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Jefferson Security Bank Announces Earnings for the Third Quarter and First Nine Months of 2007 Reflecting Challenging Market Conditions

October 24, 2007 - Jefferson Security Bank Post Office Box 35, Corner of Washington & Princess Streets, Shepherdstown, West Virginia 25443 (304) 876-9000 FOR IMMEDIATE RELEASE Contact: K. Stephen Morris, President and CEO October 24, 2007 304-876-9025 Jefferson Security Bank Announces Earnings for the Third Quarter and First Nine Months of 2007 Reflecting Challenging Market Conditions Shepherdstown, West Virginia; October 24, 2007 Jefferson Security Bank (OTCBB: JFWV.OB) reported net income of $520,784 for the third quarter ended September 30, 2007, a decrease of 13.5% or $81,443 from the net income for the corresponding quarter ended September 30, 2006 of $602,227. Earnings per share were $1.74, a decrease of 13.4% from the $2.01 for the third quarter of 2006. The return on assets was 0.95%, and the return on equity was 12.99%. In comparison, the third quarter of 2006 generated a return on assets and equity of 1.10% and 14.92%, respectively. Net income for the nine months ended September 30, 2007 was $1,756,491, or $5.85 per share, which is a decrease of $158,847, 8.3%, from the net income of $1,915,338, or $6.38 per share, for the nine months ended September 30, 2006. Commenting on the results, K. Stephen Morris, President and CEO, said, “We are facing challenging economic times in our market and the results of operations for Jefferson Security Bank for the quarter and nine months ended September 30 reflect that fact. Our lending business is heavily weighted towards real estate. That segment of the economy is currently characterized by reduced mortgage originations, increased builder inventories, declining valuations and increased foreclosures. The impact of these events, collectively, has reduced our profitability; however, Jefferson Security Bank has always been managed in a conservative manner and we have not experienced and do not anticipate experiencing any material adverse results from these events. In addition, during the quarter ended September 30, the net interest margin declined slightly although our net interest margin remains favorable compared to our peer group. We also experienced a slight reduction in non-interest-bearing deposits as interest-bearing deposits increased and we allocated assets to fully fund our pension plan during the quarter ended September 30, 2007. Collectively, these issues put additional downward pressure on our earnings.” Total assets for the bank as of September 30, 2007 were $248.9 million, which is an increase of $16.6 million or 7.1% from total assets as of September 30, 2006 of $232.3 million. Loans, net of reserve, as of September 30, 2007 were $164.1 million, which is an increase of $2.8 million or 1.8% from loans, net of reserve, as of September 30, 2006 of $161.3 million. Deposits as of September 30, 2007 were $228.4 million, which is an increase of $16.3 million or 7.7% from deposits as of September 30, 2006 of $212.1 million. Book value per share as of September 30, 2007 was $62.27, which is an increase of $3.04 or 5.1% from book value per share of $59.23 as of September 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 operates 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 (304-229-6000) 1861 Edwin Miller Boulevard, Martinsburg, WV (304-264-0900) 103 West Main Street, Sharpsburg, MD (301-432-3900)

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