JACKSONVILLE, Fla., Nov. 8, 2010 /PRNewswire-FirstCall/ -- Jacksonville Bancorp, Inc. , holding company for The Jacksonville Bank, reported the Company had a third quarter net loss of $349,000 compared to a net income of $325,000 during the third quarter in 2009. On a per share basis, the net loss was $0.20 compared to a net income of $0.19 for the same period in 2009. The loss for the quarter was driven primarily by additional provisions for loan losses, merger-related expenses, write-down of OREO values, and other related expenses on foreclosed property.
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Total assets decreased $11.0 million to $427.8 million at September 30, 2010 from $438.8 million at December 31, 2009. The decrease was driven primarily by a decrease in net loans of $13.6 million offset by an increase in OREO properties of $2.3 million. The decrease in net loans was driven primarily by a reduction in residential real estate loans of $4.1 million, or 4.2%, construction real estate loans of $3.1 million, or 9.3%, commercial real estate loans of $5.1 million, or 2.2%, and consumer loans of $755,000 or 19.4%, offset by an increase in commercial loans of $1.3 million, or 5.6%, and an increase in allowance for loan losses of $2.1 million.
The Company's nonperforming assets at September 30, 2010 were $22.1 million compared to $12.8 million at December 31, 2009 and $12.5 million at June 30, 2010. Total delinquencies (loans past due 30 or more days) increased to $20.6 million, or 5.4% of total loans at September 30, 2010 compared to $10.1 million, or 2.6% of total loans, at June 30, 2010. The increase in nonperforming assets at September 30, 2010 was principally a result of an increase in nonaccrual commercial real estate loans. General economic conditions and the real estate market continue to be challenging in the Bank's geographic market.
Jacksonville Bancorp, Inc. President Gilbert J. Pomar, III stated, "We continue to operate our core business conservatively while taking an aggressive approach when analyzing the adequacy of our reserves. Our team of experienced bankers is committed to quickly identifying potential problems and working with our customers whenever possible to traverse through this unique environment." The Bank remains well capitalized with total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage capital at 10.87%, 9.60% and 8.40%, respectively, at September 30, 2010. At September 30, 2010, the Company's tangible common equity as a percent of total assets was 5.76% and its book value per common share was $14.07.
Nonperforming assets increased to $22.1 million, or 5.2% of total assets, compared to $7.2 million, or 1.6% of total assets, in the prior year.
September 30, 2010 2009 ---- ---- (Dollars in thousands) Nonaccruing loans $15,806 $5,950 Loans past due over 90 days still on accrual -- -- --- --- Total nonperforming loans 15,806 5,950 Foreclosed assets, net 6,299 1,245 ----- ----- Total nonperforming assets 22,105 7,195 ====== ===== Allowance for loan losses $8,922 $6,455 Nonperforming loans and foreclosed assets as a percent of total assets 5.17% 1.64% Nonperforming loans as a percent of gross loans 4.17% 1.50% Loans past due 30-89 days, still accruing $4,811 $4,849
The allowance for loan losses was 2.35% of total loans at September 30, 2010 compared to 1.63% for the comparable period in 2009 and 1.75% at December 31, 2009. Provision for loan loss expense was $799,000 and $5.1 million for the three- and nine-month periods of 2010, respectively, compared to $1.1 million and $3.3 million for the same periods in 2009. The continued elevated level of provision for loan losses in 2010 was driven primarily by the charge-off of several loans graded as substandard and an increase in the level of reserve determined during management's review of the loan portfolio. The Company has recorded net charge-offs of $125,000 and $3.0 million for the three- and nine-month periods in 2010 compared to $278,000 and $1.6 million for the comparable periods in 2009 and $2.2 million in net charge-offs for all of 2009.
On May 10, 2010, the Company entered into a definitive agreement to acquire Atlantic BancGroup, Inc. and simultaneously agreed to issue $30 million in new capital to four private investors. Subsequently, on September 20, 2010, the Company and its investors entered into an amendment whereby the capital issued was increased to $35 million. At the same time, an amendment to the Plan of Merger was entered into whereby the shareholders would receive an additional $0.67 in cash. "The merger with Oceanside Bank and recapitalization of our Company will provide us the opportunity to strategically position our Company for the future," Mr. Pomar went on to say. The transactions are expected to close and the two operations are expected to be fully integrated before year end.
For the first nine months of 2010, Jacksonville Bancorp reported a net loss of $2.3 million compared to a $180,000 net loss in the first nine months of 2009. On a per share basis, the net loss was $1.33 for the nine-month period compared to a net loss of $0.10 per share in 2009.
The Company's net interest margin increased to 3.61% from 3.59% when comparing the three months ending September 30, 2010 to the same period last year and to 3.42% from 3.15% for the comparable nine-month periods. The increase is mainly the result of the Company focusing on core deposit initiatives and reducing the rates paid on these funding sources.
Noninterest income was $299,000 and $833,000 for the three- and nine-month periods in 2010, respectively, compared to $241,000 and $611,000 for the comparable periods in 2009. The increase in the quarterly income was primarily the result of the Company recording a $62,000 windfall to offset the additional taxes and penalties from the cancellation of one of its BOLI policies. A new policy was entered into which should provide a higher return. In 2009, a $132,000 write-off in the stock of Silverton Bank, N.A. was recognized due to its May 2009 failure and was offset by a loan referral fee in the amount of $52,000.
Noninterest expense increased to $3.9 million and $10.4 million for the three- and nine-month periods in 2010, respectively, from $2.5 million and $7.5 million for the same periods in 2009. The increase of $1.3 million for the linked quarter is mainly attributable to recording $760,000 for merger-related expenses, $308,000 for OREO write down and other OREO expenses, and $275,000 in additional compensation expenses.
Total deposits decreased $9.2 million, or 2.5%, to $361.4 million at September 30, 2010 from $370.6 million at December 31, 2009, primarily driven by a $27.8 million increase in money market, NOW and savings deposits offset by a $33.7 million decrease in time deposits.
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. The Jacksonville Bank opened for business on May 28, 1999 and provides a variety of community banking services to businesses and individuals through its five full-service banking offices 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: 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 September March 30, June 30, 31, 2010 2010 2010 ---- ---- ---- Earnings Summary ---------------- Total interest income $5,666 $5,749 $5,795 Total interest expense 1,926 2,222 2,220 Net interest income 3,740 3,527 3,575 Provision for loan losses 799 1,920 2,375 Net interest income after provision for loan losses 2,941 1,607 1,200 Noninterest income 299 286 248 Noninterest expense 3,865 3,443 3,086 Income before income tax (625) (1,550) (1,638) Income tax provision (276) (558) (650) Net income $(349) $(992) $(988) Summary Average Balance Sheet ----------------------- Loans, gross $381,282 $387,961 $391,073 Securities 27,925 27,327 25,340 Other earning assets 2,208 17,384 10,037 ----- ------ ------ Total earning assets 411,415 432,672 426,450 Other assets 23,922 20,656 21,416 ------ ------ ------ - - - Total assets $435,337 $453,328 $447,866 ======== ======== ======== Interest bearing liabilities $367,957 $384,776 $377,395 Other liabilities 42,177 42,380 43,105 Shareholders' equity 25,203 26,172 27,366 Total liabilities and shareholders' equity $435,337 $453,328 $447,866 ======== ======== ======== Per Share Data -------------- Basic earnings per share $(0.20) $(0.57) $(0.56) Diluted earnings per share $(0.20) $(0.57) $(0.56) Basic weighted average shares outstanding 1,750,197 1,749,443 1,748,832 Diluted weighted average shares outstanding 1,750,197 1,749,443 1,748,832 Book value per basic share at end of period $14.07 $14.30 $14.98 Total shares outstanding at end of period 1,750,437 1,750,437 1,749,526 Closing market price per share $7.77 $10.90 $10.00 Selected Ratios --------------- Return on average assets -0.32% -0.88% -0.89% Return on average equity -5.49% -15.20% -14.64% Average equity to average assets 5.79% 5.77% 6.11% Tangible common equity to tangible assets 5.76% 5.54% 5.79% Interest rate spread 3.38% 3.00% 3.12% Net interest margin 3.61% 3.27% 3.40% Allowance for loan losses as a percentage of total loans 2.35% 2.16% 1.95% Allowance for loan losses as a percentage of NPL's 56.45% 128.17% 102.90% Ratio of net charge offs as a percentage of average loans 0.13% 1.33% 1.67% Efficiency Ratio 95.69% 90.30% 80.72% Three Months Ended December September 31, 30, 2009 2009 ---- ---- Earnings Summary ---------------- Total interest income $5,817 $6,081 Total interest expense 2,151 2,266 Net interest income 3,666 3,815 Provision for loan losses 1,046 1,070 Net interest income after provision for loan losses 2,620 2,745 Noninterest income 230 241 Noninterest expense 2,502 2,528 Income before income tax 348 458 Income tax provision 92 133 Net income $256 $325 Summary Average Balance Sheet ----------------------------- Loans, gross $392,219 $395,133 Securities 26,033 26,083 Other earning assets 941 525 --- --- Total earning assets 419,193 421,741 Other assets 19,669 16,127 ------ ------ - - Total assets $438,862 $437,868 ======== ======== Interest bearing liabilities $364,871 $368,071 Other liabilities 46,919 42,968 Shareholders' equity 27,072 26,829 Total liabilities and shareholders' equity $438,862 $437,868 ======== ======== Per Share Data -------------- Basic earnings per share $0.15 $0.19 Diluted earnings per share $0.15 $0.19 Basic weighted average shares outstanding 1,749,280 1,748,586 Diluted weighted average shares outstanding 1,750,112 1,749,074 Book value per basic share at end of period $15.59 $15.42 Total shares outstanding at end of period 1,749,243 1,748,854 Closing market price per share $9.49 $10.75 Selected Ratios --------------- Return on average assets 0.23% 0.29% Return on average equity 3.75% 4.81% Average equity to average assets 6.17% 6.13% Tangible common equity to tangible assets 6.21% 6.13% Interest rate spread 3.17% 3.28% Net interest margin 3.47% 3.59% Allowance for loan losses as a percentage of total loans 1.75% 1.63% Allowance for loan losses as a percentage of NPL's 78.38% 108.49% Ratio of net charge offs as a percentage of average loans 0.66% 0.28% Efficiency Ratio 64.22% 62.33% September March 30, June 30, 31, Summary Balance Sheet 2010 2010 2010 ---- ---- ---- --------------------- Cash and cash equivalents $4,542 $23,131 $19,217 Securities 25,978 28,648 26,513 Loans, net 370,498 373,885 382,983 All other assets 26,812 26,564 23,662 ------ ------ ------ Total assets $427,830 $452,228 $452,375 ======== ======== ======== Deposit accounts $361,436 $391,698 $385,944 All other liabilities 41,762 35,499 40,220 Shareholders' equity 24,632 25,031 26,211 ------ ------ ------ Total liabilities and shareholders' equity $427,830 $452,228 $452,375 ======== ======== ======== December September 31, 30, Summary Balance Sheet 2009 2009 ---- ---- --------------------- Cash and cash equivalents $5,647 $5,496 Securities 25,371 26,955 Loans, net 384,133 389,082 All other assets 23,660 18,410 ------ ------ Total assets $438,811 $439,943 ======== ======== Deposit accounts $370,635 $321,603 All other liabilities 40,908 91,380 Shareholders' equity 27,268 26,960 ------ ------ Total liabilities and shareholders' equity $438,811 $439,943 ======== ======== Nine Months Ended September September 30, 30, 2010 2009 ---- ---- Earnings Summary ---------------- Total interest income $17,210 $17,387 Total interest expense 6,368 7,578 Net interest income 10,842 9,809 Provision for loan losses 5,094 3,315 Net interest income after provision for loan losses 5,748 6,494 Noninterest income 833 611 Noninterest expense 10,394 7,481 Income before income tax (3,813) (376) Income tax provision (1,484) (195) Net income $(2,329) $(181) Summary Average Balance Sheet ----------------------------- Loans, gross $386,736 $388,193 Securities 26,874 27,567 Other earning assets 9,847 635 ----- --- Total earning assets 423,457 416,395 Other assets 22,008 16,328 ------ ------ - - Total assets $445,465 $432,723 ======== ======== Interest bearing liabilities $376,675 $363,451 Other liabilities 42,551 42,283 Shareholders' equity 26,239 26,989 Total liabilities and shareholders' equity $445,465 $432,723 ======== ======== Per Share Data -------------- Basic earnings per share $(1.33) $(0.10) Diluted earnings per share $(1.33) $(0.10) Basic weighted average shares outstanding 1,749,496 1,748,482 Diluted weighted average shares outstanding 1,749,496 1,748,482 Book value per basic share at end of period $14.07 $15.42 Total shares outstanding at end of period 1,750,437 1,748,854 Closing market price per share $7.77 $10.75 Selected Ratios --------------- Return on average assets -0.70% -0.06% Return on average equity -11.87% -0.90% Average equity to average assets 5.89% 6.24% Tangible common equity to tangible assets 5.76% 6.13% Interest rate spread 3.17% 2.79% Net interest margin 3.42% 3.15% Allowance for loan losses as a percentage of total loans 2.35% 1.63% Allowance for loan losses as a percentage of NPL's 56.45% 108.49% Ratio of net charge offs as a percentage of average loans 1.05% 0.54% Efficiency Ratio 89.03% 71.79% September September 30, 30, Summary Balance Sheet 2010 2009 ---- ---- --------------------- Cash and cash equivalents $4,542 $5,496 Securities 25,978 26,955 Loans, net 370,498 389,082 All other assets 26,812 18,410 ------ ------ Total assets $427,830 $439,943 ======== ======== Deposit accounts $361,436 $321,603 All other liabilities 41,762 91,380 Shareholders' equity 24,632 26,960 ------ ------ Total liabilities and shareholders' equity $427,830 $439,943 ======== ========
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Jacksonville Bancorp, Inc.
CONTACT: Valerie Kendall, +1-904-421-3051
Web Site: http://www.jaxbank.com/
