	$7,693	$12,763
Post-Modification Recorded Investment	7,693	12,763
Interest only [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	2	1
Pre-Modification Outstanding Recorded Investment	2,647	1,395
Post-Modification Recorded Investment	2,647	1,395
Interest only [Member] | One to Four Family Residential [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	'
Pre-Modification Outstanding Recorded Investment	1,252	'
Post-Modification Recorded Investment	1,252	'
Interest only [Member] | Commercial, Owner Occupied [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	1
Pre-Modification Outstanding Recorded Investment	1,395	1,395
Post-Modification Recorded Investment	1,395	1,395
Below Market Rate [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	2	7
Pre-Modification Outstanding Recorded Investment	1,586	9,951
Post-Modification Recorded Investment	1,586	9,951
Below Market Rate [Member] | One to Four Family Residential [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	2
Pre-Modification Outstanding Recorded Investment	879	1,264
Post-Modification Recorded Investment	879	1,264
Below Market Rate [Member] | Commercial, Owner Occupied [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	'
Pre-Modification Outstanding Recorded Investment	707	'
Post-Modification Recorded Investment	707	'
Below Market Rate [Member] | Commercial, Non owner Occupied [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	'	5
Pre-Modification Outstanding Recorded Investment	'	8,687
Post-Modification Recorded Investment	'	8,687
Loan term extension [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	8	9
Pre-Modification Outstanding Recorded Investment	3,460	1,417
Post-Modification Recorded Investment	3,460	1,417
Loan term extension [Member] | One to Four Family Residential [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	6	3
Pre-Modification Outstanding Recorded Investment	1,217	500
Post-Modification Recorded Investment	1,217	500
Loan term extension [Member] | Construction and Land Development [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	'	1
Pre-Modification Outstanding Recorded Investment	'	55
Post-Modification Recorded Investment	'	55
Loan term extension [Member] | Commercial, Owner Occupied [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	'
Pre-Modification Outstanding Recorded Investment	2,114	'
Post-Modification Recorded Investment	2,114	'
Loan term extension [Member] | Second Mortgage [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	'	1
Pre-Modification Outstanding Recorded Investment	'	36
Post-Modification Recorded Investment	'	36
Loan term extension [Member] | Agricultural [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	1	3
Pre-Modification Outstanding Recorded Investment	129	755
Post-Modification Recorded Investment	129	755
Loan term extension [Member] | Commercial[Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	'	1
Pre-Modification Outstanding Recorded Investment	'	71
Post-Modification Recorded Investment	'	71
Subsequently defaulted [Member]	'	'
Troubled Debt Restructurings Interest Only [Abstract]	'	'
Number of Contracts	0	0
Pre-Modification Outstanding Recorded Investment	0	0
Post-Modification Recorded Investment	$0	$0

3_Income_Taxes_Details

3. Income Taxes (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Reconciliation of tax expense (benefit) from the federal tax rate to the effective tax rate [Abstract]	'	'	'	'
Tax expense at statutory rate	'	'	$323	($77)
Reduction in taxes from:	'	'	'	'
Tax exempt interest	'	'	-126	142
Valuation adjustment for deferred tax assets	'	'	-1,000	-2,000
Life Insurance Proceeds	'	'	-44	'
Other, net	'	'	-136	-95
Income tax expense (benefit)	$47	($452)	($983)	($2,314)

4_Capital_Requirements_Details

4. Capital Requirements (Details)	Sep. 30, 2014	Dec. 31, 2013
Highlands Bankshares, Inc. [Member]	'	'
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]	'	'
Tier 1 (in hundredths)	12.93%	8.55%
Total Risk Based (in hundredths)	14.18%	9.81%
Leverage (in hundredths)	7.79%	5.22%
Highlands Union Bank [Member]	'	'
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]	'	'
Tier 1 (in hundredths)	12.61%	9.77%
Total Risk Based (in hundredths)	13.86%	11.03%
Leverage (in hundredths)	7.59%	5.98%

6_Per_Share_Amounts_Details

6. Per Share Amounts (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
One to Four Family Residential, real estate secured impaired loans, fair value disclosure	'	'	'	'
Basic EPS	$0.07	($0.13)	$0.29	$0.42
Weighted Average Number of Shares	7,712,070	5,011,152	6,665,553	5,011,152
Diluted EPS	$0.05	($0.13)	$0.22	$0.42
Weighted Average Number of Shares	9,760,249	5,011,152	8,713,732	5,011,152

7_Commitments_and_Contingencie1

7. Commitments and Contingencies (Details Narrative) (USD $)	Sep. 30, 2014
In Thousands, unless otherwise specified
Standby Letters of Credit [Member]	'
Loss Contingencies [Line Items]	'
Commitments, maximum exposure	$332
Equity Line of Credit [Member]	'
Loss Contingencies [Line Items]	'
Commitments, maximum exposure	7,802
Credit Card Lines of Credit [Member]	'
Loss Contingencies [Line Items]	'
Commitments, maximum exposure	6,151
Construction and land development commitments [Member]	'
Loss Contingencies [Line Items]	'
Commitments, maximum exposure	2,716
Unused Commitments to Fund Interest Earning Assets [Member]	'
Loss Contingencies [Line Items]	'
Commitments, maximum exposure	$28,071

8_Fair_Value_Details

8. Fair Value (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Total AFS Securities	$83,239	$55,318
Recurring [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
State and Political Subdivisions	10,402	9,537
Mortgage Backed Securities	59,165	30,740
Single Issue Trust Preferred	889	883
SBA Pools	12,783	13,659
SLMA	0	499
Total AFS Securities	83,239	55,318
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
State and Political Subdivisions	0	0
Mortgage Backed Securities	0	0
Single Issue Trust Preferred	0	0
SBA Pools	0	0
SLMA	0	0
Total AFS Securities	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
State and Political Subdivisions	10,402	9,537
Mortgage Backed Securities	59,165	30,740
Single Issue Trust Preferred	889	883
SBA Pools	12,783	13,659
SLMA	0	499
Total AFS Securities	83,239	55,318
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
State and Political Subdivisions	0	0
Mortgage Backed Securities	0	0
Single Issue Trust Preferred	0	0
SBA Pools	0	0
SLMA	0	0
Total AFS Securities	$0	$0

8_Fair_Value_Loans_Details

8. Fair Value, Loans (Details) (Fair Value, Measurements, Nonrecurring [Member], USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Impaired Loans	$8,458	$12,667
Repossessions/OREO, net	6,720	7,834
Fair Value, Inputs, Level 1 [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Impaired Loans	0	0
Repossessions/OREO, net	0	0
Fair Value, Inputs, Level 2 [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Impaired Loans	0	0
Repossessions/OREO, net	0	1,218
Fair Value, Inputs, Level 3 [Member]	'	'
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Impaired Loans	8,458	12,667
Repossessions/OREO, net	$6,720	$6,616

8_Fair_Value_OffBalance_Sheet_

8. Fair Value, Off-Balance Sheet Instruments (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Securities available-for-sale	$83,239	$55,318
Carrying Amount [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash and cash equivalents	62,122	83,995
Securities available-for-sale	83,239	55,318
Other investments	6,757	4,710
Loans, net	399,055	396,961
Deposits	-487,949	-488,274
Other short term borrowings	-20,050	-23,500
Long-term debt	-47,764	-47,802
Capital securities	0	-3,150
Fair Value [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash and cash equivalents	62,122	83,995
Securities available-for-sale	83,239	55,318
Other investments	6,757	4,710
Loans, net	396,166	390,401
Deposits	-466,902	-466,120
Other short term borrowings	-21,578	-25,538
Long-term debt	-50,573	-50,892
Capital securities	$0	($3,175)

9_Investment_Securities_Availa2

9. Investment Securities Available-For-Sale (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	$83,687	$56,582
Gross Unrealized Gains	378	271
Gross Unrealized Losses	826	1,535
Total AFS Securities	83,239	55,318
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	33,372	29,170
Less Than 12 months, Unrealized Losses	190	935
12 Months or More, Fair value	24,736	8,267
12 Months or More, Unrealized Losses	636	600
Fair Value	58,108	37,437
Unrealized Losses	826	1,535
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - due in one year or less	0	'
Amortized cost - due after one year through five years	1,534	'
Amortized cost - due after five years through ten years	2,092	'
Amortized cost - due after ten years	20,754	'
Amortized cost - total	24,380	'
Mortgage-backed securities	59,307	'
Amortized cost - sub-total	83,687	56,582
Fiscal Year Maturity - Fair Value [Abstract]	'	'
Fair value - due in one year or less	0	'
Fair value - due after one year through five years	1,545	'
Fair value - due after five years through ten years	2,119	'
Fair value - after ten years	20,410	'
Fair value - sub total	24,074	'
Mortgage-backed securities	59,165	'
Fair value - grand total	83,239	'
State and Political Subdivisions [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	10,306	9,795
Gross Unrealized Gains	135	51
Gross Unrealized Losses	39	309
Total AFS Securities	10,402	9,537
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	531	4,812
Less Than 12 months, Unrealized Losses	6	144
12 Months or More, Fair value	1,748	849
12 Months or More, Unrealized Losses	33	165
Fair Value	2,279	5,661
Unrealized Losses	39	309
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - sub-total	10,306	9,795
Mortgage Backed Securities [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	59,307	30,984
Gross Unrealized Gains	221	190
Gross Unrealized Losses	363	434
Total AFS Securities	59,165	30,740
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	32,841	16,586
Less Than 12 months, Unrealized Losses	184	308
12 Months or More, Fair value	10,495	1,733
12 Months or More, Unrealized Losses	179	126
Fair Value	43,336	18,319
Unrealized Losses	363	434
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - sub-total	59,307	30,984
Single Issue Trust Preferred [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	906	907
Gross Unrealized Gains	0	0
Gross Unrealized Losses	17	24
Total AFS Securities	889	883
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	0	0
Less Than 12 months, Unrealized Losses	0	0
12 Months or More, Fair value	889	883
12 Months or More, Unrealized Losses	17	24
Fair Value	889	883
Unrealized Losses	17	24
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - sub-total	906	907
SBA Pools [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	13,168	14,396
Gross Unrealized Gains	22	30
Gross Unrealized Losses	407	767
Total AFS Securities	12,783	13,659
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	0	7,273
Less Than 12 months, Unrealized Losses	0	482
12 Months or More, Fair value	11,604	4,802
12 Months or More, Unrealized Losses	407	285
Fair Value	11,604	12,075
Unrealized Losses	407	767
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - sub-total	13,168	14,396
SLMA [Member]	'	'
Schedule of Available-for-sale Securities [Line Items]	'	'
Amortized Cost	0	500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	1
Total AFS Securities	0	499
Age of gross unrealized losses and fair value by investment category [Abstract]	'	'
Less Than 12 months, Fair Value	0	499
Less Than 12 months, Unrealized Losses	0	1
12 Months or More, Fair value	0	0
12 Months or More, Unrealized Losses	0	0
Fair Value	0	499
Unrealized Losses	0	1
Fiscal Year Maturity - Amortized Cost [Abstract]	'	'
Amortized cost - sub-total	$0	$500

9_Investment_Securities_Availa3

9. Investment Securities Available-For-Sale (Details Narrative) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Investment Securities Available-For-Sale Details Narrative	'	'
Investment securities available for sale	$41,730	$40,077
Investment securities pledged as collateral on public deposits	$41,485	$39,889