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

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

SPRINGFIELD, Ill., Nov. 9 /PRNewswire-FirstCall/ -- Town and Country Financial
Corporation (OTC Bulletin Board: TWCF) reported third- quarter 2009 net income
of $362 thousand, or $0.13 per share, compared to $103 thousand, or $0.04 per
share, in the third-quarter of 2008. As previously reported, there were a
number of nonrecurring items that impacted earnings in the year-ago period.
Current period earnings included after-tax provision expense of ($0.08) per
share.

For the year-to-date 2009, reported net income was $945 thousand, or $0.34 per
share, compared to $527 thousand, or $0.19 per share, for the first nine
months of 2008. Net recurring revenue of $13.0 million through September 30,
2009 represents an increase of $3.1 million, or 32%, over the comparable year
ago period on the strength of lower funding costs and mortgage originations
that totaled $150 million compared to $58 million in the prior comparable
period. The year-to-date provision for loan losses was $1.5 million, $769
thousand due to charge-offs and the remainder added to the allowance for loan
losses. At quarter-end, the allowance for loan losses was 1.71% of loans
outstanding, excluding loans held for sale, compared to 1.39% at year-end
2008. Nonperforming loans as a percentage of total loans was 3.42% in the
current period, up from 1.75% on December 31, 2008.

As of September 30, 2009, total assets were $364 million, total net loans were
$226 million, and total deposits were $297 million. Equity capital was $30
million and the reported book value was $10.57 per share compared to $10.25
per share on December 31, 2008.

The company's Tier 1 capital was $38 million on September 30, resulting in a
Tier 1 leverage capital ratio of approximately 10.3%. Total regulatory
capital was $44 million, an estimated 15.5% of risk-weighted assets.

David Kirschner, Chairman and Chief Executive Officer, commented: "The
quarter's strong revenue base provided support for additional credit
provisions of $360 thousand, $123 thousand of net charge offs and $237
thousand added to reserves. Mortgage originations in the third quarter were
in line with expectations, yet lower than volumes in the first half of 2009
when historically low rates prompted strong refinance activity. We remain
cautious as the economy impacts certain of our borrowers and creates
additional potential credit losses."

The Board of Directors declared a $0.03 per share quarterly cash dividend
payable on December 15, 2009 to stockholders of record December 1, 2009.

Shares of common stock of Town and Country Financial Corporation are quoted on
the OTC Bulletin Board under the symbol TWCF. As of October 2009, the
following market makers are registered to quote stock issued by Town and
Country Financial Corporation on the OTCBB: Automated Trading Desk Financial
Services, LLC, Howe Barnes Investments, Inc., Knight Equity Markets, L.P.,
McAdams Wright Ragen, Inc., Monroe Securities, Inc., Pershing LLC, RBC Capital
Markets Corp., and Stockcross Financial Services.

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

Nancy Bahre, Senior Vice President & Chief Financial Officer of Town and
Country Financial Corporation, +1-217-787-3100, nbahre@townandcountrybank.com