2008_3q-earnings_town-and-country-financial-corp_0
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http://www.townandcountrybank.com/sites/default/files/2008_3Q-Earnings_Town-and-Country-Financial-Corp_0.pdfTRANSCRIPT
For Immedia te Re leas e Oc tober 31, 2008 Contact: Nancy Bahre Senior Vice Pres ident & Chief Financia l Officer Town and Country Financia l Corpora tion PO Box 13255 3601 W. Wabash Ave . Springfie ld, IL 62791-3255 (217) 787-3100 [email protected] Town and Country Financ ia l Corpora tion Reports Third Quarte r 2008 Net Income and Dec la res Quarte rly Dividend Springfie ld, Illinois—Town and Country Financia l Corpora tion (TWCF) reported third-quarte r
2008 ne t income of $103 thousand, or $0.04 per share , including an $878 thousand charge for
Other than Temporary Impairment on Fannie Mae and Freddie Mac pre fe rred securities ,
following the government’s conserva torship of those entities , a ga in of $464 thousand on the
sa le of equity securities , and a $215 thousand benefit from accounting adjus tments re la ted to
defe rred tax items and defe rred loan cos ts . Excluding these non-recurring items , current
quarte r ne t income was $301 thousand, or $0.11 per share compared to third-quarte r 2007 ne t
income of $162 thousand or $0.06 per share .
Year-to-da te 2008 ne t income was $527 thousand, or $0.19 per share . Adjus ted to exclude the
non-recurring items , ne t income was $725 thousand, or $0.26 per share , compared to ea rnings
of $795 thousand, or $0.28 per share in the comparable year-ago period adjus ted to exclude a
ga in of the sa le of equity securities and a one-time personne l charge . On a year over year
bas is , our ne t revenue exclus ive of non-recurring items increased $674 thousand, or 7.3%.
As of September 30, 2008, tota l asse ts were $365 million, tota l loans were $230 million, and
tota l depos its were $292 million. Equity capita l was $27 million and the reported book va lue
was $9.71 per share . Impacting equity capita l and book va lue per share was a decline in
Accumula ted Comprehens ive Income of $3.6 million due to marke t va lue adjus tments as
follows :
• certa in pooled trus t pre fe rred securities with a cos t of $10.7 million and a recorded va lue
of $5.5 million on September 30 compared to $9.1 million on June 30. The securities
were not deemed to be impaired on September 30.
• decline in unrea lized ga in on equity securities of $2.9 million during the quarte r, $760
thousand due to actua l sa les and $2.1 million due to a decrease in the marke t va lue .
The company’s es timated tota l risk-based capita l ra tio was 15.97% a t September 30, 2008 and
each of the three subs idia ry banks remain well-capita lized based on regula tory s tandards . The
a llowance for loan losses was 1.31% of loans outs tanding a t September 30, 2008.
Cha irman and CEO David Kirschner noted, “Although the SEC and Financia l Accounting
S tandards Board is sued cla rifica tion to the mark-to-marke t accounting rules a llowing companies
to use the ir own financia l models and judgment for the va lua tion of ce rta in asse ts , we continue
to use independent third party va lua tions for securities he ld in our inves tment portfolio. We a re
pleased tha t despite s ignificant cha llenges in the indus try and economy, our banks each remain
s trong and we a re optimis tic about the future of community banking.”
The Board of Directors decla red a $0.05 per share quarte rly cash dividend payable on
December 15, 2008 to s tockholders of record December 1, 2008.
Shares of common s tock of Town and Country Financia l Corpora tion a re quoted on the OTC
Bulle tin Board under the symbol TWCF (CUSIP # 892039108). As of October, 2008, the
following marke t makers a re regis te red to quote s tock is sued by Town and Country Financia l
Corpora tion on the OTCBB: Automated Trading Desk Financia l Services , LLC, Domes tic
Securities , Inc., Ferris Baker Watts Incorpora ted, Hudson Securities , Inc., Hill Thompson Magid
& Co, Inc., Howe Barnes Inves tments , Inc., Monroe Securities , Inc., McAdams Wright Ragen,
Inc., Knight Equity Marke ts , L.P ., and Pershing LLC.
Town and Country Financia l Corpora tion is the parent holding company for Town & Country
Bank of Springfie ld, Logan County Bank in Lincoln, Town & Country Bank in Buffa lo, Mt. Zion,
and Forsyth, Town & Country Banc Mortgage Services , Inc., and Town & Country Insurance
Services , LLC.