JXSB Jacksonville Bancorp Inc. (delisted)

Jacksonville Bancorp, Inc. (NASDAQ:JXSB) reported unaudited net income for the three months ended June 30, 2016, of $766,000, or $0.43 per share of common stock, basic and diluted, compared to net income of $836,000, or $0.47 per share of common stock, basic and diluted, for the three months ended June 30, 2015.  The Company reported unaudited net income of $1,593,000, or $0.90 per share of common stock, basic, and $0.89 per share of common stock, diluted, for the six months ended June 30, 2016, compared to net income of $1,623,000, or $0.91 per share of common stock, basic and diluted, for the six months ended June 30, 2015.  Basic per share information for the three and six months ended June 30, 2016, is based upon 1,775,726 and 1,773,321 average shares outstanding, respectively, compared to the three and six months ended June 30, 2015, which was based upon 1,774,375 and 1,774,828 average shares outstanding, respectively.

Net income decreased $70,000 to $766,000 during the second quarter of 2016, as compared to the second quarter of 2015.  The decrease in net income reflected a decrease of $57,000 in noninterest income and an increase of $103,000 in noninterest expense, partially offset by an increase of $36,000 in net interest income and decreases of $5,000 in provision for loan losses and $49,000 in income taxes.

Net interest income increased $36,000 to $2.6 million during the second quarter of 2016, reflecting decreases of $10,000 in interest income and $46,000 in interest expense, as compared to the second quarter of 2015.  For the three months ended June 30, 2016, our net interest margin was 3.67% compared to 3.64% for the three months ended June 30, 2015.  The ratio of interest earning assets to interest bearing liabilities at June 30, 2016 and June 30, 2015 was 1.29x and 1.28x, respectively. 

The provision for loan losses decreased $5,000 to $30,000 during the second quarter of 2016.  Management reviews the allowance for loan losses quarterly and has determined the allowance for loan losses with a balance of $3.0 million, or 1.5% of total loans, at June 30, 2016 to be adequate.  At June 30, 2016, nonperforming loans totaled $1.6 million, or 0.8% of total loans.  

The decrease of $57,000 in noninterest income to $1.0 million during the second quarter of 2016 was primarily due to a decrease of $114,000 in commission income, partially offset by an increase of $28,000 in gains on the sales of securities.  Noninterest expense increased $103,000 to $2.6 million during the second quarter of 2016. The increase in noninterest expense was primarily due to an increase of $57,000 in compensation and benefits expense.  The $49,000 decrease in income taxes reflected the lower level of taxable income during the second quarter of 2016, as compared to the second quarter of 2015.

Net income decreased $30,000 to $1.6 million during the first six months of 2016 resulting in an annualized return on assets of 1.06%, compared to 1.07% during the first six months of 2015.  The decrease in net income reflected a decrease of $83,000 in noninterest income and an increase of $92,000 in noninterest expense, partially offset by an increase of $109,000 in net interest income and decreases of $5,000 in provision for loan losses and $31,000 in income taxes.

The increase of $109,000 in net interest income to $5.3 million during the first six months of 2016, compared to the same period of 2015, was primarily due to a decrease of $111,000 in interest expense.  The provision for loan losses decreased $5,000 to $60,000 during the first half of 2016.  The decrease of $83,000 in noninterest income to $2.1 million during the first six months of 2016 was primarily due to a decrease of $74,000 in commission income.  Noninterest expense increased $92,000 to $5.1 million during the first six months of 2016 primarily due to an increase of $121,000 in compensation and benefits expense, partially offset by a decrease of $50,000 in real estate owned expense.  The decrease of $31,000 in income taxes reflected the lower level of taxable income during the first half of 2016 as compared to the same period of 2015.

Total assets at June 30, 2016 were $313.0 million compared to $308.6 million at December 31, 2015.  Total deposits at June 30, 2016 were $254.3 million compared to $239.3 million at December 31, 2015.  Total stockholders’ equity increased to $47.8 million at June 30, 2016 from $45.6 million at December 31, 2015.  The Company reported a book value per share of $26.60 at June 30, 2016.  At June 30, 2016, Jacksonville Savings Bank exceeded its applicable regulatory capital requirements and was considered well-capitalized with Tier 1 leverage, common equity Tier 1, Tier 1 risk-based capital, and total risk-based capital ratios of 13.5%, 18.9%, 18.9%, and 20.2%, respectively.

Jacksonville Bancorp, Inc. is a Maryland chartered stock holding company.  The Company is regulated as a bank holding company.  The Company is headquartered at 1211 West Morton Avenue, Jacksonville, Illinois.  The Company’s operations are limited to its ownership of Jacksonville Savings Bank, an Illinois chartered savings bank, which operates six branch offices located in Morgan, Macoupin, and Montgomery Counties in Illinois.  All information at and for the periods ended June 30, 2016 and 2015, has been derived from unaudited financial information.

This news release contains certain forward-looking statements within the meaning of the federal securities laws.  The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Reform Act of 1995, and is including this statement for purposes of these safe harbor provisions.  Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and experiences of the Company, are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, or similar expressions.  The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain.  Factors which could have a material adverse effect on the operations of the Company and the subsidiaries include, but are not limited to, changes in: interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area and accounting principles and guidelines.  These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Contact:
Richard A. Foss
President and CEO
(217) 245-4111

Diana S. Tone
Chief Financial Officer
(217) 245-4111