CORPOR ATE INFORMATION

Town and Country Financial Corporation is the parent holding company for Town and Country Bank with offices in Buffalo, Decatur, Forsyth, Lincoln, Mt. Zion, Quincy and Springfield 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 Corporation3601 Wabash AveSpringfield, IL 62711www.townandcountrybank.com

Statement of Condition

2013 THIRD QUARTER

STATEMENT OF CONDITIONAS OF SEPTEMBER 30 (UNAUDITED) 2013 2012

ASSETSCash and due from banks $ 12,752,577 $ 15,548,611 Investments 124,651,868 134,958,536 Loans, net 325,217,786 282,201,470 Other assets 29,168,429 23,953,845 Total assets $ 491,790,660 $ 456,662,462

LIABILITIES & EQUITYDeposits $ 387,897,429 $ 371,336,276 Borrowed money 45,575,000 30,500,000 Other liabilities 2,743,938 2,464,013 Total liabilities 436,216,367 404,300,289 Trust preferred securities 11,500,000 11,500,000 SBLF preferred capital 5,000,000 5,000,000 Equity capital 39,074,293 35,862,173 Total liabilities & equity $ 491,790,660 $ 456,662,462

NINE MONTH PERIOD ENDED SEPTEMBER 30 (UNAUDITED)Interest income $ 12,109,617 $ 12,061,594 Interest expense (1,614,174) (2,075,935)Net interest income $ 10,495,443 $ 9,985,659 Provision for loan losses (391,000) (515,000)Noninterest income 5,720,102 6,575,916 Gain on sale of securities 509,215 118,116 Writedown due to impairment of securities – – Noninterest expense (13,113,053) (12,817,441)Income before income taxes $ 3,220,707 $ 3,347,250 Income taxes (1,110,300) (1,155,300)Net income 2,110,407 2,191,950 Preferred dividend (37,500) (89,239)Net income available to common stockholders $ 2,072,907 $ 2,102,711

SELECTED FINANCIAL COMPARISONNINE MONTH PERIOD ENDED SEPTEMBER 30 (UNAUDITED)Basic earnings per share $ 0.74 $ 0.75 Book value per common share $ 13.99 $ 12.84 Net charge offs to average loans less HFS 0.08% 0.15%Net revenue (in millions) $ 16.7 $ 16.7 Net interest margin 3.20% 3.46%Net income from mortgage banking activities $ 438.3 $ 987.3 Fees from mortgage banking activities $ 3,435.8 $ 4,470.6 Return on common equity 7.09% 8.54%Return on assets 0.60% 0.71%

AS OF AS OF SEPTEMBER 30 DECEMBER 31 (UNAUDITED) 2013 2012Tangible common leverage ratio 7.3% 7.4%Tier 1 leverage ratio 10.5% 10.8%Total risk-based capital ratio 14.9% 16.0%Nonperforming loans 0.59% 0.84%Delinquent loans, excluding nonperforming 0.59% 0.30%Allowance for loan loss 1.05% 1.16%Coverage ratio 177.7% 137.7%Mortgage loans sold with servicing retained (in millions) $ 388.6 $ 383.2 Trust assets under management (in millions) $ 113.7 $ 91.5

Trick or Treat Street Southwind

Park

JWCC Health Fair

Involvement Day at UIS

System Conversion

2013, we have more to do. We intend to open a second branch office in Quincy to replace our current loan production office. And, document imaging is scheduled for implemen­tation in the first half of 2014, which effort will be accom­panied by process reviews intended to eliminate inefficient processes and reduce waste.

Other opportunities to improve efficiency ratios are also being considered, although we always balance cost cutting with the need to foster the health of the company and its future growth. But please be assured that we will continue to manage our spending and investing in the manner that you have come to expect and with the long­term success of the company in mind.

We are reasonably optimistic that our mortgage business will thrive, even in this tough regulatory environment, because of our past investment in strong systems, processes, and knowledgeable employees. We believe we are uniquely positioned to succeed in a purchase money market by link­ ing individuals and other community banks’ customers to affordable mortgage options.

Final ThoughtsWe hope you found this summary helpful and informative. We wish to extend our warmest appreciation to you for the confidence you exhibit in this banking team and for your investment in this company. Happy Holidays and we’ll see you in 2014.

DEAR FELLOW SHAREHOLDERS,We’re nearing the end of 2013 and busying ourselves with planning for 2014. We are assessing our successes to date and clarifying our initiatives going forward, all evaluated against our strategic plans and company values. We’re also comparing ourselves to the most and least successful organizations and find lessons that we can benefit from. In that effort, we read recently that this is a tough time to be a banker. The author cited regulation, the unusually long economic cycle, and historically low interest rates summing it up as the perfect storm! We agree that these are tough times. We’re not naive but we, unlike this author, are enthusiastic about the long­term future of our bank and our role in making money a source of empowerment for our customers. Before we get too far ahead of ourselves, we invite you to read on to learn about our third quarter results and what could lie beyond.

Financial ResultsThe core bank showed good strength with loans up 15% and trust assets up 40%, each result lending optimism to future revenue streams. Moreover, we worked to cut expenses by 10%, largely due to reductions in staff and volume­based costs. But despite these very positive outcomes, third quarter results were mixed and speak to the unequivocal challenges that the author referenced. While rising rates provided some welcome opportunities to reinvest cash at slightly higher yields, it also significantly dampened mortgage lending activities resulting in a 44% decline in our mortgage volumes, as compared to the year­ago quarter, and compressed margins at their sale.

Town and Country Financial Corporation (TWCF) reported third­quarter net income of $714 thousand com­pared to $825 thousand in the third quarter of 2012. Net income available to common shareholders was $0.25 per share compared to $0.29 per share in the year­ago period. Net interest income increased by 9% on loan growth of 15%, as compared to the year­ago quarter, while expenses declined by 10%. Noninterest income, however, was down 37% driven by a decrease in mortgage banking activities.

Year­to­date net income was $2.1 million, down 3.7% from the prior year due to a decline in income earned on mortgage banking activities. Factors mitigating this event included higher net interest income, security gains, and a lower loan loss provision expense. Net income available to common shareholders was $0.74 per share compared to $0.75 per share in the first nine months of 2012.

Net revenue for the year­to­date was $16.7 million, unchanged from the prior year. The importance of this

achievement should not go unnoticed or unappreciated. Not many banks are able to make such a statement. Here’s how we did it. Net interest income was up 5% from the first nine months of 2012 driven by higher loan balances and lower deposit costs. The net interest margin, however, declined to 3.20% compared to 3.46% in 2012. Security gains were $509 thousand compared to $118 thousand in 2012. Off­setting those increases, non­interest income was 13.0% below the year ago led by a 22% reduction in mortgage fees and a 16% decline in mortgage loans originated.

Year to date, the provision for loan loss was $391 thousand, down from $515 thousand in the prior year due primarily to net charge­offs that were 0.08% of average loans for 2013 compared with 0.15% in 2012. Non­interest expense was up 2.3% due to nine months of normal operating costs associated with our Quincy, Illinois offices that were acquired and staffed near the end of the second quarter of 2012.

Loans that were past due 30 days or more, including non­ accrual loans, totaled 1.19% of loans outstanding at September 30 compared with 1.15% at December 31, 2012. The allowance for loan loss was 178% of total non­performing loans and 1.05% of total loans compared with 138% and 1.16%, respectively, at the prior year­end.

At September 30, total assets were $492 million and total net loans were $325 million compared to $456 million and $272 million at year­end. Total deposits were $388 million and common equity capital was $39.1 million. The reported book value was $13.99 per common share compared to $13.18 per share on December 31, 2012. Tier 1 capital was $50 million, or 10.5% of average assets, while total regulatory capital was $56 million, or an estimated 14.9% of risk­weighted assets.

The Board of Directors declared a $0.03 per share quarterly cash dividend payable on December 13, 2013 to stockholders of record December 2, 2013.

Operating Achievements2013 has been an incredibly productive year as we simplified our company’s structure in the first quarter of 2013, offered advanced payment, deposit, and financial management electronic banking solutions in the second quarter, and capped the third quarter by improving the banker and customer core technology platform. There is no denying that these investments have added costs to our infrastructure at a time when we would rather be reducing costs. But, we are confident that we have chosen the right path and remain committed to it.

Looking AheadThriving, healthy organizations constantly invest in their future. Although we have made considerable technology investments in

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

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