JACKSONVILLE, Ill., July 11, 2017 (GLOBE NEWSWIRE) -- Jacksonville Bancorp, Inc. (NASDAQ: JXSB ) reported unaudited net income for the three months ended June 30, 2017, of $806,000, or $0.45 per share of common stock, basic and diluted, compared to unaudited net income of $766,000, or $0.43 per share of common stock, basic and diluted, for the three months ended June 30, 2016. The Company reported unaudited net income of $1,565,000, or $0.88 per share of common stock, basic, and $0.87 per share of common stock, diluted, for the six months ended June 30, 2017, compared to unaudited net income of $1,592,000, 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. Basic per share information for the three and six months ended June 30, 2017, is based upon 1,790,008 and 1,787,311 average shares outstanding, respectively, compared to the three and six months ended June 30, 2016, which was based upon 1,775,726 and 1,773,321 average shares outstanding, respectively.
Net income increased $40,000 to $806,000 during the second quarter of 2017, as compared to the second quarter of 2016. The increase in net income reflected an increase of $33,000 in noninterest income and a decrease of $107,000 in noninterest expense, partially offset by a decrease of $71,000 in net interest income and an increase of $29,000 in income taxes.
Net interest income decreased $71,000 to $2.5 million during the second quarter of 2017, reflecting a decrease of $34,000 in interest income and an increase of $37,000 in interest expense, as compared to the second quarter of 2016. For the three months ended June 30, 2017, our net interest margin was 3.33% compared to 3.67% for the three months ended June 30, 2016. The ratio of interest earning assets to interest bearing liabilities at June 30, 2017 and June 30, 2016 was 1.30x and 1.29x, respectively.
The provision for loan losses remained stable at $30,000 during the second quarters of 2017 and 2016. Management reviews the allowance for loan losses quarterly and has determined the allowance for loan losses with a balance of $3.1 million, or 1.6% of total loans, at June 30, 2017 to be adequate. On this date, nonperforming loans totaled $1.5 million, or 0.78% of total loans.
The increase of $33,000 in noninterest income to $1.1 million during the second quarter of 2017 was primarily due to increases of $23,000 in service charges on deposits and $9,000 in ATM and debit card interchange income. Noninterest expense decreased $107,000 to $2.5 million during the second quarter of 2017. The decrease in noninterest expense was primarily due to decreases of $89,000 in real estate owned expense and $45,000 in compensation and benefits expense, partially offset by increases of $14,000 in occupancy expense and $14,000 in data processing and telecommunications expense. The $29,000 increase in income taxes reflected the higher level of taxable income during the second quarter of 2017, as compared to the second quarter of 2016.
Net income decreased $27,000 to $1.6 million during the first six months of 2017 resulting in an annualized return on assets of 0.98%, compared to 1.06% during the first six months of 2016. The decrease in net income reflected a decrease of $187,000 in net interest income, partially offset by an increase of $103,000 in noninterest income and decreases of $53,000 in noninterest expense and $4,000 in income taxes.
The decrease of $187,000 in net interest income to $5.1 million during the first six months of 2017, compared to the same period of 2016, was due to a decrease of $142,000 in interest income and an increase of $45,000 in interest expense. The provision for loan losses remained steady at $60,000 during the first halves of 2017 and 2016. The increase of $103,000 in noninterest income to $2.2 million during the first six months of 2017 was primarily due to increases of $50,000 in net income on mortgage banking operations, $34,000 in service charges on deposits, and $20,000 in ATM and debit card interchange income. Noninterest expense decreased $53,000 to $5.0 million during the first six months of 2017 primarily due to decreases of $65,000 in compensation and benefits expense and $38,000 in real estate owned expense, partially offset by an increase of $46,000 in data processing and telecommunications expense. The decrease of $4,000 in income taxes reflected the lower level of taxable income during the first half of 2017 as compared to the same period of 2016.
Total assets at June 30, 2017 were $335.8 million compared to $319.3 million at December 31, 2016. The increase in total assets reflected an increase in cash and cash equivalents as a result of short-term, seasonal growth in public deposits. Total deposits at June 30, 2017 were $273.3 million compared to $258.7 million at December 31, 2016. Total stockholders’ equity increased to $49.1 million at June 30, 2017 from $46.2 million at December 31, 2016. The Company reported a book value per share of $27.07 at June 30, 2017. At June 30, 2017, 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 13.0%, 19.1%, 19.1%, and 20.4%, 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, 2017 and 2016, 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
