JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB:JFWV) reported net income of $613,651 for the second quarter ended June 30, 2007, a decrease of 4.9% or $31,560 compared to net income for the corresponding quarter ended June 30, 2006 of $645,211. Earnings per share were $2.05 for the quarter ended June 30, 2007, a decrease of 4.7% from $2.15 for the second quarter of 2006. Net income for the six months ended June 30, 2007 was $1,235,707, or $4.12 per share, which is a decrease of $77,404, or 5.9%, compared to net income of $1,313,111, or $4.38 per share, for the six months ended June 30, 2006. The return on assets was 1.01%, and the return on equity was 13.78% for the six months ended June 30, 2007. In comparison, the six months ended June 30, 2006 generated a return on assets and equity of 1.12% and 15.53% respectively. Based on these results, the Board of Directors declared a semiannual dividend in the amount of $1.15 per share, payable July 13, 2007 to shareholders of record on July 2, 2007. This dividend represents an increase of $0.10, or 9.5%, over the $1.05 per share dividend paid in July 2006. Commenting on the results, K. Stephen Morris, President and CEO, said, �The results for the second quarter of 2007 declined from those of the second quarter of 2006. This decline is due to the fact that the results for the second quarter of 2007 reflect the costs associated with opening two new offices. These costs were not incurred during the second quarter of 2006. Also, the decline in the housing market is causing softness in the markets we serve. We are confident that at some time in the future the economy will become more robust, and we are managing our operations conservatively in anticipation of that event. Our earnings are strong enough to justify another substantial increase in our dividend for our shareholders, and we have acted accordingly. We continue to project a marginal increase in net income for the year ending December 31, 2007 as compared to the year ended December 31, 2006.� Total assets for the bank as of June 30, 2007 were $241.9 million, which is an increase of $5.7 million or 2.4% from total assets as of June 30, 2006 of $236.2 million. Loans, net of reserve, as of June 30, 2007 were $162.2 million, which is an increase of $1.2 million or 0.7% from loans, net of reserve, as of June 30, 2006 of $161.0 million. Deposits as of June 30, 2007 were $214.3 million, which is an increase of $7.3 million or 3.5% from deposits as of June 30, 2006 of $207.0 million. Book value per share as of June 30, 2007 was $59.64, which is an increase of $2.77 or 4.9% from book value per share of $56.87 as of June 30, 2006. Jefferson Security Bank, founded in 1869, is a community bank engaged in the general banking business in Berkeley County and Jefferson County, West Virginia, and Washington County, Maryland. The bank currently has six offices. This press release may contain forward-looking statements, as defined by federal securities laws, which may involve significant risks and uncertainties. The statements are based on estimates and assumptions made by management in conjunction with other factors deemed appropriate under the circumstances. Actual results could differ materially from current projections. Readers are encouraged to read filings the company has made with the Federal Insurance Deposit Corporation for additional information. Branch Offices: 7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800) 873 East Washington Street, Charles Town, WV (304-725-9752) 277 Mineral Drive, Inwood, WV (304-229-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 103 West Main Street, Sharpsburg, MD (301-432-3900)