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, Executive Vice President/COO/CFO
Telephone: (903) 593-1767
Fax: (903) 593-1094
For immediate release: May 7, 2002
________________________________________________________________________________
EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS QUARTERLY EARNINGS
AND CASH DIVIDEND
Tyler, Texas, May 7, 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 six months ended March 31, 2002 was $1.0
million or $.91 per share, compared to $340,000 or $.31 per share for the six
months ended March 31, 2001.
For the three month period ended March 31, 2002, the Company reported net income
of $370,000 or $.33 per share, compared to $291,000 or $.26 per share for the
three months ended March 31, 2001.
Net interest income after provision for loan losses increased to $3.0 million
for the six months ended March 31, 2002, compared to $2.0 million for the six
months ended March 31, 2001, a $1.0 million or 51.0% increase. Non-interest
income increased to $674,000 for the six months ended March 31, 2002, compared
to $455,000 for the six months ended March 31, 2001, a 48.3% increase. Total
noninterest expense was reported as $2.1 million for the six months ended March
31, 2002, compared to $1.9 million for the six months ended March 31, 2001, a
10.2% increase.
Total assets were reported as $211.7 million at March 31, 2002, deposits totaled
$106.7 million, and stockholders' equity was $18.5 million. The Company reported
a book value per share of $15.94 at March 31, 2002, based on 1,162,320
outstanding shares. Shares of Company stock traded between $9.06 and $12.02 per
share during the quarter ended March 31, 2002.
At March 31, 2002, non-performing assets totaled $1.1 million or .51% of total
assets, compared to $1.6 million or .74% of total assets at September 30, 2001.
Non-performing loans equaled $713,000 or .54% of loans receivable, compared to
$1.3 million or 1.14% of loans receivable at September 30, 2001. Classified
assets were reported as $2.2 million or 1.03% of total assets at March 31, 2002,
compared to $2.7 million or 1.27% of total assets at September 30, 2001.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported, at March 31, 2002, as 7.53% for
both Tangible and Tier 1 capital ratios. The minimum regulatory requirements for
Tangible and Tier 1 capital ratios were 1.50% and 4.00 respectively. The
Association's Risk-based capital ratio was 14.9 % at March 31, 2002, compared to
the minimum 8.0% regulatory requirement.
In other matters, The Company announced that the Company would continue its
quarterly cash dividend of $0.05 per share to be paid on May 22, 2002 to
stockholders of record as of May 8, 2002.
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
March 31, 2002 September 30, 2001
-------------- ------------------
(Unaudited)
ASSETS
Cash and due from banks $ 1,972,145 $ 2,013,647
Interest-bearing deposits with banks 1,249,643 2,824,364
Interest-earning time deposits with financial institutions 300,000 600,000
Federal funds sold 426,595 86,242
Investment securities available-for-sale 527,508 6,843,583
Mortgage-backed securities available-for-sale 22,554,703 27,352,449
Investment securities held-to-maturity (estimated market
value of $9,790,540 at March 31, 2002, and
$8,075,494 at September 30, 2001) 9,744,850 7,765,537
Mortgage-backed securities held-to-maturity (estimated
market value of $30,972,950 at March 31, 2002
and $36,585,979 at September 30, 2001) 30,691,165 35,879,076
Loans receivable, net of allowance for credit losses of $723,424
at March 31, 2002 and $769,225 at September 30, 2001 132,380,753 115,847,396
Accrued interest receivable 1,301,126 1,285,582
Federal Home Loan Bank stock, at cost 4,388,700 4,323,900
Premises and equipment 2,606,827 2,656,988
Foreclosed assets, net 361,085 259,498
Goodwill, net 2,170,381 2,170,381
Mortgage servicing rights 123,148 174,128
Other assets 867,086 1,698,338
------------- -------------
Total Assets $ 211,665,715 $ 211,781,109
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Noninterest deposits $ 3,460,751 $ 3,319,015
Interest-bearing deposits 103,288,767 112,292,026
------------- -------------
Total deposits 106,749,518 115,611,041
FHLB advances 83,120,947 74,468,248
Advances from borrowers for taxes and insurance 404,211 1,267,900
Federal income taxes
Current 510,580 0
Deferred 517,175 670,706
Accrued expenses and other liabilities 1,840,759 1,849,333
------------- -------------
Total liabilities 193,143,190 193,867,228
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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) 15,106,032 14,199,357
Accumulated other comprehensive income 47,225 345,256
Treasury stock, 722,172 shares at cost (8,867,282) (8,867,282)
------------- -------------
Total stockholder's equity 18,522,525 17,913,881
------------- -------------
Total liabilities and stockholders' equity $ 211,665,715 $ 211,781,109
============= =============
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months Six Months
Ended March 31, Ended March 31,
2002 2001 2002 2001
----------- ----------- ----------- -----------
INTEREST INCOME
Loans receivable:
First Mortgage $ 1,597,670 $ 1,645,319 $ 3,157,844 $ 3,301,654
Consumer and other loans 867,946 498,543 1,650,886 937,061
Securities available-for-sale:
Investment securities 42,346 165,417 126,173 363,769
Mortgage-backed securities 104,106 663,612 372,668 1,478,132
Securities held-to-maturity:
Investment securities 154,181 347,660 309,260 742,450
Mortgage-backed securities 496,414 290,076 1,023,377 373,996
Deposits with banks 10,718 26,691 27,529 59,950
----------- ----------- ----------- -----------
Total interest income 3,273,381 3,637,318 6,667,737 7,257,012
----------- ----------- ----------- -----------
INTEREST EXPENSE
Deposits 1,010,237 1,506,257 2,224,652 2,947,657
FHLB advances 649,423 1,030,196 1,332,433 2,299,038
----------- ----------- ----------- -----------
Total interest expense 1,659,660 2,536,453 3,557,085 5,246,695
----------- ----------- ----------- -----------
Net interest income before
provision for loan losses 1,613,721 1,100,865 3,110,652 2,010,317
Provision for loan losses 101,438 7,405 111,197 23,639
----------- ----------- ----------- -----------
Net interest income after
provision for loan losses 1,512,283 1,093,460 2,999,455 1,986,678
----------- ----------- ----------- -----------
NONINTEREST INCOME
Gain (loss) on sale of 43,639 188,829 452,173 199,298
interest-earning assets
Loan origination and commitment fees 33,506 22,756 82,995 42,655
Loan servicing fees (23,197) 20,723 (59,318) 30,917
Other 81,560 92,757 198,028 181,640
----------- ----------- ----------- -----------
Total noninterest income 135,508 325,065 673,878 454,510
----------- ----------- ----------- -----------
NONINTEREST EXPENSE
Compensation and benefits 653,324 573,566 1,290,095 1,137,040
Occupancy and equipment 114,668 109,364 221,907 224,703
SAIF deposit insurance premium 5,279 5,052 10,473 10,376
Foreclosed assets, net 20,235 (28,640) 35,231 (25,654)
Goodwill amortization 0 39,206 0 78,418
Other 274,267 252,507 531,374 470,228
----------- ----------- ----------- -----------
Total noninterest expense 1,067,773 951,055 2,089,080 1,895,111
----------- ----------- ----------- -----------
Income (loss) before provision for income 580,018 467,470 1,584,253 546,077
taxes
Income tax expense (benefit) 210,277 176,271 561,346 205,826
----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 369,741 $ 291,199 $ 1,022,907 $ 340,251
=========== =========== =========== ===========
Earnings per common share $ 0.33 $ 0.26 $ 0.91 $ 0.31
Earnings per common share - assuming 0.32 0.26 0.90 0.31
dilution