The Community Financial Corporation (NASDAQ:TCFC) (the “Company”), the holding company for Community Bank of the Chesapeake (the “Bank”), reported that the Company’s Board of Directors has authorized the Company to continue purchasing shares of the Company’s common stock under the stock purchase plan originally authorized by the Board on October 20, 2020. After today’s Board action, the Company may repurchase the 99,450 shares remaining under the October 2020 stock repurchase plan using up to $4.0 million in the aggregate.
“We continue to focus on enhancing overall stockholder value through the execution of sound capital management strategies,” commented William J. Pasenelli, Chief Executive Officer of the Company and the Bank. “Originally, under the 2020 stock repurchase plan, the Board authorized the Company to repurchase up to 300,000 shares of the Company’s common stock using up to $7 million of proceeds raised in the subordinated debt offering we completed in August 2020. As previously disclosed, in August of this year, we completed the repurchase of 200,550 shares using this $7 million allocation. We are very pleased to be in a position to continue the repurchase of shares under the 2020 repurchase plan. While this authorization allows the Company to continue to execute on the original plan, the Company’s overall ability to buy back shares will be limited to $4 million in the aggregate and $1.5 million in the aggregate on a quarterly basis. As we did when announcing prior share repurchases, the Board believes that it is prudent for the Company to repurchase shares of stock under its repurchase program, particularly in an environment in which we believe the Company’s stock remains undervalued.”
Repurchases may be made from time to time in the open market, in privately negotiated stock purchases or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities and Exchange Commission and applicable federal securities laws. The stock repurchase plan does not obligate the Company to acquire any particular amount of common stock, and it may be modified or suspended at any time at the Company’s discretion. The Company’s repurchase program will terminate on September 30, 2022 if not all shares authorized for repurchase have been purchased by that date.
About The Community Financial Corporation – Headquartered in Waldorf, MD, The Community Financial Corporation is the bank holding company for Community Bank of the Chesapeake, a full-service commercial bank with assets of approximately $2.3 billion. Through its branch offices and commercial lending centers, Community Bank of the Chesapeake offers a broad range of financial products and services to individuals and businesses. The Company’s branches are located at its main office in Waldorf, Maryland, and branch offices in Bryans Road, Dunkirk, Leonardtown, La Plata, Charlotte Hall, Prince Frederick, Lusby and California, Maryland; and downtown Fredericksburg, Virginia. More information about Community Bank of the Chesapeake can be found at www.cbtc.com.
