THIRD QUARTERSTATEMENT

OF CONDITION

CORPORATE INFORMATIONTown and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in Buffalo, Decatur, Forsyth, Lincoln, Mt. Zion and Springfield, Peoples Prosperity Bank in Quincy, and Town & Country Banc Mortgage Services, Inc.

STOCK TRADINGTown and Country Financial Corporation shares are traded under the symbol TWCF.

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 Corporation 3601 Wabash Avenue Springfield, IL 62711 www.townandcountrybank.com

STATEMENT OF CONDITIONAS OF SEPTEMBER (UNAUDITED) 2014 2013

ASSETSCash and due from banks $ 6,310,830 $ 12,752,577 Investments 115,162,806 124,651,868 Loans, net 354,314,190 325,217,786 Other assets 30,459,433 29,168,429 Total assets $ 506,247,259 $ 491,790,660

LIABILITIES & EQUITYDeposits $ 401,862,041 $ 387,897,429 Borrowed money 43,300,000 45,575,000 Other liabilities 3,156,422 2,743,938 Total liabilities 448,318,463 436,216,367 Trust preferred securities 11,500,000 11,500,000 SBLF preferred capital 5,000,000 5,000,000 Equity capital 41,428,796 39,074,293 Total liabilities & equity $ 506,247,259 $ 491,790,660

NINE MONTH PERIOD ENDED SEPTEMBER 30 (UNAUDITED)Interest income $ 12,803,854 $ 12,109,617 Interest expense (1,461,381) (1,614,174)Net interest income $ 11,342,473 $ 10,495,443 Provision for loan losses (140,000) (391,000)Noninterest income 4,610,152 5,720,102 Gain on sale of securities 73,778 509,215 Writedown due to impairment of securities - - Noninterest expense (13,141,310) (13,113,053)Income before income taxes $ 2,745,093 $ 3,220,707 Income taxes (852,490) (1,110,300)Net income 1,892,603 2,110,407 Preferred dividend (37,500) (37,500)Net income available to common stockholders $ 1,855,103 $ 2,072,907

SELECTED FINANCIAL COMPARISONBasic earnings per share $ 0.66 $ 0.74 Book value per common share $ 14.83 $ 13.99 Net charge offs to average loans less HFS 0.05% 0.08%Net revenue (in millions) $ 16.0 $ 16.7 Net interest margin 3.30% 3.20%Net income from mortgage banking activities $ 61.6 $ 438.3 Fees from mortgage banking activities $ 2,441.3 $ 3,435.8 Return on common equity 6.12% 7.09%Return on assets 0.51% 0.60%

AS OF AS OF SEPTEMBER 30 DECEMBER 31 (UNAUDITED) 2014 2013Tangible common leverage ratio 7.6% 7.2%Tier 1 leverage ratio 10.7% 10.6%Total risk-based capital ratio 14.1% 14.1%Nonperforming loans 0.26% 0.36%Delinquent loans, excluding nonperforming 0.12% 0.40%Allowance for loan loss 1.02% 1.04%Coverage ratio 396.9% 285.7%Mortgage loans sold with servicing retained (in millions) $ 403.4 $ 394.1 Trust assets under management (in millions) $ 122.0 $ 113.0

DEAR FELLOW SHAREHOLDERS,

Your Company has reported core net income of $716 thousand in the third quarter of 2014 compared with $714 thousand in the third quarter of 2013 and $572 thousand in the second quarter of 2014. Including income from the gain on sale of securities and the dividend paid on preferred stock, net income available to common shareholders was $703 thousand, or $0.25 per share, in this quarter, unchanged from the year-ago period and compared with $0.20 in the second quarter of 2014. More information about our financial results may be found online at www.townandcountrybank.com/about-us/press-room.

Our 2014 “calls to action” are to differentiate our service, diversify revenue sources, and deliver results. Last quarter, we shared how we have worked to differentiate our services. Today, we share information about diversified revenue sources, where we are, and our near–term goals. Through the first nine months of 2014, net interest income remains our largest component of revenue at just under 71%, followed by revenue from mortgage activities at 15%, account service charges near 5%, trust and investment at 3%, asset sales less than 1% and all other, especially other loan related fees, at 6%. Our goal is to grow revenue and achieve a mix such that our non-interest income sources exceed 40% of total net revenue. We believe that such a strategy improves shareholder value by increasing the strategic and franchise value of our lines of business while also improving earnings faster than would otherwise be possible.

The Board of Directors declared a $0.03 per share quarterly cash dividend payable December 15, 2014 to stockholders of record December 1, 2014.

We work hard to exceed your expectations, not only as shareholders but as customers as well. In order for us to improve and advance, we encourage you to share with us your feedback, both complimentary and constructive. We remain grateful for your support, confidence and investment. We wish you and yours the best this holiday season.

Sincerely,

Micah R. Bartlett David E. KirschnerPresident & CEO Executive Chairman