Community Financial Corp. (CFFC, Financial) filed Quarterly Report for the period ended 2010-12-31.
Community Financial Corp. has a market cap of $14.22 million; its shares were traded at around $3.26 with a P/E ratio of 17.16 and P/S ratio of 0.44.
The Bank s loan portfolio decreased $22.5 million from March 31, 2010 to December 31, 2010. This decrease was primarily in construction loans, commercial business loans and consumer loans, partially offset by increases to residential first mortgage loans. We expect our future loan growth to be slow or moderate due to a slower economy and underwriting changes to limit funding of speculative construction loans. We have experienced reduced construction activity in our market areas while existing commercial real estate activity continues to be moderate. At December 31, 2010, our assets totaled $527.7 million, including net loans receivable of $479.6 million, compared to total assets of $547.2 million, including net loans receivable of $502.1 million, at March 31, 2010. Commercial real estate loans were $171.7 million or 34.5%, residential first mortgage loans were $147.2 million or 29.6%, construction loans totaled $43.0 million or 8.6%, commercial business loans were $48.5 million or 9.8%, and home equity loans and lines were $47.6 million or 9.6% of our total loan portfolio at December 31, 2010 compared to commercial real estate loans of $171.8 million or 32.7%, residential first mortgage loans of $145.0 million or 27.6%,
At December 31, 2010, non-performing assets totaled $26.7 million or 5.07% of assets compared to $17.7 million or 3.24% of assets at March 31, 2010. Our allowance for loan losses to non-performing loans was 50.9% and to total loans was 1.92% at December 31, 2010 compared to 55.3% and 1.6%, respectively at March 31, 2010. The increase in nonperforming assets consisted of $5.1 million of real estate owned and repossessed assets and a $3.9 million increase in nonaccrual loans. Due primarily to the slow economy, we recognize the possibility of an increase in non-performing assets in the future. Charge-offs of $5.7 million during the nine month period consisted primarily of $1.5 million of residential real estate loans, $1.5 million of commercial business loans, $636,000 of construction loans, $1.1 million of land loans, $765,000 of commercial real estate loans and $269,000 of automobile loans.
Deposits decreased $12.3 million, or 3.1% to $386.1 million at December 31, 2010, from $398.4 million at March 31, 2010. The decrease was primarily due to decreases in time deposits of $19.4 million and non-interest bearing accounts of $1.4 million, partially offset by increases in money market and interest checking accounts of $8.5 million. The decrease in deposits was related to the decrease in our assets and funding needs. The decrease in deposits was generally achieved by lowering the rates offered on our time deposits products. FHLB advances also decreased $9.0 million and other borrowings increased $1.3 million at December 31, 2010 from March 31, 2010 which was also related to the decrease in our assets and funding needs.
Interest Expense. Total interest expense decreased $497,000 to $1.4 million for the quarter ended December 31, 2010, from $1.9 million for the quarter ended December 31, 2009. Interest on deposits decreased $480,000 to $1.2 million for the quarter ended December 31, 2010 from $1.7 million for the quarter ended December 31, 2009 due to a decrease in the average rate paid and lower average deposit balances. The average rate paid on deposits was 1.22% during the three months ended December 31, 2010 compared to 1.54% for the three months ended December 31, 2009. The decrease in the average rate paid on deposits was due primarily to market interest rate changes. Interest expense on borrowed money decreased $17,000 to $207,000 for the quarter ended December 31, 2010 compared to $224,000 for the quarter ended December 31, 2009. A decrease in the average balance of borrowings from $103.2 million for the December 31, 2009 quarter to $99.0 million for the December 31, 2010 quarter and a decrease in the average rate paid on borrowings from 0.97% to 0.90% accounted for the decrease. The average rate paid on interest-bearing liabilities was 1.16% during the three months ended December 31, 2010 compared to 1.59% for the three months ended December 31, 2009.
Interest Expense. Total interest expense decreased $1.9 million, or 29.2%, to $4.5 million for the nine months ended December 31, 2010, from $6.4 million for the nine months ended December 31, 2009. Interest on deposits decreased to $3.9 million for the nine months ended December 31, 2010, from $5.6 million for the same period last year due to a decrease in both the average rate paid and average deposit balances. The rate paid on deposits decreased from 1.99% for the nine months ended December 31, 2009 to 1.33% for the same period in the current fiscal year. The decrease in the average rate paid on deposits was due primarily to market changes. Interest expense on borrowed money decreased to $638,000 for the nine months ended December 31, 2010 from $724,000 for the nine months ended December 31, 2009 due to a decrease in the average rate paid and in the average outstanding balances. The average balance on borrowings decreased from $103.2 million for the nine months ended December 31, 2009 to $99.0 million for the nine months ended December 31, 2010. The average rate paid on borrowings decreased from .93% for the nine months ended December 31, 2009 to .86% for the nine month period ended December 31, 2010.
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Community Financial Corp. has a market cap of $14.22 million; its shares were traded at around $3.26 with a P/E ratio of 17.16 and P/S ratio of 0.44.
Highlight of Business Operations:
Net income for the quarter ended December 31, 2010 decreased $804,000 to $27,000 compared to $831,000 for the quarter ended December 31, 2009. Net income for the quarter decreased due primarily to a provision for loan loss increase of $909,000. Net income for the nine months ended December 31, 2010 decreased $2.2 million to $490,000 compared to $2.7 million for the nine months ended December 31, 2009. Net income for the nine months decreased due primarily to a provision for loan loss increase of $4.4 million, or 191.0%, partially offset by an increase in net interest income. The increased provision for the periods was primarily related to higher charge-offs and management s analysis of the Bank s loan portfolio.The Bank s loan portfolio decreased $22.5 million from March 31, 2010 to December 31, 2010. This decrease was primarily in construction loans, commercial business loans and consumer loans, partially offset by increases to residential first mortgage loans. We expect our future loan growth to be slow or moderate due to a slower economy and underwriting changes to limit funding of speculative construction loans. We have experienced reduced construction activity in our market areas while existing commercial real estate activity continues to be moderate. At December 31, 2010, our assets totaled $527.7 million, including net loans receivable of $479.6 million, compared to total assets of $547.2 million, including net loans receivable of $502.1 million, at March 31, 2010. Commercial real estate loans were $171.7 million or 34.5%, residential first mortgage loans were $147.2 million or 29.6%, construction loans totaled $43.0 million or 8.6%, commercial business loans were $48.5 million or 9.8%, and home equity loans and lines were $47.6 million or 9.6% of our total loan portfolio at December 31, 2010 compared to commercial real estate loans of $171.8 million or 32.7%, residential first mortgage loans of $145.0 million or 27.6%,
At December 31, 2010, non-performing assets totaled $26.7 million or 5.07% of assets compared to $17.7 million or 3.24% of assets at March 31, 2010. Our allowance for loan losses to non-performing loans was 50.9% and to total loans was 1.92% at December 31, 2010 compared to 55.3% and 1.6%, respectively at March 31, 2010. The increase in nonperforming assets consisted of $5.1 million of real estate owned and repossessed assets and a $3.9 million increase in nonaccrual loans. Due primarily to the slow economy, we recognize the possibility of an increase in non-performing assets in the future. Charge-offs of $5.7 million during the nine month period consisted primarily of $1.5 million of residential real estate loans, $1.5 million of commercial business loans, $636,000 of construction loans, $1.1 million of land loans, $765,000 of commercial real estate loans and $269,000 of automobile loans.
Deposits decreased $12.3 million, or 3.1% to $386.1 million at December 31, 2010, from $398.4 million at March 31, 2010. The decrease was primarily due to decreases in time deposits of $19.4 million and non-interest bearing accounts of $1.4 million, partially offset by increases in money market and interest checking accounts of $8.5 million. The decrease in deposits was related to the decrease in our assets and funding needs. The decrease in deposits was generally achieved by lowering the rates offered on our time deposits products. FHLB advances also decreased $9.0 million and other borrowings increased $1.3 million at December 31, 2010 from March 31, 2010 which was also related to the decrease in our assets and funding needs.
Interest Expense. Total interest expense decreased $497,000 to $1.4 million for the quarter ended December 31, 2010, from $1.9 million for the quarter ended December 31, 2009. Interest on deposits decreased $480,000 to $1.2 million for the quarter ended December 31, 2010 from $1.7 million for the quarter ended December 31, 2009 due to a decrease in the average rate paid and lower average deposit balances. The average rate paid on deposits was 1.22% during the three months ended December 31, 2010 compared to 1.54% for the three months ended December 31, 2009. The decrease in the average rate paid on deposits was due primarily to market interest rate changes. Interest expense on borrowed money decreased $17,000 to $207,000 for the quarter ended December 31, 2010 compared to $224,000 for the quarter ended December 31, 2009. A decrease in the average balance of borrowings from $103.2 million for the December 31, 2009 quarter to $99.0 million for the December 31, 2010 quarter and a decrease in the average rate paid on borrowings from 0.97% to 0.90% accounted for the decrease. The average rate paid on interest-bearing liabilities was 1.16% during the three months ended December 31, 2010 compared to 1.59% for the three months ended December 31, 2009.
Interest Expense. Total interest expense decreased $1.9 million, or 29.2%, to $4.5 million for the nine months ended December 31, 2010, from $6.4 million for the nine months ended December 31, 2009. Interest on deposits decreased to $3.9 million for the nine months ended December 31, 2010, from $5.6 million for the same period last year due to a decrease in both the average rate paid and average deposit balances. The rate paid on deposits decreased from 1.99% for the nine months ended December 31, 2009 to 1.33% for the same period in the current fiscal year. The decrease in the average rate paid on deposits was due primarily to market changes. Interest expense on borrowed money decreased to $638,000 for the nine months ended December 31, 2010 from $724,000 for the nine months ended December 31, 2009 due to a decrease in the average rate paid and in the average outstanding balances. The average balance on borrowings decreased from $103.2 million for the nine months ended December 31, 2009 to $99.0 million for the nine months ended December 31, 2010. The average rate paid on borrowings decreased from .93% for the nine months ended December 31, 2009 to .86% for the nine month period ended December 31, 2010.
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