U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] Quarterly report under Section 13 or 15 (d) of the Securities Exchange Act
of 1934
For the quarterly period ended September 30, 2002
Commission file number 0-23409
High Country Bancorp, Inc.
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(Exact Name of Small business Issuer as Specified in Its Charter)
Colorado 84-1438612
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(State of Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
7360 West US Highway 50, Salida Colorado 81201
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(Address of Principal Executive Offices)
719-539-2516
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(Issuer's Telephone Number, Including Area Code)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes X No
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State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
Shares of common stock, $.01 par value outstanding as of November 1, 2002
905,409
HIGH COUNTRY BANCORP, INC.
CONTENTS
PART I - FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated Statements of Condition at June 30, 2002 and
September 30, 2002 3
Statements of Consolidated Income for the Three Months
Ended September 30, 2002 and 2001 4
Statements of Consolidated Cash Flows for the Three
Months Ended September 30, 2002 and 2001 5
Notes to Financial Statements 6 - 7
Item 2: Management's Discussion and Analysis or Plan of Operations 8 - 10
Item 3: Controls and Procedures 11
PART II - OTHER INFORMATION
Item 1: Legal Proceedings 12
Item 2: Changes in Securities and Use of Proceeds 12
Item 3: Defaults Upon Senior Securities 12
Item 4: Submission of Matters to a Vote of Security Holders 12
Item 5: Other Information 12
Item 6: Exhibits and Reports on Form 8-K 12
Signatures 13
2
HIGH COUNTRY BANCORP, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
September 30, June 30,
ASSETS 2002 2002
------------------------------
Cash and amounts due from banks $ 3,711,086 $ 2,873,502
Interest- bearing deposits at other institutions 9,069,963 8,590,443
Mortgage-backed securities, held to maturity 9,705,754 10,306,936
Securities, held to maturity 302,860 303,039
Loans receivable - net 143,775,952 143,195,129
Loans held for sale 1,267,900 642,000
Federal Home Loan Bank stock, at cost 2,421,600 2,421,600
Accrued interest receivable 1,353,015 1,299,341
Property and equipment, net 6,059,415 6,069,688
Mortgage servicing rights 4,082 6,788
Prepaid expenses and other assets 551,928 693,583
Deferred income taxes 216,300 183,100
------------- -------------
TOTAL ASSETS $ 178,439,855 $ 176,585,149
============= =============
LIABILITIES AND EQUITY
LIABILITIES
Deposits $ 118,741,554 $ 116,142,046
Advances by borrowers for taxes and insurance 69,650 --
Escrow accounts 66,933 657,271
Accounts payable and other liabilities 1,101,972 1,013,064
Advances from Federal Home Loan Bank 41,591,665 42,641,665
Accrued income taxes payable 225,082 --
------------- -------------
TOTAL LIABILITIES 161,796,856 160,454,046
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Commitments and contingencies
EQUITY
Preferred stock- $.01 par value; authorized 1,000,000
shares; no shares issued or outstanding -- --
Common stock-$.01 par value; authorized 3,000,000 shares;
issued and outstanding 905,409 (September 30, 2002) and
(June 30, 2002) 9,054 9,054
Paid-in capital 7,301,273 7,262,469
Retained earnings - substantially restricted 9,900,169 9,461,842
Note receivable from ESOP Trust (521,065) (521,065)
Deferred MRP stock awards (46,432) (81,197)
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TOTAL EQUITY 16,642,999 16,131,103
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TOTAL LIABILITIES AND EQUITY $ 178,439,855 $ 176,585,149
============= =============
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3
HIGH COUNTRY BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended
September 30,
2002 2001
----------- -----------
Interest Income
Interest on loans $ 3,031,977 $ 3,105,347
Interest on securities held-to-maturity 100,396 35,610
Interest on other interest- bearing assets 57,093 138,411
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Total interest income 3,189,466 3,279,368
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Interest Expense
Deposits 740,686 985,554
Federal Home Loan Bank advances 635,025 672,645
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Total interest expense 1,375,711 1,658,199
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Net interest income 1,813,755 1,621,169
Provision for losses on loans 97,000 60,000
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Net interest income after provision
for loan losses 1,716,755 1,561,169
----------- -----------
Noninterest Income
Service charges on deposits 60,964 62,288
Loans sold 180,706 182,829
Title and escrow fees 49,610 93,615
Other 161,441 92,128
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Total noninterest income 452,721 430,860
----------- -----------
Noninterest Expense
Compensation and benefits 870,505 795,924
Occupancy and equipment 327,812 304,523
Insurance and professional fees 94,418 86,449
Other 163,614 147,551
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Total noninterest expense 1,456,349 1,334,447
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Income before income taxes 713,127 657,582
Income tax expense 274,800 251,500
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Net income $ 438,327 $ 406,082
=========== ===========
Basic Earnings Per Common Share $ 0.51 $ 0.42
=========== ===========
Diluted Earnings Per Common Share $ 0.49 $ 0.42
=========== ===========
Weighted Average Common Shares
Outstanding Basic 858,500 958,142
Diluted 895,405 976,668
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4
HIGH COUNTRY BANCORP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
September 30,
2002 2001
----------- -----------
Operating Activities
Net income $ 438,327 $ 406,082
Adjustments to reconcile net income to net cash provided
by operating activities:
Amortization of:
Deferred loan origination fees (47,666) (44,305)
Premiums on investments 16,123 1,577
Loss on disposition of equipment 1,839 --
Compensation expense on Management Recognition Plan 48,600 --
ESOP market value expense 24,969 15,702
Provision for losses on loans 97,000 60,000
Deferred income taxes (33,200) (17,200)
Depreciation 115,243 115,242
Income taxes 225,082 281,307
Net change in miscellaneous assets 90,687 (7,529)
Net change in miscellaneous liabilities 158,558 34,007
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Net cash provided by operating activities 1,135,562 844,883
----------- -----------
Investing Activities
Net change in interest bearing deposits (479,520) (7,615,756)
Net change in loans receivable (1,256,057) 551,229
Principal repayments of mortgage-backed securities-held-to-maturity 585,238 160,564
Purchases of property and equipment (106,809) (161,337)
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Net cash used by investing activities (1,257,148) (7,065,300)
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Financing Activities
Net change in deposits 2,599,508 8,823,033
Net change in escrow funds (590,338) (8,862)
Purchase of common stock -- (1,705,187)
Proceeds (payment) on FHLB advances (1,050,000) (550,000)
----------- -----------
Net cash provided by financing activities 959,170 6,558,984
----------- -----------
Net increase (decrease) in cash and cash equivalents 837,584 338,567
Cash and cash equivalents, beginning 2,873,502 2,759,671
----------- -----------
Cash and cash equivalents, ending $ 3,711,086 $ 3,098,238
=========== ===========
Supplemental disclosure of cash flow information
Cash paid for:
Taxes -- --
Interest $ 1,396,721 $1,672,483
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5
HIGH COUNTRY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
SEPTEMBER 30, 2002
Note 1. Nature of Business
High Country Bancorp, Inc. (the "Company") was incorporated under the laws of
the State of Colorado for the purpose of becoming the holding company of Salida
Building and Loan Association (the "Association") in connection with the
Association's conversion from a federally chartered mutual savings and loan
association to a federally chartered stock savings and loan association,
pursuant to its Plan of Conversion. The Company was organized in August 1997 to
acquire all of the common stock of Salida Building and Loan Association upon its
conversion to stock form, which was completed on December 9, 1997. In November
1999, the Association incorporated a new subsidiary, High Country Title and
Escrow Company. This company is offering title insurance and escrow closing
services with the Association's market area. In February 2000, the name of
Salida Building and Loan Association was changed to High Country Bank (the
"Bank").
Note 2. Basis of Presentation
The accompanying unaudited consolidated financial statements, (except for the
statement of financial condition at June 30, 2002, which is audited) have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB of Regulation
S-X. Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete financial
statements. In the opinion of management all adjustments necessary for a fair
presentation of the financial position and results of operations for the periods
presented have been included. The financial statements of the Company are
presented on a consolidated basis with those of High Country Bank and it's
subsidiary High Country Title and Escrow Company. The results of operations for
the three months ended September 30, 2002 are not necessarily indicative of the
results of operations that may be expected for the year ended June 30, 2003. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities as the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
The accounting policies followed are as set forth in Note 1. of the Notes to
Financial Statements in the 2002 High Country Bancorp, Inc. financial
statements.
Note 3. Regulatory Capital Requirements
At September 30, 2002, the Bank met each of the three current minimum regulatory
capital requirements. The following table summarizes the Bank's regulatory
capital position at September 30, 2002:
Tangible Capital:
Actual $16,529,000 9.26%
Required 2,678,000 1.50
Excess $13,851,000 7.76%
Core Capital:
Actual $16,529,000 9.26%
Required 5,356,000 3.00
Excess $11,173,000 6.26%
Risk-Based Capital:
Actual $18,091,000 13.90%
Required 10,415,000 8.00
Excess $ 7,676,000 5.90%
6
HIGH COUNTRY BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 2002
Tangible and core capital levels are shown as a percentage of total adjusted
assets; risk-based capital levels are shown as a percentage of risk-weighted
assets.
Note 4. Earnings Per Share
The Company adopted Financial Accounting Standards Board Statement No. 128
relating to earnings per share. The statement requires dual presentations of
basic and diluted earnings per share on the face of the income statement and
requires a reconciliation of the numerator and denominator of the basic EPS
computation to the numerator and denominator of the diluted EPS computation.
Basic EPS excludes dilution and is computed by dividing income available to
common stockholders by the weighted-average number of common shares outstanding
for the period. Diluted EPS reflects the potential dilution that could occur if
securities or other contracts to issue common stock were exercised or converted
into common stock or resulted in the issuance of common stock that then shares
in the earnings of the entity.
7
HIGH COUNTRY BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2002 AND SEPTEMBER 30, 2002
The Company's total assets increased by $1.8 million or 1.1% from $176.6 million
at June 30, 2002 to $178.4 million at September 30, 2002. The increase in assets
was due to growth in cash and amounts due from banks, interest-bearing deposits
and loans.
Interest-bearing deposits increased $500,000 from $8.6 million at June 30, 2002
to $9.1 million at September 30, 2002. The increase was due to principal
reductions of mortgage backed securities and higher savings deposits. In the
upcoming months, the deposits may be used for paying down FHLB advances,
seasonal deposit withdrawals, loan demand and other investment purchases.
Mortgage-backed securities classified as "held to maturity" decreased from $10.3
million at June 30, to $9.7 million at September 30, 2002. The decrease was due
to principal payments. In the upcoming months, the Bank plans to purchase
additional adjustable-rate and short term mortgage backed securities in order to
improve investment yields as compared to interest-bearing deposits and lower
interest rate risk. At September 30, 2002, the securities had an estimated fair
value of $9.6 million.
Net loans increased $1.2 million from $143.8 million at June 30, 2002 to $145.0
million at September 30, 2002. During the three months ended September 30, 2002,
increases of $900,000 single family mortgage loans and $800,000 in single family
construction loans offset a decrease of $600,000 in commercial non-mortgage
loans. Refinancing activity due to low interest rates and local construction
activity have helped single family loan originations.
During the three months ended September 30, 2002, the Bank sold $11.3 million of
fixed-rate loans to the Federal Home Loan Mortgage Corporation. At September 30,
2002, loans held for sale were $1.3 million. The loans are valued at the lower
of cost or market.
As of September 30, 2002 and June 30, 2002, the non-performing loans in the
Bank's portfolio were $1.5 and $1.6 million, respectively. The largest
non-performing loan totals $729,000 and is a business purpose loan secured by
two single family residences and vacant land. No loss is expected on this loan.
The total non-performing loans at September 30, 2002 included 25 loans secured
by commercial real estate, single family residences, vacant land, business
equipment and autos. During the summer of 2002, the Bank's primary lending area
was affected by a major drought and nearby forest fires which negatively
impacted the local tourism economy, which could in turn have a negative impact
on the loan portfolio. The long term impact of lower tourism on the loan
portfolio is not yet certain.
Except as discussed below, the Bank had no loans not classified as
non-performing or restructured where known information about possible credit
problems of borrowers caused management to have serious concerns as to the
ability of the borrowers to comply with present loan repayment terms and may
result in disclosure as non-performing or restructured. As of September 30,
2002, the Bank's loan portfolio included 10 loans totaling $2.2 million to
tourism related businesses which were included on an internal watch list as
potential problem loans. One borrower on 4 of these loans totaling $1.6 million
has applied for SBA disaster assistance and intends to use any assistance
received to repay the loans. The other borrower on the remaining 6 loans
totaling $650,000 is considering asset sales for repayment to avoid
non-performance. These loans are secured by equipment, inventory and commercial
real estate. Although a specific allowance for loss has not been established on
these loans, management considered the potential risk of loss on these loans in
establishing the provision for loan losses for the three months ended September
30, 2002.
The allowance for loan losses totaled $1.6 million at September 30, 2002 and
$1.5 million at June 30,
8
HIGH COUNTRY BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
2002. At September 30, 2002 and June 30, 2002, the ratio of the allowance for
loan losses to net loans was 1.08% and 1.03%, respectively. During the three
months ended September 30, 2002, there was $20,000 of loans charged off and no
recoveries of previous loan losses. The determination of the allowance for loan
losses is based on a review and classification of the Bank's portfolio and other
factors, including the market value of the underlying collateral, growth and
composition of the loan portfolio, the relationship of the allowance for loan
losses to outstanding loans, historical loss experience, delinquency trends and
prevailing economic conditions. Particular attention was focused on the Bank's
commercial loan portfolio and any impaired loans. The Bank believes the current
level of allowance for loan losses is adequate to provide for probable future
losses, although there are no assurances that probable future losses, if any,
will not exceed estimated amounts.
At September 30, 2002 deposits increased $2.6 million to $118.7 million from
$116.1 million at June 30, 2002. Competitive rates, seasonal growth and stock
market uncertainty fueled the growth. The increase funded loan growth and the
pay down of Federal Home Loan Bank advances.
Escrow accounts decreased from $657,000 at June 30, 2002 to $67,000 at September
30, 2002. The decrease was due to a change at High Country Title and Escrow
Company which limited escrow closing services and the associated accounts.
Advances from the Federal Home Loan Bank decreased to $41.6 million at September
30, 2002 from $42.6 million at June 30, 2002. Funds from deposits were used to
pay-off maturing advances.
COMPARISON OF OPERATING RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
AND 2001
Net Income. The Company's net income for the three months ended September 30,
2002 was $438,000 compared to $406,000 for the three months ended September 30,
2001. The increase in net income resulted primarily from increased net interest
income which offset increased non-interest expenses of compensation, occupancy
and other operating expense.
Net Interest Income. Net interest income for the three months ended September
30, 2002 was $1.8 million compared to $1.6 million for the three months ended
September 30, 2001. Although both interest earning assets and interest bearing
liabilities increased, the cost of interest bearing liabilities decreased at a
greater rate than the yield on interest earning assets. The average yield on
interest earning assets decreased from 8.45% for the three months ended
September 30, 2001 to 7.63% for the three months ended September 30, 2002. The
decrease due to loans refinancing at lower rates was partially offset by
reinvestment since September 2001 of low yielding Federal Home Loan Bank
Overnight Deposits into slightly higher earning mortgage backed securities. The
average cost of interest bearing liabilities also decreased from 4.75% for the
three months ended September 30, 2001 to 3.65% for the three months ended
September 30, 2002. The decrease in costs was due to lower deposit rates and
less reliance on higher costing Federal Home Loan Advances. The interest rate
spread increased from 3.70% for the three months ended September 30, 2001 to
3.99% for the three months ended September 30, 2002.
Provision for Losses on Loans. The provision for loan loss was $97,000 for the
three months ended September 30, 2002 as compared to $60,000 for the three
months ended September 30, 2001. The increase was the result of provisions for
loans impacted by the drought and auto loan charge offs.
Non-interest Income. Non-interest income was $453,000 for the three months ended
September 30, 2002 as compared to $431,000 for the three months ended September
30, 2001. Title and escrow fees
9
HIGH COUNTRY BANCORP, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
declined due to a change at High Country Title and Escrow Company which limited
escrow closing services and associated fees. This decrease in title and escrow
fees was offset by an increase in other non-interest income. The increase in
other income was primarily due to higher loan origination fees.
Non-interest Expenses. Non-interest expenses were $1.5 million for the three
months ended September 30, 2002 as compared to $1.3 million for the three months
ended September 30, 2001. Increases occurred in compensation and benefit
expense, occupancy expense and other expenses. The increases are tied to
additional employees associated with growth.
LIQUIDITY AND CAPITAL RESOURCES
The Company's primary sources of funds consist of deposits, FHLB advances,
repayment of loans and mortgage-backed securities, maturities of investments and
interest-bearing deposits, and funds provided from operations. While scheduled
repayments of loans and mortgage-backed securities and maturities of investment
securities are predicable sources of funds, deposit flows and loan prepayments
are greatly influenced by the general level of interest rates, economic
conditions and competition. The Company uses its liquidity resources principally
to fund existing and future loan commitments, to fund maturing certificates of
deposit and demand deposit withdrawals, to fund maturing FHLB advances, to
invest in other interest-earning assets, to maintain liquidity, and to meet
operating expenses. Management believes that proceeds from loan repayments and
other sources of funds will be adequate to meet the Company's liquidity needs
for the immediate future.
The Bank is required to maintain sufficient liquidity to ensure a safe and sound
operation. Management believes that the Bank's sources of liquidity for
potential uses are adequate under the current regulations.
IMPACT OF INFLATION AND CHANGING PRICES
The financial statements and related data presented herein have been prepared in
accordance with generally accepted accounting principles, which require the
measurement of financial position and results of operations in terms of
historical dollars without considering changes in the relative purchasing power
of money over time because of inflation. Unlike most industrial companies,
virtually all of the assets and liabilities of the Company are monetary in
nature. As a result, interest rates have a more significant impact on the
Company's performance than the effects of general levels of inflation. Interest
rates do not necessarily move in same direction or in the same magnitude as the
prices of goods and services.
FORWARD LOOKING STATEMENTS
This report contains certain forward-looking statements made 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.
10
HIGH COUNTRY BANCORP, INC.
CONTROLS AND PROCEDURES
Item 3. Controls and Procedures
Within 90 days prior to the date of this report, the Company carried out an
evaluation, under the supervision and with the participation of the principal
executive officer and principal financial officer, of the effectiveness of the
design and operation of our disclosure controls and procedures. Based on this
evaluation, the principal executive officer and principal financial officer
concluded that the Company's disclosure controls and procedures are effective in
timely alerting them to material information required to be included in the
Company's periodic SEC reports. It should be noted that the design of any system
of controls is based in part upon certain assumptions about the likelihood of
future events, and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions, regardless of
how remote.
In addition, the Company reviewed its internal controls, and there have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect those controls subsequent to the date of their last
evaluation.
11
HIGH COUNTRY BANCORP, INC.
PART II - OTHER INFORMATION
ITEM 1: Legal Proceedings
None
ITEM 2: Changes in Securities and Use of Proceeds
None
ITEM 3: Defaults Upon Senior Securities
Not Applicable
ITEM 4: Submission of Matters to a Vote of Security Holders.
None
ITEM 5: Other Information
None
ITEM 6: Exhibits and Reports on Form 8-K
(a) Exhibits
The following exhibit is filed herewith:
Exhibit
Number Title
------- -----
99 Certification Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
(b) Reports on Form 8-K
None
12
SIGNATURES
Pursuant to the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
High Country Bancorp, Inc.
Registrant
Date November 8, 2002 /s/ Larry D. Smith
---------------- ----------------------------------------
Larry D. Smith
President and Chief Executive Officer
(Duly Authorized Officer)
Date November 8, 2002 /s/ Frank L. DeLay
---------------- ----------------------------------------
Frank L. DeLay
Chief Financial Officer
(Principal Financial Officer)
13
CERTIFICATION
I, Larry D. Smith, President and Chief Executive Officer of High Country
Bancorp, Inc., certify that:
1. I have reviewed this quarterly report on Form 10-QSB of High Country Bancorp,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 8, 2002
/s/ Larry D. Smith
--------------------------------------
Larry D. Smith
President and Chief Executive Officer
CERTIFICATION
I, Frank L. DeLay, Chief Financial Officer of High Country Bancorp, Inc.,
certify that:
1. I have reviewed this quarterly report on Form 10-QSB of High Country Bancorp,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this quarterly
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all material
respects the financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:
a) designed such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others within those entities, particularly during the
period in which this quarterly report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure controls and
procedures as of a date within 90 days prior to the filing date of this
quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the effectiveness of
the disclosure controls and procedures based on our evaluation as of the
Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant's auditors and the audit committee of
the registrant's board of directors (or persons performing the equivalent
function):
a) all significant deficiencies in the design or operation of internal controls
which could adversely affect the registrant's ability to record, process,
summarize and report financial data and have identified for the registrant's
auditors any material weaknesses in internal controls; and
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal
controls or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any corrective
actions with regard to significant deficiencies and material weaknesses.
Date: November 8, 2002
/s/ Frank L. DeLay
--------------------------------------
Frank L. DeLay
Chief Financial Officer