Town and Country Financial Corporation Reports 2009 Net Income and Declares Quarterly Dividend

SPRINGFIELD, Ill., Feb. 1 /PRNewswire-FirstCall/ -- Town and Country Financial Corporation (OTC Bulletin Board: TWCF) reported 2009 net income of $1.0 million, or $0.36 per share, up from $113 thousand, or $0.04 per share, in 2008. Impacting earnings in 2009 was an after-tax provision expense of $1.8 million, or $0.65 per share, representing higher credit costs brought on by weakness in the economy. Adjusted to exclude income from the sale of securities and a write down due to the impairment of investment securities, net income was $1.2 million, or $0.44 per share compared to $0.28 in the prior year.

The company's net revenue hit an all-time high in 2009. Driven by further improvement in the core net interest margin as well as strong mortgage fee income, net revenue reached $17.8 million compared to $12.9 million in 2008, both exclusive of security gains/losses and impairments. Partly offsetting record revenue, were high credit costs related to loan losses brought on by economic weaknesses impacting consumers and business. The provision for loan losses totaled $3.0 million and was driven by net charge-offs that were 1.53% of average total loans outstanding. At December 31, 2009, the company's non-performing loans had improved to 1.24% of total loans compared to 1.75% last year. The allowance for loan losses ended the year at 1.20% of total loans and 97% of nonperforming loans.

At year-end, total assets were $375 million, total net loans were $220 million, and total deposits were $305 million. The serviced mortgage portfolio was $323 million at the end of 2009, up $35 million, or 12% from the year ago. Equity capital was $29.2 million and the reported book value was $10.47 per share compared to $10.25 per share on December 31, 2008.

The company's capital position remained strong with Tier 1 capital of $38 million, or 10.2% of average assets, and total regulatory capital of $43 million, or an estimated 14.2% of risk-weighted assets.

David Kirschner, Chairman and Chief Executive Officer, commented: "2009 represented a year of both significant opportunities and significant challenges. We have continued to build the company's long-term earnings strength as evidenced by our record revenues. Our core banking profitability improved and the investments we made in our mortgage business resulted in increased market share and profitability. And yet, we were significantly impacted by the heightened level of credit losses. While our year-end asset quality ratios show improvement, we remain cautious about near-term credit risk based on the economic realignment underway."

The Board of Directors declared a $0.03 per share quarterly cash dividend payable on March 15, 2010 to stockholders of record March 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 January 2010, the following market makers are registered to quote stock issued by Town and Country Financial Corporation on theOTCBB: Automated Trading Desk, Howe Barnes Investments, Inc., Knight Equity Markets, L.P., 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