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.
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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.
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