For Immediate Release October 29, 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 Third Quarter 2010 Net Income and Declares Quarterly Dividend Springfield, Illinois—Town and Country Financial Corporation (OTCBB: TWCF) reported third-

quarter 2010 net income of $673 thousand, or $0.24 per share, compared with $362 thousand,

or $0.13 per share in the third quarter of 2009. The quarter’s results reflected annualized

recurring revenue growth over the year-ago quarter of 14.2% primarily on the strength of

mortgage production volumes. Adjusted to exclude a write down due to the impairment of

investment securities, net income was $719 thousand, or $0.26 per share compared to $0.17 in

the prior year.

Net income through September 30, 2010, was $1.355 million, or $0.49 per share, compared

with net income of $945 thousand, or $0.34 per share, in 2009 due primarily to lower loan loss

provision expense. Also contributing to the improvement was net interest income that was $8.8

million through September 30 and 3.4% above the year-ago level, resulting in a net interest

margin of 3.56% compared to 3.41% in 2009. Non-interest income was lower in the current

year-to-date as higher mortgage production volumes are occurring in the second half of the year

compared to 2009 in which higher volumes were captured in the first half of the year. Non-

interest expense was $10.1 million compared with $10.5 million in the prior year, primarily due

to the absence of 2009’s special FDIC assessment and better overall expense control.

As of September 30, 2010, total assets were $364 million, total net loans were $225 million, and

total deposits were $297 million. Total net loans were up 2% from year-end levels while the

serviced mortgage portfolio posted growth of nearly 3%. Equity capital was $30.9 million and

the reported book value was $11.07 per share compared to $10.47 per share on December 31,

2009.

The company’s capital position remained strong with Tier 1 capital of $39 million, or 10.6% of

average assets, and total regulatory capital of $45 million, or an estimated 15.0% of risk-

weighted assets compared to 14.9% on December 31, 2009. All ratios are well above the

regulatory definition of a well-capitalized bank.

At quarter-end, the allowance for loan losses was 1.34% 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 1.13% in the current period, down from 1.25% on December 31, 2009.

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

pleased with the continued improvement in our core profitability, as well as our strong balance

sheet, capital, credit quality, and liquidity. Moreover, our organization is intensely focused on

finding and developing ways to serve our customers based on new social and economic

realities.”

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

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

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. Shares of common

stock of Town and Country Financial Corporation are quoted on the OTC Bulletin Board under

the symbol TWCF.