DEAR SHAREHOLDERS AND FRIENDS:
We are pleased to provide this overview of our results for the first and second quarters of 2011—the first two quarters following our merger with Atlantic BancGroup, Inc. and Oceanside Bank. The merger was consummated on November 16, 2010. We rapidly integrated the operating systems and management teams and in December began operating as one bank. Financial highlights for the quarter and year so far include:
Net income of $1.1 million for the second quarter
Net income of $1.5 million for the six-month period 14% increase in noninterest bearing deposits
Five straight quarters of improving net interest margin Net interest margin of 4.45% for the second quarter
While we remain diligent in the careful monitoring and aggressive management of our loan portfolio in this very difficult banking environment, our primary focus remains serving the needs of our customers. During the first six months of this year, we have made a number of organizational, product and process changes that will assist us in serving our existing customers and reaching out for new relationships. We are well positioned to focus on our core mission of providing extraordinary service to Jacksonville businesses and individuals.
Your Bank, today, is the largest and strongest community bank doing business in the Jacksonville market; our strategy to enhance shareholder value through growth and favorable operating performance is central to our operating philosophy. Every one of us at The Jacksonville Bank looks forward to demonstrating our strong commitment to being the very best bank in town. Thank you for your continued support.
Sincerely,
Price W. Schwenck Donald E. Roller
President & CEO Chairman of the Board
JACKSONVILLE BANCORP, INC .
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands) June 3 0,
2011 2010
ASSETS
Cash and due from financial institutions $ 12,612 $ 6,659
Federal funds sold 11,701 16,472
Securities available -for-sale 63,796 25,448
Loans, net of allowance for loan losses 473,449 373,885
Premises and equipment, net 6,730 3,406
Bank-owned life insurance 9,404 9,037
Federal Home Loan Bank stock, at cost 3,060 3,047
Real estate owned, net 3,172 6,089
Deferred income taxes 8,088 2,729
Accrued interest receivable 2,795 1,978
Good will 14,210 -
Other intangible assets, net 2,069 -
Other assets 4,178 3,478
Total assets $ 615,264 $ 452,228
LIABILITIES
Deposits
Noninterest bearing demand deposits 82,358 40,843
Money market, NOW and savings deposits 203,254 127,317
Time deposits 235,621 223,538
Total deposits 521,233 391,698
Loans from related parties 2,000 -
FHLB advances and other borrowings 18,750 20,000
Subordinated debentures 15,994 14,550
Accrued expenses and other liabilities 2,712 949
Total liabilities $ 560,689 $ 427,197
SHAREHOLDERS’ EQUITY
Preferred stock $—$ -
Common stock 59 18
Additional paid -in capital 55,358 18,678
Retained earnings ( deficit) (1,670) 6,306
Treasury stock, shares -(1 2)
Accumulated other comprehensive income( loss) 828 41
Total shareholders ‘ equity $ 54,575 $ 25,031
Total liabilities and share holders’ equity $ 615,264 $ 452,228
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended
June 30, June 3 0,
($ in thousands, except per share amounts ) 2011 201 0 2011 2010
Interest in come $ 8,105 $ 5,7 49 $ 15,845 $ 11,544
Interest expense 1,820 2,2 22 3,684 4,4 42
Net interest in come 6,285 3,5 27 12,161 7,1 02
Provision for loan losses 1,109 1,9 20 3,038 4,2 95
Noninterest income 404 286 800 534
Noninterest expense 4,651 3,4 43 8,901 6,5 29
In come tax benefit (1 19)(5 58)(465)(1 ,208)
Net income( loss) $ 1,048 $(9 92) $ 1,487 $(1 ,980)
Diluted earnings (loss) per share $ 0. 18 $(0.57) $ 0.25 $(1 .13)
FINANCIAL HIGHLIGHTS
As of and for the
Six Months Ended
June 30,
($ in thousands, except per share amounts ) 2011 2010
Loans, gross $ 485 ,4 42 $ 382,133
Allowance for loan losses 11,993 8,248
Deposits 521 ,2 33 391,698
Total assets 615 ,2 64 452,228
Share holders ‘ equity 54,575 25,031
Net income( loss) 1,4 87(1,980)
Net interest margin 4.25% 3.33%
Shares outstanding—end of period 5,889 ,8 22 1,750,437
Book value per share 9.2 7 14 .30
Tangible book value per share 6.5 0 14 .30
Diluted weighted average shares outstanding 5,890 ,5 84 1,749,140
Diluted earnings (loss) per share 0.2 5(1 .1 3)
QUARTERLY COMPARISON
As of Quarter Ended
($ in thousands, except per share amounts ) 2Q 2011 1Q 2011 4Q2 010 3Q 2010 2Q 2010
Net income( loss) $ 1, 048 $ 439 $ (9,114) $ (349) $( 992)
Net interest margin 4.45% 4.0 6% 3.77% 3.61% 3.27%
Diluted earnings (loss) per share 0.18 0.07(2 . 42)(0 .20)(0 .5 7)
Average assets 613,244 632,818 552,693 435,337 453,328
Average deposits 517,980 535,411 461,732 370,722 387,839
Average loans, net of allowance for loan losses 482,999 504,471 443,267 373,041 379,708
Average share holders’ equity 53,210 52,29 5 43 ,1 43 25,203 26,172
Average share holders’ equity/average assets 8.68% 8.2 6% 7.81% 5.79% 5.77%
Book value per share at end of period 9.27 8.96 8.81 14.07 14 .30
Tangible book value per share at end of period 6.50 6.27 6.28 14.07 14 .30
Shares outstanding at end of period 5,889, 822 5,888,809 5,888,809 1,750,437 1,750,437
Diluted weighted average shares outstanding 5,891, 030 5,890,306 3,761,970 1,750,197 1,749,443
COMPANY INFORMATION
Board of Directors Executive Officers Stock Transfer Agent
Inquiries regarding stock
Donald E. Roller Price W. Schwenck transfers, lost certificates
Chairman of the Board President, CEO & Secretary or changes in name and/or
Jacksonville Bancorp, Inc. Jacksonville Bancorp, Inc. and address should be directed
Chairman, CEO & CCO to our stock transfer agent:
Price W. Schwenck The Jacksonville Bank
Chairman of the Board Computershare Investor
The Jacksonville Bank Scott M. Hall Services, LLC
Executive Vice President & CCO 250 Royall Street
Donald F. Glisson, Jr. Jacksonville Bancorp, Inc. and Canton, MA 02021
Chief Executive Officer President & Reg “O” Officer 800.962.4284
Triad Financial Services, Inc. The Jacksonville Bank www.investorcentre.com
James M. Healey Valerie A. Kendall Form 10-K
Owner Executive Vice President & CFO Copies of the Company’s
House & Home Investments, Inc. Jacksonville Bancorp, Inc. and Annual Report on Form 10-K
The Jacksonville Bank are available by visiting our
John C. Kowkabany website at www.jaxbank.com.
Real Estate Investor & Consultant
Committee Chairmen Independent Auditors
R.C. Mills Crowe Horwath LLP
Retired Donald F. Glisson, Jr. 401 East Las Olas Boulevard
Loan Committee Fort Lauderdale, FL 33301
John W. Rose The Jacksonville Bank
Principal Counsel
CapGen Financial LLC R.C. Mills McGuireWoods LLP
Nominating and Corporate 50 North Laura Street
Charles F. Spencer Governance Committee Suite 3300
President, INOC LLC and Jacksonville Bancorp, Inc. Jacksonville, FL 32202
Joshua Development LLC
Donald E. Roller Website
John P. Sullivan Executive Committee www.jaxbank.com
Managing Director Jacksonville Bancorp, Inc.
CapGen Capital Advisors Ticker Symbol
John W. Rose NASDAQ: JAXB
Gary L. Winfield Asset/Liability Management Committee
Medical Director The Jacksonville Bank Online Virtual Banking
Memorial Hospital www.jaxbank.com
John P. Sullivan 877.7MY.JAX
Audit Committee
Jacksonville Bancorp, Inc.
Gary L. Winfield
Organization/Compensation Committee
Jacksonville Bancorp, Inc.
Federal Deposit Insurance Corporation
The Jacksonville Bank is a member of the Federal Deposit Insurance Corporation (“FDIC”). This statement has not been reviewed or confirmed for accuracy or relevance by the FDIC.
BANK LOCATIONS
Beach Boulevard Jacksonville Beach
13799-100 Beach Boulevard 1315 Third Street
Jacksonville, Florida 32224 Jacksonville, Florida 32250
Phone: 904.416.3150 Phone: 904.435.3220
Fax: 904.680.0011 Fax: 904.247.9402
Downtown Mandarin
100 North Laura Street 10325 San Jose Boulevard
Jacksonville, Florida 32202 Jacksonville, Florida 32257
Phone: 904.421.9699 Phone: 904.288.8933
Fax: 904.421.3060 Fax: 904.288.8624
Gate Parkway Neptune Beach
7880 Gate Parkway 560 Atlantic Boulevard
Jacksonville, Florida 32256 Neptune Beach, Florida 32266
Phone: 904.899.0420 Phone: 904.435.0550
Fax: 904.899.0424 Fax: 904.247.9205
Intracoastal West Ortega
12740-200 Atlantic Boulevard 4343 Roosevelt Boulevard
Jacksonville, Florida 32225 Jacksonville, Florida 32210
Phone: 904.220.3001 Phone: 904.899.0400
Fax: 904.220.3376 Fax: 904.899.0410
Corporate Headquarters
904.421.3040
Lobby Hours
Mon – Thurs: 9:00 a.m. – 4:00 p.m. Fri: 9:00 a.m. – 5:00 p.m.
Sat: 9:00 a.m. – 12:00 p.m.
(Jacksonville Beach location only)
Drive-Thru Hours
(except Downtown)
Mon – Thurs: 8:00 a.m. – 5:00 p.m. Fri: 8:00 a.m. – 6:00 p.m.
Sat: 9:00 a.m. – 12:00 p.m.
(Jacksonville Beach location only)
Visit our website at www.jaxbank.com
