Buoyed by a large private-equity investment and the acquisition of another Northeast Florida bank, Jacksonville Bancorp Inc. swung to a $439,000 profit in the first quarter from a $988,000 loss in the same period last year.
In November, Jacksonville received a $35 million infusion from an investment group led by CapGen Capital Group and used a portion of the proceeds to acquire the $258 million-asset Oceanside Bank in Jacksonville Beach. While that deal added to Jacksonville's portfolio of problem loans, it also helped boost total loans by nearly 30%, to $493 million at March 31, and helped increase deposits by more than 37%, to $386 million. The result: Net interest income in the quarter increased more than 64% year-over-year, to nearly $5.9 million, while noninterest income — driven largely by an increase in transactions after the merger — rose nearly 60%, to $396,000.
"The first full quarter following the merger has been dynamic," said Peter Schwenck, the chief executive at the $625 million-asset Jacksonville Bancorp. "There is no doubt that we are today a company with a much stronger balance sheet."
The first-quarter performance was also aided by the sale of 40 "substandard" loans in the first quarter for $13.9 million, Jacksonville said in a news release Monday. Still, asset quality remains a concern. At March 31, nonperforming assets totaled $40.6 million, an increase of 266% from the same period last year.