DSA Financial Corporation Reports Earnings for the Second Quarter Ended December 31, 2010 and Declares a Quarterly Dividend

LAWRENCEBURG, Ind., Jan. 14, 2011 /PRNewswire/ — DSA Financial Corporation (OTC
Bulletin Board: DSFN) announced its financial results for the second fiscal
quarter ended December 31, 2010. The Company recorded net earnings of $176,000
or $0.11 per share reflecting an increase of $1,000 as compared to the same
quarter ended December 31, 2009, when the Company reported net earnings of
$175,000, also $0.11 per share.

The quarter-to-quarter increase in earnings was attributed primarily to a
$23,000, or 2.3%, increase in net interest income, and a decrease of $44,000 or
26.5%, in provision for losses on loans, offset by a $21,000, or 2.8% increase
in general, administrative and other expense, and a $48,000 or 30.0% decrease in
other income. Other income was reduced by a loss on the sale of Real Estate
Owned of $27,000 and reduced NSF fees due to recent legislation regarding
overdraft protection.

Net earnings for the six months ended December 31, 2010 were $377,000, or $0.24
per share, an increase of $57,000, or 17.8%, as compared to the six month period
ended December 31, 2009. The increase in earnings was attributed primarily to a
$154,000 or 7.9%, increase in net interest income, a decrease of $153,000 or
39.1%, in provision for losses on loans, partially offset by a $115,000 or 7.6%,
increase in general, administrative and other expense, a $97,000 or 24.0%,
decrease in other income, and a $38,000 or 29.2% increase in income taxes. Other
income was reduced by losses on the sale of Real Estate Owned of $42,000.
General, administrative and other expense was higher primarily due to writedowns
of $147,900 related to property acquired through foreclosure, post acquisition.

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 $0.105 per share. The dividend is payable on
February 11, 2011 to stockholders of record as of January 28, 2011.

DSA Financial reported total assets of $123.0 million at December 31, 2010,
total liabilities of $106.4 million, including deposits of $99.0 million and
total stockholders’ equity of $16.6 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
(In thousands)
(Unaudited)

December
31, June 30,
ASSETS 2010 2010

Cash and cash equivalents $4,514 $7,670
Investment securities 14,879 10,422
Loans receivable 91,860 93,600
Other assets 11,740 12,472
—— ——

Total assets $122,993 $124,164
======== ========

LIABILITIES AND STOCKHOLDERS’
EQUITY

Deposits $98,960 $99,057
Advances from the FHLB 5,500 6,500
Other liabilities 1,978 1,947
—– —–

Total liabilities 106,438 107,504

Stockholders’ equity 16,555 16,660
—— ——
Total liabilities and
stockholders’ equity $122,993 $124,164
======== ========

DSA FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except share data)
(Unaudited)

Six months Three months
ended ended
December 31, December 31,

2010 2009 2010 2009

Total interest income $2,876 $3,090 $1,409 $1,548
Total interest expense 780 1,148 377 539
— —– — —
Net interest income 2,096 1,942 1,032 1,009
Provision for losses on loans 238 391 122 166
— — — —
Net interest income after
provision for
losses on loans 1,858 1,551 910 843
Other income 307 404 112 160
General, administrative and
other expense 1,620 1,505 768 747
—– —– — —
Earnings before income taxes 545 450 254 256
Income taxes 168 130 78 81
— — — —

NET EARNINGS $377 $320 $176 $175
==== ==== ==== ====

EARNINGS PER SHARE -basic and
diluted $.24 $.20 $.11 $.11
==== ==== ==== ====

SOURCE DSA Financial Corporation

Subject Codes: PC/t.110114160001969, PT/lang.en, PC/ticker, IN/FIN,
IN/OTC, SU/ERN, SU/DIV, RE/Indiana, PC/priority.r,
PC/category.f, PC/class.1248, PC/WAVO_….k.,
PC/APT_….k, PC/trade_k, PC/wavo5_k, PC/class.1030,
PC/WAVO_l….., PC/APT_l…., PC/state_l, PC/wavo1_l,
PC/class.1278, PC/DataFeat_indpr, PC/port_32,
PC/Billing_INI, PC/Billing_IRW, PC/Billing_RWB,
PC/Billing_TNW, PC/1stAcc_919503, PC/bureau_DE,
PC/port_01, PC/port_96, PC/port_31, PC/port_19,
PC/port_91, PC/contact, PC/website, PC/id_DE30407

Company Codes: NASDAQ-OTCBB:DSFN