Jefferson Security Bank Announces Record Earnings for the First Quarter

Jefferson Security Bank (OTCBB:JFWV) reported net income
of $668,000 for the first quarter ended March 31, 2006, an increase of
24% or $130,000 over the net income for the corresponding quarter
ended March 31, 2005 of $538,000. Earnings per share were $2.23, an
increase of 25% from the $1.79 for the first quarter of 2005. The
return on assets was 1.14%, and the return on equity was 16.07%. In
comparison, the first quarter of 2005 generated a return on assets and
equity of 1.01% and 14.15% respectively.
   Commenting on the results, K. Stephen Morris, President and CEO,
said, "We are seeing the results of our continuing focus on making
high-quality loans while also managing the fundamentals of our
business which are net interest margin, non-interest income and
non-interest expense."
   Total assets for the bank as of March 31, 2006 were $233.4
million, which is an increase of $16.0 million or 7.4% from total
assets as of March 31, 2005 of $217.4 million. Loans, net of reserve,
as of March 31, 2006 were $154.7 million, which is an increase of
$26.6 million or 20.8% from loans, net of reserve, as of March 31,
2005 of $128.1 million. Deposits as of March 31, 2006 were $206.4
million, which is an increase of $5.3 million or 2.6% from deposits as
of March 31, 2005 of $201.1 million. Book value per share as of March
31, 2006 was $56.00, which is an increase of $5.16 or 10.1% from book
value per share of $50.84 as of March 31, 2005.
   Jefferson Security Bank, founded in 1869, is a community bank
engaged in the general banking business in Berkeley County and
Jefferson County, West Virginia. The bank currently has four offices
and expects to open two new offices during the second quarter of 2006
in Shepherdstown, West Virginia and Sharpsburg, Maryland.
   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.
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Branch Offices:

   700 East Washington Street at Jefferson Avenue, Charles Town, WV
                            (304-725-9752)
             277 Mineral Drive, Inwood, WV (304-299-6000)
      1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900)
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