Published:
Jacksonville Bancorp Announces Third Quarter 2009 Results
JACKSONVILLE, Fla., Nov. 9 /PRNewswire-FirstCall/ -- Jacksonville Bancorp, Inc. (Nasdaq: JAXB), holding company for The Jacksonville Bank, reported net income for the third quarter of $325,000, compared to net income of $267,000 for the third quarter in 2008. On a per share basis, net income was $0.19, compared to $0.15 for the same period in 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20020410/JAXBLOGO )
Financial highlights for the third quarter are as follows:
-- Net interest margin -- improved to 3.59% during the quarter, compared to
2.97% in the previous sequential quarter, and 2.94% a year earlier.
-- Nonperforming assets -- improved during the quarter to 1.64% as a
percentage of total assets, compared to 3.48% in the previous quarter.
-- Improved earnings -- pre-tax, pre-provision earnings increased by
$902,000, compared to the preceding sequential quarter, and $519,000
over the same quarter in the previous year.
Total assets increased $5.9 million from $434.0 million at December 31, 2008 to $439.9 million at September 30, 2009. During the nine months ended September 30, 2009, the Company experienced net loan growth of $14.1 million, or 3.8%. Nonperforming assets at September 30, 2009 were $7.2 million, compared to $12.5 million at December 31, 2008, and $15.2 million at June 30, 2009. Total delinquencies (loans past due 30 or more days) were $10.8 million, or 2.73% of total loans, at September 30, 2009, compared to $14.8 million, or 3.8% of total loans, at June 30, 2009. The Company remains well capitalized with total risk-based capital, Tier 1 risk-based capital and Tier 1 leverage capital at 11.83%, 9.12% and 8.12%, respectively, at September 30, 2009.
Jacksonville Bancorp, Inc. President and CEO Gilbert J. Pomar, III stated, "These are solid results in this economic environment especially in our region. We continue to aggressively monitor our loan portfolio and have been expedient to identify and classify assets appropriately while working with our customers to support their needs during these challenging times."
The allowance for loan losses was 1.63% of total loans at September 30, 2009, compared to 1.14% at September 30, 2008, and 1.24% at December 31, 2008. Provision expense was $1.1 million and $3.3 million for the three- and nine-month periods of 2009, respectively, compared to $665,000 and $2.8 million for the same periods in 2008. The continued elevated level of provision for loan losses in 2009 was driven primarily by the level of charge-offs and the softening of real estate values in the Jacksonville market. The Company recorded net charge-offs of $278,000 and $1.6 million for the three- and nine-month periods in 2009, compared to $541,000 and $1.7 million for the comparable periods in 2008. Impaired loans were $21.3 million at September 30, 2009, compared to $16.1 million at June 30, 2009. The Company individually analyzes impaired loans and is aggressive in either charging off identified losses or recording a specific loan loss reserve for estimated losses.
"We remain committed to operating in a manner that protects our shareholders, customers and employees and remain focused on doing what is necessary to be the dominant community bank in Jacksonville," Mr. Pomar went on to say.
For the first nine months of 2009, Jacksonville Bancorp reported a net loss of $180,000, compared to a $36,000 net loss in the first nine months of 2008. On a per share basis, the net loss was $0.10 for the nine-month period, compared to a net loss of $0.02 per share in 2008.
The Company's net interest margin increased from 2.94% to 3.59% when comparing the three months ending September 30, 2009 to the same period last year. While the margin came under pressure from the rapid reduction in short-term rates (5.25% to .25%) during the 18-month period from June 2007 through December 2008, the Company has experienced consistent margin improvement during the three quarters of 2009 -- 2.87%, 2.97% and 3.59%, respectively. The increase was mainly the result of the Company taking advantage of the lowest funding sources available through utilization of established lines at the Federal Home Loan Bank and the Federal Reserve Bank as well as a lower level of nonperforming assets.
Noninterest income was $241,000 and $611,000 for the three- and nine-month periods in 2009, respectively, compared to $300,000 and $812,000 for the comparable periods in 2008. The decrease in the quarterly income was primarily the result of a $50,000 reduction in the income earned on the underlying assets within the Bank's BOLI policy. In addition to the reduction in BOLI earnings, the decrease for the nine-month period was further due to recognizing a $132,000 write-off in the stock of Silverton Bank, N.A. due to its May 2009 failure; these were partially offset by a loan referral fee in the amount of $52,000.
Noninterest expense increased slightly to $2.5 million and remained flat at $7.5 million for the three- and nine-month periods in 2009, respectively, from $2.3 million and $7.5 million for the same periods in 2008. The increase of $189,000 for the linked quarter is mainly due to a $63,000 increase in regulatory assessments and increases in data processing expenses of $44,000.
Total deposits decreased $23.9 million, or 6.9%, from $345.5 million at December 31, 2008 to $321.6 million at September 30, 2009, primarily driven by a $31.1 million planned decrease in higher yielding time deposits which was partially offset by increases of $2.8 million and $4.3 million in noninterest bearing, and money market, NOW and savings deposits, respectively. The remaining net decrease was offset by an increase in Federal Home Loan Bank advances of $28.4 million as the result of management's desire to take advantage of the lowest possible cost of funding sources.
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 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
Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Earnings Summary 2009 2009 2009 2008 2008
--------------- -------- -------- -------- -------- -------
Total interest
income $ 6,081 $ 5,625 $ 5,681 $ 6,104 $ 6,457
Total interest
expense 2,266 2,556 2,756 3,301 3,409
Net interest
income 3,815 3,069 2,925 2,803 3,048
Provision for
loan losses 1,070 1,307 938 787 665
Net interest
income after
provision for
loan losses 2,745 1,762 1,987 2,016 2,383
Noninterest income 241 224 146 366 300
Noninterest expense 2,528 2,667 2,286 2,328 2,339
Income before
income tax 458 (681) (153) 54 344
Income tax
Provision 133 (285) (44) (17) 77
Net income $ 325 $ (396) $ (109) $ 71 $ 267
Summary Average
Balance Sheet
---------------
Loans, gross $ 395,133 $ 387,232 $ 382,071 $ 380,203 $ 379,742
Securities 26,083 26,321 30,344 31,809 32,010
Other earning
assets 525 687 696 1,098 952
-------- -------- -------- -------- --------
Total earning
assets 421,741 414,240 413,111 413,110 412,704
Other assets 16,127 16,039 16,824 17,456 17,093
-------- -------- -------- -------- --------
Total assets $ 437,868 $ 430,279 $ 429,935 $ 430,566 $ 429,797
======== ======== ======== ======== ========
Interest bearing
liabilities $ 368,071 $ 362,346 $ 359,846 $ 359,466 $ 359,908
Other liabilities 42,968 40,894 42,986 44,470 43,356
Shareholders'
equity 26,829 27,039 27,103 26,630 26,533
Total
liabilities and
shareholders'
equity $ 437,868 $ 430,279 $ 429,935 $ 430,566 $ 429,797
======== ======== ======== ======== ========
Per Share Data
--------------
Basic earnings
per share $ 0.19 $ (0.23) $ (0.06) $ 0.04 $ 0.15
Diluted earnings
per share $ 0.19 $ (0.23) $ (0.06) $ 0.04 $ 0.15
Basic weighted
average shares
outstanding 1,748,586 1,748,214 1,748,647 1,748,630 1,748,567
Diluted weighted
average shares
outstanding 1,749,074 1,748,214 1,748,647 1,760,511 1,777,292
Book value per
basic share at
end of period $ 15.42 $ 15.13 $ 15.36 $ 15.35 $ 15.13
Total shares
outstanding at
end of period 1,748,854 1,747,599 1,748,799 1,748,599 1,748,631
Closing market
price per share $ 10.75 $ 10.50 $ 8.00 $ 11.10 $ 11.72
Selected Ratios
---------------
Return on average
assets 0.29% -0.37% -0.10% 0.07% 0.25%
Return on average
equity 4.81% -5.87% -1.63% 1.06% 4.00%
Average equity
to average
assets 6.13% 6.28% 6.30% 6.18% 6.17%
Tangible common
equity to
tangible assets 6.15% 6.04% 6.22% 6.19% 6.11%
Interest rate spread 3.28% 2.62% 2.47% 2.22% 2.46%
Net interest margin 3.59% 2.97% 2.87% 2.70% 2.94%
Allowance for loan
losses as a
percentage
of total loans 1.63% 1.45% 1.29% 1.24% 1.14%
Allowance for loan
losses as a
percentage
of NPA's 89.73% 37.22% 51.27% 37.56% 55.40%
Ratio of net
charge offs
as a percentage
of average loans 0.28% 0.61% 0.74% 0.44% 0.57%
Efficiency Ratio 62.33% 80.99% 74.44% 73.46% 69.86%
Summary Balance Sept. 30, June 30, March 31, Dec. 31, Sept. 30,
Sheet 2009 2009 2009 2008 2008
--------------- -------- -------- -------- -------- -------
Cash and cash
equivalents $ 5,496 $ 9,345 $ 6,847 $ 10,148 $ 7,746
Securities 26,955 25,571 29,035 31,724 31,851
Loans, net 389,082 384,817 378,755 374,993 376,344
All other assets 18,410 17,725 17,350 17,134 17,231
-------- -------- -------- -------- -------
Total assets $ 439,943 $ 437,458 $ 431,987 $ 433,999 $ 433,172
======== ======== ======== ======== =======
Deposit accounts $ 321,603 $ 321,864 $ 344,506 $ 345,544 $ 350,816
All other
liabilities 91,380 89,161 60,626 61,610 55,905
Shareholders'
equity 26,960 26,433 26,855 26,845 26,451
-------- -------- -------- -------- -------
Total liabilities
and shareholders'
equity $ 439,943 $ 437,458 $ 431,987 $ 433,999 $ 433,172
======== ======== ======== ======== =======
SOURCE Jacksonville Bancorp, Inc.
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Copyright © 2009, NewsBlaze,
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