JFWV JSB Financial Inc (PK)

President and CEO of Jefferson Security Bank (OTCBB:JFWV), K. Stephen Morris said, �We are proud of the results for 2006, which reflect the third consecutive year of record earnings, dividends, and increases in book value per share since the new senior management team and Board of Directors began to work together in October 2003. As I commented in the October 2006 press release, we have invested in the Bank�s future by opening two new offices in 2006. The expenses incurred for salaries and occupancy for these facilities resulted in a decline in net income for the fourth quarter of 2006 as compared to the fourth quarter of 2005. We are working aggressively to manage all costs but believe that the long-term interests of shareholders will be enhanced as a result of these two new offices.� Jefferson Security Bank reported record net income of $2,511,226 for the year ended December 31, 2006, an increase of 4.36% or $104,981 over net income of $2,406,245 for the year ended December 31, 2005. Earnings per share for the year ended December 31, 2006 were $8.37, an increase of 4.36% or $0.35 per share over earnings per share of $8.02 for the year ended December 31, 2005. The return on average assets was 1.07%, and the return on average equity was 14.46% for the year ended December 31, 2006, as compared to a return on average assets of 1.08% and a return on average equity of 15.19% for the year ended December 31, 2005. At December 31, 2006, net loans to deposits were 74.76% as compared to 71.41% at December 31, 2005. Net income for the quarter ended December 31, 2006 was $595,888, or $1.99 per share, which was a decline of $99,264, or $0.33 per share, from net income of $695,152, or $2.32 per share, for the quarter ended December 31, 2005. Total assets for the bank as of December 31, 2006 were $239.1 million, which is an increase of $600,000 or 0.2% from total assets as of December 31, 2005 of $238.5 million. Loans, net of reserve, as of December 31, 2006 were $162.9 million, which is an increase of $9.3 million, or 6.1% from loans, net of reserve, as of December 31, 2005 of $153.6 million. Deposits as of December 31, 2006 were $217.9 million which is an increase of $2.8 million or 1.3% from deposits as of December 31, 2005 of $215.1 million. Book value per share as of December 31, 2006 was $57.57 per share, an increase of $3.69 per share or 6.8% from book value per share of $53.88 as of December 31, 2005. 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 Deposit Insurance 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 (304-299-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 103 West Main Street, Sharpsburg, MD (301-432-3900)