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SCHEDULE 14A INFORMATION
(Rule 14a-101)
INFORMATION REQUIRED IN PROXY STATEMENT
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE SECURITIES
EXCHANGE ACT OF 1934 (AMENDMENT NO. )
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[ ] Preliminary Proxy Statement
[ ] Definitive Proxy Statement
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[X ] Soliciting Material Under Rule 14a-12
[ ] Confidential, for Use of the Commission Only (as permitted
by Rule 14a-6(e)(2))
COMMUNITY FINANCIAL CORP.
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(Name of Registrant as Specified in its Charter)
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(Name of Person(s) Filing Proxy Statement, if Other Than the
Registrant)
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transaction applies:
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NEWS RELEASE
CONTACT:
Wayne H. Benson
President and Chief Executive Officer
(618) 395-8676
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FOR IMMEDIATE RELEASE
COMMUNITY FINANCIAL CORP.
ADOPTS COMPREHENSIVE STRATEGIC PLAN;
GOAL TO MAXIMIZE SHAREHOLDER VALUE
Olney, Illinois - March 6, 2000... Community Financial
Corp. (Nasdaq.nms: CFIC), today announced that its Board of
Directors has adopted a comprehensive Strategic Plan that
addresses all major aspects of the Company's business and calls
for significant initiatives to enhance shareholder value.
"The Strategic Plan, which culminates five months of
intensive effort, contains initiatives in virtually all phases
of Community Financial's operations," said Wayne H. Benson,
President and Chief Executive Officer of the Company. "The
primary focus and goal of the Strategic Plan is to maximize
shareholder value. Implementation of the Plan is expected to
increase earnings while decreasing liquidity and interest rate
risks, through numerous initiatives in the areas of operating
efficiency, asset and liability mix and productivity. A stock
repurchase program of significant size is expected to be
undertaken in the future once initial benefits have been
realized from the Strategic Plan."
The Strategic Plan calls for the Company to take a variety
of actions to increase operating efficiency, including
consolidating the charters of its subsidiary banks, reducing or
limiting operating expenses, and using technology to enhance
efficiency. A significant feature of the Plan relates to
changes in the asset and liability mix. Specifically, the
Company will seek to increase construction, agricultural and
commercial real estate loans while decreasing its emphasis on
residential lending. The Strategic Plan also calls for the sale
of some of the Company's lower yielding investment securities
and deployment of the proceeds into higher yielding loans.
Various actions in the area of personnel management intended to
enhance productivity are also planned.
Successful implementation of the above actions will enable
Community Financial to undertake a significant stock repurchase
program in the future.
Mr. Benson further commented: "The Board of Directors
recognized that our focus must be on enhancing shareholder value
and that a comprehensive plan was mandated. Accordingly, we
began the ground work to develop this Strategic Plan in October
1999," said Mr. Benson. "Our Strategic Plan will allow us to
address our weaknesses and take advantage of our strengths, like
our community and customer service focus, and geographical
diversity, to name a few.
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Professional Bank Services, Inc., a firm with nationally
recognized expertise in the banking industry, assisted and
advised us in the development of this plan. We diligently
explored all our options and concluded that this Strategic Plan
represents our best opportunity to maximize long-term
shareholder value. Implementation of the Plan is now our first
priority."
Community Financial Corp. serves southern Illinois through
its five bank subsidiaries and reported consolidated assets of
approximately $309.9 million, consolidated loans of
approximately $179.5 million, and consolidated deposits of
approximately $225.2 million based on December 31, 1999
financial information.
When used in this press release, the words or phrases "will
likely result," "are expected to," "will continue," "is anticip-
ated," "estimate," "project" or similar expressions are intended
to identify "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such
statements are subject to certain risks and uncertainties
including changes in economic conditions in the Company's market
area, changes in policies by regulatory agencies, fluctuations
in interest rates, demand for loans in the Company's market
area, whether the Company is able to successfully implement the
Strategic Plan and competition that could cause actual results
to differ materially from historical earnings and those
presently anticipated or projected. The Company wishes to
caution readers not to place undue reliance on any such
forward-looking statements, which speak only as of the
date made. The Company wishes to advise readers that the
factors listed above could affect the Company's financial
performance and could cause the Company's actual results for
future periods to differ materially from any opinions or
statements expressed with respect to future periods in any
current statements.
The Company does not undertake, and specifically disclaims
any obligation, to publicly release the result of any revisions
which may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to
reflect the occurrence of anticipated or unanticipated events.
This information is furnished on behalf of Community
Financial Corp., its Board of Directors and Management.
Information regarding the participants in Community Financial's
proxy solicitation and their interests in such solicitation may
be obtained by reviewing Community's preliminary proxy materials
as filed with the Securities and Exchange Commission ("SEC").
Community Financial will shortly be sending definitive proxy
materials which stockholders should read as they contain
important information. Anyone may obtain a copy of Community
Financial's preliminary proxy materials and, when filed, its
definitive proxy material, free of charge at the SEC's web site
at http://www.sec.gov.
