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        <p style="BORDER-TOP: 2.25pt double; MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; PADDING-TOP: 1px; TEXT-ALIGN: justify">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">UNITED
        STATES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">Washington, D.C. 20549</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">___________</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="3">FORM
        8-K</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">CURRENT REPORT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
        1934</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">Date of
        Report</font> <font size="2">(Date of earliest event
        reported):</font>&nbsp;<b><font size="2">March 12, 2008</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">___________</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="4">HIGHLANDS BANKSHARES, INC.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(Exact
        name of registrant as specified in its charter)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
        <font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

        <div align="center">
            <table cellspacing="0" cellpadding="0" width="626" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" width="209">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">Virginia</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(State or other jurisdiction</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">of incorporation)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">0-27622</font></b></p>

                        <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
                        <font size="2">(Commission File Number)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" width="208">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <b><font size="2">54-1796693</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(IRS Employer</font></p>

                        <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
                        <font size="2">Identification No.)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" width="209">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" colspan="2">
                        <p style="MARGIN: 0in 0in 0pt">&nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" width="208">
                        <p style="MARGIN: 0in 0in 0pt">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 151.2%; TEXT-ALIGN: center">
                        <b><font size="2">P.O. Box 1128</font></b></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 151.2%; TEXT-ALIGN: center">
                        <b><font size="2">Abingdon, Virginia</font></b>
                        <font size="2">&nbsp;</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: center">
                        <font size="2">(Address of principal executive offices)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.75pt; PADDING-LEFT: 0.75pt; PADDING-BOTTOM: 0.75pt; PADDING-TOP: 0.75pt" valign="top" colspan="2">
                        <p style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align="center">
                        &nbsp;</p>

                        <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
                        <b><font size="2">24212-1128</font></b></p>

                        <p style="MARGIN: 0in 0in 0pt; LINE-HEIGHT: 13pt; TEXT-ALIGN: center" align="center">
                        <font size="2">(Zip Code)</font></p>
                    </td>
                </tr>

                <tr>
                    <td width="209">
                    </td>

                    <td width="104">
                    </td>

                    <td width="104">
                    </td>

                    <td width="208">
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2">Registrant&rsquo;s telephone number, including area code:</font>
        <b><font size="2">(276) 628-9181</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 3pt; TEXT-ALIGN: center"><b><font size="2">Not
        Applicable</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(Former
        name or former address, if changed since last report)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify"><font size="2">Check
        the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
        filing obligation of the registrant under any of the following provisions:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="628" border="0">
                <tr>
                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font face="Wingdings">o</font></p>
                    </td>

                    <td valign="top" nowrap width="580">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Written communications pursuant to Rule 425 under the
                        Securities Act (17 CFR 230.425)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="628" border="0">
                <tr>
                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font face="Wingdings">o</font></p>
                    </td>

                    <td valign="top" nowrap width="580">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Soliciting material pursuant to Rule 14a-12 under the
                        Exchange Act (17 CFR 240.14a-12)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="628" border="0">
                <tr>
                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font face="Wingdings">o</font></p>
                    </td>

                    <td valign="top" nowrap width="580">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Pre-commencement communications pursuant to Rule 14d-2(b)
                        under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="628" border="0">
                <tr>
                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font face="Wingdings">o</font></p>
                    </td>

                    <td valign="top" nowrap width="580">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Pre-commencement communications pursuant to Rule 13e-4(c)
                        under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="BORDER-TOP: 2.25pt double; MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; PADDING-TOP: 1px; TEXT-ALIGN: justify">
        &nbsp;</p>
        <hr style="PAGE-BREAK-AFTER: always" align="center" width="100%" noshade>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="211" border="0">
            <tr>
                <td valign="top" nowrap width="96">
                    <p style="MARGIN-TOP: 0pt; BORDER-LEFT-COLOR: gray; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM-COLOR: gray; MARGIN-LEFT: 0pt; BORDER-TOP-COLOR: gray; TEXT-INDENT: 0pt; TEXT-ALIGN: left; BORDER-RIGHT-COLOR: gray">
                    <b><font size="2">Item 8.01</font></b></p>
                </td>

                <td valign="top" nowrap width="115">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                    <b><font size="2">Other Events.</font></b></p>
                </td>
            </tr>
        </table>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        <font size="2">On March 12, 2008, the Board of Directors of Highlands Bankshares, Inc.
        (the&nbsp;&ldquo;Company&rdquo;) declared an annual cash dividend of $0.22 for each share
        of the Company's common stock outstanding. The dividend is payable on April 7, 2008 to
        shareholders of record on March 26, 2008. Based on the current number of shares
        outstanding, the aggregate payment will be approximately $1,111,766.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <hr style="PAGE-BREAK-AFTER: always" align="center" width="100%" noshade>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">SIGNATURES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.54in; TEXT-ALIGN: justify">
        <font size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, as
        amended, the Registrant has duly caused this report to be signed on its behalf by the
        undersigned hereunto duly authorized.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="609" border="0">
            <tr>
                <td valign="top" nowrap width="336">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    &nbsp;</p>
                </td>

                <td valign="top" nowrap colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <b><font size="2">HIGHLANDS BANKSHARES, INC.</font></b></p>
                </td>
            </tr>

            <tr>
                <td valign="top" nowrap colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    &nbsp;</p>
                </td>

                <td valign="top" nowrap width="95">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">(Registrant)</font></p>
                </td>

                <td width="131">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                    &nbsp;</p>
                </td>
            </tr>

            <tr>
                <td width="336">
                </td>

                <td width="48">
                </td>

                <td width="95">
                </td>

                <td width="131">
                </td>
            </tr>
        </table>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="600" border="0">
            <tr>
                <td valign="top" nowrap width="336">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">Date: March 14, 2008</font></p>
                </td>

                <td valign="top" nowrap colspan="4">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">By:</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    <u><font size="2">/s/ James R.
                    Edmonson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
                </td>
            </tr>

            <tr>
                <td valign="top" nowrap colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    &nbsp;</p>
                </td>

                <td valign="top" nowrap width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">James R. Edmonson</font></p>
                </td>

                <td colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                    &nbsp;</p>
                </td>
            </tr>

            <tr>
                <td valign="top" nowrap colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    &nbsp;</p>
                </td>

                <td valign="top" nowrap colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">Vice President of Accounting</font></p>
                </td>

                <td width="7">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                    &nbsp;</p>
                </td>
            </tr>

            <tr>
                <td width="336">
                </td>

                <td width="48">
                </td>

                <td width="149">
                </td>

                <td width="60">
                </td>

                <td width="7">
                </td>
            </tr>
        </table>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3in; TEXT-INDENT: 0.25in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
    </body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "f8k031408.htm", "secsgml_size_bytes": 21507}]
{"company-data": {"conformed-name": "HIGHLANDS BANKSHARES INC /VA/", "cik": "0001008579", "assigned-sic": "6022", "irs-number": "000000000", "state-of-incorporation": "VA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27622", "film-number": "08688125"}, "business-address": {"street1": "340 W MAIN ST", "street2": "C/O HIGHLANDS UNION BANK", "city": "ABINGDON", "state": "VA", "zip": "24210"}, "mail-address": {"street1": "340 WEST MAIN STREET", "street2": "C/O HIGHLANDS UNION BANK", "city": "ABINGDON", "state": "VA", "zip": "24210"}}
UNITED
        STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________
FORM
        8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
        1934
Date of
        Report
(Date of earliest event
        reported):
March 12, 2008
___________
HIGHLANDS BANKSHARES, INC.
(Exact
        name of registrant as specified in its charter)
Virginia
(State or other jurisdiction
of incorporation)
0-27622
(Commission File Number)
54-1796693
(IRS Employer
Identification No.)
P.O. Box 1128
Abingdon, Virginia
(Address of principal executive offices)
24212-1128
(Zip Code)
Registrant's telephone number, including area code:
(276) 628-9181
Not
        Applicable
(Former
        name or former address, if changed since last report)
Check
        the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
        filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the
                        Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the
                        Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b)
                        under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c)
                        under the Exchange Act (17 CFR 240.13e-4(c))
Item 8.01
Other Events.
On March 12, 2008, the Board of Directors of Highlands Bankshares, Inc.
        (the "Company") declared an annual cash dividend of $0.22 for each share
        of the Company's common stock outstanding. The dividend is payable on April 7, 2008 to
        shareholders of record on March 26, 2008. Based on the current number of shares
        outstanding, the aggregate payment will be approximately $1,111,766.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
        amended, the Registrant has duly caused this report to be signed on its behalf by the
        undersigned hereunto duly authorized.
HIGHLANDS BANKSHARES, INC.
(Registrant)
Date: March 14, 2008
By:
/s/ James R.
                    Edmonson
James R. Edmonson
Vice President of Accounting