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, Vice Chairman/President/CEO
Derrell W. Chapman, Vice President/COO/CFO
Telephone: (903) 593-1767
Fax: (903) 593-1094
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EAST TEXAS FINANCIAL SERVICES, INC.
ANNOUNCES YEAR END EARNINGS
Tyler, Texas, December 1, 1997, - - - East Texas Financial Services, Inc.
(NASDAQ: ETFS), the holding company for First Federal Savings and Loan
Association of Tyler, Texas, today reported that consolidated net income for the
fiscal year ended September 30, 1997, was $766,775 or $.78 per share, based on
980,239 weighted average shares outstanding for the year, compared to net income
of $457,876 or $.42 per share for the year ended September 30, 1996.
Total assets of the Company were reported as $115.9 million at September 30,
1997, compared to $114.4 million at September 30, 1996. Investment and
mortgage-backed securities totaled $23.1 million and $22.5 million,
respectively, at September 30, 1997. Loans receivable totaled $57.1 million at
year end, an increase of $9.2 million or approximately 19.2% from the $47.9
million reported at September 30, 1996.
"We were pleased with the continued success of our lending efforts in 1997,"
stated Vice Chairman and CEO Gerald W. Free, "the opening of our new loan agency
in Lindale helped our lending efforts and with anticipated economic growth in
that area, we expect increased lending activity from that location. We are also
expecting additional lending activity from the addition of a full time lending
officer at our Whitehouse location."
Stockholders' equity totaled $20.9 million at September 30, 1997, or 18.0% of
total assets, unchanged from the $20.9 million at September 30, 1996. During the
fiscal year ended September 30, 1997, the Company repurchased 53,964 shares of
treasury stock at an average price of $17.63 per share and ended the year with
1,026,366 shares outstanding. At year end, the Company owned 230,021 shares of
treasury stock at an average price of $16.22 per share. Shares of the Company's
stock closed at $20.50 per share at September 30, 1997, compared to a close of
$15.50 at September 30, 1996. For the year ended September 30, 1997, the Company
reported total share volume of 739,000 shares.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported at year end as 15.2% for both
tangible and core capital ratios, well in excess of the minimum required levels
of 1.5% and 3.0% respectively. The Association's risk-based capital ratio was
40.2% of risk-weighted assets at September 30, 1997, as compared to the minimum,
8.0% regulatory requirement. At year end, the Association was considered a
"well-capitalized" institution.
For the year ended September 30,1997, total interest income was reported as $7.9
million, compared to $8.1 million for the year ended September 30, 1996.
Interest expense totaled $4.5 million for the year ended September 30, 1997,
unchanged from the $4.5 million for 1996. Net interest income after provisions
for loan losses was reported as $3.4 million, compared to $3.6 million for the
prior year. The Company reported a net interest margin on interest earning
assets of 3.12% for the year ended September 30, 1997, compared to 3.16% for
1996.
Total non-interest expenses were reported as $2.5 million for the year ended
September 30, 1997, compared to $3.2 million for the year ended September 30,
1996.
At September 30, 1997, non-performing assets totaled $310,000 or .27% of total
assets, compared to $450,000 or .39% of assets at September 30, 1996.
Non-performing loans to total loans receivable equaled .54% at September 30,
1997, compared to .94% at September 30, 1996. Classified assets were reported as
$904,000 at year end, compared to $999,000 at September 30, 1996.
East Texas Financial Services, Inc., is the holding company for 74 year old
First Federal Savings and Loan Association of Tyler, Texas. First Federal
operates two full service offices and two loan agencies in the Tyler area.
The Company's stock is traded on the NASDAQ National Market System and is listed
in most daily newspapers as "EastTxFnl".
Except for the historical information contained herein, the matters discussed in
the press release may be deemed to be forward-looking statements that involve
risks and uncertainties, including the acceptance of new products, the impact of
competitive products and pricing, and the other risks detailed from time to time
in the Company's SEC reports, including the report on Form 10-KSB, for the year
ended September 30, 1997. Actual strategies and results in future periods may
differ materially from those currently expected. These forward-looking
statements represent the Company's judgment as of the date of this release. The
Company disclaims, however, any intent or obligation to update these
forward-looking statements.
- selected financial data follows -
Selected Financial Data
(Dollars in Thousands, except share data) 1997 1996 1995 1994 1993
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At September 30,
Total assets $ 115,949 $ 114,373 $ 117,077 $ 114,935 $ 115,728
Loans receivable, net
Held for sale 0 0 0 0 9,312
Held in portfolio 57,110 47,925 41,760 35,337 28,683
Investment securities - held-to-maturity 23,058 30,139 30,263 0 26,985
Mortgage-backed securities - available for sale 4,356 0 0 0 0
Mortgage-backed securities - held-to-maturity 18,152 24,949 33,741 0 37,194
Deposits 88,551 90,768 92,474 102,200 102,349
Stockholders' equity 20,879 20,931 23,146 11,458 12,217
Common shares outstanding 1,026,366 1,079,285 1,256,387 N.A. N.A.
Book value per share 20.34 19.39 18.42 N.A. N.A.
For The Year Ended September 30,
Net interest income $ 3,419 $ 3,552 $ 3,658 $ 3,040 $ 2,967
Provision for loan losses 5 0 0 121 61
Other operating income 302 371 299 (2,118) 705
Operating expenses 2,523 3,200 2,335 1,981 1,700
Net income 767 458 1,071 (759) 1,158
Selected Financial Ratios
Return on average assets 0.67 % 0.40 % 0.92 % (0.66) % 1.00 %
Return on average equity 3.67 2.08 5.47 (6.41) 9.95
Interest rate spread (average) 2.21 2.27 2.49 2.33 2.32
Net interest margin 3.12 3.16 3.21 2.67 2.66
Ratio of interest-earning assets to interest-
bearing liabilities 122.29 122.23 119.13 110.08 109.61
Operating expenses to average assets 2.19 2.77 2.01 1.72 1.47
Efficiency ratio 69.24 84.10 59.70 61.70 50.70
Net interest income to operating expenses 1.35 x 1.11 x 1.57 x 1.47 x 1.71 x
Asset Quality Ratios
Non-performing assets to total assets 0.27 % 0.39 % 0.34 % 0.27 % 0.45 %
Non-performing loans to total loans receivable 0.54 0.94 0.95 0.87 1.38
Allowance for loan losses to non-performing loans 88.06 64.22 74.75 97.72 34.48
Allowance for loan losses to total loans 0.48 0.60 0.71 0.85 0.48
Allowance for loan losses to total assets 0.24 0.25 0.25 0.26 0.16
Regulatory Capital Ratios (Association only)
Total capital to total assets 15.21 % 15.39 % 14.40 % 9.97 % 10.56 %
Tangible capital ratio 15.20 15.30 14.40 9.97 10.56
Core capital ratio 15.20 15.30 14.40 9.97 10.56
Risk-based capital ratio 40.22 44.23 43.44 31.06 37.32
Serving the Financial Needs of East Texas