================================================================================
                     U.S. SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB
(Mark One)

X    Quarterly  report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

For the quarterly period ended June 30, 2001

___  Transition report under Section 13 or 15(d) of the Exchange Act

For the transition period from _______ to __________

Commission file number 001-14853
                       ---------

                           JACKSONVILLE BANCORP, INC.
        (Exact Name of Small Business Issuer as Specified in Its Charter)

        Florida                                                   59-3472981
        -------                                                   ----------
(State or Other Jurisdiction                                  (I.R.S. Employer
of Incorporation or Organization)                            Identification No.)

                        76 South Laura Street, Suite 104
                           Jacksonville, Florida 32202
                           ---------------------------
                    (Address of Principal Executive Offices)

                                 (904) 421-3040
                                 --------------
                (Issuer's Telephone Number, Including Area Code)


        ----------------------------------------------------------------
         (Former Name, Former Address and Former Fiscal Year, if Changed
                               Since Last Report)

     Check  whether  the issuer:  (1) filed all reports  required to be filed by
Section  12, 13 or 15(d) of the  Exchange  Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been subject to such filing requirements for the past 90 days.

YES X   NO ___

     State the number of shares  outstanding of each of the issuer's  classes of
common equity, as of the latest practicable date:

Common stock, par value $.01 per share                    1,017,066 shares
--------------------------------------                    ----------------
              (class)                              Outstanding  at June 30, 2001

Transitional Small Business Format (check one): YES ___  NO  X
================================================================================

<PAGE>


                           JACKSONVILLE BANCORP, INC.

                                      INDEX


PART I. FINANCIAL INFORMATION

   Item 1. Financial Statements                                             Page
                                                                            ----
     Condensed Consolidated Balance Sheets -
       At June 30, 2001 (unaudited) and At December 31, 2000...................2

     Condensed Consolidated Statements of Operations (Unaudited) -
       Three and Six Months ended June 30, 2001 and 2000.......................3

     Condensed Consolidated Statement of Stockholders' Equity (Unaudited) -
       Six Months ended June 30, 2001..........................................4

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
       Six Months ended June 30, 2001 and 2000.................................5

     Notes to Condensed Consolidated Financial Statements (Unaudited)........6-7

     Review by Independent Certified Public Accountants........................8

     Report on Review by Independent Certified Public Accountants..............9

   Item 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations.............................................10-12

   Item 3. Quantitative and Qualitative Disclosure about Market Risk..........12

PART II. OTHER INFORMATION

   Item 4.  Submissions of Matters to a Vote of Security Holders..............13

   Item 6.  Exhibits and Reports on Form 8-K..................................13

SIGNATURES....................................................................14


                                       1
<PAGE>
<TABLE>

                           JACKSONVILLE BANCORP, INC.

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheets

                                                                                      June 30,         December 31,
                                                                                      --------         ------------
    Assets                                                                             2001                2000
                                                                                    (Unaudited)

<S>                                                                               <C>                   <C>
Cash and due from banks ....................................................      $  3,215,298          2,234,968
Federal funds sold .........................................................         1,784,267            150,128
                                                                                     ---------            -------

            Cash and cash equivalents ......................................         4,999,565          2,385,096

Securities available for sale ..............................................         4,415,305          3,095,420
Securities held to maturity ................................................           550,000             50,000
Loans, net of allowance for loan losses of $447,410 in 2001 and
    $344,361 in 2000 .......................................................        44,708,634         34,183,256
Accrued interest receivable ................................................           298,472            257,405
Premises and equipment, net ................................................         3,438,459          3,553,555
Federal Home Loan Bank stock, at cost ......................................            63,000             36,700
Deferred income taxes ......................................................         1,413,416          1,291,708
Other assets ...............................................................           206,507            182,955
                                                                                       -------            -------

            Total assets ...................................................      $ 60,093,358         45,036,095
                                                                                  ============         ==========

    Liabilities and Stockholders' Equity

Liabilities:
    Noninterest-bearing deposits ...........................................        10,883,976          7,749,278
    Money market, NOW and savings deposits .................................        21,672,376         16,493,101
    Time deposits ..........................................................        20,093,532         13,098,478
                                                                                    ----------         ----------

            Total deposits .................................................        52,649,884         37,340,857

    Other liabilities ......................................................           114,928            155,779
                                                                                       -------            -------

            Total liabilities ..............................................        52,764,812         37,496,636
                                                                                    ----------         ----------

Stockholders' equity:
    Preferred stock ........................................................                 -                  -
    Common stock ...........................................................            10,171             10,171
    Additional paid-in capital .............................................         9,705,206          9,705,206
    Accumulated deficit ....................................................        (2,344,955)        (2,178,781)
    Accumulated other comprehensive (loss) income ..........................           (41,876)             2,863
                                                                                       -------              -----

            Total stockholders' equity .....................................         7,328,546          7,539,459
                                                                                     ---------          ---------

            Total liabilities and stockholders' equity .....................      $ 60,093,358         45,036,095
                                                                                  ============         ==========
See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       2
<PAGE>
<TABLE>

                           JACKSONVILLE BANCORP, INC.

                 Condensed Consolidated Statements of Operations
                                   (Unaudited)

                                                                    Three Months Ended             Six Months Ended
                                                                        June 30,                       June 30,
                                                                        --------                       --------
                                                                   2001           2000           2001           2000
                                                                   ----           ----           ----           ----
<S>                                                           <C>                <C>          <C>              <C>
Interest income:
    Loans receivable ......................................   $   887,510        338,612      1,716,569        547,587
    Securities ............................................        75,468         34,320        125,878         68,721
    Other interest-earning assets .........................        13,446         40,578         60,961         70,429
                                                                   ------         ------         ------         ------

            Total interest income .........................       976,424        413,510      1,903,408        686,737
                                                                  -------        -------      ---------        -------

Interest expense:
    Deposits ..............................................       455,530        149,820        926,517        247,792
    Other borrowings ......................................         6,140           --            6,140             93
                                                                    -----          -----          -----          -----

            Total interest expense ........................       461,670        149,820        932,657        247,885
                                                                  -------        -------        -------        -------

            Net interest income before provision
              for loan losses .............................       514,754        263,690        970,751        438,852

Provision for loan losses .................................        63,161         52,940        103,049         88,598
                                                                   ------         ------        -------         ------

            Net interest income after provision
              for loan losses .............................       451,593        210,750        867,702        350,254
                                                                  -------        -------        -------        -------

Noninterest income:
    Service charges on deposit accounts ...................        71,873         34,532        125,486         68,081
    Other .................................................        40,632         12,261         73,671         25,192
                                                                   ------         ------         ------         ------

            Total noninterest income ......................       112,505         46,793        199,157         93,273
                                                                  -------         ------        -------         ------

Noninterest expense:
    Salaries and employee benefits ........................       314,895        227,186        667,967        556,301
    Occupancy expense .....................................       131,034        103,874        262,559        200,001
    Professional fees .....................................        43,314         32,073         57,481         42,962
    Data processing .......................................        85,077         37,302        172,308         90,749
    Printing and office supplies ..........................        14,126         16,253         29,437         37,124
    Advertising ...........................................         6,683         15,095         10,713         46,324
    Other .................................................        54,107         52,185        132,823        104,829
                                                                   ------         ------        -------        -------

            Total noninterest expense .....................       649,236        483,968      1,333,288      1,078,290
                                                                  -------        -------      ---------      ---------

Loss before income tax benefit ............................       (85,138)      (226,425)      (266,429)      (634,763)

            Income tax benefit ............................       (32,037)       (84,119)      (100,255)      (238,784)
                                                                  -------        -------       --------       --------

Net loss ..................................................   $   (53,101)      (142,306)      (166,174)      (395,979)
                                                              ===========       ========       ========       ========

Loss per share, basic and diluted.........................    $      (.05)          (.14)          (.16)          (.39)
                                                              ===========           ====           ====           ====

Weighted-average number of shares outstanding
    for basic and diluted .................................     1,017,066      1,017,066      1,017,066      1,017,066
                                                                =========      =========      =========      =========

Dividends per share .......................................             -              -              -              -
                                                                =========      =========      =========      =========

See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       3
<PAGE>
<TABLE>

                           JACKSONVILLE BANCORP, INC.

            Condensed Consolidated Statement of Stockholders' Equity

                         Six Months Ended June 30, 2001


                                                                                                          Accumulated
                                                                                                            Other
                                                                                                           Compre-
                                   Preferred Stock          Common Stock        Additional                 hensive        Total
                                   ---------------          ------------        Paid-In     Accumulated     (Loss)     Stockholders'
                                   Shares      Amount    Shares     Amount      Capital       Deficit       Income       Equity
                                   ------      ------    ------     ------      -------       -------       ------       ------
<S>                                           <C>      <C>         <C>           <C>         <C>                <C>       <C>
Balance at December 31,
  2000 ......................        -        $   -    1,017,066   $   10,171    9,705,206   (2,178,781)        2,863     7,539,459

Comprehensive income (loss):
Net loss (unaudited) ........        -            -            -            -            -     (166,174)            -      (166,174)

Net change in unrealized
  gain (loss) on securities
  available for sale, net of
  income taxes of $21,453
  (unaudited) ...............        -            -            -            -            -            -       (44,739)      (44,739)

Comprehensive income
  (loss) (unaudited) ........                                                                                              (210,913)
                                   ----        -----   ---------    ---------    ---------    ---------        ------     ----------
Balance at June 30, 2001
(unaudited) .................        -        $   -    1,017,066   $   10,171    9,705,206   (2,344,955)      (41,876)    7,328,546
                                   ====        =====   =========   ==========    =========   ==========       =======     =========









See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>



                                       4
<PAGE>
<TABLE>
                           JACKSONVILLE BANCORP, INC.

                 Condensed Consolidated Statements of Cash Flows
                                   (Unaudited)
                                                                                                             Six Months Ended
                                                                                                                 June 30,
                                                                                                             ----------------
                                                                                                         2001                2000
                                                                                                         ----                ----
<S>                                                                                                <C>                     <C>
Cash flows from operating activities:
    Net loss ...............................................................................       $   (166,174)           (395,979)
    Adjustments to reconcile net loss to net cash
      used in operating activities:
        Depreciation and amortization ......................................................            138,006              94,439
        Provision for loan losses ..........................................................            103,049              88,598
        Credit for deferred income taxes ...................................................           (100,255)           (238,784)
        Net accretion of securities ........................................................            (28,801)                  -
        Increase in accrued interest receivable and
            other assets ...................................................................            (64,619)            (57,564)
        Decrease in accrued interest payable and other
            liabilities ....................................................................            (40,851)            (60,739)
                                                                                                        -------             -------

                Net cash used in operating activities ......................................           (159,645)           (570,029)
                                                                                                       --------            --------
Cash flows from investing activities:
    Purchase of securities available for sale ..............................................         (3,162,790)                  -
    Purchase of securities held to maturity ................................................           (500,000)                  -
    Proceeds from maturities and calls of securities available
        for sale ...........................................................................          1,805,514                   -
    Net increase in loans ..................................................................        (10,628,427)         (8,893,112)
    Net purchases of premises and equipment ................................................            (22,910)         (1,354,400)
    Purchase of Federal Home Loan Bank stock ...............................................            (26,300)            (36,700)
                                                                                                        -------             -------

                Net cash used in investing activities ......................................        (12,534,913)        (10,284,212)
                                                                                                    -----------         -----------
Cash flows from financing activity-
    Net increase in deposits ...............................................................         15,309,027          13,593,732
                                                                                                     ----------          ----------

Net increase in cash and cash equivalents ..................................................          2,614,469           2,739,491

Cash and cash equivalents at beginning of period ...........................................          2,385,096           1,478,648
                                                                                                      ---------           ---------

Cash and cash equivalents at end of period .................................................       $  4,999,565           4,218,139
                                                                                                   ============           =========

Supplemental disclosure of cash flow information-
    Cash paid during the period for:
        Interest ...........................................................................       $    922,768             191,773
                                                                                                   ============             =======

        Income taxes........................................................................       $          -                   -
                                                                                                   ============           =========
Noncash transaction-
    Accumulated other comprehensive income (loss), change in
        unrealized loss on securities available for sale, net of tax .......................       $    (44,739)             (1,474)
                                                                                                   ============              ======

See Accompanying Notes to Condensed Consolidated Financial Statements.
</TABLE>

                                       5
<PAGE>

                           JACKSONVILLE BANCORP, INC.

        Notes to Condensed Consolidated Financial Statements (Unaudited)


(1) Description of Business and Summary of Significant Accounting Policies
    General.   Jacksonville   Bancorp,   Inc.   ("Jacksonville   Bancorp")   was
        incorporated on October 24, 1997.  Jacksonville Bancorp owns 100% of the
        outstanding   common  stock  of  The  Jacksonville   Bank  (the  "Bank")
        (collectively,  the "Company").  Jacksonville Bancorp's only business is
        the  ownership  and  operation  of  the  Bank.  The  Bank  is a  Florida
        state-chartered  commercial  bank and its  deposits  are  insured by the
        Federal Deposit Insurance  Corporation.  The Bank opened for business on
        May 28, 1999 and provides  community  banking services to businesses and
        individuals through three banking offices in Jacksonville, Florida.

        In the  opinion  of the  management  of the  Company,  the  accompanying
        condensed  consolidated  financial  statements  contain all  adjustments
        (consisting  principally  of normal  recurring  accruals)  necessary  to
        present  fairly the financial  position at June 30, 2001, the results of
        operations for the three- and six-month  periods ended June 30, 2001 and
        2000 and cash flows for the  six-month  periods  ended June 30, 2001 and
        2000.  The results of operations for the three and six months ended June
        30, 2001 are not  necessarily  indicative  of the results to be expected
        for the year ending December 31, 2001.

    Basis of Presentation.  The accompanying  condensed  consolidated  financial
        statements  of the  Company  include the  accounts of both  Jacksonville
        Bancorp  and  the  Bank.  All  significant   intercompany  accounts  and
        transactions have been eliminated in consolidation.

(2) Loan Impairment and Loan Losses. No loans were identified as impaired during
        the three months or six months ended June 30, 2001 or 2000.
<TABLE>

    An analysis of the change in the allowance for loan losses follows:

                                                                       Three Months Ended                    Six Months Ended
                                                                            June 30,                               June 30,
                                                                       ------------------                    ----------------
                                                                     2001                2000              2001                2000
                                                                     ----                ----              ----                ----

<S>                                                                <C>                 <C>                <C>                 <C>
Balance at beginning of period .........................           $384,249            116,143            344,361             80,485
Provision for loan losses ..............................             63,161             52,940            103,049             88,598
                                                                     ------             ------            -------             ------

Balance at end of period ...............................           $447,410            169,083            447,410            169,083
                                                                   ========            =======            =======            =======
</TABLE>

                                                                     (continued)








                                       6
<PAGE>





        JACKSONVILLE BANCORP, INC.

        Notes  to  Condensed  Consolidated  Financial  Statements   (Unaudited),
        Continued


(3) Loss Per Share.  Basic loss per share has been  computed on the basis of the
        weighted-average  number  of shares of  common  stock  outstanding.  The
        Company's common stock equivalents are not dilutive.

(4) Regulatory  Matters.  The  Bank is  required  to  maintain  certain  minimum
        regulatory capital requirements.  The following is a summary at June 30,
        2001  of the  regulatory  capital  requirements  and the  Bank's  actual
        capital on a percentage basis:
<TABLE>

                                                                                                           Regulatory
                                                                                           Actual          Requirement
                                                                                           ------          -----------

<S>                                                                                        <C>                 <C>
Total capital to risk-weighted assets .................................................    13.71%              8.00%
Tier I capital to risk-weighted assets ................................................    12.81%              4.00%
Tier I capital to average assets - leverage ratio .....................................    11.81%              4.00%
</TABLE>

















                                       7
<PAGE>


                           JACKSONVILLE BANCORP, INC.

               Review by Independent Certified Public Accountants


Hacker,   Johnson  &  Smith  PA,  the  Company's  independent  certified  public
accountants,  have made a limited  review of the  financial  data as of June 30,
2001,  and for the three- and  six-month  periods  ended June 30,  2001 and 2000
presented in this  document,  in accordance  with  standards  established by the
American Institute of Certified Public Accountants.

Their  report  furnished  pursuant to Article 10 of  Regulation  S-X is included
herein.



















                                       8
<PAGE>




          Report on Review by Independent Certified Public Accountants



The Board of Directors
Jacksonville Bancorp, Inc.
Jacksonville, Florida:

     We have reviewed the accompanying  condensed  consolidated balance sheet of
Jacksonville  Bancorp,  Inc. and Subsidiary (the "Company") as of June 30, 2001,
and the related condensed  consolidated  statements of operations for the three-
and  six-month  periods  ended June 30,  2001 and 2000,  the  related  condensed
consolidated  statement of  stockholders'  equity for the six-month period ended
June 30, 2001 and the related  condensed  consolidated  statements of cash flows
for the  six-month  periods  ended  June 30,  2001  and  2000.  These  financial
statements are the responsibility of the Company's management.

     We conducted our reviews in accordance  with  standards  established by the
American  Institute  of  Certified  Public  Accountants.  A  review  of  interim
financial  information consists principally of applying analytical procedures to
financial  data and making  inquiries of persons  responsible  for financial and
accounting matters. It is substantially less in scope than an audit conducted in
accordance with auditing  standards  generally  accepted in the United States of
America,  the objective of which is the  expression of an opinion  regarding the
financial  statements taken as a whole.  Accordingly,  we do not express such an
opinion.

     Based on our reviews,  we are not aware of any material  modifications that
should be made to the condensed  consolidated  financial  statements referred to
above for them to be in conformity with accounting principles generally accepted
in the United States of America.

     We have previously audited, in accordance with auditing standards generally
accepted in the United States of America,  the consolidated  balance sheet as of
December  31,  2000,  and the related  consolidated  statements  of  operations,
stockholders'  equity  and cash  flows for the year then  ended  (not  presented
herein);  and in our report dated  February 23, 2001 we expressed an unqualified
opinion  on  those  consolidated  financial  statements.  In  our  opinion,  the
information set forth in the accompanying  condensed  consolidated balance sheet
as of December 31, 2000, is fairly stated, in all material respects, in relation
to the consolidated balance sheet from which it has been derived.






HACKER, JOHNSON & SMITH PA
Tampa, Florida
August 3, 2001



                                       9
<PAGE>
                           JACKSONVILLE BANCORP, INC.

                  Item 2. Management's Discussion and Analysis
                of Financial Condition and Results of Operations

                Comparison of June 30, 2001 and December 31, 2000

General

    Jacksonville Bancorp, Inc.  ("Jacksonville  Bancorp") which was incorporated
    on  October  24,  1997,  owns 100% of the  outstanding  common  stock of The
    Jacksonville  Bank ("Bank")  (collectively,  the  "Company").  The Bank is a
    Florida state-chartered  commercial bank and its deposits are insured by the
    Federal Deposit Insurance  Corporation.  The Bank opened for business on May
    28, 1999, and provides a variety of community banking services to businesses
    and individuals  through its three banking offices located in  Jacksonville,
    Florida.   During  2000  the  Bank  formed  Fountain   Financial,   Inc.,  a
    wholly-owned   subsidiary  whose  primary  business  activities  consist  of
    referral of  customers  of the Bank to third  parties for sale of  insurance
    products.

Liquidity and Capital Resources

    The  Company's  primary  source of cash during the six months ended June 30,
    2001 was from the net increase in deposits of $15.3  million.  Cash was used
    primarily to originate loans, net of principal repayments,  of $10.6 million
    and purchase  securities  of  approximately  $3.7  million.  The Company had
    unfunded  commitments to extend credit of $13.4 million and time deposits of
    $17.2  million  maturing in one year or less at June 30,  2001.  The Company
    exceeded its regulatory liquidity requirements at June 30, 2001.

Results of Operations

Comparison of the Three-Month Periods Ended June 30, 2001 and 2000

    General.  Net loss for the three  months  ended June 30, 2001 was $53,101 or
       $.05 per basic and diluted  share  compared to $142,306 or $.14 per basic
       and diluted  share for 2000.  The Bank  commenced  operations  on May 28,
       1999.  At June 30,  2001,  the  Company had not  achieved  the asset size
       necessary to operate profitably.

    Interest  Income.  Interest  income was  $976,424 for the three months ended
       June 30, 2001  compared to $413,510  for the three  months ended June 30,
       2000. Interest income earned on loans increased to $887,510 for the three
       months ended June 30, 2001 from  $338,612 for the three months ended June
       30,  2000 due to an increase in the  average  loan  portfolio  balance to
       $41.4  million for the three months ended June 30, 2001 compared to $14.5
       million for three months ended June 30, 2000. This increase was partially
       offset by a decrease  in the  weighted-average  yield  earned to 8.68% in
       2001 from 9.34% in 2000. Interest on securities  increased to $75,468 for
       the three  months  ended June 30, 2001 from  $34,320 for the three months
       ended  June  30,  2000  due  to an  increase  in the  average  investment
       portfolio balance.

    Interest Expense. Interest expense on interest-bearing deposits increased to
       $455,530 for the three  months ended June 30, 2001 from  $149,820 for the
       three  months  ended  June  30,  2000  due  to  an  increase  in  average
       interest-bearing  deposits to $36.6  million for the three  months  ended
       June 30,  2001 from $12.4  million  for the three  months  ended June 30,
       2000. The increase also resulted from an increase in the weighted-average
       rate paid on  interest-bearing  deposits  to 4.98%  for the three  months
       ended June 30, 2001 from 4.84% for the three months ended June 30, 2000.

                                       10
<PAGE>
                           JACKSONVILLE BANCORP, INC.

                  Item 2. Management's Discussion and Analysis
           of Financial Condition and Results of Operations, Continued

    Provision  for Loan  Losses.  The  provision  for loan  losses is charged to
       earnings to increase the total allowance to a level deemed appropriate by
       management and is based upon the volume and type of lending  conducted by
       the Company,  industry  standards,  the amount of nonperforming loans and
       general economic conditions, particularly as they relate to the Company's
       market areas,  and other  factors  related to the  collectibility  of the
       Company's loan  portfolio.  The provision for loan losses was $63,161 for
       the three month  period  ended June 30, 2001  compared to $52,940 for the
       same period in 2000.  The  allowance for loan losses was $447,410 at June
       30, 2001. Management believes the allowance is adequate at June 30, 2001.

    Noninterest  Income.  Noninterest  income was  $112,505 for the three months
       ended June 30,  2001  compared to $46,793  for the 2000  period.  Service
       charges on deposit  accounts  totaled $71,873 in 2001, up from $34,532 in
       2000, due to an increase in the average number of deposit accounts.

    Noninterest  Expense.  Noninterest  expense  increased  $165,268 or 34.1% to
       $649,236 for the three  months ended June 30, 2001 from  $483,968 for the
       three months ended June 30, 2000.  Salaries and employee benefits was the
       largest  noninterest  expense  increasing  from $227,186 during the three
       months ended June 30, 2000 to $314,895 for the 2001 period.  In addition,
       data processing expense increased from $37,302 for the three months ended
       June 30,  2000 to $85,077  for the 2001  period.  The  increase  in total
       noninterest expenses relates to the overall growth of the Bank.

    Income Tax  Benefit.  The income tax benefit for the three months ended June
       30, 2001 was $32,037 (an effective rate of 37.6%) compared to $84,119 for
       the three months ended June 30, 2000 (an effective tax rate of 37.2%).

Comparison of the Six-Month Periods Ended June 30, 2001 and 2000

    General.  Net loss for the six months  ended June 30,  2001 was  $166,174 or
       $.16 per basic and diluted  share  compared to $395,979 or $.39 per basic
       and diluted  share for 2000.  The Bank  commenced  operations  on May 28,
       1999.  At June 30,  2001,  the Company had not achieved the asset size to
       operate profitably.

    Interest Income.  Interest  income was  $1,903,408  for the six months ended
       June 30,  2001  compared to  $686,737  for the six months  ended June 30,
       2000. Interest income earned on loans increased to $1,716,569 for the six
       months  ended June 30, 2001 from  $547,587  for the six months ended June
       30,  2000 due to an increase in the  average  loan  portfolio  balance to
       $38.9  million for the six months ended June 30, 2001 from $11.9  million
       for the six months  ended June 30,  2000.  This  increase  was  partially
       offset due to a decrease in the weighted-average yield earned to 8.99% in
       2001 from 9.21% in 2000. Interest on securities increased to $125,878 for
       the six months  ended June 30, 2001 from $68,721 for the six months ended
       June 30,  2000 due to an increase  in the  average  investment  portfolio
       balance.

    Interest Expense. Interest expense on interest-bearing deposits was $926,517
       for the six months  ended June 30, 2001  compared to $247,792 for the six
       months ended June 30, 2000 due to an increase in average interest-bearing
       deposits  to $35.7  million  for the six months  ended June 30, 2001 from
       $9.9 million for the six month period ended June 30, 2000.  This increase
       also  resulted  from an  increase  in the  weighted-average  rate paid on
       interest-bearing deposits to 5.19% for the six months ended June 30, 2001
       from 5.03% for the six months ended June 30, 2000.

                                       11
<PAGE>


                           JACKSONVILLE BANCORP, INC.

                  Item 2. Management's Discussion and Analysis
           of Financial Condition and Results of Operations, Continued


    Provision  for Loan  Losses.  The  provision  for loan  losses is charged to
       earnings to increase the total allowance to a level deemed appropriate by
       management and is based upon the volume and type of lending  conducted by
       the Company,  industry  standards,  the amount of nonperforming loans and
       general economic conditions, particularly as they relate to the Company's
       market areas,  and other  factors  related to the  collectibility  of the
       Company's loan portfolio.  The provision for loan losses was $103,049 for
       the six  months  ended June 30,  2001  compared  to $88,598  for the same
       period in 2000.  The  allowance  for loan losses was $447,410 at June 30,
       2001. Management believes the allowance is adequate at June 30, 2001.

    Noninterest Income. Noninterest income was $199,157 for the six months ended
       June 30, 2001 compared to $93,273 for the 2000 period. Service charges on
       deposit  accounts  totaled $125,486 in 2001, up from $68,081 in 2000, due
       to an increase in the average number of deposit accounts.

    Noninterest  Expense.  Noninterest  expense  increased  $254,998 or 23.6% to
       $1,333,288 for the six months ended June 30, 2001 from $1,078,290 for the
       six months  ended June 30,  2000.  The  largest  noninterest  expense was
       salaries and employee benefits totaling $667,967 for the six months ended
       June 30, 2001  compared to $556,301 for the  comparable  2000 period.  In
       addition  data  processing  expense  increased  from  $90,749 for the six
       months ended June 30, 2000 to $172,308 for the 2001 period.  The increase
       in total noninterest expenses relates to the overall growth of the Bank.

    Income Tax Benefit. The income tax benefit for the six months ended June 30,
       2001 was $100,255 (an effective  rate of 37.6%)  compared to $238,784 for
       the six months ended June 30, 2000 (an effective rate of 37.6%).


Item 3.  Quantitative and Qualitative Disclosures About Market Risk

Market risk is the risk of loss from adverse changes in market prices and rates.
The Company's  market risk arises  primarily from interest rate risk inherent in
its  lending and deposit  taking  activities.  The Company has little or no risk
related to trading accounts, commodities or foreign exchange.

Management  actively  monitors and manages its interest rate risk exposure.  The
primary objective in managing interest-rate risk is to limit, within established
guidelines, the adverse impact of changes in interest rates on the Company's net
interest  income and capital,  while  adjusting  the  Company's  asset-liability
structure to obtain the maximum yield-cost spread on that structure.  Management
relies primarily on its asset-liability structure to control interest rate risk.
However,  a sudden and  substantial  increase in interest rates could  adversely
impact the Company's  earnings,  to the extent that the interest  rates borne by
assets and liabilities do not change at the same speed,  to the same extent,  or
on the same  basis.  There have been no  significant  changes  in the  Company's
market risk exposure since December 31, 2000.



                                       12
<PAGE>

                           JACKSONVILLE BANCORP, INC.

                           PART II. OTHER INFORMATION

Item 4.  Submissions of Matters to a Vote of Security Holders

The Annual  Meeting of  Shareholders  (the  "Annual  Meeting")  of  Jacksonville
Bancorp,  Inc.  was held on April 25,  2001,  to  consider  the  election of the
Company's Class I directors.

At the Annual  Meeting,  762,561 shares were present in person or by proxy.  The
following is a summary and tabulation of the matters that were voted upon at the
Annual Meeting:

   Proposal I.

   The election of Class I directors, each for a term of one year:

                                                                    Withheld
                                                      For          Authority
                                                      ---          ---------

           John W. Rose                               755,561         7,000
                                                      =======         =====
           John R. Schultz                            755,561         7,000
                                                      =======         =====
           Price W. Schwenck                          755,561         7,000
                                                      =======         =====
           Gary L. Winfield                           755,561         7,000
                                                      =======         =====

    In addition to the  foregoing,  the following  individuals  are directors of
    Jacksonville Bancorp, Inc. whose terms continued after the Annual Meeting:

           D. Michael Carter                               R.C. Mills
           Melvin Gottlieb                                 Gilbert J. Pomar, III
           James M. Healey                                 Donald E. Roller
           John C. Kowkabany                               Bennett A. Tavar
           Rudolph A. Kraft                                Charles F. Spencer

Item 6.  Exhibits and Reports on Form 8-K

(a)    Exhibits.  The  following  exhibits  are filed  with or  incorporated  by
       reference  into this report.  The  exhibits  which are marked by a single
       asterisk (*) were previously filed as a part, and are hereby incorporated
       by reference from the Company's  Registration  Statement on Form SB-2, as
       effective with the  Securities  and Exchange  Commission on September 30,
       1998, Registration No. 333-64815. The exhibit marked by a double asterisk
       (**) was  previously  filed as a part of the June 30,  1999  Form  10-QSB
       filed with the Securities and Exchange Commission on August 13, 1999. The
       exhibit marked by a triple asterisk (***) was previously filed as part of
       the  Company's   Registration  Statement  on  Form  S-8  filed  with  the
       Securities and Exchange Commission on November 9, 1999.

       Exhibit No.                   Description of Exhibit
       -----------                   ----------------------

        *    3.1                     Articles of Incorporation of the Company
        *    3.2                     By-laws of the Company
        *    4.1                     Specimen Common Stock Certificate
        *   10.1                     Stock Option Plan
        *   10.2                     Servicing Agreement with M&I Data Services
        **  10.3                     Employment Contract Gilbert J. Pomar, III
        ***  99.1                    Stock Option Plan

(b)    Reports on Form 8-K. On May 24,  2000,  the  Company  filed a Form 8-K to
       report the Company's  current President had also been elected to serve as
       the Company's Chief Executive Officer.

                                       13
<PAGE>


                           JACKSONVILLE BANCORP, INC.





                                   SIGNATURES



Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                  JACKSONVILLE BANCORP, INC.
                                     (Registrant)






Date:  August 13, 2001            By:  /s/Gilbert J. Pomar III
       ---------------                 -----------------------
                                          Gilbert J. Pomar III, President and
                                           Chief Executive Officer





Date:  August 13, 2001            By:  /s/Cheryl L. Whalen
       ---------------                 -------------------
                                          Cheryl L. Whalen, Executive Vice
                                           President and Chief Financial Officer




                                       14