DSA Financial Corporation Reports Earnings for the Third Quarter Ended March 31, 2011 and Declares a Quarterly Dividend

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Apr 15, 2011, 04:00 ET

LAWRENCEBURG, Ind., April 15, 2011 /PRNewswire/ -- DSA Financial Corporation (OTCBB: DSFN.OB) announced its financial results for the third fiscal quarter ended March 31, 2011. The Company recorded net earnings of $157,000 or $0.10 per share reflecting a decrease of $61,000 as compared to the same quarter ended March 31, 2010, when the Company reported net earnings of $218,000, or $0.14 per share.

The quarter-to-quarter decrease in earnings was attributed mainly to a $206,000, or 28.6% increase in general, administrative and other expense, which was primarily due to write-downs of $200,000 related to property acquired through foreclosure, post acquisition. Other income decreased by $80,000 or 42.1%, which was partially offset by a 37,000, or 3.7%, increase in net interest income, a decrease of $150,000 in provision for losses on loans, and a 38,000 decrease in Income taxes. Other income reported in the quarter ended March 31, 2010 included gains on sale of investments of $59,000 versus none in the quarter ended March 31, 2011. Reduced NSF fees due to recent legislation regarding overdraft protection also contributed to the decrease as well.

Net earnings for the nine months ended March 31, 2011 were $534,000, or $0.34 per share, a decrease of $4,000, or 0.7%, as compared to the nine month period ended March 31, 2010. The decrease in earnings was attributed primarily to a $320,000 or 14.4% increase in general, administrative and other expense, a $177,000 or 29.7%, decrease in other income, offset by a $190,000 or 6.4%, increase in net interest income, and a decrease of $303,000 or 56.0%, in provision for losses on loans. Other income reported in the nine month period ended March 31, 2010 included gains on sale of investments of $137,000 versus none in the nine month period ended March 31, 2011. Reduced NSF fees due to recent legislation regarding overdraft protection reduced other income by $30,000. General, administrative and other expense was higher primarily due to write-downs of $348,000 related to property acquired through foreclosure, post acquisition.

In addition, Edward L. Fischer, President and Chief Executive Officer of DSA Financial, announced today that the Company's board of directors has declared a dividend on its common stock of $0.105 per share. The dividend is payable on May 6, 2011 to stockholders of record as of April 29, 2011.

DSA Financial reported total assets of $123.8 million at March 31, 2011, total liabilities of $107.2 million, including deposits of $101.2 million and total stockholders' equity of $16.6 million.

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

DSA FINANCIAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (In thousands) (Unaudited)

	March 31,	June 30,
ASSETS	2011	2010

Cash and cash equivalents	$ 3,836	$7,670
Investment securities	17,882	10,422
Loans receivable	89,833	93,600
Other assets	12,282	12,472

Total assets	$123,833	$124,164

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits	$101,231	$99,057
Advances from the FHLB	4,000	6,500
Other liabilities	2,038	1,947

Total liabilities	107,269	107,504

Stockholders' equity	16,564	16,660

Total liabilities and stockholders' equity	$123,833	$124,164

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

	Nine months ended		Three months ended
	March 31,		March 31,

	2011	2010	2011	2010

Total interest income	$4,273	$4,585	$1,397	$1,494
Total interest expense	1,137	1,639	357	491
Net interest income	3,136	2,946	1,040	1,003
Provision for losses on loans	238	541	-	150
Net interest income after provision for losses on loans	2,898	2,405	1,040	853
Other income	418	595	110	190
General, administrative and other expense	2,546	2,226	926	720
Earnings before income taxes	770	774	224	323
Income taxes	236	236	67	105

NET EARNINGS	$ 534	$ 538	$ 157	$ 218

EARNINGS PER SHARE - basic and diluted	$.34	$.34	$.10	$.14