JFWV JSB Financial Inc (PK)

PJefferson Security Bank (OTCBB: JFWV) reported net income of $161,591 or $0.56 per share, for the second quarter ended June 30, 2012. Net income for the six months ended June 30, 2012 was $352,331, or $1.22 per share.

Based on these anticipated results, the Board of Directors declared a semiannual dividend in the amount of $0.50 per share, which was paid on June 15, 2012 to shareholders of record on May 31, 2012.

Commenting on the results, K. Stephen Morris, President and CEO, said: “Our results continue to be impacted by the economic conditions in our markets. Loan demand remains low and historically low interest rates have reduced the interest earned on our loan and investment portfolios. We have recognized savings in interest and noninterest expenses and continue to pursue a very conservative approach to managing the Bank.”

As of June 30, 2012, total assets of the Bank were $283.5 million, loans, net of reserve, were $134.6 million and deposits were $258.7 million. The annualized return on average assets was 0.25%, and the annualized return on average equity was 3.53% for the six months ended June 30, 2012. At June 30, 2012, net loans to deposits was 52.05% and book value per share was $69.54. Additional financial data is provided below.

Selected Financial Data         Balance Sheet Data: (dollars in thousands) June 30, December 31,   2012 2011   Total securities $ 122,739 $ 109,981 Total net loans 134,643 136,033 Total assets 283,458 274,730 Total deposits 258,676 251,509 Shareholders' equity 20,054 19,588   Performance Ratios: Net loans to deposits 52.05% 54.09% Non performing loans to gross loans 1.70% 1.52% Shareholders' equity to assets 7.07% 7.13% Book value per share $ 69.54 $ 67.92       Income Statement Data: (dollars in thousands) Three Months Ended Six Months Ended June 30, June 30,   2012     2011     2012     2011     Net interest income $ 1,807 $ 1,839 $ 3,534 $ 3,686 Provision for loan losses 180 180 360 814 Noninterest income 479 543 954 1,508 Noninterest expense   1,963     1,972     3,772     3,915   Income before income tax expense 143 230 356 465 Income tax (benefit) expense   (19 )   43     4     60   Net income $ 162   $ 187   $ 352   $ 405     Performance Ratios: Annualized return on average assets 0.23 % 0.27 % 0.25 % 0.30 % Annualized return on average equity 3.22 % 3.73 % 3.53 % 4.07 % Net interest margin 2.72 % 2.92 % 2.69 % 2.92 %   Per Share Data: Earnings per share $ 0.56 $ 0.65 $ 1.22 $ 1.40 Cash dividends declared $ 0.50 $ 0.50 $ 0.50 $ 0.50

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.

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)