Corpor ate InformatIon

town and Country financial Corporation is the parent holding company for town and 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 MAKERStown and Country financial Corporation shares are quoted on the otC Bulletin Board under the symbol tWCf. If you are interested in purchasing shares of town and Country financial Corporation, you may contact the market makers listed on www.otcmarkets.com

TRANSFER AGENTtown 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 Corporation3601 Wabash aveSpringfield, IL 62711www.townandcountrybank.com

Statement of Condition

2011 fIrSt Quarter

STATEMENT oF CoNdiTioNas of March 31 (Unaudited) 2011 2010

AssetsCash and due from banks $ 16,005,037 $ 15,210,968 Investments 110,037,449 112,769,310 Loans, net 218,591,104 215,694,869 Other assets 20,413,521 20,828,885 Total assets $ 365,047,111 $ 364,504,032

LiAbiLities & eqUityDeposits $ 311,074,259 $ 298,203,580 Borrowed money 8,648,849 24,126,691 Other liabilities 1,743,174 903,419 Total liabilities 321,466,282 323,233,690 Trust preferred securities 11,500,000 11,500,000 Equity capital 32,080,829 29,770,343 Total liabilities & equity $ 365,047,111 $ 364,504,032 three Month Period ended MArch 31 (Unaudited)Interest income $ 3,951,867 $ 4,152,616 Interest expense (872,979) (1,319,692)Net interest income $ 3,078,888 $ 2,832,924 Provision for loan losses – (110,416)Noninterest income 1,183,740 1,057,663 Gain on sale of securities 147,552 34,153 Writedown due to impairment of securities – (145,600)Noninterest expense (3,506,708) (3,313,481) Income before income taxes $ 903,472 $ 355,243 Income taxes 296,900 39,600 Net income $ 606,572 $ 315,643

SElECTEd FiNANCiAl CoMpARiSoNthree Month Period ended MArch 31 (Unaudited)Net income before nonrecurring items per share $ 0.19 $ 0.14 Net income from nonrecurring items per share $ 0.03 $ (0.03)Basic earnings per share $ 0.22 $ 0.11 Net charge offs to average loans -0.03% 0.02%Basic surplus (liquidity) 14.80% 14.80%Net revenue $ 4.4 MM $ 3.8 MMNet interest margin 3.72% 3.47%Return on equity 7.82% 4.31%Return on assets 0.67% 0.35% As of As of MArch 31 deceMber 31 (Unaudited) 2011 2010Tier 1 leverage ratio 11.2% 10.9%Total risk-based capital ratio 15.6% 15.1%Nonperforming loans 0.50% 0.40%Delinquent loans, excluding nonaccrual 0.50% 0.75%Allowance for loan loss 1.37% 1.32%Mortgage loans sold with servicing retained $ 346 MM $ 341 MMTrust assets under management $ 74 MM $ 68 MM

MM = Million

Dear Fellow Shareholders,2011 is rapidly unfolding and it is demonstrating its own unique characteristics, challenges, and opportunities. We wanted to take a moment and share your Company’s first quarter results, our views on the economy, and how our focus and clarity of purpose are moving us forward.

In our 2010 annual report, we talked about our focus on strengthening our special connection to the customer, our tie to the communities we do business in, our understanding of the “new normal,” and educating our bankers about these new needs and desires. the result is a Company that is customer-centric and growing because we work with customers to meet their needs.

through the first few months of 2011, we have been fine tuning that business model. We are anxiously awaiting publication of our new websites, designed to invite customers and prospects to explore their financial lives while getting to know us. of course, the sites will also allow customers to quickly and efficiently transact business if that is their preference. We are engaging customers during and after normal business hours and our employees have been fine tuning their banking and personal skills.

We can’t think of anything more important than ensuring excellent execution of our unique approach to banking. and yet, we also have critical financial management duties. We are pleased to report that balance sheet strength demonstrated through asset quality, liquidity, and capital

continued to show improvement. In the first quarter, asset quality improved further as the Company recorded net recoveries of 0.03% and the level of past due and nonperforming loans fell to 1.00% of total loans, down from 1.15% at December 31, 2010. the allowance for loan loss strengthened to 1.37% of total loans from 1.32% at year-end 2010. the Company’s liquidity position, which ensures our ability to fund loan growth and depositors’ cash outflow in the course of normal business, was stable due to our core deposit base and a largely unencumbered investment port-folio. the tier 1 capital ratio improved to 11.2% at march 31, 2011 while total risk-based capital improved to 15.6%. equity capital increased to $32 million and the book value per share was $11.49 compared to $11.13 at year-end 2010.

We are pleased to report first quarter net income of $607 thousand ($0.22 per share) that was 92% higher than the year ago quarter. Significant events in the current quarter included after tax income of $88 thousand ($0.03 per share) from the gain on sale of equity securities and a $148 thousand ($0.05 per share) increase in mortgage servicing rights based on an extension in the estimated lives of loans that we service. the quarter also included a charge of $123 thousand ($0.04 per share) on certain foreclosed real estate. the first quarter of 2010 included an after tax impairment charge of $89 thousand ($0.03 per share) on certain trust preferred securities and $21 thousand gain on the sale of equity securities.

the Company’s results reflected a sound net interest margin, 3.72% compared to 3.47% in the first quarter of 2010, the change primarily due to maturing and repricing term deposits and wholesale funding. net revenue was $4.4 million and up from $3.9 million due to the strong interest spread, the adjustment to mortgage servicing rights in 2011, and the absence of impairment charges recorded in 2010. non-interest expense was $3.5 million and $193 thousand higher than the year ago quarter primarily due to the expenses related to foreclosed real estate matters.

on balance sheet growth has remained a challenge and total assets were largely unchanged from the year-ago due to weak loan demand, our prudent lending standards, and investment portfolio cash flows. Yet we service more customer balances today than we did a year ago and even compared to December

31, 2010. mortgage loans serviced were $346 million, up 1.4%, and trust assets were $74 million, up 8.8% from their year-end levels. our outlook for the remainder of the year is cautiously optimistic despite economic data that suggests uncertain government spending, continued weakness in the housing market, and higher gas and food prices that are expected to result in slow GDp growth. We are confident that our focus and clarity of purpose are the spark plugs to our future growth and continued success.

the Board of Directors declared a $0.03 per share quarterly cash dividend. the dividend is payable on June 15, 2011 to stockholders of record June 1, 2011.

as always, we sincerely thank you for your continued confidence and investment in town and Country financial Corporation.

Sincerely,

micah r. Bartlett David e. KirschnerPresident and CEO Executive Chairman

Micah R. Bartlett (L) and David E. Kirschner