For Immediate Release Contact:
July 29, 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 email@example.com
Town and Country Financial Corporation Reports Second Quarter 2009 Net Income and Declares Quarterly Dividend Springfield, Illinoisâ€”Town and Country Financial Corporation (OTCBB: TWCF) reported second-quarter 2009 net income of $241 thousand, or $0.09 per share, compared to $238 thousand, or $0.08 per share, in the second-quarter of 2008. Current-quarter earnings reflect after-tax impacts from the FDIC special assessment of ($0.04) per share and provision expense of ($0.20) per share.
For the first-half 2009, net income was $583 thousand and $0.21 per share compared with net income of $424 thousand and $0.15 per share in the first half of 2008. Record net revenue of $8.9 million in the first half of 2009 represents an increase of $2.5 million, or 39%, over the comparable year ago period on the strength of mortgage originations and lower funding costs. The first half revenue included a $241 thousand charge to increase the valuation allowance on mortgage servicing rights. First half provision for loan losses was $1.182 million due to higher charge-offs as well as a strengthening of the allowance based on the economic environment. At quarter-end, the allowance for loan losses was 1.62% 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 2.47% in the current period, up from 1.75% on December 31, 2008.
As of June 30, 2009, total assets were $372 million, total net loans were $231 million, and total deposits were $305 million. Mortgage loans sold and serviced were $308 million, up 7.0% over the balances reported at year-end 2008. Equity capital was $29 million and the reported book value was $10.43 per share compared to $10.25 per share on December 31, 2008.
During July 2009, the company consolidated its three subsidiary bank charters into two and each remains well-capitalized based on regulatory standards. The company’s Tier 1 capital was $37 million on June 30, resulting in a Tier 1 leverage capital ratio of approximately 10%. Total regulatory capital was $44 million, an estimated 15.2% of risk-weighted assets.
Chairman and CEO David Kirschner noted, “We are proud to report net revenue growth that was 2.4 times overhead growth. Yet, increased provision expense partially offset our record revenue as we experienced some credit losses and the need to strengthen reserves for possible future loan losses based on economic conditions. We remain optimistic about improvement in core profitability but cautious about credit issues.”
The Board of Directors declared a $0.03 per share quarterly cash dividend payable on September 15, 2009 to stockholders of record September 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 July 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, and RBC Capital Markets Corp.
Town and Country Financial Corporation is the parent holding company for Town & Country Bank with branches in Springfield, Mt. Zion, and Forsyth, and a loan production office in Decatur, Town & Country Banc Mortgage Services, Inc., and Logan County Bank with branches in Lincoln and Buffalo.