Exhibit 99.1
JACKSONVILLE BANCORP ANNOUNCES RECORD ANNUAL AND QUARTERLY EARNINGS
JACKSONVILLE, Fla., Feb. 16 /PRNewswire-FirstCall/ -- Jacksonville Bancorp,
Inc. (Nasdaq: JAXB) announced today that the Company had record earnings of $2.2
million in 2005, an increase of 63% over the $1.3 million recorded in 2004. The
company earned $1.21 per diluted share, a 53% increase over the $0.79 recorded
in the previous year. Return on average assets improved from 0.66% reported in
2004 to 0.88% in 2005. Return on average equity was 11.69% compared to 8.84% in
2004, up 32%.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO )
The fourth quarter 2005 also reflected record earnings of $687 thousand
compared to net income of $300 thousand for the fourth quarter of 2004, an
increase of 129%. Diluted earnings per share were $0.38 in the fourth quarter of
2005 compared to $0.16 per share in the fourth quarter of 2004, a 138% increase.
"Jacksonville Bancorp's record performance in 2005 is reflective of the
clear execution of our strategies. We experienced $50 million in growth while
increasing profits through margin improvement, expense control, and maintaining
superior loan quality," stated Gilbert J. Pomar, III, Jacksonville Bancorp, Inc.
President and CEO.
Net interest income for the year increased 33% over 2004, while net interest
income for the fourth quarter of 2005 increased 36% over the same period of
2004, due to strong loan growth and an improved margin. The net interest margin
was 4.06% for the quarter ended December 31, 2005, compared to 3.64% for the
comparable period one year ago, and 3.98% for the preceding quarter. This
improvement is the result of the Company's focus on attracting and retaining
low-cost core deposits as well as benefiting from the rise in short-term rates
by the Federal Reserve Board.
Total assets were $273.0 million at year-end compared to $223.7 million at
the end of 2004. Net loans increased 23% to $232.0 million as of December 31,
2005, compared to $188.1 million as of December 31, 2004. Total deposits
increased 16% to $234.2 million, compared to $201.2 million as of December 31,
2004. Non-time deposits grew by 35% to $169.7 million, while time deposits
declined by 16% from December 31, 2004, the result of the Company's successful
implementation of its strategy to transition into low-cost core deposits.
Credit quality remains healthy and continues to outperform the peer group,
with non-performing loans at 0.33% of loans outstanding at year-end and net
charge-offs at 0.06% of average loans for the year. The allowance for loan
losses as a percentage of loans was 0.94% at December 31, 2005, compared to
0.97% at the end of 2004.
Noninterest income increased by 63% over the fourth quarter 2004 and 26% for
the year ended December 31, 2005. The increase was partially due to income
earned on a $4.5 million Bank Owned Life Insurance contract entered into by the
bank during the second quarter of 2005.
Noninterest expense for 2005 increased $1.0 million, or 19% over the prior
year. During 2005, the Company fully absorbed the cost of 2004 staff additions
and the relocation of the main office and headquarters. Additionally, during the
fourth quarter, the Company began absorbing personnel and occupancy expenses
related to its fourth branch (announced during the third quarter of 2005) which
opened for business on February 6, 2006. A fifth branch is targeted to open
during the second quarter of 2006. The Company's efficiency ratio improved from
68.52% in 2004 to 61.74% in 2005.
"We are pleased with what we have accomplished in just six and a half years
in terms of size, asset quality, net interest margin and the ability to attract
and retain phenomenal bankers. We are in the midst of a very exciting time where
we believe we will take the Company to a new level. We are grateful to our
dedicated employees, to the Jacksonville community and to our customers for
being receptive to a different and better way to bank, and our shareholders for
their continued confidence," added Mr. Pomar.
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
http://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 Three Months Twelve Months Twelve Months
Ended Ended Ended Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
------------ ------------ ------------- -------------
Earnings Summary
- ----------------
Total interest income $ 4,578 $ 3,057 $ 15,748 $ 10,858
Total interest expense 1,972 1,137 6,529 3,928
------------ ------------ ------------- -------------
Net interest income 2,606 1,920 9,219 6,930
Provision for loan
losses 112 -- 481 282
------------ ------------ ------------- -------------
Net interest income
after provision for
loan losses 2,494 1,920 8,738 6,648
Noninterest income 225 138 964 767
Noninterest expense 1,649 1,577 6,287 5,274
------------ ------------ ------------- -------------
Income before income
tax 1,070 481 3,415 2,141
Income tax provision 383 181 1,242 806
------------ ------------ ------------- -------------
Net income $ 687 $ 300 $ 2,173 $ 1,335
============ ============ ============= =============
Summary Average Balance Sheet
- -----------------------------
Loans, gross $ 227,747 $ 181,381 $ 211,456 $ 168,954
Securities 24,553 23,037 24,034 18,722
Other earning assets 2,395 5,547 2,183 8,626
------------ ------------ ------------- -------------
Total earning
assets 254,695 209,965 237,673 196,302
Other assets 12,352 7,508 10,493 6,337
------------ ------------ ------------- -------------
Total assets $ 267,047 $ 217,473 $ 248,166 $ 202,639
============ ============ ============= =============
Interest bearing
liabilities $ 204,671 $ 168,674 $ 194,289 $ 164,481
Other liabilities 42,958 31,180 35,281 23,049
Shareholders' equity 19,418 17,619 18,596 15,109
------------ ------------ ------------- -------------
Total liabilities
and shareholders'
equity $ 267,047 $ 217,473 $ 248,166 $ 202,639
============ ============ ============= =============
Per Share Data
- --------------
Basic earnings per
share $ 0.41 $ 0.17 $ 1.27 $ 0.86
Diluted earnings per
share $ 0.38 $ 0.16 $ 1.21 $ 0.79
Book value per basic
share at end of
period $ 11.57 $ 10.42 $ 11.57 $ 10.42
Basic weighted
average shares
outstanding 1,713,645 1,708,078 1,711,148 1,555,266
Diluted weighted
average shares
outstanding 1,805,658 1,792,035 1,799,674 1,697,734
Total shares
outstanding at end
of period 1,714,716 1,708,366 1,714,716 1,708,366
Closing market price
per share $ 33.15 $ 26.95 $ 33.15 $ 26.95
Selected Ratios
- ---------------
Return on average
assets 1.02% 0.55% 0.88% 0.66%
Return on average
equity 14.04% 6.77% 11.69% 8.84%
Average equity to
average assets 7.27% 8.10% 7.49% 7.46%
Interest rate spread 3.31% 3.11% 3.27% 3.14%
Net interest margin 4.06% 3.64% 3.88% 3.53%
Allowance for loan
losses as a percentage
of total loans 0.94% 0.97% 0.94% 0.97%
Net charged off loans
as a percentage of
average loans 0.03% 0.00% 0.06% 0.07%
Efficiency Ratio 58.25% 76.63% 61.74% 68.52%
December 31,
-----------------------
Summary Balance Sheet 2005 2004
- -------------------------------------------- ---------- ----------
Cash and cash equivalents $ 4,674 $ 6,571
Interest-bearing deposits in other
financial institutions 93 164
Securities 24,261 23,175
Loans, net 232,031 188,137
All other assets 11,985 5,697
---------- ----------
Total assets $ 273,044 $ 223,744
========== ==========
Deposit accounts $ 234,211 $ 201,188
All other liabilities 18,987 4,752
Shareholders' equity 19,846 17,804
---------- ----------
Total liabilities and shareholders' equity $ 273,044 $ 223,744
========== ==========
SOURCE Jacksonville Bancorp, Inc.
-0- 02/16/2006
/CONTACT: Valerie Kendall, Jacksonville Bancorp, +1-904-421-3051/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /
/Web site: http://www.jaxbank.com /
(JAXB)