Steele Financial (SFC) has terminated definitive agreement with East Texas Financial Services (ETFS) under which SFC was to have acquired ETFS, the parent of First Federal Bank Texas.
SFC terminated the acquisition agreement because ETFS had undergone a material adverse change due to a significant increase in the non-performing assets of First Federal Bank Texas.
SFC chairman Brandon Steele said that his bank is disappointed that this transaction will not be completed. Economic conditions have made First Federal Bank Texas’s operating environment extraordinarily difficult.
ETFS president and CEO Derrell Chapman said that they too are disappointed that this transaction will not occur. While, like many institutions, the company’s performance has suffered due to the current operating environment.