DSA Financial Corporation Reports Earnings for the Fourth Quarter and the Fiscal Year Ended June 30, 2011

News provided by

Aug 01, 2011, 05:00 ET

LAWRENCEBURG, Ind., Aug. 1, 2011 /PRNewswire/ -- DSA Financial Corporation (OTCBB: DSFN) announced its consolidated financial results for the fourth quarter and the fiscal year ended June 30, 2011. For the quarter ended June 30, 2011, the Company recorded net earnings of $176,000 or $0.11 per diluted share. For the quarter ended June 30, 2010, the Company reported net earnings of $46,000, or $0.03 per diluted share.

The quarter-to-quarter increase in earnings of $130,000, or 282.6% was attributable primarily to a decrease of $415,000 in provision for losses on loans offset by a decrease in other income of $268,000, and an $80,000 increase in income taxes. The decrease in other income was due to a net loss of $14,000 on the sale of investments and loans during the quarter ended June 30, 2011 versus a $209,000 gain on the sale of investments and loans during the quarter ended June 30, 2010. In addition, losses on the sale of real estate acquired through foreclosure were $59,000 higher in the three month period ended June 30, 2011 as compared to the same period ended June 30, 2010.

Net earnings for the fiscal year ended June 30, 2011 were $710,000, or $0.45 per diluted share, an increase of $126,000, or 21.6%, as compared to net earnings of $584,000, or $0.37 per diluted share for the fiscal year ended June 30, 2010. The year-to-year increase in earnings was attributable primarily to a decrease of $370,000 in provision for losses on loans and an increase in net interest income of $169,000 or 4.2%, offset by a $445,000 or 49.2%, decrease in other income, and an $80,000, or 34.2%, increase in income tax expense. The decrease in other income was primarily due to net gains on the sale of investments and loans that were $311,000 greater in fiscal year 2010 as compared to fiscal year 2011.

DSA Financial reported total assets of $119.9 million at June 30, 2011, total liabilities of $103.0 million, including deposits of $95.2 million and total stockholders' equity of $16.8 million as compared to 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.

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, 2011 and 2010
(unaudited, dollars in thousands except per share data)

	ASSETS	2011	2010

Cash and cash equivalents		$ 4,866	$ 7,670
Investment and mortgage-backed securities		14,520	10,422
Loans receivable		89,813	93,600
Other assets		10,652	12,287

	Total assets	$119,851	$123,979

	LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits		$95,165	$99,057
Advances from the FHLB		4,000	6,500
Other liabilities		3,877	1,762

	Total liabilities	103,042	107,319

Stockholders' equity		16,809	16,660

	Total liabilities and stockholders' equity	$119,851	$123,979

DSA FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (In thousands, except share data)

		Fiscal year ended		Three months ended
		June 30,		June 30,

		2011	2010	2011	2010

Total interest income		$5,632	$6,061	$1,359	$1,476
Total interest expense		1,458	2,056	321	417
	Net interest income	4,174	4,005	1,038	1,059
Provision for losses on loans		721	1,091	135	550
	Net interest income after provision for
	losses on loans	3,453	2,914	903	509
Other income		459	904	41	309
General, administrative and other expense		2,888	3,000	690	774
	Earnings before income taxes	1,024	818	254	44
Income taxes		314	234	78	(2)

	NET EARNINGS	$ 710	$ 584	$ 176	$ 46

	EARNINGS PER SHARE - basic and diluted	$.45	$.37	$.11	$ .03