Community Financial Corp. announces quarterly earnings.

OLNEY, Ill.--(BUSINESS WIRE)--July 27, 1995--Community Financial Corp. (Nasdaq National Market System: CFIC), the parent company of Community Bank & Trust N.A., announced earnings of $605,000 or $0.23 per share for the quarter ended June 30, 1995, compared to $512,000 for the same quarter in 1994.

For the first six months of the year, year-to-date earnings are $1,011,000 or $0.38 per share, compared to $1,001,000 for the first six months of 1994. (The earnings per share calculations are based on the assumption that the 2,645,000 shares outstanding at June 30, 1995 were outstanding for all periods.) Net interest income decreased from $1.6 million for the quarter ended June 30, 1994 to $1.4 million for the quarter ended June 30, 1995, and from $3.2 million for the six months ended June 30, 1994 to $2.9 million for the six months ended June 30, 1995, as the Bank's cost of funds has been slower to react than the yield on interest-earning assets in the changing interest rate environment. Net income was increased by $112,000 from the sale of Olney Savings Insurance (which was a wholly owned subsidiary of Community Bank & Trust) and $149,000 from the recovery of a reserve set up for a law suit on which a favorable settlement was received.

Return on average assets and return on average equity for the six months ended June 30, 1995 were 1.18% and 12.20%, respectively (on an annualized basis). Return on average assets and return on average equity for the six months ended June 30, 1995, after removing from net income the $112,000 gain on sale and the $149,000 law suit recovery, were .92% and 9.58%, respectively (on an annualized basis).

As of June 30, 1995, reported assets were $192.3 million, which was an increase of $27.7 million or 16.8% from December 31, 1994. Total stockholders equity increased to $38.9 million at June 30, 1995.

Community Financial Corp. completed its initial stock offering on June 29, 1995, raising net proceeds of $25.4 million, and began trading on the Nasdaq June 30, 1995. Community Bank & Trust fsb converted its charter to a National Bank and began transacting business as Community Bank & Trust N.A. at the start of business on June 30, 1995.

Community Financial Corp. is the bank holding company for Community Bank & Trust N.A. Community Bank & Trust N.A. operates five offices serving Richland, Coles, Jasper, Lawrence and Wayne Counties and contiguous counties in southeastern Illinois. -0-

                     COMMUNITY FINANCIAL CORP.
                  Summary of Financial Highlights
           CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                            (Unaudited)

   (Dollars in thousands)                June 30,      December 31,
                                           1995            1994
ASSETS:
   Cash and cash equivalents              $13,993          $5,638
   Investment securities                   21,811           9,971
   Loans and mortgage backed securities   152,261         143,679
   Other assets                             4,275           5,345

      Total Assets                       $192,340        $164,633

LIABILITIES:
   Deposits                              $149,569        $151,078
   Borrowed money                               0           1,050
   Other liabilities                        3,849           1,251

      Total Liabilities                  $153,418        $153,379

   Total Stockholders' Equity             $38,922         $11,254

   Total Liabilities and Stockholders'
    Equity                               $192,340        $164,633

                CONSOLIDATED STATEMENTS OF OPERATION
                            (Unaudited)
            (Dollars in thousands except per share data)

                                   Three Months       Six Months
                                   Ended June 30,    Ended June 30,
                                   1995     1994     1995     1994

   Interest income                $3,108   $2,951   $6,282   $5,907
   Interest expense                1,754    1,330    3,341    2,686
   Net interest income             1,354    1,621    2,942    3,221
      Provision for loan losses       24       32       67       48
   Net interest income after
    provision for loan losses      1,330    1,589    2,875    3,173
   Total noninterest income          736      232      956      483
   Total noninterest expense       1,061      953    2,141    1,953
   Income before federal income
    tax provision                  1,005      868    1,689    1,703
   Federal income tax provision      400      356      678      702
   Net income                       $605     $512   $1,011   $1,001
   Per share earnings on common
    stock (2,645,000 shares)       $0.23    $0.19    $0.38    $0.38

CONTACT: Community Financial Corp., Olney

Douglas W. Tompson, 618/395-8676