<PAGE>

================================================================================

                     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, 2002

    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                    1,467,066 shares
--------------------------------------            ------------------------------
             (class)                              Outstanding at August 14, 2002

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

================================================================================

<PAGE>

                           JACKSONVILLE BANCORP, INC.

                                      INDEX

<TABLE>
<CAPTION>
<S>                                                                                                         <C>
PART I. FINANCIAL INFORMATION

   ITEM 1. FINANCIAL STATEMENTS                                                                              PAGE

     Condensed Consolidated Balance Sheets -
       At June 30, 2002 (unaudited) and At December 31, 2001....................................................2

     Condensed Consolidated Statements of Operations (Unaudited) -
       Three and Six Months Ended June 30, 2002 and 2001........................................................3

     Condensed Consolidated Statement of Stockholders' Equity (Unaudited) -
       Six Months Ended June 30, 2002...........................................................................4

     Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) -
       Three and Six Months Ended June 30, 2002 and 2001........................................................5

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
       Six Months Ended June 30, 2002 and 2001..................................................................6

     Notes to Condensed Consolidated Financial Statements (Unaudited).........................................7-8

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

     Report on Review by Independent Certified Public Accountants..............................................10

   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
     AND RESULTS OF OPERATIONS..............................................................................11-15

   ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK...........................................16

PART II. OTHER INFORMATION

   ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS..........................................................16

   ITEM 4.  SUBMISSIONS OF MATTERS TO A VOTE OF SECURITY HOLDERS............................................16-17

   ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K...................................................................17

SIGNATURES.....................................................................................................18
</TABLE>

                                       1
<PAGE>

                           JACKSONVILLE BANCORP, INC.

                          PART I. FINANCIAL INFORMATION

                          ITEM 1. FINANCIAL STATEMENTS

                      CONDENSED CONSOLIDATED BALANCE SHEETS
                    (DOLLARS IN THOUSANDS, EXCEPT SHARE DATA)

<TABLE>
<CAPTION>
                                                                                            JUNE 30,        DECEMBER 31,
    ASSETS                                                                                   2002               2001
                                                                                             ----               ----
                                                                                          (UNAUDITED)
<S>                                                                                      <C>                     <C>
Cash and due from banks..............................................................     $   3,313              5,174
Federal funds sold...................................................................         8,475                114
                                                                                            -------            -------

              Total cash and cash equivalents........................................        11,788              5,288

Securities available for sale........................................................        10,225              7,482
Securities held to maturity..........................................................            50                 50
Loans, net of allowance for loan losses of $902 in 2002 and $657 in 2001.............        90,302             68,134
Accrued interest receivable..........................................................           589                459
Premises and equipment, net..........................................................         3,215              3,304
Federal Home Loan Bank stock, at cost................................................           132                 63
Deferred income taxes................................................................         1,299              1,437
Other assets.........................................................................           147                261
                                                                                            -------            -------

              Total assets...........................................................     $ 117,747             86,478
                                                                                            =======             =======

    LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
    Noninterest-bearing demand deposits..............................................        12,992             14,190
    Money market, NOW and savings deposits...........................................        28,481             23,910
    Time deposits....................................................................        63,824             37,519
                                                                                            -------            -------

              Total deposits.........................................................       105,297             75,619

    Federal funds purchased..........................................................             -              1,250
    Other borrowings.................................................................             -              2,110
    Other liabilities................................................................           393                202
                                                                                            -------            -------

              Total liabilities......................................................       105,690             79,181
                                                                                            -------            -------

Stockholders' equity:
    Preferred stock, $.01 par value; 2,000,000 shares authorized,
         none issued or outstanding..................................................             -                  -
    Common stock, $.01 par value; 8,000,000 shares authorized,
         1,467,066 and 1,017,066 shares issued and outstanding.......................            15                 10
    Additional paid-in capital.......................................................        14,230              9,705
    Accumulated deficit..............................................................        (2,233)            (2,377)
    Accumulated other comprehensive income (loss)....................................            45                (41)
                                                                                            -------            -------

              Total stockholders' equity.............................................        12,057              7,297
                                                                                            -------            -------

              Total liabilities and stockholders' equity.............................     $ 117,747             86,478
                                                                                            =======             ======
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       2
<PAGE>

                           JACKSONVILLE BANCORP, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (UNAUDITED)
                (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

<TABLE>
<CAPTION>

                                                                   THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                        JUNE 30,                      JUNE 30,
                                                               ------------------------       -----------------------
                                                                  2002           2001           2002          2001
                                                                  ----           ----           ----          ----
<S>                                                            <C>                  <C>           <C>           <C>
Interest income:
   Loans....................................................   $    1,452           887           2,704         1,716
   Securities...............................................          151            76             282           126
   Other interest-earning assets............................            8            13              17            61
                                                                ---------     ---------       ---------     ---------

      Total interest income.................................        1,611           976           3,003         1,903
                                                                ---------     ---------       ---------     ---------

Interest expense:
   Deposits.................................................          663           455           1,273           926
   Other borrowings.........................................            1             6               3             6
                                                                ---------     ---------       ---------     ---------

      Total interest expense................................          664           461           1,276           932
                                                                ---------     ---------       ---------     ---------

      Net interest income before provision for loan losses..          947           515           1,727           971

Provision for loan losses...................................          138            63             245           103
                                                                ---------     ---------       ---------     ---------

      Net interest income after provision for loan losses...          809           452           1,482           868
                                                                ---------     ---------       ---------     ---------

Noninterest income:
   Service charges on deposit accounts......................           96            71             212           125
   Other ...................................................           13            41              58            74
                                                                ---------     ---------       ---------     ---------

      Total noninterest income..............................          109           112             270           199
                                                                ---------     ---------       ---------     ---------

Noninterest expense:
   Salaries and employee benefits...........................          367           315             749           668
   Occupancy expense........................................          128           131             270           263
   Professional fees........................................           43            43              66            57
   Data processing..........................................           94            85             203           172
   Printing and office supplies.............................           19            14              41            29
   Advertising..............................................           26             7              36            11
   Other ...................................................           90            54             156           133
                                                                ---------     ---------       ---------     ---------

      Total noninterest expense.............................          767           649           1,521         1,333
                                                                ---------     ---------       ---------     ---------

Earnings (loss) before income tax provision (benefit).......          151           (85)            231          (266)

      Income tax provision (benefit)........................           57           (32)             87          (100)
                                                                ---------     ---------       ---------     ---------

Net earnings (loss).........................................   $       94           (53)            144          (166)
                                                                =========     =========       =========     =========

Basic earnings (loss) per share.............................   $      .07          (.05)            .12          (.16)
                                                                =========     =========       =========     =========

Weighted-average number of shares outstanding for basic.....    1,363,467     1,017,066       1,202,421     1,017,066
                                                                =========     =========       =========     =========

Diluted earnings (loss) per share...........................   $      .07          (.05)            .12          (.16)
                                                                =========     =========       =========     =========

Weighted-average number of shares outstanding for diluted...    1,367,461     1,017,066       1,202,421     1,017,066
                                                                =========     =========       =========     =========

Dividends per share.........................................            -             -               -             -
                                                                =========     =========       =========     =========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       3

<PAGE>

                           JACKSONVILLE BANCORP, INC.

            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

                         SIX MONTHS ENDED JUNE 30, 2002
                             (DOLLARS IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                                                     ACCUMULATED
                                                                                                        OTHER
                                                                                                       COMPRE-
                              PREFERRED STOCK          COMMON STOCK      ADDITIONAL                    HENSIVE       TOTAL
                           ---------------------     ----------------      PAID-IN      ACCUMULATED    INCOME    STOCKHOLDERS'
                              SHARES      AMOUNT    SHARES     AMOUNT      CAPITAL        DEFICIT      (LOSS)       EQUITY
                              ------      ------    ------     ------      -------    -------------- -----------  ------------
<S>                                <C>    <C>     <C>           <C>        <C>            <C>              <C>      <C>
Balance at December 31,
   2001                            -      $    -  1,017,066     $ 10        9,705         (2,377)         (41)       7,297

Net earnings (unaudited)...        -           -          -        -            -            144            -          144

Net change in unrealized
  gain (loss) on securities
  available for sale, net
  of income tax of $51
  (unaudited)..............        -           -          -        -            -              -           86           86

Proceeds from the sale of
  common stock, net of
  offering costs of $195
  (unaudited)..............        -           -    450,000        5        4,525              -            -        4,530
                                 ----     ------  ---------     ----       ------         -------         ---       ------
Balance at June 30, 2002
  (unaudited)..............        -      $    -  1,467,066     $ 15       14,230         (2,233)          45       12,057
                                 ====     ======  =========     ====       ======         =======         ===       ======
</TABLE>




See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       4

<PAGE>

                           JACKSONVILLE BANCORP, INC.

        CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
                                   (UNAUDITED)
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                    THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                         JUNE 30,                      JUNE 30,
                                                                   --------------------          ---------------------
                                                                   2002           2001           2002           2001
                                                                   ----           ----           ----           ----

<S>                                                                <C>            <C>             <C>           <C>
Net earnings (loss) (unaudited).............................       $  94          (53)            144           (166)

Net change in unrealized gain (loss) on
    securities available for sale, net of tax (unaudited)...         170          (52)             86            (45)
                                                                   -----         -----           ----           ----

Comprehensive income (loss) (unaudited).....................       $ 264         (105)            230           (211)
                                                                   =====         =====           ====           ====
</TABLE>










See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       5

<PAGE>

                           JACKSONVILLE BANCORP, INC.

                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (UNAUDITED)
                                 (IN THOUSANDS)

<TABLE>
<CAPTION>

                                                                                                SIX MONTHS ENDED
                                                                                                     JUNE 30,
                                                                                             ----------------------
                                                                                             2002              2001
                                                                                             ----              ----
<S>                                                                                        <C>                   <C>
Cash flows from operating activities:
    Net earnings (loss)..............................................................      $    144              (166)
    Adjustments to reconcile net earnings (loss) to net cash
      provided by (used in) operating activities:
        Depreciation and amortization................................................           142               138
        Provision for loan losses....................................................           245               103
        Provision (credit) for deferred income taxes.................................            87              (100)
        Net accretion of securities..................................................           (18)              (29)
        Increase in accrued interest receivable and other assets.....................           (16)              (65)
        Increase (decrease) in accrued interest payable and other liabilities........           191               (41)
                                                                                           --------         ---------

                Net cash provided by (used in) operating activities..................           775              (160)
                                                                                           --------         ---------

Cash flows from investing activities:
    Purchase of securities available for sale........................................        (2,975)           (3,163)
    Purchase of securities held to maturity..........................................             -              (500)
    Proceeds from maturities and calls of securities available for sale..............           387             1,806
    Net increase in loans............................................................       (22,413)          (10,629)
    Net purchases of premises and equipment..........................................           (53)              (23)
    Purchase of Federal Home Loan Bank stock.........................................           (69)              (26)
                                                                                           --------         ---------

                Net cash used in investing activities................................       (25,123)          (12,535)
                                                                                           --------         ---------

Cash flows from financing activities:
    Net increase in deposits.........................................................        29,678            15,309
    Proceeds from sale of common stock, net of offering costs........................         4,530                 -
    Net repayment of other borrowings................................................        (2,110)                -
    Net repayment of federal funds purchased.........................................        (1,250)                -
                                                                                           --------         ---------

                Net cash provided by financing activities............................        30,848            15,309
                                                                                           --------         ---------

Net increase in cash and cash equivalents............................................         6,500             2,614

Cash and cash equivalents at beginning of period.....................................         5,288             2,385
                                                                                           --------         ---------

Cash and cash equivalents at end of period...........................................      $ 11,788             4,999
                                                                                           ========         =========

Supplemental disclosure of cash flow information:
    Cash paid during the period for:
        Interest.....................................................................      $  1,242               923
                                                                                           ========         =========

        Income taxes.................................................................      $      -                 -
                                                                                           ========         =========

    Noncash transaction-
        Accumulated other comprehensive income (loss), change in
            unrealized gain (loss) on securities available for sale, net of tax......      $     86               (45)
                                                                                           ========         =========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       6

<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").
        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 provides a variety of community banking services to businesses and
        individuals through three banking offices in Jacksonville, Florida. The
        Bank's wholly-owned subsidiary Fountain Financial, Inc.'s (the
        "Insurance Agency") primary business activities consist of referral of
        customers of the Bank to third parties for sale of insurance products.

        In the opinion of management, 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, 2002, the results of operations for the three- and
        six-month periods ended June 30, 2002 and 2001 and cash flows for the
        six-month periods ended June 30, 2002 and 2001. The results of
        operations for the three and six months ended June 30, 2002 are not
        necessarily indicative of the results to be expected for the year ending
        December 31, 2002.

    BASIS OF PRESENTATION. The accompanying condensed consolidated financial
        statements of the Company include the accounts of Jacksonville Bancorp,
        the Bank and the Insurance Agency (collectively, the "Company"). 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 or six months ended June 30, 2002 or 2001.

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

<TABLE>
<CAPTION>

                                                             THREE MONTHS ENDED           SIX MONTHS ENDED
                                                                  JUNE 30,                     JUNE 30,
                                                            --------------------         --------------------
                                                             2002          2001           2002         2001
                                                             ----          ----           ----         ----

<S>                                                          <C>            <C>            <C>          <C>
         Balance at beginning of period ...............      $ 764          384            657          344
         Provision for loan losses.....................        138           63            245          103
                                                               ---          ---            ---          ---

         Balance at end of period......................      $ 902          447            902          447
                                                               ===          ===            ===          ===

                                                                                                  (continued)
</TABLE>

                                       7

<PAGE>

                           JACKSONVILLE BANCORP, INC.

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(3) EARNINGS (LOSS) PER SHARE. Basic earnings (loss) per share has been
        computed on the basis of the weighted-average number of shares of
        common stock outstanding. Diluted earnings per share were computed
        based on the weighted-average number of shares outstanding plus the
        effect of outstanding stock options, computed using the treasury stock
        method. Such options were antidilutive for the three and six months
        ended June 30, 2001. The following table presents the calculations of
        earnings per share (dollars in thousands, except per share amounts):

<TABLE>
<CAPTION>

                                               THREE MONTHS ENDED JUNE 30, 2002        SIX MONTHS ENDED JUNE 30, 2002
                                            -------------------------------------   -----------------------------------
                                                          WEIGHTED-                             WEIGHTED-
                                                           AVERAGE      PER SHARE                AVERAGE      PER SHARE
                                            EARNINGS       SHARES        AMOUNT     EARNINGS     SHARES        AMOUNT
                                            --------      ---------     ---------   --------    ---------     ---------
<S>                                           <C>         <C>              <C>       <C>         <C>           <C>
           Basic earnings per share:
                Net earnings available to
                   common stockholders......  $ 94        1,363,467        $ .07     $ 144       1,202,421     $ .12
                                                                             ===                                 ====

           Effect of dilutive securities-
                Incremental shares from
                   assumed exercise of
                   options..................                  3,994                                      -
                                                         ----------                              ---------

           Diluted earnings per share:
                Net earnings available to
                   common stockholders and
                   assumed conversion.......  $ 94        1,367,461        $ .07     $ 144       1,202,421     $ .12
                                                ==        =========          ===       ===       =========       ====
</TABLE>

(4) REGULATORY MATTERS. The Bank is required to maintain certain minimum
        regulatory capital requirements. The following is a summary at June 30,
        2002 of the regulatory capital requirements and the Bank's actual
        capital on a percentage basis:

<TABLE>
<CAPTION>

                                                                                                  REGULATORY
                                                                                    ACTUAL        REQUIREMENT
                                                                                    ------        -----------
<S>                                                                                 <C>              <C>
           Total capital to risk-weighted assets..............................      10.20%           8.00%
           Tier 1 capital to risk-weighted assets.............................       9.26%           4.00%
           Tier 1 capital to average assets - leverage ratio..................       8.59%           4.00%
</TABLE>

                                       8

<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,
2002, and for the three- and six-month periods ended June 30, 2002 and 2001
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.













                                       9

<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, 2002,
and the related condensed consolidated statements of operations and
comprehensive income (loss) for the three- and six-month periods ended June 30,
2002 and 2001, the related condensed consolidated statement of stockholders'
equity for the six-month period ended June 30, 2002 and the related condensed
consolidated statements of cash flows for the six-month periods ended June 30,
2002 and 2001. 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, 2001, 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 March 1, 2002 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, 2001, 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 2, 2002

                                       10

<PAGE>

                           JACKSONVILLE BANCORP, INC.

                  ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
                 OF FINANCIAL CONDITION AND RESULTS OF OPERATION

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 provides a variety of
    community banking services to businesses and individuals through its three
    banking offices located in Jacksonville, Florida. The Bank's wholly-owned
    subsidiary, Fountain Financial, Inc.'s 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,
    2002 was from the net increase in deposits of $29.7 million and the sale of
    common stock totaling approximately $4.5 million, net of offering costs.
    During the six months ended June 30, 2002, cash was used to originate loans,
    net of repayments, of $22.4 million, purchase securities totaling
    approximately $3.0 million and to repay other borrowings and federal funds
    purchased of approximately $3.4 million. The Company had unfunded loan
    commitments of $17.5 million and time deposits of $43.9 million maturing in
    one year or less at June 30, 2002. The Company exceeded its regulatory
    liquidity requirements at June 30, 2002.





                                       11

<PAGE>

                           JACKSONVILLE BANCORP, INC.

RESULTS OF OPERATIONS

The operating results of the Company depend primarily on its net interest
income, which is the difference between interest income on interest-earning
assets and interest expense on interest-bearing liabilities, consisting
primarily of deposits. Net interest income is determined by the difference
between yields earned on interest-earning assets and rates paid on
interest-bearing liabilities ("interest rate spread") and the relative amounts
of interest-earning assets and interest-bearing liabilities. The Company's
interest-rate spread is affected by regulatory, economic, and competitive
factors that influence interest rates, loan demand, and deposit flows. In
addition, the Company's net earnings are also affected by the level of
nonperforming loans and foreclosed real estate, as well as the level of its
noninterest income, and its noninterest expenses, such as salaries and employee
benefits, and occupancy and equipment costs.

The following table sets forth, for the periods indicated, information regarding
(i) the total dollar amount of interest and dividend income of the Company from
interest-earning assets and the resultant average yield; (ii) the total dollar
amount of interest expense on interest-bearing liabilities and the resultant
average costs; (iii) net interest/dividend income; (iv) interest rate spread;
and (v) net interest margin. Average balances are based on average daily
balances.

<TABLE>
<CAPTION>

                                                                             THREE MONTHS ENDED JUNE 30,
                                                    ----------------------------------------------------------------------
                                                                    2002                               2001
                                                    ------------------------------------- --------------------------------
                                                                  INTEREST     AVERAGE               INTEREST   AVERAGE
                                                       AVERAGE       AND       YIELD/     AVERAGE       AND     YIELD/
                                                       BALANCE    DIVIDENDS     RATE      BALANCE    DIVIDENDS   RATE
                                                       -------    ---------    -------    -------    ---------  -------
                                                                              (DOLLARS IN THOUSANDS)
<S>                                                 <C>             <C>         <C>     <C>              <C>      <C>
Interest-earning assets:
     Loans.........................................  $  84,044      1,452       6.93%   $ 41,005         887      8.68%
     Securities....................................      9,447        151       6.41       4,591          76      6.64
     Other interest-earning assets (1).............      1,614          8       1.99       1,144          13      4.56
                                                      --------      -----                -------        ----

         Total interest-earning assets.............     95,105      1,611       6.79      46,740         976      8.38
                                                                    -----                               ----

Noninterest-earning assets.........................      8,620                             7,935
                                                      --------                           -------

         Total assets..............................  $ 103,725                          $ 54,675
                                                      ========                           =======

Interest-bearing liabilities:
     Savings and NOW deposits......................     22,657        143       2.53      17,488         152      3.49
     Money market deposits.........................      3,195         17       2.13       1,638          13      3.18
     Time deposits.................................     53,246        503       3.79      17,539         290      6.63
     Other borrowings..............................        124          1       3.23         463           6      5.20
                                                      --------      -----                 ------        ----

         Total interest-bearing liabilities........     79,222        664       3.36      37,128         461      4.98
                                                                    -----                                ---

Noninterest-bearing liabilities....................     13,554                            10,166
Stockholders' equity...............................     10,949                             7,381
                                                      --------                           -------

         Total liabilities and stockholders' equity  $ 103,725                          $  54,675
                                                      ========                           ========

Net interest/dividend income.......................             $     947                           $    515
                                                                  =======                            =======

Interest rate spread (2)...........................                             3.43%                             3.40%
                                                                                ====                              ====

Net interest margin (3)............................                             3.99%                             4.42%
                                                                                ====                              ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........       1.20                              1.26
                                                          ====                              ====
</TABLE>
----------------

1)   Includes federal funds sold.
2)   Interest rate spread represents the difference between the average yield on
     interest-earning assets and the average cost of interest-bearing
     liabilities.
3)   Net interest margin is net interest income divided by average
     interest-earning assets.

                                       12

<PAGE>

                           JACKSONVILLE BANCORP, INC.

The following table sets forth, for the periods indicated, information regarding
(i) the total dollar amount of interest and dividend income of the Company from
interest-earning assets and the resultant average yield; (ii) the total dollar
amount of interest expense on interest-bearing liabilities and the resultant
average costs; (iii) net interest/dividend income; (iv) interest rate spread;
and (v) net interest margin. Average balances are based on average daily
balances.

<TABLE>
<CAPTION>

                                                                            SIX MONTHS ENDED JUNE 30,
                                                      -------------------------------------------------------------------
                                                                    2002                               2001
                                                      ----------------------------------- -------------------------------
                                                                  INTEREST     AVERAGE               INTEREST   AVERAGE
                                                       AVERAGE       AND       YIELD/     AVERAGE       AND     YIELD/
                                                       BALANCE    DIVIDENDS     RATE      BALANCE    DIVIDENDS   RATE
                                                       -------    ---------    -------    -------    ---------  -------
                                                                          (DOLLARS IN THOUSANDS)
<S>                                                   <C>           <C>         <C>     <C>            <C>        <C>
Interest-earning assets:
     Loans.........................................   $ 78,857      2,704       6.91%   $ 38,486       1,716      8.99%
     Securities....................................      8,778        282       6.48       3,807         126      6.67
     Other interest-earning assets (1).............      1,795         17       1.91       2,301          61      5.35
                                                        ------    -------                -------       -----

         Total interest-earning assets.............     89,430      3,003       6.77      44,594       1,903      8.61
                                                                    -----                              -----

Noninterest-earning assets.........................      8,863                             7,798
                                                        ------                           -------

         Total assets..............................   $ 98,293                          $ 52,392
                                                        ======                           =======

Interest-bearing liabilities:
     Savings and NOW deposits......................     21,771        279       2.58      16,908         325      3.88
     Money market deposits.........................      3,029         34       2.26       1,733          29      3.37
     Time deposits.................................     50,463        960       3.84      17,134         572      6.73
     Other borrowings..............................        245          3       2.47         233           6      5.19
                                                        ------    -------                -------       -----

         Total interest-bearing liabilities........     75,508      1,276       3.41      36,008         932      5.22
                                                                    -----                             ------

Noninterest-bearing liabilities....................     13,536                             8,947
Stockholders' equity...............................      9,249                             7,437
                                                       -------                           -------

         Total liabilities and stockholders' equity   $ 98,293                          $ 52,392
                                                       =======                           =======

Net interest/dividend income.......................               $ 1,727                           $    971
                                                                    =====                             =======

Interest rate spread (2)...........................                             3.36%                             3.39%
                                                                                ====                              ====

Net interest margin (3)............................                             3.89%                             4.39%
                                                                                ====                              ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........       1.18                              1.24
                                                          ====                              ====
</TABLE>
-------------------
1)   Includes federal funds sold.
2)   Interest rate spread represents the difference between the average yield on
     interest-earning assets and the average cost of interest-bearing
     liabilities.
3)   Net interest margin is net interest income divided by average
     interest-earning assets.

                                       13

<PAGE>

                           JACKSONVILLE BANCORP, INC.


COMPARISON OF THE THREE-MONTH PERIODS ENDED JUNE 30, 2002 AND 2001

    GENERAL. Net earnings for the three months ended June 30, 2002, was $94,000
       or $.07 per basic and diluted share compared to a net loss of $53,000 or
       $.05 per basic and diluted share for 2001.

    INTEREST INCOME. Interest income was $1,611,000 for the three months ended
       June 30, 2002, compared to $976,000 for the three months ended June 30,
       2001. Interest income earned on loans increased to $1,452,000 for the
       three months ended June 30, 2002, from $887,000 for the three months
       ended June 30, 2001, due to an increase in the average loan portfolio
       balance to $84.0 million for the three months ended June 30, 2002
       compared to $41.0 million for the three months ended June 30, 2001. This
       increase was partially offset by a decrease in the weighted-average yield
       earned to 6.93% in 2002 from 8.68% in 2001. Interest on securities
       increased to $151,000 for the three months ended June 30, 2002, from
       $76,000 for the three months ended June 30, 2001, due to an increase in
       the average investment portfolio balance.

    INTEREST EXPENSE. Interest expense on interest-bearing liabilities increased
       to $664,000 for the three months ended June 30, 2002, from $461,000 for
       the three months ended June 30, 2001, due to an increase in average
       interest-bearing liabilities to $79.2 million for the three months ended
       June 30, 2002, from $37.1 million for the three months ended June 30,
       2001. The increase was partially offset by a decrease in the
       weighted-average rate paid on interest-bearing liabilities to 3.36% for
       the three months ended June 30, 2002 from 4.98% for the three months
       ended June 30, 2001.

    PROVISION FOR LOAN LOSSES. The provision for loan losses is charged to
       operations 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 $138,000 for
       the three month period ended June 30, 2002, compared to $63,000 for the
       same period in 2001. The allowance for loan losses was $902,000 at June
       30, 2002, which management believes is adequate.

    NONINTEREST INCOME. Noninterest income was $109,000 for the three months
       ended June 30, 2002, compared to $112,000 for the 2001 period. Fees and
       service charges on deposit accounts totaled $96,000 in 2002, up from
       $71,000 in 2001, due to an increase in the average number of deposit
       accounts. Other noninterest income decreased to $13,000 in 2002 from
       $41,000 for the 2001 period.

    NONINTEREST EXPENSE. Noninterest expense increased to $767,000 for the three
       months ended June 30, 2002, from $649,000 for the three months ended June
       30, 2001. Salaries and employee benefits was the largest noninterest
       expense increasing from $315,000 during the three months ended June 30,
       2001, to $367,000 for the 2002 period. In addition, data processing
       expense increased from $85,000 for the three months ended June 30, 2001,
       to $94,000 for the 2002 period. The increase in total noninterest
       expenses relates to the overall growth of the Company.

    INCOME TAX PROVISION (BENEFIT). The income tax provision for the three
       months ended June 30, 2002, was $57,000 (an effective rate of 37.7%)
       compared to an income tax benefit of $32,000 for the three months ended
       June 30, 2001 (an effective tax rate of 37.6%). The Company recognized an
       income tax benefit as well as a deferred tax asset in 2001 because
       management believes it is more likely than not the Company will be able
       to generate taxable income in the future to realize those amounts.

                                       14

<PAGE>

                           JACKSONVILLE BANCORP, INC.

COMPARISON OF THE SIX-MONTH PERIODS ENDED JUNE 30, 2002 AND 2001

    GENERAL. Net earnings for the six months ended June 30, 2002, was $144,000
       or $.12 per basic and diluted share compared to a net loss of $166,000 or
       $.16 per basic and diluted share for 2001.

    INTEREST INCOME. Interest income was $3,003,000 for the six months ended
       June 30, 2002, compared to $1,903,000 for the six months ended June 30,
       2001. Interest income earned on loans increased to $2,704,000 for the six
       months ended June 30, 2002, from $1,716,000 for the six months ended June
       30, 2001, due to an increase in the average loan portfolio balance to
       $78.9 million for the six months ended June 30, 2002 compared to $38.5
       million for the six months ended June 30, 2001. This increase was
       partially offset by a decrease in the weighted-average yield earned to
       6.91% in 2002 from 8.99% in 2001. Interest on securities increased to
       $282,000 for the six months ended June 30, 2002, from $126,000 for the
       six months ended June 30, 2001, due to an increase in the average
       investment portfolio balance.

    INTEREST EXPENSE. Interest expense on interest-bearing liabilities increased
       to $1,276,000 for the six months ended June 30, 2002, from $932,000 for
       the six months ended June 30, 2001, due to an increase in average
       interest-bearing liabilities to $75.5 million for the six months ended
       June 30, 2002, from $36.0 million for the six months ended June 30, 2001.
       The increase was partially offset by a decrease in the weighted-average
       rate paid on interest-bearing liabilities to 3.41% for the six months
       ended June 30, 2002 from 5.22% for the six months ended June 30, 2001.

    PROVISION FOR LOAN LOSSES. The provision for loan losses is charged to
       operations 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 $245,000 for
       the six month period ended June 30, 2002, compared to $103,000 for the
       same period in 2001. The allowance for loan losses was $902,000 at June
       30, 2002, which management believes is adequate.

    NONINTEREST INCOME. Noninterest income was $270,000 for the six months ended
       June 30, 2002, compared to $199,000 for the 2001 period. Fees and service
       charges on deposit accounts totaled $212,000 in 2002, up from $125,000 in
       2001, due to an increase in the average number of deposit accounts.

    NONINTEREST EXPENSE. Noninterest expense increased to $1,521,000 for the six
       months ended June 30, 2002, from $1,333,000 for the six months ended June
       30, 2001. Salaries and employee benefits was the largest noninterest
       expense increasing from $668,000 during the six months ended June 30,
       2001, to $749,000 for the 2002 period. In addition, data processing
       expense increased from $172,000 for the six months ended June 30, 2001,
       to $203,000 for the 2002 period. The increase in total noninterest
       expenses relates to the overall growth of the Company.

    INCOME TAX PROVISION (BENEFIT). The income tax provision for the six months
       ended June 30, 2002, was $87,000 (an effective rate of 37.7%) compared to
       an income tax benefit of $100,000 for the six months ended June 30, 2001
       (an effective tax rate of 37.6%). The Company recognized an income tax
       benefit as well as a deferred tax asset in 2001 because management
       believes it is more likely than not the Company will be able to generate
       taxable income in the future to realize those amounts.

                                       15

<PAGE>

                           JACKSONVILLE BANCORP, INC.

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 change 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, 2001.

                           PART II. OTHER INFORMATION

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

On December 26, 2001, the Company commenced an offering of 225,000 investment
units, initially to existing stockholders through a rights offering, and then to
the general public in a community offering. Each unit offered for $21.00
consisted of two shares of common stock and one warrant to purchase one share of
common stock for $13.00 through September 30, 2004. The shares were offered on
behalf of the Company by its executive officers who did not receive any
compensation for their efforts.

The offering was completed in April, 2002 and 450,000 shares were issued. The
Company received gross proceeds of $4.7 million from the offering. The Company
utilized the proceeds as follows:

   -   To pay the costs of the offering, which were approximately $195,000.

   -   To make a capital contribution of $2.0 million to the Bank.

   -   Remaining funds of approximately $2.5 million are available to make
       additional capital contributions to the Bank and provide working capital
       for the Company.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Annual Meeting of Shareholders (the "Annual Meeting") of Jacksonville
Bancorp, Inc. was held on April 24, 2002.

At the Annual Meeting, 945,980 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 2 directors, each for a term of three years:

                                                                WITHHELD
                                                  FOR          AUTHORITY

           Rudolph A. Kraft                       944,780         1,200
                                                  =======         ======
           R.C. Mills                             944,780         1,200
                                                  =======         ======
           Gilbert J. Pomar, III                  944,780         1,200
                                                  =======         ======
           Donald E. Roller                       944,780         1,200
                                                  =======         ======
           Charles F. Spencer                     944,780         1,200
                                                  =======         ======

                                       16

<PAGE>

                           JACKSONVILLE BANCORP, INC.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS, CONTINUED

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

           CLASS 1 DIRECTORS:                      CLASS 3 DIRECTORS:
           ------------------                      ------------------

           John W. Rose                             D. Michael Carter, C.P.A.
           John R. Shultz                           Melvin Gottlieb
           Price W. Schwenck                        James M. Healey
           Gary L. Winfield, M.D.                   John C. Kowkabany
                                                    Bennett A. Tavar
   PROPOSAL II.

   An amendment to the Company's stock option plan to increase the number of
   shares reserved for issuance under the stock option plan by 67,500.

                                                   WITHHELD        BROKER
                                        FOR        AUTHORITY      NON-VOTES
                                      -------      ---------      ---------

                                      681,650       20,350         243,980
                                      =======      =========      =========

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            Amended Bylaws of the Company
        *    4.1            Specimen Common Stock Certificate
        ***  10.1           Stock Option Plan
             10.2           Amendment to Stock Option Plan
        *    10.3           Servicing Agreement with M&I Data Services
        **   10.4           Employment Contract for Gilbert J. Pomar, III
             99.1           Certification Pursuant to 18 U.S.C. Section 1350,
                            as Adopted Pursuant to Section 906 of the
                            Sarbanes-Oxley Act of 2002

(b)  REPORTS ON FORM 8-K. During the three months ended June 30, 2002 no Form
     8-K was filed by the Company.

                                       17

<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 14, 2002                    By:  /s/ Gilbert J. Pomar, III
      ------------------------                ----------------------------------
                                                Gilbert J. Pomar, III, President
                                                 and Chief Executive Officer



Date:  AUGUST 14, 2002                    By:  /s/ Cheryl L. Whalen
      ------------------------                ----------------------------------
                                                Cheryl L. Whalen, Executive Vice
                                                 President and Chief Financial
                                                 Officer





                                       18