A group of investors is pressuring Tyler, Tex.-based East Texas Financial Services to improve its performance or sell, according to a Securities and Exchange Commission filing.
The six investors, who include William Duncan Vaughan, a former president of First National Bank of Paris, Tex., together control 10.19% of East Texas' shares.
The shareholders said in the SEC filing that East Texas' lackluster performance is hurting its stock price. Return on assets slipped to 0.36% at March 31, down from 0.46% at midyear 1998 and 0.67% at June 30, 1997. Return on equity also fell, to 2.30% for the first quarter, down 15% from last June 30.
To improve, the $134 million-asset thrift should consider naming new directors to the board, hiring new management, or selling to a third party or new investor group, the dissidents said.
Gerald W. Free, East Texas' chief executive officer, did not return calls seeking comment.