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 28, 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 April 28, 2000, the Registrant issued for publication the press
release attached as Exhibit "99" announcing earnings for the quarter ended March
31, 2000 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 Sequential
Number Description Page No.
99 Press release, published on April 28, 2000. 6
<PAGE>
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 28, 2000 By: /s/ DERRELL W. CHAPMAN
----------------------
Derrell W. Chapman
Vice President, COO and CFO
EXHIBIT "99"
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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: April 28, 2000
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS EARNINGS AND DECLARES CASH DIVIDEND
Tyler, Texas, April 28, 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
six months ended March 31, 2000, was $146,562 or $0.13 per common share,
compared to $207,410 or $0.15 per common share reported for the same period in
1999.
For the three months ended March 31, 2000, the Company reported net income of
$52,803 or $.05 per share, compared to $57,379 or $.04 per share for the three
months ended March 31, 1999.
Net income for the six months ended March 31, 1999 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 May
24, 2000 to stockholders of record as of May 9, 2000. The annualized dividend
yield is approximately 2.58% based on the most recent market price of $7.75.
Over the past three months, shares of the Company's stock have traded between
$7.00 and $10.00 per share. At March 31, 2000, the Company had 1,162,320 shares
of stock outstanding and a book value per share of approximately $14.13.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported, at March 31, 2000, as 9.765% 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 23.984% at quarter end as compared to the minimum
8.0% regulatory requirement.
At March 31, 2000, non-performing assets totaled $182,000 or 0.12% of total
assets as compared to $768,000 or 0.50% of total assets at September 30, 1999.
Non-performing loans equaled $182,000 or 0.26% of loans receivable at March 31,
2000, compared to $768,000 or 1.14% at September 30, 1999. Classified assets
were reported as $711,000 or 0.49% of total assets at March 31, 2000, 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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EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
ASSETS March 31, 2000 September 30, 1999
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(Unaudited)
<S> <C> <C>
Cash and due from banks $ 1,384,331 $ 1,019,937
Interest-bearing deposits with banks 418,408 974,627
Interest-earning time deposits with financial institutions 1,485,000 2,461,617
Federal funds sold 0 0
Investment securities available-for-sale 6,279,944 5,918,750
Mortgage-backed securities available-for-sale 36,517,765 32,893,809
Investment securities held-to-maturity (estimated market
value of $27,600,405 at March 31, 2000, and
$29,948,866 at September 30, 1999) 28,492,766 30,481,413
Mortgage-backed securities held-to-maturity (estimated
market value of $5,257,439 at March 31, 2000
and $5,949,914 at September 30, 1999) 5,097,182 5,806,975
Loans receivable, net of allowance for credit losses of $277,899
at March 31, 2000 and $270,039 at September 30, 1999 70,668,125 67,250,334
Accrued interest receivable 1,174,723 1,167,245
Federal Home Loan Bank stock, at cost 2,932,200 2,283,000
Premises and equipment 2,575,221 2,607,213
Foreclosed real estate, net of allowance of $-0- 0 0
Mortgage servicing rights 255,152 266,010
Other assets 899,162 593,991
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Total Assets $ 158,179,979 $ 153,724,921
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Noninterest deposits $ 1,992,223 $ 2,021,914
Interest-bearing deposits 81,102,901 85,517,925
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Total deposits 83,095,124 87,539,839
FHLB advances 57,777,064 45,057,877
Notes payable to other banks 0 0
Advances from borrowers for taxes and insurance 348,204 823,755
Federal income taxes
Current (4,356) -0-
Deferred 33,036 108,184
Accrued expenses and other liabilities 507,070 1,775,938
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Total liabilities 141,756,142 135,305,593
</TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C>
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 (38,794) (96,985)
Unearned employee stock ownership plan shares (442,059) (442,059)
Unrealized gain/(loss) available-for-sale securities (net) (343,156) (148,174)
Retained earnings (substantially restricted) 13,699,116 13,675,391
Treasury stock, 722,172 shares at cost (8,867,282) (6,984,857)
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Total stockholder's equity 16,423,837 18,419,328
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Total liabilities and stockholders' equity $ 158,179,979 $ 153,724,921
=============== ================
</TABLE>
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EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Six Months
Ended March 31, Ended March 31,
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------------------- ------------------------------
<S> <C> <C> <C> <C>
INTEREST INCOME
Loans receivable:
First Mortgage $ 1,171,733 $ 1,105,784 $ 2,315,129 $ 2,227,971
Consumer and other loans 164,101 83,109 333,491 159,118
Securities available for sale:
Investment securities 43,304 37,655 282,847 52,190
Mortgage-backed securities 639,370 312,272 1,217,326 576,592
Securities held to maturity:
Investment securities 556,421 417,734 936,541 885,040
Mortgage-backed securities 92,896 138,310 180,898 317,010
Deposits with banks 11,194 50,913 34,815 83,996
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Total interest income 2,679,019 2,145,777 5,301,047 4,301,917
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INTEREST EXPENSE
Deposits 1,016,244 1,045,721 2,037,824 2,129,252
FHLB advances 835,214 305,619 1,563,556 556,837
Interest Expense to other banks 7,291 0 21,979 0
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Total interest expense 1,858,749 1,351,340 3,623,359 2,686,089
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Net interest income before
provision for loan losses 820,270 794,437 1,677,688 1,615,828
Provision for loan losses 402 0 402 0
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Net interest income after
provision for loan losses 819,868 794,437 1,677,286 1,615,828
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NONINTEREST INCOME
Gain(loss) on sale of interest-earning
assets 10,974 28,589 23,182 105,065
Loan origination and commitment fees 7,824 23,450 19,783 47,058
Loan servicing fees 16,415 18,950 31,332 29,733
Gain on foreclosed real estate (445) (2,068) (855) 302
Other 22,903 5,787 44,128 21,249
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Total noninterest income 57,671 74,708 117,570 203,407
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NONINTEREST EXPENSE
Compensation and benefits 496,407 518,609 1,068,510 1,028,684
Occupancy and equipment 131,885 68,687 260,196 114,891
SAIF deposit insurance premium 15,611 13,480 17,702 26,464
Loss on foreclosed real estate 0 0 0 2,069
Other 145,596 171,384 211,181 314,321
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Total noninterest expense 789,499 772,160 1,557,589 1,486,429
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Income (loss) before provision for income
taxes 88,040 96,985 237,267 332,806
Income tax expense (benefit) 35,237 39,606 90,705 125,396
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NET INCOME (LOSS) $ 52,803 $ 57,379 $ 146,562 $ 207,410
============= ============= ============= ==============
Earnings per common share $ .05 $ .04 $ .13 $ .15
Earnings per common share - assuming
dilution .05 .04 .12 .15
</TABLE>
