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DSA Financial Corporation Declares a Quarterly Dividend and Reports Earnings for the Third Quarter Ended March 31, 2016

LAWRENCEBURG, Ind., April 08, 2016 (GLOBE NEWSWIRE) -- DSA Financial Corporation (OTCBB:DSFN) -- John P. Young, 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 10, 2016 to stockholders of record as of April 25, 2016.

DSA Financial also announced its financial results for the third fiscal quarter and the nine months ended March 31, 2016. The Company recorded net earnings of $180,000 or $0.11 per share, reflecting a decrease of $21,000 as compared to the same quarter ended March 31, 2015, when the Company reported net earnings of $201,000, or $0.12 per share.

The quarter-to-quarter decrease in earnings was attributed primarily to a $21,000, or 2.4%, decrease in net interest income and an $18,000 or 2.6%, increase in general, administrative and other expense partially offset by a $14,000 or 12.0%, increase in other income. General, administrative and other expense was higher due to legal expenses and increased compliance costs. Other income was higher due to a legal settlement of a prior fiscal year fraud loss of $14,500.

Net earnings for the nine months ended March 31, 2016 were $618,000, or $0.38 per share, a decrease of $110,000, or 15.1%, as compared to the nine month period ended March 31, 2015. The decrease in earnings was attributed to an $110,000 or 4.1%, decrease in net interest income, a $31,000 or 7.0%, decrease in other income, and an increase of $28,000 or 1.4%, in general, administrative and other expense. In addition, $17,000 less in provision for losses on loans was reversed than in the 3 month period ended March 31, 2015. However, income taxes did decrease by $76,000. Other income was lower due to gains on the sale of assets that were $80,000 less than the previous nine month period offset partially by a one-time gain of $28,700 in Bank Owned Life Insurance proceeds. General, administrative and other expense was higher due to increased building and ground maintenance ($19,300), consulting fees ($13,300), legal expenses ($30,800) and fraud losses ($13,500), offset by reduced OREO related expenses ($42,100) and reduced advertising expense ($13,200).

DSA Financial reported total assets of $114.6 million at March 31, 2016, total liabilities of $96.6 million, including deposits of $91.0 million and total stockholders’ equity of $18.1 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)
March 31, June 30,
ASSETS 2016 2015
Cash and cash equivalents $ 5,382 $ 6,173
Investment and mortgage-backed securities 13,221 16,032
Loans receivable 87,524 86,385
Other assets 8,515 8,986
Total assets $ 114,642 $ 117,576
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 91,025 $ 89,171
Advances from the FHLB 3,000 8,000
Other liabilities 2,545 2,245
Total liabilities 96,570 99,416
Stockholders' Equity 18,072 18,160
Total liabilities and stockholders' equity $ 114,642 $ 117,576
DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Nine months ended Three months ended
March 31, March 31,
2016 2015 2016 2015
Total interest income $ 3,042 $ 3,149 $ 1,008 $ 1,027
Total interest expense 484 481 160 158
Net interest income 2,558 2,668 848 869
Provision for losses on loans (43) (60) - (10)
Net interest income after provision for
losses on loans 2,601 2,728 848 879
Other income 412 443 131 117
General, administrative and other expense 2,094 2,066 707 689
Earnings before income taxes 919 1,105 272 307
Income taxes 301 377 92 106
NET EARNINGS $ 618 $ 728 $ 180 $ 201
EARNINGS PER SHARE $ 0.38 $ 0.44 $ 0.11 $ 0.12


CONTACT: Steven Doll 812 537-0940 sdoll@dearbornsavings.com

Source:DSA Financial Corporation