East Texas Financial Services, Inc. (“ETFS”) (OTCBB:FFBT) announced that the closing date for its merger with Prosperity Bancshares, Inc. (“Prosperity”) has been delayed due to a lawsuit filed by a Company stockholder challenging the results of the stockholder vote at the special meeting of stockholders. ETFS and Prosperity announced the merger on December 8, 2011 and stockholders approved the merger proposal on April 18, 2012.
President and CEO, Derrell W. Chapman, CPA, stated, “We are disappointed that this action has been taken and that the stockholders that voted in favor of this transaction must now wait to see if the merger can be completed. We are working as diligently as possible to resolve the issue and we hope to do so as quickly as possible but as a result of the lawsuit the closing date of the merger is uncertain at this time.”
ETFS, through its wholly owned subsidiary First Federal Bank Texas, operates four banking centers in Tyler and Gilmer, Texas.
Derrell W. Chapman, 903-593-1767
President and CEO