EXHIBIT "99"
{GRAPHIC-LOGO] 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, President and CEO
Derrell W. Chapman, Vice President/COO/CFO
Telephone: (903) 593-1767
Fax: (903) 593-1094
For immediate release, January 17, 1997
- ------------------------------------------------------------------------------
EAST TEXAS FINANCIAL SERVICES, INC.
ANNOUNCES QUARTER END EARNINGS
Tyler, Texas, January 17, 1997, - - - East Texas Financial Services, Inc.
(NASDAQ: ETFS), today reported that consolidated net income for the three months
ended December 31, 1996, was $183,000 or $.18 per share, compared to $242,000 or
$.21 per share for the three months ended December 31, 1995.
East Texas Financial Services, Inc., is the holding company for First Federal
Savings and Loan Association of Tyler, a 73 year old thrift institution located
in Tyler, Texas. First Federal currently operates two full services offices and
one loan production office in the Tyler area.
"We continue to be pleased with the lending operations of First Federal," stated
Gerald W. Free, President and Chief Executive Officer. "For the quarter ended
December 31, 1996, we originated approximately $5.4 million in real estate
loans, or approximately a 20% increase over the same quarter in 1995." "The
increased loan originations are directly attributable to the strong real estate
market in the Tyler area and the efforts of our lending operations staff,"
stated Free.
Total assets were reported as $113.4 million at December 31, 1996. Stockholders'
equity totaled $21.1 million or approximately 18.6% of total assets. At quarter
end, the Company had outstanding 1,079,285 shares of stock for a book value per
share of approximately $19.54 per share.
- continued -
Serving the Financial Needs of East Texas
At December 31, 1996, non-performing assets equaled $499,000 or .44% of total
assets as compared to $450,000 or .39% of total assets at September 30, 1996,
the Company's latest fiscal year end. Non-performing assets equaled .99% of
loans receivable at December 31, 1996, as compared to .94% at September 30,
1996. Classified assets were reported as $1,049,000 or .92% of total assets at
December 31, 1996, up from $999,000 or .87% of total assets at September 30,
1996.
Capital levels for First Federal Savings and Loan Association of Tyler were
reported, at December 31, 1996, as 15.6% for both tangible and core ratios. The
minimum regulatory requirement for tangible and core capital ratios are 1.5% and
3.0% respectively. The Association's risk-based capital ratio was 44.2% at
quarter end as compared to the minimum 8.0% regulatory requirement.
The Company's stock is traded under the symbol "ETFS" on the Nasdaq National
Market System and is listed in most daily newspapers as "EastTxFnl".
- selected financial data follows -
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
ASSETS December 31, September 30,
1996 1996
------------- ------------
(Unaudited)
Cash and due from banks $ 511,931 $ 704,615
Interest-bearing deposits with banks 3,540,032 4,995,032
Interest earning time deposits with financial 1,565,573 1,663,573
institutions
Federal funds sold 2,554,364 480,285
Investment securities held-to-maturity (estimated
market value of $28,147,500 at December 31, 1996,
and $30,114,685 at September 30, 1996) 28,111,400 30,138,744
Mortgage-backed securities held-to-maturity (estimated
market value of $23,789,397 at December 31, 1996,
and $25,383,579 at September 30, 1996) 23,310,954 24,948,793
Loans receivable, net of allowance for credit
losses of $267,256 at December 31, 1996, and
$289,120 at September 30, 1996 50,289,866 47,925,067
Accrued interest receivable 989,982 930,657
Federal Home Loan Bank stock, at cost 962,400 948,500
Premises and equipment 953,309 970,184
Foreclosed real estate, net of allowances of $-0- 118,868 0
Deferred income taxes 126,258 130,825
Mortgage servicing rights 127,999 119,845
Other assets 272,091 416,816
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Total Assets $113,435,027 $114,372,936
============= ============
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(continued)
LIABILITIES AND STOCKHOLDERS' EQUITY December 31, September 30,
1996 1996
------------- ------------
(Unaudited)
Liabilities:
Demand deposits $ 3,381,715 $ 2,889,861
Savings and NOW deposits 10,960,580 11,099,604
Other time deposits 77,516,758 77,671,666
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Total deposits 91,859,053 91,661,131
Advances from borrowers for taxes and 148,434 917,222
insurance
Federal income taxes
Current 105,898 5,044
Deferred 0 0
Accrued expenses and other liabilities 232,668 858,926
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Total Liabilities 92,346,053 93,442,323
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Stockholders' equity:
Preferred stock, $0.01 par value, 500,000
shares authorized, none outstanding
Common stock, $.01 par value, 5,500,000 shares
authorized, 1,256,387 shares issued 12,564 12,564
Additional paid-in capital 12,112,516 12,112,516
Deferred compensation - RRP shares (417,034) (446,129)
Unearned employee stock ownership plan shares (763,205) (763,206)
Retained earnings (substantially restricted) 12,941,146 12,811,881
Treasury stock, 177,102 shares at cost (2,797,013) (2,797,013)
------------- ------------
Total stockholders' equity 21,088,974 20,930,613
------------- ------------
Total liabilities and
stockholders' equity $113,435,027 $ 114,372,936
============= =============
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended December 31,
(Unaudited)
1996 1995
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INTEREST INCOME
Loans receivable:
First mortgage loans ........................ $ 967,638 $ 865,408
Consumer and other loans .................... 20,527 19,159
Investment securities ......................... 570,919 628,274
Mortgage-backed securities .................... 421,434 561,846
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Total interest income ....................... $1,980,518 $2,074,687
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INTEREST EXPENSE
Deposits ...................................... 1,109,672 1,142,864
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Total interest expense ...................... 1,109,672 1,142,864
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Net interest income before
provision for loan losses ................. 870,846 931,823
Provisions for loan losses ....................... 5,000 0
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Net interest income after
provision for loan losses ................. 865,846 931,823
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NONINTEREST INCOME
Gain (loss) on sales of
interest-earning assets ................... 13,079 27,750
Loan origination and commitment fees .......... 17,219 9,431
Loan servicing fees ........................... 31,686 30,611
Other ......................................... 15,430 21,714
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Total noninterest expense ................... 77,414 89,506
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EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(continued)
Three Months
Ended December 31,
(Unaudited)
1996 1995
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NONINTEREST EXPENSE
Compensation and benefits ..................... 427,655 401,983
Occupancy and equipment ....................... 33,864 39,063
SAIF deposit insurance premium ................ 48,051 57,039
(Gain) loss on foreclosed real estate ......... 58 3,084
Other ......................................... 139,937 139,643
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Total noninterest expense ................... 649,565 640,812
---------- ----------
Income (loss) before provision for income taxes .. 293,695 380,517
Income tax expense (benefit) ..................... 110,465 138,190
NET INCOME (LOSS) ................................ $ 183,230 $ 242,327
========== ==========
Earnings per common share ........................ $ 0.18 $ 0.21