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.

SOURCE DSA Financial Corporation