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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.