Community Financial Corp. (CFFC, Financial) filed Quarterly Report for the period ended 2011-06-30.
Community Financial Corp. has a market cap of $16.9 million; its shares were traded at around $3.77 with a P/E ratio of 55.4 and P/S ratio of 0.5.
At June 30, 2011, non-performing assets totaled $19.0 million or 3.63% of assets compared to $16.6 million or 3.12% of assets at March 31, 2011. Our allowance for loan losses to non-performing loans was 38.8% and to total loans was 1.54% at June 30, 2011 compared to 47.4% and 1.61%, respectively at March 31, 2011. The increase in nonperforming assets consisted of a $3.6 million increase in nonaccrual loans, partially offset by a $1.2 million decrease in real estate owned and repossessed assets. Due primarily to the slow economy, we recognize the possibility of an increase in non-performing assets in the future. Charge-offs of $2.3 million during the most recent three month period consisted primarily of $1.5 million of residential real estate loans, $308,000 of construction loans, $386,000 of commercial real estate loans and $109,000 of automobile loans.
Deposits decreased $8.0 million, or 2.1% to $371.1 million at June 30, 2011, from $379.1 million at March 31, 2011. The decrease was primarily due to a decrease in time deposits of $12.0 million, partially offset by increases in non-interest bearing accounts of $2.8 million, money market and interest checking accounts of $884,000, and savings of $375,000. 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 deposit products. FHLB advances remained at $97.0 million for both periods and other borrowings increased $896,000 at June 30, 2011 from March 31, 2011.
At June 30, 2011, non-performing assets totaled $19.0 million or 3.63% of assets compared to $16.6 million or 3.12% of assets at March 31, 2011. Non-performing assets at June 30, 2011 were comprised of repossessed assets of $9.2 million and non accrual loans of $9.8 million. Included in the total non-performing assets at June 30, 2011, was one single family real estate owned property totaling $2.3 million. At June 30, 2011, our allowance for loan losses to non-performing loans was 38.8% and to total loans was 1.54% compared to 47.4% and 1.61%, respectively at March 31, 2011. Our allowance for loan losses decreased $473,000 at June 30, 2011 compared to March 31, 2011 due to allowances for specific loans and decreased loan balances. Charged off loans during the June 30, 2011 quarter included loans on which specific reserves had been established at March 31, 2011. Based on current market values of the properties securing our loans, management anticipates no significant losses in excess of the allowance for losses previously recorded. Although management believes that it uses the best information available to make such determinations, future adjustments to allowances may be necessary, and net income could be significantly affected, if circumstances differ substantially from the assumptions used in making the initial determinations. We also had $21.3 million of loans that were classified as Troubled Debt Restructurings (TDRs) at June 30, 2011, of which $574,000 were included in nonaccrual loans. These loans have had their original terms modified to facilitate payment by the borrower. The loans have been classified as TDRs primarily due to a change to interest only payments and the maturity of these modified loans is primarily less than one year.
General. Net income for the three months ended June 30, 2011 decreased $440,000 or 44.5% to $548,000 from $988,000 for the three months ended June 30, 2010. Net interest income increased $231,000, the provision for loan losses increased $587,000, non-interest income decreased $8,000 and non-interest expense increased $345,000 during the three months ended June 30, 2011 compared to the same period in 2010. Return on equity for the three months ended June 30, 2011 was 4.31% compared to 7.91% for the three month period ended June 30, 2010. Return on assets was .42% for quarter ended June 30, 2011 compared to .73% for the same period in the previous fiscal year.
Interest Expense. Total interest expense decreased $618,000 to $999,000 for the quarter ended June 30, 2011, from $1.6 million for the quarter ended June 30, 2010. Interest on deposits decreased $446,000 to $954,000 for the quarter ended June 30, 2011 from $1.4 million for the quarter ended June 30, 2010 due to a decrease in the average rate paid and lower average deposit balances. The average rate paid on deposits was 1.02% during the three months ended June 30, 2011 compared to 1.40% for the three months ended June 30, 2010. The decrease in the average rate paid on deposits was due primarily to market interest rate changes as well as a change in our deposit mix to more low cost transaction account deposits and less higher cost certificate accounts. Interest expense on borrowed money decreased $172,000 to $45,000 for the quarter ended June 30, 2011 compared to $217,000 for the quarter ended June 30, 2010. A decrease in the average rate paid on borrowings from 0.86% for the June 30, 2010 quarter to 0.19% for the June 30, 2011 quarter and a decrease in the average balance of borrowings from $100.5 million to $96.3 million accounted for the decrease. The average rate paid on all interest-bearing liabilities was 0.85% during the three months ended June 30, 2011 compared to 1.31% for the three months ended June 30, 2010.
Read the The complete Report
Community Financial Corp. has a market cap of $16.9 million; its shares were traded at around $3.77 with a P/E ratio of 55.4 and P/S ratio of 0.5.
Highlight of Business Operations:
The Bank s loan portfolio decreased $5.5 million from March 31, 2011 to June 30, 2011. This decrease was primarily in residential real estate loans and consumer loans, partially offset by increases to commercial business 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 and existing commercial real estate activity continues to be weak. At June 30, 2011, our assets totaled $523.4 million, including net loans receivable of $472.8 million, compared to total assets of $530.1 million, including net loans receivable of $478.3 million, at March 31, 2011. Commercial real estate loans were $181.5 million or 37.8%, residential real estate loans were $189.0 million or 39.4%, construction loans totaled $20.8 million or 4.3%, and commercial business loans were $50.8 million or 10.6% of our total loan portfolio at June 30, 2011 compared to commercial real estate loans of $181.8 million or 37.5%, residential real estate loans of $195.1 million or 40.1%, construction loans of $20.7 million or 4.3%, and commercial business loans of $49.1 million or 10.1% at March 31, 2011.At June 30, 2011, non-performing assets totaled $19.0 million or 3.63% of assets compared to $16.6 million or 3.12% of assets at March 31, 2011. Our allowance for loan losses to non-performing loans was 38.8% and to total loans was 1.54% at June 30, 2011 compared to 47.4% and 1.61%, respectively at March 31, 2011. The increase in nonperforming assets consisted of a $3.6 million increase in nonaccrual loans, partially offset by a $1.2 million decrease in real estate owned and repossessed assets. Due primarily to the slow economy, we recognize the possibility of an increase in non-performing assets in the future. Charge-offs of $2.3 million during the most recent three month period consisted primarily of $1.5 million of residential real estate loans, $308,000 of construction loans, $386,000 of commercial real estate loans and $109,000 of automobile loans.
Deposits decreased $8.0 million, or 2.1% to $371.1 million at June 30, 2011, from $379.1 million at March 31, 2011. The decrease was primarily due to a decrease in time deposits of $12.0 million, partially offset by increases in non-interest bearing accounts of $2.8 million, money market and interest checking accounts of $884,000, and savings of $375,000. 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 deposit products. FHLB advances remained at $97.0 million for both periods and other borrowings increased $896,000 at June 30, 2011 from March 31, 2011.
At June 30, 2011, non-performing assets totaled $19.0 million or 3.63% of assets compared to $16.6 million or 3.12% of assets at March 31, 2011. Non-performing assets at June 30, 2011 were comprised of repossessed assets of $9.2 million and non accrual loans of $9.8 million. Included in the total non-performing assets at June 30, 2011, was one single family real estate owned property totaling $2.3 million. At June 30, 2011, our allowance for loan losses to non-performing loans was 38.8% and to total loans was 1.54% compared to 47.4% and 1.61%, respectively at March 31, 2011. Our allowance for loan losses decreased $473,000 at June 30, 2011 compared to March 31, 2011 due to allowances for specific loans and decreased loan balances. Charged off loans during the June 30, 2011 quarter included loans on which specific reserves had been established at March 31, 2011. Based on current market values of the properties securing our loans, management anticipates no significant losses in excess of the allowance for losses previously recorded. Although management believes that it uses the best information available to make such determinations, future adjustments to allowances may be necessary, and net income could be significantly affected, if circumstances differ substantially from the assumptions used in making the initial determinations. We also had $21.3 million of loans that were classified as Troubled Debt Restructurings (TDRs) at June 30, 2011, of which $574,000 were included in nonaccrual loans. These loans have had their original terms modified to facilitate payment by the borrower. The loans have been classified as TDRs primarily due to a change to interest only payments and the maturity of these modified loans is primarily less than one year.
General. Net income for the three months ended June 30, 2011 decreased $440,000 or 44.5% to $548,000 from $988,000 for the three months ended June 30, 2010. Net interest income increased $231,000, the provision for loan losses increased $587,000, non-interest income decreased $8,000 and non-interest expense increased $345,000 during the three months ended June 30, 2011 compared to the same period in 2010. Return on equity for the three months ended June 30, 2011 was 4.31% compared to 7.91% for the three month period ended June 30, 2010. Return on assets was .42% for quarter ended June 30, 2011 compared to .73% for the same period in the previous fiscal year.
Interest Expense. Total interest expense decreased $618,000 to $999,000 for the quarter ended June 30, 2011, from $1.6 million for the quarter ended June 30, 2010. Interest on deposits decreased $446,000 to $954,000 for the quarter ended June 30, 2011 from $1.4 million for the quarter ended June 30, 2010 due to a decrease in the average rate paid and lower average deposit balances. The average rate paid on deposits was 1.02% during the three months ended June 30, 2011 compared to 1.40% for the three months ended June 30, 2010. The decrease in the average rate paid on deposits was due primarily to market interest rate changes as well as a change in our deposit mix to more low cost transaction account deposits and less higher cost certificate accounts. Interest expense on borrowed money decreased $172,000 to $45,000 for the quarter ended June 30, 2011 compared to $217,000 for the quarter ended June 30, 2010. A decrease in the average rate paid on borrowings from 0.86% for the June 30, 2010 quarter to 0.19% for the June 30, 2011 quarter and a decrease in the average balance of borrowings from $100.5 million to $96.3 million accounted for the decrease. The average rate paid on all interest-bearing liabilities was 0.85% during the three months ended June 30, 2011 compared to 1.31% for the three months ended June 30, 2010.
Read the The complete Report
