Highlands Bancorp, Inc. reported unaudited earnings results for the first quarter ended March 31, 2013. For the quarter, the company's net interest income was $1,963,000 compared to $1,630,000 a year ago. Net income was $532,000 compared to $165,000 a year ago. The net interest rate spread increased to 3.98% for the first quarter of 2013, as compared to 3.82% for the first quarter of 2012. Net income available to common stockholders was $515,000 or $0.29 per basic and diluted share compared to $159,000 or $0.09 per basic and diluted share a year ago. Book value per common share as on March 31, 2013 was $7.63 compared to $7.34 as on December 31, 2012. Tangible book value per common share as on March 31, 2013 was $7.18 compared to $6.89 as on December 31, 2012. The first quarter 2013 results were positively impacted by a partial reversal of $425,000 of the company's valuation allowance on deferred tax assets which was partially offset by current period income tax expenses of $72,000, resulting in a tax benefit of $353,000 or $.20 per share. Charge-offs for the first quarter of 2013 were $20,000 compared to $32,000 in the first quarter of 2012. There were no recoveries of previously charged off loans for the first quarter of 2013 or 2012.

Highlands Bancorp, Inc. reported unaudited earnings results for the fourth quarter and full year ended Dec. 31, 2012. The company reported fourth quarter net income of $1,012,000 in 2012 compared to net income of $798,000 for the same period of 2011. Fourth quarter net income available to common stockholders was $995,000 or $0.56 per diluted share in 2012 compared to $770,000 or $0.43 per diluted share for the same period in 2011. Net interest income increased $350,000 to $1,989,000 for the fourth quarter of 2012 compared to net interest income of $1,639,000 for the fourth quarter of 2011. Net income before income taxes was $372,000 against $318,000 reported last year. Net income for the full year 2012 was $1,548,000 compared to $1,534,000 for the full year 2011. Net income available to common stockholders for the full year 2012 was $1,485,000 or $0.83 per diluted share compared to $1,192,000 or $0.67 per diluted share for the year of 2011. The quarterly and annual results for both 2012 and 2011 were positively impacted by partial reversals of the company's valuation allowance on deferred tax assets which resulted in tax benefits of $640,000 or $0.36 per share for 2012, and $480,000 or $0.27 per share for 2011. For the year, net interest income increased to $7,237,000 from $6,364,000 for 2011 as a result of loan portfolio growth and a lower cost of funds. Net income before income taxes was $908,000 against $1,054,000 reported last year. Book value per common share was $7.34 against $6.52 and tangible book value per common share was $6.89 against $6.07 reported last year.

Highlands Bancorp, Inc. reported unaudited earnings results for the third quarter and nine months ended September 30, 2012. For the quarter, the company’s net income was $167,000 compared to net income of $275,000 for the same period in 2011. After dividends and discount accretion on preferred stock, third quarter 2012 net income available to common stockholders was $154,000 or $0.09 per diluted common share compared to net income of $120,000 or $0.07 per diluted common share for the same period in 2011. Net interest income increased by $281,000 or 17.44% to $1,892,000 for the third quarter of 2012 when compared to net interest income of $1,611,000 for the third quarter of 2011 as a result of loan portfolio growth, increased net interest margin and reduced funding costs during the period. For the nine months, the company’s net income was $536,000 compared to a net income of $736,000 for the same period in 2011. For the first nine months of 2012, net income available to common stockholders was $490,000 or $0.27 per diluted common share, compared to net income of $422,000 or $0.24 per diluted common share. For the first nine months of 2012, net interest income was $5,248,000 compared to $4,725,000 for the same period of 2011. Book value per share was $6.79. Net charge-offs for the third quarter of 2012 totaled $346,000 compared to no charge-offs or recoveries for the third quarter of 2011. Net charge-offs for the nine months ended September 30, 2012 totaled $378,000 compared to $6,000 for the same period in 2011.