Community Financial Corp. in Waldorf, Md., has agreement to support a director nominated by the activist investor Basswood Capital Management.
The $1.1 billion-asset holding company for Community Bank of the Chesapeake will nominate Eric Goldberg at its May 2 annual meeting, according to a Friday regulatory document. In exchange, Basswood will not submit any proposals at the annual meeting.
Goldberg will serve a one-year term and will "provide the Board with insight into increasing shareholder value," according to the filing.
Goldberg, who is a senior analyst at Basswood, on March 15 contacted Community Financial's chairman, Michael Middleton, to request a board seat. Goldberg and Basswood's managing member, Matthew Lindenbaum, met with Middleton and Community Financial's chief executive, William Pasenelli, in Waldorf to discuss the board seat.
Basswood amassed its 9.8% stake in Community Financial since Dec. 31, based on regulatory filings.
Goldberg is also a director of the $362 million-asset Regent Bank in Davie, Fla.