SPRINGFIELD, Ill., April 29, 2011 /PRNewswire/ -- Town and Country Financial Corporation (OTCBB: TWCF) reported first-quarter 2011 net income of $607 thousand, or $0.22 per share, compared with $316 thousand, or $0.11 per share in the first quarter of 2010. Current quarter results included after tax impacts of $88 thousand ($0.03 per share) from the gain on the sale of equity securities and a $148 thousand ($0.05 per share) benefit from an adjustment to mortgage servicing rights from extension in the estimated lives of the underlying loans. The quarter also included a charge of $123 thousand ($0.04 per share) for various foreclosed real estate matters. The first quarter of 2010 included an after tax impairment charge of $89 thousand ($0.03 per share) on certain trust preferred securities.
The Company's results reflected a sound net interest margin, 3.72% compared to 3.47% in the first quarter of 2010, the change primarily due to maturing and repricing term deposits and wholesale funding. Net revenue was $4.4 million and up from $3.9 million due to the strong interest spread, the adjustment to mortgage servicing rights in 2011, and the absence of impairment charges recorded in 2010. Non-interest expense was $3.5 million and $193 thousand higher than the year ago quarter primarily due to the expenses related to foreclosed real estate matters.
Asset quality continued to improve with 1.00% of all loans past due 30 days or more at March 31, 2011 compared to 1.15% at December 31, 2010 and 1.24% at March 31, 2010. In addition, the Company recorded net loan recoveries of 0.03% in the quarter and the ratio of the allowance for loan loss to total loans strengthened to 1.37% from 1.32% on December 31, 2010. As a result, there was no provision for loan loss compared to $110 thousand in the year ago quarter.
As of March 31, 2011, total assets were $365 million, total net loans were $219 million, and total deposits were $311 million. The serviced mortgage portfolio posted growth of $4 million during the quarter and now stands at $345 million. Equity capital was $32.1 million and the reported book value was $11.49 per share compared to $11.13 per share on December 31, 2010.
The company's capital position remained strong with Tier 1 capital of $41 million, or 11.2% of average assets, and total regulatory capital of $46 million, or an estimated 15.3% of risk-weighted assets.
Micah R. Bartlett, President and Chief Executive Officer, commented: "We are pleased with some fundamental strength in our first quarter performance, particularly the net interest spread and continued improvement in our asset quality. While weak loan demand and our lending standards have resulted in no balance sheet growth, we are confident our ever improving capital strength and asset quality combined with our strategic and operational initiatives offer us the ability to look for prudent growth and expansion opportunities as we move forward."
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on June 15, 2011 to stockholders of record June 1, 2011.
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. Town and Country Financial Corporation shares are quoted on the OTC Bulletin Board under the symbol TWCF.
SOURCE Town and Country Financial Corporation