Jacksonville Bancorp in Florida Ekes Out 2Q Profit

Jacksonville Bancorp (JAXB) in Florida recorded its second straight quarterly profit as it continues to clean up its loan portfolio.

The $522 million-asset company said Friday that it earned $29,000 in the second quarter, compared to a $1.8 million loss a year earlier.

Net interest income fell 8% from a year earlier, to $4.7 million, as gross loans decreased by 14%, to $390.3 million. The net interest margin expanded by 14 basis points from a year earlier, to 3.78%.

Improved credit quality made up for the decline in lending revenue. Jacksonville recorded a $267,000 reserve release in the second quarter, after recording a $11.7 million provision a year earlier. Net chargeoffs fell 35% from a year earlier, to $2.6 million, as nonperforming loans fell 63%, to $17 million. The improvement was mostly because of real estate writedowns and sales, including the sale of $50 million of troubled assets last December.

Noninterest income rose 30% from a year earlier, to $377,000. Noninterest expense fell 2% from the second quarter of 2012, to $5.5 million.

Jacksonville also announced that it will offer its existing shareholders up to 10 million shares of common stock, or $5 million worth at the Thursday closing price of 50 cents a share, on August 20. The rights offering, which was announced in April, is tied to a $50 million private placement the company completed last year.

Stephen Green resigned as president and chief executive in June, after less than a year in the role. Donald Glisson, who became chairman in April, is serving as interim CEO while the company searches for a permanent successor.

CapGen Capital Group, a private equity company formed by former Comptroller of the Currency Eugene Ludwig, owns roughly 69% of Jacksonville's stock. Ludwig, CEO of Promontory Financial Group, invested about $24 million in the company.