Jacksonville Bancorp, Inc. Announces Earnings for Year Ended September 30, 2003

Jacksonville Bancorp, Inc. Announces Earnings for Year Ended September 30, 2003



JACKSONVILLE, Texas, Nov. 13  /PRNewswire-FirstCall/ -- Jacksonville Bancorp,
Inc.  the holding company of Jacksonville Savings Bank, SSB, of Jacksonville,
Texas, today reported net income of $5.8 million, or $3.16 diluted earnings per
share, for the year ended September 30, 2003 compared to $6.0 million or $3.30
diluted earnings per share for the year ended September 30, 2002.  The decrease
in net income was due primarily to an increase in total noninterest expense,
partially offset by increases in net interest income and total noninterest
income.

Jerry Chancellor, President and CEO stated, "The Bank experienced another very
profitable year."  He added that "earnings remained relatively stable as
interest rates declined during the period."

Total interest income declined by $1.4 million for the year ended September 30,
2003; however, this decline was more than offset by a decline in total interest
expense of $2.1 million.  Provision for losses on loans increased by $60,000 for
the year.  Net interest income after provision for losses on loans for the
period increased by $678,000 to $14.8 million from $14.2 million for the year
ended September 30, 2002.

Total non-interest income for the year increased $484,000 to $3.1 million, from
$2.6 million for the year ended September 30, 2002.  This increase was primarily
attributable to an increase in fees and deposit service charges of $367,000 and
an increase in real estate operations, net of $137,000.  The increase in
non-interest income was partially offset by a $9,000 loss on the sale of
investment securities and a decline of $11,000 in other non-interest income.

Non-interest expenses increased by $1.5 million to $9.1 million for the year
ended September 30, 2003, from $7.7 million for the prior year. Compensation and
benefits increased by $1.2 million to $5.9 million from the prior period due
primarily to a provision of $633,000 for retiree healthcare costs.  Occupancy
and equipment expense increased by $56,000 and insurance expense increased
$19,000 from the prior year.  For the year ended September 30, 2003,
amortization of intangibles increased by $14,000 and other expenses which
increased by $174,000.

At September 30, 2003, assets totaled $472.2 million, liabilities totaled $428.6
million, and stockholders' equity amounted to $43.7 million.

Jacksonville Bancorp, Inc. entered into an Agreement and Plan of Merger with
Franklin Bank Corp., dated as of August 12, 2003, which provides for the
acquisition of Jacksonville Bancorp by Franklin.  The parties presently
anticipate that the merger will be consummated during the quarter ending
December 31, 2003.  Jacksonville Bancorp has scheduled a special meeting of
stockholders to be held on December 5, 2003 to consider and vote upon the merger
agreement.  If the merger is consummated, Jacksonville Bancorp does not
anticipate holding its 2004 annual meeting.

Jacksonville Bancorp, Inc.'s wholly-owned subsidiary, Jacksonville Savings Bank,
SSB, operates from its headquarters in Jacksonville, Texas, and through its
eight branch, East Texas office network in Tyler (2), Longview (2), Palestine,
Athens, Rusk and Carthage.

  Additional financial data is available at http://www.sec.gov/ .


                        JACKSONVILLE BANCORP, INC.
              CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                       SEPTEMBER 30, 2003 AND 2002

                                                 2003              2002
                      ASSETS
  Cash on hand and in banks                   $5,468,206        $3,957,183
  Interest-bearing deposits                   13,530,135        11,395,212
  Investment securities:
    Held-to-maturity, approximate fair
     value of $2,587,410 and $8,115,888,
     respectively                              2,515,447         8,005,603
    Available-for-sale, carried at fair
     value                                    45,944,389        29,208,330
  Mortgage-backed securities:
    Held-to-maturity, approximate fair
     value of $7,619,381 and $37,735,916,
     respectively                              7,461,074        37,687,649
    Available-for-sale, carried at fair
     value                                    99,817,919        52,037,400
  Loans receivable, net                      279,136,721       265,090,618
  Accrued interest receivable                  2,882,774         2,928,855
  Foreclosed real estate, net                    218,171            87,006
  Premises and equipment, net                  5,616,454         5,361,276
  Stock in Federal Home Loan Bank of
   Dallas, at cost                             3,254,000         3,168,100
  Investment in real estate                    1,041,320         1,211,730
  Mortgage servicing rights                      671,616           652,331
  Goodwill and other intangibles, net          3,342,422         3,514,562
  Other assets                                 1,331,175           944,536
      Total assets                          $472,231,823      $425,250,391

         LIABILITIES AND STOCKHOLDERS' EQUITY
  LIABILITIES
  Deposits                                  $388,894,931      $353,896,248
  Advances from Federal Home Loan Bank        31,107,711        25,129,010
  Advances from borrowers for taxes and
   insurance                                   4,948,710         4,023,222
  Accrued expenses and other
   liabilities                                 3,623,276         2,993,354
    Total liabilities                        428,574,628       386,041,834

  STOCKHOLDERS' EQUITY
  Preferred stock, no par value,
   5,000,000 shares authorized; none
   issued                                            ---               ---
  Common stock, $.01 par value,
   25,000,000 shares authorized;
   2,777,210 and 2,738,569 shares
   issued; 1,800,465 and 1,761,824
   shares outstanding at 2003 and
   2002, respectively                             27,772            27,386
  Additional paid-in capital                  23,942,182        23,427,329
  Retained earnings                           37,056,978        32,310,194
  Accumulated other comprehensive
   income (loss), unrealized gain (loss)
   on securities available for sale, net
   of tax                                       (514,649)          376,658
  Less:
    Treasury stock, at cost (976,745 shares) (16,015,455)      (16,015,455)
    Shares acquired by Employee Stock
     Ownership Plan                             (839,633)         (917,555)
      Total stockholders' equity              43,657,195        39,208,557
        Total liabilities and stockholders'
         equity                             $472,231,823      $425,250,391


                        JACKSONVILLE BANCORP, INC.
                   CONSOLIDATED STATEMENTS OF EARNINGS
              YEARS ENDED SEPTEMBER 30, 2003, 2002 AND 2001

                                          2003        2002         2001
  INTEREST INCOME
    Loans receivable                  $20,842,116  $21,728,116  $19,772,106
    Mortgage-backed securities          3,570,788    4,519,882    2,734,813
    Investment securities               2,070,816    1,528,161    1,257,104
    Other                                 220,539      289,784      467,352
      Total interest income            26,704,259   28,065,943   24,231,375

  INTEREST EXPENSE
    Deposits                           10,433,469   11,984,928   11,535,088
    Interest on borrowings              1,277,025    1,825,706    2,506,155
      Total interest expense           11,710,494   13,810,634   14,041,243
      Net interest income              14,993,765   14,255,309   10,190,132

  PROVISION FOR LOSSES ON LOANS           162,000      101,688       85,500
    Net interest income after
     provision for losses on loans     14,831,765   14,153,621   10,104,632

  NONINTEREST INCOME
    Fee and deposit service charges     2,695,992    2,329,149    1,949,946
    Real estate operations, net           105,829      (31,333)     215,182
    (Loss) gain on sale of securities      (8,932)         ---       42,411
    Other                                 257,996      269,214      171,377
      Total noninterest income          3,050,885    2,567,030    2,378,916

  NONINTEREST EXPENSE
    Compensation and benefits           5,867,313    4,674,496    4,262,859
    Occupancy and equipment               996,591      940,610      802,974
    Amortization of intangibles           172,140      157,795          ---
    Insurance expense                     130,209      111,680       96,532
    Other                               1,961,570    1,787,173    1,454,245
      Total noninterest expense         9,127,823    7,671,754    6,616,610

  INCOME BEFORE TAXES ON INCOME         8,754,827    9,048,897    5,866,938

  TAXES ON INCOME
    Current                             2,972,724    2,955,548    1,544,085
    Deferred                                1,809      117,680      446,000
      Total income tax expense          2,974,533    3,073,228    1,990,085
        Net earnings                    5,780,294    5,975,669    3,876,853

  EARNINGS PER COMMON SHARE
    Basic                                   $3.38        $3.48        $2.18
    Diluted                                 $3.16        $3.30        $2.06


                        JACKSONVILLE BANCORP, INC.
             CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
              YEARS ENDED SEPTEMBER 30, 2003, 2002 AND 2001

                                                Additional       Compre-
                                       Common     Paid-in        hensive
                                        Stock     Capital         Income

  Balance at September 30, 2000        $26,760  $22,742,784

    Exercise of stock options
     (29,423 shares)                       293      261,072
    ESOP shares released                   ---       42,107
    Accrual of management
     recognition plan awards               ---          ---
    Comprehensive income:
      Net earnings                         ---          ---      $3,876,853
      Other comprehensive income, net
       of tax, unrealized gain on
       securities available-for-sale       ---          ---       1,302,167
        Comprehensive income                                     $5,179,020
    Dividends declared                     ---          ---
    Purchase of 161,300 Treasury
     shares                                ---          ---

  Balance at September 30, 2001         27,053   23,045,963

    Exercise of stock options
     (33,174 shares)                       333      311,596
    ESOP shares released                   ---       69,770
    Accrual of management
     recognition plan awards               ---          ---
    Comprehensive income:
      Net earnings                         ---          ---      $5,975,669
      Other comprehensive income, net
       of tax, unrealized (loss) on
       securities available-for-sale       ---          ---         (24,657)
        Comprehensive income                                     $5,951,012
    Dividends declared                     ---          ---
    Purchase of 107,185 Treasury
     shares                                ---          ---

  Balance at September 30, 2002        $27,386  $23,427,329


                                     Accumulated
                                        Other
                                    Comprehensive
                                       Income     Retained       Treasury
                                       (Loss)     Earnings         Stock

  Balance at September 30, 2000      $(900,852) $24,210,956    $(10,753,968)

    Exercise of stock options
     (29,423 shares)                       ---          ---             ---
    ESOP shares released                   ---          ---             ---
    Accrual of management
     recognition plan awards               ---          ---             ---
    Comprehensive income:
      Net earnings                         ---    3,876,853             ---
      Other comprehensive income, net
       of tax, unrealized gain on
       securities
       available-for-sale            1,302,167          ---             ---
        Comprehensive income
    Dividends declared                     ---     (898,767)            ---
    Purchase of 161,300 Treasury
     shares                                ---          ---      (2,921,652)

  Balance at September 30, 2001        401,315   27,189,042     (13,675,620)

    Exercise of stock options
     (33,174 shares)                       ---          ---             ---
    ESOP shares released                   ---          ---             ---
    Accrual of management recognition
     plan awards                           ---          ---             ---
    Comprehensive income:
      Net earnings                         ---    5,975,669             ---
      Other comprehensive income, net
       of tax, unrealized (loss) on
       securities available-for-sale   (24,657)         ---             ---
        Comprehensive income
    Dividends declared                     ---     (854,517)            ---
    Purchase of 107,185 Treasury
     shares                                ---          ---      (2,339,835)

  Balance at September 30, 2002       $376,658  $32,310,194    $(16,015,455)


                                       Shares       Shares         Total
                                      Acquired     Acquired    Stockholders'
                                       by ESOP      by MRP         Equity

  Balance at September 30, 2000    $(1,055,546)   $(181,067)    $34,089,067

    Exercise of stock options
     (29,423 shares)                       ---          ---         261,365
    ESOP shares released                66,179          ---         108,286
    Accrual of management
     recognition plan awards               ---      167,138         167,138
    Comprehensive income:
      Net earnings                         ---          ---       3,876,853
      Other comprehensive income,
       net of tax, unrealized gain
       on securities
       available-for-sale                  ---          ---       1,302,167
        Comprehensive income
    Dividends declared                     ---          ---        (898,767)
    Purchase of 161,300 Treasury
     shares                                ---          ---      (2,921,652)

  Balance at September 30, 2001       (989,367)     (13,929)     35,984,457

    Exercise of stock options
     (33,174 shares)                       ---          ---         311,929
    ESOP shares released                71,812          ---         141,582
    Accrual of management
     recognition plan awards               ---       13,929          13,929
    Comprehensive income:
      Net earnings                         ---          ---       5,975,669
      Other comprehensive income,
       net of tax, unrealized
       (loss) on securities
       available-for-sale                  ---          ---         (24,657)
        Comprehensive income
    Dividends declared                     ---          ---        (854,517)
    Purchase of 107,185 Treasury
     shares                                ---          ---      (2,339,835)

  Balance at September 30, 2002      $(917,555)        $---     $39,208,557


                                                  Additional       Compre-
                                        Common     Paid-in         hensive
                                         Stock     Capital          Income

  Balance at September 30, 2002        $27,386  $23,427,329

    Exercise of stock options
     (38,641 shares)                       386      404,733
    ESOP shares released                   ---      110,120
    Comprehensive income:
      Net earnings                         ---          ---      $5,780,294
      Other comprehensive income,
       net of tax, unrealized
       (loss) on securities
       available-for-sale                  ---          ---        (891,307)
        Comprehensive income                                     $4,888,987
    Dividends declared                     ---          ---

  Balance at September 30, 2003        $27,772  $23,942,182


                                      Accumulated
                                        Other
                                     Comprehensive
                                        Income    Retained     Treasury
                                        (Loss)    Earnings      Stock

  Balance at September 30, 2002       $376,658  $32,310,194    $(16,015,455)

    Exercise of stock options
     (38,641 shares)                       ---          ---             ---
    ESOP shares released                   ---          ---             ---
    Comprehensive income:
      Net earnings                         ---    5,780,294             ---
      Other comprehensive income,
       net of tax, unrealized
       (loss) on securities
       available-for-sale             (891,307)         ---             ---
        Comprehensive income
    Dividends declared                     ---   (1,033,510)            ---

  Balance at September 30, 2003      $(514,649) $37,056,978    $(16,015,455)


                                       Shares       Shares       Total
                                      Acquired     Acquired   Stockholders'
                                       by ESOP      by MRP       Equity

  Balance at September 30, 2002      $(917,555)        $---     $39,208,557

    Exercise of stock options
     (38,641 shares)                       ---          ---         405,119
    ESOP shares released                77,922          ---         188,042
    Comprehensive income:
      Net earnings                         ---          ---       5,780,294
      Other comprehensive income,
       net of tax, unrealized
       (loss) on securities
       available-for-sale                  ---          ---        (891,307)
        Comprehensive income
    Dividends declared                     ---          ---      (1,033,510)

  Balance at September 30, 2003      $(839,633)        $---     $43,657,195


                          JACKSONVILLE BANCORP, INC.
                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                YEARS ENDED SEPTEMBER 30, 2003, 2002 AND 2001

                                          2003         2002         2001
  CASH FLOWS FROM OPERATING
   ACTIVITIES
      Net income                       $5,780,294   $5,975,669   $3,876,853
      Adjustments to reconcile net
       income to net cash
       provided by operating
       activities:
        Depreciation                      508,434      484,585      339,770
        Amortization/accretion of
         securities                       780,302      135,524      146,516
        Amortization of intangibles       172,140      157,795          ---
        Provision for losses on loans     162,000      101,688       85,500
        Loans originated for sale     (40,165,598) (39,208,136) (20,932,788)
        Loans sold                     40,165,598   39,208,136   20,932,788
        Net loss (gain) on sale of
         securities                         8,932          ---      (42,316)
        Net gain on sale of real
         estate                          (213,582)    (106,984)    (346,095)
        Loss on disposal of assets         85,772          ---          ---
        Accrual of MRP awards                 ---       13,929      167,138
        Release of ESOP shares            188,042      141,582      108,286
        Change in assets and
         liabilities:
          Decrease (increase) in other
           assets                        (137,429)     389,723   (1,177,451)
          Increase in accrued expenses
           and other liabilities          814,336      483,227    1,020,777
          Decrease in deferred income      (6,069)     (15,729)     (20,310)
          Increase (decrease) in
           mortgage servicing rights      (19,285)     (54,793)      27,967
          Decrease (increase) in
           accrued interest receivable     46,081     (201,999)    (203,107)
            Net cash provided by
             operating activities       8,169,968    7,504,217    3,983,528

  CASH FLOWS FROM INVESTING
   ACTIVITIES
    Proceeds on maturity of
     investment securities             31,936,460   33,560,977   18,373,775
    Proceeds from sale of investment
     securities                        10,000,000          ---    1,021,668
    Proceeds from sale of premises
     and equipment                            ---      171,140          ---
    Purchase of investment securities (53,375,000) (52,030,000) (15,500,000)
    Net principal
     payments/originations on loans   (14,551,210) (18,812,416) (19,444,687)
    Proceeds from sale of real estate     601,042      239,408      312,131
    Purchase of mortgage-backed
     securities                       (91,253,505) (67,527,420) (46,965,170)
    Principal paydowns on mortgage-
     backed securities                 71,784,102   36,515,434   22,051,666
    Capital expenditures                 (849,384)  (1,222,078)    (276,063)
    Purchase of stock in FHLB Dallas      (85,900)    (554,900)    (456,700)
    Premium on acquisition of
     Carthage branch                          ---   (3,672,357)         ---
    Investment in real estate              (5,108)    (153,352)     (53,946)
            Net cash used in
             investing activities     (45,798,503) (73,485,564) (40,937,326)

  CASH FLOWS FROM FINANCING
   ACTIVITIES
    Net increase in deposits           34,998,683   93,592,321   39,537,683
    Increase (decrease) in advance
     payments by borrowers for
     property taxes and insurance         925,488      (36,410)     (14,285)
    Advances from FHLB                 15,550,000   31,000,000   43,000,000
    Payment of FHLB advances           (9,571,299) (53,978,764) (35,892,226)
    Proceeds from exercise of stock
     options                              405,119      311,929      261,365
    Purchase of Treasury stock                ---   (2,339,835)  (2,921,652)
    Dividends paid                     (1,033,510)    (854,517)    (898,767)
            Net cash provided by
             financing activities      41,274,481   67,694,724   43,072,118
            Net increase in cash
             and cash equivalents       3,645,946    1,713,377    6,118,320

  CASH AND CASH EQUIVALENTS
    Beginning of year                  15,352,395   13,639,018    7,520,698
    End of year                       $18,998,341  $15,352,395  $13,639,018


DATASOURCE: Jacksonville Bancorp, Inc.



CONTACT:  Bill W. Taylor, Executive Vice President, C.F.O. of

Jacksonville Bancorp, Inc., [phone]

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