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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 1 of 13
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
NEW FILING
COMMUNITY FINANCIAL CORP.
(Name of Issuer)
COMMON STOCK
(Title of Class of Securities)
20364V-10-9
(CUSIP Number)
Mr. Joseph Stilwell
26 Broadway, 23rd Floor
New York, New York 10004
(212) 269-5800
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
December 29, 2000
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition that is the subject of this Schedule 13D, and is filing this
schedule because of ss.ss.240.13d-1(e), 240.13d-(f) or 240.13d-1(g), check the
following box. [ ]
The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 2 of 13
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1. Names of Reporting Persons. I.R.S. Identification Nos. of
above persons (entities only).
----------------------------------------------------------------------------
Stilwell Value Partners III, L.P.
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
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(a) [X]
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(b)
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3. SEC Use Only
................................................................
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4. Source of Funds (See Instructions) WC, OO
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5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Delaware
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Number of 7. Sole Voting Power: 0
Shares
------------------------------------------------------------
Beneficially 8. Shared Voting Power: 135,500
Owned by
------------------------------------------------------------
Each 9. Sole Dispositive Power: 0
Reporting
------------------------------------------------------------
Person With 10. Shared Dispositive Power: 135,500
----------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
135,500
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12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
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13. Percent of Class Represented by Amount in Row (11): 6.1%
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14. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 3 of 13
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----------------------------------------------------------------------------
1. Names of Reporting Persons. I.R.S. Identification Nos. of
above persons (entities only).
----------------------------------------------------------------------------
Stilwell Associates, L.P.
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2. Check the Appropriate Box if a Member of a Group (See
Instructions)
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(a) [X]
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(b)
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3. SEC Use Only
................................................................
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4. Source of Funds (See Instructions) WC, OO
----------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Delaware
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Number of 7. Sole Voting Power: 0
Shares
------------------------------------------------------------
Beneficially 8. Shared Voting Power: 135,500
Owned by
------------------------------------------------------------
Each 9. Sole Dispositive Power: 0
Reporting
------------------------------------------------------------
Person With 10. Shared Dispositive Power: 135,500
----------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
135,500
----------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
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13. Percent of Class Represented by Amount in Row (11): 6.1%
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14. Type of Reporting Person (See Instructions)
PN
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 4 of 13
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----------------------------------------------------------------------------
1. Names of Reporting Persons. I.R.S. Identification Nos. of
above persons (entities only).
----------------------------------------------------------------------------
Stilwell Value LLC
----------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See
Instructions)
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(a) [X]
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(b)
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3. SEC Use Only
................................................................
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4. Source of Funds (See Instructions) WC, OO
----------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
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6. Citizenship or Place of Organization:
Delaware
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Number of 7. Sole Voting Power: 0
Shares
------------------------------------------------------------
Beneficially 8. Shared Voting Power: 135,500
Owned by
------------------------------------------------------------
Each 9. Sole Dispositive Power: 0
Reporting
------------------------------------------------------------
Person With 10. Shared Dispositive Power: 135,500
----------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
135,500
----------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
----------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): 6.1%
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14. Type of Reporting Person (See Instructions)
OO
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 5 of 13
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----------------------------------------------------------------------------
1. Names of Reporting Persons. I.R.S. Identification Nos. of
above persons (entities only).
----------------------------------------------------------------------------
Joseph Stilwell
----------------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See
Instructions)
----------------------------------------------------------------------------
(a) [X]
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(b)
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3. SEC Use Only
................................................................
----------------------------------------------------------------------------
4. Source of Funds (See Instructions) PF, OO
----------------------------------------------------------------------------
5. Check if Disclosure of Legal Proceedings Is Required Pursuant
to Items 2(d) or 2(e) [ ]
----------------------------------------------------------------------------
6. Citizenship or Place of Organization:
United States
----------------------------------------------------------------------------
Number of 7. Sole Voting Power: 0
Shares
------------------------------------------------------------
Beneficially 8. Shared Voting Power: 135,500
Owned by
------------------------------------------------------------
Each 9. Sole Dispositive Power: 0
Reporting
------------------------------------------------------------
Person With 10. Shared Dispositive Power: 135,500
----------------------------------------------------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person:
135,500
----------------------------------------------------------------------------
12. Check if the Aggregate Amount in Row (11) Excludes Certain
Shares (See Instructions) [ ]
----------------------------------------------------------------------------
13. Percent of Class Represented by Amount in Row (11): 6.1%
----------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 6 of 13
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Item 1. Security and Issuer
This Schedule 13D is being filed jointly by Stilwell Value Partners
III, L.P., a Delaware limited partnership ("Stilwell Value Partners III"),
Stilwell Associates, L.P., a Delaware limited partnership ("Stilwell
Associates"), Stilwell Value LLC, a Delaware limited liability company
("Stilwell Value LLC") and the general partner of Stilwell Value Partners III,
and Joseph Stilwell, managing and sole member of Stilwell Value LLC, and general
partner of Stilwell Associates. All of the filers of this Schedule 13D are
collectively the "Group" or "Reporting Persons".
This Schedule 13D relates to the common stock ("Common Stock") of
Community Financial Corp. (the "Company" or the "Issuer"). The address of the
principal executive offices of the Company is 240 E. Chestnut Street, Olney,
Illinois 62450-2295. The joint filing agreement of the members of the Group is
attached as Exhibit 1.
Item 2. Identity and Background
(a)-(c) This statement is filed by Joseph Stilwell, with respect to the
shares of Common Stock beneficially owned by Mr. Stilwell, including: (i) shares
of Common Stock held in the name of Stilwell Value Partners III, in Mr.
Stilwell's capacity as the managing and sole member of Stilwell Value LLC which
is the general partner of Stilwell Value Partners III; and (ii) shares of Common
Stock held in the name of Stilwell Associates, in Mr. Stilwell's capacity as the
general partner of Stilwell Associates.
The business address of the Reporting Persons is 26 Broadway, 23rd
Floor, New York, New York 10004.
The principal employment of Mr. Stilwell is investment management.
Stilwell Value Partners III and Stilwell Associates are private investment
partnerships engaged in the purchase and sale of securities for their own
accounts. Stilwell Value LLC is in the business of serving as the general
partner of Stilwell Value Partners III.
(d) During the past five years, no member of the Group has been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).
(e) During the past five years, no member of the Group has been a party
to a civil proceeding of a judicial or administrative body of competent
jurisdiction and, as a result of such proceeding, was, or is subject to, a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, Federal or State securities laws or finding
any violation with respect to such laws.
(f) Mr. Stilwell is a citizen of the United States.
Item 3. Source and Amount of Funds or Other Consideration
The amount of funds expended to date by Stilwell Value Partners III to
acquire the 51,000 shares of Common Stock it holds in its name is $571,366. Such
funds were provided in part from
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 7 of 13
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Stilwell Value Partners III's available capital and, from time to time, in part
by margin account loans from subsidiaries of The Bear Stearns Companies, Inc.
("Bear Stearns"), extended in the ordinary course of business.
The amount of funds expended to date by Stilwell Associates to acquire
the 49,500 shares of Common Stock it holds in its name is $510,286.95. Such
funds were provided in part from Stilwell Associate's available capital and,
from time to time, in part by margin account loans from subsidiaries of Bear
Stearns extended in the ordinary course of business.
The amount of funds expended to date by Joseph Stilwell to acquire the
35,000 shares of Common Stock he holds in his name is $368,703.60. Such funds
were provided in part from Mr. Stilwell's personal funds and, from time to time,
in part by margin account loans from subsidiaries of Bear Stearns extended in
the ordinary course of business.
All purchases of Common Stock made by the Reporting Persons using funds
borrowed from Bear Stearns, if any, were made in margin transactions on Bear
Stearns' usual terms and conditions. All or part of the shares of Common Stock
owned by members of the Reporting Persons may from time to time be pledged with
one or more banking institutions or brokerage firms as collateral for loans made
by such entities to members of the Reporting Persons. Such loans generally bear
interest at a rate based upon the broker's call rate from time to time in
effect. Such indebtedness, if any, may be refinanced with other banks or
broker-dealers.
Item 4. Purpose of Transaction
The Group acquired shares of Common Stock of the Issuer for investment
purposes. The Group believes the value of the Issuer's assets exceeds its
current market price. The Group acquired shares of Common Stock of the Issuer
after the Issuer announced the signing of definitive agreements for the sale of
two of its four subsidiary banks and its continued pursuit of the sale of one or
more of its remaining subsidiary banks. The Group believes that the Issuer can
maximize shareholder value if it sells its remaining subsidiary banks or engages
in another transaction that realizes the underlying value of Issuer's assets.
If the Issuer does not sell its remaining subsidiary banks or take
other appropriate steps to maximize shareholder value within a reasonable period
of time, the Group expects to exercise its shareholder rights to influence the
policies of the Issuer in this regard. In this event, the Group may, without
limitation seek to: (a) meet with Issuer's management and the Board of
Directors; (b) demand the Issuer's shareholder list and communicate and discuss
its views with other shareholders, including discussions concerning the election
of directors to the Board; (c) seek representation on the Issuer's Board; (d)
demand the Issuer's Board of Director meeting minutes; (e) call a special
meeting of the shareholders; and/or (f) solicit proxies or written consents from
other shareholders of the Issuer with respect to Board representation and other
matters.
On May 1, 2000, certain members of the Group filed a Schedule 13D in
connection with the common stock of Security of Pennsylvania Financial Corp.
("SPN"). Thereafter, such members of the Group communicated with management of
SPN and scheduled a meeting with senior management in order to discuss
maximizing short and long-term value of SPN's assets. On June 2, 2000, prior to
the scheduled meeting, SPN and Northeast Pennsylvania Financial Corp. announced
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 8 of 13
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the signing of a definitive agreement under which Northeast Pennsylvania
Financial Corp. agreed to acquire SPN. The Group thereafter disposed of its
shares of SPN on the open market.
On July 7, 2000, certain members of the Group filed a Schedule 13D in
connection with the common stock of Cameron Financial Corporation ("Cameron").
Thereafter such members of the Group exercised their shareholder rights by,
among other things, requesting that Cameron management hire an investment
banker, demanding Cameron's list of shareholders, meeting with Cameron's
management, demanding that the Board invite the Group's representatives to join
the Board, writing to other Cameron shareholders to express their dismay with
management's inability to achieve shareholder value and publishing that letter
in the local press. On October 6, 2000, Cameron announced that it had entered
into an agreement to be acquired by Dickinson Financial Corp. and the Group
disposed of its shares of Cameron on the open market.
On November 17, 2000, certain members of the Group filed a Schedule 13D
in connection with the common stock of Oregon Trail Financial Corp. ("Oregon
Trail "). In their Schedule 13D, such members of the Group stated that their
purpose in acquiring the stock of Oregon Trail is to profit from the
appreciation in the market price of its stock through the assertion of
shareholder rights, including, but not limited to, seeking representation on its
Board of Directors, communicating with other shareholders, and making proposals
to management, including with regard to a possible sale of Oregon Trail. These
members of the Group also stated that they believe that Oregon Trail can better
evaluate all options to increase shareholder value by retaining an investment
banking firm to advise it. On December 15, 2000, these members of the Group
filed an amended Schedule 13D and reported that they have scheduled a meeting,
for late January 2001, with representatives of Oregon Trail's management and
Board of Directors to discuss Oregon Trail's business plans and goals for return
on equity.
Members of the Group may make further purchases of shares of Common
Stock. Members of the Group may dispose of any or all the shares of Common Stock
held by them, although they have no current intention to do so. Except as noted
in this Schedule 13D, no member of the Group has any plans or proposals which
relate to, or could result in, any of the matters referred to in paragraph (a)
through (j), inclusive, of Item (4) of Schedule 13D. Members of the Group may,
at any time and from time to time, review or reconsider their positions and
formulate plans or proposals with respect thereto.
Item 5. Interest in Securities of the Issuer
The percentages used in this Schedule 13D are calculated based upon the
number of outstanding shares of Common Stock, 2,211,529, reported as the number
of outstanding shares as of November 1, 2000, on a Form 10-Q dated November 11,
2000. All purchases and sales of Common Stock reported herein were made in open
market transactions on the Nasdaq National Market System.
(A) Stilwell Value Partners III
(a) Aggregate number of shares beneficially owned: 135,500
Percentage: 6.1%
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 9 of 13
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(b) 1. Sole power to vote or to direct vote: 0
2. Shared power to vote or to direct vote: 135,500
3. Sole power to dispose or to direct the disposition: 0
4. Shared power to dispose or to direct disposition: 135,500
(c) The chart below sets forth all purchases of Common Stock which Stilwell
Value Partners III has made in the last 60 days. Said purchases total 51,000
shares of Common Stock for a total purchase price of $571,366.
----------------------------------------------------------------------
Date Number of Shares Price Per Share ($) Total Cost ($)
----------------------------------------------------------------------
12/27/00 3,000 10.7188 32,156.40
----------------------------------------------------------------------
12/28/00 4,000 10.5625 42,250
----------------------------------------------------------------------
12/29/00 32,000 11.2878 361,209.60
----------------------------------------------------------------------
1/2/01 12,000 11.3125 135,750
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(d) Because he is the managing and sole member of Stilwell Value LLC, which
is the general partner of Stilwell Value Partners III, Mr. Stilwell has the
power to direct the affairs of Stilwell Value Partners III, including the voting
and disposition of shares of Common Stock held in the name of Stilwell Value
Partners III. Therefore, Mr. Stilwell is deemed to share voting and disposition
power with Stilwell Value Partners III with regard to those shares of Common
Stock.
(B) Stilwell Associates
(a) Aggregate number of shares beneficially owned: 135,500 Percentage: 6.1%
(b) 1. Sole power to vote or to direct vote: 0
2. Shared power to vote or to direct vote: 135,500
3. Sole power to dispose or to direct the disposition: 0
4. Shared power to dispose or to direct disposition: 135,500
(c) The chart below sets forth all purchases of Common Stock which Stilwell
Associates has made in the last 60 days. Said purchases total 49,500 shares of
Common Stock for a total purchase price of $510,286.95.
-----------------------------------------------------------------------
Date Number of Shares Price Per Share ($) Total Cost ($)
-----------------------------------------------------------------------
12/7/00 2,500 10.125 25,312.50
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12/12/00 2,500 10.1875 25,468.75
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12/14/00 5,000 10.1875 50,937.50
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12/15/00 5,000 10.1875 50,937.50
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12/18/00 2,500 10.1875 25,468.75
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12/19/00 6,500 10.2653 66,724.45
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12/20/00 5,000 10.1875 50,937.50
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 10 of 13
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12/21/00 15,000 10.4375 156,562.50
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12/26/00 2,500 10.5 26,250.00
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12/27/00 3,000 10.5625 31,687.50
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(d) Because he is the general partner of Stilwell Associates, Mr. Stilwell
has the power to direct the affairs of Stilwell Associates, including the voting
and disposition of shares of Common Stock held in the name of Stilwell
Associates. Therefore, Mr. Stilwell is deemed to share voting and disposition
power with Stilwell Associates with regard to those shares of Common Stock.
(C) Stilwell Value LLC
(a) Aggregate number of shares beneficially owned: 135,500
Percentage: 6.1%
(b) 1. Sole power to vote or to direct vote: 0
2. Shared power to vote or to direct vote: 135,500
3. Sole power to dispose or to direct the disposition: 0
4. Shared power to dispose or to direct disposition: 135,500
(c) Stilwell Value LLC has made no purchases of Common Stock.
(d) Because he is the managing and sole member of Stilwell Value LLC, Mr.
Stilwell has the power to direct the affairs of Stilwell Value LLC. Stilwell
Value LLC is the general partner of Stilwell Value Partners III. Therefore,
Stilwell Value LLC may be deemed to share with Mr. Stilwell voting and
disposition power with regard to the shares of Common Stock held by Stilwell
Value Partners III.
(D) Mr. Joseph Stilwell
(a) Aggregate number of shares beneficially owned: 135,500
Percentage: 6.1%
(b) 1. Sole power to vote or to direct vote: 0
2. Shared power to vote or to direct vote: 135,500
3. Sole power to dispose or to direct the disposition: 0
4. Shared power to dispose or to direct disposition: 135,500
(c) The chart below sets forth all purchases of Common Stock which Joseph
Stilwell has made in the last 60 days. Said purchases total 35,000 shares of
Common Stock for a total purchase price of $368,703.60.
-----------------------------------------------------------------------
Date Number of Shares Price Per Share ($) Total Cost ($)
-----------------------------------------------------------------------
12/19/00 10,000 10.2633 102,633
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12/20/00 2,500 10.1875 25,468.75
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12/21/00 12,500 10.4375 130,468.75
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 11 of 13
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12/27/00 3,000 10.5625 31,687.50
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12/28/00 1,000 10.7188 10,718.80
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12/29/00 6,000 11.2878 67,726.80
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Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
Securities of the Issuer.
Other than the Joint Filing Agreement filed as Exhibit 1 to this filing,
and as otherwise described below, there are no contracts, arrangements,
understandings or relationships among the persons named in Item 2 hereof and
between such persons and any person with respect to any securities of the
Company, including but not limited to transfer or voting of any of the
securities, finders' fees, joint ventures, loan or option arrangements, puts or
calls, guarantees of profits, divisions of profits or losses, or the giving or
withholding of proxies, except for sharing of profits. Stilwell Value LLC and
Mr. Joseph Stilwell, in their capacities as general partners as described in
this Schedule 13D, are entitled to an allocation of a portion of profits.
See Items 1 and 2 above regarding disclosure of the relationships between
members of the Group, which disclosure is incorporated herein by reference.
Item 7. Material to be Filed as Exhibits
Exhibit No. Description
-- -----------
1 Joint Filing Agreement.
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CUSIP No. 20364V-10-9 SCHEDULE 13D Page 12 of 13
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SIGNATURES
----------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: January 4, 2001
STILWELL VALUE PARTNERS III, L.P.
/s/ Joseph Stilwell
-------------------------------
By: STILWELL VALUE LLC
General Partner
/s/ Joseph Stilwell
-------------------------------
By: Joseph Stilwell
Managing and Sole Member
STILWELL ASSOCIATES, L.P.
/s/ Joseph Stilwell
-------------------------------
By: Joseph Stilwell
General Partner
STILWELL VALUE LLC
/s/ Joseph Stilwell
-------------------------------
By: Joseph Stilwell
Managing and Sole Member
JOSEPH STILWELL
/s/ Joseph Stilwell
-------------------------------
Joseph Stilwell
