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)
July 18, 1997
EAST TEXAS FINANCIAL SERVICES, INC.
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(Exact name of Registrant as specified in its Charter)
Delaware 0-24848 75-2559089
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(State or other (Commission File No.) (IRS Employer
jurisdiction of Identification Number)
incorporation
1200 South Beckham Avenue, Tyler, Texas 75701-3319
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (903) 593-1767
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N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events
On July 18, 1997, the Registrant issued for publication the press
release attached as Exhibit "99" announcing quarter end earnings and quarterly
cash dividend payment.
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.
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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: July 18, 1997 By: /s/ GERALD W. FREE
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Gerald W. Free
Vice Chairman
President and
Chief Executive Officer
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Exhibit Sequential
Number Description Page
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99 Press release, published on July 18, 1997. 6
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EXHIBIT "99"
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{GRAPHIC-LOGO] 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, July 18, 1997
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EAST TEXAS FINANCIAL SERVICES, INC.
ANNOUNCES QUARTER END EARNINGS
AND
QUARTERLY CASH DIVIDEND PAYMENT
Tyler, Texas, July 18, 1997, - - - East Texas Financial Services, Inc. (NASDAQ:
ETFS), the holding company for First Federal Savings and Loan Association of
Tyler, Texas, today reported that consolidated net income for the quarter ended
June 30, 1997, was $191,000 or $.20 per share, compared to $212,000 or $.20 per
share for the quarter ended June 30, 1996. For the nine months ended June 30,
1997, net income was reported as $560,000 or $.57 per share, compared to
$668,000 or $.60 per share for the nine months ended June 30, 1996.
In conjunction with the release of earnings, Gerald W. Free, Vice Chairman of
the Board, President and CEO, announced that the Company had declared a cash
dividend of $.05 per share to be paid on August 27, 1997, to stockholders of
records as of August 13, 1997.
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Total assets were reported as $112.7 million at June 30, 1997, compared to
$114.4 million at September 30, 1996, the Company's last fiscal year end. Total
stockholders' equity was reported as $20.5 million at June 30, 1997, compared to
$20.9 million at September 30, 1996. "The decrease in total stockholders' equity
was primarily due to the 53,964 shares of treasury stock acquired earlier this
year," stated President Free. "The Company's Board of Directors believes that
the repurchase of outstanding stock at current price levels is an attractive
investment opportunity and one that will benefit the Company and its
stockholders."
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported at June 30, 1997, as 16.3% for both
tangible and core capital ratios, well in excess of the minimum required levels
of 1.5% and 3.0% respectively. The Association's risk-based capital ratio was
41.1% of risk-weighted assets at June 30, 1997, compared to the minimum 8.0%
regulatory requirement. At June 30, 1997, the Association was considered a "well
capitalized" institution.
Loans receivable totaled $54.6 million at June 30, 1997, a $6.7 million increase
from the $47.9 million reported at September 30, 1996. "We continue to be
pleased with the growth in our lending program," stated Free. "For the nine
months ended June 30th, we originated approximately 200 mortgage loans totaling
$18.0 million. In addition, we are looking for additional growth in our lending
program with the opening of loan offices in Lindale and Whitehouse locations."
At June 30, 1997, non-performing assets totaled $193,000 or .17% of total assets
as compared to $450,000 or .39% of total assets at September 30, 1996.
Non-performing loans equaled $162,000 or .30% of loans receivable at June 30,
1997, compared to $450,000 or .94% at September 30, 1996. Classified assets were
reported as $715,000 or .63% of total assets at June 30, 1997, compared to
$999,000 or .87% of total assets at September 30, 1996.
East Texas Financial Services, Inc., is the holding company for First Federal
Savings and Loan Association of Tyler, Texas, which presently operates two full
service offices and two loan agency offices in the Tyler area.
At June 30, 1997, the Company had outstanding 1,025,321 shares of stock and
reported a "book value" per share of $19.97. The Company's stock is traded under
the symbol "ETFS" on the NASDAQ National Market System and is listed in most
daily newspapers as "EastTxFnl".
- selected financial data follows -
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
ASSETS June 30, 1997 September 30, 1996
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(Unaudited)
<S> <C> <C>
Cash and due from banks ....................................... $ 524,238 $ 704,615
Interest-bearing deposits with banks .......................... 3,661,117 4,995,032
Interest earning time deposits with financial institutions .... 1,565,573 1,663,573
Federal funds sold ............................................ 191 480,285
Mortgage-backed securities available-for-sale ................. 2,039,439 0
Investment securities held-to-maturity (estimated market value
of $27,077,180 at June 30, 1997, and $30,114,685
at September 30, 1996 ..................................... 27,074,037 30,138,744
Mortgage-backed securities held-to-maturity (estimated market
value of $20,314,274 at June 30, 1997, and
$25,383,579 at September 30, 1996) ........................ 19,914,227 24,948,793
Loans receivable, net of allowance for credit losses
of $273,659 at June 30, 1997, and $289,120
at September 30, 1996 .................................... 54,582,647 47,925,067
Accrued interest receivable ................................... 924,798 930,657
Federal Home Loan Bank stock, at cost ......................... 990,700 948,500
Premises and equipment ........................................ 952,471 970,184
Foreclosed real estate, net of allowances of $-0- ............. 31,202 0
Deferred income taxes ......................................... 107,310 130,825
Mortgage servicing rights ..................................... 137,604 119,845
Other assets .................................................. 191,295 416,816
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Total Assets ......................................... $ 112,696,849 $ 114,372,936
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits .......................................... $ 2,340,942 $ 2,889,861
Savings and NOW deposits ................................. 10,336,441 11,099,604
Other time deposits ...................................... 76,623,581 77,671,666
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Total deposits ....................................... 89,300,964 91,661,131
FHLB advances ............................................ 1,963,420 0
Advances from borrowers for taxes and insurance .......... 632,275 917,222
Federal income taxes
Current ............................................ 2,462 5,044
Deferred ........................................... 0 0
Accrued expenses and other liabilities ................... 326,582 858,926
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Total Liabilities .................................... 92,225,703 93,442,323
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</TABLE>
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
(continued)
June 30, 1997 September 30, 1996
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(Unaudited)
<S> <C> <C>
Stockholders' equity:
Preferred stock, $0.01 par value, 500,000
shares authorized, none outstanding
Common stock, $.01 par value, 5,500,000 shares authorized,
1,256,387 shares issued .................................. 12,564 12,564
Additional paid-in capital ............................... 12,112,516 12,112,516
Deferred compensation - RRP shares ....................... (358,843) (446,129)
Unearned employee stock ownership plan shares ............ (763,206) (763,206)
Net unrealized gain on securities available for sale ..... 3,623 0
Retained earnings (substantially restricted) ............. 13,212,621 12,811,881
Treasury stock, 231,066 and 177,102 shares at cost ....... (3,748,129) (2,797,013)
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Total stockholders' equity ........................... 20,471,146 20,930,613
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Total liabilities and stockholders' equity .......... $ 112,696,849 $ 114,372,936
============= =============
</TABLE>
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Nine Months
Ended June 30, Ended June 30,
(Unaudited) (Unaudited)
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable:
First mortgage loans ..................... $ 1,050,080 $ 905,480 $ 3,023,247 $ 2,631,571
Consumer and other loans ................. 20,378 19,588 61,306 57,698
Securities available for sale:
Mortgage-backed securities ............... 9,530 0 9,530 0
Securities held to maturity:
Investment securities .................... 519,860 603,635 1,630,019 1,835,456
Mortgage-backed securities ............... 354,023 470,306 1,164,609 1,555,358
----------- ----------- ----------- -----------
Total interest income .................. 1,953,871 1,999,009 5,888,711 6,080,083
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INTEREST EXPENSE
Deposits ...................................... 1,105,921 1,117,339 3,310,523 3,391,531
FHLB advances ................................. 4,728 0 4,728 0
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Total interest expense ................. 1,110,649 1,117,339 3,315,251 3,391,531
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Net interest income before provision
for loan losses ...................... 843,222 881,670 2,573,460 2,688,552
Provision for loan losses ..................... 0 0 5,000 0
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Net interest income after provision
for loan losses ...................... 843,222 881,670 2,568,460 2,688,552
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NONINTEREST INCOME
Gain (loss) on sales of interest-earning assets 13,050 16,588 44,372 74,548
Loan origination and commitment fees .......... 18,809 22,474 46,102 60,016
Loan servicing fees ........................... 26,860 32,007 73,797 91,995
Other ......................................... 18,967 18,118 51,382 48,668
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Total noninterest income ............... 77,686 89,187 215,653 275,227
----------- ----------- ----------- -----------
</TABLE>
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(continued)
Three Months Nine Months
Ended June 30, Ended June 30,
(Unaudited) (Unaudited)
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
NONINTEREST EXPENSE
Compensation and benefits ..................... 425,534 405,463 1,271,288 1,193,286
Occupancy and equipment ....................... 40,769 40,133 112,829 115,051
SAIF deposit insurance premium ................ 15,011 55,139 66,186 167,522
(Gain) loss on foreclosed real estate ......... (8) (26) 5,683 4,826
Other ......................................... 136,337 135,526 438,547 431,882
----------- ----------- ----------- -----------
Total noninterest expense .............. 617,643 636,235 1,894,533 1,912,567
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Income (loss) before provision for income taxes .. 303,265 334,622 889,580 1,051,212
Income tax expense (benefit) ..................... 112,354 122,262 329,646 383,063
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NET INCOME (LOSS) ................................ $ 190,911 $ 212,360 $ 559,934 $ 668,149
=========== =========== =========== ===========
Earnings per common share ........................ $ 0.20 $ 0.20 $ 0.57 $ 0.60
</TABLE>
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