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, Executive Vice President/COO/CFO
Telephone: (903) 593-1767
Fax: (903) 593-1094
For immediate release: August 2, 2002
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EAST TEXAS FINANCIAL SERVICES, INC.
REPORTS EARNINGS
AND CASH DIVIDEND
Tyler, Texas, August 2, 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 nine months ended June 30, 2002
was $1.5 million or $1.36 per share and $1.34 per share assuming dilution,
compared to $479,000 or $.43 per share and $.43 per share assuming dilution for
the nine months ended June 30, 2001.
For the three month period ended June 30, 2002, the Company reported net income
of $502,000 or $.45 per share and $.44 per share assuming dilution, compared to
$138,000 or $.12 per share and $.12 per share assuming dilution for the three
months ended June 30, 2001.
Net interest income after provision for loan losses increased to $4.7 million
for the nine months ended June 30, 2002, compared to $3.0 million for the nine
months ended June 30, 2001, a $1.7 million or a 54.9% increase. Non-interest
income increased to $863,000 for the nine months ended June 30, 2002, compared
to $639,000 for the nine months ended June 30, 2001, a 35.1% increase. Total
noninterest expense was reported as $3.2 million for the nine months ended June
30, 2002, compared to $2.9 million for the nine months ended June 30, 2001, an
11.3% increase.
Total assets were reported as $219.1 million at June 30, 2002, deposits totaled
$106.7 million, and stockholders' equity was $19.0 million. The Company reported
a book value per share of $16.31 at June 30, 2002, based on 1,162,320
outstanding shares. Shares of Company stock traded between $10.77 and $11.70 per
share during the quarter ended June 30, 2002.
At June 30, 2002, non-performing assets totaled $1.3 million or .60% of total
assets, compared to $1.6 million or .74% of total assets at September 30, 2001.
Non-performing loans equaled $984,000 or .70% 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 .98% of total assets at June 30, 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 June 30, 2002, as 7.47% 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 14.3 % at June 30, 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 August 28, 2002 to
stockholders of record as of August 14, 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
ASSETS June 30, 2002 September 30, 2001
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(Unaudited)
Cash and due from banks $ 1,932,882 $ 2,013,647
Interest-bearing deposits with banks 194,222 2,824,364
Interest-earning time deposits with financial institutions 300,000 600,000
Federal funds sold 0 86,242
Investment securities available-for-sale 503,389 6,843,583
Mortgage-backed securities available-for-sale 22,913,329 27,352,449
Investment securities held-to-maturity (estimated market
value of $10,016,762 at June 30, 2002, and
$8,075,494 at September 30, 2001) 9,734,337 7,765,537
Mortgage-backed securities held-to-maturity (estimated
market value of $32,012,353 at June 30, 2002
and $36,585,979 at September 30, 2001) 31,399,823 35,879,076
Loans receivable, net of allowance for credit losses of $727,943
at June 30, 2002 and $769,225 at September 30, 2001 139,900,384 115,847,396
Accrued interest receivable 1,393,932 1,285,582
Federal Home Loan Bank stock, at cost 4,518,700 4,323,900
Premises and equipment 2,616,935 2,656,988
Foreclosed assets, net 336,222 259,498
Goodwill, net 2,170,381 2,170,381
Mortgage servicing rights 108,339 174,128
Other assets 1,054,688 1,698,338
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Total Assets $ 219,077,563 $ 211,781,109
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LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Noninterest deposits $ 3,755,302 $ 3,319,015
Interest-bearing deposits 102,917,971 112,292,026
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Total deposits 106,673,273 115,611,041
FHLB advances 89,714,994 74,468,248
Advances from borrowers for taxes and insurance 771,866 1,267,900
Federal income taxes
Current 769,417 0
Deferred 515,083 670,706
Accrued expenses and other liabilities 1,670,343 1,849,333
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Total liabilities 200,114,976 193,867,228
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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) 15,550,154 14,199,357
Accumulated other comprehensive income 43,165 345,256
Treasury stock, 722,172 shares at cost (8,867,282) (8,867,282)
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Total stockholder's equity 18,962,587 17,913,881
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Total liabilities and stockholders' equity $ 219,077,563 $ 211,781,109
============= =============
The accompanying notes are an integral part of the consolidated financial
statements.
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three Months Nine Months
Ended June 30, Ended June 30,
2002 2001 2002 2001
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INTEREST INCOME
Loans receivable:
First Mortgage $ 1,605,417 $ 1,620,343 $ 4,763,261 $ 4,921,997
Consumer and other loans 981,884 542,392 2,632,770 1,479,453
Securities available-for-sale:
Investment securities 40,479 157,581 166,652 521,350
Mortgage-backed securities 183,626 503,037 556,294 1,981,169
Securities held-to-maturity:
Investment securities 154,628 176,105 463,888 918,555
Mortgage-backed securities 427,240 389,083 1,450,617 763,079
Deposits with banks: 7,662 43,848 35,191 103,798
------------ ------------ ------------ ------------
Total interest income 3,400,936 3,432,389 10,068,673 10,689,401
------------ ------------ ------------ ------------
INTEREST EXPENSE
Deposits 933,262 1,512,345 3,157,913 4,460,002
FHLB advances 681,464 842,283 2,013,897 3,141,321
------------ ------------ ------------ ------------
Total interest expense 1,614,726 2,354,628 5,171,810 7,601,323
------------ ------------ ------------ ------------
Net interest income before
provision for loan losses 1,786,210 1,077,761 4,896,863 3,088,078
Provision for loan losses 64,490 17,691 175,688 41,330
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Net interest income after
provision for loan losses 1,721,720 1,060,070 4,721,175 3,046,748
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NONINTEREST INCOME
Gain (loss) on sale of interest-earning assets 55,147 51,923 507,320 251,221
Loan origination and commitment fees 31,174 25,344 114,169 67,999
Loan servicing fees (15,696) 5,752 (75,014) 36,669
Other 118,706 101,358 316,734 282,998
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Total noninterest income 189,331 184,377 863,209 638,887
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NONINTEREST EXPENSE
Compensation and benefits 712,168 600,780 2,002,263 1,737,820
Occupancy and equipment 105,969 103,819 327,876 328,522
SAIF deposit insurance premium 4,726 5,195 15,199 15,571
Foreclosed assets, net 36,766 (720) 71,997 (26,374)
Goodwill amortization 0 39,367 0 117,785
Other 264,975 244,427 796,349 714,655
------------ ------------ ------------ ------------
Total noninterest expense 1,124,604 992,868 3,213,684 2,887,979
------------ ------------ ------------ ------------
Income (loss) before provision for income taxes 786,447 251,579 2,370,700 797,656
Income tax expense (benefit) 284,209 113,146 845,555 318,972
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NET INCOME (LOSS) $ 502,238 $ 138,433 $ 1,525,145 $ 478,684
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Earnings per common share $ 0.45 $ 0.12 $ 1.36 $ 0.43
Earnings per common share - assuming dilution 0.44 0.12 1.34 0.43
The accompanying notes are an integral part of the consolidated financial
statements.