JACKSONVILLE BANCORP ANNOUNCES
RECORD EARNINGS
JACKSONVILLE, FLA., October 24/PRNewswire-First Call/--Jacksonville Bancorp,
Inc. (NASDAQ: JAXB), holding company for The Jacksonville Bank, announced today
that for the third quarter in 2007, the Company had record earnings of $781
thousand, compared to $677 thousand in 2006. Earnings per diluted share were
$0.43, compared to $0.37, an increase of 16.2% over the third quarter 2006.
For the first nine months of 2007, Jacksonville Bancorp reported record earnings
of $2.0 million, or $1.11 per diluted share, an increase of 7.7% and 6.7%,
respectively, over the same 2006 period. Compared to second quarter 2007, third
quarter net income increased 12.5%, while diluted earnings per share rose $0.05,
or 13.2%. Gilbert J. Pomar, III, Jacksonville Bancorp's CEO and President,
stated, "The Company is especially proud of these results when so many in our
industry are facing difficult times. Our ongoing commitment to organic growth
and asset quality has served us well. We're also beginning to see results from
our `Deliver the Bank' initiative, which is focused on core deposit growth."
Total assets were $384 million at September 30, 2007, compared to $326 million
at December 31, 2006 and $319 million at September 30, 2006. Period-end loans
increased by $53 million, or 19% (25% annualized), for the nine-month period
from December 31, 2006, and by $65 million, or 24%, from September 30, 2006.
Deposits increased by $39 million, or 15%, from September 30, 2006. The Company
remains committed to its strategy designed to attract and retain customer
relationships. Earning assets as a percentage of total assets remained constant
at 96.0% for both periods.
Credit quality remains healthy, with non-performing loans at 0.16% of total
loans outstanding at quarter-end and net charge-offs of 0.03% and 0.02% of
average loans for the three- and nine-month periods, respectively. The allowance
for loan losses as a percentage of loans was 0.91% at September 30, 2007,
compared to 0.93% a year earlier. The decrease is a result of the quality and
strength of the loan portfolio and management's analysis of the adequacy of the
reserve which would be required to absorb estimated probable losses in the
Company's loan portfolio. "Recent news from the financial sector has been
focused on the sub-prime residential market, the residential construction
industry, and acquisition and development lending. Jacksonville Bancorp made a
conscious decision at inception to not enter these business lines which has
served us well and, consequently, these issues have not affected our Company,"
said Mr. Pomar.
Jacksonville Bancorp's net interest income for the quarter increased 11.1% over
the third quarter of 2006, while net interest income for the first nine months
of 2007 increased 11.7% over the same period of 2006. The increase reflects the
impact of strong organic loan growth which offset a net interest margin that has
narrowed reflective of the competitive financial markets.
Noninterest income remained relatively flat compared to the third quarter 2006
and increased by 10.8% for the nine months ended September 30, 2007, compared to
the previous year. The increase in the nine-month period is primarily the result
of increased deposit service charges and mortgage origination income.
Noninterest expense increased by 17.8%, compared to the quarter ended September
30, 2006. For the nine months ended September 30, 2007, noninterest expense
increased by 13.9%. The increases were driven primarily by the incremental de
novo branching expenses and an increase in the assessment rates charged to
financial institutions for FDIC insurance. The new assessment rates, which took
effect on January 1 of this year, primarily impact financial institutions not in
existence on December 31, 1996.
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 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: 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.
Contact Valerie Kendall at 904-421-3051 for additional information.
JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------- ---------------------------
2007 2006 2007 2006
---------- ---------- ---------- ----------
Earnings Summary
- ----------------
Total interest income .......................................... $ 7,134 $ 5,782 $ 19,789 $ 15,993
Total interest expense ......................................... 3,931 2,898 10,665 7,827
---------- ---------- ---------- ----------
Net interest income ......................................... 3,203 2,884 9,124 8,166
Provision for loan losses ...................................... 32 138 480 406
---------- ---------- ---------- ----------
Net interest income after provision for loan losses ......... 3,171 2,746 8,644 7,760
Noninterest income ............................................. 284 290 861 777
Noninterest expense ............................................ 2,288 1,943 6,344 5,568
---------- ---------- ---------- ----------
Income before income tax .................................... 1,167 1,093 3,161 2,969
Income tax provision ........................................... 386 416 1,143 1,095
---------- ---------- ---------- ----------
Net income .................................................. $ 781 $ 677 $ 2,018 $ 1,874
========== ========== ========== ==========
Summary Average Balance Sheet
- -----------------------------
Loans, gross.................................................... $ 330,949 $ 266,615 $ 310,169 $ 254,143
Securities ..................................................... 30,820 27,598 29,181 27,148
Other earning assets ........................................... 1,094 1,056 881 4,030
---------- ---------- ---------- ----------
Total earning assets ........................................ 362,863 295,269 340,230 285,321
Other assets ................................................... 13,042 14,147 13,716 13,597
---------- ---------- ---------- ----------
Total assets ................................................ $ 375,905 $ 309,416 $ 353,946 $ 298,918
========== ========== ========== ==========
Interest bearing liabilities ................................... $ 315,106 $ 253,474 $ 294,073 $ 242,108
Other liabilities .............................................. 36,140 34,593 35,867 36,124
Shareholders' equity ........................................... 24,659 21,349 24,007 20,686
---------- ---------- ---------- ----------
Total liabilities and shareholders' equity .................. $ 375,905 $ 309,416 $ 353,947 $ 298,918
========== ========== ========== ==========
Per Share Data
- --------------
Basic earnings per share ....................................... $ 0.45 $ 0.39 $ 1.16 $ 1.09
Diluted earnings per share ..................................... $ 0.43 $ 0.37 $ 1.11 $ 1.04
Basic weighted average shares outstanding ...................... 1,745,143 1,725,494 1,743,585 1,721,965
Diluted weighted average shares outstanding .................... 1,815,584 1,816,599 1,819,637 1,808,685
Book value per basic share at end of period .................... 14.56 12.82 14.56 12.82
Total shares outstanding at end of period ...................... 1,747,981 1,728,845 1,747,981 1,728,845
Closing market price per share ................................. $ 27.75 $ 35.00 $ 27.75 $ 35.00
Selected Ratios
- ---------------
Return on average assets ....................................... 0.82% 0.87% 0.76% 0.84%
Return on average equity ....................................... 12.57% 12.58% 11.24% 12.11%
Average equity to average assets ............................... 6.56% 6.90% 6.78% 6.92%
Interest rate spread ........................................... 2.85% 3.23% 2.93% 3.17%
Net interest margin ............................................ 3.50% 3.88% 3.59% 3.83%
Allowance for loan losses as a percentage of total loans ....... 0.91% 0.93% 0.91% 0.93%
Net charged off loans as a percentage of average loans ......... 0.03% 0.00% 0.02% 0.05%
Efficiency ratio ............................................... 65.62% 61.22% 63.54% 62.26%
September 30,
---------------------
Summary Balance Sheet 2007 2006
- --------------------- -------- --------
Cash and cash equivalents ............................ $ 5,092 $ 9,048
Securities ........................................... 32,846 28,764
Loans, net ........................................... 333,677 268,408
All other assets ..................................... 12,676 12,604
-------- --------
Total assets ...................................... $384,290 $318,825
======== ========
Deposit accounts ..................................... $299,506 $260,136
All other liabilities ................................ 59,328 36,530
Shareholders' equity ................................. 25,457 22,158
-------- --------
Total liabilities and shareholders' equity ........ $384,291 $318,823
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