JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB: JFWV) reported net income of $916,996 or $3.15 per share, for the nine months ended September 30, 2009, which is a decrease of $182,457, 16.6%, from net income of $1,099,453, or $3.67 per share, for the nine months ended September 30, 2008.

For the third quarter ended September 30, 2009, net income for the Bank was $203,612, or $0.71 per share, as compared to a net loss for the third quarter ended September 30, 2008 of $64,008, or a loss of ($0.22) per share.

Commenting on the results, K. Stephen Morris, President and CEO, said, “At this point in time, we do not see signs of an economic recovery. Our market area continues to experience high levels of unemployment and under employment. We do not anticipate a recovery until the job market improves.”

“Jefferson Security Bank has an excellent liquidity position in that its ratio of loans, net of reserve, to deposits was 63.8% as of September 30, 2009. This ratio is considerably lower than almost all other members of the bank’s national peer group, and thus exemplifies our ability to meet the cash needs of our borrowers and depositors. Moreover, Jefferson Security Bank maintains capital ratios that exceed ‘well capitalized’ regulatory requirements. Collectively these standards of measurement give management confidence that Jefferson Security Bank will weather the current financial storm as it has others since its founding in 1869.”

Total assets for the Bank as of September 30, 2009 were $248.5 million, which is an increase of $9.3 million, or 3.9%, from total assets as of September 30, 2008 of $239.2 million. Loans, net of reserve, as of September 30, 2009 were $144.3 million, which is a decrease of $6.3 million, or 4.2%, from loans, net of reserve, as of September 30, 2008 of $150.6 million. Deposits as of September 30, 2009 were $226.1 million, which is an increase of $15.3 million, or 7.3%, from deposits as of September 30, 2008 of $210.8 million. As of September 30, 2009, book value per share was $64.49, which is an increase of $0.19 or 0.3% from book value per share of $64.30 as of September 30, 2008.

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 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)