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Jacksonville Bancorp Announces 2013 Third Quarter Earnings

          Jacksonville Bancorp Announces 2013 Third Quarter Earnings

PR Newswire

JACKSONVILLE, Fla., Nov. 8, 2013

JACKSONVILLE, Fla., Nov. 8, 2013 /PRNewswire/ -- Jacksonville Bancorp, Inc.
(the "Company") (NASDAQ: JAXB), holding company for The Jacksonville Bank (the
"Bank"), announced today net income of $147 thousand for the three months
ended September 30, 2013, compared to a net loss of $10.7 million for the
three months ended September 30, 2012. For the nine months ended September
30, 2013, the Company recorded net income of $375 thousand, compared to a net
loss of $21.2million for the nine months ended September 30, 2012. Book
value and tangible book value per common share as of September 30, 2013 were
$6.06 and $5.89, respectively.

(Logo: http://photos.prnewswire.com/prnh/20020410/JAXBLOGO )

All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.

Balance Sheet Overview
Total assets were $514.5 million as of September 30, 2013, compared to $551.6
million as of September 30, 2012.The decrease in total assets was largely
due to the decrease in net loans as a result of the Company's execution of its
overall strategy to accelerate the disposition of substandard assets. Total
assets decreased $50.6 million to $514.5 million as of September 30, 2013 from
$565.1 million as of December 31, 2012. This decrease was due to reductions
in federal funds sold in the amount of $37.0million and net loans of $21.9
million as a result of net charge-offs and loan payoffs that outpaced loan
originations during the nine months ended September 30, 2013. These amounts
were slightly offset by an increase in securities available-for-sale of $4.2
million, bank-owned life insurance of $3.1 million, and other real estate
owned of $1.5million during the nine months ended September 30, 2013.

Total deposits were $440.4 million as of September 30, 2013, a decrease of
$52.8 million compared to total deposits of $493.2million as of September 30,
2012. The decrease in total deposits when compared to the same period in 2012
was driven primarily by a decrease in time deposits of $58.2 million due in
large part to a reduction in national and brokered CDs (the Company is
currently not offering or renewing national or brokered CDs). This decrease
was slightly offset by a $10.3million increase in noninterest-bearing demand
deposits.Total deposits decreased $49.6 million during the nine months ended
September 30, 2013 to $440.4 million as of September 30, 2013, as compared to
$490.0 million as of December 31, 2012. This decrease was due to similar
factors as were previously discussed.

Total shareholders' equity increased $19.1 million to $32.7 million as of
September 30, 2013 compared to $13.6 million as of September 30, 2012. The
significant increase was primarily driven by additional equity issued in
conjunction with the Company's capital raise activities, including the Private
Placement in the fourth quarter of 2012 and the rights offering completed in
the third quarter of 2013. Total shareholders' equity decreased slightly
during the nine months ended September 30, 2013, to $32.7 million as of
September 30, 2013, compared to $33.6 million as of December 31, 2012. This
decrease was attributable to a decrease in accumulated comprehensive income of
$2.2 million, offset by $0.9 million in additional equity issued in
conjunction with the Company's third quarter rights offering and net income
during the nine months ended September30, 2013 of $375thousand. Please
refer to the Recent Events section of this press release for additional
information related to the Company's capital raise activities. As adjusted to
reflect additional equity issued in the public offering (which closed
subsequent to quarter-end on October 4, 2013), total shareholders' equity was
$35.9 million as of September 30, 2013. The additional equity issued in the
public offering and associated net proceeds were not received as of
quarter-end and as such did not impact cash on-hand, capital ratios and
related information as of September 30, 2013. Please refer to the Company's
Non-GAAP Reconciliations for additional information related to this non-GAAP
financial measure.

All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.

Asset Quality
As of September 30, 2013, nonperforming assets were $24.0 million, or 4.66% of
total assets, compared to $39.8million, or 7.21% of total assets, as of
September 30, 2012. The decrease in nonperforming assets was driven primarily
by the Company's execution of its overall strategy to accelerate the
disposition of substandard assets on an individual customer basis, to include:
(i) write-downs and sales of OREO, (ii) the disposition of substandard assets
via payoffs and short sales, and (iii) the disposition of substandard assets
via the asset sale completed late in the fourth quarter of 2012.

The following table presents information concerning nonperforming assets as of
the last five quarters:

              As of
              September     June 30,      March 31,     December 31,  September
(Dollars in   30,                                                     30,
thousands)                  2013          2013          2012
              2013                                                    2012
Nonperforming
Assets
Total
nonperforming $ 15,516      $ 16,973      $ 20,067      $ 22,747      $ 35,168
loans^(1)
Other real
estate owned,   8,438         9,142         9,920         6,971         4,599
net
Total
nonperforming $ 23,954      $ 26,115      $ 29,987      $ 29,718      $ 39,767
assets
Allowance for $ (16,974)    $ (17,303)    $ (19,820)    $ (20,198)    $ (18,100)
loan losses
Allowance for
loan losses
as
a percentage    109.40   %    101.94   %    98.77    %    88.79    %    51.47    %
of NPL's
Nonperforming
loans as a
percentage of   4.16     %    4.44     %    5.10     %    5.71     %    8.05     %
gross loans
Total
nonperforming
assets as
a percentage
of total        4.66     %    5.00     %    5.76     %    5.26     %    7.21     %
assets
Loans past
due 30-89
days,
 still
accruing      $ 7,976       $ 2,466       $ 8,246       $ 4,622       $ 11,372
interest

^(1)  Total nonperforming loans ("NPL's") include loans on nonaccrual and
loans past due over 90 days still on accrual.

Nonperforming loans decreased $19.7 million to $15.5 million as of September
30, 2013, from $35.2 million as of September 30, 2012. When compared to the
prior year-end, nonperforming loans decreased $7.2million from $22.7million
as of December 31, 2012. The continued reduction of nonperforming loans was
primarily driven by the Company's overall strategy to accelerate the
disposition of substandard assets, including the asset sale completed in the
fourth quarter of 2012. In addition, total loans past due 30-89 days, still
accruing interest increased $3.4 million to $8.0 million as of September 30,
2013 from $4.6million as of December 31, 2012. This increase was driven
primarily by one significant loan currently in forbearance with potential for
future modification of loan terms.

Consistent with the Company's reduction of nonperforming loans and general
improvements in asset quality, the allowance for loan losses decreased in
total and as a percentage of total loans. The allowance for loan losses was
4.55% of total loans as of September 30, 2013, compared to 5.07% as of
December 31, 2012. The decrease in the allowance for loan losses as of
September 30, 2013 compared to December 31, 2012 was driven primarily by a
decrease in the amount of allowance needed on loans collectively evaluated for
impairment and loans acquired with deteriorated credit quality. The decrease
in the amount of allowance needed on loans collectively evaluated for
impairment was due to an overall reduction in the respective loan balances as
well as a decrease in net charge-offs that flow into the calculation of the
historical look back period, particularly commercial real estate loans. The
decrease in the amount of allowance needed on loans acquired with deteriorated
credit quality was due to increased charge-offs related to these loans during
the nine months ended September30, 2013.

All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.

Operating Results
Total interest income decreased $1.0 million for the three months ended
September 30, 2013 when compared to the same period in 2012. This decrease
was primarily driven by a decrease in average earning assets, in particular,
average loan balances which declined by $70.3 million when compared to the
same period in the prior year. In addition, the average yield on loans
decreased to 5.39% for the three months ended September 30, 2013, compared to
5.42% for the three months ended September 30, 2012. The decrease in the loan
yield was driven by a slight decrease in accretion recognized on acquired
loans when compared to the same quarter in the prior year and lower yields on
renewed loans and modifications not deemed troubled debt restructurings to
remain competitive with current market rates.

Total interest income decreased $2.0 million for the nine months ended
September 30, 2013 when compared to the same period in 2012. This decrease
was primarily driven by a decrease in average earning assets, in particular,
average loan balances which declined by $66.5 million when compared to the
same period in the prior year. The decrease in average loan balances was
partially offset by an increase in the average yield on loans to 5.63% for the
nine months ended September 30, 2013 compared to 5.36% for the nine months
ended September 30, 2012. The increase in the loan yield was driven by an
increase in accretion recognized on acquired loans of approximately
$0.5million as well as a decrease in total nonperforming loans. 

Interest expense decreased by $0.2 million and $0.7 million for the three and
nine months ended September 30, 2013, respectively, when compared to the same
periods in the prior year. This was partially due to a decrease in the
average cost of interest-bearing liabilities to 1.06% and 1.10% for the three
and nine months ended September 30, 2013, respectively, compared to 1.09% and
1.15% for the three and nine months ended September 30, 2012. The overall
decrease is reflective of repricing activities in the current low interest
rate environment coupled with an increase in average noninterest-bearing
deposits to $94.7 million for the nine months ended September 30, 2013,
compared to $86.7 million for the same period in the prior year.

A provision for loan loss expense of $100 thousand was recorded for the nine
months ended September 30, 2013, compared to an expense of $17.6 million for
the same period in 2012. In addition, the Company recorded net charge-offs of
$3.3million for the nine months ended September 30, 2013, compared to $12.6
million for the same period in 2012. The decrease in provision expense was
primarily due to the overall run-off in the loan portfolio, the year-over-year
change in net charge-offs as well as improvements in our overall asset quality
and general reduction in substandard assets.

Noninterest income increased period-over-period, with $0.8 million and $1.6
million in service charges and other income for the three and nine months
ended September 30, 2013, compared to $0.4 million and $1.1million for the
same period in 2012. Included in the current year other income were realized
gains from the sale of investment securities of $391 thousand and $437
thousand for the three and nine months ended September 30, 2013,
respectively. Such realized gains did not occur during the same periods in
the prior year.

Noninterest expense decreased to $4.8 million and $15.6 million for the three
and nine months ended September 30, 2013, compared to $10.6million and $20.6
million for the three and nine months ended September 30, 2012. This decrease
was primarily due to nonrecurring goodwill impairment expense of $3.1 million
in the prior year and a decrease in OREO expenses, capital raise and asset
sale-related expenses and loan related expenses when compared to the same
period in the prior year. These amounts were offset by an increase in
professional fees and data processing, while the remainder of the components
of noninterest expense remained relatively flat period-over-period.

There was no income tax expense recorded during the three and nine months
ended September 30, 2013, while there was an income tax benefit of $106
thousand and $136 thousand for the three and nine months ended September 30,
2012, respectively. The Company recorded a full valuation allowance against
its deferred taxes as of December 31, 2011. This was substantially due to the
fact that it was more-likely-than-not that the benefit would not be realized
in future periods due to Section 382 of the Internal Revenue Code. Based on
an analysis performed as of September 30, 2013 and December 31, 2012, it was
determined that the need for a full valuation allowance still existed.

On a diluted per common share basis, the Company had net income (loss)
available to common shareholders of $0.03 and $(7.06) for the three and nine
months ended September 30, 2013, respectively, compared to a net loss
available to common shareholders of $(36.27) and $(72.05) for the same periods
in the prior year. The Company experienced a net loss per diluted common
share for the nine months ended September 30, 2013 due to the reduction of net
income available to common shareholders in the amount of $31.5 million as a
result of the noncash, implied preferred stock dividend recognized in
conjunction with the conversion of the Company's Series A Preferred Stock into
an aggregate of 5.0 million shares of common stock and nonvoting common stock
(the Conversion"), during the three months ended March 31, 2013. Please refer
to the Recent Events section of this report for additional information related
to the Conversion. As adjusted to reflect earnings (loss) per common share
less the impact of the noncash, implied preferred stock dividend, the basic
and diluted earnings per common share was $0.09 for the nine months ended
September 30, 2013. Please refer to the Company's Non-GAAP Reconciliations
for additional information related to this non-GAAP financial measure.

All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.

Recent Events
During the fourth quarter of 2012, the Company completed a $50.0 million
capital raise through the private placement of 50,000 shares of the Company's
Series A preferred stock, at a purchase price of $1,000 per share.
Consideration in the private placement included cash, the one-for-one exchange
of Series B preferred stock sold in the $5.0 million bridge financing
completed during the third quarter of 2012 and $1.8 million in the
cancellation of outstanding debt under the Company's revolving loan agreements
held by certain purchasers in the private placement and/or their related
interests. Net proceeds from the issuance of preferred stock in the amount of
$45.1 million were used for general operating expenses, mainly for the
subsidiary bank, to improve capital ratios and to support the Company's
business strategy going forward. On February 19, 2013, after receiving
requisite shareholder approvals, all issued and outstanding shares of Series A
Preferred Stock automatically converted into an aggregate of 2.4 million
shares of common stock and 2.6 million shares of the Company's newly
authorized nonvoting common stock. Book value and tangible book value per
common share as of December 31, 2012 were $51.06 and $46.78, respectively.
Book value and tangible book value per common share as of December 31, 2012,
adjusted for the Conversion, were $6.34 and $6.10, respectively. Please refer
to the Company's Non-GAAP Reconciliations for additional information related
to these non-GAAP financial measures. In addition, on December31, 2012, the
Bank completed the sale of $25.1 million in assets, including non-accrual
loans, loans with a history of being past due, and other loans that were part
of an overall customer relationship of $24.6 million and OREO of $0.5 million,
to a real estate investment firm, for a purchase price of $11.7 million.

On June 24, 2013, Stephen C. Green resigned as President and Chief Executive
Officer of the Company, and as Chief Executive Officer of the Bank. On the
same date, Mr. Green also resigned from the boards of directors of the Company
and the Bank. The Company has engaged an executive search firm to initiate
the search for a successor President and Chief Executive Officer. The
Company's board of directors appointed Donald F. Glisson, Jr., the Chairman of
the Board, as the Company's interim principal executive officer.

During the third quarter of 2013, the Company initiated concurrent offerings:
(i) a rights offering to existing shareholders for nontransferable
subscription rights to purchase shares of the Company's common stock at a
subscription price of $10.00 per share and (ii) a public offering of shares
not subscribed for in the rights offering at an equal subscription price of
$10.00 per share. The subscription period for the rights offering expired on
September 20, 2013 and resulted in the sale of 104,131 shares of the Company's
common stock for aggregate proceeds of $1.0 million, or $0.9 million net of
offering expenses. The public offering expired subsequent to quarter-end, on
October 4, 2013, whereby the Company sold 395,869 shares for an aggregate of
$4.0 million, or $3.2 million net of offering expenses. Total net proceeds
from the concurrent offerings will be used for general operating expenses.

In October 2013, Bancorp's Board of Directors implemented a 1-for-20 reverse
stock split of its outstanding shares of common stock and nonvoting common
stock effective October 24, 2013. As a result of the reverse stock split,
each 20 shares of issued and outstanding common stock and nonvoting common
stock, par value $0.01 per share, respectively, were automatically and without
any action on the part of the respective holders combined and reconstituted as
one share of the respective class of common equity as of the effective date.
Consequently, the aggregate par value of common stock and nonvoting common
stock eliminated in the reverse stock split was reclassed on the Company's
consolidated balance sheets from the respective class of common equity to
additional paid-in capital. Additional adjustments were made to the
aforementioned accounts as a result of rounding to avoid the existence of
fractional shares. All share and per share information in the Consolidated
Financial Statements and the accompanying notes have been retroactively
adjusted to reflect the 1-for-20 reverse stock split.

All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.

The Company
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 $514.5 million in assets and eight
full-service branches in Jacksonville and Jacksonville Beach, Duval County,
Florida, as well as our virtual branch.The Jacksonville Bank opened for
business on May 28, 1999 and provides a variety of community banking services
to businesses and individuals in the greater Jacksonville area of Northeast
Florida.More information is available at its website at www.jaxbank.com.

This press release contains non-GAAP financial disclosures that are not in
accordance with generally accepted accounting principles in the United States
of America ("U.S. GAAP"). The Company uses certain non-GAAP financial
measures to provide meaningful, supplemental information regarding its
operational results and to enhance investors' overall understanding of the
Company's financial performance. The limitations associated with these
non-GAAP financial measures include the risk that persons might disagree as to
the appropriateness of items comprising these measures and that different
companies might calculate these measures differently. In addition, these
disclosures should not be considered an alternative to the Company's GAAP
results. Please refer to the table at the end of this release for a
reconciliation of the non-GAAP financial measures to the most directly
comparable GAAP financial measures.

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 ability to dispose of substandard
assets and the disposition prices thereof; economic and political conditions,
especially in North Florida; real estate prices and sales in the Company's
markets; competitive circumstances; bank regulation, legislation, accounting
principles and monetary policies; the interest rate environment; efforts to
increase our capital and reduce our 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, including the Company's Annual Report on
Form 10-K for the year ended December 31, 2012, the Company's Quarterly Report
on Form 10-Q for the period ended June 30, 2013, and the Company's
registration statement on Form S-1, as amended (File No. 333-188146), which
are incorporated herein by reference.





JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands, except per share data)
                 For the Three Months Ended
                 September    June 30,     March 31,    December    September
                 30,                                    31,         30,
                 2013         2013         2013         2012        2012
Consolidated
Earnings Summary
Total interest   $ 5,605      $ 5,797      $ 6,362      $ 6,466     $ 6,641
income
Total interest     1,032        1,089        1,133        1,286       1,238
expense
Net interest       4,573        4,708        5,229        5,180       5,403
income
Provision for      367          (484)        217          20,348      5,990
loan losses
Net interest
income (loss)      4,206        5,192        5,012        (15,168)    (587)
after provision
for loan losses
Total
noninterest        761          377          424          420         356
income
Total
noninterest        4,820        5,540        5,237        7,118       10,560
expense
Income (loss)
before income      147          29           199          (21,866)    (10,791)
tax
Income tax         -            -            -            (37)        (106)
benefit
Net income       $ 147        $ 29         $ 199        $ (21,829)  $ (10,685)
(loss)
Noncash, implied
preferred stock    -            -            (31,464)     -           -
dividend
Net income
(loss) available $ 147        $ 29         $ (31,265)   $ (21,829)  $ (10,685)
to common
shareholders
                 For the Three Months Ended
                 September    June 30,     March 31,    December    September
                 30,                                    31,         30,
                 2013         2013         2013         2012        2012
Summary Average
Consolidated
Balance Sheet
Loans, gross     $ 377,563    $ 390,265    $ 395,589    $ 425,813   $ 447,885
Securities         84,602       92,157       91,186       88,931      91,887
Other earning      33,855       17,577       32,816       16,353      3,802
assets
Total earning      496,020      499,999      519,591      531,097     543,574
assets
Other assets       23,554       19,631       18,464       22,144      20,457
Total assets     $ 519,574    $ 519,630    $ 538,055    $ 553,241   $ 564,031
Interest-bearing $ 385,932    $ 387,026    $ 412,753    $ 442,426   $ 453,260
liabilities
Other              101,763      99,434       91,734       98,198      92,012
liabilities
Shareholders'      31,879       33,170       33,568       12,617      18,759
equity
Total
liabilities and  $ 519,574    $ 519,630    $ 538,055    $ 553,241   $ 564,031
shareholders'
equity
                 For the Three Months Ended
                 September    June 30,     March 31,    December    September
                 30,                                    31,         30,
                 2013         2013         2013         2012        2012
Per Share Data
Basic (loss)
earnings per     $ 0.03       $ 0.01       $ (12.15)    $ (74.11)   $ (36.27)
common share
Diluted (loss)
earnings per     $ 0.03       $ 0.01       $ (12.15)    $ (74.11)   $ (36.27)
common share
Basic weighted
average common     5,307,032    5,294,547    2,572,322    294,544     294,544
shares
outstanding
Diluted weighted
average common     5,307,042    5,295,935    2,572,354    294,544     294,544
shares
outstanding
Total shares
outstanding at     5,398,713    5,294,582    5,294,544    294,544     294,544
end of period
Closing market   $ 9.80       $ 9.60       $ 30.00      $ 16.00     $ 18.40
price per share



All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.







JACKSONVILLE BANCORP, INC.
(Unaudited)
(Dollars in thousands, except per share data)
               For the Three Months Ended
               September   June 30,     March 31,    December      September
               30,                                   31,           30,
               2013        2013         2013         2012          2012
Selected
ratios
Return on        0.11%       0.02%        0.15%        (15.70)%      (7.54)%
average assets
Return on        1.83%       0.35%        2.40%        (688.29)%     (226.60)%
average equity
Average equity
to average       6.14%       6.38%        6.24%        2.28%         3.33%
assets
Tangible
common equity    6.19%       5.94%        6.21%        2.44%         2.22%
to tangible
assets
Interest rate    3.42%       3.52%        3.86%        3.68%         3.77%
spread
Net interest     3.66%       3.78%        4.08%        3.88%         3.95%
margin
Allowance for
loan losses as   4.55%       4.53%        5.04%        5.07%         4.14%
a percentage
of total loans
Allowance for
loan losses as   109.40%     101.94%      98.77%       88.79%        51.47%
a percentage
of NPL's
Ratio of net
charge-offs as
a percentage    0.82%       2.09%        0.61%        17.05%        7.58%
of average
loans
Efficiency       90.36%      108.95%      92.64%       127.11%       183.37%
ratio
               As of
               September   June 30,     March 31,    December      September
               30,                                   31,           30,
               2013        2013         2013         2012          2012
Summary
Consolidated
Balance Sheet
Cash and cash  $ 35,926    $ 42,799     $ 23,961     $ 72,079      $ 13,661
equivalents
Securities       88,203      83,234       91,262       83,985        88,838
Loans, gross     372,955     381,952      392,989      398,031       436,754
Allowance for    (16,974)    (17,303)     (19,820)     (20,198)      (18,100)
loan losses
Loans, net       355,981     364,649      373,169      377,833       418,654
Other
intangible       938         1,045        1,153        1,260         1,380
assets, net
All other        33,499      30,706       31,353       29,900        29,018
assets
Total assets   $ 514,547   $ 522,433    $ 520,898    $ 565,057     $ 551,551
Deposit        $ 440,354   $ 449,254    $ 446,235    $ 490,021     $ 493,205
accounts
All other        41,472      41,146       41,239       41,460        44,767
liabilities
Shareholders'    32,721      32,033       33,424       33,576        13,579
equity
Total
liabilities
and            $ 514,547   $ 522,433    $ 520,898    $ 565,057     $ 551,551
shareholders'
equity



All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.







JACKSONVILLE BANCORP, INC.
Unaudited
(Dollars in thousands, except per share data)
                                                  For the Nine Months Ended
                                                  September 30,  September 30,
                                                  2013           2012
Consolidated Earnings Summary
Total interest income                             $  17,764      $   19,786
Total interest expense                               3,254           3,970
Net interest income                                  14,510          15,816
Provision for loan losses                            100             17,646
Net interest income (loss) after provision for       14,410          (1,830)
loan losses
Total noninterest income                             1,562           1,083
Total noninterest expense                            15,597          20,608
Income (loss) before income tax                      375             (21,355)
Income tax benefit                                   -               (136)
Net income (loss)                                 $  375         $   (21,219)
Non-cash implied preferred stock dividend            (31,464)        -
Net loss available to common shareholders         $  (31,089)    $   (21,219)
                                                  For the Nine Months Ended
                                                  September 30,  September 30,
                                                  2013           2012
Summary Average Consolidated Balance Sheet
Loans, gross                                      $  387,739     $   454,195
Securities                                           89,291          81,691
Other earning assets                                 28,087          12,681
Total earning assets                                 505,117         548,567
Other assets                                         20,568          26,905
Total assets                                      $  525,685     $   575,472
Interest-bearing liabilities                      $  395,140     $   459,807
Noninterest-bearing liabilities                      97,679          89,391
Shareholders' equity                                 32,866          26,274
Total liabilities and shareholders' equity        $  525,685     $   575,472
                                                  For the Nine Months Ended
                                                  September 30,  September 30,
                                                  2013           2012
Per Share Data
Basic earnings (loss) per share                   $  (7.06)      $   (72.05)
Diluted earnings (loss) per share                 $  (7.06)      $   (72.05)
Basic weighted average shares outstanding           4,401,317       294,515
Diluted weighted average shares outstanding          4,401,317       294,515
Total shares outstanding at end of period            5,398,713       294,544
Closing market price per share                    $  9.80        $   18.40



All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.







JACKSONVILLE BANCORP, INC.
Unaudited
(Dollars in thousands, except per share data)
                                                  For the Nine Months Ended
                                                  September 30,  September 30,
                                                  2013           2012
Selected ratios
Return on average assets                              0.10%         (4.93)%
Return on average equity                              1.53%         (107.88)%
Average equity to average assets                      6.25%         4.57%
Tangible common equity to tangible assets            6.19%         2.22%
Interest rate spread                                  3.60%         3.67%
Net interest margin                                   3.84%         3.85%
Allowance for loan losses as a percentage of          4.55%         4.14%
total loans
Allowance for loan losses as a percentage of          109.40%       51.47%
NPL's
Ratio of net charge-offs as a percentage of           1.24%         3.70%
average loans
Efficiency ratio                                      97.04%        121.95%
                                                  As of
                                                  September 30,  December 31,
                                                  2013           2012
Summary Consolidated Balance Sheet
Cash and cash equivalents                         $   35,926     $  72,079
Securities                                            88,203        83,985
Loans, gross                                          372,955       398,031
Allowance for loan losses                             (16,974)      (20,198)
Loans, net                                            355,981       377,833
Other intangible assets, net                          938           1,260
All other assets                                      33,499        29,900
Total assets                                      $   514,547    $  565,057
Deposit accounts                                  $   440,354    $  490,021
All other liabilities                                 41,472        41,460
Shareholders' equity                                  32,721        33,576
Total liabilities and shareholders' equity        $   514,547    $  565,057



All share and per share amounts have been retrospectively adjusted to reflect
the 1-for-20 reverse stock split completed in October 2013. Please refer to
the Recent Events section of this press release and the Company's Non-GAAP
Reconciliations  for additional information related to the reverse stock
split.







JACKSONVILLE BANCORP, INC.
Non-GAAP Reconciliations
(Unaudited)
(Dollars in thousands, except share and per share data)
Impact of 1-for-20 Reverse Stock Split
                     Pre-Split                     Post-Split
                     September 30,  December 31,   September 30,  December 31,
                     2013           2012           2013           2012
Book Value Per
Common Share
Book value           $ 32,721       $   15,040     $  32,721      $  15,040
   Less: Goodwill
   and other           938              1,260         938            1,260
   intangible assets
Tangible book value  $ 31,783       $   13,780     $  31,783      $  13,780
Shares outstanding     107,974,244      5,890,880     5,398,713      294,544
Book value per       $ 0.30         $   2.55       $  6.06        $  51.06
common share
Tangible book value  $ 0.29         $   2.34       $  5.89        $  46.78
per common share
                     Pre-Split                     Post-Split
                     September 30,  September 30,  September 30,  September
                     2013           2012           2013           30,
                                                                  2012
Quarter-to-Date
Earnings (Loss) Per
Common Share:
Net income           $ 147          $   (10,685)   $  147         $  (10,685)
   Less: Noncash
   implied preferred   -                -             -              -
   stock dividend
Net (loss) income
available to common  $ 147          $   (10,685)   $  147         $  (10,685)
shareholders
Basic weighted
average common         106,140,636      5,890,880     5,307,032      294,544
shares outstanding
Diluted weighted
average common         106,140,833      5,890,880     5,307,042      294,544
shares outstanding
Basic (loss)
earnings per common  $ 0.00         $   (1.81)     $  0.03        $  (36.27)
share
Diluted (loss)
earnings per common  $ 0.00         $   (1.81)     $  0.03        $  (36.27)
share
                     Pre-Split                     Post-Split
                     September 30,  September 30,  September 30,  September
                     2013           2012           2013           30,
                                                                  2012
Year-to-Date
Earnings (Loss) Per
Common Share:
Net income           $ 375          $   (21,219)   $  375         $  (21,219)
   Less: Noncash
   implied preferred   (31,464)         -             (31,464)       -
   stock dividend
Net (loss) income
available to common  $ (31,089)     $   (21,219)   $  (31,089)    $  (21,219)
shareholders
Basic weighted
average common         88,026,345       5,890,281     4,401,317      294,515
shares outstanding
Diluted weighted
average common         88,026,345       5,890,281     4,401,317      294,515
shares outstanding
Basic (loss)
earnings per common  $ (0.35)       $   (3.60)     $  (7.06)      $  (72.05)
share
Diluted (loss)
earnings per common  $ (0.35)       $   (3.60)     $  (7.06)      $  (72.05)
share







JACKSONVILLE BANCORP, INC.
Non-GAAP Reconciliations (Continued)
(Unaudited)
(Dollars in thousands, except share and per share data)
                       September 30, 2013              September 30, 2013

                       (as reported)                   (as adjusted)^(1)
Year-to-Date Earnings
(Loss) Per Common
Share:
Net income             $     375                       $    375
      Less: Noncash
      implied                (31,464)                       -
      preferred stock
      dividend
Net (loss) income
available to common    $     (31,089)                  $    375
shareholders
Basic weighted average
common shares                4,401,317                      4,401,317
outstanding^(6)
Diluted weighted
average common shares        4,401,317                      4,401,317
outstanding^(6)
Basic (loss) earnings  $     (7.06)                    $    0.09
per common share^(6)
Diluted (loss)
earnings per common    $     (7.06)                    $    0.09
share^(6)
                       September 30, 2013           September 30, 2013

                       (as reported)                (as adjusted)^(2)
Total Shareholders'
Equity:
Total Shareholders'    $     32,721                 $     32,721
equity
      Plus: Additional
      equity issued in       -                            3,226
      the public
      offering
Total Shareholders'    $     32,721                 $     35,947
equity, pro forma
                       December 31,       Conversion            December 31,
                       2012                                     2012
                                          Adjustments
                       (as reported)                            (as adjusted)
Book Value Per Common
Share:
Total Shareholders'    $     33,576       $  -                  $   33,576
equity^(3)
     Less: Preferred         18,536          (18,536)               -
     stock^(4)
Book value             $     15,040          -                  $   33,576
     Less: Goodwill
     and other               1,260           -                      1,260
     intangible assets
Tangible book value    $     13,780       $  -                  $   32,316
Shares outstanding^(7)       294,544         5,000,000              5,294,544
Book value per common        51.06                                  6.34
share^(5),(7)
Tangible book value
per common                   46.78                                  6.10
share^(6),(7)
      Adjusted to reflect the calculation of earnings (loss) per common share
^(1)  less the impact of the noncash, implied preferred stock dividend
      recognized in conjunction with the Conversion during the nine months
      ended September 30, 2013.
      Adjusted for the impact of additional equity issued in the public
      offering (which closed subsequent to quarter-end on October 4, 2013).
^(2)  The additional equity issued in the public offering and associated net
      proceeds were not received as of quarter-end and as such did not impact
      cash on-hand, capital ratios and related information as of September 30,
      2013.
      Assumes the full Conversion of the Series A Preferred Stock into
      5,000,000 shares of common stock and nonvoting common stock as of
      December 31, 2012, resulting in an additional $50.0 million in common
^(3)  equity, no preferred stock outstanding, and a noncash, implied dividend
      recognized as a reduction of retained earnings in conjunction with the
      discount on the Series A Preferred Stock beneficial conversion feature
      of $31.5 million. Total shareholders' equity did not change as a result
      of this transaction.
^(4)  Assumes no shares of preferred stock outstanding following the
      Conversion.
      Calculated as book value divided by shares outstanding, where book value
^(5)  is calculated as shareholders' equity less preferred stock equity
      (excluding proceeds allocated to common equity as a result of the
      beneficial conversion feature) as of the balance sheet date.
      Calculated as tangible book value divided by shares outstanding, where
^(6)  tangible book value is calculated as book value less goodwill and other
      intangible assets as of the balance sheet date.
      Share and per share amounts have been retrospectively adjusted to
^(7)  reflect the 1-for-20 reverse stock split completed in October 2013.
      Please refer to the Recent Events section of this press release for
      additional information related to the reverse stock split.



SOURCE Jacksonville Bancorp, Inc.

Website: http://www.jaxbank.com
Contact: Valerie Kendall, 904-421-3051