8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): January 24, 2012

OBA FINANCIAL SERVICES, INC.

(Exact Name of Registrant as Specified in its Charter)

Maryland	001-34593	27-1898270
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(I.R.S. Employer Identification No.)

20300 Seneca Meadows Parkway, Germantown, Maryland	20876
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code:  (301) 916-0742

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On January 24, 2012, OBA Financial Services, Inc. issued a press release to announce its results of operations for the three months and six months ended December 31, 2011. The press release and related financial information is included as Exhibit 99.1 to this report. The information included in the press release and related financial information is considered to be “furnished” under the Securities Exchange Act of 1934.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable

(b) Not applicable

(c) Not applicable

(d) Exhibits

Exhibit No. Description

99.1 Press release dated January 24, 2012

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized.

		OBA Financial Services, Inc.
DATE: January 26, 2012	By:	/s/ David A. Miller
		David A. Miller
		Senior Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit No. Description

99.1 Press release dated January 24, 2012

EX-99.1

EXHIBIT 99.1

OBA Financial Services, Inc.

FOR IMMEDIATE RELEASE News Release

OBA Financial Services, Inc. Announces 2nd Quarter Results

GERMANTOWN, MARYLAND: January 24, 2012 – OBA Financial Services, Inc., (NASDAQ – OBAF) (“Company”), the parent company of OBA Bank (“Bank”), announces net income of $170 thousand, or $0.04 basic and diluted earnings per share, for the six months ended December 31, 2011 as compared to net income of $535 thousand, or $0.13 basic and diluted earnings per share, for the comparable period in the prior year.

The Company announces its fiscal second quarter net income, which ended December 31, 2011, of $82 thousand, or $0.02 basic and diluted earnings per share, as compared to net income of $283 thousand, or $0.07 basic and diluted earnings per share, for the fiscal quarter ended December 31, 2010 and net income of $88 thousand, or $0.02 basic and diluted earnings per share, for the fiscal quarter ended September 30, 2011.

The Company’s quarterly income was primarily impacted by an increase in non-interest expense of $137 thousand for the quarter ended December 31, 2011 as compared to the quarter ended December 31, 2010.  The

Company’s income for the six months ended December 31, 2011 was primarily impacted by an increase in non-interest expense of $388 thousand as compared to the six months ended December 31, 2010.  The increase in non-interest expense primarily reflects an increase in salaries and employee benefits as a result of  additions to staff and the implementation of, and grants under, the Company’s equity incentive plan as previously disclosed in its 8-K filed on May 17, 2011.

Income Statement

The Company’s net interest income for the quarter ended December 31, 2011 increased $68 thousand to $3.0 million as compared to the quarter ended September 30, 2011.  The Company continued to pay down higher cost borrowings, concluded its money market promotion, and decreased deposit rates while maintaining its competitive position within the local market.

The Company’s net interest income for the quarter ended December 31, 2011 remained essentially unchanged at $3.0 million as compared to the fiscal quarter ended December 31, 2010.

Balance Sheet

Total assets decreased to $382.0 million at December 31, 2011 from $386.4 million at June 30, 2011.

Total loans decreased to $281.6 million at December 31, 2011 from $281.9 million at June 30, 2011.

Total deposits decreased to $251.9 million at December 31, 2011 from $257.0 million at June 30, 2011 primarily due to the completion of the money market promotion and a reduction in brokered certificates of deposit.

Equity and Capital

Stockholders’ equity decreased to $75.9 million at December 31, 2011 as compared to $80.9 million at June 30, 2011 primarily as a result of the Company’s share repurchase program.  The Company remains well-capitalized with ratios well in excess of regulatory minimums.

Asset Quality

Total non-performing assets to total assets increased to 1.74% at December 31, 2011 from 1.40% at June 30, 2011 and 0.18% at December 31, 2010.  Total non-performing loans to total loans increased to 2.34% at December 31, 2011 from 1.88% at June 30, 2011 and 0.16% at December 31, 2010.  The increases were primarily made up of two loan relationships with not-for-profit entities that have collateral values well in excess of the loan values.  Based on the value of the collateral, no specific allowances are required for these loans.

The allowance for loan losses to total loans increased to 0.93% at December 31, 2011 from 0.80% at June 30, 2011, and 0.76% at December 31, 2010.

About OBA Financial Services, Inc. and OBA Bank

OBA Financial Services, Inc. is the holding company for OBA Bank.  OBA Bank, founded in 1861, is a community-oriented bank which provides a variety of financial services to individuals and small businesses through its offices in Montgomery and Howard Counties of Maryland.  The Bank’s primary deposits are demand, money market, and time certificate accounts and its primary lending products are residential and commercial mortgage loans.  Visit www.obabank.com to locate an ATM or branch near you or for more information about OBA Bank.

For additional information or questions, please contact:

Charles E. Weller, President & Chief Executive Officer, or

David A. Miller, S.V.P. & Chief Financial Officer

OBA Financial Services, Inc.

20300 Seneca Meadow Parkway

Germantown, MD 20876

301-916-6400

Email:    cweller@obabank.com

damiller@obabank.com

Web Site: www.obabank.com

Forward-Looking Statements

When used in this Press Release, the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements are subject to certain risks and uncertainties including, but not limited to, changes in economic conditions in OBA Bank’s market area, changes in policies by regulatory agencies, changes in the Bank’s regulator, fluctuations in interest rates, demand for loans in OBA Bank’s market area, competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected, and other risks described in the Company’s filings with the Securities and Exchange Commission.  The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause The Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revision which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

OBA Financial Services, Inc.

FINANCIAL SUMMARY

(dollars in thousands, except per share data)

	Three Months Ended December 31,									Three Months Ended September 30,
	2011			2010			% Change			2011			% Change
RESULTS OF OPERATIONS:
Net interest income	$	3,042		$	3,075			(1.1	)%	$	2,974			2.3	%
Provision for loan losses		229			245			(6.5	)		147			55.8
Non-interest income		172			308			(44.2	)		211			(18.5	)
Non-interest expense		2,854			2,717			5.0			2,936			(2.8	)
Income before taxes		131			421			(68.9	)		102			28.4
Income tax		49			138			(64.5	)		14			-
Net Income		82			283			(71.0	)		88			(6.8	)
SHARE DATA:
Basic earnings per share	$	0.02		$	0.07			(71.4	)%	$	0.02			-	%
Diluted earnings per share		0.02			0.07			(71.4	)		0.02			-
Book value per common share		18.03			17.41			3.6			17.86			1.0
Tangible book value per common share		18.03			17.41			3.6			17.86			1.0
Weighted average shares - basic		3,924,869			4,272,387			(8.1	)		4,193,848			(6.4	)
Weighted average shares - diluted		3,924,869			4,272,387			(8.1	)		4,193,881			(6.4	)
Common shares outstanding		4,210,850			4,628,750			(9.0	)		4,351,200			(3.2	)
SELECTED RATIOS:
Return on average assets		0.08	%		0.31	%					0.09	%
Return on average equity		0.42			1.39						0.43
Net interest margin		3.59			3.76						3.52
Leverage ratio		19.76			22.67						19.45
Tier I risk-based capital ratio		29.85			32.74						30.88
Total risk-based capital ratio		30.88			33.63						31.85
Allowance for loan losses to total loans		0.93			0.76						0.85
Non-performing loans to total loans		2.34			0.16						2.18
Non-performing assets to total assets		1.74			0.18						1.58
END OF PERIOD BALANCES:
Investment securities	$	43,348		$	27,609			57.0	%	$	37,298			16.2	%
Total loans		281,560			286,011			(1.6	)		281,999			(0.2	)
Earning assets		347,526			325,864			6.6			338,926			2.5
Assets		382,017			354,216			7.8			396,659			(3.7	)
Deposits		251,873			227,699			10.6			270,716			(7.0	)
Borrowings		52,250			44,533			17.3			45,762			14.2
Stockholders' equity		75,927			80,596			(5.8	)		77,721			(2.3	)
AVERAGE BALANCES:
Investment securities	$	36,692		$	28,918			26.9	%	$	37,414			(1.9	)%
Total loans		279,095			283,779			(1.7	)		280,418			(0.5	)
Earning assets		336,618			324,547			3.7			335,444			0.3
Assets		383,968			363,743			5.6			392,649			(2.2	)
Deposits		259,022			227,852			13.7			262,927			(1.5	)
Borrowings		46,607			53,277			(12.5	)		46,656			(0.1	)
Stockholders' equity		76,806			80,881			(5.0	)		80,328			(4.4	)

OBA Financial Services, Inc.

FINANCIAL SUMMARY

(dollars in thousands, except per share data)

	Six Months Ended December 31,
	2011			2010			% Change
RESULTS OF OPERATIONS:
Net interest income	$	6,016		$	6,042			(0.4	)%
Provision for loan losses		376			403			(6.7	)
Non-interest income (loss)		383			561			(31.7	)
Non-interest expense		5,790			5,402			7.2
Income (loss) before taxes		233			798			(70.8	)
Income tax (benefit)		63			263			(76.0	)
Net income (loss)		170			535			(68.2	)
SHARE DATA:
Basic earnings (loss) per share	$	0.04		$	0.13			(69.2	)%
Diluted earnings (loss) per share		0.04			0.13			(69.2	)
Book value per common share		18.03			17.41			3.6
Tangible book value per common share		18.03			17.41			3.6
Weighted average shares - basic		4,059,359			4,270,072			(4.9	)
Weighted average shares - diluted		4,064,369			4,270,072			(4.8	)
Common shares outstanding		4,210,850			4,628,750			(9.0	)
SELECTED RATIOS:
Return on average assets		0.09	%		0.29	%
Return on average equity		0.43			1.31
Net interest margin		3.55			3.61
Leverage ratio		19.76			22.67
Tier I risk-based capital ratio		29.85			32.74
Total risk-based capital ratio		30.88			33.63
Allowance for loan losses to total loans		0.93			0.76
Non-performing loans to total loans		2.34			0.16
Non-performing assets to total assets		1.74			0.18
END OF PERIOD BALANCES:
Investment securities	$	43,348		$	27,609			57.0	%
Total loans		281,560			286,011			(1.6	)
Earning assets		347,526			325,864			6.6
Assets		382,017			354,216			7.8
Deposits		251,873			227,699			10.6
Borrowings		52,250			44,533			17.3
Stockholders' equity		75,927			80,596			(5.8	)
AVERAGE BALANCES:
Investment securities	$	37,053		$	30,356			22.1	%
Total loans		279,757			280,879			(0.4	)
Earning assets		336,031			331,794			1.3
Assets		388,309			365,520			6.2
Deposits		260,974			228,049			14.4
Borrowings		46,632			54,829			(15.0	)
Stockholders' equity		78,567			80,720			(2.7	)