EXHIBIT 99
EAST TEXAS FINANCIAL SERVICES, INC.
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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: February 11, 2002
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORT QUARTERLY EARNINGS
Tyler, Texas, February 11, 2002, - - - Today, East Texas Financial Services,
Inc., the holding Company for First Federal Savings and Loan Association of
Tyler reported that consolidated net income for the three months ended December
31, 2001 was $653,166 or $.58 per share, compared to $49,052 or $.04 per share
for the three months ended December 31, 2000.
"We are pleased to report the increase in net income for the current quarter,"
stated President and CEO, Gerald W. Free. "Increased earnings from our consumer
and commercial lending portfolios and additional fees from our consumer and
commercial checking account products accounted for a portion of the additional
net income."
Free continued, "Although approximately $215,000, on after-tax basis, of the
additional net income in the current quarter was due to a one-time gain on the
sale of securities, our core earnings were nevertheless substantially higher
than the same quarter a year ago. The full integration of the June 2000 Gilmer
Savings Bank acquisition and the growth of our S. Broadway office in Tyler have
both added considerably to the increase in net income."
Net interest income after provision for loan losses increased to $1.5 million
for the quarter ended December 31, 2001, compared to $893,000 for the quarter
ended December 31, 2000, a $594,000 or 66.5% increase. Non-interest income,
which included $325,000 of pre-tax one-time gains on the sale of securities,
totaled $538,000, for the quarter ended December 31, 2001, an increase of
$409,000 over the $129,000 reported for the same quarter in 2000. Non-interest
expense was $1.0 million for the three months ended December 31, 2001, compared
to $944,000 for the three months ended December 31, 2000.
Total assets were reported as $209 million at December 31, 2001, deposits
totaled $108 million, and stockholders' equity was $18.3 million. The Company
reported a book value per share of $15.72 at December 31, 2001, based on
1,162,320 outstanding shares. Shares of Company stock traded between $8.77 and
$12.50 per share during the quarter ended December 31, 2001.
At December 31, 2001, non-performing assets totaled $1.1 million or .52% of
total assets, compared to $1.6 million or .74% of total assets at September 30,
2001. Non-performing loans equaled $756,000 or .62% of loans receivable,
compared to $1.3 million or 1.14% of loans receivable at September 30, 2000.
Classified assets were reported as $2.6 million or 1.23% of total assets at
December 31, 2001, compared to $2.7 million or 1.27% of total assets at
September 30, 2001.
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 one loan agency in the Tyler area and one full service
office in Gilmer, Texas.
The Company's stock is traded under the symbol "ETFS" on the OTC Electronic
Bulletin Board.
- financial data follows -
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS December 31, 2001 September 30, 2001
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(Unaudited)
Cash and due from banks $ 1,761,340 $ 2,013,647
Interest-bearing deposits with banks 2,348,318 2,824,364
Interest-earning time deposits with financial institutions 600,000 600,000
Federal funds sold 2,497,781 86,242
Securities available-for-sale 556,510 6,843,583
Securities held-to-maturity (fair value of $9,986,229 at December 31, 2001
and $8,075,494 at September 30, 2001) 9,755,228 7,765,537
Mortgage-backed securities available-for-sale 21,744,717 27,352,449
Mortgage-backed securities held-to-maturity (fair
value of $35,172,139 at December 31, 2001
and $36,585,979 at September 30, 2001) 34,831,990 35,879,076
Loans receivable, net of allowance for credit losses of $721,390
at December 31, 2001 and $769,225 at September 30, 2001 122,680,933 115,847,396
Accrued interest receivable 1,212,026 1,285,582
Federal Home Loan Bank stock, at cost 4,356,500 4,323,900
Premises and equipment 2,628,265 2,656,988
Foreclosed assets, net 333,241 259,498
Goodwill, net 2,170,381 2,170,381
Mortgage servicing rights 143,981 174,128
Other assets 1,173,715 1,698,338
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Total Assets $ 208,794,926 $ 211,781,109
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Non-interest-bearing $ 2,469,205 $ 3,319,015
Interest-bearing 105,442,481 112,292,026
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Total deposits 107,911,686 115,611,041
FHLB advances 77,555,312 74,468,248
Advances from borrowers for taxes and insurance 39,171 1,267,900
Federal income taxes
Current 312,558 0
Deferred 550,937 670,706
Accrued expenses and other liabilities 4,148,825 1,849,333
Total liabilities 190,518,489 193,867,228
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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 12,473,302 12,473,302
Unearned employee stock ownership plan shares (255,597) (255,597)
Retained earnings (substantially restricted) 14,794,407 14,199,357
Accumulated other comprehensive income 112,762 345,256
Treasury stock, 722,172 shares at cost (8,867,282) (8,867,282)
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Total stockholder's equity 18,276,437 17,913,881
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Total liabilities and stockholders' equity $ 208,794,926 $ 211,781,109
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EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended December 31,
(Unaudited)
2001 2000
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INTEREST INCOME
Loans receivable:
First Mortgage $ 1,560,174 $ 1,656,335
Consumer and other loans 782,940 438,518
Securities available for sale:
Investment securities 83,827 198,352
Mortgage-backed securities 268,562 814,520
Securities held to maturity:
Investment securities 155,079 394,790
Mortgage-backed securities 526,963 83,920
Deposits with banks 16,811 33,259
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Total interest income 3,394,356 3,619,694
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INTEREST EXPENSE
Deposits 1,214,415 1,441,400
FHLB advances 683,010 1,268,842
Interest expense other bank borrowings 0 0
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Total interest expense 1,897,425 2,710,242
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Net interest income before
provision for loan losses 1,496,931 909,452
Provision for loan losses 9,759 16,234
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Net interest income after
provision for loan losses 1,487,172 893,218
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NONINTEREST INCOME
Gain (loss) on sale of interest-earning assets 408,534 10,469
Loan origination and commitment fees 49,489 19,899
Loan servicing fees (36,121) 10,194
Other 116,468 88,883
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Total noninterest income 538,370 129,445
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NONINTEREST EXPENSE
Compensation and benefits 636,771 563,474
Occupancy and equipment 107,239 115,339
SAIF deposit insurance premium 5,194 5,324
Foreclosed assets, net 14,996 2,986
Goodwill 0 39,212
Other 257,107 217,721
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Total noninterest expense 1,021,307 944,056
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Income (loss) before provision for income taxes 1,004,235 78,607
Income tax expense (benefit) 351,069 29,555
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NET INCOME (LOSS) $ 653,166 $ 49,052
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Earnings per common share and earnings per
common share - assuming dilution $ .58 $ . 04