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

January 11, 2019

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 September 31 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. TaylorVice President & Chief Financial Officer dtaylor@dearbornsavings.com

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