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)
January 29, 1999
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 January 29, 1999, the Registrant issued for publication the press
release attached as Exhibit "99" announcing earnings for the quarter ended
December 31, 1998, declaration of cash dividend 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.
2
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Exhibit Sequential
Number Description Page No.
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99 Press release, published on January 29, 1999. 6
3
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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: January 29, 1999 By: /s/ GERALD W. FREE
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Gerald W. Free
Vice Chairman, President and
Chief Executive Officer
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EXHIBIT "99"
EAST TEXAS FINANCIAL SERVICES, INC.
1200 South Beckham o P. O. Box 6910 o Tyler, TX 75711-6910 o 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: January 29, 1999
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS EARNINGS, DECLARES CASH DIVIDEND
AND
ANNOUNCES STOCK REPURCHASE PROGRAM
Tyler, Texas, January 29, 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 three months ended December
31, 1998, was $175,771 or $0.13 per share, compared to $144,304 or $0.10 per
share reported for the same period in 1997.
In conjunction with the release of earnings, Gerald W. Free, Vice Chairman of
the Board, President and CEO, announced that the Company would continue its
quarterly cash dividend of $0.05 per share to be paid on February 24, 1999 to
stockholders of record as of February 10, 1999. The annualized dividend yield is
approximately 2.05% based on the most recent market price of $9.75.
In addition, Mr. Free stated that the Company was announcing its intention to
repurchase up to 73,203 shares, or approximately 5%, of the Company's
outstanding shares of stock. He stated that the shares would be repurchased in
the open market over the next several months at prevailing market prices from
time to time depending upon market conditions.
President Free stated that, "the Board of Directors believes that the stock
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.
Over the past three months, shares of the Company's stock have traded between
$8.125 and $13.25 per share. At December 31, 1998, the Company had 1,464,056
shares of stock outstanding and a book value per share of approximately $14.00.
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Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported, at December 31, 1998, as 13.97%
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 36.98% at quarter end as compared to
the minimum 8.0% regulatory requirement.
At December 31, 1998, non-performing assets totaled $331,000 or 0.25% of total
assets as compared to $228,000 or 0.18% of total assets at September 30, 1998.
Non-performing loans equaled $331,000 or 0.54% of loans receivable at December
31, 1998, compared to $228,000 or 0.37% at September 30, 1998. Classified assets
were reported as $506,000 or 0.39% of total assets at December 31, 1998,
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 two full
service offices and two loan agencies in the Tyler area.
Mr. Free also noted that the Company anticipates the opening of its new branch
office at 7205 S. Broadway in Tyler sometime in February. He said that the
Company was looking forward to introducing additional lines of business for all
of First Federal's offices in conjunction with the opening of the new office.
"We will offer all of the products and services our customers have been
accustomed to and we will add a full line of commercial banking services,
including commercial and consumer lending, commercial and personal checking, ATM
machines and cards, check cards, telephone banking, safe deposit boxes and other
services. First Federal/Tyler will bring the same dedication and commitment to
its banking services as we have for the past 75 years in the home lending
business. We want First Federal/Tyler to be the first bank of choice for our
existing and future customers."
The Company's stock is traded under the symbol "ETFS" on the OTC Electronic
Bulletin Board.
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