HIGH COUNTRY BANCORP : 3Q 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 March 31, 2022. For the third quarter of fiscal 2022, the Company's consolidated net income was $843,000 or $0.88 per share, compared to $1.2 million or $1.24 per share for the quarter ended March 31, 2021. For the nine-month fiscal year-to-date period ended March 31, 2022, consolidated net income was $3.5 million or $3.63 per share, compared to $3.9 million or $4.13 per share for the nine months ended March 31, 2021.

The Company's net interest income increased by $380,000 or 10.0% during the quarter ended March 31, 2022 compared to the prior year period primarily due to growth in loans and reduction to borrowing costs, partially offset by the impact of a decline in yield on loans. Noninterest income declined by $600,000 or 43.7% during the quarter ended March 31, 2022 compared to the prior year period primarily due to declines in income on loans sold and other noninterest income. Lower market interest rates are generally more conducive to residential mortgage loan refinance and purchase activity, and the level of residential mortgage loans originated and sold by the Company has been adversely impacted by increases in market interest rates. Noninterest expense increased by $232,000 or 6.4% during the quarter ended March 31, 2022 compared to the prior year period primarily due to increases in occupancy, equipment and data processing expense and professional fees. The Company's provision for income taxes declined to $268,000, or an effective tax rate of approximately 24.1%, during the quarter ended March 31, 2022 from $374,000, or an effective rate of approximately 23.9% during the prior year period.

For the nine months ended March 31, 2022, the Company's net interest income increased by $1.3 million or 10.9% compared to the prior year period primarily due to growth in loans and reduction to borrowing costs, partially offset by the impact of a decline in yield on loans. Noninterest income declined by $1.7 million or 38.2% during the nine months ended March 31, 2022 compared to the prior year period primarily due to declines in income on loans sold and other noninterest income. Similar to as stated above, the level of residential mortgage loans originated and sold by the Company has been adversely impacted by increases in market interest rates. Noninterest expense increased by $812,000 or 7.7% during the nine months ended March 31, 2022 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 expense, partially offset by a decline in other noninterest expenses. The Company's provision for income taxes declined to $1.1 million, or an effective tax rate of approximately 24.2%, during the nine months ended March 31, 2022 from $1.3 million, or an effective rate of approximately 25.0%, 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 provision for loan loss was recorded during the quarters ended March 31, 2022 and 2021, respectively. No provision was recorded during the nine months ended March 31, 2022, while a provision of $550,000 was recorded during the prior nine-month periods ended March 31, 2021. 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 $48.2 million or 11.93% from $404.3 million at June 30, 2021 to $452.5 million at March 31, 2022. Net loans held for investment have increased by $16.5 million, or 5.8%, during the first nine months of fiscal 2022. Total consolidated deposits increased by $48.2 million or 13.3% from $361.0 million at June 30, 2021 to $409.2 million at March 31, 2022.

On April 21, 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 May 6, 2022, payable on or about May 20, 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 March 31, 2022, 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 )

June 30,
2021
Assets
Cash and due from banks	4,867,000
Interest-earning demand deposits in banks	84,688,000	58,592,000
Cash and Equivalents	91,109,000	63,459,000
Interest-earning time deposits	1,244,000	1,493,000
Securities carried at fair value	41,472,000	36,821,000
Held-to-maturity securities	11,000	19,000
Loans held for sale	1,152,000	2,344,000
Loans held for investment, net of allowance for loan losses	299,747,000	283,258,000
Investment in nonmarketable equity securities	807,000	897,000
Accrued interest receivable	1,130,000	1,280,000
Office and equipment, net	7,442,000	7,904,000
Deferred income taxes	899,000	253,000
Bank Owned Life Insurance	5,865,000	5,770,000
Prepaid expenses and other assets	1,602,000	766,000
Total Assets	452,480,000	404,264,000
Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest-bearing demand deposits	138,853,000	125,553,000
Savings, interest-bearing demand and money market	234,814,000	200,877,000
Time	35,541,000	34,587,000
Total deposits	409,208,000	361,017,000
Escrow accounts	255,000	203,000
Accrued interest payable	1,000	1,000
Accrued income taxes and other liabilities	4,764,000	5,587,000
Total Liabilities	414,228,000	366,808,000
Stockholders' Equity
Common stock, par	10,000	10,000
Paid-in capital	11,201,000	11,007,000
Company common stock held in subsidiary trust	(1,251,000)	(1,251,000)
Accumulated other comprehensive income (loss)	(1,162,000)	271,000
Retained earnings	29,454,000	27,419,000
Total Stockholders' Equity	38,252,000	37,456,000
Total Liabilities and Stockholders' Equity	452,480,000	404,264,000

6,421,000

March 31, 2022

High Country Bancorp, Inc.

Consolidated Statement of Operations

Three and Nine Months Ending March 31, 2022 and 2021

(Unaudited )

(Rounded to thousands, except share data )

Three Months Ending March 31,2022

Interest Income

Interest and fees on loans Investment securities Interest-earning time deposits Interest-earning demand deposit accounts

Total Interest Income

Interest Expense

Deposits

FHLBank term advances Other borrrowings

Total Interest Expense

Net Interest Income Before Provision for Losses on Interest-Earning Assets

Net Provision for Losses on Interest-

Earning Assets

$

4,104,000

134,000

8,000

31,000

4,277,000

104,000 - - 104,000

4,173,000

-

2021

$

3,876,000

120,000

10,000

13,000

4,019,000

Nine Months Ending March 31,2022

2021

$

12,930,000

392,000 371,000

25,000 30,000

88,000 29,000

13,435,000

$

11,995,000

12,425,000

98,000

309,000 293,000

128,000 - 295,000

- 226,000

3,793,000

-- 309,000

13,126,000

-- 588,000

11,837,000

550,000

Net Interest Income After Provision for Losses on Interest-Earning Assets

Noninterest Income

Service Charges on Deposit Accounts Income on Loans Sold

Debit Card Surcharge Income Other Noninterest Income

Total Noninterest Income

Noninterest Expense

Personnel Compensation and Benefits Occupancy, Equipment & DP Expense Insurance and Professional Fees

Other Noninterest Expenses

Total Noninterest Expense

Net Income Before Provision for Income Taxes

4,173,000

37,000

377,000

205,000

155,000

774,000

2,487,000

766,000

207,000

376,000

3,836,000 1,111,000

3,793,000

34,000

926,000

180,000

234,000

1,374,000

2,467,000

643,000

121,000

373,000

3,604,000

1,563,000

13,126,000

11,287,000

109,000 1,485,000

98,000 3,113,000

645,000 562,000

534,000 713,000

2,773,000

4,486,000

7,536,000 7,174,000

2,186,000 1,779,000

569,000 1,031,000 11,322,000

4,577,000

369,000 1,188,000 10,510,000

5,263,000

Net Provision for Income Taxes

Net Income After Provision for Income Taxes

268,000 843,000

374,000

1,189,000

1,109,000 3,468,000

1,319,000 3,944,000

Basic Earnings per Share

$

0.88

$

1.24

$

3.63 $ 4.13

Fully Diluted Earnings per Share

Weighted Average Common Shares Outstanding

Basic

$

0.82

$

1.15

$

3.36 $ 3.80

Diluted

958,347 1,032,477

956,743 1,036,037

955,397 1,033,379

954,673 1,037,369