-----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, D07GKI9iIjouhzzJvhsRhwH9n8Rm9JotooRp5YGhcl2JvhOKFq1jPpiJcmC8wVvK 3RcDESKOlIDkXh7wvuDgXQ== 0000914317-99-000740.txt : 19991220 0000914317-99-000740.hdr.sgml : 19991220 ACCESSION NUMBER: 0000914317-99-000740 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991216 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 19991217 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 SEC ACT: SEC FILE NUMBER: 000-24848 FILM NUMBER: 99776826 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 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) December 16, 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 December 16, 1999, the Registrant issued for publication the press release attached as Exhibit "99" announcing earnings for the fiscal year ended September 30, 1999. 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 December 16, 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. EAST TEXAS FINANCIAL SERVICES, INC. Date: December 16, 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 o P. O. Box 6910 o Tyler, TX 75711-6910 903-593-1767 o 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: December 16, 1999 - ------------------------------------------------------------------------------ EAST TEXAS FINANCIAL SERVICES, INC. ANNOUNCES YEAR END EARNINGS Tyler, Texas, December 16, 1999, - - - East Texas Financial Services, Inc., (OTC Bulletin Board: ETFS.OB), the holding company for First Federal Savings and Loan Association of Tyler, Texas, today reported that consolidated net income for the fiscal year ended September 30, 1999, was $297,990 or $.23 per share compared to net income of $560,946 or $.39 per share for the year ended September 30, 1998. "We were expecting a decrease in earnings for the current year," stated Gerald W. Free, Vice Chairman, President and CEO. "The expenses associated with our new office location in South Tyler and the introduction of new commercial and consumer banking products and services during the year accounted for a substantial portion of the decline in earnings. We anticipated that it would take approximately 18 months to begin seeing positive earnings from the new location. We are well ahead of that pace." In April of 1999, the Company opened a new full service branch office at 7205 S. Broadway in Tyler. The office is staffed with eight full time and two part time employees. The primary focus of the new location is on commercial and consumer banking relationships. In addition, the company now offers a full line of consumer and commercial banking products at its two other full service locations in Tyler and Whitehouse, Texas. The Company also has loan production offices located in Tyler and Lindale, Texas. Total assets of the Company were reported as $153.7 million at September 30, 1999, compared to $124.0 million at September 30, 1998. Loans receivable totaled $67.3 million at year end, an increase of $6.2 million or approximately 10.0% from the $61.1 million reported at September 30, 1998. Stockholders' equity totaled $18.4 million at September 30, 1999, a decrease of $2.0 million from the $20.4 million at September 30, 1998. During the fiscal year ended September 30, 1999, the Company repurchased 171,203 shares of treasury stock at an average price of $12.90 per share and ended the year with 1,294,420 shares outstanding. At year end, the Company owned 590,072 shares of treasury stock at an average price of $11.84 per share. Shares of the Company's stock closed at $14.00 per share at September 30, 1999, compared to a close of $13.25 at September 30, 1998. "In addition to the new consumer and commercial banking products and services introduced this year, we spent a substantial amount of time and expense in analyzing potential merger candidates," noted President Free. "We have believed for some time that an acquisition was one of the best methods to increase the size of our balance sheet, increase earnings and ultimately increase the value of our stockholders' investment. We are extremely pleased to have completed a plan to add Gilmer Savings Bank, F.S.B. to our operations. We believe that we can bring an enhanced array of products to the Gilmer market that will complement their current operations and that the merger allows us to expand our markets and continue our growth strategy. We view this as an opportunity to enhance the value of our stock. We expect the merger to be completed in early 2000 and we expect to see positive results from it next year." Capital levels for the Company's wholly owned subsidiary, First Federal Savings and Loan Association of Tyler, were reported at year end as 11.2% for both tangible and core capital ratios, in excess of the minimum required levels of 1.5% and 4.0% respectively. The Association's risk-based capital ratio was 27.9% of risk-weighted assets at September 30, 1999, as compared to the minimum, 8.0% regulatory requirement. At year end, the Association was considered a "well-capitalized" institution. At September 30, 1999, non-performing assets totaled $768,000 or .50% of total assets, compared to $228,000 or .18% of assets at September 30, 1998. Non-performing loans to total loans receivable equaled 1.14% at September 30, 1999 compared to .37% at September 30, 1998. Classified assets were reported as $1.1 million at year end, compared to $570,000 at September 30, 1998. - selected financial data follows -
Selected Financial Data (Dollars in Thousands, except share data) 1999 1998 1997 1996 1995 - ------------------------------------------------------------------------------------------------------------------------------ At September 30, - ---------------- Total assets ............................... $ 153,725 $ 124,017 $ 115,949 $ 114,373 $ 117,077 Loans receivable, net ...................... 67,250 61,119 57,110 47,925 41,760 Investment Securities - Available-for-sale . 5,919 0 0 0 0 Investment securities - held-to-maturity ... 30,481 29,767 23,058 30,139 30,263 Mortgage-backed securities - available for sale ................................. 32,894 12,810 4,356 0 0 Mortgage-backed securities - held-to-maturity ......................... 5,807 10,941 18,152 24,949 33,741 Deposits ................................... 87,540 86,644 88,551 90,768 92,474 FHLB advances .............................. 45,058 14,946 4,195 0 0 Stockholders' equity ....................... 18,419 20,384 20,879 20,931 23,146 Common shares outstanding .................. 1,294,420 1,464,056 1,026,366 1,079,285 1,256,387 Book value per share ....................... 14.23 13.92 20.34 19.39 18.42 For The Year Ended September 30, - -------------------------------- Net interest income ........................ $ 3,231 $ 3,298 $ 3,419 $ 3,552 $ 3,658 Provision for loan losses .................. 0 0 5 0 0 Other operating income ..................... 358 361 302 371 299 Operating expenses ......................... 3,141 2,768 2,523 3,200 2,335 Net income ................................. 298 561 767 458 1,071 Selected Financial Ratios - ------------------------- Return on average assets ................... 0.21% 0.46% 0.67% 0.40% 0.92% Return on average equity ................... 1.51 2.72 3.67 2.08 5.47 Interest rate spread (average) ............. 1.81 2.00 2.21 2.27 2.49 Net interest margin ........................ 2.41 2.83 3.12 3.16 3.21 Ratio of interest-earning assets to interest- bearing liabilities ...................... 113.80 119.58 122.29 122.23 119.13 Operating expenses to average assets ....... 2.26 2.31 2.19 2.77 2.01 Efficiency ratio ........................... 91.21 78.96 69.24 84.10 59.70 Net interest income to operating expenses .. 1.03 x 1.20 x 1.35 x 1.11 x 1.57 x Asset Quality Ratios - -------------------- Non-performing assets to total assets ...... 0.50% 0.18% 0.27% 0.39% 0.34% Non-performing loans to total loans ........ 1.14 0.37 0.54 0.94 0.95 receivable Allowance for loan losses to non-performing 35.16 102.19 88.06 64.22 74.75 loans Allowance for loan losses to total loans ... 0.40 0.38 0.48 0.60 0.71 Allowance for loan losses to total assets .. 0.18 0.18 0.24 0.25 0.25 Regulatory Capital Ratios (Association only) - -------------------------------------------- Total capital to total assets .............. 11.22% 14.91% 15.21% 15.39% 14.40% Tangible capital ratio ..................... 11.30 14.95 15.20 15.30 14.40 Core capital ratio ......................... 11.30 14.95 15.20 15.30 14.40 Risk-based capital ratio ................... 27.94 38.29 40.22 44.23 43.44
Serving the Financial Needs of East Texas -----END PRIVACY-ENHANCED MESSAGE-----