Exhibit 99.1
JACKSONVILLE BANCORP ANNOUNCES RECORD FOURTH QUARTER 2003 RESULTS
JACKSONVILLE, Fla., February 19, 2004 /PRNewswire-FirstCall/ --
Jacksonville Bancorp, Inc. (Nasdaq: JAXB) today reported:
-- Earnings for 2003 reach record high of $1,004,000, increasing 72% over
2002 earnings of $584,000
-- Quarterly earnings at $508,000 -- increase of 95% over fourth quarter
2002 earnings of $261,000
-- Record EPS for the year of $0.68, up 55% from prior year EPS of $0.44
-- Fourth quarter 2003 EPS at $0.34 -- double the $0.17 EPS for third
quarter 2003
-- Interest income up 30%, with interest expense up only 13% over prior
year
-- Net interest income up 43% from prior year
-- Loans increase 39% and deposits 44% over 2002 year-end
Jacksonville Bancorp, Inc., reported record earnings of $508,000, or
$0.34 per basic and $0.33 per diluted share for the fourth quarter of 2003,
increasing from $261,000 or $0.18 per basic and diluted share for fourth
quarter 2002. Earnings for the year of $1,004,000 reflect a 72% increase over
the 2002 total of $584,000. For the year, earnings of $0.68 per basic and
$0.67 per diluted share represent a 55% increase over the 2002 EPS of
$0.44 per basic and diluted share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO )
"It is a pleasure to report that Jacksonville Bancorp has again posted
record results," stated Gilbert J. Pomar, III, President and Chief Executive
Officer. "The fourth quarter, and, in fact, the year 2003, demonstrated our
ability to handle certain unique situations while continuing to pursue the
quality growth of the bank. Early in the year, we identified two major loan
relationships that evidenced credit concerns. The fourth quarter reflected the
conclusion of the significant issues surrounding these credits. Although these
issues resulted in material charge-offs, the pursuit and resolution of
litigation regarding a contractual matter significantly enhanced our financial
results. We are pleased that we have been able to once again produce record
financial results for our shareholders, while continuing to grow the bank at
this remarkable pace."
Fourth quarter 2003 net interest income increased 31% to $1,504,000, from
$1,150,000 in 2002, primarily due to significant new loan volume. Net interest
margin declined slightly to 3.67%, as interest income for the quarter
increased to $2,300,000, up 22% from $1,880,000 in 2002, with a 40% increase
in average net loans from $102.9 million to $144.3 million. Interest expense
rose only 9% from $730,000 to $796,000, with a 42% increase in average
interest bearing liabilities.
For the year ended December 31, 2003, net interest income increased 43% to
$5,618,000, from the 2002 total of $3,936,000. Net interest margin was down
slightly at 3.77%, as interest income for the year increased to $8,729,000, up
30% from $6,699,000, with a 48% increase in average net loans from
$89.0 million to $131.5 million. Interest expense rose 13%, from $2,763,000 to
$3,111,000, with an increase in average interest bearing liabilities of 48%.
Noninterest income for the year increased 167% over 2002, as proceeds of a
one-time litigation settlement were received. This nonrecurring income of
$850,000 resulted in an increase in net earnings of approximately
$500,000 after consideration of taxes and related expenses. Excluding the
settlement proceeds, noninterest income increased 21% for 2003 over 2002.
Noninterest expense increased by 27% over the 2002 level, as increased
compensation, processing, and advertising costs were necessary to support
growth.
Total assets increased 35% to $176.9 million at December 31, 2003, from
$130.8 million at December 31, 2002. Total loans and deposits increased 39%
and 44%, respectively, with net loans of $151.0 million at December 31, 2003,
up from $108.9 million at December 31, 2002, and deposits rising to
$158.5 million from $110.1 million.
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
in Jacksonville, Florida. More information is available on 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
regarding risk factors can be found 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 Year Ended
December 31, December 31,
------------------------ ------------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
EARNINGS SUMMARY
Total interest
income $ 2,300 $ 1,880 $ 8,729 $ 6,699
Total interest
expense 796 730 3,111 2,763
---------- ---------- ---------- ----------
Net interest income 1,504 1,150 5,618 3,936
Provision for loan
losses 661 101 1,580 443
---------- ---------- ---------- ----------
Net interest income
after provision for
loan losses 843 1,049 4,038 3,493
Noninterest income 1,036 157 1,550 580
Noninterest expense 1,065 789 3,971 3,134
---------- ---------- ---------- ----------
Income before income
tax 814 417 1,617 939
Income tax provision 306 156 613 355
---------- ---------- ---------- ----------
Net income $ 508 $ 261 $ 1,004 $ 584
========== ========== ========== ==========
SUMMARY AVERAGE
BALANCE SHEET
Loans, net $ 144,333 $ 102,878 $ 131,500 $ 89,043
Securities 17,916 12,439 15,956 10,153
Other earning assets 302 1,373 1,510 1,918
---------- ---------- ---------- ----------
Total earning
assets 162,551 116,690 148,966 101,114
Other assets 8,792 8,298 8,733 8,611
---------- ---------- ---------- ----------
Total assets $ 171,343 $ 124,988 $ 157,699 $ 109,725
========== ========== ========== ==========
Interest bearing
liabilities $ 137,138 $ 96,838 $ 125,335 $ 84,672
Other liabilities 21,304 15,684 19,490 14,248
Shareholders' equity 12,901 12,466 12,874 10,805
---------- ---------- ---------- ----------
Total liabilities
and shareholders'
equity $ 171,343 $ 124,988 $ 157,699 $ 109,725
========== ========== ========== ==========
PER SHARE DATA
Basic earnings per
share $ 0.34 $ 0.18 $ 0.68 $ 0.44
Diluted earnings
per share $ 0.33 $ 0.18 $ 0.67 $ 0.44
Basic weighted
average shares
outstanding 1,467,080 1,467,066 1,467,070 1,335,831
Diluted weighted
average shares
outstanding 1,535,031 1,482,235 1,497,885 1,341,844
Total shares
outstanding at
end of period 1,467,166 1,467,066 1,467,166 1,467,066
Closing market
price per share $ 16.40 $ 11.93 $ 16.40 $ 11.93
SELECTED RATIOS
Return on average
assets 1.18% 0.83% 0.64% 0.53%
Return on average
equity 15.62% 8.31% 7.80% 5.40%
Average equity to
average assets 7.53% 9.97% 8.16% 9.85%
Operating efficiency
ratio 41.93% 60.37% 55.40% 69.40%
Interest rate spread 3.31% 3.40% 3.38% 3.37%
Net interest margin 3.67% 3.91% 3.77% 3.89%
Allowance for loan
losses as a
percentage of
total loans 1.10% 1.00% 1.10% 1.00%
Net charged off
loans as a percentage
of average loans 2.34% 0.00% 0.75% 0.00%
December 31,
-----------------------
SUMMARY BALANCE SHEET 2003 2002
-------- --------
Cash and cash equivalents $ 3,894 $ 4,281
Securities 16,830 12,531
Loans, net 150,976 108,933
All other assets 5,167 5,086
-------- --------
Total assets $176,867 $130,831
======== ========
Deposit accounts $158,539 $110,128
All other liabilities 4,921 8,136
Shareholders' equity 13,407 12,567
-------- --------
Total liabilities and shareholders'
equity $176,867 $130,831
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