Exhibit 99.1 [JACKSONVILLE BANCORP, INC. LOGO]
JACKSONVILLE BANCORP ANNOUNCES SECOND QUARTER 2003 RESULTS
JACKSONVILLE, Fla., August 15, 2003 - JACKSONVILLE BANCORP, INC. (NASDAQ: JAXB)
today reported:
o Quarterly earnings of $198,000, increasing 110% over second quarter
2002 earnings of $94,000
o Assets at $164.9 million - increase of 40%, or $47.2 million, over
second quarter 2002
o Interest income for quarter up 34%, with interest expense up only
18% over prior year period
o Year to date net interest income up 52% from prior year
o Loans increase 49% and deposits 44% over second quarter 2002
o Loan loss reserve increases to 1.22% of total loans
Jacksonville Bancorp, Inc., reported quarterly net earnings of $198,000, or
$0.13 per basic and diluted share, in the second quarter of 2003, increasing
from $94,000 or $0.07 per share for the second quarter 2002. Earnings on a year
to date basis of $251,000 reflect a 74% increase from the 2002 year to date
total of $144,000.
"Our rate of growth continues to be remarkable and is an excellent indicator of
how well The Jacksonville Bank has been accepted by the Jacksonville community,"
stated Gilbert J. Pomar, III, President and Chief Executive Officer. "The solid
financial results and incredible growth of this quarter further demonstrate our
confidence that we are building a strong banking force in Jacksonville. We are
still actively negotiating workout agreements with the two borrowers noted as
issues, and for which specific reserves were recorded, in the first quarter of
2003. While these negotiations are focused on maximizing collection of the
debts, we also continued to strengthen the loan loss reserve."
Second quarter 2003 net interest income increased 45% to $1,376,000, from
$947,000 in 2002, primarily due to significant new loan volume. Net interest
margin remained relatively steady at 3.82%, as interest income for the quarter
increased to $2,157,000, up 34% from $1,611,000 for the 2002 period, and average
net loans increased 53% from $84.0 million to $128.6 million. Interest expense
rose just 18%, from $664,000 to $781,000, with a 53% increase in average
interest bearing liabilities. The provision for loan losses increased 61% to
$222,000 for the quarter from $138,000 for second quarter 2002, reflecting both
the rapid growth of the portfolio and the further strengthening of the reserve.
Noninterest income increased by 72% over second quarter 2002, as decreases
created by the Company's changes in the bankcard merchant program become less
significant over time. Noninterest expense increased by 34% over the prior year
period, due primarily to increased compensation, professional fees, annual
meeting, and other costs necessary to support asset growth and further advance
the Company's presence.
Total assets increased 40% to $164.9 million at June 30, 2003, from $117.7
million at June 30, 2002. Total loans and deposits increased 49% and 44%,
respectively, with net loans of $134.3 million at June 30, 2003, up from $90.3
million at June 30, 2002, and deposits rising to $151.5 million from $105.3
million. Further, in comparing second quarter 2003 to first quarter 2003, assets
increased by $17.6 million, with loans and deposits increasing $11.9 and $21.4
million respectively.
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 in May 1999 and
provides a variety of community banking services to businesses and individuals
in Jacksonville, Florida. More information is available at the bank's 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: our relatively limited operating
history; 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 can be found regarding risk factors
in the Company's filings with the Securities and Exchange Commission.
JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
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2003 2002 2003 2002
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Earnings Summary
- ----------------
Total interest income .......................................... $ 2,157 $ 1,611 $ 4,134 $ 3,003
Total interest expense ......................................... 781 664 1,514 1,276
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Net interest income ......................................... 1,376 947 2,620 1,727
Provision for loan losses ...................................... 222 138 578 245
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Net interest income after provision for loan losses ......... 1,154 809 2,042 1,482
Noninterest income ............................................. 188 109 340 270
Noninterest expense ............................................ 1,025 767 1,980 1,521
---------- ---------- ---------- ----------
Income before income tax .................................... 317 151 402 231
Income tax provision ........................................... 119 57 151 87
---------- ---------- ---------- ----------
Net income .................................................. $ 198 $ 94 $ 251 $ 144
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Summary Average Balance Sheet
- -----------------------------
Loans, net ..................................................... $ 128,582 $ 84,044 $ 121,359 $ 78,857
Securities ..................................................... 14,619 9,447 14,237 8,778
Other earning assets ........................................... 1,129 1,614 1,784 1,795
---------- ---------- ---------- ----------
Total earning assets ........................................ 144,330 95,105 137,380 89,430
Other assets ................................................... 8,783 8,620 8,666 8,863
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Total assets ................................................ $ 153,113 $ 103,725 $ 146,046 $ 98,293
========== ========== ========== ==========
Interest bearing liabilities ................................... $ 121,279 $ 79,222 $ 115,468 $ 75,508
Other liabilities .............................................. 18,945 13,554 17,746 13,536
Shareholders' equity ........................................... 12,889 10,949 12,832 9,249
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Total liabilities and shareholders' equity .................. $ 153,113 $ 103,725 $ 146,046 $ 98,293
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Per Share Data
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Basic earnings per share ....................................... $ 0.13 $ 0.07 $ 0.17 $ 0.12
Diluted earnings per share ..................................... $ 0.13 $ 0.07 $ 0.17 $ 0.12
Basic weighted average shares outstanding ...................... 1,467,066 1,363,467 1,467,066 1,202,421
Diluted weighted average shares outstanding .................... 1,495,281 1,367,461 1,493,982 1,202,421
Total shares outstanding at end of period ...................... 1,467,066 1,467,066 1,467,066 1,467,066
Closing market price per share ................................. $ 12.75 $ 11.05 $ 12.75 $ 11.05
Selected Ratios
- ---------------
Return on average assets ....................................... 0.52% 0.36% 0.35% 0.30%
Return on average equity ....................................... 6.16% 3.44% 3.94% 3.14%
Average equity to average assets ............................... 8.42% 10.56% 8.79% 9.41%
Interest rate spread ........................................... 3.41% 3.43% 3.43% 3.36%
Net interest margin ............................................ 3.82% 3.99% 3.85% 3.89%
Allowance for loan losses as a percentage of total loans ....... 1.22% 0.99% 1.22% 0.99%
Net charged off loans as a percentage of average loans ......... 0.00% 0.00% 0.03% 0.00%
June 30,
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Summary Balance Sheet 2003 2002
- --------------------- -------- --------
Cash and cash equivalents ............................ $ 10,559 $ 11,788
Securities ........................................... 14,823 10,275
Loans, net ........................................... 134,309 90,302
All other assets ..................................... 5,240 5,382
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Total assets ...................................... $164,931 $117,747
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Deposit accounts ..................................... $151,518 $105,297
All other liabilities ................................ 472 393
Shareholders' equity ................................. 12,941 12,057
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Total liabilities and shareholders' equity ........ $164,931 $117,747
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