EXHIBIT "99"
EAST TEXAS FINANCIAL SERVICES, INC.
1200 South Beckham o P. O. Box 6910 o Tyler, TX 75711-6910
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, January 28, 1998
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EAST TEXAS FINANCIAL SERVICES, INC.
ANNOUNCES QUARTER END EARNINGS
AND
QUARTERLY CASH DIVIDEND PAYMENT
Tyler, Texas, January 28, 1998, - - - 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
quarter ended December 31, 1997, was $144,304 or $.15 per share, compared to
$183,320 or $.18 per share for the quarter ended December 31, 1996.
Gerald W. Free, Vice Chairman, President and CEO, also announced that the
Company would continue its quarterly cash dividend of $.05 per share, to be paid
on February 25, 1998 to stockholders of record as of February 11, 1998.
"The decline in net income, this quarter as compared to last year, was expected.
It reflects additional expenses associated with the opening of our new loan
office in Lindale and the addition of a new loan officer in our Whitehouse
location," stated Free. "However, we are currently ahead of our projections for
loan originations in the Lindale market and believe we will quickly begin to see
tangible results from our efforts there."
Loans receivable totaled $60.2 million at December 31, 1997, a $3.1 million
increase from the $57.1 million reported at September 30, 1997. "For the three
months ended December 31, 1997 we originated approximately 100 mortgage loans
totaling $8.1 million, compared to 55 loans totaling $5.4 million for the same
quarter in 1996," stated Free. "With a continued period of low interest rates, a
strong East Texas economy and our ability to now offer home equity loans, we
expect loan originations to continue to increase."
Total assets were reported as $120.1 million at December 31, 1997, compared to
$115.9 million at September 30, 1997, the Company's last fiscal year end. Total
stockholders' equity was reported as $21.0 million at December 31, 1997,
compared to $20.9 million at September 30, 1997.
Capital levels for the Company's wholly owned subsidiary, First Federal Savings
and Loan Association of Tyler, were reported at December 31, 1997, as 14.8% 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 38.8% of risk-weighted assets at December 31, 1997, compared to the minimum
8.0% regulatory requirement. At December 31, 1997, the Association was
considered a "well capitalized" institution.
At December 31, 1997, non-performing assets totaled $399,000 or .33% of total
assets as compared to $310,000 or .27% of total assets at September 30, 1997.
Non-performing loans equaled $399,000 or .66% of loans receivable at December
31, 1997, compared to $310,000 or .54% at September 30, 1997. Classified assets
were reported as $819,000 or .68% of total assets at December 31, 1997, compared
to $904,000 or .78% of total assets at September 30, 1997.
East Texas Financial Services, Inc., is the holding company for First Federal
Savings and Loan Association of Tyler, Texas, which presently operates two full
service offices and two loan agency offices in the Tyler area.
At December 31, 1997, the Company had outstanding 1,026,366 shares of stock and
reported a "book value" per share of $20.44. The Company's stock is traded under
the symbol "ETFS" on the NASDAQ National Market System and is listed in most
daily newspapers as "EasTxFnl".
- selected financial data follows -
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
ASSETS December 31, 1997 September 30, 1997
----------------- ------------------
(Unaudited)
Cash and due from banks $ 586,802 $ 508,729
Interest-bearing deposits with banks 2,545,055 6,422,404
Interest earning time deposits with financial institutions 1,467,573 1,565,573
Federal funds sold 2,671,416 753,847
Mortgage-backed securities available-for-sale 6,029,082 4,356,271
Investment securities held-to-maturity (estimated market value
of $26,146,470 at December 31, 1997 and
$23,128,073 at September 30, 1997) 26,077,423 23,058,359
Mortgage-backed securities held-to-maturity (estimated market
value of $16,793,561 at December 31, 1997 and
$18,611,834 at September 30, 1997) 16,303,540 18,151,765
Loans receivable, net of allowance for credit losses
of $272,851 at December 31, 1997 and
September 30, 1997 60,249,463 57,110,029
Accrued interest receivable 922,498 885,383
Federal Home Loan Bank stock, at cost 1,020,900 1,005,700
Premises and equipment 1,094,361 1,123,311
Foreclosed real estate, net of allowances of $-0- 0 0
Deferred income taxes 0 0
Mortgage servicing rights 157,375 149,094
Other assets 967,565 858,147
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Total Assets $ 120,093,053 $ 115,948,612
============= =============
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDIITON
(Continued)
LIABILITIES AND STOCKHOLDERS' EQUITY December 31, 1997 September 30, 1997
----------------- ------------------
(Unaudited)
Liabilities:
Demand deposits $ 3,895,981 $ 1,882,109
Savings and NOW deposits 10,063,904 9,771,266
Other time deposits 77,096,211 76,897,274
------------- -------------
Total deposits 91,056,096 88,550,649
FHLB advances 7,522,000 4,195,000
Advances from borrowers for taxes and insurance 171,878 881,685
Federal income taxes
Current (14,696) 0
Deferred 121,318 127,909
Accrued expenses and other liabilities 255,481 1,314,001
------------- -------------
Total Liabilities 99,112,077 95,069,244
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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 12,196,879 12,196,879
Deferred compensation - RRP shares (300,652) (329,748)
Unearned employee stock ownership plan shares (650,614) (650,614)
Net unrealized gain on securities available-for-sale (4,961) 15,512
Retained earnings (substantially restricted) 13,458,777 13,365,792
Treasury stock, 230,021 shares at cost (3,731,017) (3,731,017)
------------- -------------
Total stockholders' equity 20,980,976 20,879,368
------------- -------------
Total liabilities and stockholders' equity $ 120,093,053 $ 115,948,612
============= =============
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended December 31,
(Unaudited)
1997 1996
---------- ----------
INTEREST INCOME
Loans receivable:
First mortgage loans $1,134,833 $ 967,638
Consumer and other loans 29,305 20,527
Securities available-for-sale:
Mortgage-backed securities 64,390 0
Securities held-to-maturity:
Investment securities 486,080 570,919
Mortgage-backed securities 314,702 421,434
---------- ----------
Total interest income 2,029,310 1,980,518
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INTEREST EXPENSE
Deposits 1,123,670 1,109,672
FHLB advances 62,173 0
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Total interest expense 1,185,843 1,109,672
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Net interest income before provision
for loan losses 843,467 870,846
Provision for loan losses 0 5,000
---------- ----------
Net interest income after provision
for loan losses 843,467 865,846
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NONINTEREST INCOME
Gain (loss) on sales of interest-earning assets 21,437 13,079
Loan origination and commitment fees 22,963 17,219
Loan servicing fees 22,303 31,686
Other 10,712 15,430
---------- ----------
Total noninterest income 77,415 77,414
---------- ----------
EAST TEXAS FINANCIAL SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
Three Months
Ended December 31,
(Unaudited)
1997 1996
---------- ----------
NONINTEREST EXPENSE
Compensation and benefits 492,110 427,655
Occupancy and equipment 48,246 33,864
SAIF deposit insurance premium 14,147 48,051
(Gain) loss on foreclosed real estate 0 58
Other 139,666 139,937
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Total noninterest expense 694,169 649,565
---------- ----------
Income (loss) before provision for income taxes 226,713 293,695
Income tax expense (benefit) 82,409 110,465
---------- ----------
NET INCOME (LOSS) $ 144,304 $ 183,230
========== ==========
Earnings per common share and earnings per
common share - assuming dilution $ 0.15 $ 0.18