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

                     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 SEPTEMBER 30, 2002

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

For the transition period from __________ to __________

                        Commission file number 000-30248
                                               ---------

                           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 November 14, 2002

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 September 30, 2002 (unaudited) and At December 31, 2001..............2

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

     Condensed Consolidated Statements of Stockholders' Equity (Unaudited) -
       Nine Months Ended September 30, 2002 and 2001...........................4

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
       Nine Months Ended September 30, 2002 and 2001...........................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.............................................10-14

   ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK..........15

   ITEM 4. CONTROLS AND PROCEDURES............................................15

PART II. OTHER INFORMATION

   ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K..................................16

SIGNATURES....................................................................17

CERTIFICATIONS.............................................................18-19


                                       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>
                                                                         September 30,  December 31,
    ASSETS                                                                   2002           2001
                                                                             ----           ----
                                                                          (Unaudited)
<S>                                                                        <C>               <C>
Cash and due from banks ................................................   $   3,853         5,174
Federal funds sold .....................................................         354           114
                                                                           ---------     ---------

              Total cash and cash equivalents ..........................       4,207         5,288

Securities available for sale ..........................................      11,664         7,482
Securities held to maturity ............................................          50            50
Loans, net of allowance for loan losses of $999 in 2002 and $657 in 2001      98,918        68,134
Accrued interest receivable ............................................         606           459
Premises and equipment, net ............................................       3,185         3,304
Federal Home Loan Bank stock, at cost ..................................         132            63
Deferred income taxes ..................................................       1,153         1,437
Other assets ...........................................................         204           261
                                                                           ---------     ---------

              Total assets .............................................   $ 120,119        86,478
                                                                           =========     =========

    LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
    Noninterest-bearing demand deposits ................................      15,301        14,190
    Money market, NOW and savings deposits .............................      25,768        23,910
    Time deposits ......................................................      66,341        37,519
                                                                           ---------     ---------

              Total deposits ...........................................     107,410        75,619

    Federal funds purchased ............................................        --           1,250
    Other borrowings ...................................................        --           2,110
    Other liabilities ..................................................         418           202
                                                                           ---------     ---------

              Total liabilities ........................................     107,828        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 ................................................      (2,054)       (2,377)
    Accumulated other comprehensive income (loss) ......................         100           (41)
                                                                           ---------     ---------

              Total stockholders' equity ...............................      12,291         7,297
                                                                           ---------     ---------

              Total liabilities and stockholders' equity ...............   $ 120,119        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          NINE MONTHS ENDED
                                                                 SEPTEMBER 30,               SEPTEMBER 30,
                                                            -----------------------    -----------------------
                                                               2002         2001          2002         2001
                                                            ----------   ----------    ----------   ----------
<S>                                                         <C>                 <C>         <C>          <C>
Interest income:
    Loans ...............................................   $    1,622          995         4,326        2,712
    Securities ..........................................          182          100           464          226
    Other interest-earning assets .......................           12           13            29           74
                                                            ----------   ----------    ----------   ----------

            Total interest income .......................        1,816        1,108         4,819        3,012
                                                            ----------   ----------    ----------   ----------

Interest expense:
    Deposits ............................................          757          545         2,030        1,472
    Other borrowings ....................................         --              4             3           10
                                                            ----------   ----------    ----------   ----------

            Total interest expense ......................          757          549         2,033        1,482
                                                            ----------   ----------    ----------   ----------

            Net interest income .........................        1,059          559         2,786        1,530

Provision for loan losses ...............................           97           87           342          190
                                                            ----------   ----------    ----------   ----------

            Net interest income after provision for
              loan losses ...............................          962          472         2,444        1,340
                                                            ----------   ----------    ----------   ----------

Noninterest income:
    Service charges on deposit accounts .................          115           77           327          202
    Other ...............................................           38           38            96          112
                                                            ----------   ----------    ----------   ----------

            Total noninterest income ....................          153          115           423          314
                                                            ----------   ----------    ----------   ----------

Noninterest expense:
    Salaries and employee benefits ......................          398          325         1,147          993
    Occupancy expense ...................................          164          126           436          389
    Telephone ...........................................           16           13            53           40
    Professional fees ...................................           49           17           115           59
    Data processing .....................................          102           95           305          267
    Printing and office supplies ........................           13           12            54           41
    Advertising .........................................           19            6            55           17
    Postage, courier, and freight .......................           20           15            58           40
    Other ...............................................           43           29           122          125
                                                            ----------   ----------    ----------   ----------

            Total noninterest expense ...................          824          638         2,345        1,971
                                                            ----------   ----------    ----------   ----------

Earnings (loss) before income taxes (benefit) ...........          291          (51)          522         (317)

            Income taxes (benefit) ......................          112          (19)          199         (119)
                                                            ----------   ----------    ----------   ----------

Net earnings (loss) .....................................   $      179          (32)          323         (198)
                                                            ==========   ==========    ==========   ==========

Basic earnings (loss) per share .........................   $      .12         (.03)          .25         (.19)
                                                            ==========   ==========    ==========   ==========

Weighted-average number of shares outstanding for basic .    1,467,066    1,017,066     1,291,605    1,017,066
                                                            ==========   ==========    ==========   ==========

Diluted earnings (loss) per share .......................   $      .12         (.03)         . 25         (.19)
                                                            ==========   ==========    ==========   ==========

Weighted-average number of shares outstanding for diluted    1,478,264    1,017,066     1,294,181    1,017,066
                                                            ==========   ==========    ==========   ==========

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

See Accompanying Notes to Condensed Consolidated Financial Statements.


                                       3
<PAGE>

                           JACKSONVILLE BANCORP, INC.

            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                  NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
                             (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, 2000 .....        --      $--     1,017,066     $  10         9,705      (2,179)           3        7,539
                                                                                                                           ------
Comprehensive income (loss):
    Net loss (unaudited) .........        --       --          --        --            --          (198)         --          (198)

    Net change in unrealized
      gain on securities
      available for sale, net of
      income tax of $22
      (unaudited) ................        --       --          --        --            --          --             37           37
                                                                                                                           ------
    Comprehensive income
      (loss) (unaudited) .........                                                                                           (161)
                                         ---      ---     ---------     -----        ------      -------         ---       ------
Balance at September 30, 2001
    (unaudited) ..................        --      $--     1,017,066     $  10         9,705      (2,377)          40        7,378
                                         ===      ===     =========     =====        ======      ======          ===       ======

Balance at December 31, 2001 .....        --      $--     1,017,066     $  10         9,705      (2,377)         (41)       7,297
                                                                                                                           ------

Net earnings (unaudited) .........        --       --          --        --            --           323          --           323

Comprehensive income:
    Net change in unrealized
      gain on securities available
      for sale, net of income
      tax of $85 (unaudited) .....        --       --          --        --            --          --            141          141
                                                                                                                           ------
    Comprehensive income
      (unaudited) ................                                                                                            464

Proceeds from the sale of
    common stock, net of
    offering costs of $195
    (unaudited) ..................        --       --       450,000         5         4,525        --            --         4,530
                                         ---      ---     ---------     -----        ------      -------         ---       ------
Balance at September 30, 2002
    (unaudited) ..................        --      $--     1,467,066     $  15        14,230      (2,054)         100       12,291
                                         ===      ===     =========     =====        ======      ======          ===       ======
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.


                                       4
<PAGE>

                           JACKSONVILLE BANCORP, INC.

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

<TABLE>
<CAPTION>
                                                                                   NINE MONTHS ENDED
                                                                                    SEPTEMBER 30,
                                                                                   2002        2001
                                                                                 --------    --------
<S>                                                                              <C>             <C>
Cash flows from operating activities:
    Net earnings (loss) ......................................................   $    323        (198)
    Adjustments to reconcile net earnings (loss) to net cash
      provided by (used in) operating activities:
        Depreciation and amortization ........................................        209         206
        Provision for loan losses ............................................        342         190
        Deferred income taxes (credit) .......................................        199        (119)
        Increase in accrued interest receivable and
            other assets .....................................................        (90)       (206)
        Increase in other liabilities ........................................        216          89
                                                                                 --------    --------

                Net cash provided by (used in) operating activities ..........      1,199         (38)
                                                                                 --------    --------

Cash flows from investing activities:
    Purchases of securities available for sale ...............................     (6,976)     (6,180)
    Calls of securities available for sale ...................................      2,430       2,000
    Principal repayments on securities available for sale ....................        590         552
    Purchase of Federal Home Loan Bank stock .................................        (69)        (26)
    Net increase in loans ....................................................    (31,126)    (19,567)
    Net purchases of premises and equipment ..................................        (90)        (22)
                                                                                 --------    --------

                Net cash used in investing activities ........................    (35,241)    (23,243)
                                                                                 --------    --------

Cash flows from financing activities:
    Net increase in deposits .................................................     31,791      22,301
    Net decrease in other borrowings .........................................     (2,110)       --
    Proceeds from sale of common stock, net of offering costs ................      4,530        --
    Net (decrease) increase in federal funds purchased .......................     (1,250)      1,250
                                                                                 --------    --------

                Net cash provided by financing activities ....................     32,961      23,551
                                                                                 --------    --------

Net (decrease) increase in cash and cash equivalents .........................     (1,081)        270

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

Cash and cash equivalents at end of period ...................................   $  4,207       2,655
                                                                                 ========    ========

Supplemental disclosures of cash flow information:
    Cash paid during the period for:
        Interest .............................................................   $  1,995       1,426
                                                                                 ========    ========

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

    Noncash transaction:
        Accumulated other comprehensive income (loss), change in
            unrealized gain on securities available for sale, net of tax .....   $    141          37
                                                                                 ========    ========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.


                                       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").
     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 September 30, 2002, the results of operations for the three-
     and nine-month periods ended September 30, 2002 and 2001, and cash flows
     for the nine-month periods ended September 30, 2002 and 2001. The results
     of operations for the three- and nine- months ended September 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 nine months ended September 30, 2002 or 2001.

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

                                          THREE MONTHS ENDED   NINE MONTHS ENDED
                                             SEPTEMBER 30,       SEPTEMBER 30,
                                             --------------      --------------
                                             2002      2001      2002      2001
                                             ----      ----      ----      ----

Balance at beginning of period .........     $902       447       657       344
Provision for loan losses ..............       97        87       342       190
                                             ----      ----      ----      ----

Balance at end of period ...............     $999       534       999       534
                                             ====      ====      ====      ====

                                                                     (continued)


                                       6
<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 nine months ended September 30,
     2001. The following table presents the calculations of earnings per share
     (dollars in thousands, except per share amounts):

<TABLE>
<CAPTION>
                                          THREE MONTHS ENDED                  NINE MONTHS ENDED
                                          SEPTEMBER 30, 2002                  SEPTEMBER 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......   $ 179      1,467,066     $ .12     $ 323       1,291,605     $ .25
                                                             =====                               ======

Effect of dilutive securities:
     Incremental shares from
        assumed exercise of
        options..................                 11,198                               2,576
                                               ---------                           ---------

Diluted earnings per share:
     Net earnings available to
        common stockholders and
        assumed conversion.......   $ 179      1,478,264     $ .12     $ 323       1,294,181     $ .25
                                    =====      =========     =====     =====       =========     =====
</TABLE>

(4)  REGULATORY MATTERS. The Bank is required to maintain certain minimum
     regulatory capital requirements. The following is a summary at September
     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 ........................  11.77%        8.00%
Tier 1 capital to risk-weighted assets .......................  10.80%        4.00%
Tier 1 capital to average assets - leverage ratio.............   9.54%        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 September
30, 2002, and for the three- and nine-month periods ended September 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.


                                       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 September 30,
2002, and the related condensed consolidated statements of operations for the
three- and nine-month periods ended September 30, 2002 and 2001 and the related
condensed consolidated statements of stockholders' equity and cash flows for the
nine-month periods ended September 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
October 30, 2002


                                       9
<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 sources of cash during the nine months ended
     September 30, 2002 were the net increase in deposits of $31.8 million,
     calls of securities available for sale of approximately $2.4 million, and
     the sale of common stock totaling approximately $4.5 million, net of
     offering costs. During the nine months ended September 30, 2002, cash was
     used to originate loans, net of repayments, of $31.1 million, purchase
     securities totaling approximately $7.0 million, and to repay other
     borrowings and federal funds purchased totaling approximately $3.4 million.
     The Company had unfunded loan commitments of $19.6 million and time
     deposits of $41.1 million maturing in one year or less at September 30,
     2002. The Company exceeded its regulatory liquidity requirements at
     September 30, 2002.


                                       10
<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 SEPTEMBER 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 ........................................   $ 95,248      1,622     6.76%     $ 48,771          995      8.09%
     Securities ...................................     10,571        182     6.84         6,121          100      6.48
     Other interest-earning assets (1) ............      2,706         12     1.67         1,530           13      3.37
                                                      --------     ------               --------       ------
         Total interest-earning assets ............    108,525      1,816     6.64        56,422        1,108      7.79
                                                                   ------                              ------
Noninterest-earning assets ........................      8,428                             8,746
                                                      --------                          --------

         Total assets .............................   $116,953                          $ 65,168
                                                      ========                          ========

Interest-bearing liabilities:
     Savings and NOW deposits .....................     22,341        137     2.43        19,671          171      3.45
     Money market deposits ........................      3,818         20     2.08         1,822           16      3.48
     Time deposits ................................     64,326        600     3.70        23,983          358      5.92
     Other borrowings .............................         51       --         --           461            4      3.44
                                                      --------     ------               --------       ------

         Total interest-bearing liabilities .......     90,536        757     3.31        45,937          549      4.74
                                                                   ------                              ------

Noninterest-bearing liabilities ...................     14,213                            11,877
Stockholders' equity ..............................     12,204                             7,354
                                                      --------                           -------

         Total liabilities and stockholders' equity   $116,953                           $65,168
                                                      ========                           =======

Net interest/dividend income ......................                $1,059                              $  559
                                                                   ======                              ======
Interest rate spread (2) ..........................                             3.33%                              3.05%
                                                                                ====                            =======
Net interest margin (3) ...........................                             3.87%                              3.93%
                                                                                ====                            =======
Ratio of average interest-earning assets to
     average interest-bearing liabilities .........       1.20                              1.23
                                                      ========                           =======
</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.


                                       11
<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>
                                                                        NINE MONTHS ENDED SEPTEMBER 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.........................................   $ 84,380      4,326       6.85%    $41,952       2,712      8.64%
     Securities....................................      9,383        464       6.61       4,621         226      6.54
     Other interest-earning assets (1).............      2,102         29       1.84       2,041          74      4.85
                                                      --------     ------                -------      ------

         Total interest-earning assets.............     95,865      4,819       6.72      48,614       3,012      8.28
                                                                   ------                             ------

Noninterest-earning assets.........................      9,430                             8,519
                                                      --------                           -------

         Total assets..............................   $105,295                           $57,133
                                                      ========                           =======

Interest-bearing liabilities:
     Savings and NOW deposits......................     21,963        416       2.53      17,839         496      3.72
     Money market deposits.........................      3,295         54       2.19       1,763          44      3.34
     Time deposits.................................     55,135      1,560       3.78      19,441         932      6.41
     Other borrowings..............................        179          3       2.24         310          10      4.31
                                                      --------     ------                -------      ------

         Total interest-bearing liabilities........     80,572      2,033       3.37      39,353       1,482      5.03
                                                                   ------                             ------

Noninterest-bearing liabilities....................     14,478                            10,321
Stockholders' equity...............................     10,245                            7,459
                                                       -------                           -------

         Total liabilities and
           stockholders' equity....................   $105,295                           $57,133
                                                      ========                           =======

Net interest/dividend income.......................                $2,786                             $1,530
                                                                   ======                             ======

Interest rate spread (2)...........................                             3.35%                             3.25%
                                                                                ====                              ====

Net interest margin (3)............................                             3.89%                             4.21%
                                                                                ====                              ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........       1.19                              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.


                                       12
<PAGE>

                           JACKSONVILLE BANCORP, INC.

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

     GENERAL. Net earnings for the three months ended September 30, 2002, was
        $179,000 or $.12 per basic and diluted share compared to a net loss of
        $32,000 or $.03 per basic and diluted share for 2001.

     INTEREST INCOME. Interest income was $1,816,000 for the three months ended
        September 30, 2002, compared to $1,108,000 for the three months ended
        September 30, 2001. Interest income earned on loans increased to
        $1,622,000 for the three months ended September 30, 2002, from $995,000
        for the three months ended September 30, 2001, due to an increase in the
        average loan portfolio balance to $95.2 million for the three months
        ended September 30, 2002 compared to $48.8 million for the three months
        ended September 30, 2001. This increase was partially offset by a
        decrease in the average yield earned to 6.76% in 2002 from 8.09% in
        2001. Interest on securities increased to $182,000 for the three months
        ended September 30, 2002, from $100,000 for the three months ended
        September 30, 2001, due primarily to an increase in the average
        investment portfolio balance.

     INTEREST EXPENSE. Interest expense on interest-bearing liabilities
        increased to $757,000 for the three months ended September 30, 2002,
        from $545,000 for the three months ended September 30, 2001, due to an
        increase in average interest-bearing liabilities to $90.5 million for
        the three months ended September 30, 2002, from $45.9 million for the
        three months ended September 30, 2001. The increase was partially offset
        by a decrease in the average rate paid on interest-bearing liabilities
        to 3.31% for the three months ended September 30, 2002 from 4.74% for
        the three months ended September 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
        $97,000 for the three month period ended September 30, 2002, compared to
        $87,000 for the same period in 2001. The allowance for loan losses was
        $999,000 at September 30, 2002, which management believes is adequate.

     NONINTEREST INCOME. Noninterest income was $153,000 for the three months
        ended September 30, 2002, compared to $115,000 for the 2001 period.
        Service charges on deposit accounts totaled $115,000 in 2002, up from
        $77,000 in 2001, due to an increase in the average number of deposit
        accounts.

     NONINTEREST EXPENSE. Noninterest expense increased to $824,000 for the
        three months ended September 30, 2002, from $638,000 for the three
        months ended September 30, 2001. Salaries and employee benefits was the
        largest noninterest expense increasing from $325,000 during the three
        months ended September 30, 2001, to $398,000 for the 2002 period. In
        addition, professional fees increased from $17,000 for the three
        months ended September 30, 2001, to $49,000 for the 2002 period. The
        increase in total noninterest expenses relates to the overall growth of
        the Company.

     INCOME TAXES (BENEFIT). The income taxes for the three months ended
        September 30, 2002, were $112,000 (an effective rate of 38.5%) compared
        to an income tax benefit of $19,000 for the three months ended September
        30, 2001 (an effective tax rate of 37.3%). 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.


                                       13
<PAGE>

                           JACKSONVILLE BANCORP, INC.

COMPARISON OF THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2002 AND 2001

     GENERAL. Net earnings for the nine months ended September 30, 2002, was
        $323,000 or $.25 per basic and diluted share compared to a net loss of
        $198,000 or $.19 per basic and diluted share for 2001.

     INTEREST INCOME. Interest income was $4,819,000 for the nine months ended
        September 30, 2002, compared to $3,012,000 for the nine months ended
        September 30, 2001. Interest income earned on loans increased to
        $4,326,000 for the nine months ended September 30, 2002, from $2,712,000
        for the nine months ended September 30, 2001, due to an increase in the
        average loan portfolio balance to $84.4 million for the nine months
        ended September 30, 2002 compared to $42.0 million for the nine months
        ended September 30, 2001. This increase was partially offset by a
        decrease in the average yield earned to 6.85% in 2002 from 8.64% in
        2001. Interest on securities increased to $464,000 for the nine months
        ended September 30, 2002, from $226,000 for the nine months ended
        September 30, 2001, due primarily to an increase in the average
        investment portfolio balance.

     INTEREST EXPENSE. Interest expense on interest-bearing liabilities
        increased to $2,033,000 for the nine months ended September 30, 2002,
        from $1,482,000 for the nine months ended September 30, 2001, due to an
        increase in average interest-bearing liabilities to $80.6 million for
        the nine months ended September 30, 2002, from $39.4 million for the
        nine months ended September 30, 2001. The increase was partially offset
        by a decrease in the average rate paid on interest-bearing liabilities
        to 3.37% for the nine months ended September 30, 2002, from 5.03% for
        the nine months ended September 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
        $342,000 for the nine month period ended September 30, 2002, compared to
        $190,000 for the same period in 2001. The allowance for loan losses was
        $999,000 at September 30, 2002, which management believes is adequate.

     NONINTEREST INCOME. Noninterest income was $423,000 for the nine months
        ended September 30, 2002, compared to $314,000 for the 2001 period.
        Service charges on deposit accounts totaled $327,000 in 2002, up from
        $202,000 in 2001, due to an increase in the average number of deposit
        accounts.

     NONINTEREST EXPENSE. Noninterest expense increased to $2,345,000 for the
        nine months ended September 30, 2002, from $1,971,000 for the nine
        months ended September 30, 2001. Salaries and employee benefits was the
        largest noninterest expense increasing from $993,000 during the nine
        months ended September 30, 2001, to $1,147,000 for the 2002 period. In
        addition, data processing expense increased from $267,000 for the nine
        months ended September 30, 2001, to $305,000 for the 2002 period. The
        increase in total noninterest expenses relates to the overall growth of
        the Company.

     INCOME TAXES (BENEFIT). The income taxes for the nine months ended
        September 30, 2002, were $199,000 (an effective rate of 38.1%) compared
        to an income tax benefit of $119,000 for the nine months ended September
        30, 2001 (an effective tax rate of 37.5%). 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.

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.

ITEM 4. CONTROLS AND PROCEDURES

a.   EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Company maintains
     controls and procedures designed to ensure that information required to be
     disclosed in the reports that the Company files or submits under the
     Securities Exchange Act of 1934 is recorded, processed, summarized and
     reported within the time periods specified in the rules and forms of the
     Securities and Exchange Commission. Based upon their evaluation of those
     controls and procedures performed within 90 days of the filing date of this
     report, the Chief Executive and Chief Financial Officers of the Company
     concluded that the Company's disclosure controls and procedures were
     adequate.

b.   CHANGES IN INTERNAL CONTROLS. The Company made no significant changes in
     its internal controls or in other factors that could significantly affect
     these controls subsequent to the date of the evaluation of those controls
     by the Chief Executive and Chief Financial Officers.


                                       15
<PAGE>

                           JACKSONVILLE BANCORP, INC.

                           PART II. OTHER INFORMATION

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. (****)
        The exhibits marked by four asterisks (****) were previously filed as
        part of the June 30, 2002 Form 10-QSB filed with the Securities Exchange
        Commission on August 14, 2002.

     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    CEO Certification required under Section 906 of
                    Sarbanes-Oxley Act of 2002
            99.2    CFO Certification required under Section 906 of
                    Sarbanes-Oxley Act of 2002

(b)  Reports on Form 8-K. During the three months ended September 30, 2002, no
     Form 8-K was filed by the Company.


                                       16
<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:  November 14, 2002                By:  /s/ Gilbert J. Pomar, III
      -----------------------------         ------------------------------------
                                            Gilbert J. Pomar, III, President and
                                              Chief Executive Officer


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


                                       17

<PAGE>

                                 CERTIFICATIONS

I, Gilbert J. Pomar, III, certify, that:

1.   I have reviewed this quarterly report on Form 10-QSB of Jacksonville
     Bancorp, Inc.;

2.   Based on my knowledge, the quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     (a)  designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     (b)  evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officer and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     (a)  all significant deficiencies in the design or operation of the
          internal controls which could adversely affect the registrant's
          ability to record, process, summarize and report financial data and
          have identified for the registrant's auditors any material weaknesses
          in internal controls; and

     (b)  any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officer and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect the internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


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


                                       18
<PAGE>

I, Cheryl L. Whalen, certify, that:

1.   I have reviewed this quarterly report on Form 10-QSB of Jacksonville
     Bancorp, Inc.;

2.   Based on my knowledge, the quarterly report does not contain any untrue
     statement of a material fact or omit to state a material fact necessary to
     make the statements made, in light of the circumstances under which such
     statements were made, not misleading with respect to the period covered by
     this quarterly report;

3.   Based on my knowledge, the financial statements, and other financial
     information included in this quarterly report, fairly present in all
     material respects the financial condition, results of operations and cash
     flows of the registrant as of, and for, the periods presented in this
     quarterly report;

4.   The registrant's other certifying officer and I are responsible for
     establishing and maintaining disclosure controls and procedures (as defined
     in Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:

     (a)  designed such disclosure controls and procedures to ensure that
          material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this quarterly
          report is being prepared;

     (b)  evaluated the effectiveness of the registrant's disclosure controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     (c)  presented in this quarterly report our conclusions about the
          effectiveness of the disclosure controls and procedures based on our
          evaluation as of the Evaluation Date;

5.   The registrant's other certifying officer and I have disclosed, based on
     our most recent evaluation, to the registrant's auditors and the audit
     committee of registrant's board of directors (or persons performing the
     equivalent function):

     (a)  all significant deficiencies in the design or operation of the
          internal controls which could adversely affect the registrant's
          ability to record, process, summarize and report financial data and
          have identified for the registrant's auditors any material weaknesses
          in internal controls; and

     (b)  any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant's internal
          controls; and

6.   The registrant's other certifying officer and I have indicated in this
     quarterly report whether or not there were significant changes in internal
     controls or in other factors that could significantly affect the internal
     controls subsequent to the date of our most recent evaluation, including
     any corrective actions with regard to significant deficiencies and material
     weaknesses.


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


                                       19