Subsequent Event

6 Months Ended

Jun. 30, 2017

Subsequent Event [Abstract]

Subsequent Event

NOTE 16 – SUBSEQUENT EVENT

Proposed Acquisition of County First Bank

On July 31, 2017, the Company and Community Bank of the Chesapeake entered into an Agreement and Plan of Merger with County First Bank (“County First”) which had total assets of $224 million, total deposits of $209 million, and five branch offices in La Plata, Waldorf, New Market, Prince Frederick and California, Maryland at June 30, 2017.

Pending receipt of the necessary regulatory and County First shareholder approvals, the effectiveness of the registration statement on Form S-4 for the common stock to be issued in the merger, and the completion of certain additional customary closing conditions, the merger is currently expected to close in the fourth quarter of 2017 or the first quarter of 2018. Subject to the terms of, and conditions set forth in, the Agreement and Plan of Merger, County First will merge with and into Community Bank of the Chesapeake.

Under the terms of the merger agreement, which was approved by the Boards of Directors of each company, upon completion of the merger, County First Bank shareholders will be entitled to receive 0.9543 shares of The Community Financial Corporation common stock and $1.00 in cash for each share of County First Bank common stock they hold.  County First shareholders may also receive, in the aggregate, additional contingent cash consideration of up to $2,154,303 (representing a maximum potential per share value of $2.24) based upon the resolution of certain identified assets prior to closing. There can be no assurance that County First will sell, resolve or otherwise dispose of any of the identified assets or that County First shareholders will receive any contingent cash consideration.