For Immediate Release Contact:
April 28, 2009
Nancy Bahre Senior Vice President & Chief Financial Officer Town and Country Financial Corporation PO Box 13255 3601 W. Wabash Ave. Springfield, IL 62791-3255 (217) 787-3100 nbahre@townandcountrybank.com
Town and Country Financial Corporation Reports First Quarter 2009 Net Income and Declares Quarterly Dividend Springfield, Illinois—Town and Country Financial Corporation (TWCF) reported first-quarter 2009 net income of $342 thousand, or $0.12 per share. Current quarter net income was $410 thousand, when excluding a $67 thousand charge for Other Than Temporary Impairment (OTTI), or $0.15 per share, up 120% compared to first-quarter 2008 net income of $186 thousand, or $0.07 per share.
In the quarter, the company reported record net recurring revenue of $4.252 million for an increase of $1 million, or 30.9%, over the comparable year ago period on the strength of mortgage originations and lower funding costs. The first quarter revenue includes a $165 thousand charge to increase the valuation allowance on mortgage servicing rights. During the quarter, the company added $250 thousand to credit reserves bringing the allowance for loan losses to 1.45% of loans outstanding, excluding loans held for sale, at quarter-end. Nonperforming loans as a percentage of total loans now stand at 1.65%, down from 1.75% on December 31, 2008 and up from 0.85% on March 31, 2008.
As of March 31, 2009, total assets were $375 million, total loans were $235 million, and total deposits were $311 million. Equity capital was $27 million and the reported book value was $9.76 per share. Impacting equity capital and book value per share was a decline in Accumulated Comprehensive Income of $1.6 million due to market value adjustments as follows:
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declines in pooled trust preferred securities with a recorded value of $6.9 million on December 31, 2008 to $4.7 million on March 31, 2009 after the OTTI charge of $15 thousand (pretax).
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declines in the unrealized gain on equity securities of $838 thousand after the OTTI charge of $94M (pretax).
Each of the three subsidiary banks remains well-capitalized based on regulatory standards.
Chairman and CEO David Kirschner noted, “Our bank generated record net revenue during the quarter while also establishing additional loan loss reserves during these uncertain economic times. While pleased with our core revenue growth, we acknowledge the need to further improve earnings while maintaining prudent balance sheet management.”
The Board of Directors declared a $0.03 per share quarterly cash dividend, a reduction from the prior quarterly dividend paid of $0.05 per share. The dividend is payable on June 15, 2009 to stockholders of record June 1, 2009. Kirschner noted that “our current quarter dividend was based on an analysis of core earnings as well as our capital strategy, which is to retain earnings sufficient to support future growth and provide a cushion for unforeseen economic events.”
Shares of common stock of Town and Country Financial Corporation are quoted on the OTC Bulletin Board under the symbol TWCF (CUSIP # 892039108). As of April 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, Hudson Securities, Inc., Howe Barnes Investments, Inc., Monroe Securities, Inc., McAdams Wright Ragen, Inc., Knight Equity Markets, L.P., Pershing LLC, and RBC Capital Markets Corp
Town and Country Financial Corporation is the parent holding company for Town & Country Bank of Springfield, Town & Country Banc Mortgage Services, Inc., Logan County Bank in Lincoln, and Town & Country Bank with branches in Buffalo, Mt. Zion, and Forsyth, and a loan production office in Decatur.