DSA Financial Corporation Reports Earnings for the Third Quarter Ended March 31, 2014 and Declares a Quarterly Dividend

LAWRENCEBURG, Ind., April 11, 2014 (GLOBE NEWSWIRE) -- DSA Financial Corporation (OTCBB:DSFN) announced its financial results for the third fiscal quarter ended March 31, 2014. The Company recorded net earnings of $210,000, or $0.13 per share, reflecting a decrease of $17,000 as compared to the same quarter ended March 31, 2013, when the Company reported net earnings of $227,000, or $0.14 per share.

The quarter-to-quarter decrease in earnings was attributed primarily to a $89,000, or 12.7%, increase in general, administrative and other expense, offset primarily by a $35,000, or 25.4%, increase in other income and a $40,000 decrease in provision for losses on loans. General, administrative and other expense was higher due to a $91,000 increase in operating expenses in our subsidiary which owns two properties acquired through foreclosure. Other income was higher due to a $65,000 insurance claim offset by $29,000 decrease on the gain on sale of loans.

Net earnings for the nine months ended March 31, 2014 were $711,000, or $0.44 per share, a decrease of $114,000, or 13.8%, as compared to the nine month period ended March 31, 2013. The decrease in earnings was attributed primarily to a $67,000, or 2.3%, decrease in net interest income, a $244,000, or 36.0%, decrease in other income and a $42,000, or 1.9%, increase in general, administrative and other expense partially offset by a decrease of $179,000 in provision for losses on loans and a $60,000, or 14.6%, decrease in income taxes. General, administrative and other expense was higher due to property acquired through foreclosure expenses showing an increase of $54,000 as compared to the period ended March 31, 2013. Other income was lower due to a $294,000 decrease on the gain on sale of loans and a $43,000 decrease on the gain on sale of Other Real Estate Owned. These decreases were partially offset by the aforementioned $65,000 insurance claim mentioned above.

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 $0.11 per share. The dividend is payable on May 9, 2014 to stockholders of record as of April 25, 2014.

DSA Financial reported total assets of $117.9 million at March 31, 2014, total liabilities of $100.1 million, including deposits of $88.7 million and total stockholders' equity of $17.8 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
(unaudited, dollars in thousands except per share data)
ASSETS March 31,
2014
June 30,
2013
Cash and cash equivalents $ 5,406 $ 5,733
Investment and mortgage-backed securities 15,633 12,852
Loans receivable 87,098 87,084
Other assets 9,800 9,836
Total assets $ 117,937 $ 115,505
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 88,661 $ 88,579
Advances from the FHLB 9,000 7,000
Other liabilities 2,456 2,278
Total liabilities 100,117 97,857
Stockholders' Equity 17,820 17,648
Total liabilities and stockholders' equity $ 117,937 $ 115,505
DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Nine months ended
March 31,
Three months ended
March 31,
2014 2013 2014 2013
Total interest income $ 3,297 $ 3,402 $ 1,093 $ 1,111
Total interest expense 515 553 163 171
Net interest income 2,782 2,849 930 940
Provision for losses on loans (80) 99 -- 40
Net interest income after provision for losses on loans 2,862 2,750 930 900
Other income 434 678 173 138
General, administrative and other expense 2,234 2,192 791 702
Earnings before income taxes 1,062 1,236 312 336
Income taxes 351 411 102 109
NET EARNINGS $ 711 $ 825 $ 210 $ 227
EARNINGS PER SHARE $ 0.44 $ 0.52 $ 0.13 $ 0.14

CONTACT: Edward Fischer, President and Chief Executive Officer 812 537-0940Source:DSA Financial Corporation