JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB: JFWV) reported net income of $314,258 or $1.09 per share, for the third quarter ended September 30, 2012. Net income for the nine months ended September 30, 2012 was $666,588, or $2.31 per share.

Commenting on the results, K. Stephen Morris, President and CEO, said: “Our results for both the quarter and nine months ended September 30, 2012 reflect the continuing sluggish economy in our markets. Loan demand continues to be negligible yet we have increased profitability by reducing rates on certain deposits and reducing noninterest expense. The Board of Directors continues to follow a cautious and conservative approach as we wait to see how the economic and political situation unfolds.”

As of September 30, 2012, total assets of the Bank were $289.3 million, loans, net of reserve, were $133.9 million and deposits were $265.2 million. The annualized return on average assets was 0.31%, and the annualized return on average equity was 4.40% for the nine months ended September 30, 2012. At September 30, 2012, net loans to deposits was 50.52% and book value per share was $72.50. Additional financial data is provided below.

Selected Financial Data       Balance Sheet Data: (dollars in thousands) September 30, December 31, 2012 2011   Total securities $ 118,641 $ 109,981 Total net loans 133,944 136,033 Total assets 289,257 274,730 Total deposits 265,155 251,509 Shareholders' equity 20,910 19,588   Performance Ratios: Net loans to deposits 50.52 % 54.09 % Non performing loans to gross loans 1.59 % 1.52 % Shareholders' equity to assets 7.23 % 7.13 % Book value per share $ 72.50 $ 67.92   Income Statement Data:       (dollars in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011   Net interest income $ 1,884 $ 1,780 $ 5,418 $ 5,466 Provision for loan losses 180 680 540 1,494 Noninterest income 502 1,065 1,456 2,573 Noninterest expense   1,835     1,988     5,606     5,903   Income before income tax expense 371 177 728 642 Income tax expense   57     22     61     82   Net income $ 314   $ 155   $ 667   $ 560     Performance Ratios: Annualized return on average assets 0.45 % 0.23 % 0.31 % 0.27 % Annualized return on average equity 6.10 % 2.98 % 4.40 % 3.70 % Net interest margin 2.84 % 2.82 % 2.74 % 2.89 %   Per Share Data: Earnings per share $ 1.09 $ 0.54 $ 2.31 $ 1.94

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.

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 Bank has made with the Federal Deposit Insurance Corporation for additional information.

Offices:         105 East Washington Street, Shepherdstown, WV (304-876-9000) 7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800) 873 East Washington Street, Charles Town, WV (304-725-9752) 277 Mineral Drive, Suite 1, Inwood, WV (304-229-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 103 West Main Street, Sharpsburg, MD (301-432-3900)