DSA Financial Corporation Amends Previously Reported Earnings for the Second Quarter Ended December 31, 2017

LAWRENCEBURG, Ind., Jan. 24, 2018 (GLOBE NEWSWIRE) -- DSA Financial Corporation (OTCBB:DSFN) -- DSA Financial previously announced its financial results on January 10, 2018. Further regulatory guidance was issued on January 18, 2018 addressing provisions made in the Tax Cuts and Jobs Act (the “Act”), which caused the Company to amend its financial results for the second fiscal quarter and the six months ended December 31, 2017 to account for the reduction in the Federal Corporate tax rate to a flat 21% and the related effect to the value of the deferred tax asset.

The Company recorded net earnings of $60,000 or $0.04 per share which reflected a decrease of $144,000 or $0.09 per share, as compared to the $204,000 or $0.13 per share for same quarter ended December 31, 2016. In addition, the Company recorded net income of $257,000 or $0.18 per share for the six month period ended December 31, 2017, which reflected a decrease of $150,000, or $0.07 per share, as compared to the six month period ended December 31, 2016.

Net income for the quarter and the six months ended December 31, 2017 was negatively affected as the Company recorded a $214,000, or $0.15 per share, one-time charge for the second quarter 2018 to reduce the carrying value of its deferred tax assets due to the Act. The Act includes a number of changes in existing tax law impacting businesses including, among other things, a permanent reduction in the corporate income tax rate from 35% to 21%, which took effect on January 1, 2018. The reduction in the carrying value of the deferred tax assets is subject to adjustment in future periods.

Net income for the quarter and the six months ended December 31, 2017 was positively affected as the Company recorded a $45,000, or $0.03 per share, one-time charge for the second quarter 2018 to reduce the current year tax expense due to the Act.

DSA Financial reported total assets of $113.1 million at December 31, 2017, total liabilities of $97.2 million, including deposits of $87.0 million and total stockholders’ equity of $15.9 million.

This announcement does not affect the dividend for this quarter announced on January 10, 2018, for shareholders on record as of January 26, 2018, and payable on February 12, 2018.

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.

DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited, dollars in thousands except per share data)
December 31 September 30
ASSETS 2017 2017
Cash and cash equivalents $ 2,553 $ 3,384
Investment and mortgage-backed securities 15,390 16,701
Loans receivable 86,875 87,902
Other assets 8,309 8,519
Total assets $ 113,127 $ 116,506
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits $ 86,997 $ 90,584
Advances from the FHLB 7,500 6,000
Other liabilities 2,718 3,068
Total liabilities 97,215 99,652
Stockholders' Equity 15,912 16,854
Total liabilities and stockholders' equity $ 113,127 $ 116,506
DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
Six months ended Three months ended
December 31 December 31
2017 2016 2017 2016
Total interest income $ 1,953 $ 2,063 $ 974 $ 1,031
Total interest expense 315 364 161 183
Net interest income 1,638 1,699 813 848
Provision for losses on loans - - - -
Net interest income after provision for losses on loans 1,638 1,699 813 848
Other income 563 362 285 182
General, administrative and other expense 1,536 1,429 739 704
Earnings before income taxes 665 632 359 326
Income taxes 408 225 299 122
NET EARNINGS $ 257 $ 407 $ 60 $ 204
EARNINGS PER SHARE $ 0.18 $ 0.25 $ 0.04 $ 0.13

Contact:
Derrick S. Taylor
Vice President & Chief Financial Officer
dtaylor@dearbornsavings.com

Source:DSA Financial Corporation