DSA Financial Corporation Reports Earnings for the Fourth Quarter and the Fiscal Year Ended June 30, 2010

LAWRENCEBURG, Ind., July 20 /PRNewswire-FirstCall/ -- DSA Financial Corporation (OTC Bulletin Board: DSFN) announced its consolidated financial results for the fourth quarter and the fiscal year ended June 30, 2010. For the quarter ended June 30, 2010, the Company recorded net earnings of $46,000 or $0.03 per diluted share. For the quarter ended June 30, 2009, the Company reported net earnings of $72,000, or $0.05 per diluted share.

The quarter-to-quarter decrease in earnings of $26,000 was attributable primarily to an increase of $400,000 or 266.7%, in provision for losses on loans offset by an increase in net interest income of $180,000, or 20.5%, a $149,000 or 93.1%, increase in other income, an $11,000 decrease in income taxes, and a $34,000 or 4.2%, decrease in general, administrative and other expense. The increase in other income was due to net gains on the sale of investments, loans and foreclosed property of $177,000 partially offset by a decrease in mortgage loan related fee income of $12,000 and a $15,000 increase in mortgage servicing rights amortization.

Net earnings for the fiscal year ended June 30, 2010 were $584,000, or $0.37 per diluted share, a decrease of $77,000, or 11.6%, as compared to net earnings of $661,000, or $0.42 per diluted share for the fiscal year ended June 30, 2009. The year-to-year decrease in earnings was attributable primarily to an increase of $808,000 or 285.5%, in provision for losses on loans and an increase in general, administrative and other expense of $101,000, or 3.5%, mostly offset by an increase in net interest income of $503,000 or 14.4%, a $270,000 increase in other income, or 42.6%, and an $59,000, or 20.1%, decrease in income tax expense. The increase in other income was primarily due to net gains on the sale of investments, loans and foreclosed property of $270,000.

DSA Financial reported total assets of $124.0 million at June 30, 2010, total liabilities of $107.3 million, including deposits of $99.1 million and total stockholders' equity of $16.7 million as compared to total assets of $128.4 million at June 30, 2009, total liabilities of $111.7 million, including deposits of $99.5 million and total stockholders' equity of $16.7 million.

DSA Financial Corporation is the holding company for Dearborn Savings Bank, a federally chartered savings institution headquartered in Lawrenceburg, Indiana. Dearborn Savings Bank operates through its main office and one branch office located in Lawrenceburg, Indiana.


DSA FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

June 30, 2010 and 2009

(unaudited, dollars in thousands except per share data)




ASSETS

2010

2009




Cash and cash equivalents

$  7,670

$  8,290

Investment and mortgage-backed securities

10,422

11,489

Loans receivable

93,600

98,562

Other assets

12,287

10,074




Total assets

$123,979

$128,415




LIABILITIES AND STOCKHOLDERS' EQUITY



Deposits

$99,057

$99,464

Advances from the FHLB

6,500

10,500

Other liabilities

1,762

1,754




Total liabilities

107,319

111,718




Stockholders' equity

16,660

16,697




Total liabilities and stockholders' equity

$123,979

$128,415



DSA FINANCIAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(In thousands, except share data)







Fiscal year ended

June 30,

Three months ended

June 30,








2010

2009

2010

2009






Total interest income

$6,061

$6,827

$1,476

$1,662

Total interest expense

2,056

3,325

417

783

Net interest income

4,005

3,502

1,059

879

Provision for losses on loans

1,091

283

550

150

Net interest income after provision for





losses on loans

2,914

3,219

509

729

Other income

904

634

309

160

General, administrative and other expense

3,000

2,899

774

808

Earnings before income taxes

818

954

44

81

Income taxes

234

293

(2)

9






NET EARNINGS

$  584

$  661

$  46

$  72






EARNINGS PER SHARE - basic and diluted

$.37

$.42

$.03

$  .05



SOURCE DSA Financial Corporation



RELATED LINKS
http://www.dearbornsavings.com

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