History of the 25th North Carolina flag:
The “Highland Guards,” was part of Company G, raised in Clay and Macon counties, North Carolina, and at Athens, Georgia. It enlisted at Franklin, NC, on July 8, 1861. The company was then mustered into state service and assigned to the 25th North Carolina Infantry Regiment. The company functioned as part of the regiment and its history for the Civil War is reported as a part of its regimental history. The Captains of Company G were William S. Grady, John R. Hayes and John M. Phinizy.
The flag is a company flag and not a regimental flag. Many companies had their flag fashioned after the First National. Company G, 6th Regiment North Carolina Volunteers flag is like this flag except that it reflects “Rutherford Volunteers” where this flag has “Highland Guards” (the blue section has the same motto and style).