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)
April 17, 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 April 17, 1997, the Registrant issued for publication the press
release attached as Exhibit "99" announcing earnings for the quarter ended March
31, 1997, declaration of cash dividends and stock repurchase program.
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: April 17, 1997 By: /s/ GERALD W. FREE
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Gerald W. Free
President and
Chief Executive Officer
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Exhibit Sequential
Number Description Page No.
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99 Press release, published on April 17, 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, President and CEO
Derrell W. Chapman, Vice President/COO/CFO
Telephone: (903) 593-1767
Fax: (903) 593-1094
For immediate release, April 17, 1997
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS EARNINGS, DECLARES CASH DIVIDEND
AND
ANNOUNCES STOCK REPURCHASE PROGRAM
Tyler, Texas, April 17, 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
three months ended March 31, 1997, was $185,793 or $.19 per share, unchanged
from the $.19 per share reported for the same period in 1996. For the six months
ended March 31, 1997, the Company reported net income of $369,023 or $.37 per
share, compared to $.40 per share for the six months ended March 31, 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 May 28, 1997, to stockholders of record
as of May 14, 1997.
In addition, Free stated that the Company intended to repurchase up to 53,964,
approximately 5% of the its outstanding shares of stock. He stated that the
shares will be repurchased in the open market over the next nine months at
prevailing market prices from time to time depending upon market conditions.
President Free state that, "the Board of Directors believes that the repurchase
represents an attractive investment opportunity and that the repurchase will
benefit the Company and its stockholders." The repurchased shares will become
treasury shares and will be used for issuance of shares in connection with the
exercise of stock options as well as general corporate purposes.
Serving the Financial Needs of East Texas
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Over the past three months, shares of the Company's stock have traded between
$16.875 and $19.00 per share. At March 31, 1997, the Company had 1,079,285
shares of stock outstanding.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported, at March 31, 1997, as 16.2% for
both tangible and core ratios. The minimum regulatory requirements for tangible
and core capital ratios were 1.50% and 3.00% respectively. The Association's
risk based capital ratio was 45.2% at quarter end as compared to the minimum
8.0% regulatory requirement.
At March 31, 1997, non-performing assets totaled $274,000 or .25% of total
assets as compared to $450,000 or .39% of total assets at September 30, 1996.
Non-performing loans equaled $198,000 or .38% of loans receivable at March 31,
1997, compared to $450,000 or .94% at September 30, 1996. Classified assets were
reported as $906,000 or .81% of total assets at March 31, 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 one loan agency in the Tyler area.
The Company's stock is traded under the symbol "ETFS: on the NASDAQ National
Market System and is listed in mostly daily newspapers as "EastTxFnl".
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
March 31, September 30,
1997 1996
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(Unaudited)
ASSETS
<S> <C> <C>
Cash and due from banks ....................................... $ 497,869 $ 704,615
Interest-bearing deposits with banks .......................... 7,031,396 4,995,032
Interest earning time deposits with financial institutions .... 1,663,573 1,663,573
Federal funds sold ............................................ 309,230 480,285
Investment securities held-to-maturity (estimated market
value of $25,992,393 at March 31, 1997, and $30,114,685
at September 30, 1996) ................................... 26,108,843 30,138,744
Mortgage-backed securities held-to-maturity (estimated
market value of $21,283,941 at March 31, 1997,
and $25,383,579 at September 30, 1996) .................. 20,857,307 24,948,793
Loans receivable, net of allowance for credit
losses of $273,659 at March 31, 1997, and
$289,120 at September 30, 1996 ........................... 51,797,970 47,925,067
Accrued interest receivable ................................... 900,672 930,657
Federal Home Loan Bank stock, at cost ......................... 976,100 948,500
Premises and equipment ........................................ 943,086 970,184
Foreclosed real estate, net of allowances of $-0- ............. 76,224 0
Deferred income taxes ......................................... 117,223 130,825
Mortgage servicing rights ..................................... 130,327 119,845
Other assets .................................................. 279,570 416,816
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Total Assets ......................................... $ 111,689,390 $ 114,372,936
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits .......................................... $ 1,686,177 $ 2,889,861
Savings and NOW deposits ................................. 10,399,745 11,099,604
Other time deposits ...................................... 77,704,798 77,671,666
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Total deposits ....................................... 89,790,720 91,661,131
Advances from borrowers for taxes and
insurance ................................................ 387,053 917,222
Federal income taxes
Current ............................................ (3,854) 5,044
Deferred ........................................... 0 0
Accrued expenses and other liabilities ................... 265,572 858,926
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Total Liabilities .................................... 90,439,491 93,442,323
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
March 31, September 30,
1997 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 ....................... (387,938) (446,129)
Unearned employee stock ownership plan shares ............ (763,206) (763,206)
Retained earnings (substantially restricted) ............. 13,072,976 12,811,881
Treasury stock, 177,102 shares at cost ................... (2,797,013) (2,797,013)
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Total stockholders' equity ........................... 21,249,899 20,930,613
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Total liabilities and stockholders' equity ........... $ 111,689,390 $ 114,372,936
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</TABLE>
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Six Months
Ended March 31, Ended March 31,
(Unaudited) (Unaudited)
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
INTEREST INCOME Loans receivable:
First mortgage loans ..................... $1,005,529 $ 860,684 $1,973,167 $1,726,091
Consumer and other loans ................. 20,401 18,951 40,928 38,110
Investment securities ......................... 539,240 603,547 1,110,159 1,231,821
Mortgage-backed securities .................... 389,152 523,206 810,586 1,085,052
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Total interest income .................. 1,954,322 2,006,388 3,934,840 4,081,074
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INTEREST EXPENSE
Deposits ...................................... 1,094,930 1,131,328 2,204,602 2,274,192
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Total interest expense ................. 1,094,930 1,131,328 2,204,602 2,274,192
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Net interest income before provision
for loan losses ...................... 859,392 875,060 1,730,238 1,806,882
Provision for loan losses ..................... 0 0 5,000 0
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Net interest income after provision
for loan losses ...................... 859,392 875,060 1,725,238 1,806,882
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NONINTEREST INCOME
Gain (loss) on sales of interest-earning assets 18,243 30,210 31,322 57,960
Loan origination and commitment fees .......... 10,074 28,111 27,293 37,542
Loan servicing fees ........................... 15,251 29,377 46,937 59,988
Other ......................................... 16,985 8,836 32,415 30,550
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Total noninterest income ............... 60,553 96,534 137,967 186,040
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME (continued)
Three Months Six Months
Ended March 31, Ended March 31,
(Unaudited) (Unaudited)
1997 1996 1997 1996
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<S> <C> <C> <C> <C>
NONINTEREST EXPENSE
Compensation and benefits ..................... 418,099 385,840 845,754 787,823
Occupancy and equipment ....................... 38,196 35,855 72,060 74,918
SAIF deposit insurance premium ................ 3,124 55,344 51,175 112,383
(Gain) loss on foreclosed real estate ......... 5,633 1,768 5,691 4,852
Other ......................................... 162,273 156,713 302,210 296,356
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Total noninterest expense .............. 627,325 635,520 1,276,890 1,276,332
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Income (loss) before provision for income taxes .. 292,620 336,074 586,315 716,590
Income tax expense (benefit) ..................... 106,827 122,612 217,292 260,801
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NET INCOME (LOSS) ................................ $ 185,793 $ 213,462 $ 369,023 $ 455,789
========== ========== ========== ==========
Earnings per common share ........................ $ 0.19 $ 0.19 $ 0.37 $ 0.40
</TABLE>
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