Recent Insider Transactions • May 14
Independent Director recently bought US$74k worth of stock On the 10th of May, Michael Adams bought around 3k shares on-market at roughly US$25.85 per share. This transaction amounted to 53% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Price Target Changed • Apr 08
Price target decreased by 17% to US$37.00 Down from US$44.50, the current price target is provided by 1 analyst. New target price is 13% above last closing price of US$32.67. Stock is down 17% over the past year. The company posted earnings per share of US$5.01 last year. Upcoming Dividend • Apr 04
Upcoming dividend of US$0.17 per share at 2.1% yield Eligible shareholders must have bought the stock before 11 April 2023. Payment date: 24 April 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 2.1%. Lower than top quartile of American dividend payers (4.8%). Lower than average of industry peers (3.7%). Reported Earnings • Mar 08
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: US$5.01 (up from US$4.47 in FY 2021). Revenue: US$77.3m (up 4.9% from FY 2021). Net income: US$28.3m (up 9.4% from FY 2021). Profit margin: 37% (up from 35% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 7.6% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Reported Earnings • Feb 01
Full year 2022 earnings: EPS in line with analyst expectations despite revenue beat Full year 2022 results: EPS: US$5.01 (up from US$4.47 in FY 2021). Revenue: US$77.3m (up 4.9% from FY 2021). Net income: US$28.3m (up 9.4% from FY 2021). Profit margin: 37% (up from 35% in FY 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.6%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 27% per year but the company’s share price has only increased by 7% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jan 02
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 09 January 2023. Payment date: 24 January 2023. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of American dividend payers (4.5%). Lower than average of industry peers (3.2%). Price Target Changed • Dec 09
Price target increased to US$49.00 Up from US$44.50, the current price target is an average from 2 analysts. New target price is 23% above last closing price of US$39.80. Stock is up 6.8% over the past year. The company is forecast to post earnings per share of US$5.02 for next year compared to US$4.47 last year. Board Change • Nov 16
High number of new directors There are 5 new directors who have joined the board in the last 3 years. President, CEO, & Vice Chairman Jimmy Burke was the last director to join the board, commencing their role in 2021. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Reported Earnings • Oct 25
Third quarter 2022 earnings: Revenues exceed analyst expectations Third quarter 2022 results: Revenue: US$19.6m (up 8.8% from 3Q 2021). Net income: US$7.58m (up 18% from 3Q 2021). Profit margin: 39% (up from 36% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 7.2%. Upcoming Dividend • Oct 01
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 07 October 2022. Payment date: 21 October 2022. Payout ratio is a comfortable 15% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of American dividend payers (4.7%). Lower than average of industry peers (3.4%). Reported Earnings • Jul 27
Second quarter 2022 earnings released: EPS: US$1.21 (vs US$1.10 in 2Q 2021) Second quarter 2022 results: EPS: US$1.21 (up from US$1.10 in 2Q 2021). Revenue: US$18.5m (up 3.0% from 2Q 2021). Net income: US$6.83m (up 6.3% from 2Q 2021). Profit margin: 37% (up from 36% in 2Q 2021). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Jul 04
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 11 July 2022. Payment date: 26 July 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of American dividend payers (4.2%). Lower than average of industry peers (3.2%). Reported Earnings • Apr 29
First quarter 2022 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2022 results: EPS: US$1.11. Revenue: US$17.5m (down 5.8% from 1Q 2021). Net income: US$6.29m (flat on 1Q 2021). Profit margin: 36% (up from 34% in 1Q 2021). The increase in margin was driven by lower expenses. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) exceeded analyst estimates by 2.3%. Over the next year, revenue is forecast to grow 3.7%, compared to a 11% growth forecast for the industry in the US. Upcoming Dividend • Apr 04
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 11 April 2022. Payment date: 25 April 2022. Payout ratio is a comfortable 14% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of American dividend payers (3.7%). Lower than average of industry peers (2.6%). Reported Earnings • Mar 06
Full year 2021 earnings: Revenues exceed analyst expectations Full year 2021 results: Revenue: US$73.8m (up 26% from FY 2020). Net income: US$25.9m (up 60% from FY 2020). Profit margin: 35% (up from 28% in FY 2020). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.34% (down from 3.36% in FY 2020). Cost-to-income ratio: 52.7% (down from 54.8% in FY 2020). Non-performing loans: 0.50% (down from 1.16% in FY 2020). Revenue exceeded analyst estimates by 2.0%. Over the next year, revenue is forecast to grow 1.6%, compared to a 6.0% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 11% per year, which means it is significantly lagging earnings growth. Price Target Changed • Feb 02
Price target increased to US$45.50 Up from US$42.00, the current price target is an average from 2 analysts. New target price is 14% above last closing price of US$39.90. Stock is up 63% over the past year. The company is forecast to post earnings per share of US$4.22 for next year compared to US$4.47 last year. Reported Earnings • Jan 29
Full year 2021 earnings: EPS and revenues exceed analyst expectations Full year 2021 results: EPS: US$4.53 (up from US$2.74 in FY 2020). Revenue: US$73.8m (up 26% from FY 2020). Net income: US$25.9m (up 60% from FY 2020). Profit margin: 35% (up from 28% in FY 2020). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 1.6%. Over the next year, revenue is expected to shrink by 2.7% compared to a 4.1% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has increased by 22% per year but the company’s share price has only increased by 10% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Dec 31
Upcoming dividend of US$0.17 per share Eligible shareholders must have bought the stock before 07 January 2022. Payment date: 24 January 2022. Payout ratio is a comfortable 13% and this is well supported by cash flows. Trailing yield: 1.8%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (2.3%). Price Target Changed • Oct 29
Price target increased to US$44.50 Up from US$41.00, the current price target is an average from 2 analysts. New target price is 17% above last closing price of US$37.95. Stock is up 74% over the past year. The company is forecast to post earnings per share of US$4.35 for next year compared to US$2.74 last year. Reported Earnings • Oct 27
Third quarter 2021 earnings released: EPS US$1.11 (vs US$0.64 in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$18.0m (up 24% from 3Q 2020). Net income: US$6.40m (up 69% from 3Q 2020). Profit margin: 36% (up from 26% in 3Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has only increased by 8% per year, which means it is significantly lagging earnings growth. Recent Insider Transactions • Sep 07
Executive VP & CFO recently sold US$54k worth of stock On the 2nd of September, Todd Capitani sold around 2k shares on-market at roughly US$35.50 per share. This was the largest sale by an insider in the last 3 months. This was Todd's only on-market trade for the last 12 months. Recent Insider Transactions • Sep 04
Executive VP & CFO recently sold US$54k worth of stock On the 2nd of September, Todd Capitani sold around 2k shares on-market at roughly US$35.50 per share. This was the largest sale by an insider in the last 3 months. This was Todd's only on-market trade for the last 12 months. Reported Earnings • Jul 24
Second quarter 2021 earnings released: EPS US$1.10 (vs US$0.58 in 2Q 2020) The company reported a strong second quarter result with improved earnings, revenues and profit margins. Second quarter 2021 results: Revenue: US$18.0m (up 29% from 2Q 2020). Net income: US$6.43m (up 86% from 2Q 2020). Profit margin: 36% (up from 25% in 2Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has remained flat, which means it is significantly lagging earnings. Upcoming Dividend • Jul 03
Upcoming dividend of US$0.15 per share Eligible shareholders must have bought the stock before 09 July 2021. Payment date: 23 July 2021. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (2.3%). Reported Earnings • May 13
First quarter 2021 earnings released: EPS US$1.07 (vs US$0.47 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$18.6m (up 50% from 1Q 2020). Net income: US$6.30m (up 129% from 1Q 2020). Profit margin: 34% (up from 22% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Major Estimate Revision • May 01
Consensus EPS estimates increase to US$3.79 The consensus outlook for earnings per share (EPS) in 2021 has improved. 2021 revenue forecast increased from US$69.7m to US$71.8m. EPS estimate increased from US$3.29 to US$3.79 per share. Net income forecast to grow 5.8% next year vs 7.0% growth forecast for Banks industry in the US. Consensus price target of US$41.00 unchanged from last update. Share price rose 6.5% to US$36.12 over the past week. Reported Earnings • Apr 26
First quarter 2021 earnings released: EPS US$1.07 (vs US$0.47 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$18.6m (up 50% from 1Q 2020). Net income: US$6.30m (up 129% from 1Q 2020). Profit margin: 34% (up from 22% in 1Q 2020). The increase in margin was driven by higher revenue. Over the last 3 years on average, earnings per share has increased by 25% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Apr 02
Upcoming dividend of US$0.15 per share Eligible shareholders must have bought the stock before 09 April 2021. Payment date: 26 April 2021. Trailing yield: 1.7%. Lower than top quartile of American dividend payers (3.5%). Lower than average of industry peers (2.3%). Reported Earnings • Mar 06
Full year 2020 earnings released: EPS US$2.74 (vs US$2.75 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: US$58.6m (up 2.6% from FY 2019). Net income: US$16.1m (up 5.7% from FY 2019). Profit margin: 28% (in line with FY 2019). Net interest margin (NIM): 3.36% (up from 3.31% in FY 2019). Cost-to-income ratio: 54.8% (down from 61.1% in FY 2019). Non-performing loans: 0.75% (down from 0.88% in FY 2019). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Mar 06
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 17%, compared to a 18% growth forecast for the Banks industry in the US. Recent Insider Transactions • Mar 01
Independent Director recently bought US$150k worth of stock On the 25th of February, Mohammad Javaid bought around 5k shares on-market at roughly US$30.06 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$165k more in shares than they have sold in the last 12 months. Is New 90 Day High Low • Feb 12
New 90-day high: US$27.75 The company is up 8.0% from its price of US$25.58 on 13 November 2020. The American market is up 14% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Banks industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$50.51 per share. Major Estimate Revision • Feb 12
Analysts increase EPS estimates to US$3.15 The 2021 consensus revenue estimate increased from US$66.1m to US$68.8m. The earnings per share estimate also received an upgrade from US$2.29 to US$3.15 for the same period. Net income is expected to grow by 13% next year compared to 14% growth forecast for the Banks industry in the US. The consensus price target increased from US$28.50 to US$31.00. Share price is up 13% to US$27.75 over the past week. Reported Earnings • Feb 07
Full year 2020 earnings released: EPS US$2.74 (vs US$2.75 in FY 2019) The company reported a solid full year result with improved earnings and revenues, although profit margins were flat. Full year 2020 results: Revenue: US$58.6m (up 2.6% from FY 2019). Net income: US$16.1m (up 5.7% from FY 2019). Profit margin: 28% (in line with FY 2019). Net interest margin (NIM): 3.36% (up from 3.31% in FY 2019). Cost-to-income ratio: 54.8% (down from 61.1% in FY 2019). Non-performing loans: 0.75% (down from 0.88% in FY 2019). Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Feb 07
Revenue and earnings beat expectations Revenue exceeded analyst estimates by 3.2%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 13%, compared to a 17% growth forecast for the Banks industry in the US. Announcement • Dec 25
The Community Financial Corporation Announces Appointments to Its Board of Directors, Effective January 1, 2021 The Community Financial Corporation announced that on December 17, 2020 the Board of Directors appointed Michael B. Adams, James M. Burke, Gregory C. Cockerham and James F. Di Misa to the company's Board of Directors, effective January 1, 2021. Michael B. Adams is the President of JON Properties, LLC. Prior to starting JON Properties, Mr. Adams worked at WEB Equipment Inc. Mr. Adams served as President of WEB Equipment Inc. from 1995 - 2006. Mr. Adams serves, or has served, on numerous boards of community organizations. James M. Burke joined the Bank in 2005. He serves as Executive Vice President of the Company and as President of the Bank. Before his appointment as President of the Bank in 2016, he served as Executive Vice President and Chief Risk Officer. Before joining the Bank, Mr. Burke was Executive Vice President and Senior Loan Officer at Mercantile Southern Maryland Bank. Gregory C. Cockerham joined the Bank in 1988. Before Mr. Cockerham's retirement as an employee of the Bank on December 31, 2019, he served as Executive Vice President and Chief Lending Officer. Before joining the Bank, he was a Vice President at Maryland National Bank. James F. Di Misa joined the Bank in 2005. Before Mr. Di Misa's retirement as a Bank employee on March 31, 2019, he served as Executive Vice President and Chief Operating Officer. Before joining the Bank, Mr. Di Misa served as Executive Vice President of Mercantile Southern Maryland Bank. Price Target Changed • Dec 18
Price target raised to US$28.50 Up from US$24.00, the current price target is an average from 2 analysts. The new target price is 6.5% above the current share price of US$26.75. As of last close, the stock is down 26% over the past year. Valuation Update With 7 Day Price Move • Nov 11
Market bids up stock over the past week After last week's 19% share price gain to US$27.12, the stock is trading at a trailing P/E ratio of 11.2x, up from the previous P/E ratio of 9.4x. This compares to an average P/E of 11x in the Banks industry in the US. Total return to shareholders over the past three years is a loss of 21%. Is New 90 Day High Low • Nov 04
New 90-day high: US$23.50 The company is up 7.0% from its price of US$22.00 on 06 August 2020. The American market is up 2.0% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 4.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$45.53 per share. Reported Earnings • Nov 04
Third quarter 2020 earnings released: EPS US$0.64 The company reported a solid third quarter result with improved earnings and revenues, although profit margins were flat. Third quarter 2020 results: Revenue: US$14.5m (up 1.5% from 3Q 2019). Net income: US$3.80m (up 2.9% from 3Q 2019). Profit margin: 26% (in line with 3Q 2019). Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 04
Revenue behind estimates Revenue missed analyst estimates by 0.4%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 19%, compared to a 17% growth forecast for the Banks industry in the US. Announcement • Oct 15
The Community Financial Corporation announced that it has received $20 million in funding The Community Financial Corporation (NasdaqCM:TCFC) announced that it has entered into agreement with certain qualified institutional buyers and accredited investors for a private placement of 4.75% fixed-to-floating rate subordinated notes due 2030 for gross proceeds of $20,000,000 on October 14, 2020. The notes bear fixed annual rate of 4.75% and mature on October 15, 2030. The notes are issued at par, are subordinated, have a ten-year maturity term and, from and including the date of issuance to but excluding October 15, 2025, will bear interest at a fixed annual rate of 4.75%, payable semi-annually in arrears, and from and including October 15, 2025 to but excluding the maturity date or earlier redemption date, the interest rate shall reset quarterly to an interest rate per annum equal to the then-current three-month secured overnight financing rate (SOFR), plus 458 basis points, payable quarterly in arrears. In the event the three-month secured overnight financing rate (SOFR) is less than zero, the three-month secured overnight financing rate (SOFR) will be deemed to be zero. The notes are redeemable, in whole or in part, at the company’s option, on any scheduled interest payment date on or after October 15, 2025, and at any time upon the occurrence of certain events. The company has issued securities pursuant to exemption provided under Regulation D. Upcoming Dividend • Sep 28
Upcoming Dividend of US$0.13 Per Share Will be paid on the 20th of October to those who are registered shareholders by the 5th of October. The trailing yield of 2.4% is below the top quartile of American dividend payers (4.9%), and is lower than industry peers (3.9%).