EX-99.1 3 exhibit99-1.txt EXHIBIT 99.1 HIGH COUNTRY FINANCIAL CORPORATION For Immediate Release High Country Financial Corporation Announces Third Quarter Earnings BOONE, NC, November 10, 2003 - High Country Financial Corporation (NASDAQ: HGCF and HGCFU) today reported continued improvements to year-over-year earnings for its third quarter ended September 30, 2003 and its year-to-date results. Net income was $345,562 for the quarter ended September 30, 2003, compared to $46,891 for the same quarter in 2002, an increase of 636.9%. Fully diluted earnings per share were $.19 for the quarter, compared to $.03 for the third quarter in 2002. Net income was $849,198 for the nine months ended September 30, 2003, compared to $390,010 for the same period in 2002, an increase of 117.7%. Fully diluted earnings per share were $.56 for the period, compared to $.27 for the same period in 2002. Deposits grew from $144.3 million to $162.2 million from September 30, 2002 to September 30, 2003, an increase of 12.4%. Loans grew by 21.7% for the same period, increasing from $127.7 million to $155.4 million. The Bank continued to fund a portion of the loan growth by absorbing Federal funds and principal prepayments from mortgage-backed securities, resulting in a decrease in investments and interest-bearing deposits with banks from $28.1 million to $15.4 million for the period, or 45.2%. As part of its continuing evaluation of economic and credit conditions, the Bank increased its provision for loan losses from 1.25% of loans at September 30, 2002, to 1.30% of loans at September 30, 2003. Total assets amounted to $182.4 million at September 30, 2003 compared to $164.8 million at September 30, 2002, an increase of 10.7%. Total interest income for the three months ended September 30, 2003 increased 1.5% compared to the same period in 2002 and for the nine months ended September 30, 2003 increased by 6.8% compared to the same period in 2002. Interest expense declined by 15.9% and 7.4%, for the three and nine-month periods, respectively, compared to the same periods in 2002. High Country Bank CEO and President, John Brubaker, stated, "Our third quarter looked especially favorable compared to the same quarter last year because of our continued loan growth, our increased ratio of loans to total assets, and because of certain non-recurring charges in last year's third quarter. Year-to-date, our numbers reflect much-improved results, and are our best first three fiscal quarters since we opened the Bank. Our net interest margin continues to improve with each passing month. We continue to benefit from strong contributions from non-interest income, including mortgage origination fees that, while slowing, are still ahead of last year. We continue to fund our loan growth with deposits, Federal funds, and the orderly liquidation of our mortgage-backed securities. We have yet to draw from our new credit facility from the Federal Home Loan Bank of Atlanta with available lines amounting to over $30 million. 1 "We look eagerly ahead to our upcoming shareholders' meeting on December 18, 2003 to vote on our merger with Yadkin Valley Bank and Trust Company in Elkin, North Carolina. Our Joint Proxy Statement has now been mailed to all shareholders of record as of October 31, 2003. We encourage each shareholder to read the Joint Proxy Statement carefully. We expect the merger, once approved, to close on January 1, 2004." High Country Financial Corporation is the parent of High Country Bank, a community bank operating five branches in Watauga and Ashe Counties, North Carolina. The Bank was created in 1998 by a group of local residents whose purpose was to restore personal attention, quality service and innovative products to banking. High Country Financial Corporation, the holding company, was formed on July 1, 2002. An estimated 1,600 stockholders hold 1,420,649 shares outstanding at the end of the third quarter 2003. Additional information about High Country Bank is available on its website at www.highcountrybank.com. ------------------------ - - - - - - - - Please see "Financial Highlights" tables, which are attached. For Further information, contact: David H. Harman, Chief Financial Officer E-mail: dharman@highcountrybank.com Voice: (828) 265-4333 or Fax (828) 265-2808 --------------------------- High Country Financial Corporation, 149 Jefferson Road, Boone, NC 28607 This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of the Company. These forward-looking statements involve risks and uncertainties and are based on the beliefs and assumptions of management of the Company and on the information available to management at the time that these disclosures were prepared. These statements can be identified by the use of words like "expect," "anticipate," "estimate" and "believe," variations of these words and other similar expressions. Readers should not place undue reliance on forward-looking statements as a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to (1) competition in the Company's markets, (2) changes in the interest rate environment, (3) general national, regional or local economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and the possible impairment of collectibility of loans, (4) legislative or regulatory changes, including changes in accounting standards, and (5) the impact of changes in monetary and fiscal policies, laws, rules and regulations. The Company undertakes no obligation to update any forward-looking statements. 2

Consolidated Balance Sheet Ratios Investments to assets 8.44% 17.05% Loans to assets 85.19% 77.52% Loans to deposits 95.84% 88.52% Allowance for loan loss to loans 1.30% 1.25% Earning assets to assets 92.52% 93.60% Deposits to assets 88.89% 87.57% Other interest-bearing liabilities to assets 1.90% 2.93% Stockholders' equity to total assets 8.89% 9.17%

HIGH COUNTRY FINANCIAL CORP 8-K