Jefferson Security Bank Announces Earnings for the Second Quarter and First Half of 2007 and Increases Dividend

  
    
  
  
    
      Jefferson Security Bank (OTCBB:JFWV) reported net income of $613,651 for 
      the second quarter ended June 30, 2007, a decrease of 4.9% or $31,560 
      compared to net income for the corresponding quarter ended June 30, 2006 
      of $645,211. Earnings per share were $2.05 for the quarter ended June 
      30, 2007, a decrease of 4.7% from $2.15 for the second quarter of 2006.
    
    
      Net income for the six months ended June 30, 2007 was $1,235,707, or 
      $4.12 per share, which is a decrease of $77,404, or 5.9%, compared to 
      net income of $1,313,111, or $4.38 per share, for the six months ended 
      June 30, 2006. The return on assets was 1.01%, and the return on equity 
      was 13.78% for the six months ended June 30, 2007. In comparison, the 
      six months ended June 30, 2006 generated a return on assets and equity 
      of 1.12% and 15.53% respectively.
    
    
      Based on these results, the Board of Directors declared a semiannual 
      dividend in the amount of $1.15 per share, payable July 13, 2007 to 
      shareholders of record on July 2, 2007. This dividend represents an 
      increase of $0.10, or 9.5%, over the $1.05 per share dividend paid in 
      July 2006.
    
    
      Commenting on the results, K. Stephen Morris, President and CEO, said, “The 
      results for the second quarter of 2007 declined from those of the second 
      quarter of 2006. This decline is due to the fact that the results for 
      the second quarter of 2007 reflect the costs associated with opening two 
      new offices. These costs were not incurred during the second quarter of 
      2006. Also, the decline in the housing market is causing softness in the 
      markets we serve. We are confident that at some time in the future the 
      economy will become more robust, and we are managing our operations 
      conservatively in anticipation of that event. Our earnings are strong 
      enough to justify another substantial increase in our dividend for our 
      shareholders, and we have acted accordingly. We continue to project a 
      marginal increase in net income for the year ending December 31, 2007 as 
      compared to the year ended December 31, 2006.”
    
    
      Total assets for the bank as of June 30, 2007 were $241.9 million, which 
      is an increase of $5.7 million or 2.4% from total assets as of June 30, 
      2006 of $236.2 million. Loans, net of reserve, as of June 30, 2007 were 
      $162.2 million, which is an increase of $1.2 million or 0.7% from loans, 
      net of reserve, as of June 30, 2006 of $161.0 million. Deposits as of 
      June 30, 2007 were $214.3 million, which is an increase of $7.3 million 
      or 3.5% from deposits as of June 30, 2006 of $207.0 million. Book value 
      per share as of June 30, 2007 was $59.64, which is an increase of $2.77 
      or 4.9% from book value per share of $56.87 as of June 30, 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 Insurance Deposit 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)