PICKING. UP. SPEED SPEED.
2015 Summary Annual Report
MISSION
Empowering the financial well-being of our communities, one person at a time.
VALUES
• We believe money should be a source of empowerment, not a source of anxiety! • We start with our employees—when they’re happy, our clients are happy! • We are measured by the success of our clients— when they succeed, we succeed! • We embrace the opportunity to serve— with integrity!
TABLE OF CONTENTS 2015 Summary Annual Report
3. Letter to Shareholders 8. Financial Summary 10. Management’s Discussion and Analysis 14. Board of Directors and Senior Management
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 2
FELLOW SHAREHOLDERS, In school, we learned that Momentum = Mass x Velocity. At Town and Country, we have momentum.
MOMENTUM
David E. Kirschner
Micah R. Bartlett
LETTER TO SHAREHOLDERS We anticipate many more fun years together—building downstate Illinois’ most innovative and exciting banking organization!
2015 was a tremendous year for our company, both financially and strategically. We posted record profits, grew our balance sheet, finished and started some exciting initiatives, and announced the largest acquisition in our company’s history. On February 29, 2016, we completed the acquisition of West Plains Investors, Inc. and Premier Bank of Jacksonville, taking our assets to approximately $700 million and further expanding our markets in central Illinois and into the metro-east market of St. Louis. In addition to entering Madison County with the Edwardsville branch of Premier, we also announced on January 27, 2016, an agreement to acquire a branch in Fairview Heights from Centrue Bank, further positioning our company in metro-east and into St. Clair County. When employees asked what made us most excited about these accomplishments, we said, “They represent tremendous momentum and opportunity for our company.” Most importantly, we want to again warmly welcome our new customers and employees from Premier Bank of Jacksonville to the Town and Country family. We also want to welcome Paul White and Kent Weber to our senior management team and Bart Solon to our board of directors. We anticipate many more fun years together—building downstate Illinois’ most innovative and exciting banking organization!
THE PHYSICS ARE WORKING
In addition to our growth in 2015, we posted record profits of $3.9 million. While this number included realized gains on equity securities, it also included several one-time TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 3
0.8 0.4
costs associated with our acquisition of Premier and the establishment 0.0 of a new captive insurance entity—Town and Country Risk Management, Inc.—and other similar costs. Even when excluding those items, our core operating profits were higher than expected and up 23% from 2014. During 2015, we further improved our strong regulatory position and continued to enjoy strong asset and credit quality metrics, as evidenced by our non-performing asset ratio of 0.7% and allowance coverage ratio of 197%. We maintained our common dividend— balancing return to shareholders along with the need to further build our capital to support future growth capacity—and recorded an increase in our book value per share from $15.44 to $15.59. While we posted earnings per share at a record level of $1.37, we also realized a ($0.69) per share reduction in our unrealized gains in equity securities. Our common equity capital grew to $44.3 million and our year-end total risk-based capital ratio was 12.5% for Town and Country Bank. Basic Earnings Per Share
$1.60
Whether it is assets, revenue, people, or energy, we will continue to build our mass in order to remain a relevant and valued partner in our customers’ financial lives.
We are extremely pleased to report that each of our core lines of business showed positive trends yet again in 2015.
$0.80 $0.40
MASS
During 2015, our total customer relationships grew by $59 million as a result of growth in each of our lines of business. Total assets increased $21 million, loans increased $15 million, serviced loans increased $42 million, deposits increased $5 million, and our trust and investment assets grew $6 million. As I write this letter, our assets have grown to approximately $700 million and we now have over 175 professionals employed in our company, serving thousands of customers at 13 branches located in seven counties.
VELOCITY
$1.20
$0.00
—at every level—who truly understand and live our mission every day: “Empowering the financial well-being of our communities, one person at a time.”
2011
2012
2013
2014
2015
Size doesn’t matter. Size matters. You can make an argument either way. What really matters is having the critical mass—however you measure it—to be able to effectively compete in today’s evolving, complex, and highly competitive financial services industry. The reason it matters is because we owe it to our customers to be capable of providing them high-quality products and services, innovative technology, convenience, and a growing lending capacity. We are very competitive in those categories, but what truly sets us apart is our people, our culture, and our approach. We have created a family of professionals in our company
Retail Banking. We have continued our outreach efforts and customer relationship management practices based on our unique approach to creating mutually beneficial and REaL connections with our customers. Over the last several years, the intention behind our enhanced outreach approach was to establish deeper relationships with our customers, engage them in discovering and realizing their financial goals, and linking them to innovative products and solutions. We believe we thrive as our customers thrive. The results have been impressive. As reported last year, in 2014 we opened 36% more checking accounts than the year before. And we continued that momentum in 2015, adding another 15% in “same-branch” production to our annual volume. After several years of declining consumer lending, in 2015 we expanded our retail focus and increased our new consumer lending production by over 70%, resulting in portfolio growth of 20%. During 2016, we plan to continue this momentum while providing additional emphasis to our micro and small business outreach efforts. TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 4
450000 400000
Also during 2015, we completed the closure of two branches as discussed in last year’s annual report, while reinvesting resources in technology, products, people, and our new branch under construction in Quincy. We also announced the acquisition and future remodeling of a building in downtown Decatur, which will become our permanent home there. Checking Accounts
Number outstanding and same branch production
360000 270000 180000 90000 0 2011
2012
2013
# Outstanding Checking Accounts
2014
2015
Same branch production
Commercial Banking. During the year, we added two additional seasoned commercial banking professionals to our already best-inclass commercial banking organization and added to our expertise in micro 160and small business lending by becoming both an SBA Express and Preferred Lender. We realized a 22% increase in cash management and120 other non-interest related revenue, a 13% increase in commercial deposit business, and a 9% increase in commercial loans. In addition, 80 we internally launched some new specialty initiatives that we will publicly announce in the coming months. 40
Commercial Loans
0 16000 12000 8000 4000
Balance outstanding in 000s and % change from prior year-end
$360,000 +23%
$270,000 $180,000
+16%
+9%
+12%
$90,000
Mortgage Loans Serviced Mortgage Banking. Balances in 000’s We continue to be a $500,000 downstate leader in +10% $450,000 mortgage banking. +3% We have the top team +3% $400,000 +7% of retail mortgage +5% originators in our core $350,000 markets and offer the broadest product set $300,000 2011 2012 2013 2014 2015 and technology of any community banks against which we compete. During 2015, our mortgage loan transactions grew in excess of 26% over 2014, our Community Mortgage Partners (“CMP”) program experienced a 22% year-over-year increase in loan purchase volume, and our CMP partners experienced a combined growth of 136% in government loans—an area of competitive advantage for our company. The net result was an increase in our net mortgage banking profitability of nearly 190%. In early 2016, we added an additional staff resource to bring on additional CMP clients, while also assisting our current partners improve the performance of their own mortgage lending programs.
In short: We’re picking up speed!
$0 2011
0
+3%
Trust Revenue Trust and Investment350000$700,000 Services. Despite 300000$525,000 a year of market volatility, we continued to add new clients and added new $350,000 annualized revenue of $175,000 approximately 16% in our Trust and Investment $0 2011 2012 2013 2014 2015 Services business. This increase was spread amongst our various products and services— including traditional trust business, investment management, and employee benefits, among other classes. We continued to invest in our infrastructure and completed a system conversion in July that expands our capability to offer a state-of-the-art trust platform to our clients as well as back office services to other community bank trust departments.
2012
2013
2014
2015
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 5
A FORMULA FOR VALUE
HONORING OUR PATH
Customer Intimacy. As stated earlier, our customer relationship management practices and internal culture are what truly set us apart. The reason: They are authentic! While many other banks try to put a fancy marketing slogan around what is otherwise sales-based product pushing, we relentlessly reinforce our values and approach in all corners of our company. The results mentioned above, along with the comments from our customers and employees, are the positive reinforcement we need to know our unique approach to banking works.
OUR PEOPLE ARE THE “X” FACTOR
We continue to focus on our four major strategic themes established over a year ago: customer intimacy, diversification, expansion, and scale. Over the last year, we have made significant progress in each area.
Diversification. In this rapidly changing industry, continued diversification of our products, lines of business, and revenue sources is a key ingredient to thriving and improving our franchise value. During 2015, we continued to make investments in existing and new non-traditional business lines. As a result, our non-interest revenue mix improved from 31% in 2014 to 35% in 2015, a level that is enviable for most community banks. Expansion. Markets can be defined by geographies, products, niches, and in many other ways. While we continue to build our core markets, we also expand into new ones. The acquisition of Premier represents the largest expansion in our history. In addition to solidifying our position in central Illinois, it allowed us to enter into the larger metroeast market of St. Louis. We have been active in this market through our Community Mortgage Partners program and are now excited to begin competing directly. Scale. It wasn’t always the case, but community banks must gain scale in order to afford the technology, product innovation, and staff specialists necessary to compete today. Our organic and acquisitive growth will not only improve our efficiency ratio and allow us to leverage past investments in people and technology, but it will also afford us the resources to increase the speed of our advancement.
The path and principles of our current success were laid many years ago. And this year, we lost a very important part of that history. Robert Evans passed away in November at the age of 80. Mr. Evans served on our board of directors from 1978 to 2009, having been an early supporter and investor in Town and Country. He was a successful, practical, insightful, and fun businessman and a constant champion of Town and Country for many years. We miss him and want to thank and honor him for his significant contributions to this company and his community.
There’s no better way to put it: We have the best team of banking professionals in downstate Illinois. We have a group of positive, passionate, and forward-thinking individuals that believe in our mission, believe in our customers, and believe in our company and each other. They have worked extremely hard this past year and have accomplished great things. We are inspired by them daily and appreciate their efforts and loyalty all year long. They are the “X” Factor in our formula for momentum! And, finally, we want to again express our appreciation for our shareholders—old and new—for being such a constant source of enthusiasm and support for the growth and momentum in this organization.
Sincerely,
Micah R. Bartlett President & CEO
David E. Kirschner Executive Chairman
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 6
HERE WE GROW AGAIN
We expanded in 2015 and are now located in seven counties, serving 29 counties.
LOGAN ADAMS
Community President Brian Ash County Population 29,746
Community President Kellie Kurre County Population 66,988
MACON MORGAN Community President Larry Anderson
Community President Paul White
County Population 108,350
County Population 34,929
GREENE SANGAMON Community President Paul White County Population 13,434
MADISON Community President Kent Weber County Population 266,560
Source: http://www.census.gov/quickfacts (Population estimates, July 1, 2014).
President and CEO Micah Bartlett County Population 198,997
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 7
425000
35000
3000
362500
30000
2500
FINANCIAL SUMMARY
300000
2000
25000
in thousands except per share and ratio data 25000
400000
20000
300000
15000
200000
10000
100000
5000
Total Assets
$550,000
Net Income
Total Stockholders’ Equity
0 $45,000
$4,000
$487,500
$40,000
$3,500
$425,000
$35,000
$3,000
$362,500
$30,000
$2,500
$300,000
$25,000 2011
2012
2013
2014
2015
2012
2013
$25,000
$400,000
$20,000
$300,000
$15,000 $10,000
2012
Net Interest Income Service Charges
2013
2014
Mortgage Banking Other
2015
2015 Trust
+10%
+2%
+30%
-2%
+30%
2011
2012
2013
2014
2015
Nonperforming Loans to Total Loans
% change from prior year-end
$4,000
3.00%
$3,000
2.25%
$200,000
$2,000
1.50%
$100,000
$1,000
0.75%
+23%
2011
2014
Total Loans Excluding Held for Sale
Revenue Components
$5,000
$2,000 2011
% change from prior year
$0
+1%
+7%
+13% +10%
2011
2012
2013
2014
2015
$0
2011
2012
Nonperforming Loans
2013
2014
2015
0.00%
NPLs / Loans
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 8
SUMMARY OF CONSOLIDATED FINANCIAL HIGHLIGHTS in thousands except per share, shares outstanding, and ratio data As of or for the year ended December 31, Selected income statement items Other non-interest income Income from mortgage banking activities Net interest income Total net revenue Provision for credit losses Noninterest expense Income before income tax expense and nonrecurring items Income tax expense Net income before nonrecurring items Net income from nonrecurring items Net income Preferred stock dividend Net income available to common stockholders
2015
2014
2013
2012
2011
$3,666
$3,295
$3,344
$2,913
$2,618
4,464
3,371
4,451
5,975
2,875
15,437 23,567 1,030 17,551
14,929 21,595 215 17,254
14,071 21,866 566 17,221
13,299 22,187 700 17,161
12,641 18,135 14,251
4,986
4,126
4,080
4,326
3,884
1,542
1,330
1,384
1,462
1,265
3,444
2,796
2,696
2,864
2,619
459
215
383
144
117
3,903
3,011
3,079
3,008
2,736
50
50
50
102
78
$3,853
$2,961
$3,029
$2,906
$2,657
2015
2014
2013
2012
2011
8.66% 0.77%
7.15% 0.60%
7.92% 0.61%
8.36% 0.66%
8.23% 0.72%
11.4%
NA
NA
NA
NA
11.4%
11.6%
11.4%
12.6%
14.4%
12.5%
13.1%
12.8%
14.2%
15.9%
$520,344 106,827
$498,968 107,832
$508,018 113,623
$456,298 121,162
$380,277 95,196
364,761
350,980
344,481
280,560
248,398
447,649
405,811
394,137
383,212
357,172
402,702 44,347
397,516 43,118
411,615 39,678
383,037 36,795
313,548 33,240
$4,278 $2,166 $380
$3,504 $608 $522
$3,508 $1,228 $1,440
$3,194 $2,320 $567
$2,899 $1,558 $971
1.18%
1.03%
1.04%
1.16%
1.19%
197%
577%
286%
138%
186%
$257
$219
$252
$405
$19
0.07%
0.07%
0.08%
0.16%
0.01%
Return on common equity Return on assets Common equity tier 1 as of 12/31/15 (TCB only) Tier 1 leverage ratio as of 12/31/15 (TCB only) Total risk-based capital ratio as of 12/31/15 (TCB only) Selected balance sheet data (period-end) Total assets Securities Net loans including loans available for sale Mortgage loans sold with servicing retained Deposits Total stockholders’ equity Credit quality
Detail nonrecurring (after tax): Gain on sale of securities Other nonrecurring
As of or for the year ended December 31, Selected ratios
$795 $(336)
$215 $-
$383 $-
$83 $61
$117 $-
Basic earnings per share Cash dividends declared per share Book value per share
$1.37 $0.12 $15.59
$1.06 $0.12 $15.44
$1.08 $0.12 $14.21
$1.04 $0.12 $13.18
$0.95 $0.12 $11.90
Weighted-average common shares outstanding (net of treasury shares)
2,819,097
2,792,704
2,792,704
2,792,704
2,792,704
Per common share
Allowance for loan loss Nonperforming loans (NA + 90 DPD) OREO Allowance for loan loss to total loans, excluding loans held for sale Coverage (allowance for loan loss to nonperforming loans) Net charge-offs Net charge-off rate (to average loans)
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 9
MANAGEMENT’S DISCUSSION AND ANALYSIS OVERVIEW
Town and Country Financial Corporation (“Company”) is a financial holding company conducting operations through its bank subsidiary, Town and Country Bank, and the Bank’s mortgage subsidiary, Town & Country Banc Mortgage Services, Inc. The Company offers loan, investment, trust, deposit, and cash management services to businesses, organizations, and families through electronic delivery and at its nine bank branches as of December 31, 2015, located in the Central Illinois communities of Buffalo, Decatur, Lincoln, Mt. Zion, Quincy, and Springfield. Approximately 145 individuals were engaged in providing these services. On September 30, 2015, the Company announced its agreement to acquire West Plains Investors, Inc. and its wholly-owned subsidiary, Premier Bank of Jacksonville, with bank branches located in Edwardsville, Jacksonville, Waverly, and White Hall, Illinois. The acquisition was completed on February 29, 2016, adding assets of approximately $186 million and 30 employees to Town and Country Bank. The Company formed Town and Country Risk Management, Inc. on December 23, 2015, a direct (captive) property and casualty insurance company. On January 27, 2016, the Company announced its agreement to acquire the Fairview Heights, Illinois branch of Centrue Bank. The purchase is expected to be completed by the end of the second quarter, pending regulatory approval. Town and Country Bank will acquire approximately $13.0 million in deposits and $7.9 million in loans, in addition to the bank branch building. TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 10
INCOME STATEMENT
Town and Country Financial Corporation reported 2015 full-year net income of $3.9 million on net revenue of $23.6 million compared with $3.0 million and net revenue of $21.6 million in 2014. Preferred dividends of $50 thousand in 2015 and 2014, which was a 1% dividend rate, were paid to the U.S. Treasury based on our September 2011 participation in their Small Business Lending Fund program. As a result, net income available to common stockholders was $1.37 per share compared to $1.06 in 2014. The return on common equity was 8.7%, up from 7.2% in the prior year.
YEAR ENDED DECEMBER 31, 2015
$ in thousands
Selected income statement
2015
2014
Change
2013
Total net revenue
$23,567
$21,595
9.1%
$21,866
17,551
17,254
1.7%
17,221
Pre-tax, pre-provision income
6,016
4,341
38.6%
4,646
Provision for credit losses (PT)
1,030
215
379.1%
566
Security gains (loss) (AT)
795
215
263.5%
383
Other nonrecurring (AT)
(336)
–
NA
–
Net income
3,903
$3,011
29.6%
$3,079
Net income available to common stockholders
$3,853
$2,961
30.1%
$3,029
Return on common equity
8.7%
7.2%
20.3%
7.9%
Basic earnings per share
$1.37
$1.06
28.9%
$1.08
$44,347
$43,118
2.9%
$39,678
1.7%
0.5%
233.0%
0.8%
Total noninterest expense
Book equity Past due and nonperforming loans
Net interest income was $15.4 million in 2015, up 3% compared to $14.9 million in 2014. Full year average commercial loans outstanding were up 6%, partially offset by a 6% reduction in 1-4 family residential loans and a 4% reduction in investments. Interest expense declined by 4% from 2014 to 2015, driven by growth in non-interest bearing deposits and declines in time deposits. As a result of these changes, the fully tax equivalent net interest margin improved to 3.39% in 2015 from 3.30% in 2014. Total non-interest income increased by $2.4 million, or 34%, to $9.4 million, driven by nonrecurring gains from the sale of equity securities that were $948 thousand higher in 2015 compared to 2014. Fee income, excluding the equity security gains, increased by 22%, driven by a 32% increase in mortgage banking fees from growth in the Community Mortgage Partner program. All other non-interest income was up 11%, driven by expanded bank-owned life insurance assets, trust fees, deposit service, and loan charges. The provision for loan losses was $1.0 million in 2015 based upon strong commercial loan growth and specific reserves established on two different commercial real estate credits. Net charge offs totaled $257 thousand, or 0.07% of average loans. The 2014 provision was $215 thousand based on 2% loan growth and $219 thousand in net charge offs. Non-interest expense was $18.1 million, up $850 thousand, or 5%, from its 2014 level. Driving the increase were various one-time costs associated with the creation of the Company’s captive insurance entity and the WPI/Premier acquisition that totaled $553 thousand. The remaining increase of $297 thousand was due to higher costs from expanded mortgage banking activities, additions to customer-facing staff positions, and continued investment in technology platforms, particularly those that focus on fraud prevention and data protection. Excluding nonrecurring items mentioned above, the Company reported normal operating after-tax income of $3.4 million in 2015, $648 thousand, or 23%, higher than net income reported in 2014. TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 11
BALANCE SHEET Total assets were $520 million at December 31, 2015, an increase of $21 million, or 4%, from assets at December 31, 2014. The investment portfolio was down $1 million while commercial loans were up $23 million, or 9%, at this year-end compared to last. Off-balance sheet mortgage loans sold with servicing retained were $448 million at year-end, up $42 million, or 10%, compared to the balance at December 31, 2014. Total deposits were $403 million on December 31, 2015, and $5 million, or 1%, above the year-ago. The Bank closed a single branch on November 1, 2014, and two branches on January 31, 2015, with minimal deposit and customer losses to report. Increases in non-maturity deposits of $10 million, or 4%, partially offset by a $5 million reduction in time deposits, and additional advances from the FHLB funded the asset growth Moreover, as part of its overall funding and risk management strategy, the Company entered into additional interest rate swap agreements in order to manage its interest rate risk. The notional amount of such agreements totaled $49 million at December 31, 2015, up from $15 million at the end of 2014. Asset quality was strong in 2015 with nonperforming loans, defined as loans 90+ days past due and nonaccrual loans, equal to 1.18% of total loans compared to 1.03% at the prior year-end. The allowance for loan loss increased to $4.3 million, and was 197% of nonperforming loans. Nonperforming assets (nonperforming loans plus other real estate) were $2.5 million compared to $1.1 million at December 31, 2014. The Company maintained its investment in pooled trust preferred securities, which securities generally represent the preferred securities of small and mid-sized bank holding companies. The assets were valued at $6.7 million at December 31, 2015, with an amortized cost of $8.9 million.
Common equity capital was $44 million with a book value per share of $15.59 compared to $43 million and $15.44 at December 31, 2014. On July 1, 2015, the Company reissued 52,500 shares of treasury stock as part of a restricted stock plan, reducing the book value per share by $0.29. Another factor that affected the Company’s book value was a $0.79 reduction in the market value of the investment portfolio, both debt and equity, and due in part to the sale of certain equity securities. Town and Country Financial Corporation is considered a small bank holding company and therefore Basel III capital standards do not apply. Town and Country Bank’s capital levels under the Basel III transitional standardized approach are strong, with common equity tier 1 capital of $46 million, or 11.4%, and total risk-based capital of $51 million, or 12.5% of total risk-based assets. The Tier 1 leverage and total risk-based capital ratios were 11.6% and 13.1%, respectively, at December 31, 2014. On March 8, 2016, the Company redeemed 100% of shares of its preferred stock issued in September 2011 to the U.S. Treasury in exchange for its participation in their SBLF program. As a result, total equity capital declined by $5 million.
The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions identify forward-looking statements.
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 12
THE FORMULA TO OUR SUCCESS IS OUR PEOPLE We want to take a moment to honor and thank the many banking professionals that work for our company.
Matthew, Lawrence, Kim, D i a n a , Brian, Nancy, James, Penny, Jason, Micah, Daniel, Jeffrey, Kristopher, Paula, Joy, Kim, Mark, Barbara, Steve, Scott, Jamie, Ryan, Barb, Bridget, Rebecca, Stacy, Robert, Ryan, Lance, Katie, Kristina, John, Timothy, Anthony, Cynthia, Stephanie, Barbara, Sarah, Gregor y, Emily, Charles, Christopher, Deanna, Joleen, Paul, Charles, Ta m m y , Gregor y, David, Brenda
Paul, Joyce, Barb, Matthew, Robert, Jaime, Dana, Kylee, Brad, Heather, William, Candice, Ann, Melissa, Jen, Brenda, Patricia, Andrea, John, Athena, Kari, Jenna, Becky, Jessica, Abby, Kent, Grant, Hannah, Jessica, Amanda, Kellie, Thomas, Tina, John, Valarie, Steven, Michael, Regina, Karylle, Adrienne
Michelle, Gina, Carissa, Corie, Bro c k, Lora, Michael, Rick, Jana, Sharon, Mar y Susan, Harold, Jean, Danielle, Amy, Timothy, Jordan, H e a t h e r, Stephanie, Kenna, Jeff, Anne, Je s s i c a , Thomas, Mary, Liz, Phyllis, Christine, Wendy, Lisa, Shirley, David, Stacey, Ann, Alli, Bridget, Barbara, Rebecca, Breeanna, Shaun, Susan, Cory, Darcy, Julie, Sara, Jo, Virginia, Vickie, Laurie, Terri, Marsha, Brooke, Kelly, We n d y
Heather, Ti mothy, Jennifer, Alberta
A n d r e w, Jeff, Robyn, Tracy, James, Gayle, Amy, Teresa, Alexa, Miranda, Courtney, Josephine, Sheri, Tara, Pa tri c k, Sharon, Jo e l l e n , Tara, Amy, Brenda, Meredith, M e g a n , Debra, Ed, S a r a h , Gwen, Ann, Sandra, Matthew, Tonya, Denise, Nicholas, Steve, Lacey
MOMENTUM = MASS X VELOCITY
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 13
BOARD OF DIRECTORS (Left to right) John S. Cobb, Attorney, Samuels, Miller, Schroeder, Jackson & Sly L.L.P.; John E. Staudt, Vice Chairman, Director of Commercial Banking and Credit, Town and Country Financial Corporation; Donald H. Evans, Owner, Evans Construction Company; David E. Kirschner, Executive Chairman, Town and Country Financial Corporation; Micah R. Bartlett, President & CEO, Town and Country Financial Corporation; Mark O. Roberts, Jr., President & Chairman of the Board, Standard Mutual Insurance Company; Louis H. Dixon, Engineer & Senior Vice President, Crawford, Murphy & Tilly, Inc.; Dewey R. Yaeger, Retired; and Bart J. Solon, Farmer & Consultant, Solon Farms, LLC.
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 14
SENIOR MANAGEMENT (Left to right) Brian K. Ash, Executive Vice President, Community Bank President (Logan County); Bob Cotner, Senior Vice President, Director of Operations and Information Technology; David E. Kirschner, Executive Chairman, Town and Country Financial Corporation; Micah R. Bartlett, President & CEO, Town and Country Financial Corporation; Dana M. Dow, Chairman, President & CEO, Town & Country Banc Mortgage Services, Inc.; Paul D. White, Executive Vice President, Community Bank President (Morgan & Greene Counties); and Nancy J. Bahre,, Executive Vice President & CFO, Town and Country Financial Corporation.
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 15
SENIOR MANAGEMENT (Left to right) Thomas M. Gallagher, Senior Vice President, Trust & Investment Services; Kent M. Weber, Executive Vice President, Community Bank President (Madison County); Larry D. Anderson, Executive Vice President, Community Bank President (Macon County); Bridget C. Castle, Vice President, Director of Internal Audit & Compliance; John E. Staudt, Vice Chairman, Director of Commercial Banking and Credit, Town and Country Financial Corporation; Kellie R. Kurre,, Executive Vice President, Community Bank President (Adams County); and Jason Barth,, Executive Vice President, Director of Human Resources, Marketing and Retail.
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 16
“One way to keep momentum going is to constantly have greater goals.” – Micah R. Bartlett
“While a good leader sustains momentum, a great leader increases it.” – Tom Johnson
“End results never start out easy, don’t stop now!” – Terri Napierski
“Success is connected to action. Successful people keep moving. They make mistakes, but they don’t quit.” – Kylee Durbin
“To GROW, you must turn a negative into a positive. To SUCCEED, you must be challenged.” – Josie Pucci
“We keep moving forward, opening new doors, and doing new things because we’re curious and curiosity keeps leadings us down new paths.” “Momentum equals growth. I am so grateful to be a part of a bank that is forward thinking. There is risk in being stagnant; it’s easier, but not better for our customers.”
– Jamie Bushnell
– Bridget Castle
“If you aren’t afraid of the speed, then you aren’t going fast enough.” – Stephanie Hughes
“Sempre Avanti” translation “Ever forward and always ahead.” – Stephanie Verardi TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 17
CORPORATE INFORMATION Town and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in Buffalo, Decatur, Edwardsville, Jacksonville, Lincoln, Mt. Zion, Quincy, Springfield, Waverly, and White Hall, and Town & Country Banc Mortgage Services, Inc. STOCK TRADING Town and Country Financial Corporation shares are traded under the symbol TWCF. AUDITED FINANCIAL INFORMATION To review our 2015 audited financial information, please visit our website www.townandcountrybank.com. Click on “About Us” and then “Our Structure”. TRANSFER AGENT Town and Country Financial Corporation acts as its own Transfer Agent. Contact us by calling 866.770.3100 with questions on registrations or stock transfer instructions. Mail requests to our Corporate Office at the following address: Town and Country Financial Corporation 3601 Wabash Avenue Springfield, IL 62711 www.townandcountrybank.com
TOWN AND COUNTRY FINANCIAL CORPORATION | 2015 SUMMARY ANNUAL REPORT | 18
866.770.3100 www.townandcountrybank.com