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, Vice President/COO/CFO

Telephone:        (903) 593-1767
Fax:              (903) 593-1094

For immediate release, August 23, 1999

- ----------------------------------------------------------------------------



                       EAST TEXAS FINANCIAL SERVICES, INC.
                ANNOUNCES COMPLETION OF STOCK REPURCHASE PROGRAM


Tyler, Texas, August 23, 1999, - - - East Texas Financial Services, Inc. (ETFS),
today announced the completion of its stock repurchase program. On June 8, 1999,
the Company  announced  its  intention to  repurchase,  in the open market up to
100,000 shares of its common stock.  Today, the Company announces the completion
of the repurchase of all 100,000 shares of the stock at purchase  prices ranging
from  $14.25 per share to $14.875  per share.  The  repurchased  shares  will be
placed into treasury stock and be used for general corporate purposes, including
the issuance of shares under the  Company's  stock option plan.  The Company now
has 1,294,420 shares outstanding.

In other matters,  the Company announced the date for its next annual meeting of
Stockholders was set for January 26, 2000 at the Company Offices located at 1200
S. Beckham Avenue in Tyler and that the record date for voting on matters at the
meeting was set for December 8, 1999.


                                     - END -