SPRINGFIELD, Ill., April 23 /PRNewswire-FirstCall/ -- Town and Country Financial Corporation (OTC Bulletin Board: TWCF) reported first-quarter 2010 net income of $316 thousand, or $0.11 per share, compared with $343 thousand, or $0.12 per share in the first 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 $384 thousand, or $0.14 per share compared to $0.15 in the prior year.
The Company experienced continued improvement in its net interest margin, 3.47% compared to 3.43%. Yet, net revenue was $3.8 million, compared with $4.1million in 2009, both exclusive of security gains and impairments. Driving the year-over-year change were mortgage originations and related revenues, in line with first-quarter 2010 expectations, yet lower than volumes and revenue in the first quarter of 2009 when historically low rates prompted strong refinance activity. Partly offsetting the decline were improving results from the private client group and lower credit costs. The provision for loan losses totaled $110 thousand compared to $250 thousand in the year ago quarter based on improved asset quality and lower loan balances. At March 31, 2010, the company's non-performing loans were 1.24% of total loans, down from 1.65% on March 31, 2009 and 1.25% on December 31, 2009. Non-interest expense was $3.2 million, compared with $3.4 million in the prior year, due to lower mortgage refinance-related costs.
As of March 31, 2010, total assets were $365 million, total net loans were $216 million, and total deposits were $298 million. The serviced mortgage portfolio posted growth of $4 million during the quarter and now stands at $327 million. Equity capital was $29.8 million and the reported book value was $10.66 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 10.4% of average assets, and total regulatory capital of $44 million, or an estimated 15.5% of risk-weighted assets.David Kirschner, Chairman and Chief Executive Officer, commented on the quarter: "We are cautiously optimistic about 2010. While mortgage refinance revenue is off significantly from last year, our core profitability is improving. Risks of additional credit losses will remain a potential concern until economic trends improve further. Aggressive regulatory changes impacting even community banks presents increasing challenges to operations and profitability." The Board of Directors declared a $0.03 per share quarterly cash dividend payable on June 15, 2010 to stockholders of record June 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 April 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. SOURCE Town and Country Financial Corporation