JXSB Jacksonville Bancorp Inc. (delisted)

Notes to Financial Statements

December 31, 2015 and 2014

The following description of Jacksonville Savings Bank 401(k) Profit Sharing Plan (Plan) provides only general information. Participants should refer to the Plan document and Summary Plan Description for a more complete description of the Plan’s provisions, which are available from the plan administrator.

General

The Plan is a defined contribution plan covering all full-time employees of the Jacksonville Savings Bank (Bank) who have at least one year of service, have completed 1,000 hours of service and are age 21 or older. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).

Contributions

Participants may contribute up to the maximum dollar limit set by law of pre-tax annual compensation, as defined in the Plan. Employee rollover and employee Roth contributions are also permitted. The Bank makes a matching contribution calculated as a percentage of the before tax contribution made on behalf of each contributing participant. The Bank determines the percentage each year. The Bank elected to match 2015 contributions up to 4.5% of eligible compensation of each participant and 2014 contributions up to 5.0% of the eligible compensation of each participant. The Bank may also, at its sole discretion, contribute to the Plan an amount to be determined from year to year as a profit sharing contribution. The Bank did not make a profit sharing contribution in 2015 or 2014.

Participant Investment Account Options

Investment account options available include various mutual funds, money market funds, savings deposit accounts, and common stock of Jacksonville Bancorp, Inc. Each participant has the option of directing his contributions into any of the separate investment accounts and may change the allocation daily.

Participant Accounts

Each participant’s account is credited with the participant’s contribution, the Bank’s contribution and plan earnings. The benefits to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Vesting

Participants are immediately vested in their voluntary contributions and the Bank’s matching contributions plus earnings thereon. Vesting in the Bank’s profit sharing contribution portion of their accounts plus earnings thereon is based on years of service. A person is fully vested after 6 years of continuous service. Forfeitures are used to reduce the administrative expenses of the Plan.

Jacksonville Savings Bank 401(k)

Profit Sharing Plan

Notes to Financial Statements

December 31, 2015 and 2014

Payment of Benefits

Upon termination of service, a participant may elect to receive a lump-sum amount equal to the value of his account.

Forfeited Accounts

At December 31, 2015 and 2014, the Plan had no forfeited nonvested accounts.

Basis of Accounting

The accompanying financial statements are prepared on the accrual basis of accounting.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of net assets and changes in net assets and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates.

Valuation of Investments and Income Recognition

Quoted market prices, if available, are used to value investments. Common stock is valued at the closing bid price reported on the active market on which the individual securities are traded. Mutual and money market funds are valued at the net asset value (NAV) of shares held by the plan at year end. Savings deposit accounts are valued at amortized cost, which approximates fair value.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net appreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Payment of Benefits

Benefit payments to participants are recorded upon distribution.

Jacksonville Savings Bank 401(k)

Profit Sharing Plan

Notes to Financial Statements

December 31, 2015 and 2014

In 2015, the Plan changed its accounting policy on plan accounting disclosures by adopting the provisions of ASU 2015-12, Plan Accounting (Topics 960, 962 and 965): Part II: Plan Investment Disclosures. The accounting policy change provided for in ASU 2015-12 changes the Plan’s disclosure requirements to eliminate and/or modify certain investment-related disclosures. This change was applied retrospectively for all periods presented.

Party-in-interest transactions include those with fiduciaries or employees of the Plan, any person who provides services to the Plan, an employer whose employees are covered by the Plan, a person who owns 50 percent or more of such an employer, or relatives of such persons.

The Plan’s investments are held in a trust account administered by Jacksonville Savings Bank. Active participants can purchase the common stock of Jacksonville Bancorp, Inc., the parent of the Bank. At December 31, 2015 and 2014, participants held 164,838 and 162,752 shares, respectively.

The Plan also holds savings deposit accounts with Jacksonville Savings Bank, totaling $2,481,733 and $2,518,959 at December 31, 2015 and 2014, respectively.

The Plan incurs expenses related to general administration and record keeping. The plan sponsor pays these expenses and certain accounting and auditing fees relating to the Plan.

Certain plan investments are shares of mutual funds management by American Funds. American Funds is custodian of these funds. Therefore, these transactions qualify as party-in-interest transactions. Fees paid by the plan for the investment management services are included in net appreciation in fair value of investments.

Jacksonville Savings Bank 401(k)

Profit Sharing Plan

Notes to Financial Statements

December 31, 2015 and 2014

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value:

Recurring Measurements

The following table presents the fair value measurements of assets recognized in the accompanying statements of net assets available for benefits measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at December 31, 2015 and 2014: