City Savings Financial Corporation Announces Quarterly and Year to Date Earnings.

MICHIGAN CITY, Ind. -- City Savings Financial Corporation (OTCBB:CSFC) (the "Company"), the holding company of City Savings Bank, announced its results of operations for the three and nine months ended March 31, 2007. The Company reported a consolidated net income of $89,000 for the quarter ended March 31, 2007, compared to net income of $162,000 for the same period last year. For the nine months ended March 31, 2007, the Company reported net income of $227,000 compared to a net loss of $222,000 for the same period last year.

The decrease in net income for the three months ended was largely attributable to a decrease in net interest income and a decrease in non-interest income partially offset by a decrease in non-interest expenses. The improvement in operating results for the nine months ended was largely attributable to a decrease in non-interest expenses and a decrease in the provision for loan losses partially offset by decreases in net interest income and non-interest income. The decrease in net interest income for the three and nine months ended was primarily due to a decrease in the Company's loan portfolio and an increase in the cost of interest bearing liabilities. The decrease in non-interest income for the same periods, was primarily due to decreases in loan related income and gains on the sale of loans. The decrease in non-operating expenses for the three and nine months ended March 31, 2007, was primarily the result of planned cost cuts in compensation and advertising expenses

and a decrease in expenses related to foreclosed real estate. Additionally, the Company recorded higher loan loss provisions during the nine months ended March 31, 2006, related to several impaired commercial loan relationships.

On March 8, 2007, the Company executed a definitive merger agreement with The LaPorte Savings Bank, LaPorte, Indiana, pursuant to which The LaPorte Savings Bank will acquire the Company and City Savings Bank for $34.00 per share. To support this acquisition, The LaPorte Savings Bank will reorganize into a mutual holding company, which will form and own approximately 55% of a new subsidiary mid-tier stock holding company to be known as LaPorte Bancorp, Inc. The remaining 45% of LaPorte Bancorp, Inc.'s common stock will be issued to the public and issued to the Company's shareholders as a part of the merger consideration, which will be 50% stock and 50% cash. The aggregate value of the merger transaction is approximately $19.8 million. Both The LaPorte Savings Bank's and the Company's boards of directors unanimously approved the merger agreement, and it is expected that the merger will close in the third or fourth quarter of 2007. The parties expect to file regulatory applications regarding the transactions during the second quarter of 2007.

Statements contained in this news release that are forward-looking are subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in the Company's forward-looking statements.

[TABLE OMITTED]
[TABLE OMITTED]
[TABLE OMITTED]