FOR IMMEDIATE RELEASE
Date:  September 20, 1996
For Information contact:
      Gary P. Cooper
      at (903) 843-5525


                        GILMER FINANCIAL SERVICES
                   ANNOUNCES STOCK REPURCHASE PROGRAM



     GILMER, TEXAS, September 20, 1996 - Gilmer Financial Services, Inc., the
holding company for Gilmer Savings Bank, FSB, announced its intention today to
repurchase approximately 5% of its outstanding shares of common stock in the
open market over the next twelve months.  The shares will be purchased at
prevailing market prices from time to time depending upon market conditions.

     Gary P. Cooper, President and Chief Executive Officer of the Company,
indicated that the Board of Directors approved the repurchase program in view
of the current price level of the Company's common stock and the strong
capital position of Gilmer Savings Bank.  Mr. Cooper stated that "We believe
that the repurchase of our shares represents an attractive investment
opportunity which will benefit the Company and its stockholders.  The
repurchased shares will become treasury shares and will be used for the
general corporate purposes, including the issuance of shares under the
Company's Recognition and Retention Plan and in connection with the exercise
of stock options."

     [The repurchase program will be executed through Friedman, Billings,
Ramsey & Company, Inc., Potomac Tower, 1001 Nineteenth St. North, Arlington,
Virginia  22209].

     Gilmer Financial Services, Inc., operates through one office in Upshur
County, Texas.  As of June 30, 1996, the Company had assets of $39.1 million,
deposits of $25.5 million and stockholders' equity of $3.9 million.