DSA Financial Corporation Reports Earnings for the Fourth Quarter and the Fiscal Year Ended June 30, 2011

LAWRENCEBURG, Ind., Aug. 1, 2011 /PRNewswire/ — DSA Financial Corporation
(OTCBB: DSFN) announced its consolidated financial results for the fourth
quarter and the fiscal year ended June 30, 2011. For the quarter ended June 30,
2011, the Company recorded net earnings of $176,000 or $0.11 per diluted share.
For the quarter ended June 30, 2010, the Company reported net earnings of
$46,000, or $0.03 per diluted share.

The quarter-to-quarter increase in earnings of $130,000, or 282.6% was
attributable primarily to a decrease of $415,000 in provision for losses on
loans offset by a decrease in other income of $268,000, and an $80,000 increase
in income taxes. The decrease in other income was due to a net loss of $14,000
on the sale of investments and loans during the quarter ended June 30, 2011
versus a $209,000 gain on the sale of investments and loans during the quarter
ended June 30, 2010. In addition, losses on the sale of real estate acquired
through foreclosure were $59,000 higher in the three month period ended June 30,
2011 as compared to the same period ended June 30, 2010.

Net earnings for the fiscal year ended June 30, 2011 were $710,000, or $0.45 per
diluted share, an increase of $126,000, or 21.6%, as compared to net earnings of
$584,000, or $0.37 per diluted share for the fiscal year ended June 30, 2010.
The year-to-year increase in earnings was attributable primarily to a decrease
of $370,000 in provision for losses on loans and an increase in net interest
income of $169,000 or 4.2%, offset by a $445,000 or 49.2%, decrease in other
income, and an $80,000, or 34.2%, increase in income tax expense. The decrease
in other income was primarily due to net gains on the sale of investments and
loans that were $311,000 greater in fiscal year 2010 as compared to fiscal year
2011.

DSA Financial reported total assets of $119.9 million at June 30, 2011, total
liabilities of $103.0 million, including deposits of $95.2 million and total
stockholders’ equity of $16.8 million as compared to total assets of $124.0
million at June 30, 2010, total liabilities of $107.3 million, including
deposits of $99.1 million and total stockholders’ equity of $16.7 million.

DSA Financial Corporation is the holding company for Dearborn Savings Bank, a
federally chartered savings institution headquartered in Lawrenceburg, Indiana.
Dearborn Savings Bank operates through its main office and one branch office
located in Lawrenceburg, Indiana.

DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
June 30, 2011 and 2010
(unaudited, dollars in thousands except per share data)

ASSETS 2011 2010

Cash and cash equivalents $4,866 $7,670
Investment and mortgage-backed
securities 14,520 10,422
Loans receivable 89,813 93,600
Other assets 10,652 12,287
—— ——

Total assets $119,851 $123,979
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LIABILITIES AND STOCKHOLDERS’
EQUITY

Deposits $95,165 $99,057
Advances from the FHLB 4,000 6,500
Other liabilities 3,877 1,762
—– —–

Total liabilities 103,042 107,319

Stockholders’ equity 16,809 16,660
—— ——

Total liabilities and
stockholders’ equity $119,851 $123,979
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DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)

Fiscal year Three months
ended ended
June 30, June 30,

2011 2010 2011 2010

Total interest income $5,632 $6,061 $1,359 $1,476
Total interest expense 1,458 2,056 321 417
—– —– — —
Net interest income 4,174 4,005 1,038 1,059
Provision for losses on loans 721 1,091 135 550
— —– — —
Net interest income after provision
for
losses on loans 3,453 2,914 903 509
Other income 459 904 41 309
General, administrative and other
expense 2,888 3,000 690 774
—– —– — —
Earnings before income taxes 1,024 818 254 44
Income taxes 314 234 78 (2)
— — — —

NET EARNINGS $710 $584 $176 $46
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EARNINGS PER SHARE -basic and diluted $.45 $.37 $.11 $.03
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SOURCE DSA Financial Corporation