HIGH COUNTRY BANCORP : 2Q FY22

HIGH COUNTRY BANCORP, INC. ANNOUNCES QUARTERLY EARNINGS AND DECLARES DIVIDEND

The Board of Directors ("the Board") of High Country Bancorp, Inc. (OTCQX: HCBC) ("the Company") has announced its quarterly earnings for the period ended December 31, 2021. For the second quarter of fiscal 2022, the Company's consolidated net income was $1.1 million or $1.15 per share, compared to $1.4 million or $1.43 per share for the quarter ended December 31, 2020. For the six-month fiscal year-to-date period ended December 31, 2021, consolidated net income was $2.6 million or $2.77 per share, compared to $2.8 million or $2.89 per share for the six months ended December 31, 2020.

The Company's net interest income increased by $202,000 or 4.95% during the quarter ended December 31, 2021 compared to the prior year period primarily due to growth in loans and reduction to borrowing costs. Noninterest income declined by $861,000 or 48.84% during the quarter ended December 31, 2021 compared to the prior year period primarily due to declines in income on loans sold and other noninterest income. Noninterest expense was materially unchanged during the quarter ended December 31, 2021 compared to the prior year period as declines in compensation and benefits expense and other noninterest expenses were offset by increases in occupancy, equipment and data processing expense and insurance and professional fees. The Company's provision for income taxes declined to $349,000, or an effective tax rate of approximately 24.27%, during the quarter ended December 31, 2021 from $472,000, or an effective rate of approximately 25.64% compared to the prior year period.

For the six months ended December 31, 2021, the Company's net interest income increased by $908,000 or 11.29% compared to the prior year period primarily due to growth in loans as well as recognition of origination fee income and reduction to borrowing costs. Noninterest income declined by $1.1 million or 35.79% during the six months ended December 31, 2021 compared to the prior year period primarily due to declines in income on loans sold and other noninterest income. Noninterest expense increased by $564,000 or 8.16% during the six months ended December 31, 2021 compared to the prior year period due to increases in compensation and benefits expense, occupancy, equipment and data processing expense and insurance and professional fees, partially offset by a decline in other noninterest expenses. The Company's provision for income taxes declined to $841,000, or an effective tax rate of approximately 24.27%, during the six months ended December 31, 2021 from $945,000, or an effective rate of approximately 25.54%, compared to the prior year period.

Factors including, but not limited to, loan growth, credit quality and others are used to determine the level of the allowance for loan losses. No provisions for loan loss the provisions for loan loss were recorded during the quarter- and year-to-date periods ending December 31, 2021 while the provisions for loan loss recorded during the quarter- and year-to-date periods ended December 31, 2020 were primarily attributable to credit quality considerations. Management evaluates credit risk on an ongoing basis to determine an appropriate level for the allowance for loan losses.

Total consolidated assets have increased by $48.6 million or 12.02% from $404.3 million at June 30, 2021 to $452.8 million at December 31, 2021. Net loans held for investment have increased by $16.0 million or 5.6% during the first six months of fiscal 2022. Total consolidated deposits have increased by $47.0 million or 13.0% from $361.0 million at June 30, 2021 to $408.0 million at December 31, 2021.

On January 20, 2022, the Board declared a cash dividend in the amount of $0.50 per share to the shareholders of record at the close of business on February 4, 2022, payable on or about February 18, 2022. The Board determined that the payment of a cash dividend was appropriate after consideration of the Company's financial condition and the strength of its core earnings.

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, Canon City and Longmont, Colorado. At December 31, 2021, the Company had 1,032,477 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 anticipated 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.

High Country Bancorp, Inc.

Consolidated Statement of Condition

(Unaudited )

(Rounded to thousands, except share data )

	December 31,		June 30,
	2021	2021
Assets
Cash and due from banks	1,418,000	4,867,000
Interest-earning demand deposits in banks	90,327,000		58,592,000
Cash and Equivalents	91,745,000	63,459,000
Interest-earning time deposits	1,244,000	1,493,000
Securities carried at fair value	41,661,000	36,821,000
Held-to-maturity securities	14,000	19,000
Loans held for sale	2,078,000	2,344,000
Loans held for investment, net of allowance for loan losses	299,219,000	283,258,000
Investment in nonmarketable equity securities	807,000	897,000
Accrued interest receivable	1,180,000	1,280,000
Office and equipment, net	7,713,000	7,904,000
Deferred income taxes	578,000	253,000
Bank Owned Life Insurance	5,834,000	5,770,000
Prepaid expenses and other assets	767,000		766,000
Total Assets	452,840,000	404,264,000

Liabilities and Stockholders' Equity

Liabilities

Deposits

Non-interest-bearing demand deposits	140,235,000	125,553,000
Savings, interest-bearing demand and money market	232,599,000	200,877,000
Time	35,175,000		34,587,000
Total deposits	408,009,000	361,017,000
Escrow accounts	367,000	203,000
Accrued interest payable	1,000	1,000
Accrued income taxes and other liabilities	5,385,000		5,587,000
Total Liabilities	413,762,000	366,808,000

Stockholders' Equity

Common stock, par	10,000	10,000
Paid-in capital	11,162,000	11,007,000
Company common stock held in subsidiary trust	(1,251,000)	(1,251,000)
Accumulated other comprehensive income	69,000	271,000
Retained earnings	29,088,000		27,419,000
Total Stockholders' Equity	39,078,000	37,456,000

Total Liabilities and Stockholders' Equity	452,840,000	404,264,000

High Country Bancorp, Inc.

Consolidated Statement of Operations

Three and Six Months Ending December 31, 2021 and 2020

(Unaudited )

(Rounded to thousands, except share data )

		Three Months Ending December 31,			Six Months Ending December 31,
		2021			2020			2021			2020
Interest Income
Interest and fees on loans	$	4,214,000	$	4,154,000	$	8,826,000	$	8,120,000
Investment securities		132,000			120,000			258,000			251,000
Interest-earning time deposits		8,000			10,000			17,000			20,000
Interest-earning demand deposit accounts		30,000			9,000			57,000			16,000
Total Interest Income		4,384,000			4,293,000			9,158,000			8,407,000
Interest Expense
Deposits		105,000			98,000			205,000			195,000
FHLBank Advances		-			118,000						167,000
Other Borrrowings		-			-						-
Total Interest Expense		105,000			216,000			205,000			362,000
Net Interest Income Before Provision
for Losses on Interest-Earning Assets		4,279,000			4,077,000			8,953,000			8,045,000
Net Provision for Losses on Interest-
Earning Assets		-			250,000			-			550,000
Net Interest Income After Provision
for Losses on Interest-Earning Assets		4,279,000			3,827,000			8,953,000			7,495,000
Noninterest Income
Service Charges on Deposit Accounts		37,000			35,000			72,000			65,000
Income on Loans Sold		468,000			1,296,000			1,107,000			2,187,000
Debit Card Surcharge Income		219,000			181,000			440,000			382,000
Other Noninterest Income		178,000			251,000			380,000			479,000
Total Noninterest Income		902,000			1,763,000			1,999,000			3,113,000
Noninterest Expense
Personnel Compensation and Benefits		2,503,000			2,602,000			5,049,000			4,707,000
Occupancy, Equipment & DP Expense		734,000			585,000			1,420,000			1,136,000
Insurance and Professional Fees		178,000			123,000			362,000			248,000
Other Noninterest Expenses		320,000			439,000			641,000			817,000
Total Noninterest Expense		3,735,000			3,749,000			7,472,000			6,908,000
Net Income Before Provision for Income Taxes		1,446,000			1,841,000			3,480,000			3,700,000
Net Provision for Income Taxes		349,000			472,000			841,000			945,000
Net Income After Provision for Income Taxes		1,097,000			1,369,000			2,639,000			2,755,000
Basic Earnings per Share	$	1.15	$	1.43	$	2.77	$	2.89
Fully Diluted Earnings per Share	$	1.06	$	1.32	$	2.55	$	2.64
Weighted Average Common Shares Outstanding
Basic		953,965			954,543			953,954			953,661

Diluted

1,033,743

1,038,626

1,033,820

1,042,973