Business Description
The Community Financial Corporation is a bank holding company organized in
1989 under the laws of the State of Maryland. It owns all the outstanding shares
of capital stock of Community Bank of the Chesapeake (the “Bank”),
a Maryland-chartered commercial bank. The Bank was organized in 1950 as Tri-County
Building and Loan Association of Waldorf, a mutual savings and loan association,
and in 1986 converted to a federal stock savings bank and adopted the name Tri-County
Federal Savings Bank. In 1997, the Bank converted to a Maryland-chartered commercial
bank and adopted the name Community Bank of Tri-County. Effective October 18,
2013, Community Bank changed its name to become Community Bank of the Chesapeake.
The Bank maintains its main office and operations center in Waldorf, Maryland,
in addition to its branch offices in Lexington Park, Leonardtown, La Plata,
Dunkirk, Bryans Road, Waldorf, Charlotte Hall, Prince Frederick and Lusby, Maryland
and Fredericksburg and King George, Virginia. The Company’s second branch
in Fredericksburg is scheduled to open in downtown during the first quarter
of 2016. During the third quarter pf 2015, the Company agreed to sell its King
George, Virginia branch building and equipment and the transaction closed on
January 28, 2016. In addition, the Bank maintains five loan production offices
(“LPOs”) in La Plata, Prince Frederick, Leonardtown and Annapolis,
Maryland and Fredericksburg, Virginia. The Leonardtown and Fredericksburg LPOs
are co-located with branches. The Annapolis LPO opened in October 2014.
The Bank operates 16 automated teller machines including four stand-alone locations.
The Bank offers telephone and internet banking services. The Bank is engaged
in the commercial and retail banking business as authorized by the banking statutes
of the States of Maryland and Virginia and applicable federal regulations, including
the acceptance of deposits, and the origination of loans to individuals, associations,
partnerships and corporations. The Bank’s real estate portfolio consists
of commercial mortgage loans, residential first and second mortgage loans and
home equity lines of credit. Commercial lending consists of both secured and
unsecured loans. The Bank is a member of the Federal Reserve and Federal Home
Loan Bank (the “FHLB”) system and its deposits are insured up to
applicable limits by the Deposit Insurance Fund administered by the Federal
Deposit Insurance Corporation (“FDIC”).
The Bank offers a wide variety of real estate and commercial loans. The Bank’s
lending activities include commercial real estate loans, construction loans,
land acquisition and development loans, equipment financing, commercial and
consumer loans. The Company exited the residential mortgage origination line
of business in April 2015 and has established third party sources to supply
its residential whole loan portfolio. Most of the Bank’s customers are
residents of, or businesses located in the Bank’s market area. The Bank’s
primary targets for commercial loans consist of small and medium-sized businesses
with revenues of $5.0 million to $35.0 million as well as local municipal agencies
and not-for-profits in Southern Maryland, the Annapolis area of Maryland, the
Northern Neck region, and the greater Fredericksburg area of Virginia.
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