-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, B+6Eus9bsVDsFeea1NyRMz0FkQzJyC1cHG9dVhPUUq4T2gGfgQjPNqu5t4x68hiQ rdTJnT49OXqTzNfm9AC+OA== 0000914317-99-000438.txt : 19990811 0000914317-99-000438.hdr.sgml : 19990811 ACCESSION NUMBER: 0000914317-99-000438 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990804 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19990810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EAST TEXAS FINANCIAL SERVICES INC CENTRAL INDEX KEY: 0000929646 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 752559089 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: SEC FILE NUMBER: 000-24848 FILM NUMBER: 99683050 BUSINESS ADDRESS: STREET 1: 1200 S BECKHAM AVE CITY: TYLER STATE: TX ZIP: 75701 BUSINESS PHONE: 9035931767 MAIL ADDRESS: STREET 1: 1200 SOUTH BECKHAM AVE CITY: TYLER STATE: TX ZIP: 75701 8-K/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K Amendment No. 1 CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) August 4, 1999 EAST TEXAS FINANCIAL SERVICES, INC. - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its Charter) Delaware 0-24848 75-2559089 - -------------------------------------------------------------------------------- (State or other (Commission File No.) (IRS Employer jurisdiction of Identification incorporation Number) 1200 South Beckham Avenue, Tyler, Texas 75701-3319 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (903) 593-1767 - -------------------------------------------------------------------------------- N/A - -------------------------------------------------------------------------------- (Former name or former address, if changed since last report) Item 5. Other Events On August 4, 1999, the Registrant issued for publication the press release attached as Exhibit "99" announcing earnings for the quarter ended June 30, 1999 and the declaration of cash dividend. Item 7. Financial Statements and Exhibits The Exhibit referred to in Item 5 of this Report and listed on the accompanying Exhibit Index is filed as part of this Report and is incorporated herein by reference. Exhibit Number Description - ------ ----------- 99 Press release, published on August 4, 1999. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized. Date: August 10, 1999 By: /s/ GERALD W. FREE --------------------------- Gerald W. Free Vice Chairman, President And Chief Executive Officer EX-99 2 EXHIBIT "99" EAST TEXAS FINANCIAL SERVICES, INC. - -------------------------------------------------------------------------------- 1200 South Beckham -- P. O. Box 6910 -- Tyler, TX 75711-6910 -- 903-593-1767 Fax 903-593-1094 NEWS RELEASE For verification, contact: Gerald W. Free, Vice Chairman/President/CEO Derrell W. Chapman, Vice President/COO/CFO Telephone: (903) 593-1767 Fax: (903) 593-1094 For immediate release: August 4, 1999 - ------------------------------------------------------------------------------ EAST TEXAS FINANCIAL SERVICES, INC. REPORTS EARNINGS AND DECLARES CASH DIVIDEND Tyler, Texas, August 4, 1999, - - - East Texas Financial Services, Inc., the holding Company for First Federal Savings and Loan Association of Tyler, Texas, today reported that consolidated net income for the nine months ended June 30, 1999, was $282,000 or $0.21 per common share, compared to $425,148 or $0.29 per common share reported for the same period in 1998. For the three month period ended June 30, 1999, the Company reported net income of $48,850 or $.04 per common share, compared to $123,049 or $.09 per common share for the three month period ended June 30, 1998. Earnings for the current quarter were down primarily as a result of costs associated with the opening of an additional full-service office and the introduction of additional lines of business in 1999. The expanded product lines, including commercial and consumer loans as well as a variety of deposit products, are now being offered at all of the Company's full-service locations. "We were fully aware of the costs associated with the expansion into additional lines of business and the addition of a new full-service office location in Tyler," stated Vice Chairman of the Board, President and CEO, Gerald W. Free. "The ongoing costs associated with these changes are approximately $35,000 per month. Based on our projections for net interest income and other non-interest income, we believe that our new office location needs to be approximately $15,000,000 in assets to begin adding to net income. As of June 30th, we had approximately $3,000,000 in assets at our new location, with outstanding commitments to loan an additional $4,000,000. At that rate of growth, we would expect our new location and services to be profitable by early to mid 2000, which is consistent with our original estimate." In conjunction with the release of earnings, Mr. Free announced that the Company would continue its quarterly cash dividend of $0.05 per share to be paid on August 25, 1999 to stockholders of record as of August 11, 1999. The annualized dividend yield is approximately 1.40% based on the most recent market price of $14.25. Over the past three months, shares of the Company's stock have traded between $10.125 and $14.125 per share. At June 30, 1999, the Company had 1,392,853 shares of stock outstanding and a book value per share of approximately $14.26. Capital levels for the Company's wholly owned subsidiary, First Federal Savings and Loan Association of Tyler, were reported, at June 30, 1999, as 11.77% for both tangible and core ratios. The minimum regulatory requirements for tangible and core capital ratios were 1.50% and 4.00% respectively. The Association's risk-based capital ratio was 30.92% at quarter end as compared to the minimum 8.0% regulatory requirement. At June 30, 1999, non-performing assets totaled $387,000 or 0.26% of total assets as compared to $228,000 or 0.18% of total assets at September 30, 1998. Non-performing loans equaled $387,000 or 0.61% of loans receivable at June 30, 1999, compared to $228,000 or 0.37% at September 30, 1998. Classified assets were reported as $596,000 or 0.39% of total assets at June 30, 1999, compared to $570,000 or 0.46% of total assets at September 30, 1998. East Texas Financial Services, Inc., is the holding company for First Federal Savings and Loan Association of Tyler, Texas, which presently operates three full service offices and two loan agencies in the Tyler area. The Company's stock is traded under the symbol "ETFS" on the OTC Electronic Bulletin Board. - end -
EAST TEXAS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION ASSETS June 30, 1999 September 30, 1998 ------------- ------------------ (Unaudited) Cash and due from banks $ 700,340 $ 592,363 Interest-bearing deposits with banks 2,995,408 1,104,695 Interest-earning time deposits with financial institutions 2,559,617 1,959,617 Federal funds sold 0 129,187 Investment securities available-for-sale 3,509,689 0 Mortgage-backed securities available-for-sale 32,839,921 12,810,165 Investment securities held-to-maturity (estimated market value of $31,856,963 at June 30, 1999, and $30,115,954 at September 30, 1998) 31,996,016 29,766,844 Mortgage-backed securities held-to-maturity (estimated market value of $6,499,597 at June 30, 1999 and $11,088,555 at September 30, 1998) 6,380,517 10,940,500 Loans receivable, net of allowance for credit losses of $231,971 at June 30, 1999 and $233,180 at September 30, 1998 63,309,037 61,119,047 Accrued interest receivable 1,156,568 978,378 Federal Home Loan Bank stock, at cost 2,138,800 789,100 Premises and equipment 2,643,508 2,273,067 Foreclosed real estate, net of allowance of $-0- 0 34,500 Mortgage servicing rights 268,071 216,879 Other assets 638,086 1,303,120 ------------- ------------- Total Assets $ 151,135,578 $ 124,017,462 ============= ============= EAST TEXAS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION LIABILITIES AND STOCKHOLDERS' EQUITY June 30, 1999 September 30, 1998 ------------- ------------------ (Unaudited) Liabilities: Demand deposits $ 1,887,603 $ 1,528,374 Savings and NOW deposits 13,714,731 10,504,973 Time deposits 72,098,938 74,610,310 ------------- ------------- Total deposits 87,701,272 86,643,657 FHLB advances 42,282,763 14,945,852 Advances from borrowers for taxes and insurance 582,951 844,188 Federal income taxes Current (37,562) -0- Deferred 99,305 31,618 Accrued expenses and other liabilities 646,622 1,168,453 ------------- ------------- Total liabilities 131,275,351 103,633,768 ------------- ------------- Stockholders' equity: Preferred stock, $0.01 par value, 500,000 shares authorized, none outstanding Common stock, $0.01 par value, 5,500,000 shares authorized, 1,884,492 shares issued and 1,392,853 outstanding 18,845 18,845 Additional paid-in-capital 12,319,624 12,319,624 Deferred compensation - RRP shares (126,080) (213,366) Unearned employee stock ownership plan shares (543,564) (543,564) Unrealized gain/(loss) available-for-sale securities (net) (15,406) (64,974) Retained earnings (substantially restricted) 13,730,902 13,661,392 Treasury stock, 491,639 shares at cost (5,524,094) (4,794,263) ------------- ------------- Total stockholder's equity 19,860,227 20,383,694 ------------- ------------- Total liabilities and stockholders' equity $ 151,135,578 $ 124,017,462 ============= =============
EAST TEXAS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Nine Months Ended June 30, Ended June 30, (Unaudited) (Unaudited) 1999 1998 1999 1998 --------------------------- ------------------------ INTEREST INCOME Loans receivable: First Mortgage $1,099,806 $1,137,446 $3,327,777 $3,424,340 Consumer and other loans 101,023 60,995 260,141 131,083 Securities available for sale: Investment securities 4,030 11,546 56,220 41,859 Mortgage-backed securities 416,196 145,433 992,788 314,507 Securities held to maturity: Investment securities 564,969 422,663 1,450,009 1,223,087 Mortgage-backed securities 115,175 243,422 432,185 839,190 Deposits with banks 31,185 58,664 115,181 190,550 ---------- ---------- ---------- ---------- Total interest income 2,332,384 2,080,169 6,634,301 6,164,616 ---------- ---------- ---------- ---------- INTEREST EXPENSE Deposits 1,051,220 1,096,740 3,180,472 3,325,875 FHLB advances 475,237 167,030 1,032,074 350,878 ---------- ---------- ---------- ---------- Total interest expense 1,526,457 1,263,770 4,212,546 3,676,753 ---------- ---------- ---------- ---------- Net interest income before provision for loan losses 805,927 816,399 2,421,755 2,487,863 Provision for loan losses 0 0 0 0 ---------- ---------- ---------- ---------- Net interest income after provision for loan losses 805,927 816,399 2,421,755 2,487,863 ---------- ---------- ---------- ---------- EAST TEXAS FINANCIAL SERVICES, INC. CONSOLIDATED STATEMENTS OF INCOME Three Months Nine Months Ended June 30, Ended June 30, (Unaudited) (Unaudited) 1999 1998 1999 1998 --------------------------- ------------------------ NONINTEREST INCOME Gain(loss) on sale of interest-earning assets 22,437 37,230 127,502 100,675 Loan origination and commitment fees 17,930 14,245 64,988 56,015 Loan servicing fees 23,667 19,874 53,400 68,798 Gain on foreclosed real estate (352) (6,911) (50) (6,351) Other 16,543 13,692 76,792 35,330 ---------- ---------- ---------- ---------- Total noninterest income 80,225 78,130 322,632 254,467 ---------- ---------- ---------- ---------- NONINTEREST EXPENSE Compensation and benefits 543,784 463,006 1,572,468 1,415,800 Occupancy and equipment 195,827 47,084 310,718 140,843 SAIF deposit insurance premium (27,533) 14,417 (1,069) 42,862 Loss on foreclosed real estate 0 0 2,069 0 Other 88,250 173,060 402,571 470,015 ---------- ---------- ---------- ---------- Total noninterest expense 800,328 697,567 2,286,757 2,069,520 ---------- ---------- ---------- ---------- Income (loss) before provision for income taxes 85,824 196,962 457,630 672,810 Income tax expense (benefit) 36,974 73,913 175,630 247,662 ---------- ---------- ---------- ---------- NET INCOME (LOSS) $ 48,850 $ 123,049 $ 282,000 $ 425,148 ========== ========== ========== ========== Earnings per common share $ .04 $ .09 $ .21 $ .29 Earnings per common share - assuming dilution .04 .08 .21 .28
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