September 9th, 2010
(ETFS.OB) Steele Financial Corporation and East Texas Financial Services, Inc. Terminate Definitive Agreement
Posted on 30. Aug, 2010 by PublicWire
(PublicWire.com Finance News Release) Steele Financial Corporation and East Texas Financial Services, Inc. (OTCBB:ETFS) jointly announced that they have terminated their definitive agreement under which SFC was to have acquired ETFS, the parent of First Federal Bank Texas (the “Bank”). The parties decided it was in their mutual best interests to terminate the agreement after SFC informed ETFS that SFC believed ETFS had undergone a material adverse change due to a significant increase in the non-performing assets of the Bank.
Brandon T. Steele, Chairman of Steele Financial Corporation, commented: “We are obviously disappointed that this transaction will not be completed. Economic conditions have made the Bank’s operating environment extraordinarily difficult. Although our definitive agreement has been terminated, I plan to remain a director of ETFS and the Bank, and look forward to continuing to work with the Bank’s management to improve asset quality and operating performance.”
Derrell W. Chapman, President and Chief Executive Officer of ETFS and the Bank, said: “We too are disappointed that this transaction will not occur. While, like many institutions, our performance has suffered due to the current operating environment, our capital position remains strong. The Bank continues to be ‘well-capitalized’ under regulatory capital guidelines, with ratios of total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets and Tier 1 capital to adjusted total assets of 14.14%, 13.16% and 8.69%, respectively. We are fortunate to have Mr. Steele on our Board, as we believe he shares our vision and commitment to community banking and to the enhancement of the value of our franchise.”
First Federal Bank, Texas, a federal savings bank based in Tyler, Texas, was founded in 1923. First Federal Bank Texas operates from four office locations in Tyler and Gilmer, Texas. At June 30, 2010, ETFS had total consolidated assets of $236.4 million.
(ETFS.OB) Steele Financial Corporation and East Texas Financial Services, Inc. Terminate Definitive Agreement
ETFS.OB, ETFS.OTCBB, OTCBB:ETFS, ETFS
Forward Looking Statements
Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “anticipate, “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “potential,” “intend,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the “company to be materially different from those expressed or implied by such forward-looking statements.
For all the latest in small cap news, videos, and information, visit us online at PublicWire.com, or call us, toll free, at 888-843-1412.
(PublicWire.com Finance News Release) Steele Financial Corporation and East Texas Financial Services, Inc. (OTCBB:ETFS) jointly announced that they have terminated their definitive agreement under which SFC was to have acquired ETFS, the parent of First Federal Bank Texas (the “Bank”). The parties decided it was in their mutual best interests to terminate the agreement after SFC informed ETFS that SFC believed ETFS had undergone a material adverse change due to a significant increase in the non-performing assets of the Bank.
Brandon T. Steele, Chairman of Steele Financial Corporation, commented: “We are obviously disappointed that this transaction will not be completed. Economic conditions have made the Bank’s operating environment extraordinarily difficult. Although our definitive agreement has been terminated, I plan to remain a director of ETFS and the Bank, and look forward to continuing to work with the Bank’s management to improve asset quality and operating performance.”
Derrell W. Chapman, President and Chief Executive Officer of ETFS and the Bank, said: “We too are disappointed that this transaction will not occur. While, like many institutions, our performance has suffered due to the current operating environment, our capital position remains strong. The Bank continues to be ‘well-capitalized’ under regulatory capital guidelines, with ratios of total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets and Tier 1 capital to adjusted total assets of 14.14%, 13.16% and 8.69%, respectively. We are fortunate to have Mr. Steele on our Board, as we believe he shares our vision and commitment to community banking and to the enhancement of the value of our franchise.”
First Federal Bank, Texas, a federal savings bank based in Tyler, Texas, was founded in 1923. First Federal Bank Texas operates from four office locations in Tyler and Gilmer, Texas. At June 30, 2010, ETFS had total consolidated assets of $236.4 million.
(ETFS.OB) Steele Financial Corporation and East Texas Financial Services, Inc. Terminate Definitive Agreement
ETFS.OB, ETFS.OTCBB, OTCBB:ETFS, ETFS
Forward Looking Statements
Certain statements in this press release that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “anticipate, “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “potential,” “intend,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the “company to be materially different from those expressed or implied by such forward-looking statements.
For all the latest in small cap news, videos, and information, visit us online at PublicWire.com, or call us, toll free, at 888-843-1412.
