DSA Financial Corporation Reports Earnings for the Third Quarter Ended March 31, 2012 and Declares a Quarterly Dividend

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Apr 13, 2012, 04:00 ET

LAWRENCEBURG, Ind., April 13, 2012 /PRNewswire/ -- DSA Financial Corporation (OTCBB: DSFN.OB) announced its financial results for the third fiscal quarter ended March 31, 2012. The Company recorded net earnings of $234,000 or $0.15 per share reflecting an increase of $77,000 as compared to the same quarter ended March 31, 2011, when the Company reported net earnings of $157,000, or $0.10 per share.

The quarter-to-quarter increase in earnings was attributed primarily to a $258,000, or 27.9%, decrease in general, administrative and other expense and a $79,000 or 71.8% increase in other income offset by a $38,000 or 3.6% decrease in net interest income, an increase of $175,000 in provision for losses on loans and a $47,000 or 41.2%, increase in income taxes. General, administrative and other expense was lower due to property acquired through foreclosure writedowns post acquisition showing a decrease of $200,000. Other income was higher due to a $133,000 increase on the gain on sale of loans partially offset by a $26,000 operating loss in our newly formed LLC which owns two properties acquired through foreclosure.

Net earnings for the nine months ended March 31, 2012 were $724,000, or $0.46 per share, an increase of $190,000, or 35.6%, as compared to the nine month period ended March 31, 2011. The increase in earnings was attributed primarily to a $507,000 or 19.9%, decrease in general, administrative and other expense and a $124,000 or 29.7%, increase in other income offset by a $124,000 or 3.9%, decrease in net interest income, an increase of $212,000 or 89.1%, in provision for losses on loans and a $105,000 or 44.5%, increase in income taxes. General, administrative and other expense was lower due to property acquired through foreclosure writedowns post acquisition showing a decrease of $341,000 as compared to the period ended March 31, 2011. Other general and administrative expenses that were lower included compensation and benefits ($25,000), legal fees ($33,000) and FDIC Insurance Premiums ($46,800). Other income was higher due to a $126,600 increase on the gain on sale of loans, a $23,000 gain on the sale of investments and Real Estate Owned losses upon disposition that were $25,500 lower than the quarter ended March 31, 2011.

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 11, 2012 to stockholders of record as of April 27, 2012.

DSA Financial reported total assets of $116.0 million at March 31, 2012, total liabilities of $98.9 million, including deposits of $90.7 million and total stockholders' equity of $17.0 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	2012	2011

Cash and cash equivalents	$ 5,129	$ 4,866
Investment securities	13,448	14,520
Loans receivable	86,751	89,813
Other assets	10,657	10,652
Total assets	$115,985	$119,851

LIABILITIES AND STOCKHOLDERS' EQUITY Deposits	$90,694	$95,165
Advances from the FHLB	6,000	4,000
Other liabilities	2,255	3,877

Total liabilities	98,949	103,042

Stockholders' equity	17,036	16,809
Total liabilities and stockholders' equity	$115,985	$119,851

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

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

	2012	2011	2012	2011

Total interest income	$3,780	$4,273	$1,235	$1,397
Total interest expense	768	1,137	233	357
Net interest income	3,012	3,136	1,002	1,040
Provision for losses on loans	450	238	175	-
Net interest income after provision for losses on loans	2,562	2,898	827	1,040
Other income	542	418	189	110
General, administrative and other expense	2,039	2,546	668	926
Earnings before income taxes	1,065	770	348	224
Income taxes	341	236	114	67

NET EARNINGS	$ 724	$ 534	$ 234	$ 157

EARNINGS PER SHARE - basic and diluted	$.46	$.34	$.15	$.10