Jefferson Security Bank Announces Earnings for the First Quarter of 2007

  
    
  
  
    
      President and CEO of Jefferson Security Bank (OTCBB:JFWV), K. Stephen 
      Morris, announced the results of operations for the first quarter of 
      2007 and commented, “First quarter 2007 net 
      income of $622,056 ($2.07 per share) declined $45,844 ($0.16 per share) 
      from net income for the first quarter of 2006 of $667,900 ($2.23 per 
      share). Since March 31, 2006, we opened two new offices and incurred 
      increased operating expenses. The board of directors made the decision 
      to open both offices during 2006 fully aware that there would be an 
      impact on the Bank’s earnings. We anticipate 
      that both of these offices will become contributors to net income soon 
      and will contribute to the long-term growth of Jefferson Security Bank. 
      We currently project a marginal increase in net income for the year 
      ending December 31, 2007.”
    
    
      Total assets for the bank as of March 31, 2007 were $247.4 million, 
      which is an increase of $8.3 million or 3.5% from total assets as of 
      December 31, 2006 of $239.1 million. Loans, net of reserve, as of March 
      31, 2007 were $165.2 million, which is an increase of $2.3 million or 
      1.4% from loans, net of reserve, as of December 31, 2006 of $162.9 
      million. Deposits as of March 31, 2007 were $218.3 million which is an 
      increase of $400 thousand or 0.2% from deposits as of December 31, 2006 
      of $217.9 million. The return on average assets was 1.01%, and the 
      return on average equity was 14.07% for the quarter ended March 31, 
      2007, as compared to a return on average assets of 1.14% and a return on 
      average equity of 16.07% for the quarter ended March 31, 2006. At March 
      31, 2007, net loans to deposits were 75.7% as compared to 74.7% at 
      December 31, 2006. Book value per share as of March 31, 2007 was $59.56 
      per share, an increase of $1.99 per share or 3.5% 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 (304-299-6000)
        
      
      
        
          1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)
        
      
      
        
          103 West Main Street, Sharpsburg, MD (301-432-3900)