Exhibit 99.1
JACKSONVILLE BANCORP ANNOUNCES FIRST QUARTER
EARNINGS INCREASE OF 38%
JACKSONVILLE, FLA., April 28/PRNewswire-First Call/--Jacksonville Bancorp, Inc.
(NASDAQ: JAXB) announced today that the Company had first quarter earnings of
$508 thousand, an increase of 38% over the $367 thousand in 2005. The company
earned $0.28 per diluted share, a 40% increase over the $0.20 recorded in the
previous year. Return on average equity was 10.26% compared to 8.31% in 2005, up
23%.
Jacksonville Bancorp, Inc. President and CEO Gilbert J. Pomar, III, stated, "We
are pleased with our first quarter results. Our bank grew $31 million in the
first quarter and has grown almost $74 million in the last 12 months while our
efficiency ratio improved from 70.76% in the first quarter of 2005 to 64.71% in
2006. We were able to attract some large deposits during the quarter supporting
the ongoing growth of our high quality loan portfolio. The Ortega office opened
for business on February 6, 2006 and has exceeded our expectations to date; the
Gate Parkway office should open on or about May 31, 2006."
Net interest income for the quarter increased 22% over the same period of 2005
due primarily to a 23% growth in average earning assets. The net interest margin
was 3.69% for the quarter ended March 31, 2006, compared to 3.73% for the
comparable period one year ago, and 4.06% for the preceding quarter. The
interest margin compression was due primarily to prepayment fee income being
larger in the preceding quarter than in the current quarter.
Total assets were $304.1 million at March 31, 2006, compared to $230.5 million
at March 31, 2005. Net loans increased 27% to $245.7 million as of March 31,
2006, compared to $192.9 million as of March 31, 2005. Total deposits increased
33% to $276.0 million, compared to $208.2 million as of March 31, 2005. Non-time
deposits grew by 60% to $208.4 million, while time deposits declined by 13% from
March 31, 2005.
Credit quality remains healthy and continues to outperform the peer group, with
non-performing loans at 0.09% of total loans outstanding at quarter-end and net
charge-offs at 0.00% of average loans for the quarter. The allowance for loan
losses as a percentage of total average loans was 0.94% at March 31, 2006,
compared to 0.96% a year earlier.
Noninterest income was stable at $214 thousand for the quarter ended March 31,
2006 while noninterest expense was $1.8 million, up 9% over the prior year.
During the first quarter, the Company fully absorbed additional expenses related
to its fourth branch, which opened for business on February 6, 2006, and
occupancy expenses related to its fifth branch, which is targeted to open during
the second quarter of 2006.
"More and more Jacksonville families and businesses are trusting The
Jacksonville Bank for their depository and lending needs. We believe this trend
will accelerate as we become more convenient through our expanding office
network," added Mr. Pomar.
A more detailed summary of the operating performance and financial condition
through March 31, 2006 will be available in the forthcoming 10-Q scheduled to be
filed with the Securities and Exchange Commission on or before May 15, 2006.
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 for per share data)
Three Months Ended Three Months Ended
March 31, March 31,
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2006 2005
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Earnings Summary
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Total interest income $ 4,855 $ 3,356
Total interest expense $ 2,363 $ 1,312
Net interest income $ 2,492 $ 2,044
Provision for loan losses $ 152 $ 64
Net interest income after provision for loan losses $ 2,340 $ 1,980
Noninterest income $ 214 $ 223
Noninterest expense $ 1,751 $ 1,604
Income before income tax $ 803 $ 599
Income tax provision $ 295 $ 232
Net income $ 508 $ 367
Summary Average Balance Sheet
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Loans, gross $ 239,565 $ 195,635
Securities $ 25,063 $ 24,794
Other earning assets $ 9,399 $ 1,872
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Total earning assets $ 274,027 $ 222,301
Other assets $ 13,182 $ 7,761
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Total assets $ 287,209 $ 230,062
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Interest bearing liabilities $ 228,752 $ 182,263
Other liabilities $ 38,368 $ 29,892
Shareholders' equity $ 20,089 $ 17,907
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Total liabilities and shareholders' equity $ 287,209 $ 230,062
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Per Share Data
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Basic earnings per share $ 0.30 $ 0.21
Diluted earnings per share $ 0.28 $ 0.20
Book value per basic share at end of period $ 11.86 $ 10.51
Basic weighted average shares outstanding 1,718,435 1,708,109
Diluted weighted average shares outstanding 1,804,974 1,793,078
Total shares outstanding at end of period 1,719,852 1,707,666
Closing market price per share $ 32.00 $ 29.95
Selected Ratios
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Return on average assets 0.72% 0.65%
Return on average equity 10.26% 8.31%
Average equity to average assets 6.99% 7.78%
Interest rate spread 3.00% 3.20%
Net interest margin 3.69% 3.73%
Allowance for loan losses as a percentage of
total average loans 0.94% 0.96%
Net charged off loans as a percentage of average loans 0.00% 0.00%
March 31, March 31,
2006 2005
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Summary Balance Sheet
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Cash and cash equivalents $ 19,180 $ 7,295
Securities 27,280 24,363
Loans, net 245,694 192,903
All other assets 11,918 5,936
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Total assets $ 304,072 $ 230,497
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Deposit accounts $ 275,950 $ 208,181
All other liabilities 7,722 4,372
Shareholders' equity 20,400 17,944
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Total liabilities and shareholders' equity $ 304,072 $ 230,497
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