First National Bank of Jeffersonville to Convert to New York State Charter and Change Name to Jeff Bank

Jeffersonville Bancorp, Inc. (OTCQB:JFBC) (the "Company"), the holding company for the First National Bank of Jeffersonville (the "Bank"), announced today that the Bank has been approved by the New York State Department of Financial Services ("NYSDFS") for conversion from a national to a New York State charter. The conversion will be effective December 21, 2012 at which time the Bank will operate under the name "Jeff Bank."

The Company expects that the charter conversion will not have a significant impact on the Bank's current activities or investments, although the Bank expects some annual cost savings as a result of the conversion. The charter conversion also should not adversely affect Bank customers and will not affect the terms and conditions of loan and deposit accounts.

Wayne V. Zanetti, President and CEO of the Bank, stated: "We believe the Bank will benefit from the insight and oversight of the NYSDFS, which is focused on local New York community banks and financial institutions. We anticipate that the regulatory oversight of the NYSDFS will be similar to what we have received from our federal regulators in the past, but with a more local orientation."

As a result of the charter conversion, the New York State Department of Financial Services and the Federal Deposit Insurance Corporation (the "FDIC") will be the Bank's primary regulators. The Federal Reserve Board will continue to be the primary banking regulator for Jeffersonville Bancorp.

Jeffersonville Bancorp is a one-bank holding company, which owns all the capital stock of The First National Bank of Jeffersonville. "Jeff Bank" maintains twelve full service branches in Sullivan County, New York located in Jeffersonville, Liberty, Monticello, Eldred, Loch Sheldrake, Livingston Manor, Narrowsburg, Callicoon, Wal*Mart/Monticello, White Lake, Wurtsboro and Bloomingburg.

This press release contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward-looking statements and include words or phrases such as "believes," "will," "expects," "anticipates," "intends," "estimates," "our view," "we see," "would" and words and phrases of similar import. The forward looking statements in this press release are also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to have been correct. Actual results could differ materially as a result of a variety of risks and uncertainties, many of which are outside of the control of management.

CONTACT: For More Information, call:  845-482-4000
         Wayne Zanetti, President - CEO