JFWV JSB Financial Inc (PK)

Jefferson Security Bank (OTCBB: JFWV) reported net income of $834,046 and earnings per share of $2.87 for the year ended December 31, 2009. The Board of Directors declared a cash dividend of $0.30 per share for the second half of 2009, which was paid to shareholders on January 15, 2010. As of December 31, 2009, total assets were $247.7 million, loans, net of reserve, were $144.2 million and deposits were $226.1 million. The return on average assets was 0.35%, and the return on average equity was 4.44% for the year ended December 31, 2009.

Commenting on the results, K. Stephen Morris, President and CEO, said: “The current recession has been severe and our earnings for 2009 reflect this fact; however, we continue to maintain a well capitalized position under regulatory standards. In view of the economic conditions in the market served by Jefferson Security Bank and the current regulatory environment, we are focused on maintaining strong liquidity and capital positions as evidenced by our balance sheet. The Bank’s liquidity, as measured by its net loans to deposits ratio of 63.76% at December 31, 2009, strengthened significantly from the 77.27% ratio at December 31, 2008. This strengthening was due, in part, by an increase in deposits during the year of $30.4 million. Book value per share increased to $65.72 per share at December 31, 2009 from $62.99 per share at December 31, 2008. We continue to prepare for an extended period of economic hardship by focusing on the fundamentals of net interest income, noninterest income, noninterest expense and the adequacy of our reserve for loan losses.”

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 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)