The increase in non-interest income excluding the OTTI charge previously mentioned was due to both an increase in secondary mortgage loan fees and deposit account related transactions. Non-interest expenses increased $279,000 or 8.1% to $3.7 million for the September 30, 2009 quarter from $3.4 million for the September 30, 2008 quarter. The increase in non-interest expenses was due primarily to compensation related expenses due generally to merit increases and loan collection expenses.

Community's net income (loss) for the six months ended September 30, 2009 was $1,842,000 or $.42 diluted per share, compared to $(9,525,000) or $(2.19) diluted (loss) per share for the six months ended September 30, 2008. The increase in net income for the six months ended September 30, 2009 compared to the same period ended September 30, 2008 can be attributed to the OTTI charge in the September, 2008 quarter, an increase in net interest income and non-interest income offset an increase in noninterest expenses and the provision for loan losses. The increase in net interest income is attributable to an increase in the average outstanding balance of loans receivable and an increase in the interest rate spread for the six months ended September 30, 2009 compared to September 30, 2008. The interest rate spread increased by 55 basis points to 3.83% for the six months September 30, 2009 compared to 3.28% for the same period in 2008.

At September 30, 2009, non-performing assets totaled approximately $16.5 million or 3.05% of assets compared to $9.0 million or 1.75% of assets at March 31, 2009. Our allowance for loan losses to non-performing assets was 39.2% and to total loans was 1.29% at September 30, 2009 compared to 66.43% and 1.25%, respectively at March 31, 2009. The increase in non-performing assets consisted of $5.6 million of nonaccrual loans, which included residential permanent and construction loans, and commercial real estate loans, and $1.9 million of real estate owned and repossessed assets.

At September 30, 2009, Community Bank was classified as a "well capitalized" institution. Community Bank, the wholly owned subsidiary of Community Financial, is headquartered in Staunton, Virginia and has offices in Waynesboro, Stuarts Draft, Raphine, Verona, Lexington, Buena Vista and Virginia Beach. Community Financial Corporation is traded on the Nasdaq National Market, under the symbol CFFC.

Except for the historical information in this press release, the matters discussed may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including, but not limited to, changes in economic conditions in the Company's market areas, changes in the financial condition or business prospects of the Company's borrowers, changes in policies by regulatory agencies, the impact of competitive loan products, loan demand risks, fluctuations in interest rates and the relationship between long and short term rates, operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Actual strategies and results in future periods may differ materially from those currently expected. These forward-looking statements represent the company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

            Community Financial Corporation (Nasdaq:CFFC)

 Selected Financial Condition Data
 ---------------------------------
 (In thousands)
                                                             Percent
                               September 30,   March 31,     Increase
                                   2009          2009       (Decrease)
                              -------------  -------------  ----------
 Total assets                   $541,172       $512,724         5.5%
 Loans receivable, net           500,435        476,950         4.9
 Investment securities             1,696          1,907       (11.1)
 Real estate owned and
  repossessed assets               2,639          1,400        88.5
 Deposits                        388,965        365,506         6.4
 Borrowings                      101,584         96,476         5.3
 Stockholders' equity             47,862         46,337         3.3

 Selected Operations Data
 ------------------------
 (In thousands)
                                   Three Months Ended        Percent
                              September 30, September 30,    Increase
                                  2009           2008       (Decrease)
                              -------------  -------------  ----------
 Interest income                  $7,167         $7,342        (2.4)%
 Interest expense                  2,028          3,308       (38.7)
  Net interest income              5,139          4,034        27.4
 Provision for loan losses           651            601         8.3
  Net interest income after
   provision for loan losses       4,488          3,433        30.7
 Noninterest income (loss)           998        (10,205)         --
 Noninterest expense               3,708          3,429         8.1
 Income taxes                        656            289       127.0
 Net income (loss)                 1,122        (10,490)         --
 Effective dividend on preferred
  stock                              188             --       100.0
 Net income available to common
  stockholders                       934        (10,490)         --


                               At or for the Quarter Ended   Percent
                              September 30,  September 30,   Increase
                                  2009           2008       (Decrease)
                              -------------  -------------  ----------
 Return on average equity           9.47%        (30.41)%        --%
 Return on average equity
  without OTTI charge               9.47           6.53        45.0
 Return on average assets            .84          (2.13)         --
 Return on average assets
  without OTTI charge                .84            .46        82.6
 Interest rate spread               4.02           3.31        21.5
 Diluted earnings (loss) per
  common share                       .26          (2.41)         --
 Dividends paid on common shares      --           .065      (100.0)


                                    Six Months Ended         Percent
                              September 30,  September 30,   Increase
                                  2009           2008       (Decrease)
                              -------------  -------------  ----------
(In thousands)
 Interest income                 $14,066        $14,822        (5.1)%
 Interest expense                  4,470          6,782       (34.1)
  Net interest income              9,596          8,040        19.3
 Provision for loan losses           932            753        23.8
  Net interest income after
   provision for loan losses       8,664          7,287        18.9
 Noninterest income (loss)         1,942         (9,364)         --
 Noninterest expense               7,644          6,676        14.5
 Income taxes                      1,120            771        45.3
 Net income (loss)                 1,842         (9,524)         --
 Effective dividend on preferred
  stock                              376             --       100.0
 Net income available to common
  stockholders                     1,466         (9,524)         --


 Other Selected Data
 -------------------
                                    At or for the Six
                                      Months Ended           Percent
                              September 30,  September 30,   Increase
                                  2009           2008       (Decrease)
                              -------------  -------------  ----------
 Return on average equity           7.78%        (48.53)%        --%
 Return on average equity
  without OTTI charge               7.78           7.79        (1.1)
 Return on average assets            .70          (3.88)         --
 Return on average assets
  without OTTI charge                .70            .62        12.9
 Interest rate spread               3.83           3.28        16.8
 Non-performing assets to total
  assets                            3.05            .92       231.5
 Allowance for loan losses to
  total loans                       1.29            .73        76.7
 Allowance for loan losses to
  nonperforming assets               .39            .74       (47.3)


 Per share data
 --------------
                                    At or for the Six
                                      Months Ended           Percent
                              September 30,  September 30,   Increase
                                  2009           2008       (Decrease)
                              -------------  -------------  ----------

 Diluted earnings (loss) per
  common share                      $.42        $ (2.19)         --%
 Book value per common share        8.07           6.90        17.0
 Dividends paid on common
  shares                              --            .13      (100.0)

 Shares outstanding            4,361,658      4,361,658          --

 Note: All share and per share data is restated for a 2 for 1 stock
 split as of  September 6, 2007.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Community Financial Corporation

CONTACT:  Community Financial Corporation
R. Jerry Giles, Senior Vice President/Chief Financial
Officer
540-886-0796

Stockholders' equity increased $7.3 million, or 43.6%, to $23.9 million at September 30, 2009 from $16.6 million at December 31, 2008. The increase in stockholders' equity for the nine months ended September 30, 2009 was primarily the result of the receipt of a $6.97 million investment from the U.S. Department of the Treasury in May 2009 in exchange for 6,970 shares of the Company's preferred stock pursuant to the TARP Capital Purchase Program provided for under the Emergency Economic Stabilization Act of 2008 and an increase of $580,000 in the Company's accumulated other comprehensive income relating to the change in fair value of its available-for-sale investment portfolio. Partially offsetting these increases was the Company's net loss for the nine months ended September 30, 2009. As of September 30, 2009 there were 1,245,267 shares of Company common stock outstanding, resulting in a tangible book value of $13.56 per share at that date.

Net interest income before provision for loan losses increased $212,000, or 10.0%, to $2.4 million for the three months ended September 30, 2009 and $273,000, or 4.3%, to $6.6 million for the nine months ended September 30, 2009 as compared to the comparable prior year periods. These increases are primarily due to decreases in the average cost of interest bearing liabilities of 68 and 88 basis points for the three and nine months ended September 30, 2009, respectively. The average cost of interest bearing liabilities decreased to 1.85% and 2.04% for the three and nine months ended September 30, 2009, respectively, from 2.53% and 2.92% for the comparable prior year periods. The effect of this decrease in average cost was partially offset by decreases in the average yield on interest-earning assets of 72 and 85 basis points for the three and nine months ended September 30, 2009, respectively. The average yield on interest-earning assets decreased to 4.88% and 4.99% for the three and nine months ended September 30, 2009, respectively, from 5.60% and 5.84% for the comparable prior year periods. The net interest margin, expressed as a percentage of average earning assets, decreased 8 basis points to 3.19% for the three months ended September 30, 2009 from 3.27% for the three months ended September 30, 2008; however it increased 13 basis points from the three months ended June 30, 2009, and decreased 5 basis points to 3.10% for the nine months ended September 30, 2009 from 3.15% for the nine months ended September 30, 2008. The average yield on loans decreased 51 and 60 basis points for the three and nine months ended September 30, 2009, respectively, compared to the comparable prior year periods. This decrease is partially due to approximately one-half of the Bank's loan portfolio being adjustable rate. The average yield on loans decreased to 5.34% and 5.52% for the three and nine months ended September 30, 2009, respectively, from 5.85% and 6.12% for the comparable prior year periods.

The provision for loan losses decreased $675,000 and $545,000 for the three and nine months ended September 30, 2009, respectively, compared to the prior year period. The decrease in the provision was the result of management's quarterly analysis of the allowance for loan loss. Nonperforming loans totaled $10.0 million, or 3.10% of total assets, at September 30, 2009 and $5.0 million, or 1.75% of total assets, at September 30, 2008. The ratio of the allowance for loan losses to nonperforming loans totaled 38.4% and 69.8% at September 30, 2009 and September 30, 2008, respectively.

Noninterest income increased $571,000 to $544,000 for the three months ended September 30, 2009 as compared to the comparable prior year period. The increase is primarily due to an increase in gain on sale of loans of $117,000 and a $485,000 loss on impairment related to FHMLC preferred stock incurred in the three months ended September 30, 2008. Noninterest income increased $818,000, or 85.7%, to $1.8 million for the nine months ended September 30, 2009 as compared to the comparable prior year period. This increase is primarily due to increases in gain on sale of loans of $371,000 and the $485,000 loss on impairment incurred in the three months ended September 30, 2008 mentioned above. Partially offsetting these increases are a decrease in gains on sale of securities of $29,000 and an increase in loss on sale of foreclosed assets of $44,000.

Noninterest expense increased $323,000, or 13.2%, to $2.8 million for the three months ended September 30, 2009 as compared to the comparable prior year period. This increase is primarily due to increases in compensation and benefits expense of $114,000, FDIC premiums of $103,000, building and equipment expense of $12,000 and data processing expense of $19,000. The increase in compensation and benefits expense is the result of annual merit increases. The increase in building and equipment expense are partially due to higher real estate taxes. These increases are partially offset by lower advertising and marketing expenses of $15,000. Noninterest expenses increased $593,000, or 8.1%, to $7.9 million for the nine months ended September 30, 2009 as compared to the comparable prior year period. This increase is primarily due to increases in FDIC premiums of $184,000 and special assessments of $148,000, compensation and benefits expense of $170,000, building and equipment expense of $49,000 and data processing expense of $48,000. Partially offsetting these increases was a decrease in advertising and marketing expense of $44,000.

Community Financial Shares, Inc. is a bank holding company headquartered in Glen Ellyn, Illinois with $321.6 million in assets at September 30, 2009. Its primary subsidiary, Community Bank-Wheaton/Glen Ellyn, maintains four full service offices in Glen Ellyn and Wheaton.

For further information about the Company and the Bank visit them on the world-wide-web at www.commbank-wge.com. In addition, information on the Company's stock can be found at www.otcbb.com under the symbol CFIS.

Statements contained in this news release which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risk and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Community Financial Shares, Inc.
Selected Consolidated Financial Data: (Unaudited)         September 30,  June 30,        March 31,       December 31,
(In thousands)                                            2009           2009            2009            2008
Total assets                                              $ 321,636      $ 315,897       $ 308,606       $ 294,677
Loans receivable, net                                     231,959        226,625         215,471         219,615
Investment securities available-for-sale                  41,428         40,331          31,334          26,964
Deposits                                                  274,309        267,956         267,225         253,514
FHLB Advances                                             17,000         17,000          17,000          17,000
Stockholders' equity                                      23,857         23,158          16,736          16,613
Nonperforming assets                                      12,057         5,492           3,157           2,954
Nonperforming loans                                       9,980          4,612           3,046           2,756
Allowance for loan losses                                 3,828          3,995           3,169           3,300
Selected ratios:
Total equity to total assets                              7.42      %    7.33      %     5.42      %     5.64      %
Allowance for loan losses as a % of nonperforming assets  31.7      %    72.7      %     100.4     %     111.7     %
Allowance for loan losses as a % of loans                 1.62      %    1.73      %     1.45      %     1.48      %
Book value per share                                      $ 13.56        $ 13.00         $ 13.44         $ 13.34
Market value per share                                    14.50          15.25           12.25           17.50
Quarterly net interest margin (1)                         3.19      %    3.06      %     3.00      %     3.05      %
                                                          Three months ended             Nine months ended
                                                          September 30,                  September 30,
Selected operating data: (Unaudited)                      2009           2008            2009            2008
(In thousands, except per share data)
Interest income                                           $ 3,625        $ 3,688         $ 10,568        $ 11,657
Interest expense                                          1,256          1,531           4,014           5,376
Net interest income                                       2,370          2,157           6,554           6,281
Provision for loan losses                                 120            795             1,080           1,625
Net interest income after provision for loan losses       2,250          1,362           5,474           4,656
Noninterest income                                        544            (27       )     1,772           954
Noninterest expense                                       2,766          2,443           7,932           7,339
Income (loss) before income tax                           28             (1,108    )     (686      )     (1,728    )
Income tax benefit                                        (58       )    (308      )     (464      )     (682      )
Net income (loss)                                         86             (800      )     (222      )     (1,046    )
Preferred stock dividends and accretion                   (106      )    -               (163      )     -
Net loss available to common shareholders                 $ (20     )    $ (800    )     $ (385    )     $ (1,046  )
Loss per share - basic                                    $ (0.02   )    $ (0.64   )     $ (0.31   )     $ (0.84   )
Loss per share - diluted                                  $ (0.02   )    $ (0.64   )     $ (0.31   )     $ (0.84   )
Selected performance ratios:
Earnings (loss) on average assets (1)                     0.11      %    -1.10     %     -0.14     %     -0.71     %
Earnings (loss) on average equity (1)                     1.47      %    -17.92    %     -2.26     %     -11.50    %
Noninterest expense to average total assets (1)           3.41      %    3.36      %     5.14      %     5.00      %
Net interest margin (1)                                   3.19      %    3.27      %     3.10      %     3.15      %
Average total assets                                      $ 322,187      $ 288,040       $ 311,442       $ 294,370
Average total equity                                      23,233         17,706          19,817          18,234
(1) Annualized.

SOURCE: Community Financial Shares, Inc.

Community Financial Shares, Inc. 
Scott W. Hamer 
President/CEO 
630-545-0900