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 23, 1998
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 23, 1998, the Registrant issued for publication the press
release attached as Exhibit "99" announcing earnings and quarterly cash dividend
payment for the quarter ended March 31, 1998.
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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Exhibit
Number
No. Description
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99 Press release, published on April 23, 1998.
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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 23, 1998 By: /s/ GERALD W. FREE
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Gerald W. Free
Vice Chairman, President
And Chief Executive Officer
EXHIBIT "99"
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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, April 23, 1998
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EAST TEXAS FINANCIAL SERVICES, INC.
ANNOUNCES QUARTER END EARNINGS
AND
QUARTERLY CASH DIVIDEND PAYMENT
Tyler, Texas, April 23, 1998, - - - 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 six months
ended March 31, 1998 was $302,099 or $.21 per share, compared to $369,023 or
$.25 per share for the six month period ended March 31, 1997.
For the three month period ended March 31, 1998, the Company reported net income
of $157,795 or $.11 per share, compared to $185,793 or $.12 per share for the
three month period ended March 31, 1997.
As a result of the Company's 3 for 2 stock split on March 25, 1998, there was a
restatement of per share data for all periods.
Gerald W. Free, Vice Chairman, President and CEO, announced that the Company
would continue its quarterly cash dividend of $.05 per share, to be paid on May
27, 1998 to stockholders of record as of May 13, 1998. "Although the market
price of the Company's stock decreased as a result of the recent 3 for 2 stock
split, the Company's Board of Directors elected to continue paying a $.05 per
share quarterly dividend," stated Mr. Free. "Based on recent trades of $16.125
per share, the $.05 per share cash dividend would equate to an annual dividend
yield of approximately 1.25%."
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Loans receivable totaled $61.2 million at March 31, 1998, a $4.1 million
increase from the $57.1 million reported at September 30, 1997. For the six
months ended March 31, 1998, the Company originated approximately 187 mortgage
loans totaling $16.0 million, compared to 100 loans totaling $9.7 million for
the same period in 1997.
Total assets were reported as $120.9 million at March 31, 1998, compared to
$115.9 million at September 30, 1997. Total stockholders' equity was reported as
$21.1 million at March 31, 1998, compared to $20.9 million at September 30,
1997.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported at March 31, 1998, as 14.9% for
both tangible and core capital ratios, well in excess of the minimum required
levels of 1.5% and 4.0% respectively. The Association's risk-based capital ratio
was 39.0% of risk-weighted assets at March 31, 1998, compared to the minimum
8.0% regulatory requirement. At March 31, 1998, the Association was considered a
"well capitalized" institution.
At March 31, 1998, non-performing assets totaled $496,000 or .41% of total
assets as compared to $310,000 or .27% of total assets at September 30, 1997.
Non-performing loans equaled $326,000 or .53% of loans receivable at March 31,
1998, compared to $310,000 or .54% at September 30, 1997. Classified assets were
reported as $954,000 or .79% of total assets at March 31, 1998, compared to
$904,000 or .78% of total assets at September 30, 1997.
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 March 31, 1998, the Company had outstanding 1,539,461 shares of stock and
reported a "book value" per share of $13.69. The Company's stock is traded under
the symbol "ETFS" on the NASDAQ National Market System and is listed in most
daily newspapers as "EasTxFnl".
- selected financial data follows -
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<TABLE>
<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 1998 September 30, 1997
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(Unaudited)
<S> <C> <C>
ASSETS
Cash and due from banks $ 910,924 $ 508,729
Interest-bearing deposits with banks 4,190,911 6,422,404
Interest earning time deposits with financial institutions 1,467,617 1,565,573
Federal funds sold 755,226 753,847
Mortgage-backed securities available for sale 8,979,785 4,356,271
Investment securities held-to-maturity (estimated market value
of $25,145,293 at March 31, 1998, and $30,114,685
at September 30, 1997) 25,059,420 23,058,359
Mortgage-backed securities held-to-maturity (estimated market
value of $14,607,615 at March 31, 1998, and
$25,383,579 at September 30, 1997) 14,264,392 18,151,765
Loans receivable, net of allowance for credit losses
of $236,107 at March 31, 1998, and $272,851
at September 30, 1997 61,193,852 57,110,029
Accrued interest receivable 927,132 885,383
Federal Home Loan Bank stock, at cost 1,036,000 1,005,700
Premises and equipment 1,070,893 1,123,311
Foreclosed real estate, net of allowances of $-0- 170,200 0
Mortgage servicing rights 178,777 149,094
Other assets 737,520 858,147
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Total Assets $ 120,942,649 $ 115,948,612
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
March 31, 1998 September 30, 1997
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(Unaudited)
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Demand deposits $ 1,554,898 $ 1,882,109
Savings and NOW deposits 9,778,621 9,771,266
Other time deposits 76,573,858 76,897,274
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Total deposits 87,907,377 88,550,649
FHLB advances 11,025,888 4,195,000
Advances from borrowers for taxes and insurance 394,960 881,685
Federal income taxes
Current (33,820) 0
Deferred 112,227 127,909
Accrued expenses and other liabilities 459,095 1,314,001
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Total Liabilities 99,865,727 95,069,244
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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 12,564 12,564
Additional paid-in capital 12,203,160 12,196,879
Deferred compensation - RRP shares (271,557) (329,748)
Unearned employee stock ownership plan shares (650,614) (650,614)
Unrealized gain/(loss) investments - AFS (net) (42,687) 15,512
Retained earnings (substantially restricted) 13,557,073 13,365,792
Treasury stock, 345,031 shares at cost (3,731,017) (3,731,017)
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Stock stockholders' equity 21,076,922 20,879,368
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Total liabilities and stockholders' equity $ 120,942,649 $ 115,948,612
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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)
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable:
First Mortgage .................................... $1,152,062 $1,005,529 $2,286,895 $1,973,167
Consumer and other loans .......................... 40,783 20,401 70,088 40,928
Securities available for sale:
Investment securities ............................. 15,104 13,716 30,313 27,702
Mortgage-backed securities ........................ 104,684 0 169,074 0
Securities held to maturity:
Investment securities ............................. 406,515 460,336 800,424 938,469
Mortgage-backed securities ........................ 281,066 389,152 595,768 810,586
Deposits with banks ................................. 54,923 65,188 131,885 143,988
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Total interest income ........................... 2,055,137 1,954,322 4,084,447 3,934,840
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INTEREST EXPENSE
Deposits ............................................ 1,105,465 1,094,930 2,229,135 2,204,602
FHLB advances ....................................... 121,675 0 183,848 0
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Total interest expense .......................... 1,227,140 1,094,930 2,412,983 2,204,602
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Net interest income before
provision for loan losses .................... 827,998 859,392 1,671,464 1,730,238
Provision for loan losses ........................... 0 0 0 5,000
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Net interest income after
provision for loan losses ..................... 827,998 859,392 1,671,464 1,725,238
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Six Months
Ended March 31, Ended March 31,
(Unaudited) (Unaudited)
1998 1997 1998 1997
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<S> <C> <C> <C> <C>
NONINTEREST INCOME
Gain(loss) on sale of
interest-earning assets ........................... 42,008 18,243 63,445 31,322
Loan origination and commitment fees ................ 18,807 10,074 41,770 27,293
Loan servicing fees ................................. 26,621 15,251 48,924 46,937
Gain on foreclosed real estate ...................... 560 0 560 0
Other ............................................... 10,926 16,985 21,638 32,415
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Total noninterest income ........................ 98,922 60,553 176,337 137,967
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NONINTEREST EXPENSE
Compensation and benefits ........................... 460,684 418,099 952,794 845,754
Occupancy and equipment ............................. 45,513 38,196 93,759 72,060
SAIF deposit insurance premium ...................... 14,299 3,124 28,446 51,175
Loss on foreclosed real estate ...................... 0 5,633 0 5,691
Other ............................................... 157,288 162,273 296,954 302,210
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Total noninterest expense ....................... 677,784 627,325 1,371,953 1,276,890
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Income (loss) before provision
for income taxes .................................... 249,135 292,620 475,848 586,315
Income tax expense (benefit) ........................... 91,340 106,827 173,749 217,292
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NET INCOME (LOSS) ...................................... $ 157,795 $ 185,793 $ 302,099 $ 369,023
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Earnings per common share .............................. $ .11 $ .12 $ .21 $ .25
Earnings per common share -
assuming dilution .................................... .11 .12 .20 .24
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