Annual Report

Consolidated Statements of Financial Condition
Consolidated 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

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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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