Jacksonville Bancorp, Inc. Announces Quarterly Results

JACKSONVILLE, Ill., July 14 /PRNewswire-FirstCall/ -- Jacksonville Bancorp,
Inc. (Nasdaq: JXSB) reported an unaudited net loss for the three months ended
June 30, 2009, of $(73,000), or $(0.04) per share of common stock, basic and
diluted, compared to net income of $424,000, or $0.21 per share of common
stock, basic and diluted, for the three months ended June 30, 2008. The
Company reported unaudited net income of $428,000, or $0.22 per share, basic
and diluted, for the six months ended June 30, 2009, compared to net income of
$787,000, or $0.40 per share, basic and diluted, for the six months ended June
30, 2008.

The Company's results were adversely impacted by the losses associated with
one loan, which resulted in the Bank establishing $1.6 million in provisions
for loan losses during the second quarter of 2009. The $1.5 million increase
in the provision for loan losses over the second quarter of 2008, is primarily
related to the deterioration of one commercial relationship. Losses totaling
$1.2 million were recognized during the second quarter on this credit and
additional reserves of approximately $300,000 were allocated to the allowance
for loan losses to absorb any future losses relating to this credit.
Nonperforming assets represent 0.98% of total assets as of June 30, 2009,
compared to 0.68% at December 31, 2008. The $920,000 increase in
nonperforming assets is primarily attributed to this credit, which accounted
for $861,000 of the increase in nonperforming assets. Notwithstanding the
deterioration in the commercial credit described above, the Company's core
operations continue to improve. The Company's net interest margin improved 57
basis points to 3.28% during the six months ended June 30, 2009 from 2.71%
during the same period of 2008.

Net income decreased $497,000 during the second quarter of 2009, as compared
to the second quarter of 2008, due to increases of $1.5 million in the
provision for loan losses and $59,000 in other expenses, partially offset by
increases of $278,000 in net interest income and $447,000 in other income and
a decrease of $357,000 in income taxes. The increase in net interest income
reflects a greater decrease in interest expense than interest income during
the comparative three month period. We experienced decreases of $324,000 in
interest income and $602,000 in interest expense during the quarter ended June
30, 2009, as compared to the same quarter of 2008. Net interest income has
benefited from a steepening yield curve as lower short-term market rates of
interest resulted in our deposits repricing faster than our loans, which have
yields tied to longer-term rates. Other income increased $447,000 during the
second quarter of 2009 mostly due to increases of $333,000 in gains on sales
of securities and $213,000 in net income from mortgage banking operations,
partially offset by a decrease of $100,000 in commission income. Other
expenses increased $59,000 primarily due to an increase of $219,000 in FDIC
deposit insurance assessments, partially offset by a recovery of $91,000 in
the impairment of mortgage servicing assets.

Net income decreased $359,000 during the six months ended June 30, 2009
compared to the same period of 2008. The decrease in net income is due to
increases of $1.8 million in provisions for loan losses and $135,000 in other
expenses, partially offset by increases of $725,000 in net interest income and
$556,000 in other income and a decrease of $336,000 in income taxes. The
increase in net interest income during the first six months of 2009, compared
to the same period of 2008, is due to the net effect of decreases of $606,000
in interest income and $1.3 million in interest expense. The increase of
$556,000 in other income during this same period is primarily due to increases
of $450,000 in net income on mortgage banking operations and $392,000 in gains
on sales of securities, partially offset by a decrease of $263,000 in
commission income. The increase of $135,000 in other expense was primarily
due to a $319,000 increase in FDIC deposit insurance assessments, partially
offset by a $91,000 recovery in the impairment of mortgage servicing assets
and a $70,000 decrease in data processing expense.

Total assets at June 30, 2009 increased to $295.7 million from $288.3 million
at December 31, 2008. Total deposits at June 30, 2009 were $256.5 million,
compared to $238.2 million at December 31, 2008. Total stockholders' equity
was $23.7 million at June 30, 2009 and $24.4 million at December 31, 2008. At
June 30, 2009, Jacksonville Savings Bank exceeded its applicable regulatory
capital requirements with Tier 1 leverage, Tier 1 risk-based capital, and
total risk-based capital ratios of 7.0%, 10.1%, and 11.3%, respectively.

Jacksonville Bancorp, Inc. is a federally chartered stock holding company.
The Company is headquartered at 1211 West Morton Avenue, Jacksonville,
Illinois. The Company's operations are limited to its ownership of
Jacksonville Savings Bank, an Illinois chartered savings bank, which operates
six branch offices located in Morgan, Macoupin, and Montgomery Counties in
Illinois. All information at and for the periods ended June 30, 2009, has
been derived from unaudited financial information.

This news release contains certain forward-looking statements within the
meaning of the federal securities laws. The Company intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Reform Act of
1995, and is including this statement for purposes of these safe harbor
provisions. Forward-looking statements, which are based on certain
assumptions and describe future plans, strategies and experiences of the
Company, are generally identified by use of the words "believe", "expect",
"intend", "anticipate", "estimate", "project", or similar expressions. The
Company's ability to predict results or the actual effect of future plans or
strategies is inherently uncertain. Factors which could have a material
adverse effect on the operations of the Company and the subsidiaries include,
but are not limited to, changes in: interest rates, general economic
conditions, legislative/regulatory changes, monetary and fiscal policies of
the U.S. Government, including policies of the U.S. Treasury and the Federal
Reserve Board, the quality or composition of the loan or investment
portfolios, demand for loan products, deposit flows, competition, demand for
financial services in the Company's market area and accounting principles and
guidelines. These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements.

SOURCE Jacksonville Bancorp, Inc.

Richard A. Foss, President and CEO, or Diana S. Tone, Chief Financial Officer,
both of Jacksonville Bancorp, Inc., +1-217-245-4111