Town and Country Financial : 2021 Audited Financials

Town and Country Financial Corporation

Independent Auditor's Report and Consolidated Financial Statements

December 31, 2021 and 2020

Town and Country Financial Corporation

December 31, 2021 and 2020

Contents

Independent Auditor's Report ............................................................................................. 1

Consolidated Financial Statements

Balance Sheets .................................................................................................................................... 3

Statements of Income .......................................................................................................................... 4

Statements of Comprehensive Income ................................................................................................ 5

Statements of Stockholders' Equity .................................................................................................... 6

Statements of Cash Flows ................................................................................................................... 7

Notes to Financial Statements ............................................................................................................. 8

Independent Auditor's Report

Board of Directors

Town and Country Financial Corporation Springfield, Illinois

Opinion

We have audited the consolidated financial statements of Town and Country Financial Corporation and its subsidiaries, which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Town and Country Financial Corporation and its subsidiaries as of December 31, 2021 and 2020, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of our report. We are required to be independent of Town and Country Financial Corporation and its subsidiaries and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Responsibilities of Management for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about Town and Country Financial Corporation and its subsidiaries' ability to continue as a going concern within one year after the date that these consolidated financial statements are available to be issued or within one year after the date that these consolidated financial statements are issued.

Board of Directors

Town and Country Financial Corporation Page 2

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS, we:

•  Exercise professional judgment and maintain professional skepticism throughout the audit.

•  Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

•  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Town and Country Financial Corporation and its subsidiaries' internal control. Accordingly, no such opinion is expressed.

•  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

•  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Town and Country Financial Corporation and its subsidiaries' ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Decatur, Illinois

March 11, 2022

Town and Country Financial Corporation

Consolidated Balance Sheets

December 31, 2021 and 2020

Total assets

Liabilities and Stockholders' Equity

Deposits

Non-interest bearing

Interest bearing, savings and money market

Time

Total deposits

Other borrowings

Junior subordinated debt owed to unconsolidated parties

Deferred income taxes

Other liabilities

Total liabilities

Stockholders' Equity

Preferred stock, no par value; $1,000 liquidation value; authorized 1,000,000 shares; issued and

outstanding 0 shares

Common stock, no par value; authorized 5,000,000 shares; issued 2,983,608 shares;

outstanding 2,842,789 and 2,844,483 shares at December 31, 2021 and 2020

Additional paid-in capital

Retained earnings

Accumulated other comprehensive income

Treasury stock, at cost

Common 140,819 and 139,125 shares at December 31, 2021 and 2020

Total stockholders' equity

Total liabilities and stockholders' equity

See Notes to Consolidated Financial Statements

Assets	2021	2020
Cash and due from banks	$ 8,347,742	$ 9,078,771
Interest-bearing demand deposits	61,558,098	68,158,019
Cash and cash equivalents	69,905,840	77,236,790
Interest-bearing time deposit in bank	249,000	494,000
Available-for-sale securities	151,703,226	117,415,852
Loans held for sale	2,840,208	11,659,187
Loans, net of allowance for loan losses of $10,183,297 and $10,115,197 at December 31, 2021
and 2020	621,637,393	630,386,906
Premises and equipment, net of accumulated depreciation of $15,779,943 and $14,667,710 at
December 31, 2021 and 2020	20,066,094	20,369,229
Federal Reserve and Federal Home Loan Bank stock	2,822,160	2,822,160
Foreclosed assets held for sale, net	544,764	487,779
Cash surrender value of life insurance	15,752,239	15,357,759
Mortgage servicing rights	7,550,906	5,942,270
Goodwill	6,317,994	6,317,994
Core deposit intangibles	306,071	568,417
Other	7,331,446	8,606,112
$ 907,027,341	$ 897,664,455
$ 392,483,038	$ 344,272,959
295,608,028	258,165,004
91,923,305	124,539,736
780,014,371	726,977,699
21,903,136	70,608,000
14,136,451	14,083,745
197,570	94,660
5,703,535	10,180,911
821,955,063	821,945,015
-	-
1,657,560	1,657,560
10,685,197	10,624,164
73,198,918	63,219,461
1,203,095	1,722,016
86,744,770	77,223,201
1,672,492	1,503,761
85,072,278	75,719,440
$ 907,027,341	$ 897,664,455
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