Jacksonville Bancorp Announces Record Quarterly and Annual Earnings

JACKSONVILLE, Fla., Jan. 22 /PRNewswire-FirstCall/ -- Jacksonville
Bancorp, Inc. (Nasdaq: JAXB) announced today that the Company had record
earnings of $3.0 million in 2007, an increase of 17% over the $2.5 million
recorded in 2006. The Company earned $1.63 per diluted share, a 17% increase
over the $1.39 recorded in the previous year. It was also a year of record
growth as the Company grew assets $66.4 million. The book value per basic
share of the Company increased 15% from $13.28 per share to $15.23 per share.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO )
Diluted earnings per share were $0.52 in the fourth quarter of 2007,
compared to $0.36 per share in the fourth quarter of 2006, a 44% increase.
Net income for the fourth quarter of 2007 was $940 million, a 45% increase
over net income for the fourth quarter of 2006.
Gilbert J. Pomar, III, Jacksonville Bancorp, Inc. President and CEO,
stated, "The Company is especially pleased with achieving asset growth of 20%,
EPS growth of 17%, and having only 0.17% in nonperforming loans given the
current banking environment."
Total assets were $392.0 million at year end, compared to $325.6 million
at the end of 2006. Net loans increased 21% to $339.3 million as of December
31, 2007, compared to $281.0 million as of December 31, 2006. Total deposits
increased 2% to $288.9 million, compared to $282.6 million as of December 31,
2006. The additional funding required to support the earning asset growth was
provided through the Company's Federal Home Loan Bank line.
Credit quality remains healthy, with nonperforming loans at 0.17% of total
assets, compared to 0.26% at December 31, 2006. Net charge-offs were 0.01% of
average loans for the year. The allowance for loan losses as a percentage of
loans was 0.91% at December 31, 2007, relatively unchanged from 0.92% at the
end of 2006. The reserve amount is based on 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. The Company recorded $62,000 in net provision expense during the
fourth quarter, compared to $140,000 that was recorded in the fourth quarter
of 2006. The decrease was due to management's assessment of local and
national economic conditions and the underlying strength of the loan
portfolio.
"Our exceptional credit quality continues to stand out in the industry.
Since our inception, the Bank determined it is prudent to be out of the
residential construction, for-sale housing, and acquisition and development
lending business except for very special circumstances. That decision
continues to serve us well," said Mr. Pomar.
Net interest income increased 12% over 2006, driven by a strong increase
in average loans. The net interest margin for 2007 was 3.56%, compared to
3.81% for 2006. The net interest margin compression was driven primarily by
increased funding costs due to a higher percentage of certificates of
deposits, an inverted yield curve for much of 2007, and intense competition
for deposits in the market.
Noninterest income for 2007 grew 13% over 2006 primarily due to a strong
increase in NSF fees. Noninterest income increased by 20% over the fourth
quarter 2006 and 14% over the third quarter of 2007; the quarterly increases
were primarily due to an increase in NSF and loan referral fees.
Noninterest expense for 2007 increased $912 thousand, or 12%, over the
prior year. During 2007, the Company fully absorbed the cost of its fifth
branch which opened for business in June of 2006. The efficiency ratio
remained flat at 62.5% for the years ended December 31, 2007 and 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 with approximately $392 million in assets and five full-service
banking offices. 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.

JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands except per share data)

Three Months Twelve Months
Ended Ended
December 31, December 31,
2007 2006 2007 2006
Earnings Summary

Total interest
income $ 7,019 $ 6,024 $ 26,808 $ 22,017
Total interest
expense 3,754 3,117 14,419 10,945

Net interest income 3,265 2,907 12,389 11,072
Provision for loan
losses 62 140 542 546

Net interest income
after provision
for loan losses 3,203 2,767 11,847 10,526
Noninterest income 323 270 1,184 1,047
Noninterest expense 2,141 2,006 8,485 7,573

Income before income
tax 1,385 1,031 4,546 4,000
Income tax provision 445 382 1,588 1,477

Net income $ 940 $ 649 $ 2,958 $ 2,523

Summary Average
Balance Sheet

Loans, gross $ 338,891 $ 278,640 $ 317,409 $ 260,318
Securities 32,960 28,075 30,134 27,382
Other earning assets 709 824 838 3,222

Total earning assets 372,560 307,540 348,380 290,922
Other assets 14,292 13,859 13,861 13,662

Total assets $ 386,852 $ 321,398 $ 362,241 $ 304,584

Interest-bearing
liabilities $ 321,569 $ 264,961 $ 301,003 $ 247,868
Other liabilities 39,366 33,879 36,749 35,558
Shareholders' equity 25,917 22,558 24,489 21,158

Total liabilities
and shareholders'
equity $ 386,853 $ 321,398 $ 362,241 $ 304,584

Per Share Data

Basic earnings
per share $ 0.54 $ 0.37 $ 1.70 $ 1.46
Diluted earnings
per share $ 0.52 $ 0.36 $ 1.63 $ 1.39
Basic weighted
average shares
outstanding 1,747,281 1,739,364 1,744,512 1,726,350
Diluted weighted
average shares
outstanding 1,807,570 1,821,247 1,816,150 1,812,890
Book value per
basic share
at end of period $ 15.23 $ 13.28 $ 15.23 $ 13.28
Total shares
outstanding at
end of period 1,747,981 1,741,688 1,747,981 1,741,688
Closing market
price per share $ 19.90 $ 33.10 $ 19.90 $ 33.10

Selected Ratios

Return on average
assets 0.96% 0.80% 0.82% 0.83%
Return on average
equity 14.38% 11.41% 12.08% 11.92%
Average equity
to average assets 6.70% 7.02% 6.76% 6.95%
Interest rate spread 2.84% 3.10% 5.50% 3.15%
Net interest margin 3.48% 3.75% 3.56% 3.81%
Allowance for loan
losses as a
percentage
of total loans 0.91% 0.92% 0.91% 0.92%
Ratio of net
charge-offs
as a percentage
of average loans 0.01% 0.05% 0.01% 0.05%
Efficiency Ratio 59.68% 63.14% 62.51% 62.49%

December 31,
Summary Balance Sheet 2007 2006

Cash and cash
equivalents $ 6,035 $ 4,478
Securities 33,415 27,180
Loans, net 339,265 281,006
All other assets 13,247 12,911

Total assets $ 391,962 $ 325,575

Deposit accounts $ 288,893 $ 282,626
All other liabilities 76,440 19,811
Shareholders' equity 26,629 23,138

Total liabilities
and shareholders'
equity $ 391,962 $ 325,575

SOURCE Jacksonville Bancorp, Inc.

Valerie Kendall of Jacksonville Bancorp, Inc., +1-904-421-3051