WALDORF, Md., Oct. 20, 2020 (GLOBE NEWSWIRE) -- The Community Financial Corporation (NASDAQ: TCFC), the holding company for Community Bank of the Chesapeake, reported that the Company’s Board of Directors has approved an expansion to its existing stock purchase plan. Before today’s Board action, the Company had authorization to repurchase up to 184,863 shares of the Company’s common stock pursuant the stock repurchase plan previously adopted by the Board on May 4, 2015. After today’s Board action, the Company may repurchase up to 300,000 of the Company’s outstanding shares of common stock using up to $7.0 million of the proceeds the Company raised in its recently completed $20.0 million subordinated debt offering.
“We remain committed to enhancing overall stockholder value,” commented William J. Pasenelli, President and Chief Executive Officer. “While the new stock repurchase plan increases the Company’s overall ability to buy back shares up to 300,000 shares, we currently expect to limit the capital spent on repurchases during the fourth quarter of 2020 and the first quarter of 2021 to $300,000 per quarter, for an aggregate of $600,000, while we monitor the impact of the pandemic on asset quality. Nevertheless, the Board believes that it is prudent to enhance the Company’s ability 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 share 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 Community Financial Corporation Information
The Community Financial Corporation is the bank holding company for Community Bank of the Chesapeake, which conducts business through its main office in Waldorf, Maryland, and branch offices in Bryans Road, California, Charlotte Hall, Dunkirk, La Plata, Leonardtown, Lusby, Prince Frederick and Waldorf, Maryland and Fredericksburg, Virginia.
