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)
February 7, 2000
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
incorporation Number)
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 February 7, 2000, the Registrant issued for publication the press
release attached as Exhibit "99" announcing earnings for the quarter ended
December 31, 1999 and the declaration of cash dividend.
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 Description
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99 Press release, published on February 7, 2000.
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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: February 7, 2000 By: /s/ GERALD W. FREE
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Gerald W. Free
Vice Chairman, President and
Chief Executive Officer
EAST TEXAS FINANCIAL SERVICES, INC.
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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: February 7, 2000
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS EARNINGS AND DECLARES CASH DIVIDEND
Tyler, Texas, February 7, 2000, - - - 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
three months ended December 31, 1999, was $93,758 or $0.08 per common share,
compared to $150,031 or $0.11 per common share reported for the same period in
1998.
Net income for the three months ended December 31, 1998 was restated to reflect
an adjustment by the Company's independent auditors at September 30, 1999. Other
noninterest income was decreased by $39,000 and income tax expense was decreased
by $13,260 to reflect the restatement. The restatement was related to the
recovery of a deficiency judgement against a borrower filed in a prior period.
The recovery was reported as other non-interest income at December 31, 1998 and
was restated and added to the Company's general valuation allowance at the
September 30, 1999 audit.
In conjunction with the release of earnings, Mr. Free announced that the Company
would continue its quarterly cash dividend of $0.05 per share to be paid on
February 23, 2000 to stockholders of record as of February 8, 2000. The
annualized dividend yield is approximately 1.67% based on the most recent market
price of $12.00.
Over the past three months, shares of the Company's stock have traded between
$9.25 and $14.50 per share. At December 31, 1999, the Company had 1,162,320
shares of stock outstanding and a book value per share of approximately $14.28.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported, at December 31, 1999, as 11.143%
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 27.539% at quarter end as compared to
the minimum 8.0% regulatory requirement.
At December 31, 1999, non-performing assets totaled $296,000 or 0.19% of total
assets as compared to $768,000 or 0.50% of total assets at September 30, 1999.
Non-performing loans equaled $293,000 or 0.43% of loans receivable at December
31, 1999, compared to $768,000 or 1.14% at September 30, 1999. Classified assets
were reported as $776,000 or 0.49% of total assets at December 31, 1999,
compared to $1.1 million or 0.71% of total assets at September 30, 1999.
East Texas Financial Services, Inc., is the holding company for First Federal
Savings and Loan Association of Tyler, Texas, which presently operates three
full service offices and two loan agencies in the Tyler area.
The Company's stock is traded under the symbol "ETFS" on the OTC Electronic
Bulletin Board.
- selected financial data follows -
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, 1999 September 30, 1999
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(Unaudited)
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ASSETS
Cash and due from banks $ 1,163,132 $ 1,019,937
Interest-bearing deposits with banks 2,937,708 974,627
Interest-earning time deposits with financial institutions 1,779,000 2,461,617
Federal funds sold 0 0
Investment securities available-for-sale 6,402,048 5,918,750
Mortgage-backed securities available-for-sale 37,328,454 32,893,809
Investment securities held-to-maturity (estimated market
value of $27,704,425 at December 31, 1999, and
$29,948,866 at September 30, 1999) 28,487,720 30,481,413
Mortgage-backed securities held-to-maturity (estimated
market value of $5,354,295 at December 31, 1999
and $5,949,914 at September 30, 1999) 5,270,500 5,806,975
Loans receivable, net of allowance for credit losses of $270,084
at December 31, 1999 and $270,039 at September 30, 1999 68,497,448 67,250,334
Accrued interest receivable 1,167,089 1,167,245
Federal Home Loan Bank stock, at cost 2,760,800 2,283,000
Premises and equipment 2,601,483 2,607,213
Foreclosed real estate, net of allowance of $-0- 0 0
Mortgage servicing rights 263,800 266,010
Other assets 996,523 593,991
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Total Assets $ 159,655,705 $ 153,724,921
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Noninterest deposits $ 3,927,984 $ 2,021,914
Interest-bearing deposits 82,408,019 85,517,925
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Total deposits 86,336,003 87,539,839
FHLB advances 54,472,684 45,057,877
Notes payable to other banks 1,500,000 0
Advances from borrowers for taxes and insurance 110,600 823,755
Federal income taxes
Current 43,193 -0-
Deferred 120,458 108,184
Accrued expenses and other liabilities 477,731 1,775,938
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Total liabilities 143,060,669 135,305,593
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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 and 1,162,320 outstanding 18,845 18,845
Additional paid-in-capital 12,397,167 12,397,167
Deferred compensation - RRP shares (67,889) (96,985)
Unearned employee stock ownership plan shares (442,059) (442,059)
Unrealized gain/(loss) available-for-sale securities (net) (148,174) (148,174)
Retained earnings (substantially restricted) 13,704,428 13,675,391
Treasury stock, 722,172 shares at cost (8,867,282) (6,984,857)
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Total stockholder's equity 16,595,036 18,419,328
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Total liabilities and stockholders' equity $ 159,655,705 $ 153,724,921
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<CAPTION>
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended December 31,
(Unaudited)
1999 1998
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INTEREST INCOME
Loans receivable:
First Mortgage $ 1,143,396 $ 1,122,187
Consumer and other loans 169,390 76,009
Securities available for sale:
Investment securities 37,159 14,535
Mortgage-backed securities 577,956 264,320
Securities held to maturity:
Investment securities 582,503 467,306
Mortgage-backed securities 88,002 178,700
Deposits with banks 23,621 33,083
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Total interest income 2,622,027 2,156,140
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INTEREST EXPENSE
Deposits 1,021,580 1,083,531
FHLB advances 728,342 251,218
Interest expense other bank borrowings 14,688 0
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Total interest expense 1,764,610 1,334,749
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Net interest income before
provision for loan losses 857,417 821,391
Provision for loan losses 0 0
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Net interest income after
provision for loan losses 857,417 821,391
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NONINTEREST INCOME
Gain(loss) on sale of interest-earning assets 12,208 76,476
Loan origination and commitment fees 11,959 23,608
Loan servicing fees 14,917 10,783
Gain on foreclosed real estate (410) 2,370
Other 21,225 15,462
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Total noninterest income 59,899 128,699
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NONINTEREST EXPENSE
Compensation and benefits 587,853 510,075
Occupancy and equipment 112,561 72,605
SAIF deposit insurance premium 2,091 12,984
Loss on foreclosed real estate 0 2,069
Other 65,585 116,536
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Total noninterest expense 768,090 714,269
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Income (loss) before provision for income taxes 149,226 235,821
Income tax expense (benefit) 55,468 85,790
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NET INCOME (LOSS) $ 93,758 $ 150,031
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Earnings per common share and earnings per
common share - assuming dilution .08 .11
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