For Immediate Release July 26, 2010 Contact: 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 Second Quarter 2010 Net Income and Declares Quarterly Dividend Springfield, Illinois—Town and Country Financial Corporation (OTCBB: TWCF) reported

second-quarter 2010 net income of $366 thousand, or $0.13 per share, compared with $240

thousand, or $0.09 per share in the second quarter of 2009. Adjusted to exclude income from

the sale of securities and a write down due to the impairment of investment securities, net

income was $378 thousand, or $0.14 per share compared to $0.06 in the prior year. The

current quarter’s earnings included an after-tax charge of $154 thousand, or $0.06 per share, to

increase the valuation allowance on mortgage servicing rights and record the mortgage pipeline

and secondary market positions at their current market value. The adjustment was due to

recent substantial declines in mortgage market rates that may signal a new refinance market.

For the first-half 2010, net income was $682 thousand, or $0.24 per share, compared with net

income of $583 thousand and $0.21 per share in the first half of 2009. The absence of the

mortgage refinance market that drove substantial revenue and earnings into 2009 was

compensated for in 2010 by strength in net interest income, improving credit quality, continued

growth from the private client group, and lower non-interest expense. First half 2010 net

interest income was $5.8 million and 2.7% above the year-ago level, contributing to a net

interest margin of 3.55% compared to 3.37% in 2009. The provision for loan losses was $300

thousand compared to $1.2 million in the prior year. At quarter-end, the allowance for loan

losses was 1.26% of loans outstanding, excluding loans held for sale, compared to 1.22% at

year-end 2009. Nonperforming loans as a percentage of total loans was 1.10% in the current

period, down from 1.25% on December 31, 2009. Non-interest expense was $6.6 million

compared with $7.2 million in the prior year, primarily due to lower mortgage refinance-related

costs and the absence of 2009’s special FDIC assessment.

As of June 30, 2010, total assets were $371 million, total net loans were $224 million, and total

deposits were $302 million. The serviced mortgage portfolio posted growth of nearly $7 million

since year-end and now stands at $330 million. Equity capital was $30.3 million and the

reported book value was $10.84 per share compared to $10.47 per share on December 31,

2009.

The company’s capital position remained strong with Tier 1 capital of $38 million, or 10.5% of

average assets, and total regulatory capital of $44 million, or an estimated 14.1% of risk-

weighted assets compared to 14.9% on December 31, 2009. The decline in the total regulatory

capital ratio is a result of our holding of certain trust preferred assets whose current credit

ratings require greater capitalization.

David Kirschner, Chairman and Chief Executive Officer, commented on the quarter: “Although

the recent reduction in mortgage rates caused a dip in current quarter profits, it also provides

another opportunity for individuals to buy homes or refinance their mortgage at new, historically

low rates. We are pleased too with the continued improvement in core profitability and overall

credit quality as indicated by improved margins and reduced net charge offs.”

The Board of Directors declared a $0.03 per share quarterly cash dividend payable on

September 15, 2010 to stockholders of record September 1, 2010.

Shares of common stock of Town and Country Financial Corporation are quoted on the OTC

Bulletin Board under the symbol TWCF. As of July 2010, the following market makers are

registered to quote stock issued by Town and Country Financial Corporation on the OTCBB:

Howe Barnes Investments, Inc., 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 offices in Springfield, Mt. Zion, Forsyth, and Decatur, Town & Country Banc Mortgage

Services, Inc., and Logan County Bank with offices in Lincoln and Buffalo.

Statement

Of

Condition

SECOND

QUARTER2010

Dear Shareholders,

It’s hard to believe the year is already half over and we’re writing our second quarter letter to you. And it’s been another quarter of continued improvements in your company, based on our 2010 goals to strengthen the balance sheet, im-prove core profitability, and grow.

Liquidity, capital, and asset quality all remain strong. The balance sheets of our two banks remain very liquid as loan demand has been relatively weak over the last year, although loans did post a modest increase over the last quarter of 3.7%. As of June 30, 2010, our equity capital increased to $30.3 million and our tier 1 leverage ratio stood at 10.5% while our total risk-based capital ratio was 14.1%. Both are well above the regulatory thresholds of 6% and 10%, re-spectively, for banks to be considered “well capitalized.” While the actual level of capital has increased, please note however, that the total risk-based capital ratio has declined slightly this year—from 14.9% to 14.1%—due to the risk-weightings assigned to certain trust preferred securities held in our investment portfolio. Finally, our asset quality metrics have shown significant improvement over prior-year and year-end levels. First half 2010 net loan charge-offs were 0.06% of total average loans, compared to 0.59% for the same period in 2009. Our allowance for loan losses was 1.25% of total loans compared to 1.22% at December 31, 2010. On June 30, 2010, total loans on nonaccrual and loans past due 30 days or more stood at 1.29% compared to 2.30% at year-end 2009. Our goal for 2010 was to maintain this ratio at 1.50% or less.

Our core profitability has also demonstrated continued improvement. Net in-come for the second quarter of 2010 was $366 thousand, which is up 53% from the second quarter of 2009. Impacting second quarter income was an after-tax loss of $11 thousand representing net security gains on sale and the write-down of trust preferred securities, and a $154 thousand after-tax valuation charge for mortgage servicing rights. Last year, we experienced relatively large levels of fee income attributable to the mortgage refinance market, which was unfortunately offset by elevated credit losses. For this year, our credit costs are down signifi-cantly, as is mortgage fee income.

For the first half of 2010, net income was $682 thousand or 17% higher than the first half of 2009. Our net interest margin improved further to 3.55% for 2010 compared to 3.37% for the first half of 2009. It will become more difficult to accomplish further improvements in the margin as the prolonged low rate environment eliminates further reductions in funding costs while also providing very few attractive investment options. Provision for loan losses were $300 thousand for the first half of 2010 compared to nearly $1.2 million last year based on improved loan portfolio metrics. As stated earlier, our fee income was down substantially due to lower mortgage refinance volumes. Our expenses were also lower than 2009, by 8%, as a result of lower mortgage-related costs and the absence of the 2009 FDIC special assessment.

While our total balance sheet remained relatively flat, our customer relationship balances continue to increase. Total loans increased 1.5% for the year and 3.7% for the quarter. Serviced loans are up 2% from year-end, and trust and invest-ment assets are up 36%. Our primary focus continues to be deepening relation-ships with current customers while also attracting new ones to Town & Country.

The Board of Directors declared a $0.03 per share quarterly cash dividend. The dividend is payable on September 15, 2010 to stockholders of record as of September 1, 2010.

We hope the rest of your 2010 is both enjoyable and prosperous!

Respectfully submitted,

Micah R. Bartlett David E. KirschnerPresident and COO Chairman and CEO

OUR WAYforward

Selected Financial Comparison:

Six Month Period Ended June 30 (unaudited)

2010 2009

Net income before nonrecurring items per share $ 0.27 $ 0.21 Net income from nonrecurring items per share $ (0.03) $ 0.00 Basic earnings per share $ 0.24 $ 0.21 Net charge offs to average loans 0.06% 0.59% Basic surplus (liquidity) 17.20% 16.70% Net revenue $ 7.8MM $ 8.9MM Net interest margin 3.55% 3.37% Return on equity 4.61% 4.18% Return on assets 0.37% 0.32%

As of As of June 30 Dec. 31(unaudited) 2010 2009

Tier 1 leverage ratio 10.5% 10.1% Total risk-based capital ratio 14.1% 14.9% Nonperforming loans 1.10% 1.25% Delinquent loans, excluding nonaccrual 0.17% 1.17% Allowance for loan loss 1.25% 1.22% Mortgage loans sold with servicing retained $ 330MM $ 323MM Trust assets under management $ 52MM $ 38MM

MM = Million

as of June 30 (unaudited)

2010 2009

Assets Cash and due from banks $ 20,343,537 $ 19,518,334

Investments 107,428,532 101,787,845

Loans, net 223,702,192 230,516,428

Other assets 19,666,511 19,801,455

Total assets $ 371,140,772 $ 371,624,062

Liabilities & Equity

Deposits $ 302,392,461 $ 304,685,709

Borrowed money 26,043,588 24,428,190

Other liabilities 922,682 1,870,549

Total liabilities $ 329,358,731 $ 330,984,448

Trust preferred securities 11,500,000 11,500,000

Equity capital 30,282,041 29,139,614

Total liabilities & equity $ 371,140,772 $ 371,624,062

Six Month Period Ended June 30 (unaudited)

2010 2009

Interest income $ 8,393,655 $ 9,305,876

Interest expense (2,562,645) (3,628,940)

Net interest income $ 5,831,010 $ 5,676,936

Provision for loan losses (300,416) (1,182,370)

Noninterest income 2,002,702 3,282,146

Gain on sale of securities 74,824 123,253

Writedown due to impairment of securities (204,600) (109,707)

Noninterest expense (6,577,088) (7,153,814)

Income before income taxes $ 826,432 $ 636,444

Income taxes (144,300) (53,400)

Net Income $ 682,132 $ 583,044

Town and Country Financial CorporationStatement of Condition

CORPORATE INFORMATION

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.

MARKET MAKERS

Shares of common stock of Town and Country Financial Corporation are quoted on the OTC Bulletin Board under the symbol TWCF. If you have interest in purchasing shares, you may contact the following Market Makers:

Howe Barnes Investments Inc. 800.621.2364McAdams Wright Ragen, Inc. 503.922.4888Monroe Securities, Inc. 800.766.5560Pershing LLC 866.880.9410RBC Capital Markets Corp. 800.862.8029

For up-to-date information, please contact our Chief Financial Officer at the telephone number and address listed below.

TRANSFER AGENT

Town and Country Financial Corporation acts as its own Transfer Agent. Contact us by calling the number below with questions on registrations or stock transfer instructions. Mail requests to our Corporate Office at the following address:

Town and Country Financial Corporation3601 Wabash AvenueSpringfield, IL 62711

www.townandcountrybank.com866.770.3100