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Jacksonville Bancorp Announces Quarterly And Annual Earnings

JACKSONVILLE, Fla., Feb. 18 /PRNewswire-FirstCall/ -- Jacksonville Bancorp, Inc. (Nasdaq: JAXB) reported net income for the fourth quarter of 2009 of $256 thousand, or $.15 per diluted common share, compared to fourth quarter 2008 earnings of $71 thousand, or $.04 per diluted common share.  The Company also reported annual earnings for 2009 of $76 thousand, or $.04 per diluted common share, compared to $35 thousand, or $.02 per diluted common share, in 2008.  Book value per common share at the period end was $15.59.

(Photo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO)

Total assets were $438.8 million at year end, compared to $434.0 million at the end of 2008.  Net loans increased 2.4% to $384.0 million as of December 31, 2009, compared to $375.0 million as of December 31, 2008.  Total deposits increased 7.3% to $370.6 million, compared to $345.5 million as of December 31, 2008.  

During the fourth quarter of 2009, the Company embarked on a deposit gathering campaign.  The "Built for Growth" campaign drove a net increase of $14.3 million in money market deposits.  Additionally, the Company launched its "Virtual Branch" in August 2009.  This, too, proved to be an excellent source of liquidity for the Company, attracting $20.0 million in deposits as of December 31, 2009.  Noninterest bearing deposits increased by $2.9 million to $43.7 million, or 6.9%, compared to the prior year.

The Company continued to exceed regulatory standards of being "well capitalized" with total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage capital at 11.9%, 9.2% and 8.2%, respectively, at December 31, 2009.  

Commenting on the year, Gilbert J. Pomar, III, Jacksonville Bancorp, Inc. President and Chief Executive Officer, stated, "2009 was certainly a challenging year for our Company and the banking industry in general.  Our employees have done a tremendous job in a difficult environment.  It was a year where we concentrated our efforts on the core fundamentals that have driven our success since the Company's inception—namely, credit quality, new customer acquisition and capital preservation.  We're also pleased our margins continue to improve."

Nonperforming assets remained relatively flat at $12.8 million, or 2.9% of total assets, compared to $12.5 million, or 2.9% of total assets, compared to the prior year.  During the fourth quarter and year, the Bank recorded $1.1 million and $4.4 million, respectively, in provision for loan losses, increasing the loan loss reserve to 1.75% from 1.24% a year earlier.

    
    
                                             December 31,
                                         2009            2008
                                      ---------       ---------
                                        (Dollars in thousands)
    
    Nonaccruing loans                 $   8,745       $  12,436
      Loans past due over 90 days
       still on accrual                      --              --
                                      ---------       ---------
        Total nonperforming loans         8,745          12,436
      Foreclosed assets, net              4,011              89
                                      ---------       ---------
        Total nonperforming assets       12,756          12,525
                                      =========       =========
    
      Allowance for loan losses       $   6,854       $   4,705
    
      Nonperforming loans and
       foreclosed assets as a
       percent of total assets             2.91%           2.89%
    
      Nonperforming loans as a
       percent of gross loans              2.24%           3.28%
    
      Loans past due 30-89 days,
       still accruing                 $   5,308       $   1,797

The increase in loans past due 30-89 days (still accruing) is being driven primarily by one loan in the amount of $2.9 million, which continues to perform and is not anticipated to deteriorate to nonaccrual status.

The Company had net loan charge-offs of $648 thousand and $2.2 million during the quarter and year, respectively, compared to $419 thousand and $2.0 million during the same periods in the prior year.  Mr. Pomar went on to say, "The increase in our loan loss reserve was necessitated primarily by an increase in net charge-offs and the ongoing softening in real estate values in our market."

Net interest income for the fourth quarter of 2009 increased to $3.7 million, compared to the $2.8 million earned in the fourth quarter of 2008.  Interest income for the quarter declined $287 thousand when compared to the prior year as a result of the repricing of our assets in this low interest rate environment along with the impact from nonperforming assets; this was offset by average earning asset growth of $6.1 million from the same period in the prior year.  Interest expense declined by $1.2 million, compared to the linked quarter, as a result of the low interest rate environment; this was offset somewhat by a transition from low-cost wholesale funding into more expensive time deposits.  The net interest margin was 3.47% and 3.23% for the quarter and year, respectively, compared to 2.70% and 2.97% for the comparable periods in 2008, and 3.59% in the third quarter of 2009.

Management expects the margin improvement to stabilize somewhat during 2010 as the strategic focus remains to provide liquidity through local core funding.  Brokered deposits were $35.7 million, or 9.6% of total deposits, at December 31, 2009, compared to $45.8 million, or 13.1% of total deposits, at December 31, 2008.

Noninterest income decreased from $1.2 million for the 12-month period in 2008 to $841 thousand for the same period in 2009.  This is primarily the result of recognizing a $132 thousand write-off in stock of Silverton Bank, N.A. due to its May 2009 failure along with a reduction in Corporate Analysis and NSF fees.

Noninterest expense increased $178 thousand, or 1.8%, for the year ended December 31, 2009, compared to 2008.  During 2008, the Company recorded $468 thousand in merger related expenses as a result of the termination of the merger agreement with Heritage Bancshares, Inc. "The Company remains focused on stringent cost controls during these very difficult times but remains cognizant of the importance of retaining adequate resources to mitigate risks and position ourselves for growth and profitability in the future," added Pomar.

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 $438 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 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 Ended 
                December 31,  September 30,  June 30,  March 31,  December 31,   
                    2009          2009         2009      2009         2008 
                -----------   ------------   -------   --------   -----------
    Earnings Summary 
    ----------------- 
    Total 
     interest 
     income     $   5,817     $   6,081   $   5,625  $   5,681   $    6,104 
    Total 
     interest 
     expense        2,151         2,266       2,556      2,756        3,301 
    
       Net interest 
        income      3,666         3,815       3,069      2,925        2,803 
    Provision 
     for loan 
     losses         1,046         1,070       1,307        938          787 
    
       Net interest 
        income after 
        provision 
        for loan 
        losses      2,620         2,745       1,762      1,987        2,016 
    Noninterest 
     income           230           241         224        146          366 
    Noninterest 
     expense        2,502         2,528       2,667      2,286        2,328 
    
       Income before 
        income tax    348           458        (681)      (153)          54 
    Income tax 
     provision         92           133        (285)       (44)         (17)
    
       Net 
        income  $     256     $     325   $    (396) $    (109)  $       71 
    
    
    Summary Average Balance Sheet
    ----------------------------- 
                                 
    Loans, 
     gross      $ 392,219     $ 395,133   $ 387,232  $ 382,071   $  380,203 
    Securities     26,033        26,083      26,321     30,344       31,809 
    Other earning 
     assets           941           525         687        696        1,098 
                ---------     ---------   ---------  ---------   ----------
       Total 
        earning 
        assets    419,193       421,741     414,240    413,111      413,110 
    Other assets   19,669        16,127      16,039     16,824       17,456 
                ---------     ---------   ---------  ---------   ----------
       Total 
        assets  $ 438,862     $ 437,868   $ 430,279  $ 429,935   $  430,566 
                =========     =========   =========  =========   ==========
    Interest 
     bearing 
     liabil-
     ities      $ 364,871     $ 368,071   $ 362,346  $ 359,846   $  359,466 
    Other 
     liabilities   46,919        42,968      40,894     42,986       44,470 
    Shareholders' 
     equity        27,072        26,829      27,039     27,103       26,630 
    
       Total 
        liabilities 
        and 
        shareholders' 
        equity  $ 438,862     $ 437,868   $ 430,279  $ 429,935   $  430,566 
                =========     =========   =========  =========   ==========
    
    Per Share Data 
    --------------
                   
    Basic earnings 
     per share  $    0.15     $    0.19   $   (0.23) $   (0.06)  $     0.04 
    Diluted earnings 
     per share  $    0.15     $    0.19   $   (0.23) $   (0.06)  $     0.04 
    Basic 
     weighted 
     average 
     shares 
     out-
     standing   1,749,280     1,748,586   1,748,214  1,748,647    1,748,630 
    Diluted 
     weighted 
     average 
     shares 
     out-
     standing   1,750,112     1,749,074   1,748,214  1,748,647    1,760,511 
    Book value 
     per basic 
     share at 
     end of 
     period     $   15.59     $   15.42   $   15.13  $   15.36   $    15.35 
    Total shares 
     outstanding 
     at end of 
     period     1,749,243     1,748,854   1,747,599  1,748,799    1,748,599 
    Closing 
     market
     price per 
     share      $    9.49     $   10.75   $   10.50   $   8.00   $    11.10 
                                                                      
    Selected Ratios                                                   
    ---------------
    Return on 
     average 
     assets          0.23%         0.29%      -0.37%     -0.10%        0.07%
    Return on 
     average 
     equity          3.75%         4.81%      -5.87%     -1.63%        1.06%
    Average equity 
     to average 
     assets          6.17%         6.13%       6.28%      6.30%        6.18%
    Tangible common 
     equity to 
     tangible 
     assets          6.21%         6.15%       6.04%      6.22%        6.19%
    Interest rate 
     spread          3.17%         3.28%       2.62%      2.47%        2.22%
    Net interest 
     margin          3.47%         3.59%       2.97%      2.87%        2.70%
    Allowance for 
     loan losses 
     as a percentage 
     of total loans  1.75%         1.63%       1.45%      1.29%        1.24%
    Allowance for 
     loan losses 
     as a percentage 
     of NPL's       78.38%       108.49%      38.89%     51.74%       37.83%
    Ratio of net 
     charge offs 
     as a percentage 
     of average 
     loans           0.66%         0.28%       0.61%      0.74%        0.44%
    Efficiency 
     Ratio          64.22%        62.33%      80.99%     74.44%       73.46%
    
    
    Summary
     Balance    December 31,  September 30,  June 30,  March 31,  December 31,
     Sheet          2009          2009         2009      2009         2008 
     -----      -----------   ------------   -------   --------   -----------
     
    Cash and cash 
     equiva-
     lents      $   5,647     $   5,496   $   9,345   $  6,847   $   10,148 
    Securities     25,371        26,955      25,571     29,035       31,724 
    Loans, net    384,133       389,082     384,817    378,755      374,993 
    All other 
     assets        23,660        18,410      17,725     17,350       17,134 
                ---------     ---------   ---------  ---------   ----------
    Total 
     assets     $ 438,811     $ 439,943   $ 437,458   $431,987   $  433,999 
                =========     =========   =========  =========   ==========
    Deposit 
     accounts   $ 370,635     $ 321,603   $ 321,864   $344,506   $  345,544 
    All other 
     liabilities   40,908        91,380      89,161     60,626       61,610 
    Shareholders' 
     equity        27,268        26,960      26,433     26,855       26,845 
                ---------     ---------   ---------  ---------   ----------
    Total 
     liabilities 
     and 
     shareholders' 
     equity     $ 438,811     $ 439,943   $ 437,458   $431,987   $  433,999 
                =========     =========   =========  =========   ==========
    
    
    
                                              Twelve Months Ended       
                                          December 31,     December 31,  
                                              2009             2008 
                                          -----------      -----------
    Earnings Summary  
    ----------------                  
    Total interest income                 $    23,204      $    25,563 
    Total interest expense                      9,729           13,560 
                                                
       Net interest income                     13,475           12,003 
    Provision for loan losses                   4,361            3,570 
                                                 
       Net interest income after provision for 
        loan losses                             9,114            8,433 
    Noninterest income                            841            1,178 
    Noninterest expense                         9,983            9,805 
                                                
       Income before income tax                   (28)            (194)
    Income tax provision                         (104)            (229)
    
       Net income                         $        76      $        35 
                                                  
                                                  
    Summary Average Balance Sheet                 
    -----------------------------                                       
    Loans, gross                          $   389,208      $   370,320 
    Securities                                 27,180           31,891 
    Other earning assets                          712            1,607 
                                          -----------      -----------
       Total earning assets                   417,100          403,818 
    Other assets                               17,170           16,606 
                                          -----------      -----------
       Total assets                       $   434,270      $   420,424 
                                          ===========      ===========
    Interest bearing liabilities          $   363,809      $   350,800 
    Other liabilities                          43,451           42,720 
    Shareholders' equity                       27,010           26,904 
                                               
       Total liabilities and shareholders' 
        equity                            $   434,270      $   420,424 
                                          ===========      ===========
                                             
    Per Share Data                           
    --------------                                         
    Basic earnings per share               $     0.04      $      0.02 
    Diluted earnings per share             $     0.04      $      0.02 
    Basic weighted average shares 
     outstanding                            1,748,683        1,748,295 
    Diluted weighted average shares 
     outstanding                            1,749,165        1,791,342 
    Book value per basic share at end of 
     period                                $    15.59      $     15.35 
    Total shares outstanding at end of 
     period                                 1,749,243        1,748,799 
    Closing market price per share         $     9.49           $11.10 
                                                
    Selected Ratios                             
    ---------------                                            
    Return on average assets                     0.02%            0.01%
    Return on average equity                     0.28%            0.13%
    Average equity to average assets             6.22%            6.40%
    Tangible common equity to tangible assets    6.21%            6.19%
    Interest rate spread                         2.89%            2.46%
    Net interest margin                          3.23%            2.97%
    Allowance for loan losses as a percentage of                         
     total loans                                 1.75%            1.24%
    Allowance for loan losses as a percentage of                         
     NPL's                                      78.38%           37.83%
    Ratio of net charge offs as a percentage of                          
     average loans                               0.57%            0.44%
    Efficiency Ratio                            69.73%           74.39%
                                                
    
                                                
                                           December 31,     December 31, 
    Summary Balance Sheet                      2009             2008 
    ---------------------                --------------- ----------------
    Cash and cash equivalents              $    5,647      $    10,148 
    Securities                                 25,371           31,724 
    Loans, net                                384,133          374,993 
    All other assets                           23,660           17,134 
                                          -----------     ------------
                                             
    Total assets                          $   438,811      $   433,999 
                                          ===========     ============
    Deposit accounts                      $   370,635      $   345,544 
    All other liabilities                      40,908           61,610 
    Shareholders' equity                       27,268           26,845 
                                          -----------     ------------
    Total liabilities and shareholders' 
     equity                               $   438,811      $   433,999 
                                          ===========     ============

SOURCE Jacksonville Bancorp, Inc.

Copyright 2009 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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