JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB: JFWV) reported net income of $2,250,351 for the year ended December 31, 2007, a decline of 10.4% or $260,875 from net income of $2,511,226 for the year ended December 31, 2006. Earnings per share for the year ended December 31, 2007 were $7.50, a decline of $0.87 per share from earnings per share of $8.37 for the year ended December 31, 2006. The return on average assets was 0.91%, and the return on average equity was 12.32% for the year ended December 31, 2007, as compared to a return on average assets of 1.07% and a return on average equity of 14.64% for the year ended December 31, 2006. At December 31, 2007, net loans to deposits were 74.62% as compared to 74.74% at December 31, 2006. The Board of Directors declared a cash dividend of $1.20 per share for the second half of 2007, which was paid to shareholders on January 15, 2008. The $1.20 amount represents an increase of five cents over the first-half dividend. Dividends paid to shareholders from 2007 earnings totaled $2.35 per share. Commenting on the results, K. Stephen Morris, President and CEO, said, �The results for 2007 were realized during a severe housing downturn, an unpredictable economy and unprecedented turmoil in the credit markets. We cannot predict when or how market conditions will change in the future, but we have a strong management team, which has proven experience managing through previous down cycles, and adequate controls over the various business risks that we incur. Jefferson Security Bank is well positioned with a strong market share in a long-term growth area, and we are approaching the future with confidence.� Total assets for the bank as of December 31, 2007 were $249.0 million, which is an increase of $9.9 million or 4.1% from total assets as of December 31, 2006 of $239.1 million. Loans, net of reserve, as of December 31, 2007 were $160.4 million, which is a decline of $2.5 million, or 1.5% from loans, net of reserve, as of December 31, 2006 of $162.9 million. Deposits as of December 31, 2007 were $215.0 million which is a decline of $2.9 million or 1.3% from deposits as of December 31, 2006 of $217.9 million. Book value per share as of December 31, 2007 was $64.91 per share, an increase of $7.34 per share or 12.7 % from book value per share of $57.57 as of December 31, 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 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 (304-229-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 103 West Main Street, Sharpsburg, MD (301-432-3900)