NasdaqCM:TCFC

Stock Analysis Report

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.

Rewards

PE ratio (12.5x) is below the US market (18.9x)

Earnings are forecast to grow 6.8% per year

Earnings grew by 115.8% over the past year

Pays a high and reliable dividend of 1.48%

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


Similar Companies

Bank of Utica

OTCPK:BKUT

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

TCFC

-2.9%

US Banks

-1.3%

US Market


1 Year Return

12.9%

TCFC

11.7%

US Banks

22.0%

US Market

Return vs Industry: TCFC exceeded the US Banks industry which returned 11.8% over the past year.

Return vs Market: TCFC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TCFCIndustryMarket
7 Day-0.7%-2.9%-1.3%
30 Day-7.0%-5.1%1.6%
90 Day2.3%2.5%8.9%
1 Year14.6%12.9%15.0%11.7%24.7%22.0%
3 Year18.0%13.4%26.8%17.8%49.4%39.7%
5 Year91.0%77.2%86.1%65.3%78.1%58.5%

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?

12.48x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: TCFC ($33.74) is trading above our estimate of fair value ($25.52)

Significantly Below Fair Value: TCFC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: TCFC is good value based on its PE Ratio (12.5x) compared to the Banks industry average (12.8x).

PE vs Market: TCFC is good value based on its PE Ratio (12.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: TCFC is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: TCFC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TCFC's forecast earnings growth (6.8% per year) is above the savings rate (1.7%).

Earnings vs Market: TCFC's earnings (6.8% per year) are forecast to grow slower than the US market (14.3% per year).

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

Revenue vs Market: TCFC's revenue (6.3% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: TCFC's revenue (6.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TCFC's Return on Equity is forecast to be low in 3 years time (8.9%).


Next Steps

Past Performance

How has Community Financial performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCFC has high quality earnings.

Growing Profit Margin: TCFC's current net profit margins (27.1%) are higher than last year (13.4%).


Past Earnings Growth Analysis

Earnings Trend: TCFC's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: TCFC's earnings growth over the past year (115.8%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: TCFC earnings growth over the past year (115.8%) exceeded the Banks industry 27.1%.


Return on Equity

High ROE: TCFC's Return on Equity (9%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: TCFC has a low level of unsold assets or inventory.

Debt Coverage by Assets: TCFC's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: TCFC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: TCFC has a low allowance for bad loans.

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

Loan Level: TCFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: TCFC's loans are broadly funded by customer deposits.

Level of Bad Loans: TCFC has an appropriate level of bad loans (0.82%)


Next Steps

Dividend

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

1.48%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.6%

Current dividend yield vs market & industry

Notable Dividend: TCFC's dividend (1.48%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: TCFC's dividend (1.48%) is low compared to the top 25% of dividend payers in the US market (3.66%).


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 (18.5%), TCFC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: TCFC's dividends in 3 years are forecast to be well covered by earnings (17.8% payout ratio).


Next Steps

Management

What is the CEO of Community Financial's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Bill Pasenelli (60yo)

5.5yrs

Tenure

US$910,467

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 ($USD910.47K) is about average for companies of similar size in the US market ($USD1.08M).

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


Management Age and Tenure

4.8yrs

Average Tenure

51.5yo

Average Age

Experienced Management: TCFC's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

63yo

Average Age

Experienced Board: TCFC's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$49,99203 Jan 20
William Pasenelli
EntityIndividual
Role
Chief Executive Officer
Vice Chairman
Shares1,411
Max PriceUS$35.43
BuyUS$49,99203 Jan 20
Kathryn Zabriskie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,411
Max PriceUS$35.43
BuyUS$49,99203 Jan 20
Todd Capitani
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares1,411
Max PriceUS$35.43
BuyUS$149,97503 Jan 20
Joseph Stone
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,233
Max PriceUS$35.43
BuyUS$74,97003 Jan 20
Edward Sanders
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,116
Max PriceUS$35.43
BuyUS$49,99203 Jan 20
Mary Peterson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,411
Max PriceUS$35.43
BuyUS$99,98303 Jan 20
Austin Slater
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares2,822
Max PriceUS$35.43
SellUS$20,27430 Aug 19
Christy Lombardi
EntityIndividual
Role
Chief Operating Officer
Executive VP
Shares650
Max PriceUS$31.25
SellUS$124,20030 May 19
James Di Misa
EntityIndividual
Shares4,000
Max PriceUS$31.05
BuyUS$3,03001 May 19
John Parlett
EntityIndividual
Shares100
Max PriceUS$30.39
SellUS$150,55028 Feb 19
Michael Middleton
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,000
Max PriceUS$30.11
SellUS$153,84121 Feb 19
Michael Middleton
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,100
Max PriceUS$30.21
SellUS$114,20819 Feb 19
Michael Middleton
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,800
Max PriceUS$30.15
SellUS$33,00014 Feb 19
Michael Middleton
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,100
Max PriceUS$30.00

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.5%.


Management Team

  • Jim Burke (51yo)

    Executive VP & Chief Risk Officer

    • Tenure: 4yrs
    • Compensation: US$488.56k
  • Bill Pasenelli (60yo)

    Vice Chairman

    • Tenure: 5.5yrs
    • Compensation: US$910.47k
  • Todd Capitani (52yo)

    Executive VP & CFO

    • Tenure: 5.5yrs
    • Compensation: US$479.76k
  • Christy Lombardi (42yo)

    Executive VP

    • Tenure: 0.8yrs
  • Marlene Smith

    Executive Assistant


    Board Members

    • Mike Middleton (71yo)

      Chairman of the Board

      • Tenure: 5.6yrs
      • Compensation: US$52.32k
    • Joe Slater (65yo)

      Lead Independent Director

      • Tenure: 0.3yrs
      • Compensation: US$50.13k
    • Bill Pasenelli (60yo)

      Vice Chairman

      • Tenure: 5.5yrs
      • Compensation: US$910.47k
    • Louis Jenkins (47yo)

      Independent Director

      • Tenure: 20yrs
      • Compensation: US$49.73k
    • Joe Stone (64yo)

      Director

      • Tenure: 13.5yrs
      • Compensation: US$56.76k
    • Mary Peterson (64yo)

      Independent Director

      • Tenure: 9.4yrs
      • Compensation: US$47.90k
    • Larry Sanders (62yo)

      Independent Director

      • Tenure: 2yrs
      • Compensation: US$42.23k
    • Kate Zabriskie (47yo)

      Independent Director

      • Tenure: 2.9yrs
      • Compensation: US$44.73k
    • Mohammad Javaid (63yo)

      Independent Director

      • Tenure: 7yrs
      • Compensation: US$36.00k
    • Kim Briscoe-Tonic

      Director

      • Tenure: 0.3yrs
      • Compensation: US$18.00k

    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$198.739m
    • Shares outstanding: 5.90m
    • 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 also 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. In addition, it 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 February 28, 2019, The Community Financial Corporation operated through 12 banking centers in Waldorf, Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby, and California, Maryland, as well as Fredericksburg, Virginia; and 5 commercial lending centers. It also operates 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 Analysis2020/01/25 23:53
    End of Day Share Price2020/01/24 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.