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SCHEDULE 14A
(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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[ ] Definitive Proxy Statement
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[ ] 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
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COMMUNITY FINANCIAL CORP. ANNOUNCES
IMPROVED QUARTERLY EARNINGS
Olney, Illinois, April 19, 2000----Community Financial Corp.
Community Financial Corp. (NASDAQ: CFIC), the Olney,
Illinois-based bank holding company, today announced that net
income for the quarter ended March 31, 2000 increased by 57.0%
as compared to the same quarter of the prior year. Net income
for the quarter ended March 31, 2000 was $314,000, or $.15 per
basic and diluted share, as compared to net income of $200,000,
or $.10 per basic and diluted share for the quarter ended March
31, 1999.
Contributing to the increase in net income was a $158,000,
or 7.3%, increase in net interest income and a $245,000, or
52.7%, increase in noninterest income. These increases more
than offset a $116,000, or 5.1%, increase in total noninterest
expense. The increase in noninterest expense was primarily
attributable to nonrecurring expenses incurred in connection
with a proxy contest currently being waged by a dissident
stockholder. Compensation and benefits expenses were virtually
unchanged increasing $15,000, or 1.3% during the quarter as
compared to the same quarter in the prior year.
"While we realize that there is still much work to be
done, these improved results confirm that we are clearly on the
right track. We are pleased that the strategic initiatives we
have been implementing over the course of the last year have
begun to produce results," said Wayne H. Benson, the President
and Chief Executive Officer of Community Financial. "We are
particularly pleased to see improvement in our net interest
income and noninterest income, two areas we have devoted
considerable focus to in our Strategic Plan."
"The quarterly results also demonstrate the progress we
have made in our efforts to safely restructure our assets and
liabilities to reduce our leverage position and improve our net
interest margin," said Mr. Benson. During the first quarter of
2000, deposits increased by $5.0 million, or 2.2%, while
borrowings, which carry higher interest rates than deposits,
decreased by $11.9 million, or 28.4%. As a result, net interest
margin increased 26 basis points during the quarter as compared
to the same quarter in the prior year.
When used in this press release, the words or phrases "will
likely result", "are expected to", "will continue", "is
anticipated", "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, 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
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.
Community Financial Corp. is the bank holding company for
Community Bank & Trust, N.A., American Bank of Illinois, Saline
County State Bank, Egyptian State Bank, and MidAmerica Bank of
St. Clair County.
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COMMUNITY FINANCIAL CORP.
Summary of Financial Highlights
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands)
<TABLE>
<CAPTION>
March 31 December 31
2000 1999
(Unaudited) (Audited)
<S> <C> <C>
ASSETS:
Cash and cash equivalents $ 13,038 $ 15,655
Investment securities $ 61,187 $ 62,178
Mortgage backed securities $ 33,041 $ 34,679
Loans $177,802 $179,467
Goodwill & Core Deposit Intangible $ 4,474 $ 4,574
Other assets $ 13,034 $ 13,366
Total Assets $302,576 $309,919
LIABILITIES:
Deposits $230,167 $225,170
Borrowed money $ 36,261 $ 48,891
Other liabilities $ 1,973 $ 2,032
Total Liabilities $268,401 $276,093
Total Stockholders' Equity $ 34,175 $ 33,826
Total Liabilities and Stockholders' Equity $302,576 $309,919
</TABLE>
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands except per share data)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31
2000 1999
(Unaudited) (Unaudited)
<S> <C> <C>
Interest income $5,373 $5,219
Interest expense $3,040 $3,044
Net interest income $2,333 $2,175
Provision for loan losses $ 185 $ 78
Net interest income after provision for
loan losses $2,148 $2,097
Total noninterest income $ 710 $ 465
Total noninterest expense $2,397 $2,281
Income before federal income tax $ 461 $ 281
Federal income tax $ 147 $ 81
Net income $ 314 $ 200
Basic Earnings Per Share $ 0.15 $ 0.10
Diluted Earnings Per Share $ 0.15 $ 0.10
</TABLE>
CONTACT: Douglas W. Tompson Of Community Financial Corp.,
618-395-8676
