Exhibit 99

                       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, Vice Chairman/President/CEO
                                Derrell W. Chapman, Vice President/COO/CFO

Telephone:  (903) 593-1767
Fax:        (903) 593-1094
For immediate release:  July 3, 2000


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                       EAST TEXAS FINANCIAL SERVICES, INC.
               AND GILMER FINANCIAL SERVICES, INC. COMPLETE MERGER

Tyler,  Texas, June 30, 2000, - - - East Texas Financial  Services,  Inc. ("East
Texas") (OTC Bulletin  Board:  ETFS.OB),  the holding  company for First Federal
Savings and Loan  Association  of Tyler ("First  Federal")  today  announced the
completion of the merger of Gilmer Financial Services, Inc. ("Gilmer") into East
Texas and of the  subsequent  merger  of Gilmer  Savings  Bank,  FSB into  First
Federal.  The  transaction  is  valued at  approximately  $5.3  million.  Gilmer
shareholders will receive $26.10 in cash for each share of Gilmer common stock.

"This  acquisition  enables  First Federal to expand in the Gilmer market and it
compliments our existing presence," noted Gerald Free, President and CEO of East
Texas.  "We are  committed to providing the highest  quality  service to our new
Gilmer customers."

East Texas also announced that Jerry  Richardson  will be named a Vice President
of First  Federal and the manager of its Gilmer  division.  Mr.  Richardson is a
native of Gilmer and brings to his  position 22 years of banking  experience  in
the Gilmer area.

In addition to its new Gilmer office,  First Federal  provides  banking services
from  three  full  service  offices  and two loan  origination  offices in Smith
County, Texas.