Profile: Jacksonville Bancorp Inc (JAXB.O)
20 Aug 2014
Jacksonville Bancorp, Inc. (Bancorp), incorporated on October 24, 1997, is a bank holding company that owns 100% interest of The Jacksonville Bank (the Bank). The Bank is a Florida state-chartered commercial bank. The Bank conducts its business from its main office and six branches, two of which are located in Jacksonville and one of which is located in each of Illinois communities: Virden, Litchfield, Chapin, and Concord. The Bank is a community-oriented savings bank engaged primarily in the business of attracting retail deposits from the general public in its market area and using such funds, together with borrowings and funds from other sources, to originate mortgage loans secured by one- to four-family residential real estate, commercial and agricultural real estate and home equity loans. The Bank also originates commercial and agricultural business loans and consumer loans. Additionally, the Bank invest in United States Government agency securities, bank-qualified, general obligation municipal issues, and mortgage-backed securities issued or guaranteed by the United States Government or agencies thereof. The Bank maintains a portion of its assets in liquid investments, such as overnight funds at the Federal Home Loan Bank.
The Bank’s loan portfolio, as of December 31, 2012, consisted of One- to Four-Family Mortgage Loans, Commercial Real Estate Loans, Agricultural Real Estate Loans, Home Equity Loans, Commercial Business Loans, Commercial Business Loans and Consumer Loans. One- to four-family, owner-occupied, residential mortgage loans secured by property located in our market area. It generates loans through its marketing efforts, existing customers and referrals, real estate brokers, builders and local businesses. It generally limits its one- to four-family loan originations to the financing of loans secured by properties located within its market area. As on December 31, 2012, $41.4 million, or 23.8% of its net loan portfolio, was invested in mortgage loans secured by one- to four-family residences. It originates and purchases commercial real estate loans. At December 31, 2012, $31.0 million, or 17.8%, of our net loan portfolio consisted of commercial real estate loans.
It originates and purchases agricultural real estate loans. As on December 31, 2012, $37.4 million, or 21.5% of its net loan portfolio, consisted of agricultural real estate loans. As on December 31, 2012, home equity loans totaled $12.7 million, or 7.4%, of its net loan portfolio. Its home equity loans and lines of credit are generally secured by the borrower’s principal residence. It originate commercial business loans to borrowers located in its market area which are secured by collateral other than real estate or which can be unsecured. It originates agricultural business loans to borrowers located in its market area which are secured by collateral other than real estate or which can be unsecured.
The Bank’s portfolio consists primarily of mortgage-backed securities, municipal bonds and U.S. government and agency securities all of which are classified as available for sale. Investments in municipal bonds is correlated with Jacksonville Savings Bank’s current level of taxable income, the need for tax-exempt income, and investment in the community. The investment policy also permits investments in certificates of deposit, securities purchased under an agreement to resell, bankers acceptances, commercial paper and federal funds.
Sources of Funds
Deposits and borrowings are its sources of funds for lending and other investment purposes. In addition, It derive funds from the repayment and prepayment of loans and mortgage-backed securities, operations, sales of loans into the secondary market, and the sale, call, or maturity of investment securities. Scheduled loan principal repayments are a relatively stable source of funds, while deposit inflows and outflows and loan prepayments are influenced significantly by general interest rates and market conditions. Other sources of funds include advances from the Federal Home Loan Bank.
Jacksonville Bancorp Inc
Suite 1000, 100 North Laura Stre
JACKSONVILLE FL 32202