Annual Report
Consolidated Statements of Financial ConditionConsolidated Statements of Income
March 2008
Contact: Larry D. Smith
(719) 539-2516
HIGH COUNTRY BANCORP, INC. DECLARES DIVIDEND AND ANNOUNCES QUARTERLY EARNINGS
14 April 2008 The Board of Directors ("the Board") of High Country Bancorp, Inc. (OTC: HCBC. PK)("the Company") has declared a cash dividend in the amount of $0.275 per share to the stockholders of record at the close of business on May 15, 2008, payable on or about May 25, 2008. The per share dividend rate is an increase over the previous dividend declared by the Company, reflecting a modest increase in the Company's core earnings and continues to demonstrate the strategy adopted by the Board to maintain prudent capital levels at High Country Bank ("the Bank"), the Company's banking subsidiary, as well as provide a reasonable return to the Company's shareholders. The Board considered asset growth potential and existing capital levels of the Bank coupled with opportunities for share repurchases in determining the per share dividend rate. The Board believes that this strategy is in the best interest of the stockholders, as well as the customers of the Bank.
In addition, the Company announced its quarterly earnings for the period ended March 31, 2008. For the quarter, consolidated net income was $405,000, or $0.47 per share. This compares to $627,000, or $0.73 per share, for the three months ending March 31, 2007. For the nine-month period ended March 31, 2008, net income was $1,032,000 or $1.20 per share compared to $1,087,000 or $1.26 in the previous year. The Company's prior year results of operations were significantly impacted by gains realized on the sale of the Bank's Leadville, Colorado branch, net of related expenses, as well as a $500,000 provision for loan losses recorded during the periods ending March 31, 2007. Total consolidated assets declined approximately $4.5 million from $202.1 million at June 30, 2007 to $197.6 million at March 31, 2008.
The Company's net interest income before provision for loan losses increased 6.9% and 1.3% for the three and nine month periods, respectively, ending March 31, 2008, compared to the prior year periods. No provision for loan loss was recorded during the current quarter as the Company's asset quality improved compared to the prior year quarter, in which the Company revised its allowance for loan loss methodology, resulting in a recorded provision of $500,000. Noninterest income decreased 71.9% and 49.3% for the three and nine month periods, respectively, ending March 31, 2008, compared to the prior year periods. Excluding the recorded gains resulting from the prior year sale of the Bank's Leadville, Colorado branch, noninterest income increased 21.8% and 4.0% for the three and nine month periods, respectively, ending March 31, 2008, compared to the prior year periods. For the three and nine month periods ending March 31, 2008, noninterest expense decreased 9.3% and 8.0%, respectively, compared to the prior year periods. Excluding the recorded expenses related to the prior year sale of the Bank's Leadville, Colorado branch, noninterest expense decreased 1.6% and 5.3% for the three and nine month periods, respectively, ending March 31, 2008, compared to the prior year periods.
"In the face of uncertain economic conditions, we are encouraged by the progress made with the organization's financial condition, particularly asset quality, and results of operations," said Larry Smith, Chairman of the Board and President of the Company. "We remain focused on managing the organization's asset quality in an uncertain economy and will continue to stress the importance of maintaining strong capital levels. We remain committed to increasing the value of the organization and supporting the communities we serve."
High Country Bancorp, Inc. is the holding company for High Country Bank, which conducts business through its main office in Salida, Colorado, and branch offices in Salida, Buena Vista and Canon City, Colorado. At March 31, 2008, the Company had 857,721 shares of common stock issued and outstanding.
This report contains certain forward-looking statements pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, loan demand in the Company's market area and competition that could cause actual results to differ materially from historical earnings and those presently anticipates or projected. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which reflect management's analysis only as the date made. The Company does not undertake any obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date of such statements.
Consolidated Statements of Financial Condition
March 31, 2008 and June 30, 2007, (Unaudited)
| March 31, 2008 | June 30, 2007 | |
| ASSETS | ||
| Cash and cash equivalents | $9,023,000 | $11,347,000 |
| Mortgage-backed securities held to maturity | 4,240,000 | 4,230,000 |
| Other securities held to maturity | 10,482,000 | 6,554,000 |
| Loans held for sale | - | 870,000 |
| Loans receivable, net | 156,634,000 | 163,393,000 |
| FHLBank stock, at cost | 2,957,000 | 2,856,000 |
| Accrued interest receivable | 1,190,000 | 1,345,000 |
| Other real estate and repossessed assets, net | 3,389,000 | 1,665,000 |
| Property and equipment, net | 8,017,000 | 8,303,000 |
| Deferred income taxes | 279,000 | 337,000 |
| Prepaid expenses and other assets | 1,398,000 | 1,224,000 |
| TOTAL ASSETS | $197,609,000 | $202,124,000 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| LIABILITIES | ||
| Deposits | $151,056,000 | $153,794,000 |
| Escrow accounts | 118,000 | 82,000 |
| FHLBank advances | 25,930,000 | 28,025,000 |
| Accrued interest payable | 19,000 | 22,000 |
| Accrued income taxes and other liabilities | 925,000 | 1,261,000 |
| TOTAL LIABILITIES | $178,048,000 | $183,184,000 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock - $0.01 par value; authorized 1,000,000 shares; no shares issued and outstanding | $ - | $ - |
| Common stock - $0.01 par value; authorized 3,000,000 shares; issued and outstanding 857,721 and 860,230 (March 31 and June 30, respectively) shares | 9,000 | 9,000 |
| Additional paid-in capital | 5,476,000 | 5,672,000 |
| Retained earnings | 14,076,000 | 13,259,000 |
| TOTAL STOCKHOLDERS' EQUITY | $19,561,000 | $18,940,000 |
| TOTAL LIABILITIES AND EQUITY | $197,609,000 | $202,124,000 |
Consolidated Statements of Income
High Country Bancorp, Inc.
Consolidated Statements of Income
Three and Nine Months Ended March 31, 2008 and 2007
(Unaudited, in thousands except per share calculations)
| Three Months Ended March 31, | Nine Months Ended March 31, | |||
| Interest Income | ||||
| 2008 | 2007 | 2008 | 2007 | |
| Interest and fees on loans | $3,042,000 | $3,065,000 | $9,227,000 | $9,209,000 |
| Securities held-to-maturity | 175,000 | 110,000 | 500,000 | 327,000 |
| Other interest-earning assets | 43,000 | 52,000 | 242,000 | 71,000 |
| Total interest income | 3,260,000 | 3,227,000 | 9,969,000 | 9,607,000 |
| Interest Expense | ||||
| Deposits | 1,067,000 | 1,171,000 | 3,531,000 | 3,314,000 |
| FHLBank advances | 355,000 | 336,000 | 1,109,000 | 1,031,000 |
| Total interest expense | 1,422,000 | 1,507,000 | 4,640,000 | 4,345,000 |
| Net interest income before provision for loan losses | 1,838,000 | 1,720,000 | 5,329,000 | 5,262,000 |
| Provision for loan losses | - | 500,000 | 100,000 | 600,000 |
| Net interest income after provision for loan losses | 1,838,000 | 1,220,000 | 5,229,000 | 4,662,000 |
| Non-interest Income | ||||
| Service charges on deposits | 77,000 | 124,000 | 257,000 | 349,000 |
| Income from loans sold | 193,000 | 79,000 | 389,000 | 248,000 |
| Title and escrow fees | 36,000 | 30,000 | 98,000 | 80,000 |
| Other | 137,000 | 139,000 | 438,000 | 434,000 |
| Gain on sale of branch, net | 21,000 | 1,279,000 | 72,000 | 1,364,000 |
| Total non-interest income | 464,000 | 1,651,000 | 1,254,000 | 2,475,000 |
| Non-interest Expense | ||||
| Compensation and benefits | 961,000 | 993,000 | 2,800,000 | 2,983,000 |
| Occupancy, equipment and data processing | 387,000 | 435,000 | 1,164,000 | 1,196,000 |
| Insurance and professional fees | 104,000 | 106,000 | 294,000 | 326,000 |
| Expense on noninterest earning assets | 35,000 | 32,000 | 98,000 | 83,000 |
| Other | 162,000 | 253,000 | 504,000 | 691,000 |
| Total non-interest expense | 1,649,000 | 1,819,000 | 4,859,000 | 5,279,000 |
| Net income before provision for income taxes | 653,000 | 1,052,000 | 1,624,000 | 1,858,000 |
| Provision for income taxes | 248,000 | 425,000 | 592,000 | 771,000 |
| Net income after provision for income taxes | $405,000 | $627,000 | $1,032,000 | $1,087,000 |
| Basic earnings per common share | $ 0.47 | $ 0.73 | $ 1.20 | $ 1.26 |
| Diluted earnings per common share | $ 0.47 | $ 0.72 | $ 1.19 | $ 1.24 |
| Weighted average common shares outstanding | ||||
| Basic | 863,736 | 861,706 | 862,542 | 865,319 |
| Diluted | 867,548 | 875,498 | 866,354 | 879,111 |
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