<html>
    <head>
        <title></title>
    </head>

    <body>
        <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">January 15, 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>

        <div align="left">
            &nbsp;
        </div>

        <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>
        <!-- EEDocs PBEnd-->

        <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"><b><font size="2">Item
        2.04</font></b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
        <b><font size="2">Triggering Events That Accelerate or Increase a Direct Financial
        Obligation or an Obligation Under an Off-Balance Sheet Arrangement.</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-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">On January 15, 2008 (the &ldquo;Redemption Date&rdquo;), Highlands
        Bankshares, Inc. (the &ldquo;Company&rdquo;) redeemed $3,862,500 in principal amount of its
        Junior Subordinated Debt Securities due January&nbsp;15, 2028 (the &ldquo;Debt
        Securities&rdquo;). All of the Debt Securities are held by Highlands Capital Trust I (the
        &ldquo;Trust&rdquo;), the Company&rsquo;s partially-owned subsidiary. The redemption price
        paid for the Debt Securities was 104.625% of the principal amount of the Debt Securities
        redeemed, plus accrued and unpaid interest to but excluding the Redemption Date.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">Simultaneously, Wilmington Trust Company, the trustee of the Trust, used the
        proceeds received from the redemption of the Debt Securities to redeem a &ldquo;like
        amount&rdquo; of the Trust&rsquo;s outstanding Common Securities and $2.3125 Preferred
        Securities (the &ldquo;Preferred Securities&rdquo;). The Trust redeemed $3,750,000 in
        principal amount of the Preferred Securities at a price equal to 104.625% of the $25.00
        liquidation amount per redeemed Preferred Security, plus accumulated distributions thereon
        to but excluding the Redemption Date (the &ldquo;Preferred Securities Redemption&rdquo;).
        Prior to the Preferred Securities Redemption, the Company held $1,200,000 in liquidation
        amount of the Preferred Securities then outstanding. In connection with the Preferred
        Securities Redemption, all $1,200,000 in liquidation amount of the Preferred Securities
        held by the Company were redeemed.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">The Trust also redeemed $112,500 in liquidation amount of its Common
        Securities, all of which were held by the Company. The redemption price paid for the Common
        Securities was 104.625% of the $25.00 liquidation amount per redeemed Common Security, plus
        accumulated distributions thereon to but excluding the Redemption Date.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">As a result of these transactions, the Company expects to incur a charge to
        earnings of approximately $150,000, net of tax. This charge includes the early redemption
        premium and the impairment of unamortized debt issuance costs relating to the redeemed Debt
        Securities.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

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

        <p style="PAGE-BREAK-BEFORE: always"></p>
        <PAGE><!-- EEDocs PBStart-->
        <hr style="PAGE-BREAK-AFTER: always" align="center" width="100%" noshade>
        <!-- EEDocs PBEnd-->

        <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: 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>

        <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; BORDER-LEFT-COLOR: gray; MARGIN-BOTTOM: 0pt; BORDER-BOTTOM-COLOR: gray; MARGIN-LEFT: 0pt; BORDER-TOP-COLOR: gray; TEXT-INDENT: 0pt; TEXT-ALIGN: justify; BORDER-RIGHT-COLOR: gray">
                    &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>

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

        <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="601" 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: January 16, 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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    By:</font>&nbsp;&nbsp;&nbsp;<u><font size="2">/s/&nbsp;Robert M. Little,
                    Jr.&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="147">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Robert M. Little, Jr.</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial
                    Officer</font></p>
                </td>

                <td width="49">
                    <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="147">
                </td>

                <td width="21">
                </td>

                <td width="49">
                </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": "f8k011508.htm", "secsgml_size_bytes": 23951}]
{"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": "08533023"}, "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):
January 15, 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
        2.04
Triggering Events That Accelerate or Increase a Direct Financial
        Obligation or an Obligation Under an Off-Balance Sheet Arrangement.
On January 15, 2008 (the "Redemption Date"), Highlands
        Bankshares, Inc. (the "Company") redeemed $3,862,500 in principal amount of its
        Junior Subordinated Debt Securities due January 15, 2028 (the "Debt
        Securities"). All of the Debt Securities are held by Highlands Capital Trust I (the
        "Trust"), the Company's partially-owned subsidiary. The redemption price
        paid for the Debt Securities was 104.625% of the principal amount of the Debt Securities
        redeemed, plus accrued and unpaid interest to but excluding the Redemption Date.
Simultaneously, Wilmington Trust Company, the trustee of the Trust, used the
        proceeds received from the redemption of the Debt Securities to redeem a "like
        amount" of the Trust's outstanding Common Securities and $2.3125 Preferred
        Securities (the "Preferred Securities"). The Trust redeemed $3,750,000 in
        principal amount of the Preferred Securities at a price equal to 104.625% of the $25.00
        liquidation amount per redeemed Preferred Security, plus accumulated distributions thereon
        to but excluding the Redemption Date (the "Preferred Securities Redemption").
        Prior to the Preferred Securities Redemption, the Company held $1,200,000 in liquidation
        amount of the Preferred Securities then outstanding. In connection with the Preferred
        Securities Redemption, all $1,200,000 in liquidation amount of the Preferred Securities
        held by the Company were redeemed.
The Trust also redeemed $112,500 in liquidation amount of its Common
        Securities, all of which were held by the Company. The redemption price paid for the Common
        Securities was 104.625% of the $25.00 liquidation amount per redeemed Common Security, plus
        accumulated distributions thereon to but excluding the Redemption Date.
As a result of these transactions, the Company expects to incur a charge to
        earnings of approximately $150,000, net of tax. This charge includes the early redemption
        premium and the impairment of unamortized debt issuance costs relating to the redeemed Debt
        Securities.
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: January 16, 2008
By:
/s/ Robert M. Little,
                    Jr.
Robert M. Little, Jr.
Chief Financial
                    Officer