JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB:JFWV) reported net income of $645,000 for the second quarter ended June 30, 2006, an increase of 8.6% or $51,000 over the net income for the corresponding quarter ended June 30, 2005 of $594,000. Earnings per share were $2.15 for the second quarter of 2006, an increase of 8.6% from $1.98 for the second quarter of 2005. Net income for the six months ended June 30, 2006 was $1,313,000, or $4.38 per share, which is an increase of $181,000, 16.0%, over the net income of $1,132,000, or $3.77 per share, for the six months ended June 30, 2005. The return on assets was 1.12%, and the return on equity was 15.53% for the six months ended June 30, 2006. In comparison, the second quarter of 2005 generated a return on assets and equity of 1.05% and 14.73% respectively. Based on these results, the board of directors declared a semiannual dividend in the amount of $1.05 per share, payable July 14, 2006 to shareholders of record on June 30, 2006. This dividend represents an increase of $0.15, 16.7%, over the $0.90 per-share dividend paid in July 2005. Commenting on the results, K. Stephen Morris, president and CEO, said, "We are seeing the results of our continuing focus on making high-quality loans while also managing the fundamentals of our business which are net interest margin, non-interest income and non-interest expense. As a result of the bank's strong results, the board of directors increased the dividend." Total assets for the bank as of June 30, 2006 were $236.2 million, which is an increase of $14.9 million or 6.7% from total assets as of June 30, 2005 of $221.3 million. Loans, net of reserve, as of June 30, 2006 were $160.9 million, which is an increase of $25.4 million or 18.7% from loans, net of reserve, as of June 30, 2005 of $135.5 million. Deposits as of June 30, 2006 were $207.0 million, which is an increase of $2.8 million or 1.4% from deposits as of June 30, 2005 of $204.2 million. Book value per share as of June 30, 2006 was $56.87, which is an increase of $4.73 or 9.1% from book value per share of $52.14 as of June 30, 2005. Jefferson Security Bank, founded in 1869, is a community bank engaged in the general banking business in Berkeley County and Jefferson County, W. Va. With the opening of the Barron Office located in Shepherdstown, W. Va., on June 15, 2006, the bank currently has five offices and expects to open another office during the third quarter of 2006 in Sharpsburg, Md. 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 Deposit Insurance Corporation for additional information. -0- *T Branch Offices: 700 East Washington Street at Jefferson Avenue, Charles Town, WV (304-725-9752) 277 Mineral Drive, Inwood, WV (304-299-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 7994 Martinsburg Pike, Shepherdstown, WV (304-876-2800) *T