[ L O G O ]




                           HIGH COUNTRY BANCORP, INC.


                                ANNUAL REPORT FOR

                                 THE YEAR ENDED

                                  JUNE 30, 2003

<PAGE>

                     [HIGH COUNTRY BANCORP, INC. LETTERHEAD]


TO OUR STOCKHOLDERS:

     Management  and the Board of Directors of High  Country  Bancorp,  Inc. are
pleased to present this 2003 Annual Report to the Stockholders. We thank you for
your continued support during the successful completion of another year.

     During Fiscal 2003, assets increased from $176.6 Million to $187.4 Million.
This growth was a result of continued  growth in the deposit  base,  as well as,
continued loan demand.  As a result,  we experienced  record  earnings in Fiscal
2003 of $1.95  Million.  This is an increase of 17% from $1.67 Million in Fiscal
2002. Diluted earnings per share was $2.15 for Fiscal 2003, as compared to $1.85
for Fiscal 2002. Book value per share increased from $17.82 to $19.95 per share.

     The Board of Directors  continues to work  diligently to manage the balance
sheet in the  current  challenging  economy.  We  continue  to retain  qualified
employees to maintain the current  level of business and growth.  Asset  quality
continues to be a concern and a challenge  as a result of the  national  economy
and the  aftermath  of last year's  devastating  drought  and  reduced  tourism.
Management and the Board of Directors have met this challenge and feel that they
are making progress with helping many borrowers and businesses  regain financial
stability.

     We continue to repurchase stock when available. Our Secondary Mortgage Loan
Department  processed  record levels of loans for the second  straight year. The
Commercial  Loan  Department  and Consumer  Loan  Department  have  successfully
maintained  growth.  The  Operations  Department  has  continued  to  grow  core
deposits. The branch offices in Salida, Buena Vista, and Leadville have improved
their  operations.  Additionally,  the mortgage loan production  office in Canon
City has also increased its volume. We continue to study expansion  alternatives
in the area.

     Our 117 years of service to the  communities  and  financial  stability has
allowed  us to  contribute  to the  growth of the area.  We have  continued  our
commitment to local customers.

     Again,  we appreciate your continued  support.  Please review our Financial
Report, as we look forward to meeting the challenges ahead of us.

Sincerely,

/s/ Larry D. Smith

Larry D. Smith
President and CEO

                                       1
<PAGE>

                 SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA


SELECTED FINANCIAL CONDITION DATA:

                                                         AT JUNE 30,
                                                 ----------------------
                                                    2003        2002
                                                 ---------   ----------
                                                 (DOLLARS IN THOUSANDS)

Total assets ..................................   $187,383   $176,585
Cash and amounts due from banks ...............      5,527      2,874
Interest-earning deposits at other
  institutions ................................      7,492      8,590
Securities available for sale .................         --         --
Mortgage backed Securities held to maturity ...     10,471     10,610
Loans receivable, net .........................    152,655    143,837
Deposits ......................................    129,216    116,142
FHLB Advances .................................     39,325     42,642
Stockholders' equity ..........................     17,722     16,131
______________________________________________

Number of:
    Real estate loans outstanding .............      1,070      1,179
    Savings accounts ..........................     14,903     14,049
    Full-service offices ......................          4          4



SELECTED OPERATIONS DATA:

                                          YEAR ENDED JUNE 30,
                                           2003      2002
                                          -------   -------
                                            (IN THOUSANDS)

Interest income .......................   $12,677   $12,756
Interest expense ......................     5,121     6,068
                                          -------   -------
    Net interest income ...............     7,556     6,688
Provision for loan losses .............       577       236
                                          -------   -------

    Net interest income after provision
      for loan losses .................     6,979     6,452
                                          -------   -------
Noninterest income ....................     2,155     1,863
                                          -------   -------
    Subtotal ..........................     9,134     8,315
                                          -------   -------

Noninterest expense:
  Compensation and benefits ...........     3,551     3,379
  Other ...............................     2,399     2,238
                                          -------   -------
    Total noninterest expense .........     5,950     5,617
                                          -------   -------
Income before income taxes ............     3,184     2,698
Income tax expense ....................     1,236     1,027
                                          -------   -------
    Net income ........................   $ 1,948   $ 1,671
                                          =======   =======


                                       2
<PAGE>

OPERATING RATIOS:


                                                              AT OR FOR THE YEAR
                                                                 ENDED JUNE 30,
                                                              ------------------
                                                                 2003     2002
                                                              --------- --------

PERFORMANCE RATIOS:

Return on assets (ratio of net earnings
  to average total assets) ...............................        1.08%   0.99%

Return on equity (ratio of net earnings to
  average equity) ........................................       11.50   10.54

Ratio of average interest-earning assets to
  average interest-bearing liabilities ...................      111.40  110.31

Ratio of net interest income, after provision
  for loan losses, to noninterest expense ................      117.30  114.84

Net interest rate spread  (difference between weighted
  average yield on interest-earning assets and weighted
  average cost of interest-bearing liabilities) ..........        4.09    3.80

Net yield on average interest-earning assets .............        4.44    4.19



QUALITY RATIOS:

Non-performing loans to total loans at end of period .....        1.93    1.13

Non-performing loans to total assets .....................        1.58    0.92

Non-performing assets to total assets
  at end of period .......................................        1.67    0.96

Allowance for loan losses to non-performing
  loans at end of period .................................       51.08   91.27

Allowance for loan losses to total loans .................        0.99    1.03

CAPITAL RATIOS:

Equity to total assets at end of period ..................        9.46    9.13

Average equity to average assets .........................        9.36    9.35

                                       3
<PAGE>

                      BUSINESS OF THE COMPANY AND THE BANK



     HIGH COUNTRY BANCORP,  INC. High Country Bancorp,  Inc. (the "Company") was
incorporated  under the laws of the  State of  Colorado  in August  1997 for the
purpose of becoming a savings and loan holding  company for Salida  Building and
Loan  Association  which  changed its name to High  Country Bank (the "Bank") in
February 2000. On December 9, 1997,  the Bank  consummated  its conversion  from
mutual to stock form (the  "Conversion")  and the Company  completed its initial
public offering of common stock.The  Company engages in no significant  activity
other than holding the stock of the Bank and operating the business of a savings
and loan association through the Bank. Accordingly, the information set forth in
this report,  including financial statements and related data, relates primarily
to the Bank and its subsidiaries.

     The  Company's  executive  offices  are located at 7360 West US Highway 50,
Salida, Colorado. Its telephone number is (719) 539-2516.

     HIGH COUNTRY BANK. The Bank is a federal stock savings and loan association
operating through offices located in Salida (2), Colorado, Buena Vista, Colorado
and Leadville,  Colorado and serving Chaffee, Lake, Western Fremont and Saguache
Counties in Colorado.  The Bank also maintains a loan production office in Canon
City,  Colorado.  The Bank was  chartered  in 1886 as the first  state-chartered
building and loan association in Colorado.  The Bank received federal  insurance
of its deposit accounts and became a member of the FHLB in 1937. The Bank became
a federally  chartered  association  on August 16, 1993 under the name of Salida
Building and Loan  Association.  Effective  December 9, 1997,  the Bank became a
stock savings and loan association. The Company's subsidiary, High Country Title
and Escrow Company,  offers title  insurance and escrow closing  services within
the Bank's  market area.  At June 30, 2003,  the Bank had total assets of $187.4
million,  loans  receivable  (net) of $152.7  million,  total deposits of $129.2
million and equity of $17.7 million.

     Historically, the Bank has operated as a traditional savings institution by
emphasizing the origination of loans secured by one- to four-family  residences.
Since fiscal 1996,  the Bank has  significantly  increased  its  origination  of
consumer,  commercial business and commercial real estate loans, including loans
for the  purchase  and  development  of raw land,  most of which loans have been
originated in its market area.

     The Bank is subject to  examination  and  comprehensive  regulation  by the
Office of Thrift  Supervision  ("OTS"),  and the  Bank's  savings  deposits  are
insured  up to  applicable  limits by the  Savings  Association  Insurance  Fund
("SAIF"),  which is administered by the Federal  Deposit  Insurance  Corporation
("FDIC").  The Bank is a member of and owns  capital  stock in the Federal  Home
Loan Bank  ("FHLB")  of Topeka,  which is one of 12  regional  banks in the FHLB
System.  The Bank is further subject to regulations of the Federal Reserve Board
governing  reserves to be  maintained  and certain  other  matters.  Regulations
significantly affect the operations of the Bank.

     The Bank's  executive  offices  are  located  at 7360 West US  Highway  50,
Salida, Colorado 81201-0309 and its main telephone number is (719) 539-2516.

                                       4
<PAGE>


                     MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                  FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

     Prior to the acquisition of all of the  outstanding  stock of the Bank, the
Company had no assets or  liabilities  and  engaged in no  business  activities.
Since its  acquisition  of the Bank,  the Company has engaged in no  significant
activity other than holding the stock of the Bank, investing the net proceeds of
the  offering  and  operating  the  business of a savings  and loan  association
through  the  Bank.  Accordingly,  the  information  set  forth in this  report,
including financial statements and related data, relates primarily to the Bank.

     The principal  business of the Bank consists of accepting deposits from the
general  public and investing  these funds  primarily in loans and in investment
securities and  mortgage-backed  securities.  The Bank's loan portfolio consists
primarily of loans secured by residential  real estate,  as well as,  commercial
real estate,  commercial  business,  land development and consumer loans in it's
market area.

     The Bank's net income is dependent  primarily  on its net interest  income,
which is the difference  between interest income earned on its loan,  investment
securities  and  mortgage-backed  securities  portfolio  and  interest  paid  on
interest-bearing   liabilities  which  primarily   includes  deposits  and  FHLB
advances. Net interest income is determined by (i) the difference between yields
earned on interest-earning assets and rates paid on interest-bearing liabilities
("interest  rate  spread")  and (ii) the  relative  amounts of  interest-earning
assets and  interest-bearing  liabilities.  The Bank's  interest  rate spread is
affected by regulatory, economic and competitive factors that influence interest
rates, loan demand and deposit flows. To a lesser extent,  the Bank's net income
also is affected by the level of noninterest  expenses such as compensation  and
employee  benefits and operating  expenses.  In addition to net interest income,
the bank earns a substantial amount of fee income such as the profit on the sale
of residential loans to the secondary market.

     The  operations  of the  Bank  are  significantly  affected  by  prevailing
economic  conditions,  competition  and  the  monetary,  fiscal  and  regulatory
policies of  governmental  agencies.  Lending  activities  are influenced by the
demand  for and  supply of  housing,  competition  among  lenders,  the level of
interest rates and the  availability of funds.  Deposit flows and costs of funds
are  influenced by prevailing  market rates of interest,  primarily on competing
investments, account maturities and the levels of personal income and savings in
the Bank's market area.

FORWARD-LOOKING STATEMENTS

     When used in this Annual Report, the words or phrases "will likely result,"
"are expected to," "will continue," "is anticipated,"  "estimate,"  "project" or
similar expressions are intended to identify "forward-looking statements" within
the  meaning 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,  demand for loans in the
Company's  market area,  competition  and  information  provided by  third-party
vendors 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 speak only as of the date made.  The Company wishes to advise
readers  that the factors  listed  above could  affect the  Company's  financial
performance  and could cause the Company's  actual results for future periods to
differ  materially  from any opinions or  statements  expressed  with respect to
future periods in any current statements.

     The Company does not undertake,  and specifically disclaims any obligation,
to  publicly  release  the  result  of any  revisions  which  may be made to any
forward-looking  statements to reflect events or circumstances after the date of
such  statements or to reflect the occurrence of  anticipated  or  unanticipated
events.

                                       5
<PAGE>

ASSET/LIABILITY MANAGEMENT

     The  Bank's  asset/liability  management  strategy  has  been to  emphasize
shorter  term loans and develop a deposit  portfolio  of  transaction  accounts.
Beginning in late fiscal 1999 the Bank began selling long-term  fixed-rate loans
in the secondary market.  The Bank's business plan calls for continued  emphasis
on shorter term  residential  mortgage  loans and sales of long-term  fixed-rate
loans.

     As noted  above,  the Bank is seeking to reduce its  exposure to changes in
interest  rates by  originating  shorter term consumer and  commercial  business
loans with maturities of 3 to 5 years and by selling long-term fixed-rate loans.
The matching of the Bank's assets and  liabilities  may be analyzed by examining
the extent to which its assets and  liabilities  are interest rate sensitive and
by  monitoring  the expected  effects of interest rate changes on the Bank's net
interest income.

     An asset or liability is interest  rate  sensitive  within a specific  time
period if it will  mature or  reprice  within  that time  period.  If the Bank's
assets  mature  or  reprice  more  quickly  or  to a  greater  extent  than  its
liabilities,  the Bank's net portfolio  value and net interest income would tend
to increase during periods of rising interest rates, but decrease during periods
of falling interest rates. If the Bank's assets mature or reprice more slowly or
to a lesser extent than its liabilities,  the Bank's net portfolio value and net
interest  income would tend to decrease  during periods of rising interest rates
but  increase  during  periods of  falling  interest  rates.  As a result of the
interest rate risk inherent in the historical  savings  institution  business of
originating long-term loans funded by short-term deposits,  the Bank has pursued
certain  strategies  designed to decrease the  vulnerability  of its earnings to
material and prolonged changes in interest rates.

NET PORTFOLIO VALUE

     In recent  years,  the Bank  measures  its  interest  rate  sensitivity  by
computing  the "gap" between the assets and  liabilities  which were expected to
mature or reprice within certain  periods,  based on assumptions  regarding loan
prepayment  and deposit  decay rates  formerly  provided by the OTS.  Currently,
interest  rate  sensitivity  is calculated to determine the amounts by which the
net present value of an  institution's  cash flows from assets,  liabilities and
off balance sheet items (the  institution's net portfolio value, or "NPV") would
change in the event of a range of  assumed  changes  in market  interest  rates.
These   computations   estimate  the  effect  on  an   institution's   NPV  from
instantaneous and permanent increases and decreases in market interest rates. In
the  Bank's  interest  rate  sensitive  policy,   the  Board  of  Directors  has
established a maximum  decrease in net interest income and maximum  decreases in
NPV given these instantaneous changes in interest rates.

                                       6
<PAGE>


     The following table sets forth the interest rate  sensitivity of the Bank's
net  portfolio  value  as of  June  30,  2003  in the  event  of  1%,  2% and 3%
instantaneous  and  permanent  increases  and a 1%  instantaneous  and permanent
decrease in market  interest  rates,  respectively.  These changes are set forth
below as basis points, where 100 basis points equals one percentage point.


<TABLE>
<CAPTION>
                         NET PORTFOLIO VALUE             NPV AS % OF PORTFOLIO VALUE OF ASSETS
       CHANGE    ------------------------------------    -------------------------------------
      IN RATES   $ AMOUNT    $ CHANGE        % CHANGE      NPV RATIO      BASIS POINT CHANGE
      --------   --------    --------        --------      ---------      ------------------
                          (DOLLARS IN THOUSANDS)

      <S>        <C>          <C>               <C>       <C>                   <C>
      + 300 bp    $25,786      $(199)            (1)%      13.16%                24 bp
      + 200 bp     26,303        318              1        13.28                 36
      + 100 bp     26,354        369              1        13.20                 27
          0 bp     25,985                                  12.92
      - 100 bp     25,315       (670)            (3)       12.51                (41)

</TABLE>

     The following table sets forth the interest rate risk capital component for
the Bank at June 30,  2003 given a  hypothetical  200 basis point rate change in
market interest rates.

                                                                  JUNE 30, 2003
                                                                  -------------

Pre-shock NPV Ratio: NPV as % of Portfolio Value of Assets.......     12.92%
Exposure Measure: Post-Shock NPV Ratio...........................     13.28%
Sensitivity Measure: Change in NPV Ratio.........................      36 bp


     Computations of prospective  effects of hypothetical  interest rate changes
are based on numerous assumptions,  including relative levels of market interest
rates and loan  prepayments,  and should  not be relied  upon as  indicative  of
actual  results.  Further,  the  computations do not contemplate any actions the
Bank may undertake in response to changes in interest rates.

     Certain  shortcomings  are inherent in the method of analysis  presented in
both the  computation  of NPV and in the  analysis  presented  in  prior  tables
setting  forth  the  maturing  and  repricing  of  interest-earning  assets  and
interest-bearing   liabilities.   For  example,   although  certain  assets  and
liabilities may have similar maturities or periods to repricing,  they may react
in differing  degrees to changes in market interest rates. The interest rates on
certain of assets and  liabilities may fluctuate in advance of changes in market
interest  rates,  while interest rates on other assets and  liabilities  may lag
behind changes in market rates.  Based on the above,  net interest income should
decline with instantaneous increases in interest rates while net interest income
should increase with instantaneous  declines in interest rates.  Further, in the
event of a change in interest  rates,  prepayment  and early  withdrawal  levels
would likely deviate significantly from those assumed in the tables.

     The Bank originates  fixed-rate and variable-rate real estate loans and has
historically  held most loans in portfolio  until  maturity.  Because the Bank's
interest-bearing liabilities which mature or reprice within short periods exceed
its  earning  assets  with  similar  characteristics,   material  and  prolonged
increases  in interest  rates  generally  would  adversely  affect net  interest
income, while material and prolonged decreases in interest rates generally,  but
to a lesser  extent  because of their  historically  low levels,  would have the
opposite effect.

                                       7
<PAGE>


AVERAGE BALANCE, INTEREST AND AVERAGE YIELDS AND RATES

     The following table sets forth certain  information  relating to the Bank's
average  interest-earning  assets and interest-bearing  liabilities and reflects
the average yield on assets and average cost of liabilities  for the periods and
at the date  indicated.  Such yields and costs are derived by dividing income or
expense by the average monthly  balance of assets or liabilities,  respectively,
for the periods presented. Management does not believe that the use of month-end
balances  instead of daily  balances has caused any material  difference  in the
information presented.

     The  table  also  presents  information  for the  periods  and at the  date
indicated  with respect to the  difference  between the average  yield earned on
interest-earning  assets and average rate paid on interest-bearing  liabilities,
or "interest rate spread," which savings institutions have traditionally used as
an  indicator  of  profitability.  Another  indicator  of an  institution's  net
interest income is its "net yield on interest-earning  assets," which is its net
interest income divided by the average balance of  interest-earning  assets. Net
interest  income is affected  by the  interest  rate spread and by the  relative
amounts  of  interest-earning  assets  and  interest-bearing  liabilities.  When
interest-earning assets approximate or exceed interest-bearing  liabilities, any
positive interest rate spread will generate net interest income.

<TABLE>
<CAPTION>
                                                          YEAR ENDED JUNE 30,
                                    -------------------------------------------------------------
                                                 2003                          2002
                                    ---------------------------   -------------------------------
                                                        AVERAGE                           AVERAGE
                                     AVERAGE            YIELD/      AVERAGE               YIELD/
                                     BALANCE  INTEREST   COST       BALANCE    INTEREST    COST

<S>                                   <C>         <C>     <C>         <C>         <C>      <C>
INTEREST-EARNING ASSETS:
Interest-bearing deposits           $  6,774  $    72     1.06%    $ 10,615   $   222      2.09%
  Investments....................     13,289      484     3.64        9,876       441      4.47
  Loans..........................    150,240   12,121     8.07      139,092    12,093      8.69
                                    --------  -------              --------   -------
Total interest-earning assets ...    170,303   12,677     7.44      159,583    12,756      7.99
                                              -------                         -------
Non-interest-earning assets .....     10,617                          9,944
                                    --------                       --------
Total assets.....................   $180,920                       $169,527
                                    ========                       ========
INTEREST-BEARING LIABILITIES:
  Savings deposits...............   $112,792  $ 2,814     2.49     $102,153   $ 3,488      3.41
  FHLB advances..................     40,078    2,307     5.76       42,510     2,580      6.07
                                    --------  -------              --------   -------
Total interest-bearing
  liabilities....................    152,870    5,121     3.35      144,663     6,068      4.19
                                              -------     ----                -------      ----
Non-interest bearing
  liabilities....................     11,111                          9,005
                                    --------                       --------
Total liabilities................    162,981                        153,668
Equity...........................     16,939                         15,859
                                    --------                       --------
Total liabilities and equity ....   $180,920                       $169,527
                                    ========                       ========
Net interest income..............             $ 7,556              $  6,688
                                              =======              ========
Net interest rate spread(1) .....                         4.09%                            3.80%
                                                          ====                             ====
Net interest/dividend earning
  assets.........................             $17,433                         $14,920
                                              -------                         -------
Net interest margin (2)..........                         4.44%                            4.19%
                                                          ====                             ====
Average interest-earning assets
  to average interest-bearing
  liabilities....................                       111.40%                          110.31%
                                                        ======                           ======

</TABLE>
----------
(1)  Net interest  rate spread  represents  the  difference  between the average
     yield on  interest-earning  assets and the average rate on interest-bearing
     liabilities.
(2)  Net  interest  margin  represents  net interest  income  divided by average
     interest-earning assets.
(3)  Due to the immaterial  amount of non-accruing  loans,  the balances of such
     loans have been included as interest-earning assets.

                                       8
<PAGE>

RATE/VOLUME ANALYSIS

     The following  table sets forth certain  information  regarding  changes in
interest income and interest expense of the Bank for the periods indicated.  For
each  category  of  interest-earning   asset  and  interest-bearing   liability,
information  is  provided  on changes  attributable  to:  (i)  changes in volume
(changes in volume  multiplied  by old rate);  (ii) changes in rate  (changes in
rate  multiplied by old volume);  and (iii) changes in  rate/volume  (changes in
rate multiplied by changes in volume).

<TABLE>
<CAPTION>
                                                         YEAR ENDED JUNE 30,
                                             -------------------------------------------
                                                     2003         VS.         2002
                                             -------------------------------------------
                                                          INCREASE (DECREASE)
                                                                DUE TO
                                             -------------------------------------------
                                                                       RATE/
                                               VOLUME      RATE       VOLUME     TOTAL
                                               ------      ----       ------     -----
                                                             (IN THOUSANDS)

INTEREST-EARNING ASSETS:
<S>                                           <C>        <C>        <C>        <C>
  Interest-bearing deposits ...............   $   (80)   $  (110)   $    40    $  (150)

  Investments .............................       152        (81)       (28)        43
  Loans ...................................       969       (871)       (70)        28
                                              -------    -------    -------    -------
    Total interest-earning assets .........     1,041     (1,062)       (58)       (79)
                                              -------    -------    -------    -------
INTEREST-BEARING LIABILITIES:
  Deposits ................................       363       (939)       (98)      (674)

  FHLB advances ...........................      (148)      (133)         8       (273)
                                              -------    -------    -------    -------
     Total interest-bearing liabilities ...       215     (1,072)       (90)      (947)
                                              -------    -------    -------    -------
  Increase (decrease) in net interest
    income ................................   $   826    $    10    $    32    $   868
                                              =======    =======    =======    =======
</TABLE>


COMPARISON OF FINANCIAL CONDITION AT JUNE 30, 2003 AND JUNE 30, 2002

     The Company's  total assets  increased by $10.8 million or 6.1% from $176.6
million at June 30, 2002 to $187.4  million at June 30,  2003.  The  increase in
assets was primarily due to loan growth of $8.8 million.

     Mortgage-backed  securities  classified  as  "held to  maturity"  decreased
slightly  from $10.3 million at June 30, 2002 to $10.2 million at June 30, 2003.
The  Bank's  purchases  of  adjustable  rate  GNMA  and  FHLMC  mortgage  backed
securities  offset principal  pay-downs.  At June 30, 2003 the securities had an
estimated  fair value of $10.3  million.  The Bank  purchased  $300,000 in local
municipal  bonds in March 2002.  The bonds are classified as "held to maturity."
At June 30, 2003 the  securities  had an estimated  fair value of $321,000.  The
balance of the  Company's  investment  portfolio was  interest-bearing  deposits
which totaled $7.5 million at June 30, 2003. In the upcoming months, these funds
may be used for paying down FHLB advances,  seasonal deposit  withdrawals,  loan
demand and investment purchases.

     Net loans  increased  $8.8 million from $143.8  million at June 30, 2002 to
$152.6  million at June 30, 2003.  The increase in loans occurred in one to four
family loans which increased $5.2 million,  commercial  nonmortgage  loans which
increased by $3.4 million,  construction loans which increased $3.3 million, and
commercial  real estate loans which  increased $1.6 million.  The Bank benefited
from strong local demand for purchase  financing and loan refinancing.  The loan
growth  in  these  areas  offset  a $2.5  million  decrease  in  consumer  loans
associated  with  prepayments of auto loans through the refinancing of homes and
debt  consolidation,  and a $2.2 million  decrease in land loans associated with
payoffs and pay-downs from lot sales.

                                       9
<PAGE>

     During the year,  the Bank  continued  the program of ongoing loan sales of
fixed-rate  loans to the Federal Home Loan Mortgage  Corporation  (FHLMC).  Loan
sales for the year ended  June 30,  2003 were $65.7  million  compared  to $50.9
million  for the year ended June 30,  2002.  The sales  began in order to manage
interest rate risk,  compete with mortgage companies and increase fee income. At
June 30, 2003,  loans held for sale were $2.2  million.  The loans are valued at
the lower of cost or market.

     As of June 30,  2003 and June 30,  2002,  the  non-performing  loans in the
Bank's  portfolio  were  $3.1  and  $1.7  million,   respectively.  The  largest
non-performing  loan totals $735 thousand and is a business purpose loan secured
by a  single-family  residence  and  vacant  land.  This  loan is  currently  in
foreclosure. No loss is expected on this loan. The total non-performing loans at
June 30,  2003  included  29 loans.  Of these  loans,  five were  single  family
mortgage loans, four were commercial  mortgage loans, one was a land loan, eight
were business equipment loans, and eleven were consumer auto loans. For the year
ended June 2003, the bank's primary lending area continued to be affected by the
severe drought and forest fires which negatively impacted the 2002 summer season
for the local  tourist  economy.  Local  businesses  affected  included  motels,
rafting  company's,  recreational  businesses,  and  retailers.  Many  of  these
businesses  experienced  significantly  reduced  sales in 2002.  Due to the poor
tourist  season in 2002,  a number of these loans are  currently  classified  as
non-performing.

     The Small Business  Administration declared this area eligible for disaster
relief loans and has helped many of the local businesses with low interest rate,
long term loans, as well as some grants. The bank has been responsive to several
of the Bank's  borrowers  who were  affected by the  drought to  continue  their
business operations.

     Although  the 2003  tourist  season was much  improved,  it will take these
borrowers several years of normal business operations to improve. The bank feels
that by  working  with these  borrowers  that  there is an  opportunity  for the
borrower to repay the loans.

     The allowance for loan losses  totaled $1.5 million at June 30, 2003 and at
June 30, 2002.  At June 30, 2003 and June 30, 2002,  the ratio of the  allowance
for loan  losses  to net loans was  0.99%  and  1.03%,  respectively.  There was
$564,000 of loans  charged off and $11,000 in recoveries of previous loan losses
during the year ended June 30, 2003. 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 June 30, 2003 deposits  increased to $129.2  million from $116.1 million
at June 30, 2002 or a net increase of 11.3%.  The  increase  funded loan growth,
payoffs of FHLB  advances,  and the  purchase  of  mortgage  backed  securities.
Competitive rates and stock market uncertainty fueled the growth.  Management is
continually  evaluating the investment  alternatives  available to the Company's
customers,  and  adjusts the  pricing on its  savings  products to maintain  its
existing deposits.

     Advances from the Federal Home Loan Bank decreased to $39.3 million at June
30, 2003 from $42.6  million at June 30, 2002.  Funds from  deposit  growth were
used to pay off maturing advances.

COMPARISON OF OPERATING RESULTS FOR THE YEAR ENDED JUNE 30, 2003 AND 2002

     NET INCOME.  The  Company's net income for the year ended June 30, 2003 was
$1.9  million  compared to $1.7  million for the year ended June 30,  2002.  The
increase in net income resulted primarily from increased net interest income and
higher  non  interest  income  which  more  than  offset   increased  loan  loss
provisions, and increased non-interest expenses.

     NET INTEREST  INCOME.  Net interest income for the year ended June 30, 2003
was $7.6 million  compared to $6.7 million for the year ended June 30, 2002. The
increase is attributed to decreased  interest  expense  associated

                                       10
<PAGE>

with falling rates. Interest expense decreased due to lower interest costs which
more than  offset the  decrease  in the yield on interest  bearing  assets.  The
average yield on interest earning assets decreased from 7.99% for the year ended
June 30, 2002 to 7.44% for the year ended June 30,  2003.  The decrease in yield
is associated with the growth in lower earning  mortgage  backed  securities and
lower rate loan  refinances.  The average cost of interest  bearing  liabilities
also decreased from 4.19% for the year ended June 30, 2002 to 3.35% for the year
ended June 30, 2003.  The  decrease in average  cost is due to less  reliance on
higher costing FHLB advances and lower deposit  rates.  The interest rate spread
increased  from  3.80% for the year  ended  June 30,  2002 to 4.09% for the year
ended June 30, 2003.  Interest rates remain historically low and are more likely
to increase  from these  levels.  An  increase  in interest  rates would have an
adverse impact on the banks net interest income.

     PROVISION  FOR LOAN LOSSES.  The provision for loan losses was $577,000 for
the year ended June 30, 2003  compared  to $236,000  for the year ended June 30,
2002. The increase in the provision was primarily due to problems  caused by the
2002 drought and associated  increase in  non-performing  loans, as well as, the
resolution of some problem loans and writeoffs.

     NON-INTEREST  INCOME.  Non-interest  income increased from $1.9 million for
the year ended June 30, 2002 to $2.2  million for the year ended June 30,  2003.
The increase is primarily  due to loan sales of $65.7 million for the year ended
June 30,  2003  which  resulted  in the  gain on sale of loans of $1.1  million,
compared to $50.9 million of loan sales for the year ended June 30, 2002,  which
resulted in the gain on sale of loans of $734  thousand.  During the year ending
June 30, 2003, the Bank  experienced  higher than normal levels of loan sales as
borrowers  took  advantage of of  historically  low interest  rates to refinance
their  mortgage  loan.  If  interest  rates  increase  in the  future,  the Bank
anticipates  that the volume of refinance  activity would decrease,  which would
result in a decrease on the sale of loans.

     NON-INTEREST EXPENSE.  Non-interest expense increased from $5.6 million for
the year ended June 30, 2002 to $6.0  million for the year ended June 30,  2003.
The majority of the increase was in compensation and benefit expense,  occupancy
expense and other expenses.  The increases are tied to additional  employees and
other expenses due to 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 revised 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.

                                       11
<PAGE>

IMPACT OF NEW ACCOUNTING STANDARDS

     In December 2002, the Financial Accounting Standards Board issued Statement
of  Financial   Accounting   Standards  No.  148  Accounting   For   Stock-Based
Compensation - Transition and Disclosure.  This Statement  amends FASB Statement
No. 123, Accounting for Stock-Based Compensation, to provide alternative methods
of transition for a voluntary  change to the fair value method of accounting for
stock-based  employee  compensation.  In  addition,  this  Statement  amends the
disclosure  requirements  of Statement 123 to require  prominent  disclosures in
both annual and interim financial  statements about the method of accounting for
stock-based employee  compensation and the effect of the method used on reported
results.  The Company  adopted  the  Statement  and has  included  the  required
disclosures.

     FASB Interpretation No. 46,  Consolidation of Variable Interest Entities an
Interpretation  of ARB No. 51 was issued in January  2003.  This  interpretation
addresses  consolidation of business  enterprises of variable interest entities.
The  objective  of this  interpretation  is not to restrict  the use of variable
interest  entities but to improve  financial  reporting by enterprises  involved
with variable  interest  entities.  The  interpretation  applies  immediately to
variable  interest  entities  created  after  January 31, 2003,  and to variable
interest  entities in which an enterprise  obtains an interest  after that date.
The effect of adopting this  interpretation  on the financial  statements of the
Company has not been determined.

                                       12
<PAGE>


                        CONSOLIDATED FINANCIAL STATEMENTS
                   HIGH COUNTRY BANCORP, INC. AND SUBSIDIARIES

                                                                            Page

Independent Auditors' Report                                                 14

Consolidated Statements of Financial
  Condition as of June 30, 2003 and 2002                                     15

Consolidated Statements of Income for the
  Years Ended June 30, 2003 and 2002                                         16

Consolidated Statements of Equity for
  the Years Ended June 30, 2003 and 2002                                     17

Consolidated Statements of Cash Flows for
  the Years Ended June 30, 2003 and 2002                                     18

Notes to Consolidated Financial Statements                                   19


                                       13
<PAGE>
                    GRIMSLEY, WHITE & COMPANY               301 RATON
                  CERTIFIED PUBLIC ACCOUNTANTS    LA JUNTA, COLORADO 81050-1697
                   AND MANAGEMENT CONSULTANTS              719-384-5489




                          INDEPENDENT AUDITORS' REPORT

To the Board of Directors and Stockholders
High Country Bancorp, Inc.
Salida, Colorado

We have audited the accompanying  consolidated statements of financial condition
of High  Country  Bancorp,  Inc. as of June 30,  2003 and 2002,  and the related
consolidated  statements  of income,  equity,  and cash flows for the years then
ended.  These  consolidated  financial  statements are the responsibility of the
Company's  management.  Our  responsibility  is to  express  an opinion on these
consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  financial  position  of High  Country
Bancorp, Inc. as of June 30, 2003 and 2002 and the results of its operations and
its cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.



                                        /s/ Grimsley, White & Company

                                        GRIMSLEY, WHITE & COMPANY



La Junta, Colorado
August 13, 2003

                                       14
<PAGE>


                           HIGH COUNTRY BANCORP, INC.

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

                             JUNE 30, 2003 AND 2002


<TABLE>
<CAPTION>
                          ASSETS                                        2003             2002
                                                                    -------------    -------------
<S>                                                                 <C>              <C>
Cash and amounts due from banks                                     $   5,526,577    $   2,873,502
Interest- bearing deposits at other institutions                        7,492,254        8,590,443
Mortgage-backed securities, held to maturity                           10,168,536       10,306,936
Securities held to maturity                                               302,322          303,039
Loans receivable - net                                                150,486,042      143,195,129
Loans held for sale                                                     2,169,400          642,000
Federal Home Loan Bank stock, at cost                                   2,421,600        2,421,600
Accrued interest receivable                                             1,451,395        1,299,341
Property and equipment, net                                             6,424,978        6,069,688
Mortgage servicing rights                                                      --            6,788
Prepaid expenses and other assets                                         724,945          693,583
Deferred income taxes                                                     215,400          183,100
                                                                    -------------    -------------

            TOTAL ASSETS                                            $ 187,383,449    $ 176,585,149
                                                                    =============    =============

                  LIABILITIES AND EQUITY
LIABILITIES
Deposits                                                            $ 129,215,996    $ 116,142,046
Escrow accounts                                                                --          657,271
Accounts payable and other liabilities                                  1,116,456        1,013,064
Advances from Federal Home Loan Bank                                   39,325,000       42,641,665
Accrued income taxes payable                                                3,569               --
                                                                    -------------    -------------

            TOTAL LIABILITIES                                         169,661,021      160,454,046
                                                                    -------------    -------------

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 892,612 (2003)and 905,409 shares (2002)           8,926            9,054
Paid-in capital                                                         7,142,126        7,262,469
Retained earnings - substantially restricted                           10,986,641        9,461,842
Note receivable from ESOP Trust                                          (415,265)        (521,065)
Deferred MRP stock awards                                                      --          (81,197)
                                                                    -------------    -------------

            TOTAL EQUITY                                               17,722,428       16,131,103
                                                                    -------------    -------------

            TOTAL LIABILITIES AND EQUITY                            $ 187,383,449    $ 176,585,149
                                                                    =============    =============

</TABLE>

                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                       15
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                        CONSOLIDATED STATEMENTS OF INCOME

                       YEARS ENDED JUNE 30, 2003 AND 2002

<TABLE>
<CAPTION>
                                                           2003          2002
                                                        -----------   -----------
Interest Income
<S>                                                     <C>           <C>
      Interest on loans                                 $12,121,255   $12,092,902
      Interest on securities held-to-maturity               389,892       306,060
      Interest on other interest- bearing assets            166,270       356,547
                                                        -----------   -----------

                  Total interest income                  12,677,417    12,755,509
                                                        -----------   -----------
Interest Expense
      Deposits                                            2,814,392     3,488,371
      Federal Home Loan Bank advances                     2,306,548     2,579,583
                                                        -----------   -----------

                  Total interest expense                  5,120,940     6,067,954
                                                        -----------   -----------

                  Net interest income                     7,556,477     6,687,555
Provision for losses on loans                               576,502       236,000
                                                        -----------   -----------
                  Net interest income after provision
                        for loan losses                   6,979,975     6,451,555
                                                        -----------   -----------

Noninterest Income
      Service charges on deposits                           232,131       262,747
      Loans sold                                          1,077,921       802,851
      Title and escrow fees                                 250,122       354,265
      Other                                                 594,559       443,110
                                                        -----------   -----------

                  Total noninterest income                2,154,733     1,862,973
                                                        -----------   -----------

Noninterest Expense
     Compensation and benefits                            3,551,409     3,378,607
     Occupancy and equipment                              1,324,166     1,261,385
     Insurance and professional fees                        292,951       289,121
     Other                                                  782,122       687,627
                                                        -----------   -----------

                  Total noninterest expense               5,950,648     5,616,740
                                                        -----------   -----------

                  Income before income taxes              3,184,060     2,697,788

                  Income tax expense                      1,235,606     1,026,449
                                                        -----------   -----------

                  Net income                            $ 1,948,454   $ 1,671,339
                                                        ===========   ===========

Basic Earnings Per Common Share                         $      2.28   $      1.90
                                                        ===========   ===========
Diluted Earning Per Common Share                        $      2.15   $      1.85
                                                        ===========   ===========
Weighted Average Common Shares Outstanding
     Basic                                                  856,333       877,653
     Effect of dilutive options                              50,792        27,520
     Diluted                                                907,125       905,173

Dividends Paid Per Share                                $      0.50    $     0.50
</TABLE>

                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                       16
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                        CONSOLIDATED STATEMENTS OF EQUITY

                       YEARS ENDED JUNE 30, 2003 AND 2002


<TABLE>
<CAPTION>
                                                                                           NOTE           DEFERRED
                                       COMMON         PAID-IN          RETAINED         RECEIVABLE         STOCK
                                        STOCK         CAPITAL          EARNINGS            ESOP            AWARDS
                                    -------------   --------------  ---------------  ----------------  --------------
<S>                                      <C>           <C>              <C>                <C>             <C>
BALANCES JUNE 30, 2001                   $ 10,290      $ 9,151,686      $ 8,215,667        $ (626,865)     $ (191,444)

     Net income                                                           1,671,339


     MRP stock awards                                       18,583                                            110,247

     ESOP contribution                                      77,796

     ESOP note payment                                                                        105,800

     Stock purchased and
     retired                               (1,236)      (1,985,596)

     Dividends paid                                                        (425,164)

                                    -------------   --------------  ---------------  ----------------  --------------

BALANCES JUNE 30, 2002                      9,054        7,262,469        9,461,842          (521,065)        (81,197)

     Net income                                                           1,948,454

     MRP stock awards                                       44,036                                             81,197

     ESOP contribution                                     145,095

     ESOP note payment                                                                        105,800

     Stock purchased and
     retired                                 (128)        (309,474)

     Dividends paid                                                        (423,655)

                                    -------------   --------------  ---------------  ----------------  --------------

BALANCES JUNE 30, 2003                   $  8,926      $ 7,142,126      $10,986,641        $ (415,265)     $       --
                                    =============   ==============  ===============  ================  ==============
</TABLE>
                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                       17
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

                       YEARS ENDED JUNE 30, 2003 AND 2002


<TABLE>
<CAPTION>
                                                                     2003            2002
                                                                 ------------    ------------
Operating Activities
<S>                                                              <C>             <C>
      Net income                                                 $  1,948,454    $  1,671,339
      Adjustments to reconcile net income to net cash provided
            by operating activities:
      Amortization of:
            Deferred loan origination fees                           (177,011)       (182,137)
            Premiums on investments                                    56,979         169,735
      Loss on disposition of equipment                                  1,840           8,326
      Compensation expense on ESOP shares                             105,800         105,800
      Compensation expense on Management Recognition Plan             125,233          73,651
      ESOP market value expense                                       145,095          77,796
      Provision for losses on loans                                   576,502         236,000
      Deferred income taxes                                           (32,300)        (20,300)
      Depreciation                                                    491,386         442,898
      Income taxes                                                      3,569         (40,167)
      Net change in miscellaneous assets                             (176,628)       (355,609)
      Net change in miscellaneous liabilities                         103,392          79,655
                                                                 ------------    ------------

            Net cash provided by operating activities               3,172,311       2,266,987
                                                                 ------------    ------------

Investing Activities
      Net change in interest bearing deposits                       1,098,189         585,413
      Net change in loans receivable                               (9,217,804)     (7,057,174)
      Purchase of securities held-to-maturity                      (2,528,391)    (11,057,788)
      Principal repayments of securities-held-to-maturity           2,610,529       2,498,987
      Purchases of property and equipment                            (848,516)       (409,005)
                                                                 ------------    ------------

            Net cash used by investing activities                  (8,885,993)    (15,439,567)
                                                                 ------------    ------------

Financing Activities
      Net change in deposits                                       13,073,950      17,624,818
      Net change in escrow funds                                     (657,271)       (443,077)
      Purchase of common stock                                       (309,602)     (1,986,832)
      Cash dividends paid                                            (423,655)       (425,164)
      Proceeds (payment) on FHLB advances                          (3,316,665)     (1,483,334)
                                                                 ------------    ------------

              Net cash provided by financing activities             8,366,757      13,286,411
                                                                 ------------    ------------

              Net change in cash and cash equivalents               2,653,075         113,831

Cash and cash equivalents, beginning                                2,873,502       2,759,671
                                                                 ------------    ------------

Cash and cash equivalents, ending                                $  5,526,577    $  2,873,502
                                                                 ============    ============


Supplemental disclosure of cash flow information
Cash paid for:
     Taxes                                                       $  1,181,419    $  1,169,834
     Interest                                                       5,119,637       6,094,060

</TABLE>

                 SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                       18
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -1   OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

          The  following is a  description  of the more  significant  accounting
          policies which High Country Bancorp, Inc. (the Company) and its wholly
          owned  subsidiary  High Country Bank formerly Salida Building and Loan
          Association  (the Bank) and its wholly owned  subsidiary  High Country
          Title and  Escrow  Company  follow in  preparing  and  presenting  the
          consolidated financial statements.

          Basis of Presentation
          The  consolidated  financial  statements  include the  accounts of the
          Company and its wholly  owned  subsidiary  High  Country  Bank and its
          wholly owned  subsidiary  High Country Title and Escrow  Company.  All
          significant   intercompany   accounts  and   transactions   have  been
          eliminated.

          Organization
          High  Country  Bank (the  Bank) is a federal  stock  savings  and loan
          association  with its main  office  in  Salida,  Colorado  and  branch
          offices in  Salida,  Leadville  and Buena  Vista,  Colorado.  The Bank
          provides a variety of  financial  services to the area it serves.  Its
          primary deposit products are  interest-bearing  checking  accounts and
          certificates  of deposit,  and its primary  lending  products are real
          estate mortgages, consumer and commercial loans.

          High Country Title & Escrow Company provides title, escrow and closing
          services primarily in Chaffee County.

          The Company's  purpose is to act as a holding company with the Bank as
          its sole subsidiary.  The Company's principal business is the business
          of the  Bank,  title  and  escrow  transactions  of the  wholly  owned
          subsidiary of the bank, and holding investments.

          Savings  deposits  of the  Bank are  insured  by the  Federal  Deposit
          Insurance  Corporation  ("FDIC") up to certain  limitations.  The Bank
          pays a premium to FDIC for the insurance of such savings.

          Use of Estimates
          The preparation of financial  statements in conformity with accounting
          principles generally accepted in the United States requires management
          to make estimates and assumptions  that affect the reported amounts of
          assets  and  liabilities  and  disclosure  of  contingent  assets  and
          liabilities  at 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.

          Material  estimates that are  particularly  susceptible to significant
          change  relate to the  determination  of the  allowance  for losses on
          loans and the valuation of foreclosed real estate.  In connection with
          the determination of the estimated losses on loans and foreclosed real
          estate,  management  obtains  independent  appraisals for  significant
          properties.

          While  management  uses available  information to recognize  losses on
          loans and foreclosed real estate,  further  reductions in the carrying
          amounts  of loans and  foreclosed  assets  may be  necessary  based on
          changes in local economic conditions.  Because of these factors, it is
          reasonably  possible that the estimated losses on loans and foreclosed
          real  estate may change  materially  in the near  term.  However,  the
          amount of the change that is reasonably possible cannot be estimated.

          Investment Securities and Mortgage-Backed Securities
          Securities  Held to  Maturity.  Bonds and notes for which the entities
          have the positive  intent and ability to hold to maturity are reported
          at cost,  adjusted for premiums and discounts  that are  recognized in
          interest income using the interest method over the period to maturity.

          Securities Available for Sale.  Available-for-sale  securities consist
          of  bonds  and  notes  not  classified  as  trading  securities  or as
          held-to-maturity securities.


                                       19
<PAGE>


                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -1   OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Unrealized holding gains and losses, net of tax, on available-for-sale
          securities  are  reported as a net amount in a separate  component  of
          shareholders' equity until realized.

          Gains and  losses  on the sale of  available-for-sale  securities  are
          determined using the specific-identification method.

          Declines  in  the  fair  value  of  individual   held-to-maturity  and
          available-for-sale  securities  below  their  cost that are other than
          temporary would result in write-downs of the individual  securities to
          their fair value.  Should the entities incur  write-downs they will be
          included in earnings as realized losses.

          Premiums and  discounts are  recognized  in interest  income using the
          interest method over the period to maturity.

          Federal Home Loan Bank Stock
          The  stock is an  equity  interest  in the  Federal  Home Loan Bank of
          Topeka.  The Bank, as a member of the FHLB, is required to maintain an
          investment in capital stock of the FHLB. The stock is carried at cost,
          as its cost is assumed to equal its market value.  FHLB stock can only
          be sold at par value to the FHLB or to another member institution. The
          FHLB  declares  cash and  stock  dividends.  The stock  dividends  are
          recognized as income due to the fact they are  redeemable at par value
          ($100 per share) from the FHLB or another member institution.

          Loans
          Loans are stated at unpaid principal balances,  less the allowance for
          loan losses, net of deferred loan fees and loans in process.

          Loan  origination  and  commitment  fees,  as well as  certain  direct
          origination  costs,  are deferred and amortized as a yield  adjustment
          over  the  lives of the  related  loans  using  the  interest  method.
          Amortization  of  deferred  loan fees is  discontinued  when a loan is
          placed on nonaccrual status.

          Loans are placed on nonaccrual  status when  principal and interest is
          delinquent for 90 days or more.  Uncollectible interest on these loans
          is charged off, or an allowance is established,  based on management's
          periodic  evaluation,  and by a charge to interest income equal to all
          interest previously accrued. Income is subsequently recognized only to
          the extent that cash payments are received.

          Management  has  determined  that first  mortgage loans on one-to-four
          family  properties,  home  equity,  second  mortgage  loans,  and  all
          consumer loans are large groups of  smaller-balance  homogenous  loans
          that are collectively evaluated.  Accordingly,  such loans are outside
          the scope of FASB Statement Nos. 114 and 118.

          Management considers an insignificant delay, which is determined as 90
          days by the  Association,  will not cause a loan to be  classified  as
          impaired.  A loan is not impaired  during a period of delay in payment
          if the bank  expects to collect  all amounts  due  including  interest
          accrued at the contractual  interest rate for the period of delay. All
          loans   identified   as  impaired  are  evaluated   independently   by
          management.

          Loans Held for Sale
          Loans originated and held for sale in the secondary market are carried
          at the lower or cost or  estimated  fair value in the  aggregate.  Net
          unrealized   losses,  if  any,  are  recognized  through  a  valuation
          allowance by charges to income.


                                       20
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -1   OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Allowance for Loan Losses
          The  allowance for loan losses is  maintained  at a level,  which,  in
          management's  judgment,  is adequate to absorb losses  inherent in the
          loan  portfolio.  The amount of the allowance is based on management's
          evaluation of the collectibility of the loan portfolio,  including the
          nature of the  portfolio,  credit  concentrations,  specific  impaired
          loans,  and  economic  conditions.  The  allowance  is  increased by a
          provision for loan losses, which is charged to expense, and reduced by
          charge-offs,   net  of  recoveries.   Such  provisions  are  based  on
          management's  estimate  of net  realizable  value or fair value of the
          collateral, as applicable. These estimates are susceptible to economic
          changes  that  could  result in a  material  adjustment  to results of
          operations  in the near term.  Recovery of the carrying  value of such
          loans is dependent to a great  extent on  economic,  operational,  and
          other conditions that may be beyond the Bank's control.

          Loan Servicing
          The cost of mortgage  servicing  rights is amortized in proportion to,
          and over the period of, estimated net servicing  revenues.  Impairment
          of mortgage  servicing  rights is assessed  based on the fair value of
          those rights.  Fair values are estimated  using  discounted cash flows
          based on a current market interest rate.

          Property and Equipment
          Property   and   equipment   are  stated  at  cost  less   accumulated
          depreciation.   Depreciation   is  calculated   using   primarily  the
          straight-line  method over the  estimated  useful lives of the related
          assets.  Estimated useful lives of furniture,  fixtures, and equipment
          range from two to ten years;  buildings  and  improvements  range from
          five to forty years.

          Income Taxes
          Income taxes are provided in accordance with SFAS No. 109,  Accounting
          for Income Taxes.  Under the provisions of SFAS No. 109,  deferred tax
          assets and liabilities  are recorded based on the differences  between
          the financial  statement and tax bases of assets and  liabilities  and
          the tax rates  which  will be in effect  when  these  differences  are
          expected to reverse.  If appropriate,  deferred tax assets are reduced
          by a valuation allowance, which reflects expectations of the extent to
          which such assets will be realized.  The Company and its  subsidiaries
          file a consolidated return.

          Financial Instruments
          Off-balance sheet instruments.  In the ordinary course of business the
          Bank  has  entered  into  off-balance   sheet  financial   instruments
          consisting of  commitments to extend  credit,  and standby  letters of
          credit.  Such  financial  instruments  are  recorded in the  financial
          statements when they are funded.

          Fair Values of Financial Instruments
          The  following  methods and  assumptions  were used by the entities in
          estimating fair values of financial instruments as disclosed herein:

          Cash and  short-term  instruments.  The  carrying  amounts of cash and
          short-term instruments approximate fair values.

          Available-for-sale  and held-to-maturity  securities.  Fair values for
          securities,  excluding  restricted  equity  securities,  are  based on
          quoted  market  prices.  The  carrying  values  of  restricted  equity
          securities approximate fair values.

          Loans receivable.  For variable-rate loans that reprice frequently and
          have no  significant  change in credit risk,  fair values are based on
          carrying-values.  Fair  values for  mortgage  loans,  consumer  loans,
          commercial  real  estate  and  commercial  loans are  estimated  using
          discounted  cash flow analysis,  using interest rates  currently being
          offered for loans with similar  terms to  borrowers of similar  credit
          quality. Fair values for impaired loans are estimated using discounted
          cash flow analysis or underlying collateral values, where applicable.


                                       21
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -1   OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Deposit  Liabilities.  The fair values  disclosed for demand  deposits
          are,  by  definition,  equal to the  amount  payable  on demand at the
          reporting  date.  The carrying  amounts of  variable-rate,  fixed-term
          money market accounts and  certificates  of deposit (CDs)  approximate
          their fair values at the reporting  date.  Fair values for  fixed-rate
          CDs are  estimated  using a  discounted  cash  flow  calculation  that
          applies  interest rates  currently  being offered on certificates to a
          schedule of aggregated expected monthly maturities on time deposits.

          Advances from Federal Home Loan Bank. The fair values are based on the
          borrowing rates and remaining maturities.

          Cash Equivalents
          For the purpose of  reporting  cash flows,  cash and cash  equivalents
          include cash on hand, amounts due from banks.

          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.  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.

          Stock Compensation Plan
          Statement of Financial  Accounting Standards (SFAS) No. 123 Accounting
          for Stock-Based Compensation,  amended by SFAS No. 148, encourages all
          entities to adopt a fair value based method of accounting for employee
          stock compensation plans, whereby compensation cost is measured at the
          grant date based on the value of the award and is recognized  over the
          service  period,  which is usually the vesting period.  However,  they
          also  allow an entity to  continue  to measure  compensation  cost for
          those  plans using the  intrinsic  value  based  method of  accounting
          prescribed by Accounting  Principles Board Opinion No. 25,  Accounting
          for  Stock  Issued  to  Employees,  whereby  compensation  cost is the
          excess,  if any, of the quoted  market price of the stock at the grant
          date (or other  measurement date) over the amount an employee must pay
          to acquire  the stock.  Stock  options  issued  under the plan have no
          intrinsic  value at the  grant  date,  and  under  Opinion  No.  25 no
          compensation  cost is recognized  for them. The Company has elected to
          continue  with the  accounting  methodology  in  Opinion  No.  25.  No
          stock-based  employee  compensation  is reflected in the net income as
          all options granted had an exercise price equal to the market value of
          the  underlying  common stock on the date of the grant.  The following
          table  illustrates  the effect on net income and earnings per share if
          the Company had applied the fair value recognition  provisions of FASB
          Statement  No.  123,  Accounting  for  Stock-Based  Compensation,   to
          stock-based employee compensation.

                                                        Year Ended June 30,
                                                     2003             2002
                                                 -------------    -------------
Net income as reported                           $   1,948,454    $   1,671,339
   Deduct stock-based employee compensation
    expense determined under fair value method
     for all awards net of related income tax          (29,345)         (29,345)
                                                 -------------    -------------
          Pro forma net income                   $   1,919,109    $   1,641,994
                                                 =============    =============
Earning Per Share
   Basic as reported                                     $2.28            $1.90

   Basic pro forma                                        2.24             1.87

   Diluted as reported                                    2.15             1.85

   Diluted pro forma                                      2.12             1.81

                                       22
<PAGE>


                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -1   OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

          Advertising Costs
          Advertising costs are charged to expense as incurred.

NOTE -2   SECURITIES
          Securities are classified in categories and accounted for as follows:

          Mortgage-Backed Securities Held-to-Maturity
          The  amortized  cost  and  estimated  fair  value  of  mortgage-backed
          held-to-maturity securities at June 30, 2003 and 2002 are as follows:

<TABLE>
<CAPTION>
                                                Gross            Gross
                              Amortized      Unrealized       Unrealized         Fair
  2002                          Cost           Gains           Losses           Value
--------                       ------------   ------------    ------------    ------------
Mortgage-backed securities
<S>                          <C>            <C>             <C>             <C>
   GNMA certificates         $  7,506,205   $     10,197    $    (28,943)   $  7,487,459
   FHLMC certificates           1,989,034         22,673          (5,998)      2,005,709
   FNMA certificates              811,697         15,431             (38)        827,090
                             ------------   ------------    ------------    ------------
                             $ 10,306,936   $     48,301    $    (34,979)   $ 10,320,258
                             ============   ============    ============    ============
</TABLE>

<TABLE>
<CAPTION>
                                                Gross            Gross
                              Amortized      Unrealized       Unrealized         Fair
  2003                          Cost           Gains           Losses           Value
--------                       ------------   ------------    ------------    ------------
Mortgage-backed securities
<S>                          <C>            <C>             <C>             <C>
   GNMA certificates         $  7,119,628   $    124,879    $          0    $  7,244,507
   FHLMC certificates           1,555,553          3,550          (7,787)      1,551,316
   FNMA certificates            1,493,355         34,078            (504)      1,526,929
                             ------------   ------------    ------------    ------------
                             $ 10,168,536   $    162,507    $     (8,291)   $ 10,322,752
                             ============   ============    ============    ============
</TABLE>

          Expected maturities on the mortgage backed securities will differ from
          contractual maturities because borrowers may have the right to call or
          prepay obligations with or without call or prepayment penalties.

          Securities Held-to-Maturity
          The  amortized  cost and  estimated  fair  value  of  held-to-maturity
          securities are as follows:

                             Gross        Gross
                Amortized  Unrealized  Unrealized   Fair
   2003            Cost       Gains      Losses     Value
---------        --------   --------   --------   --------
Chaffee County
    Bonds        $302,322   $ 17,437   $      0   $319,759
                 ========   ========   ========   ========


                             Gross        Gross
                Amortized  Unrealized  Unrealized   Fair
   2002            Cost       Gains      Losses     Value
---------        --------   --------   --------   --------
Chaffee County
    Bonds        $303,039   $  7,247   $      0   $310,286
                 ========   ========   ========   ========

          The amortized cost and fair value of debt securities  held-to-maturity
          by contractual maturity at June 30, 2003 follows:

                                             Amortized    Fair
                                               Cost       Value
                                             --------   --------
               Over 1 year through 5 years   $201,161   $209,696
               After 5 years                  101,161    110,063
                                             --------   --------
                                             $302,322   $319,759
                                             ========   ========

          At June 30, investments with a carrying value of $7,780,349 (2003) and
          $3,855,122  (2002) were pledged as  collateral  for deposits of public
          funds.


                                       23
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -3   LOANS RECEIVABLE
          Loans receivable at June 30, are summarized as follows

                                                     2003          2002
                                                 ------------   ------------
    Loans secured by real estate:
       One-to-four family residences             $ 62,785,100   $ 59,167,162
       Commercial real estate                      37,127,389     35,549,596
       Construction                                12,670,455      9,411,762
       Land                                         8,994,132     11,243,700
                                                 ------------   ------------

       Total Loans Secured by Real Estate         121,577,076    115,372,220

    Consumer loans                                 11,205,366     13,676,535
    Loans collateralized by savings accounts          799,603        767,298
    Commercial loans                               21,961,564     18,610,505
    Other loans                                       402,954         59,427
                                                 ------------   ------------
       Total Loans                                155,946,563    148,485,985

    Less:
       Undisbursed portion of loans in process      3,249,479      3,194,636
       Deferred loan origination fees                 703,042        610,997
       Allowance for loan losses                    1,508,000      1,485,223
                                                 ------------   ------------

       Loans Receivable, Net                     $150,486,042   $143,195,129
                                                 ============   ============

    The changes in the allowance for loan losses were as follows:

                                                      2003            2002
                                                  -----------    -----------
    Balance, beginning of year                    $ 1,485,223    $ 1,347,957
    Provision for losses                              576,502        236,000
    Recoveries                                         10,741          6,240
    Losses incurred                                  (564,466)      (104,974)
                                                  -----------    -----------
    Balance, end of year                          $ 1,508,000    $ 1,485,223
                                                  ===========    ===========

          Overdrafts  in demand  deposit  accounts in the amount of $28,877 have
          been reclassified as consumer loans for 2003.

          At  June  30,  the  Bank  had   adjustable   interest  rate  loans  of
          approximately   $19,146,000   (2003)  and  $18,890,000   (2002).   The
          adjustable  rate loans have interest rate  adjustment  limitations and
          are generally  indexed to the 1-year U.S.  Treasury Note rate or prime
          rate. Future market factors may affect the correlation of the interest
          rate adjustment with the rate the Bank pays on the short-term deposits
          that have been primarily utilized to fund these loans.

          As of  June  30,  2003,  $1,137,779  of  loans  had  been  pledged  as
          collateral for deposits of public funds.

NOTE -4   LOAN SERVICING
          Mortgage   loans   serviced   for  others  are  not  included  in  the
          accompanying  statements of financial condition.  The unpaid principal
          balances of these loans at June 30 are summarized as follows:

                                                   2003         2002
                                                 ----------   ----------
        Mortgage loan portfolios serviced for:
           FHLMC                                 $2,888,910   $2,893,075
                                                 ==========   ==========

          In  connection  with these loans  serviced  for others at June 30, the
          Bank  held  borrowers'  escrow  balances  of  $(11,337)  in  2003  and
          $(12,417) in 2002.

                                       24
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -5   ACCRUED INTEREST RECEIVABLE
          Interest receivable at June 30, relates to the following:

                                              2003        2002
                                           ----------   ----------
              Loans                        $1,411,751   $1,248,797
              Mortgage-backed securities       38,728       49,658
              Other investments                   916          886
                                           ----------   ----------
                                           $1,451,395   $1,299,341
                                           ==========   ==========

NOTE -6   PROPERTY AND EQUIPMENT
          Property and equipment  and the related  accumulated  depreciation  at
          June 30, are summarized as follows:

                                                2003           2002
                                            -----------    -----------
        Land and improvements               $ 1,211,039    $   599,098
        Buildings and improvements            5,133,957      5,121,019
        Furniture, fixtures and equipment     2,286,335      2,122,178
        Construction in progress                 15,399              0
                                            -----------    -----------
                                              8,646,730      7,842,295
        Less accumulated depreciation        (2,221,752)    (1,772,607)
                                            -----------    -----------
                                            $ 6,424,978    $ 6,069,688
                                            ===========    ===========

          Depreciation  expense  for the years ended June 30,  totaled  $491,387
          (2003) and $442,898 (2002).

NOTE -7   DEPOSIT ACCOUNTS
          Deposit accounts at June 30 are summarized as follows:

<TABLE>
<CAPTION>
                                                2003                   2002
                                     ----------------------  ---------------------
                                              Weighted               Weighted
                                              Average                 Average
                                       Amount        Rate       Amount       Rate
                                     ------------ ---------  ------------- --------
<S>                                 <C>                <C>   <C>                <C>
  NOW accounts, including
     non-interest bearing
     deposits of $9,215,935 (2003)
     and $7,331,000 (2002)          $ 28,808,065       .64%  $ 30,063,429       .64%

  Money market and
     savings accounts                 35,851,392      1.25%    28,274,752      1.37%

  Certificate accounts                64,556,539      3.26%    57,803,865      4.27%
                                    ------------             ------------
                                    $129,215,996             $116,142,046
                                    ============             ============
</TABLE>


          At June  30,  2003,  scheduled  maturities  of the  above  certificate
          accounts are summarized as follows:


                                      Year ending June 30,
           ---------------------------------------------------------------------
                                                                       2008 and
                2004          2005          2006           2007       thereafter
            -----------   -----------    ----------     ----------   ----------
1.01-2.00   $ 6,053,710   $   135,602    $        0    $        0    $        0
2.01-3.00    22,238,592     5,022,027       762,085             0             0
3.01-4.00    11,364,431     5,395,984       964,182       917,271       612,238
4.01-5.00     2,199,351       529,241       119,057       944,121     1,752,578
5.01-6.00     1,065,569       647,732       474,074        82,110       160,000
6.01-7.00       562,707       340,790       528,130       103,913       396,000
7.01-8.00       317,253       346,414       503,213             0        18,164
            -----------   -----------    ----------     ----------   ----------

            $43,801,613   $12,417,790    $3,350,741     $2,047,415   $2,938,980
            ===========   ===========    ==========     ==========   ==========


                                       25
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -7   DEPOSIT ACCOUNTS (Continued)

          The  aggregate  amount  of  certificates  of  deposits  with a minimum
          denomination  of  $100,000  at  June  30 was  $22,230,845  (2003)  and
          $18,324,452 (2002).

          Deposits  in  excess  of  $100,000  are  not  insured  by the  Savings
          Association Insurance Fund (SAIF).

          Interest expense on deposits for the years ended June 30 is summarized
          as follows:

                                                 2003          2002
                                              ----------   ----------
          NOW accounts                        $  144,324   $  196,167
          Money market and savings accounts      409,444      510,334
          Certificate accounts                 2,260,624    2,781,870
                                              ----------   ----------
                                              $2,814,392   $3,488,371
                                              ==========   ==========

NOTE -8   ADVANCES FROM FEDERAL HOME LOAN BANK
          Advances  from  the  Federal  Home  Loan  Bank  (FHLB)  at June 30 are
          summarized as follows:

                                Interest
                                  Rate           2003           2002
                                ----------   -----------   -----------
          Maturing in 2003      5.49-7.05%   $         0   $ 9,666,665
          Maturing in 2004      5.14-6.91%     7,500,000     7,500,000
          Maturing in 2005      1.68-7.34%     7,000,000     6,000,000
          Maturing in 2006      2.17-6.98%     6,500,000     3,500,000
          Maturing in 2007      4.97-5.31%     3,000,000     3,000,000
          Maturing in 2008      3.63-6.10%     3,000,000     3,000,000
          Maturing after 2008   3.97-5.93%    12,325,000     9,975,000
                                             -----------    ----------

                                             $39,325,000   $42,641,665
                                             ===========   ===========

          Pursuant to collateral  agreements with the FHLB, advances are secured
          by a blanket  pledge  agreement with the FHLB,  which includes  single
          family and commercial real estate loans.

          At June 30, 2003,  the Bank has an approved line of credit  subject to
          the maximum  amount of credit  available  to the Bank under the FHLB's
          credit policies,  which expires April 23, 2004. No amount was drawn on
          the line of credit at June 30, 2003 or 2002.

          Interest in the amount of $9,000 was capitalized  during the period of
          clearing the land acquired.

NOTE -9   INCOME TAXES
          The provision for income taxes consists of the following:

                              2003            2002
                           -----------    -----------
                Current    $ 1,267,906    $ 1,046,749
                Deferred       (32,300)       (20,300)
                           -----------    -----------
                           $ 1,235,606    $ 1,026,449
                           ===========    ===========

          The  effective  tax rate on income  before the  provisions  for income
          taxes  differs from the federal  statutory  income tax rate of 34% for
          the following reasons:

                                                      2003           2002
                                                  -----------    -----------
   Provision for income taxes at statutory rate   $ 1,082,580    $   917,248
   Nondeductible expenses for tax purposes             57,702         39,981
   State income taxes, net of federal income
     tax benefit                                       99,665         68,143
   Other, net                                          (4,341)         1,077
                                                  -----------    -----------
                                                  $ 1,235,606    $ 1,026,449
                                                  ===========    ===========

   Effective tax rates                                     39%            38%

                                       26
<PAGE>


                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -9   INCOME TAXES (Continued)

          Deferred  income  taxes  reflect  the net  tax  effects  of  temporary
          differences between the carrying amounts of assets and liabilities for
          financial  reporting  purposes  and the  amounts  used for  income tax
          purposes.  The net deferred tax assets (liabilities) as of June 30 are
          as follows:

                                                    2003         2002
                                                  ---------    ---------
      Difference between tax basis and
      carrying basis of FHLB stock                $(196,600)   $(196,600)
      Tax depreciation in excess of
      financial statement amounts                  (127,000)    (129,200)
      Difference between tax basis and carrying
      basis of long term incentive plan             150,900      129,200
      Other                                          (6,600)      (6,800)
      Loan loss allowance                           394,700      386,500
                                                  ---------    ---------
               Net deferred tax asset             $ 215,400    $ 183,100
                                                  =========    =========

          Management has determined that a valuation  allowance is not required.
          The deferred tax expense (benefit) results from timing  differences in
          the recognition of income and expense for tax and financial  purposes.
          The sources and tax effects of these temporary timing  differences are
          as follows:


                                                 2003       2002
                                              --------    --------
            Accumulated depreciation          $ (2,200)   $ 28,100
            Allowance for loan losses - net     (8,200)    (57,600)
            Other                                 (200)      4,400
            Long-term incentive plan           (21,700)      4,800
                                              --------    --------
                                              $(32,300)   $(20,300)
                                              ========    ========

          The Bank was in prior years permitted under the Internal  Revenue Code
          to deduct an annual  addition to reserve for bad debts in  determining
          taxable  income,  subject  to  certain  limitations.   This  deduction
          differed from the bad debt  provision  used for  financial  accounting
          purposes.  Bad debt deductions for income tax purposes are included in
          taxable  income of later  years  only if the bad debt  reserve is used
          subsequently  for  purposes  other  than to  absorb  bad debt  losses.
          Because the Bank does not intend to use the reserve for purposes other
          than to absorb  losses,  no deferred  income taxes have been provided.
          Retained earnings at June 30, 2003, include approximately  $1,169,000,
          representing  such bad debt  deductions for which no income taxes have
          been provided.

NOTE -10  REGULATORY CAPITAL REQUIREMENTS
          The  Bank  is  subject  to  various  regulatory  capital  requirements
          administered by the federal banking agencies.  Failure to meet minimum
          capital  requirements can initiate certain actions by regulators that,
          if  undertaken,  could  have a direct  material  effect on the  Bank's
          financial  statements.  Under  capital  adequacy  guidelines  and  the
          regulatory  framework for prompt corrective action, the Bank must meet
          specific guidelines that involve  quantitative  measures of the Bank's
          assets, liabilities, and certain off-balance sheet items as calculated
          under regulatory accounting practices.  The Bank's capital amounts and
          classification  are  also  subject  to  qualitative  judgments  by the
          regulators about components, risk weightings, and other factors.

          Quantitative  measures  established  by regulation  to ensure  capital
          adequacy  require the Bank to maintain  minimum  amounts and ratios as
          outlined  below.  Management  believes,  as of June 30, 2003. The Bank
          meets all capital adequacy requirements to which it is subject.

          As of May 19, 2003, the most recent notification from Office of Thrift
          Supervision  categorized  the  Bank  as  well  capitalized  under  the
          regulatory   framework  for  prompt  corrective  action.  To  be  well
          capitalized the Bank must maintain  minimum total  risk-based,  Tier I
          risk-based,  and Tier I leverage  ratios.  There are no  conditions or
          events since that notification  that management  believes have changed
          the institution's category.


                                       27
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -10  REGULATORY CAPITAL REQUIREMENTS (Continued)
          The following is a reconciliation of capital computed under accounting
          principles   generally   accepted  in  the  United  States  (GAAP)  to
          regulatory   capital.   OTS   regulations   specify   minimum  capital
          requirements for the Bank. The following  reconciliation also compares
          the  capital   requirements   as  computed  to  the  minimum   capital
          requirements for the Bank, as of June 30.


                                                  2003            2002
                                              ------------   ------------
      Equity Per GAAP                         $ 17,652,000   $ 16,034,000
      Less Servicing Rights Plus Valuations              0         (1,000)
                                              ------------   ------------
      Equity Per GAAP- Tier I Capital           17,652,000     16,033,000
      Valuation Allowance                        1,508,000      1,485,000
                                              ------------   ------------
      Regulatory Capital                      $ 19,160,000   $ 17,518,000
                                              ============   ============

<TABLE>
<CAPTION>
                                                 Minimum Required        To Be Well Capitalized
                                                  For Capital          Under Prompt Corrective
                             Actual             Adequacy Purposes         Action Regulations
                      Amount        Ratio     Amount         Ratio     Amount        Ratio
                      ------        -----     ------         -----     ------        -----
<S>                <C>              <C>     <C>              <C>    <C>              <C>
2003
----
Total Capital
   (to Risk
   Weighted
   Assets)         $19,160,000      13.84%  $11,074,000      8.00%  $13,843,000      10.00%

Tier I Capital
   (to Risk
   Weighted
   Assets)          17,652,000      12.75     4,153,000      3.00     8,306,000       6.00

Tier I Capital
   (to Average
   Assets)          17,652,000       9.84     2,691,000      1.50     8,971,000       5.00

Tangible Capital
   (to Tangible
   Assets)          17,652,000       9.42     2,812,000      1.50       N/A

2002
----
Total Capital
   (to Risk
   Weighted
   Assets)         $17,518,000      13.66%  $10,261,000      8.00%  $12,826,000      10.00%

Tier I Capital
   (to Risk
   Weighted
   Assets)          16,033,000      12.50     3,848,000      3.00     7,695,000       6.00

Tier I Capital
   (to Average
   Assets)          16,033,000       9.45     2,545,000      1.50     8,484,000       5.00

Tangible Capital
   (to Tangible
   Assets)          16,033,000       9.06     2,653,000      1.50       N/A
</TABLE>

                                       28
<PAGE>

                           HIGH COUNT RY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE -10  REGULATORY CAPITAL REQUIREMENTS (Continued)

          The Bank's  management  believes that, under the current  regulations,
          the Bank will continue to meet its minimum capital requirements in the
          coming year.  However,  events beyond the control of the Bank, such as
          increased  interest  rates or a downturn  in the economy in the Bank's
          operating   area,   could   adversely   affect  future  earnings  and,
          consequently,  the  ability  of the  Bank to meet its  future  minimum
          capital requirements.

NOTE -11  BENEFIT PLANS

          The Bank adopted a Long-Term Incentive Plan covering the directors and
          key  employees of the Bank.  On June 30 of each year the  participants
          will  have  a  contribution   made  to  their  account  providing  the
          participant continues to be an employee or director of the Bank. Prior
          to  distribution  under  the  terms of the  Plan,  each  participant's
          account  shall  be  credited  with a rate of  return,  on any  amounts
          previously credited, equal to the highest rate of interest paid by the
          Bank on one-year certificates of deposit, or after conversion the rate
          of  return  will  equal  the  dividend-adjusted  rate of return on the
          common stock.

          Amounts credited to  Participant's  Accounts on the effective date and
          thereafter  shall be fully vested.  Account balances shall be paid, in
          cash,  in ten equal  annual  installments  beginning  during the first
          quarter of the calendar  year which next follows the calendar  year in
          which the  participant  ceases to be a director  or  employee  for any
          reason,  with  subsequent  payments  being made by the last day of the
          first quarter of each  subsequent  calendar year until the participant
          has received the entire  amount of his  account.  Notwithstanding  the
          foregoing a participant may elect to have his account paid in lump sum
          distribution  or in annual payments over a period less than ten years.
          Any  benefits  accrued  under the plan  will be paid  from the  Bank's
          general  assets.  The  Bank has  established  a trust in order to hold
          assets with which to pay benefits. Trust assets, which are included in
          the consolidated statement of financial condition,  will be subject to
          the claims of the Bank's general  creditors.  The expense for the plan
          recognized  for the years ended June 30, 2003 and 2002 was $60,000 and
          $72,000.

          As part of the  conversion to stock,  the Bank  established an ESOP to
          benefit substantially all employees. The ESOP purchased 105,800 shares
          of common stock in the conversion  with proceeds  received from a loan
          from the  Company.  The note is to be repaid in ten  annual  principal
          installments of $105,800, starting June 30, 1998. Interest is based on
          the Wall  Street  Journal  Prime  plus one  percent,  and is  adjusted
          annually  on July 1.  The  interest  rate  for  2003  was  7.75%.  The
          unallocated shares of stock held by the ESOP are pledged as collateral
          on the debt. The ESOP is funded by  contributions  made by the Bank in
          amounts  sufficient  to retire the debt. At June 30, 2003 and June 30,
          2002, the outstanding  balance of the note receivable was $415,265 and
          $521,065 and is presented as a reduction of stockholders' equity. ESOP
          compensation  expense  for the years  ended June 30, 2003 and 2002 was
          $109,727 and $123,317.

          In  November  1993,  the  AICPA  issued  Statement  of  Position  93-6
          "Employers'  Accounting  for  Employee  Stock  Ownership  Plans."  The
          statement  was adopted  December 9, 1997,  the  effective  date of the
          Association's  conversion to a stock company.  The Statement requires,
          among other things, that: (1) for ESOP shares committed to be released
          in  a  period  to  compensate  employees  directly,  employers  should
          recognize  compensation  cost  equal to the  average  fair  value  (as
          determined on a monthly basis) of the shares committed to be released,
          (2) dividends on  unallocated  shares used to repay ESOP loans are not
          considered  dividends for financial reporting  purposes,  dividends on
          allocated  or  committed  shares are  credited to the  accounts of the
          participants  and reported as dividends in the  financial  statements,
          (3) for an internally  leveraged  ESOP, the Company's loan  receivable
          and the ESOP note  payable as well as the interest  income/expense  is
          not reflected in the  consolidated  financial  statements  and (4) for
          earnings per share computations,  ESOP shares that have been committed
          to be released should be considered outstanding. ESOP shares that have
          not  been   committed  to  be  released   should  not  be   considered
          outstanding.

                                       29
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -11  BENEFIT PLANS (Continued
          The ESOP shares as of June 30, 2003 are as follows:

          Shares released                                      52,900
          Shares committed to be released for allocation       10,580
          Unreleased shares                                    42,320
                                                           ----------
          Total ESOP shares                                   105,800
                                                           ==========

          Fair value of unreleased shares                  $1,502,889
                                                           ==========

          The  board  of  directors   of  the  Company   approved  a  Management
          Recognition  Plan ("MRP") for  directors  and  employees.  The MRP was
          approved by the  stockholders  at the annual meeting in December 1998.
          The Company  purchased in the open market  39,675 shares of its common
          stock, at a cost of $551,721,  to fund the MRP. Under the terms of the
          plan  39,675  shares of common  stock were  awarded to  directors  and
          employees.  The  shares  awarded  pursuant  to the MRP have a  vesting
          schedule,   which  provides  that  25%  of  the  shares  awarded  will
          automatically  vest on the  effective  date of the  award and 25% will
          vest on each subsequent anniversary date. Compensation expense related
          to the MRP was  $125,233 and $73,651 for the years ended June 30, 2003
          and 2002. In the year ended June 30, 2003, the remaining shares of the
          MRP were awarded.

          The bank also has a  noncontributory  401(K) plan which  employees may
          elect to join after 90 days of employment.

NOTE -12  FINANCIAL  INSTRUMENTS WITH OFF-BALANCE SHEET RISK AND  CONCENTRATIONS
          OF CREDIT RISK

          The Bank is a party to financial  instruments with  off-balance  sheet
          risk in the normal course of business to meet the  financing  needs of
          its  customers.  At June 30, 2003,  the Bank has  commitments  to fund
          mortgage loans of $2,733,000, with interest rates from 3.75% to 8.50%,
          unfunded  lines of  credit of  $5,092,000,  and  letters  of credit of
          $252,000.  The Bank makes  contractual  commitments  to extend credit,
          which are legally  binding  agreements  to lend money to  customers at
          prevailing  interest  rates for specified  periods of time. The credit
          risk involved in issuing these  commitments is essentially the same as
          that involved in extending loan facilities to customers.

          As  such,  the  Bank's  exposure  to  credit  loss,  in the  event  of
          non-performance  by the counterparty to the financial  instrument,  is
          represented by the contractual amount of those  instruments.  However,
          the Bank applies the same credit standards used in the lending process
          when extending  these  commitments,  and  periodically  reassesses the
          customers' credit  worthiness.  Additional risks associated with these
          commitments  arise when they are drawn  upon,  such as the  demands on
          liquidity that the Bank could experience if a significant portion were
          drawn  down  at  once.  This  is  considered  unlikely,   however,  as
          commitments may expire without having been drawn upon.

          The Bank  originates  loans  primarily  in  Chaffee,  Fremont and Lake
          Counties,   Colorado.   Although  the  Bank  has  a  diversified  loan
          portfolio,  a substantial  portion of its borrower's  ability to repay
          their loans is dependent upon economic conditions in the market area.

NOTE -13  FAIR VALUES OF FINANCIAL INSTRUMENTS
          The estimated fair values of the financial instruments are as follows:

<TABLE>
<CAPTION>
                                           2003                          2002
                                  Carrying        Fair         Carrying        Fair
                                   Amount        Value          Amount         Value
                                 ---------      ---------      ---------      ---------
Financial Assets:
<S>                           <C>            <C>            <C>            <C>
Cash                          $  5,526,577   $  5,526,577   $  2,873,502   $  2,873,502
Interest-bearing deposits        7,492,254      7,492,254      8,590,443      8,590,443
Mortgage backed securities      10,168,536     10,322,752     10,306,936     10,320,258
Securities held to maturity        302,322        319,759        303,039        310,286
FHLB stock                       2,421,600      2,421,600      2,421,600      2,421,600
Loans receivable - net         150,486,042    159,842,000    143,837,129    151,123,000
</TABLE>

                                       30
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -13  FAIR VALUES OF FINANCIAL INSTRUMENTS (Continued)

   Financial liabilities
   Deposits                129,215,996   130,999,000   116,142,046   117,113,000
   Advances from FHLB       39,325,000    43,053,000    42,641,665    44,869,000

NOTE -14     OTHER NON-INTEREST EXPENSE

                                             2003        2002
                                           --------   --------
                  Advertising              $ 82,046   $ 92,850
                  Stationery Supplies       158,503    164,180
                  Postage                   137,070    127,020
                  Telephone                  68,508     67,925
                  Dues and Subscriptions     62,478     45,935
                  Community Support          57,254     53,658
                  Bank Charges               29,130     35,197
                  Other                     187,133    100,864
                                           --------   --------

                                           $782,122   $687,627
                                           ========   ========

NOTE - 15 STOCKHOLDERS' EQUITY
          In the years  ended  June 30,  2003 and 2002,  the  Company  purchased
          12,797 and 123,583  shares of its common stock,  at a cost of $309,602
          and  $1,986,832,  and retired the stock in  accordance  with  Colorado
          Revised Statutes

          For the years  ended June 30, 2003 and 2002,  the Company  paid a cash
          dividend of $.50 per share respectively.

NOTE - 16 STOCK OPTION PLAN
          The  stockholders  approved the adoption of the 1998  incentive  stock
          option plan, providing for the award of incentive stock options to key
          employees  and  directors of the Company,  and its  affiliates  at the
          discretion  of the  Board of  Directors.  Under  the terms of the plan
          116,376 shares of the Company's common stock were granted to employees
          and  directors  on December  17,  1998.  Such  options  have an option
          exercise  price of  $13.125,  which was the fair value of the stock at
          December 17, 1998. The aggregate number of shares deliverable pursuant
          to awards shall not exceed  145,475  shares.  Such stock  options will
          have a term of ten years and a vesting schedule, for employees,  which
          provides  that one  third of the  options,  vested  at the date of the
          grant and one third vested  January 1, 1999 and  one-third  January 1,
          2000. The directors' options vested at the date of the grant.

          The Company applies APB Opinion No. 25 and related  interpretations in
          accounting  for the stock option plan.  Accordingly,  no  compensation
          cost has been recognized.

          A  summary  of the  status  of the  Company's  stock  option  plan  is
          presented below:


                                                    2003      2002
                                                  --------  --------

            Outstanding at the beginning of year   116,376   116,376
            Granted                                      0         0
            Exercised                                    0         0
            Forfeited                                    0         0
            Outstanding at year end                116,376   116,376

            Options exercisable at year end        116,376   116,376

          The  exercise  price for the  outstanding  options is $13.125  and the
          remaining contractual life is 5.6 years.


                                       31
<PAGE>


                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -17  IMPACT OF NEW ACCOUNTING STANDARDS
          In December  2002,  the Financial  Accounting  Standards  Board issued
          Statement of Financial  Accounting  Standards No. 148  Accounting  For
          Stock-Based  Compensation - Transition and Disclosure.  This Statement
          amends  FASB   Statement   No.   123,   Accounting   for   Stock-Based
          Compensation,  to  provide  alternative  methods of  transition  for a
          voluntary   change  to  the  fair  value  method  of  accounting   for
          stock-based employee compensation.  In addition, this Statement amends
          the  disclosure  requirements  of Statement  123 to require  prominent
          disclosures in both annual and interim financial  statements about the
          method of accounting for  stock-based  employee  compensation  and the
          effect of the method used on reported results. The Company adopted the
          Statement and has included the required disclosures.

          FASB  Interpretation  No.  46,   Consolidation  of  Variable  Interest
          Entities an  Interpretation  of ARB No. 51 was issued in January 2003.
          This interpretation addresses consolidation of business enterprises of
          variable interest  entities.  The objective of this  interpretation is
          not to restrict the use of variable  interest  entities but to improve
          financial  reporting by  enterprises  involved with variable  interest
          entities.  The interpretation applies immediately to variable interest
          entities  created  after  January 31, 2003,  and to variable  interest
          entities in which an enterprise  obtains an interest  after that date.
          The effect of adopting this interpretation on the financial statements
          of the Company has not been determined.

NOTE -18  CONTINGENCIES AND COMMITMENTS
          In the normal  course of  business,  the Bank is  involved  in various
          legal  actions  arising in the  ordinary  course of  business.  In the
          opinion of management,  after  consultation  with legal  counsel,  the
          ultimate  disposition  of  these  matters  is not  expected  to have a
          material adverse effect on the financial position of the Bank.

          Loans sold to Freddie Mac are without recourse unless the Bank did not
          comply with the  requirements or conditions of the purchase  document,
          breached any agreements,  made false warranties or  representations or
          failed to provide Freddie Mac with information that is true,  complete
          and accurate concerning the mortgages.

NOTE-19   RELATED PARTY TRANSACTIONS
          In the  ordinary  course of  business  the Bank has  granted  loans to
          principal  officers and  directors and their  affiliates  amounting to
          $2,223,280 at June 30, 2003 and  $1,018,289  at June 30, 2002.  During
          the  year  ended  June  30,  2003,  total  principal   additions  were
          $1,360,000 and total principal payments were $155,000.

          Deposits from  principal  officers and directors and their  affiliates
          held by the Bank at June 30, 2003 amounted to $1,912,433.

NOTE -20  CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY)

          The following condensed  statements  summarize the financial position,
          operating results and cash flows of High Country Bancorp, Inc.,

                                            2003          2002
                                         -----------   -----------
             CONDENSED BALANCE SHEET
             ASSETS
              Cash and equivalents       $   138,083   $   125,762
              Investment in subsidiary    11,701,665    10,080,587
              ESOP note receivable           415,265       521,065
              Other                           49,131        82,918
                                         -----------   -----------

                                         $12,304,144   $10,810,332
                                         ===========   ===========


                                       32
<PAGE>

                           HIGH COUNTRY BANCORP, INC.

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE -20     CONDENSED FINANCIAL INFORMATION (PARENT COMPANY ONLY) (Continued)

LIABILITIES AND STOCKHOLDERS' EQUITY
    Accruals                                       $    125,801    $     37,447
    Stockholders' equity                             12,178,343      10,772,885
                                                   ------------    ------------

                                                   $ 12,304,144    $ 10,810,332
                                                   ============    ============

CONDENSED STATEMENT OF INCOME

For the years ended June 30, 2003 and
June 30, 2002
Equity in undistributed net income of subsidiary   $  2,175,912    $  1,822,393
Other net                                              (227,458)       (153,314)
                                                   ------------    ------------

                                                   $  1,948,454    $  1,669,079
                                                   ============    ============

CONDENSED STATEMENT OF CASH FLOWS

For the years ended June 30, 2003 and
June 30, 2002
Operating Activities:
Net income                                         $  1,948,454    $  1,669,079
Adjustments to reconcile net income to cash
provided by operating activities:
Equity in undistributed net income of
subsidiary                                           (2,175,912)     (1,822,393)
Other                                                   267,235          34,633
                                                   ------------    ------------

Net cash provided (used) by operations                   39,777        (118,681)
                                                   ------------    ------------

Investing Activities:
ESOP note payment                                       105,800         105,800
Dividends received                                      600,000               0
                                                   ------------    ------------

Net cash provided by investing activities               705,800         105,800
                                                   ------------    ------------

Financing Activities:
Purchase of common stock                               (309,602)     (1,986,832)
Dividends paid                                         (423,654)       (425,165)
                                                   ------------    ------------

Net cash provided (used) by financing activities       (733,256)     (2,411,997)
                                                   ------------    ------------

Net change in cash                                       12,321      (2,424,878)

Cash beginning                                          125,762       2,550,640
                                                   ------------    ------------

Cash ending                                        $    138,083    $    125,762
                                                   ============    ============

                                       33
<PAGE>

                         MARKET AND DIVIDEND INFORMATION

TRADING IN THE COMMON STOCK AND DIVIDENDS PAID

     The Company's  Common Stock is traded on the Nasdaq  SmallCap  Market under
the symbol  "HCBC." As of September 15, 2003,  there were 901,704  shares of the
Common Stock issued and outstanding and  approximately  321 holders of record of
the Common Stock (not including shares held in "street name").

     The following  table sets forth certain  information as to the range of the
high and low bid prices for the Company's common stock for the calendar quarters
since the first quarter of fiscal 2002.

                              HIGH BID (1)      LOW BID (1)      DIVIDENDS PAID
                              ------------      -----------      --------------

     FISCAL 2002:
         First Quarter        $  17.00           $ 15.20             $  --
         Second Quarter          17.50             15.92               0.25
         Third Quarter           17.50             16.75                --
         Fourth Quarter          20.50             17.16               0.25

     FISCAL 2003:
         First Quarter        $  20.10           $ 18.51             $  --
         Second Quarter          24.25             19.50               0.25
         Third Quarter           25.80             23.92                --
         Fourth Quarter          29.41             24.31               0.25


----------
(1)  Quotations reflect inter-dealer price, without retail mark-up, mark-down or
     commissions, and may not represent actual transactions.

DIVIDEND RESTRICTIONS

     The payment of dividends will be subject to the  requirements of applicable
law and the  determination by the Board of Directors of the Company that the net
income,  capital and  financial  condition  of the Company and the Bank,  thrift
industry  trends  and  general  economic   conditions  justify  the  payment  of
dividends,  and there can be no  assurance  that  dividends  will be paid or, if
paid, will continue to be paid in the future.

     The Company has no  significant  source of income other than dividends from
the Bank and interest  payments  from the ESOP.  The payment of dividends by the
Company will depend in large part upon the receipt of  dividends  from the Bank,
which is subject to various tax and  regulatory  restrictions  on the payment of
dividends.   Unlike  the  Bank,   the  Company  is  not  subject  to  regulatory
restrictions  on the payment of  dividends to  stockholders.  Under the Colorado
General  Corporation  Law,  dividends  may be paid  either out of surplus or, if
there is no  surplus,  out of net  profits  for the  fiscal  year in  which  the
dividend is declared and/or the preceding fiscal year.

                                       34
<PAGE>

<TABLE>
<CAPTION>
                                                    BOARD OF DIRECTORS

<S>                                        <C>                                          <C>
LARRY D. SMITH                              PHILIP W. HARSH                             TIMOTHY R. GLENN
President and Chief Executive               Retired Insurance Agent                     Owner and Funeral Director of
Officer of the Company and                                                              Lewis & Glenn Funeral Home
the Bank                                                                                Chaffee County Commissioner


SCOTT G. ERCHUL                             RICHARD A. YOUNG
Vice President of the Company               Partner of Swartz & Young, P.C., CPA
and the Bank


                                                    EXECUTIVE OFFICERS

LARRY D. SMITH                              SCOTT G. ERCHUL                             FRANCES PASQUALE
President and Chief Executive Officer of    Vice President of the Company and the Bank  Chief Financial Officer of the
the Company and the Bank                                                                Company and the Bank


                                                     OFFICE LOCATIONS

     MAIN OFFICE:                               BRANCH OFFICE:                             BRANCH OFFICE:
7360 West US Highway 50                           130 West 2nd                              600 Harrison
  Salida, Colorado                              Salida, Colorado                         Leadville, Colorado

                        BRANCH OFFICE:                              MORTGAGE LOAN PRODUCTION OFFICE:
                     713 East Main Street                              3055 East Highway 50 #E
                    Buena Vista, Colorado                              Canon City, Colorado

                                                    GENERAL INFORMATION

INDEPENDENT PUBLIC ACCOUNTANTS              ANNUAL MEETING                              ANNUAL REPORT ON FORM 10-KSB
Grimsley, White & Company,                  The 2003 Annual Meeting of Stockholders     A copy of the Company's Annual Report
Certified Public Accountants                will be held on November 10, 2003 at 5:00   on Form 10-KSB for the fiscal year
La Junta, Colorado                          p.m. at High Country Bank, 7360 West US     ended June 30, 2003 as filed with the
                                            Highway 50, Salida, Colorado  81201         Securities and Exchange Commission
GENERAL COUNSEL                                                                         will be furnished without charge to
Rush and Rush, P.C.                         TRANSFER AGENT AND REGISTRAR                stockholders as of the record date
Salida, Colorado                            Illinois Stock Transfer                     for the 2003 Annual Meeting upon
                                            209 West Jackson Boulevard                  written request to Richard A. Young,
SPECIAL COUNSEL                             Suite 903                                   Secretary, High Country Bancorp,
Stradley Ronon Stevens &                    Chicago, Illinois  60606                    Inc., P.O. Box 1128, Salida,
   Young, LLP                               Phone: 1-800-757-5755                       Colorado  81201.
1220 19th Street, NW, Suite 600             Fax: 1-312-427-2879
Washington, DC  20036

</TABLE>