NasdaqCM:TCFC

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

The Community Financial Corporation operates as the bank holding company for Community Bank of the Chesapeake that provides commercial and retail banking services to individuals and businesses.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Community Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TCFC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.1%

TCFC

14.5%

US Banks

4.3%

US Market


1 Year Return

-23.1%

TCFC

-10.9%

US Banks

10.3%

US Market

Return vs Industry: TCFC underperformed the US Banks industry which returned -15.5% over the past year.

Return vs Market: TCFC underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

TCFCIndustryMarket
7 Day1.1%14.5%4.3%
30 Day7.4%22.8%11.5%
90 Day-19.8%-0.7%7.4%
1 Year-21.7%-23.1%-7.8%-10.9%12.7%10.3%
3 Year-30.9%-33.8%0.1%-7.7%37.1%28.0%
5 Year28.4%19.0%26.3%11.2%64.7%46.2%

Price Volatility Vs. Market

How volatile is Community Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Community Financial undervalued compared to its fair value and its price relative to the market?

11.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TCFC ($23.96) is trading below our estimate of fair value ($27.1)

Significantly Below Fair Value: TCFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: TCFC is good value based on its PE Ratio (9.6x) compared to the Banks industry average (9.8x).

PE vs Market: TCFC is good value based on its PE Ratio (9.6x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: TCFC is poor value based on its PEG Ratio (6.1x)


Price to Book Ratio

PB vs Industry: TCFC is good value based on its PB Ratio (0.8x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Community Financial forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCFC's forecast earnings growth (1.6% per year) is below the savings rate (2.2%).

Earnings vs Market: TCFC's earnings (1.6% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: TCFC's earnings are forecast to grow, but not significantly.

Revenue vs Market: TCFC's revenue (8.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: TCFC's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if TCFC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Community Financial performed over the past 5 years?

20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCFC has high quality earnings.

Growing Profit Margin: TCFC's current net profit margins (25.3%) are lower than last year (25.9%).


Past Earnings Growth Analysis

Earnings Trend: TCFC's earnings have grown by 20% per year over the past 5 years.

Accelerating Growth: TCFC's earnings growth over the past year (1.8%) is below its 5-year average (20% per year).

Earnings vs Industry: TCFC earnings growth over the past year (1.8%) underperformed the Banks industry 2.8%.


Return on Equity

High ROE: TCFC's Return on Equity (7.6%) is considered low.


Next Steps

Financial Health

How is Community Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: TCFC's Assets to Equity ratio (9.9x) is low.

Allowance for Bad Loans: TCFC has a sufficient allowance for bad loans (117%).

Low Risk Liabilities: 92% of TCFC's liabilities are made up of primarily low risk sources of funding.

Loan Level: TCFC has an appropriate level of Loans to Assets ratio (81%).

Low Risk Deposits: TCFC's Loans to Deposits ratio (98%) is appropriate.

Level of Bad Loans: TCFC has an appropriate level of bad loans (0.9%).


Next Steps

Dividend

What is Community Financial's current dividend yield, its reliability and sustainability?

2.09%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TCFC's dividend (2.09%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: TCFC's dividend (2.09%) is low compared to the top 25% of dividend payers in the US market (4.32%).


Stability and Growth of Payments

Stable Dividend: TCFC's dividends per share have been stable in the past 10 years.

Growing Dividend: TCFC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.9%), TCFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.2yrs

Average management tenure


CEO

Bill Pasenelli (60yo)

5.92yrs

Tenure

US$1,006,194

Compensation

Mr. William J. Pasenelli, as known as Bill, has been the Chief Executive Officer of The Community Financial Corporation and its subsidiary Community Bank of the Chesapeake since June 2014. Mr. Pasenelli se ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD1.01M) is above average for companies of similar size in the US market ($USD577.87K).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Pasenelli
Vice Chairman5.92yrsUS$1.01m0.88% $1.2m
James Burke
Executive VP & Chief Risk Officer4.42yrsUS$525.19k0.36% $514.0k
Todd Capitani
Executive VP & CFO5.92yrsUS$479.76k0.20% $285.0k
Christy Lombardi
Executive VP1.25yrsno data0.18% $260.6k
Marlene Smith
Executive Assistantno datano datano data

5.2yrs

Average Tenure

51.5yo

Average Age

Experienced Management: TCFC's management team is seasoned and experienced (5.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Pasenelli
Vice Chairman5.92yrsUS$1.01m0.88% $1.2m
Michael Middleton
Chairman of the Board6yrsUS$62.14k3.86% $5.5m
Austin Slater
Lead Independent Director0.67yrUS$51.13k0.42% $592.2k
Louis Jenkins
Independent Director20.42yrsUS$50.00k0.34% $483.7k
Joseph Stone
Independent Director13.92yrsUS$65.32k0.57% $806.3k
Mary Peterson
Independent Director9.83yrsUS$55.03k0.14% $197.3k
Edward Sanders
Independent Director2.42yrsUS$48.28k0.46% $649.8k
Kathryn Zabriskie
Independent Director3.33yrsUS$45.60k0.072% $102.1k
Mohammad Javaid
Independent Director7.42yrsUS$43.14k0.067% $95.5k
Kimberly Briscoe-Tonic
Director0.75yrUS$22.13k0.0064% $9.1k

6.0yrs

Average Tenure

63yo

Average Age

Experienced Board: TCFC's board of directors are considered experienced (6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TCFC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Top Shareholders

Company Information

The Community Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Community Financial Corporation
  • Ticker: TCFC
  • Exchange: NasdaqCM
  • Founded: 1950
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$141.646m
  • Shares outstanding: 5.91m
  • Website: https://www.cbtc.com

Number of Employees


Location

  • The Community Financial Corporation
  • 3035 Leonardtown Road
  • Waldorf
  • Maryland
  • 20601
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCFCNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJan 2002

Biography

The Community Financial Corporation operates as the bank holding company for Community Bank of the Chesapeake that provides commercial and retail banking services to individuals and businesses. Its deposit products include savings, money market, demand deposit, IRA, SEP, and time deposit accounts. The company provides loan products, such as commercial real estate and other non-residential real estate, residential first mortgage, residential rental mortgage, construction and land development, home equity and second mortgage, commercial, consumer, and commercial equipment loans. It also offers safe deposit box, night depository, cash vault, automated clearinghouse transaction, wire transfer, automated teller machine (ATM), online and telephone banking, retail and business mobile banking, remote deposit capture, reciprocal deposit, merchant card, credit monitoring, investment, positive pay, payroll, account reconciliation, bill pay, credit card, and lockbox services. As of December 31, 2019, it operated 12 banking centers in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, and California, Maryland, as well as Fredericksburg, Virginia; four loan production offices in La Plata, Prince Frederick, and Leonardtown, Maryland, as well as Fredericksburg, Virginia; and 15 ATMs. The company was formerly known as Tri-County Financial Corporation and changed its name to The Community Financial Corporation in October 2013. The Community Financial Corporation was founded in 1950 and is headquartered in Waldorf, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:28
End of Day Share Price2020/06/05 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.