Town and Country Financial Corporation

Reports First Quarter 2010 Net Income

and Declares Quarterly Dividend
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Apr 23, 2010 13:41 America/Chicago

SPRINGFIELD, Ill., April 23 /PRNewswire-FirstCall/ -- Town and Country Financial

Corporation (OTC:TWCF) (BULLETIN BOARD: TWCF) reported first-quarter 2010 net
income of $316 thousand, or $0.11 per share, compared with $343 thousand, or $0.12 per
share in the first quarter of 2009. Adjusted to exclude income from the sale of securities
and a write down due to the impairment of investment securities, net income was $384
thousand, or $0.14 per share compared to $0.15 in the prior year.
The Company experienced continued improvement in its net interest margin, 3.47%
compared to 3.43%. Yet, net revenue was $3.8 million, compared with $4.1million in
2009, both exclusive of security gains and impairments. Driving the year-over-year
change were mortgage originations and related revenues, in line with first-quarter 2010
expectations, yet lower than volumes and revenue in the first quarter of 2009 when
historically low rates prompted strong refinance activity. Partly offsetting the decline
were improving results from the private client group and lower credit costs. The
provision for loan losses totaled $110 thousand compared to $250 thousand in the year
ago quarter based on improved asset quality and lower loan balances. At March 31, 2010,
the company's non-performing loans were 1.24% of total loans, down from 1.65% on
March 31, 2009 and 1.25% on December 31, 2009. Non-interest expense was $3.2
million, compared with $3.4 million in the prior year, due to lower mortgage refinance-
related costs.
As of March 31, 2010, total assets were $365 million, total net loans were $216 million,
and total deposits were $298 million. The serviced mortgage portfolio posted growth of
$4 million during the quarter and now stands at $327 million. Equity capital was $29.8
million and the reported book value was $10.66 per share compared to $10.47 per share
on December 31, 2009.
The company's capital position remained strong with Tier 1 capital of $38 million, or
10.4% of average assets, and total regulatory capital of $44 million, or an estimated
15.5% of risk-weighted assets.
David Kirschner, Chairman and Chief Executive Officer, commented on the quarter: "We
are cautiously optimistic about 2010. While mortgage refinance revenue is off
significantly from last year, our core profitability is improving. Risks of additional credit
losses will remain a potential concern until economic trends improve further. Aggressive
regulatory changes impacting even community banks presents increasing challenges to
operations and profitability."
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on
June 15, 2010 to stockholders of record June 1, 2010.
Shares of common stock of Town and Country Financial Corporation are quoted on the
OTC Bulletin Board under the symbol TWCF. As of April 2010, the following market
makers are registered to quote stock issued by Town and Country Financial Corporation
on the OTCBB: Howe Barnes Investments, Inc., McAdams Wright Ragen, Inc., Monroe
Securities, Inc., Pershing LLC, and RBC Capital Markets Corp.
Town and Country Financial Corporation is the parent holding company for Town &
Country Bank with offices in Springfield, Mt. Zion, Forsyth, and Decatur, Town &
Country Banc Mortgage Services, Inc., and Logan County Bank with offices in Lincoln
and Buffalo.
Source: Town and Country Financial Corporation

CONTACT: Nancy Bahre, Senior Vice President & Chief Financial Officer of
Town and Country Financial Corporation, +1-217-787-3100,
nbahre@townandcountrybank.com
Web Site: http://www.townandcountrybank.com/