Operating Loss for Jacksonville Bancorp
Jacksonville Bancorp Inc., the bank holding company for The Jacksonville Bank, is anticipating an operating loss of $12 million to $14 million for 2010.
The company said the loss is a result of a business strategy to strengthen its balance sheet by lowering the amount of underperforming assets.
Jacksonville Bancorp acquired Atlantic BancGroup Inc. and its wholly owned subsidiary, Oceanside Bank, on Nov. 16. At the same time, Jacksonville Bancorp sold $35 million in common stock to four accredited investors headed by CapGen Capital Group IV.
The total disposition goal of $40 million in substandard assets is being accomplished by selling the assets through short sales, the sale of other real estate owned and loans marketed through a bulk sale. Jacksonville Bancorp said the yearend loss is due to the costs of the disposition of the substandard assets, merger-related expenses and the integration costs associated with the merging of the two banks.
Jacksonville Bancorp expects to be well capitalized under capital standards established by banking regulators.
“The loan sale is consistent with our desire to have a company with consistent and predictable earnings,” said Price Schwenck, CEO and executive chairman of The Jacksonville Bank.
“The newly integrated bank enters 2011 with a significantly strengthened and well-capitalized balance sheet. Financially and organizationally we are well positioned to proactively serve the banking needs of our customers and prospects in Northeast Florida.”