DSA Financial Corporation Declares a Quarterly Dividend and Reports Earnings for the Second Quarter Ended December 31, 2018

LAWRENCEBURG, Ind., Jan. 11, 2019 (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 February 11, 2019 to stockholders of record as of January 25, 2019.

DSA Financial also announced its financial results for the second fiscal quarter and the six months ending December 31, 2018. For the second fiscal quarter, the Company recorded net earnings of $184,000 or $0.14 per share which reflected an increase of $124,000 or $0.10 per share, as compared to the $60,000 or $0.04 per share for the same quarter ended December 31, 2017. In addition, the Company recorded net income of $361,000 or $0.27 per share for the six months ending December 31, 2018, which reflected an increase of $104,000 or $0.09 per share, as compared to the six months ending December 31, 2017.

Net earnings for the fiscal quarter ending December 31, 2018 of $184,000 reflected an increase of $124,000, or 206.67%, as compared to net earnings of $60,000 for the quarter ending December 31, 2017. This increase in earnings was primarily attributable to a $41,000 increase in net interest income, and a $240,000 decrease in income taxes partially offset by a $106,000 decrease in other income and a $51,000 increase in general, administrative and other expenses.

Net earnings for the six months ending December 31, 2018 were $361,000, an increase of $104,000, or 40.47%, as compared to the six month period ending December 31, 2017. The increase in earnings was primarily attributed to a $44,000 increase in net interest income and a $290,000 decrease in income taxes offset by a $153,000 decrease in other income and a $67,000 increase in general, administrative and other expenses.

The significant reduction in income taxes for both the quarter and six months ending December 31, 2018 was due to the Tax Cuts and Jobs Act (the “Act”) passed by Congress in December, 2017 reducing the Federal Corporate tax rate to a flat 21% and the related effect to the value of the deferred tax asset. As a result of the Act, in December, 2017, the Company recorded a $214,000 one-time charge to reduce the carrying value of its deferred tax assets.

DSA Financial reported total assets of $122.9 million at December 31, 2018, total liabilities of $107.7 million, including deposits of $96.6 million and total stockholders’ equity of $15.2 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.

DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(unaudited, dollars in thousands except per share data)
						December 31			September 30
ASSETS							2018			2018
Cash and cash equivalents						$	7,410		$	5,294
Investment and mortgage-backed securities							9,891			10,045
Loans receivable							97,588			96,278
Other assets							7,976			7,949
Total assets						$	122,865		$	119,566
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits						$	96,580		$	92,273
Advances from the FHLB							8,500			9,500
Other liabilities							2,597			2,614
Total liabilities							107,677			104,387
Stockholders’ Equity							15,187			15,179
Total liabilities and stockholders’ equity						$	122,864		$	119,566
DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
			Three months ended						Three months ended
			December 31						December 31
			2018			2017			2018			2017
Total interest income			$	2,251		$	1,953		$	1,149		$	974
Total interest expense				569			315			295			161
Net interest income				1,682			1,638			854			813
Provision for losses on loans				10			–			–			–
Net interest income after provision for
losses on loans				1,672			1,638			854			813
Other income				410			563			179			285
General, administrative and other expense				1,603			1,536			790			739
Earnings before income taxes				479			665			243			359
Income taxes				118			408			59			299
NET EARNINGS			$	361		$	257		$	184		$	60
EARNINGS PER SHARE			$	0.27		$	0.18		$	0.14		$	0.04

Contact:
Derrick S. Taylor
Vice President & Chief Financial Officer
[email protected]