[TRI-COUNTY
FINANCIAL CORPORATION LETTERHEAD]
March 23,
2010
Dear
Shareholder:
I am
pleased to announce the payment of a $0.40 cash dividend from Tri-County
Financial Corporation payable on April 2, 2010 for our shareholders of record on
March 12, 2010. The dividend amount is the same as was paid for
2009. Our long-term capital management strategy is to pay dividends
while retaining adequate capital to reflect the current economic conditions and
to ensure future growth.
The
dividend paid in April 2010 was 59% of the income earned in the year ended
December 31, 2009, as compared with 32% of income earned in 2008 for the
dividend paid in 2009. The severe recession created an environment
that challenged raising capital as well as paying dividends. Your
company entered the recession with a very strong capital base and augmented that
base through participation in the U.S. Treasury’s Capital Purchase
Program.
Operating
results for the year ended December 31, 2009 provided sufficient retained
earnings that allowed the company to maintain its dividend at the previous
year’s level of $0.40 per share. As the economy moves from recession
to recovery, a strong capital base allows the Corporation and its banking
subsidiary to pursue opportunities while being mindful of the need for safe and
sound growth.
Under
separate cover, you should receive the annual report and proxy material for the
year ended December 31, 2009. Please review the material and vote
your shares either by returning your proxy card in the envelope provided, via
the Internet or by telephone using the instructions provided in the
materials. Should you have any questions on these matters, please do
not hesitate to contact Laura Hewitt, Shareholder Relations, at (888) 745-2265,
ext. 1035.
Thank you
for your continued support of Tri-County Financial Corporation. Over
the many years of service to Southern Maryland, we have grown to a position of
strength in our market while remaining a locally owned and independent banking
company.
Sincerely,
Michael
L. Middleton
President