Community Financial Corp. (CFFC, Financial) filed Quarterly Report for the period ended 2009-06-30.
COMMUNITY FINANCIAL CORP. VA is a holding company which through its subsidiary is engaged in general banking business. Community Financial Corp. has a market cap of $17.5 million; its shares were traded at around $4 with a P/E ratio of 4.6 and P/S ratio of 0.9. Community Financial Corp. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated Community Financial Corp. the business predictability rank of 4-star.
EESA also increased FDIC deposit insurance on most accounts from $100,000 to $250,000. This increase is in place until the end of 2013 and is not covered by deposit insurance premiums paid by the banking industry. In addition, the FDIC has implemented two temporary programs to provide deposit insurance for the full amount of most non-interest bearing transaction accounts through the end of 2009 and to guarantee certain unsecured debt of financial institutions and their holding companies through June 2012. We expect to participate only in the program that provides unlimited deposit insurance coverage through December 31, 2009 for noninterest-bearing transaction accounts (typically business checking accounts) and certain funds swept into noninterest-bearing savings accounts. Under that program, we will pay a 10 basis points fee (annualized) on the balance of each covered account in excess of $250,000, while the extra deposit insurance is in place. At June 30, 2009, we had $3.9 million in such accounts in excess of $250,000.
The Company\'s total assets increased $18.7 million to $531.4 million at June 30, 2009 from $512.7 million at March 31, 2009 due to increases in loans receivable of $13.1 million, cash of $2.7 million, real estate owned of $1.2 million, Federal Home Loan Bank Stock of $900,000, and cash consisting of interest bearing deposits at other financial institutions of $600,000. The increase in loans was funded with increases in savings and interest bearing deposits of $5.2 million, non-interest bearings deposits of $4.0 million, increases in FHLB advances and borrowings of $13.6 million and decreases in time deposits of $3.6 million at June 30, 2009 from March 31, 2009. FHLB advances increased by $14.0 million and other borrowings decreased by $300,000. Stockholders equity increased $562,000 to 46.9 million at June 30, 2009, from $46.3 million at March 31, 2009, due to income for the three months ended June 30, 2009 of $720,000 million offset by cash dividend payments.
At June 30, 2009, non-performing assets totaled approximately $15.6 million or 2.95% of assets compared to $9.0 million or 1.75% of assets at March 31, 2009. Non-performing assets at June 30, 2009 were comprised of repossessed assets of $2.6 million and non accrual loans of $13.0 million. Included in the total non-performing assets at June 30, 2009 was one relationship of approximately $1.6 million which includes $1.4 million of residential lots. At June 30, 2009, our allowance for loan losses to non-performing assets was 38.7% and to total loans was 1.24% compared to 66.43% and 1.25%, respectively at March 31, 2009. At June 30, 2009 the percentage of delinquent loans to total loans was 4.26% compared to 3.43% at March 31, 2009. Our allowance for loan losses to total loans remained relatively unchanged at June 30, 2009 compared to March 31, 2009 because no significant additional specific allowances were considered warranted at June 30, 2009 on the Bank s nonperforming assets and due to the growth in our loan portfolio Based on current market values of the properties securing these 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.
General. Net income for the three months ended June 30, 2009 decreased $246,000 or 25.5% to $720,000 from $965,000 for the three months ended June 30, 2008. Net interest income increased $450,000, the provision for loan losses increased 129,000, non-interest income increased $104,000 and non-interest expense increased $689,000 during the three months ended June 30, 2009 compared to the same period in 2008. Return on equity for the three months ended June 30, 2009 was 6.14% compared to 9.86% for the three month period ended June 30, 2008. Return on assets was .55% for quarter ended June 30, 2009 compared to 0.80% for the same period in the previous fiscal year.
Interest Expense. Total interest expense decreased by $1.1 million to $2.4 million for the quarter ended June 30, 2009, from $3.5 million for the quarter ended June 30, 2008. Interest on deposits decreased by $682,000 to $2.2 million for the quarter ended June 30, 2009 from $2.9 million for the quarter ended June 30, 2008 due to a decrease in the average rate paid, partially offset by higher average deposit balances. Interest expense on borrowed money decreased by $349,000 to $247,000 for the quarter ended June 30, 2009 compared to $597,000 million for the quarter ended June 30, 2008. A decrease in the average rate paid on borrowings from 2.66% to 0.91% offset by an increase in the average balance of borrowings from $89.6 million for the June 30, 2008 quarter to $108.6 million for the June 30, 2009 quarter accounted for the decrease. The average rate paid on interest-bearing liabilities was 2.07% during the three months ended June 30, 2009 compared to 3.15% for the three months ended June 30, 2008.
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COMMUNITY FINANCIAL CORP. VA is a holding company which through its subsidiary is engaged in general banking business. Community Financial Corp. has a market cap of $17.5 million; its shares were traded at around $4 with a P/E ratio of 4.6 and P/S ratio of 0.9. Community Financial Corp. had an annual average earning growth of 12.7% over the past 10 years. GuruFocus rated Community Financial Corp. the business predictability rank of 4-star.
Highlight of Business Operations:
Growth in our loan portfolio so far this fiscal year has exceeded our expectations. Growth in the Bank\'s loan portfolio for the June 30, 2009 quarter was primarily in commercial real estate, residential home equity loans and lines, and commercial business loans, offset by a decrease in residential first mortgage loans. We expect to focus our future loan growth primarily in the commercial real estate arena and to slow or moderate our construction loan growth due to a slower economy and underwriting changes to limit funding of speculative construction. We have experienced reduced construction activity in our market areas while existing commercial real estate activity continues to be moderate. At June 30, 2009, our assets totaled $531.4 million, including net loans receivable of $490.1 million, compared to total assets of $512.7 million, including net loans receivable of $477.0 million, at March 31, 2009. Construction loans totaled $63.7 million or 12.5%, commercial real estate were $163.1 million or 32.0%, residential first mortgage loans were $137.8 million or 27.0%, commercial business loans were $56.7 or 11.1%, and home equity loans and lines were $43.5 million or 8.5% of our total loan portfolio at June 30, 2009 compared to construction loans of $62.9 million or 12.7%, commercial real estate of $154.8 or 31.1%, residential first mortgage loans of $140.1 or 28.2%, commercial business $53.4 million or 10.8%, and home equity loans and lines of $41.7 million or 8.4% at March 31, 2009.EESA also increased FDIC deposit insurance on most accounts from $100,000 to $250,000. This increase is in place until the end of 2013 and is not covered by deposit insurance premiums paid by the banking industry. In addition, the FDIC has implemented two temporary programs to provide deposit insurance for the full amount of most non-interest bearing transaction accounts through the end of 2009 and to guarantee certain unsecured debt of financial institutions and their holding companies through June 2012. We expect to participate only in the program that provides unlimited deposit insurance coverage through December 31, 2009 for noninterest-bearing transaction accounts (typically business checking accounts) and certain funds swept into noninterest-bearing savings accounts. Under that program, we will pay a 10 basis points fee (annualized) on the balance of each covered account in excess of $250,000, while the extra deposit insurance is in place. At June 30, 2009, we had $3.9 million in such accounts in excess of $250,000.
The Company\'s total assets increased $18.7 million to $531.4 million at June 30, 2009 from $512.7 million at March 31, 2009 due to increases in loans receivable of $13.1 million, cash of $2.7 million, real estate owned of $1.2 million, Federal Home Loan Bank Stock of $900,000, and cash consisting of interest bearing deposits at other financial institutions of $600,000. The increase in loans was funded with increases in savings and interest bearing deposits of $5.2 million, non-interest bearings deposits of $4.0 million, increases in FHLB advances and borrowings of $13.6 million and decreases in time deposits of $3.6 million at June 30, 2009 from March 31, 2009. FHLB advances increased by $14.0 million and other borrowings decreased by $300,000. Stockholders equity increased $562,000 to 46.9 million at June 30, 2009, from $46.3 million at March 31, 2009, due to income for the three months ended June 30, 2009 of $720,000 million offset by cash dividend payments.
At June 30, 2009, non-performing assets totaled approximately $15.6 million or 2.95% of assets compared to $9.0 million or 1.75% of assets at March 31, 2009. Non-performing assets at June 30, 2009 were comprised of repossessed assets of $2.6 million and non accrual loans of $13.0 million. Included in the total non-performing assets at June 30, 2009 was one relationship of approximately $1.6 million which includes $1.4 million of residential lots. At June 30, 2009, our allowance for loan losses to non-performing assets was 38.7% and to total loans was 1.24% compared to 66.43% and 1.25%, respectively at March 31, 2009. At June 30, 2009 the percentage of delinquent loans to total loans was 4.26% compared to 3.43% at March 31, 2009. Our allowance for loan losses to total loans remained relatively unchanged at June 30, 2009 compared to March 31, 2009 because no significant additional specific allowances were considered warranted at June 30, 2009 on the Bank s nonperforming assets and due to the growth in our loan portfolio Based on current market values of the properties securing these 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.
General. Net income for the three months ended June 30, 2009 decreased $246,000 or 25.5% to $720,000 from $965,000 for the three months ended June 30, 2008. Net interest income increased $450,000, the provision for loan losses increased 129,000, non-interest income increased $104,000 and non-interest expense increased $689,000 during the three months ended June 30, 2009 compared to the same period in 2008. Return on equity for the three months ended June 30, 2009 was 6.14% compared to 9.86% for the three month period ended June 30, 2008. Return on assets was .55% for quarter ended June 30, 2009 compared to 0.80% for the same period in the previous fiscal year.
Interest Expense. Total interest expense decreased by $1.1 million to $2.4 million for the quarter ended June 30, 2009, from $3.5 million for the quarter ended June 30, 2008. Interest on deposits decreased by $682,000 to $2.2 million for the quarter ended June 30, 2009 from $2.9 million for the quarter ended June 30, 2008 due to a decrease in the average rate paid, partially offset by higher average deposit balances. Interest expense on borrowed money decreased by $349,000 to $247,000 for the quarter ended June 30, 2009 compared to $597,000 million for the quarter ended June 30, 2008. A decrease in the average rate paid on borrowings from 2.66% to 0.91% offset by an increase in the average balance of borrowings from $89.6 million for the June 30, 2008 quarter to $108.6 million for the June 30, 2009 quarter accounted for the decrease. The average rate paid on interest-bearing liabilities was 2.07% during the three months ended June 30, 2009 compared to 3.15% for the three months ended June 30, 2008.
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