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

                     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, 2001

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

For the transition period from ________________ to _________________

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


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

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

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

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

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

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

YES  X     NO
    ---       ---

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


Common stock, par value $.01 per share                  1,017,066 shares
--------------------------------------                  ----------------
             (class)                             Outstanding at October 24, 2001

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

================================================================================
<PAGE>
<TABLE>



                           JACKSONVILLE BANCORP, INC.

                                      INDEX

<S>                                                                                                                            <C>
PART I. FINANCIAL INFORMATION

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

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

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

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

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

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

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

   Item 2. Management's Discussion and Analysis of Financial Condition
     and Results of Operations...............................................................................................10-14

   Item 3. Quantitative and Qualitative Disclosures about Market Risk...........................................................15

PART II. OTHER INFORMATION

   Item 6.  Exhibits and Reports on Form 8-K....................................................................................15

SIGNATURES......................................................................................................................16
</TABLE>
















                                       1
<PAGE>


                           JACKSONVILLE BANCORP, INC.

                          PART I. FINANCIAL INFORMATION

                          Item 1. Financial Statements

                      Condensed Consolidated Balance Sheets
                             (Dollars in thousands)
<TABLE>

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

<S>                                                                                     <C>                  <C>
Cash and due from banks .......................................................         $  2,543             2,235
Federal funds sold ............................................................              112               150
                                                                                          ------            ------

            Cash and cash equivalents .........................................            2,655             2,385

Securities available for sale .................................................            6,782             3,095
Securities held to maturity ...................................................               50                50
Loans, net of allowance for loan losses of $534 in 2001 and
    $344 in 2000 ..............................................................           53,560            34,183
Accrued interest receivable ...................................................              389               257
Premises and equipment, net ...................................................            3,370             3,554
Federal Home Loan Bank stock, at cost .........................................               63                37
Deferred income taxes .........................................................            1,389             1,292
Other assets ..................................................................              257               183
                                                                                          ------            ------

            Total assets ......................................................         $ 68,515            45,036
                                                                                        ========            ======

    Liabilities and Stockholders' Equity

Liabilities:
    Noninterest-bearing demand deposits .......................................           10,099             7,750
    Money market, NOW and savings deposits ....................................           21,623            16,493
    Time deposits .............................................................           27,920            13,098
                                                                                          ------            ------

            Total deposits ....................................................           59,642            37,341

    Borrowings ................................................................            1,250                 -
    Other liabilities .........................................................              245               156
                                                                                          ------            ------

            Total liabilities .................................................           61,137            37,497
                                                                                          ------            ------

Stockholders' equity:
    Preferred stock ...........................................................                -                 -
    Common stock ..............................................................               10                10
    Additional paid-in capital ................................................            9,705             9,705
    Accumulated deficit .......................................................           (2,377)           (2,179)
    Accumulated other comprehensive income ....................................               40                 3
                                                                                          ------            ------
            Total stockholders' equity ........................................            7,378             7,539
                                                                                           -----             -----

            Total liabilities and stockholders' equity ........................         $ 68,515            45,036
                                                                                        ========            ======

See Accompanying Notes to Condensed Consolidated Financial Statements.

</TABLE>

                                       2
<PAGE>


                           JACKSONVILLE BANCORP, INC.

           Condensed Consolidated Statements of Operations (Unaudited)
                (Dollars in thousands, except per share amounts)
<TABLE>

                                                                   Three Months Ended             Nine Months Ended
                                                                       September 30,                September 30,
                                                                       -------------                -------------
                                                                    2001          2000          2001            2000
                                                                    ----          ----          ----            ----
<S>                                                          <C>                    <C>         <C>             <C>
Interest income:
    Loans   ..............................................   $        995           476         2,712           1,024
    Securities............................................            100            41           226             110
    Other interest-earning assets.........................             13            41            74             110
                                                                    -----           ---         -----           -----

            Total interest income.........................          1,108           558         3,012           1,244
                                                                    -----           ---         -----           -----

Interest expense:
    Deposits..............................................            545           237         1,472             485
    Other borrowings......................................              4             1            10               1
                                                                    -----           ---         -----           -----

            Total interest expense........................            549           238         1,482             486
                                                                    -----           ---         -----           -----

            Net interest income...........................            559           320         1,530             758

Provision for loan losses.................................             87            77           190             165
                                                                    -----           ---         -----           -----
            Net interest income after
              provision for loan losses...................            472           243         1,340             593
                                                                    -----           ---         -----           -----
Noninterest income:
    Fees and service charges on deposit
        accounts..........................................             77            53           202             121
    Other   ..............................................             38            25           112              50
                                                                    -----           ---         -----           -----

            Total noninterest income......................            115            78           314             171
                                                                    -----           ---         -----           -----
Noninterest expense:
    Salaries and employee benefits........................            325           273           993             830
    Occupancy expense.....................................            126           122           389             322
    Professional fees.....................................              2            25            59              67
    Data processing.......................................             95            40           267             131
    Travel and entertainment..............................              5             5            17              12
    Printing and office supplies..........................             12            23            41              61
    Telephone expense.....................................             13            13            40              33
    Advertising...........................................              6            26            17              72
    Courier, freight and postage..........................             20            20            45              67
    Other   ..............................................             34            60           103              89
                                                                    -----           ---         -----           -----

            Total noninterest expense.....................            638           607         1,971           1,684
                                                                    -----           ---         -----           -----

Loss before income tax benefit............................            (51)         (286)         (317)           (920)

            Income tax benefit............................            (19)         (105)         (119)           (343)
                                                                    -----           ---         -----           -----

Net loss..................................................   $        (32)         (181)         (198)           (577)
                                                             ============          ====          ====            ====

Loss per share, basic and diluted.........................   $       (.03)         (.18)         (.19)           (.57)
                                                             ============          ====          ====            ====

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


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

                                       3
<PAGE>

                           JACKSONVILLE BANCORP, INC.

            Condensed Consolidated Statement of Stockholders' Equity

                      Nine Months Ended September 30, 2001
                             (Dollars in thousands)
<TABLE>
                                                                                                          Accumulated
                                                                                                             Other
                                                                                  Additional                 Compre-       Total
                                      Preferred Stock         Common Stock        Paid-In   Accumulated     hensive    Stockholders'
                                    Shares      Amount      Shares     Amount     Capital     Deficit       Income       Equity
                                    ------      ------      ------     ------     -------     -------       ------       ------


<S>                                            <C>        <C>           <C>         <C>       <C>               <C>       <C>
Balance at December 31, 2000 ......    -       $   -      1,017,066     $    10     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 taxes 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
                                    ======     =======    =========     =======   =======    ========       ======       ======


See Accompanying Notes to Condensed Consolidated Financial Statements.

</TABLE>

                                       4
<PAGE>

                           JACKSONVILLE BANCORP, INC.

           Condensed Consolidated Statements of Cash Flows (Unaudited)
                             (Dollars in thousands)

<TABLE>

                                                                                                              Nine Months Ended
                                                                                                                 September 30,
                                                                                                           ------------------------
                                                                                                           2001                2000
                                                                                                           ----                ----

<S>                                                                                                    <C>                     <C>
Cash flows from operating activities:
    Net loss ...............................................................................           $   (198)               (577)
    Adjustments to reconcile net loss to net cash
      (used in) provided by operating activities:
        Depreciation .......................................................................                206                 152
        Provision for loan losses ..........................................................                190                 165
        Credit for deferred income taxes ...................................................               (119)               (343)
        Increase in accrued interest receivable and
            other assets ...................................................................               (206)               (145)
        Increase in other liabilities ......................................................                 89                 814
                                                                                                        -------             -------

                Net cash (used in) provided by operating activities ........................                (38)                 66
                                                                                                        -------             -------

Cash flows from investing activities:
    Purchases of securities available for sale .............................................             (6,180)             (1,116)
    Calls of securities available for sale .................................................              2,000                   -
    Principal repayments on securities available for sale ..................................                552                   -
    Purchase of Federal Home Loan Bank stock ...............................................                (26)                (37)
    Net increase in loans ..................................................................            (19,567)            (16,615)
    Net purchases of premises and equipment ................................................                (22)             (1,703)
                                                                                                        -------             -------

                Net cash used in investing activities ......................................            (23,243)            (19,471)
                                                                                                        -------             -------

Cash flows from financing activities:
    Net increase in deposits ...............................................................             22,301              20,566
    Net increase in borrowings .............................................................              1,250                  74
                                                                                                        -------             -------

                Net cash provided by financing activities ..................................             23,551              20,640
                                                                                                        -------             -------

Net increase in cash and cash equivalents ..................................................                270               1,235

Cash and cash equivalents at beginning of period ...........................................              2,385               1,479
                                                                                                        -------             -------

Cash and cash equivalents at end of period .................................................           $  2,655               2,714
                                                                                                       ========             =======

Supplemental disclosures of cash flow information:
    Cash paid during the period for:
        Interest ...........................................................................           $  1,426                 472
                                                                                                       ========             =======

        Income taxes .......................................................................           $      -                   -
                                                                                                       ========             =======
    Noncash transaction-
        Change in accumulated other comprehensive
            income, net of tax .............................................................           $     37                   7
                                                                                                       ========             =======


See Accompanying Notes to Condensed Consolidated Financial Statements.

</TABLE>

                                       5
<PAGE>

                                               JACKSONVILLE BANCORP, INC.

        Notes to Condensed Consolidated Financial Statements (Unaudited)


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

       In the opinion of the 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, 2001,  the results of operations for the three-
       and nine-month  periods ended September 30, 2001 and 2000, and cash flows
       for the nine-month periods ended September 30, 2001 and 2000. The results
       of operations for the three and nine months ended September 30, 2001, are
       not  necessarily  indicative  of the results to be expected  for the year
       ending December 31, 2001.

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

(2)  Loan  Impairment  and  Loan  Losses.  No loans were  identified as impaired
       during the three months or nine months ended September 30, 2001 or 2000.

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

<TABLE>

                                                                            Three Months Ended                  Nine Months Ended
                                                                               September 30,                       September 30,
                                                                          ----------------------              ----------------------
                                                                          2001              2000              2001              2000
                                                                          ----              ----              ----              ----

<S>                                                                       <C>                <C>               <C>               <C>
Balance at beginning of period                                            $447               169               344                81
Provision for loan losses                                                   87                77               190               165
                                                                            --                --               ---               ---

Balance at end of period                                                  $534               246               534               246
                                                                          ====               ===               ===               ===
</TABLE>

                                                                     (continued)





                                       6
<PAGE>


                           JACKSONVILLE BANCORP, INC.

   Notes to Condensed Consolidated Financial Statements (Unaudited), Continued


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

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

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

<S>                                                                                        <C>                 <C>
Total capital to risk-weighted assets ........................................             11.84%              8.00%
Tier I capital to risk-weighted assets .......................................             10.93%              4.00%
Tier I capital to average assets - leverage ratio ............................              9.95%              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, 2001, and for the three- and nine-month periods ended September 30, 2001 and
2000 presented in this document, in accordance with standards established by the
American Institute of Certified Public Accountants.

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





























                                       8
<PAGE>









          Report on Review by Independent Certified Public Accountants



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

     We have reviewed the accompanying  condensed  consolidated balance sheet of
Jacksonville  Bancorp,  Inc. (the  "Company") as of September 30, 2001,  and the
related condensed consolidated  statements of operations for the three-month and
nine-month periods ended September 30, 2001 and 2000, the condensed consolidated
statements of cash flows for the nine-month periods ended September 30, 2001 and
2000 and the condensed  consolidated  statement of stockholders'  equity for the
nine-month  period ended September 30, 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,  2000,  and the related  consolidated  statements  of  operations,
stockholders'  equity  and cash  flows for the year then  ended  (not  presented
herein);  and in our report dated  February 23, 2001 we expressed an unqualified
opinion  on  those  consolidated  financial  statements.  In  our  opinion,  the
information set forth in the accompanying  condensed  consolidated balance sheet
as of December 31, 2000, is fairly stated, in all material respects, in relation
to the consolidated balance sheet from which it has been derived.






HACKER, JOHNSON & SMITH PA
Tampa, Florida
October 26, 2001



                                       9
<PAGE>

                           JACKSONVILLE BANCORP, INC.

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

             Comparison of September 30, 2001 and December 31, 2000


General

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

Liquidity and Capital Resources

   The Company's  primary source of cash during the nine months ended  September
   30, 2001,  was from the net increase in deposits of $22.3  million.  Cash was
   used  primarily to originate  loans,  net of principal  repayments,  of $19.6
   million and purchase  securities of approximately  $6.2 million.  The Company
   had unfunded  commitments to extend credit of $15.2 million and time deposits
   of $21.0  million  maturing in one year or less at September  30,  2001.  The
   Company exceeded its regulatory liquidity requirements at September 30, 2001.














                                       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>
                                                                               Three Months Ended September 30,
                                                             --------------------------------------------------------------------
                                                                         2001                                 2000
                                                             ------------------------------        ------------------------------
                                                                       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.........................................        $ 48,771       995       8.09%        $ 19,040        476         9.95%
     Securities....................................           6,121       100       6.48            2,371         41         6.88
     Other interest-earning assets (1).............           1,530        13       3.37            2,454         41         6.65
                                                              -----        --                       -----         --

         Total interest-earning assets.............          56,422     1,108       7.79           23,865        558         9.30
                                                                        -----                                    ---
Noninterest-earning assets.........................           8,746                                 7,063
                                                              -----                                 -----

         Total assets..............................        $ 65,168                              $ 30,928
                                                           ========                              ========

Interest-bearing liabilities:
     Savings and NOW deposits......................          19,671       171       3.45           12,688        157         4.92
     Money-market deposits.........................           1,822        16       3.48            1,284         16         4.96
     Time deposits.................................          23,983       358       5.92            3,846         64         6.62
     Other borrowings..............................             461         4       3.44               92          1         7.20
                                                                ---        --                          --         --

         Total interest-bearing liabilities........          45,937       549       4.74           17,910        238         5.29
                                                                          ---                                    ---
Noninterest-bearing liabilities....................          11,877                                 5,262
Stockholders' equity...............................           7,354                                 7,756
                                                              -----                                 -----

         Total liabilities and   stockholders' equity      $ 65,168                              $ 30,928
                                                           ========                              ========

Net interest/dividend income.......................                   $   559                                  $ 320
                                                                      =======                                  =====

Interest-rate spread (2)...........................                                 3.05%                                    4.01%
                                                                                    ====                                     ====

Net interest margin (3)............................                                 3.93%                                    5.33%
                                                                                    ====                                     ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........            1.23                                  1.33
                                                               ====                                  ====

----------
<FN>
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.
</FN>
</TABLE>

                                       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>

                                                                                  Nine Months Ended September 30,
                                                            --------------------------------------------------------------------
                                                                         2001                                     2000
                                                            -------------------------------       ------------------------------
                                                                       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.........................................        $ 41,952        2,712       8.64%     $ 14,223        1,024      9.62%
     Securities....................................           4,621          226       6.54         2,137          110      6.88
     Other interest-earning assets (1).............           2,041           74       4.85         2,347          110      6.26
                                                              -----           --                    -----          ---

         Total interest-earning assets.............          48,614        3,012       8.28        18,707        1,244      8.88
                                                                           -----                                 -----
Noninterest-earning assets.........................           8,519                                 6,330
                                                              -----                                 -----

         Total assets..............................        $ 57,133                              $ 25,037
                                                           ========                              ========

Interest-bearing liabilities:
     Savings and NOW deposits......................          17,839          496       3.72         9,573          350      4.88
     Money-market deposits.........................           1,763           44       3.34         1,370           50      4.88
     Time deposits.................................          19,441          932       6.41         1,778           85      6.39
     Other borrowings..............................             310           10       4.31            33            1      6.68
                                                             ------         ----                     ----         ----

         Total interest-bearing liabilities........          39,353        1,482       5.03        12,754          486      5.09
                                                                           -----                                  ----

Noninterest-bearing liabilities....................          10,321                                 4,329
Stockholders' equity...............................           7,459                                 7,954
                                                              -----                                 -----

         Total liabilities and
           stockholders' equity....................        $ 57,133                              $ 25,037
                                                           ========                              ========

Net interest/dividend income.......................                      $ 1,530                               $   758
                                                                         =======                               =======

Interest-rate spread (2)...........................                                    3.25%                                3.79%
                                                                                       ====                                 ====

Net interest margin (3)............................                                    4.21%                                5.41%
                                                                                       ====                                 ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........            1.24                                  1.47
                                                               ====                                  ====


----------
<FN>
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.
</FN>
</TABLE>




                                       12
<PAGE>

                           JACKSONVILLE BANCORP, INC.

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

General.  Net loss for the three  months ended  September  30, 2001, was $32,000
     or $.03 per basic and diluted share  compared to $181,000 or $.18 per basic
     and diluted share for 2000. The Bank commenced  operations on May 28, 1999.
     For the three months ended September 30, 2001, the Company had not achieved
     the asset size necessary to operate profitably.

Interest  Income.  Interest  income  was  $1,108,000  for the three months ended
     September  30,  2001,  compared  to  $558,000  for the three  months  ended
     September 30, 2000.  Interest  income earned on loans increased to $995,000
     for the three months ended  September 30, 2001, from $476,000 for the three
     months ended  September  30,  2000,  due to an increase in the average loan
     portfolio balance to $48.8 million for the three months ended September 30,
     2001  compared to $19.0  million for the three months ended  September  30,
     2000.   This   increase  was   partially   offset  by  a  decrease  in  the
     weighted-average yield earned to 8.09% in 2001 from 9.95% in 2000. Interest
     on  securities  increased to $100,000 for the three months ended  September
     30, 2001,  from $41,000 for the three months ended  September 30, 2000, due
     to an increase in the average investment portfolio balance.

Interest  Expense.  Interest expense on  interest-bearing  deposits increased to
     $545,000 for the three months ended  September 30, 2001,  from $237,000 for
     the three months ended  September  30, 2000,  due to an increase in average
     interest-bearing  deposits  to $45.5  million  for the three  months  ended
     September 30, 2001, from $17.8 million for the three months ended September
     30,  2000.  The  increase  was  partially  offset  by  a  decrease  in  the
     weighted-average  rate paid on  interest-bearing  deposits to 4.74% for the
     three months ended September 30, 2001 from 5.29% for the three months ended
     September 30, 2000.

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 $87,000 for the
     three month period ended  September  30, 2001,  compared to $77,000 for the
     same  period  in 2000.  The  allowance  for loan  losses  was  $534,000  at
     September 30, 2001, which management believes is adequate.

Noninterest  Income.  Noninterest income was $115,000 for the three months ended
     September  30,  2001,  compared  to $78,000 for the 2000  period.  Fees and
     service  charges  on deposit  accounts  totaled  $77,000  in 2001,  up from
     $53,000  in 2000,  due to an  increase  in the  average  number of  deposit
     accounts.

Noninterest  Expense.  Noninterest  expense  increased to $638,000 for the three
     months ended  September 30, 2001,  from $607,000 for the three months ended
     September  30,  2000.  Salaries  and  employee  benefits  was  the  largest
     noninterest  expense increasing from $273,000 during the three months ended
     September  30, 2000,  to $325,000 for the 2001  period.  In addition,  data
     processing  expense  increased  from  $40,000  for the three  months  ended
     September 30, 2000,  to $95,000 for the 2001 period.  The increase in total
     noninterest expenses relates to the overall growth of the Company.

Income Tax Benefit.  The income tax benefit for the three months ended September
     30, 2001, was $19,000 (an effective rate of 37.3%) compared to $105,000 for
     the three months ended September 30, 2000 (an effective tax rate of 36.7%).
     The  Company  recognized  an income tax  benefit as well as a deferred  tax
     asset  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, 2001 and 2000


General.  Net loss for the nine months ended  September  30, 2001,  was $198,000
     or $.19 per basic and diluted share  compared to $577,000 or $.57 per basic
     and diluted share for 2000. The Bank commenced  operations on May 28, 1999.
     For the nine months ended  September 30, 2001, the Company had not achieved
     the asset size to operate profitably.

Interest  Income.  Interest  income  was  $3,012,000  for the  nine months ended
     September  30,  2001,  compared to  $1,244,000  for the nine  months  ended
     September 30, 2000. Interest income earned on loans increased to $2,712,000
     for the nine months ended  September 30, 2001, from $1,024,000 for the nine
     months ended  September  30,  2000,  due to an increase in the average loan
     portfolio  balance to $42.0 million for the nine months ended September 30,
     2001, from $14.2 million for the nine months ended September 30, 2000. This
     increase was partially offset by a decrease in the  weighted-average  yield
     earned  to  8.64%  in 2001  from  9.62% in  2000.  Interest  on  securities
     increased to $226,000 for the nine months ended  September  30, 2001,  from
     $110,000 for the nine months ended  September 30, 2000,  due to an increase
     in the average investment portfolio balance.

Interest  Expense.  Interest expense on interest-bearing deposits was $1,472,000
     for the nine months ended September 30, 2001,  compared to $485,000 for the
     nine months ended  September 30, 2000. This increase was due to an increase
     in average  interest-bearing  deposits to $39.0 million for the nine months
     ended  September  30,  2001,  from $12.7  million for the nine month period
     ended  September  30, 2000.  This increase was also  partially  offset by a
     decrease in the weighted-average rate paid on interest-bearing  deposits to
     5.03% for the nine months ended  September 30, 2001 from 5.09% for the nine
     months ended September 30, 2000.

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 $190,000 for
     the nine months ended September 30, 2001, compared to $165,000 for the same
     period in 2000. The allowance for loan losses was $534,000 at September 30,
     2001, which management believes is adequate.

Noninterest  Income.  Noninterest  income was $314,000 for the nine months ended
     September  30, 2001,  compared to $171,000  for the 2000  period.  Fees and
     service  charges on deposit  accounts  totaled  $202,000  in 2001,  up from
     $121,000  in 2000,  due to an  increase  in the  average  number of deposit
     accounts.

Noninterest  Expense.  Noninterest  expense increased to $1,971,000 for the nine
     months ended  September 30, 2001, from $1,684,000 for the nine months ended
     September  30,  2000.  The largest  noninterest  expense was  salaries  and
     employee benefits totaling $993,000 for the nine months ended September 30,
     2001, compared to $830,000 for the comparable 2000 period. In addition data
     processing  expense  increased  from  $131,000  for the nine  months  ended
     September 30, 2000, to $267,000 for the 2001 period.  The increase in total
     noninterest expenses relates to the overall growth of the Company.

Income Tax  Benefit.  The income tax benefit for the nine months ended September
     30, 2001,  was $119,000 (an effective  rate of 37.5%)  compared to $343,000
     for the nine months ended  September 30, 2000 (an effective rate of 37.3%).
     The  Company  recognized  an income tax  benefit as well as a deferred  tax
     asset  because  management  believes it is more likely than not the Company
     will be able to  generate  taxable  income in the future to  realize  these
     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  increase in interest rates could  adversely
impact the Company's  earnings,  to the extent that the interest  rates borne by
assets and liabilities do not change at the same speed,  to the same extent,  or
on the same  basis.  There have been no  significant  changes  in the  Company's
market risk exposure since December 31, 2000.


                           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.

      Exhibit No.                   Description of Exhibit

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

(b)   Reports  on  Form  8-K.  The  Company  filed  no  Form  8-K's  during  the
      three-months ended September 30, 2001.


                                       15
<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 13, 2001          By:  /s/Gilbert J. Pomar III
       -----------------               -----------------------------------------
                                         Gilbert J. Pomar III, President
                                           and Chief Executive Officer





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














                                       16