JACKSONVILLE BANCORP ANNOUNCES
FIRST QUARTER EARNINGS
JACKSONVILLE, FLA., May 14/PRNewswire-First Call/—Jacksonville Bancorp, Inc. (NASDAQ: JAXB), holding company for The Jacksonville Bank, reported a 2010 first quarter net loss of $988 thousand, or $.56 per basic share, compared to a net quarterly loss of $109 thousand, or $.06 per basic share, in 2009. Total assets were $452.4 million at quarter end, compared to $432.0 million as of March 31, 2009, an increase of $20.4 million. Net loans increased 1.1% to $383.0 million as of March 31, 2010, compared to $378.8 million as of March 31, 2009. Total deposits increased 12.0% to $385.9 million, compared to $344.5 million at March 31, 2009.
The quarterly loss was driven by the level of provision expense offset somewhat by an improvement in the net interest margin. There were $1.6 million in net charge-offs during the first quarter, resulting in a ratio of net charge-offs to average loans of 1.67%, compared to $648 thousand, or 0.66% of net charge-offs to average loans in the fourth quarter of 2009, and $701 thousand, or 0.74% of net charge-offs to average loans in the first quarter of 2009. The increase in net charge-offs is primarily due to the write down on one large home equity loan in the amount of $1.2 million.
Nonperforming assets totaled $11.1 million, or 1.90% of gross loans at March 31, 2010 versus $12.8 million, or 2.24% of gross loans at December 31, 2009, and $9.6 million, or 2.49% of gross loans at March 31, 2009. Included in nonperforming assets are OREO properties in the amount of $3.7 million, of which approximately $2.0 million is currently under contract to sell.
Jacksonville Bancorp, Inc. President Gilbert J. Pomar, III stated, “We remain committed to the prudent management of our Company, including the prompt recognition of potential losses in our loan portfolio. We will continue to focus on our fundamental business which will allow us to excel once these unprecedented times are behind us.”
On May 10, 2010, the Company disclosed the signing of a stock purchase agreement with four private investors (providing for $30.0 million in new capital) and the signing of a definitive merger agreement to acquire $286 million-asset Atlantic BancGroup, Inc. “The joining of our two companies creates a perfect alignment of both culture and strategy; the additional capital not only strengthens the equity position of the combined companies but also provides the opportunity for us to grow and serve new customers in our market,” Mr. Pomar went on to say.
The Company remains well capitalized with total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage capital at 11.63%, 8.87% and 7.72%, respectively. Book value per common share at the period end was $14.98.
The first quarter provision for loan losses was $2.4 million, compared to $938 thousand in the first quarter of 2009. The increase in the loan loss provision was necessitated primarily by the increased level of net charge-offs as discussed above. The allowance for loan losses as a percentage of loans was 1.95% at March 31, 2010, compared to 1.29% a year earlier, and 1.75% at December 31, 2009.
Net interest income for the quarter increased to $3.6 million, or 24.1%, when compared to $2.9 million in the same three-month period in 2009. The net interest margin was 3.40% for the quarter, compared to 3.47% in the fourth quarter of 2009 and 2.87% for the quarter ended March 31, 2009. The interest margin improvement over the linked quarter in 2009 is the result of the success recognized from the core deposit gathering campaign initiated in the fourth quarter and the repricing of our certificates of deposit portfolio.
Noninterest income increased to $248 thousand, compared to $146 thousand in the first quarter 2009. During the quarter ended March 31, 2009, the Company recorded an other-than-temporary impairment charge of $132 thousand for the common stock of Silverton Bank, which was closed by the Office of the Controller of the Currency and the FDIC on May 1, 2009. Noninterest expense increased to $3.1 million for the three months ended March 31, 2010, compared to $2.3 million in the same period in 2009. The increase was primarily a result of recording an additional $146 thousand of regulatory assessments in 2010, recording a $335 thousand write-down of OREO property values, and recording $129 thousand for other related expenses on foreclosed assets.
Jacksonville Bancorp, Inc., a bank holding company, is the parent of The Jacksonville Bank, a Florida state-chartered bank focusing on the Northeast Florida market. The Jacksonville Bank opened for business on May 28, 1999 and provides a variety of community banking services to businesses and individuals through its five full-service banking offices in Jacksonville, Florida. More information is available at its website at www.jaxbank.com.
The statements contained in this press release, other than historical information, are forward-looking statements, which involve risks, assumptions and uncertainties. The risks, uncertainties and factors affecting actual results include but are not limited to: economic and political conditions, especially in North Florida; competitive circumstances; bank regulation, legislation, accounting principles and monetary policies; the interest rate environment; success in minimizing credit risk and nonperforming assets; and technological changes. The Company’s actual results may differ significantly from the results discussed in forward-looking statements. Investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The Company does not undertake, and specifically disclaims, any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Additional information regarding risk factors can be found in the Company’s filings with the Securities and Exchange Commission.
Contact Valerie Kendall at 904-421-3051 for additional information.
JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands except per share data)
| | | | | | Three Months Ended | | | | | | | |
| | | March 31 | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| | | 2010 | | | 2009 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | |
| Earnings Summary | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Total interest income | | $ | 5,795 | | | $ | 5,817 | | | $ | 6,081 | | | $ | 5,625 | | | $ | 5,681 | |
| Total interest expense | | | 2,220 | | | | 2,151 | | | | 2,266 | | | | 2,556 | | | | 2,756 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest income | | | 3,575 | | | | 3,666 | | | | 3,815 | | | | 3,069 | | | | 2,925 | |
| Provision for loan losses | | | 2,375 | | | | 1,046 | | | | 1,070 | | | | 1,307 | | | | 938 | |
| | | | | | | | | | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 1,200 | | | | 2,620 | | | | 2,745 | | | | 1,762 | | | | 1,987 | |
| Noninterest income | | | 248 | | | | 230 | | | | 241 | | | | 224 | | | | 146 | |
| Noninterest expense | | | 3,086 | | | | 2,502 | | | | 2,528 | | | | 2,667 | | | | 2,286 | |
| | | | | | | | | | | | | | | | | | | | | |
| Income before income tax | | | (1,638 | ) | | | 348 | | | | 458 | | | | (681 | ) | | | (153 | ) |
| Income tax provision | | | (650 | ) | | | 92 | | | | 133 | | | | (285 | ) | | | (44 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Net income | | $ | (988 | ) | | $ | 256 | | | $ | 325 | | | $ | (396 | ) | | $ | (109 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Summary Average Balance Sheet | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Loans, gross | | $ | 391,073 | | | $ | 392,219 | | | $ | 395,133 | | | $ | 387,232 | | | $ | 382,071 | |
| Securities | | | 25,340 | | | | 26,033 | | | | 26,083 | | | | 26,321 | | | | 30,344 | |
| Other earning assets | | | 10,037 | | | | 941 | | | | 525 | | | | 687 | | | | 696 | |
| Total earning assets | | | 426,450 | | | | 419,193 | | | | 421,741 | | | | 414,240 | | | | 413,111 | |
| Other assets | | | 21,416 | | | | 19,669 | | | | 16,127 | | | | 16,039 | | | | 16,824 | |
| Total assets | | $ | 447,866 | | | $ | 438,862 | | | $ | 437,868 | | | $ | 430,279 | | | $ | 429,935 | |
| Interest bearing liabilities | | $ | 377,395 | | | $ | 364,871 | | | $ | 368,071 | | | $ | 362,346 | | | $ | 359,846 | |
| Other liabilities | | | 43,105 | | | | 46,919 | | | | 42,968 | | | | 40,894 | | | | 42,986 | |
| Shareholders' equity | | | 27,366 | | | | 27,072 | | | | 26,829 | | | | 27,039 | | | | 27,103 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders' equity | | $ | 447,866 | | | $ | 438,862 | | | $ | 437,868 | | | $ | 430,279 | | | $ | 429,935 | |
| | | | | | | | | | | | | | | | | | | | | |
| Per Share Data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic earnings per share | | $ | (0.56 | ) | | $ | 0.15 | | | $ | 0.19 | | | $ | (0.23 | ) | | $ | (0.06 | ) |
| Diluted earnings per share | | $ | (0.56 | ) | | $ | 0.15 | | | $ | 0.19 | | | $ | (0.23 | ) | | $ | (0.06 | ) |
| Basic weighted average shares outstanding | | | 1,748,832 | | | | 1,749,280 | | | | 1,748,586 | | | | 1,748,214 | | | | 1,748,647 | |
| Diluted weighted average shares outstanding | | | 1,748,832 | | | | 1,750,112 | | | | 1,749,074 | | | | 1,748,214 | | | | 1,748,647 | |
| Book value per basic share at end of period | | $ | 14.98 | | | $ | 15.59 | | | $ | 15.42 | | | $ | 15.13 | | | $ | 15.36 | |
| Total shares outstanding at end of period | | | 1,749,526 | | | | 1,749,243 | | | | 1,748,854 | | | | 1,747,599 | | | | 1,748,799 | |
| Closing market price per share | | $ | 10.00 | | | $ | 9.49 | | | $ | 10.75 | | | $ | 10.50 | | | $ | 8.00 | |
| | | | | | | | | | | | | | | | | | | | | |
| Selected Ratios | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Return on average assets | | | -0.89 | % | | | 0.23 | % | | | 0.29 | % | | | -0.37 | % | | | -0.10 | % |
| Return on average equity | | | -14.64 | % | | | 3.75 | % | | | 4.81 | % | | | -5.87 | % | | | -1.63 | % |
| Average equity to average assets | | | 6.11 | % | | | 6.17 | % | | | 6.13 | % | | | 6.28 | % | | | 6.30 | % |
| Tangible common equity to tangible assets | | | 5.79 | % | | | 6.21 | % | | | 6.13 | % | | | 6.04 | % | | | 6.22 | % |
| Interest rate spread | | | 3.12 | % | | | 3.17 | % | | | 3.28 | % | | | 2.62 | % | | | 2.47 | % |
| Net interest margin | | | 3.40 | % | | | 3.47 | % | | | 3.59 | % | | | 2.97 | % | | | 2.87 | % |
| Allowance for loan losses as a percentage of total loans | | | 1.95 | % | | | 1.75 | % | | | 1.63 | % | | | 1.45 | % | | | 1.29 | % |
| Allowance for loan losses as a percentage of NPL's | | | 102.90 | % | | | 78.38 | % | | | 108.49 | % | | | 38.89 | % | | | 51.74 | % |
| Ratio of net charge offs as a percentage of average loans | | | 1.67 | % | | | 0.66 | % | | | 0.28 | % | | | 0.61 | % | | | 0.74 | % |
| Efficiency Ratio | | | 80.72 | % | | | 64.22 | % | | | 62.33 | % | | | 80.99 | % | | | 74.44 | % |
| | | March 31 | | | December 31, | | | September 30, | | | June 30, | | | March 31, | |
| Summary Balance Sheet | | 2010 | | | 2009 | | | 2009 | | | 2009 | | | 2009 | |
| | | | | | | | | | | | | | | | |
| Cash and cash equivalents | | $ | 19,217 | | | $ | 5,647 | | | $ | 5,496 | | | $ | 9,345 | | | $ | 6,847 | |
| Securities | | | 26,513 | | | | 25,371 | | | | 26,955 | | | | 25,571 | | | | 29,035 | |
| Loans,net | | | 382,983 | | | | 384,133 | | | | 389,082 | | | | 384,817 | | | | 378,755 | |
| All other assets | | | 23,662 | | | | 23,660 | | | | 18,410 | | | | 17,725 | | | | 17,350 | |
| Total assets | | $ | 452,375 | | | $ | 438,811 | | | $ | 439,943 | | | $ | 437,458 | | | $ | 431,987 | |
| Deposit accounts | | $ | 385,944 | | | $ | 370,635 | | | $ | 321,603 | | | $ | 321,864 | | | $ | 344,506 | |
| All other liabilities | | | 40,220 | | | | 40,908 | | | | 91,380 | | | | 89,161 | | | | 60,626 | |
| Shareholders' equity | | | 26,211 | | | | 27,268 | | | | 26,960 | | | | 26,433 | | | | 26,855 | |
| Total liabilities and shareholders' equity | | $ | 452,375 | | | $ | 438,811 | | | $ | 439,943 | | | $ | 437,458 | | | $ | 431,987 | |
