<PAGE>

--------------------------------------------------------------------------------

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

                                   FORM 10-QSB
(Mark One)

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

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

     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 May 14, 2003

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

<PAGE>

<TABLE>
<CAPTION>
                          JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

                                            INDEX


PART I. FINANCIAL INFORMATION

   ITEM 1. FINANCIAL STATEMENTS                                                   PAGE
<S>                                                                                 <C>
     Condensed Consolidated Balance Sheets -
       At March 31, 2003 (unaudited) and At December 31, 2002........................2

     Condensed Consolidated Statements of Earnings (Unaudited) -
       Three Months Ended March 31, 2003 and 2002....................................3

     Condensed Consolidated Statements of Stockholders' Equity (Unaudited) -
       Three Months Ended March 31, 2003 and 2002....................................4

     Condensed Consolidated Statements of Cash Flows (Unaudited) -
       Three Months Ended March 31, 2003 and 2002....................................5

     Notes to Condensed Consolidated Financial Statements (Unaudited)..............6-9

     Review by Independent Accountants..............................................10

     Report on Review by Independent Accountants....................................11

   ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
     AND RESULTS OF OPERATIONS...................................................12-15

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

   ITEM 4. CONTROLS AND PROCEDURES..................................................16

PART II. OTHER INFORMATION

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

SIGNATURES..........................................................................18

CERTIFICATIONS...................................................................19-20




                                              1
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
                                   JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

                                         PART I. FINANCIAL INFORMATION

                                         Item 1. Financial Statements

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

                                                                                          MARCH 31,        DECEMBER 31,
                                                                                          ---------        ------------
    ASSETS                                                                                   2003               2002
                                                                                             ----               ----
                                                                                         (UNAUDITED)

<S>                                                                                       <C>                 <C>
Cash and due from banks..............................................................     $   4,011              3,924
Federal funds sold...................................................................           226                357
                                                                                          ---------          ---------

              Total cash and cash equivalents........................................         4,237              4,281

Securities available for sale........................................................        15,331             12,481
Securities held to maturity..........................................................            50                 50
Loans, net of allowance for loan losses of $1,433 in 2003 and $1,100 in 2002.........       122,401            108,933
Accrued interest receivable..........................................................           768                660
Premises and equipment, net..........................................................         3,076              3,122
Federal Home Loan Bank stock, at cost................................................           266                132
Deferred income taxes................................................................           932                988
Other assets.........................................................................           261                184
                                                                                          ---------          ---------

              Total assets...........................................................     $ 147,322            130,831
                                                                                          =========          =========

    LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:
    Noninterest-bearing demand deposits..............................................        18,890             16,781
    Money market, NOW and savings deposits...........................................        24,278             20,931
    Time deposits....................................................................        86,903             72,416
                                                                                          ---------          ---------

              Total deposits.........................................................       130,071            110,128

    Federal funds purchased..........................................................         3,000              3,000
    Other borrowings.................................................................         1,223              4,747
    Other liabilities................................................................           369                389
                                                                                          ---------          ---------

              Total liabilities......................................................       134,663            118,264
                                                                                          ---------          ---------

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 shares issued and outstanding.....................................            15                 15
    Additional paid-in capital.......................................................        14,229             14,229
    Accumulated deficit..............................................................        (1,740)            (1,793)
    Accumulated other comprehensive income...........................................           155                116
                                                                                          ---------          ---------

              Total stockholders' equity.............................................        12,659             12,567
                                                                                          ---------          ---------

              Total liabilities and stockholders' equity.............................     $ 147,322            130,831
                                                                                          =========          =========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       2

<PAGE>

<TABLE>
<CAPTION>

                         JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

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

                                                                                   THREE MONTHS ENDED
                                                                                         MARCH 31,
                                                                                -------------------------
                                                                                  2003             2002
                                                                                  ----             ----
<S>                                                                             <C>             <C>
Interest income:
    Loans..................................................................     $    1,771          1,252
    Securities.............................................................            199            131
    Other..................................................................              7              9
                                                                                ----------      ---------

              Total interest income........................................          1,977          1,392
                                                                                ----------      ---------
Interest expense:
    Deposits...............................................................            725            610
    Other borrowings.......................................................              8              2
                                                                                ----------      ---------

              Total interest expense.......................................            733            612
                                                                                ----------      ---------

              Net interest income..........................................          1,244            780

Provision for loan losses..................................................            356            107
                                                                                ----------      ---------

              Net interest income after provision for loan losses..........            888            673
                                                                                ----------      ---------

Noninterest income:
    Service charges on deposit accounts....................................            131            116
    Other..................................................................             21             45
                                                                                ----------      ---------

              Total noninterest income.....................................            152            161
                                                                                ----------      ---------

Noninterest expense:
    Salaries and employee benefits.........................................            500            382
    Occupancy expense......................................................            148            142
    Professional fees......................................................             64             23
    Data processing........................................................            100            109
    Printing and office supplies...........................................             11             22
    Advertising............................................................             29             10
    Other..................................................................            103             66
                                                                                ----------      ---------

              Total noninterest expense....................................            955            754
                                                                                ----------      ---------

Earnings before income taxes...............................................             85             80

              Income taxes.................................................             32             30
                                                                                ----------      ---------

Net earnings...............................................................     $       53             50
                                                                                ==========      =========

Earnings per share, basic and diluted......................................     $      .04            .05
                                                                                ==========      =========

Weighted-average number of common shares outstanding for basic.............      1,467,066      1,039,585
                                                                                ==========      =========

Weighted-average number of common shares outstanding for diluted...........      1,492,652      1,039,585
                                                                                ==========      =========

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

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       3

<PAGE>

<TABLE>
<CAPTION>
                                         JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

                                 CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

                                        THREE MONTHS ENDED MARCH 31, 2003 AND 2002
                                                  (DOLLARS IN THOUSANDS)


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

Comprehensive income (loss):
   Net earnings (unaudited)......................                   -            -             50           -               50

   Net change in unrealized loss on securities
    available for sale, net of income tax of $51
    (unaudited)...................................         -        -            -              -         (84)             (84)
                                                                                                                       -------

   Comprehensive income (loss) (unaudited)........                                                                         (34)
                                                                                                                       -------
Proceeds from sale of common stock, net of
   offering costs of $90 (unaudited)..............   192,520        2        1,929              -           -            1,931
                                                   ---------     ----       ------         ------        ----          -------

Balance at March 31, 2002 (unaudited)............. 1,209,586     $ 12       11,634         (2,327)       (125)           9,194
                                                   =========     ====       ======         ======        ====          =======

Balance at December 31, 2002...................... 1,467,066     $ 15       14,229         (1,793)        116           12,567
                                                                                                                       -------

Net earnings (unaudited)..........................         -        -            -             53           -               53

Comprehensive income:
   Net change in unrealized gain on securities
    available for sale, net of income tax of $24
    (unaudited)...................................         -        -            -              -          39               39
                                                                                                                       -------

   Comprehensive income (unaudited)...............                                                                          92
                                                   ---------     ----       ------         ------        ----          -------

Balance at March 31, 2003 (unaudited)............. 1,467,066     $ 15       14,229         (1,740)        155           12,659
                                                   =========     ====       ======         ======        ====          =======
</TABLE>





See Accompanying Notes to Condensed Consolidated Financial Statements.

                                       4
<PAGE>

<TABLE>
<CAPTION>

                            JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

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

                                                                                  THREE MONTHS ENDED
                                                                                       MARCH 31,
                                                                              ----------------------------
                                                                                2003               2002
                                                                                ----               ----
<S>                                                                           <C>                <C>
Cash flows from operating activities:
    Net earnings........................................................      $      53                 50
    Adjustments to reconcile net earnings to net cash
      provided by operating activities:
        Depreciation and amortization...................................             68                 72
        Net amortization of deferred loan costs.........................              2                  5
        Provision for loan losses.......................................            356                107
        Deferred income taxes...........................................             32                 30
        Net accretion of securities.....................................             (7)                (8)
        (Increase) decrease in accrued interest receivable and
            other assets................................................           (185)                95
        (Decrease) increase in other liabilities........................            (20)               253
                                                                              ---------          ---------

                Net cash provided by operating activities...............            299                604
                                                                              ---------          ---------

Cash flows from investing activities:
    Purchases of securities available for sale..........................         (3,497)            (1,500)
    Proceeds from calls and pay-downs of securities available
        for sale........................................................            717                246
    Purchase of Federal Home Loan Bank stock............................           (134)               (69)
    Net increase in loans...............................................        (13,826)            (9,778)
    Purchases of premises and equipment.................................            (22)               (35)
                                                                              ---------          ---------

                Net cash used in investing activities...................        (16,762)           (11,136)
                                                                              ---------          ---------

Cash flows from financing activities:
    Net increase in deposits............................................         19,943             10,698
    Proceeds from sale of common stock, net of offering costs...........              -              1,931
    Net repayment of other borrowings...................................         (3,524)            (2,110)
    Net repayment of federal funds purchased............................              -             (1,155)
                                                                              ---------          ---------

                Net cash provided by financing activities...............         16,419              9,364
                                                                              ---------          ---------

Net decrease in cash and cash equivalents...............................            (44)            (1,168)

Cash and cash equivalents at beginning of period........................          4,281              5,288
                                                                              ---------          ---------

Cash and cash equivalents at end of period..............................      $   4,237              4,120
                                                                              =========          =========

Supplemental disclosures of cash flow information:
    Cash paid during the period for:
        Interest........................................................      $     718                598
                                                                              =========          =========

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

    Noncash transaction:
        Accumulated other comprehensive income (loss), net
            change in unrealized gain on securities available for
            sale, net of tax............................................      $      39                (84)
                                                                              =========          =========
</TABLE>

See Accompanying Notes to Condensed Consolidated Financial Statements.

                                        5
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

        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 March 31, 2003, and the results of operations and cash flows
        for the three-month periods ended March 31, 2003 and 2002. The results
        of operations for the three months ended March 31, 2003, are not
        necessarily indicative of the results to be expected for the year ending
        December 31, 2003.

    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. Loans identified as impaired at March
        31, 2003 and 2002 and for the three-month periods then ended are as
        follows (in thousands):

<TABLE>
<CAPTION>
                                                                                   THREE MONTHS ENDED
                                                                                        MARCH 31,
                                                                                  --------------------
                                                                                   2003          2002
                                                                                   ----          ----
<S>                                                                               <C>                <C>
          Gross loans with related allowance for losses recorded,
            at end of period..............................................        $ 1,402            -

          Less:  Allowance on these loans.................................           (638)           -
                                                                                  -------       ------

          Net investment in impaired loans, at end of period..............        $   764            -
                                                                                  =======       ======

          Average investment in impaired loans............................        $   389            -
                                                                                  =======       ======

          Interest income recognized on impaired loans....................        $     -            -
                                                                                  =======       ======

          Interest income received on impaired loans......................        $     -            -
                                                                                  =======       ======
<CAPTION>

Nonaccrual and past due loans were as follows (in thousands):
                                                                                       AT MARCH 31,
                                                                                  --------------------
                                                                                   2003          2002
                                                                                   ----          ----
<S>                                                                               <C>                <C>
          Nonaccrual loans.................................................       $ 1,042          162
          Past due ninety days or more, but still accruing.................             -          150
                                                                                  -------       ------

                                                                                  $ 1,042          312
                                                                                  =======       ======

                                                                                               (continued)
</TABLE>

                                       6

<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED), CONTINUED

(2)  LOAN IMPAIRMENT AND LOAN LOSSES, CONTINUED.
     An analysis of the change in the allowance for loan losses follows (in
thousands):

<TABLE>
<CAPTION>
                                                                                   THREE MONTHS ENDED
                                                                                        MARCH 31,
                                                                                  --------------------
                                                                                   2003          2002
                                                                                   ----          ----
<S>                                                                               <C>                <C>
          Balance at beginning of period...................................       $ 1,100          657
          Charge-offs .....................................................           (23)           -
          Provision for loan losses........................................           356          107
                                                                                  -------       ------

          Balance at end of period.........................................       $ 1,433          764
                                                                                  =======       ======
</TABLE>

(3) EARNINGS PER SHARE. Basic earnings per share has been computed on the
        basis of the weighted-average number of shares of common stock
        outstanding during the period. 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. Earnings per common share have been computed based on the
        following:

<TABLE>
<CAPTION>
                                                                                  THREE MONTHS ENDED
                                                                                       MARCH 31,
                                                                                -----------------------
                                                                                  2003           2002
                                                                                  ----           ----
<S>                                                                             <C>           <C>

          Weighted average number of common shares outstanding used
               to calculate basic earnings per common share................     1,467,066     1,039,585
          Effect of dilutive stock options.................................        25,586             -
                                                                                ---------     ---------

          Weighted average number of common shares outstanding used
               to calculate diluted earnings per common share..............     1,492,652     1,039,585
                                                                                =========     =========
</TABLE>

(4) REGULATORY MATTERS. The Bank is required to maintain certain minimum
        regulatory capital requirements. The following is a summary at March 31,
        2003, of the regulatory capital requirements and the Bank's actual
        capital on a percentage basis:

<TABLE>
<CAPTION>
                                                                                          REGULATORY
                                                                                ACTUAL    REQUIREMENT
                                                                                ------    -----------

<S>                                                                                  <C>      <C>
          Total capital to risk-weighted assets............................      10.23%       8.00%
          Tier 1 capital to risk-weighted assets...........................       9.11%       4.00%
          Tier 1 capital to average assets - leverage ratio................       8.41%       4.00%

                                                                                              (continued)
</TABLE>

                                       7

<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED), CONTINUED

(5) STOCK OPTIONS. The Company established a Stock Option plan (the
        "Plan") for its directors, officers and employees. The total number of
        options which can be granted under this plan is 220,099. Both qualified
        and nonqualified options can be granted, and all options have ten year
        terms and vest over periods up to five years. As of March 31, 2003,
        80,242 shares remain available to be granted under the Plan. A summary
        of stock option transactions follows (dollars in thousands, except per
        share amounts):

<TABLE>
<CAPTION>
                                                                           AVERAGE     RANGE     AGGREGATE
                                                            NUMBER OF     PER SHARE      OF       OPTION
                                                              SHARES       PRICES      PRICES      PRICE
                                                            ---------     ---------   --------   ---------

<S>                                                          <C>           <C>         <C>        <C>
          Outstanding at December 31, 2001...............    135,857       $ 10.00     $ 10.00    $ 1,359
          Options granted................................      4,000         10.00       10.00         40
                                                             -------       -------     -------    --------

          Outstanding at March 31, 2002..................    139,857         10.00       10.00      1,399
                                                             =======                              =======

          Outstanding at December 31, 2002
                and March 31, 2003.......................    139,857       $ 10.00     $ 10.00    $ 1,399
                                                             =======                              =======
</TABLE>

    The following table illustrates the effect on net earnings and earnings
        per share if the Company had applied the fair value recognition
        provisions of FASB No. 123 to stock-based employee compensation (dollars
        in thousands, except per share amounts):

<TABLE>
<CAPTION>
                                                                                            THREE MONTHS ENDED
                                                                                                  MARCH 31,
                                                                                            --------------------
                                                                                            2003           2002
                                                                                            ----           ----
<S>                                                                                         <C>             <C>
          Net earnings, as reported....................................................     $  53            50

          Deduct:  Total stock-based employee compensation determined under
                the fair value based method for all awards, net of related tax effect..        (5)          (11)
                                                                                            -----         -----

          Proforma net earnings........................................................     $  48            39
                                                                                            =====         =====

          Basic earnings per share:
                As reported............................................................     $ .04           .05
                                                                                            =====         =====

                Proforma...............................................................     $ .03           .04
                                                                                            =====         =====

          Diluted earnings per share:
                As reported............................................................     $ .04           .05
                                                                                            =====         =====

                Proforma...............................................................     $ .03           .04
                                                                                            =====         =====

                                                                                                     (continued)
</TABLE>

                                        8
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

   NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED), CONTINUED


(5) STOCK OPTIONS, CONTINUED. In order to calculate the fair value of the
        options, it was assumed that the risk-free interest rate was 5.26%
        during the period ended March 31, 2002, there would be no dividends
        paid by the Company over the exercise period, the expected life of the
        options would be the entire exercise period, and stock volatility would
        be .13%. For purposes of the proforma disclosures the estimated fair
        value is treated as expense during the vesting period. There were no
        options granted during the three months ended March 31, 2003. The
        following information summarizes the fair value of options granted under
        the plan:

<TABLE>
<CAPTION>
                                                                                     THREE MONTHS ENDED
                                                                                          MARCH 31,
                                                                                  ------------------------
                                                                                     2003          2002
                                                                                     ----          ----
<S>                                                                                 <C>             <C>
          Weighted-average per share grant-date fair value of options
                issued during the period.....................................       $    -          4.17
                                                                                    ======        ======
</TABLE>


















                                        9
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

                        REVIEW BY INDEPENDENT ACCOUNTANTS



Hacker, Johnson & Smith PA, the Company's independent accountants, have made a
limited review of the interim financial data as of March 31, 2003, and for the
three-month periods ended March 31, 2003 and 2002 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.

















                                       10
<PAGE>






                         INDEPENDENT ACCOUNTANT'S REPORT



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 March 31, 2003,
and the related condensed consolidated statements of earnings, stockholders'
equity and cash flows for the three-month periods ended March 31, 2003 and 2002.
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, 2002, 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 6, 2003 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, 2002, 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
May 5, 2003


                                       11
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

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


GENERAL

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

LIQUIDITY AND CAPITAL RESOURCES

     The Company's primary source of cash during the three months ended March
     31, 2003, was the net increase in deposits of $19.9 million. During the
     three months ended March 31, 2003, cash was used to originate loans, net of
     repayments, of $13.8 million, purchase securities totaling approximately
     $3.5 million and to repay other borrowings totaling approximately $3.5
     million. The Company had time deposits of $54.7 million maturing in one
     year or less at March 31, 2003. The Company exceeded its regulatory
     liquidity requirements at March 31, 2003.

     The Company is a party to financial instruments with off-balance sheet risk
     in the normal course of business to meet the financing needs of its
     customers. These financial instruments are commitments to extend credit,
     unused lines of credit, and standby letters of credit and may involve, to
     varying degrees, elements of credit and interest rate risk in excess of the
     amount recognized in the consolidated balance sheet. The contract amounts
     of these instruments reflect the extent of involvement the Company has in
     these financial statements.

     The Company's exposure to credit loss in the event of nonperformance by the
     other party to the financial instrument for commitments to extend credit is
     represented by contractual amount of those instruments. The Company uses
     the same credit policies in making commitments as it does for on-balance
     sheet instruments.

     Commitments to extend credit are agreements to lend a customer as long as
     there is no violation of any condition established in the contract.
     Commitments generally have fixed expiration dates or other termination
     clauses and may require payment of a fee. Since some of the commitments are
     expected to expire without being drawn upon, the total commitment amount
     collateral obtained if deemed necessary by the Company upon extension of
     credit is based on management's credit evaluation of the counterparty.


                                       12
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY


     Standby letters of credit are conditional commitments issued by the Company
     to guarantee the performance of a customer to a third party. The credit
     risk involved in issuing letters of credit is essentially the same as that
     involved in extending loans to customers.

     Commitments to extend credit, unused lines of credit and standby letters of
     credit typically result in loans with a market interest rate when funded. A
     summary of the contract amounts of the Company's financial instruments,
     with off-balance sheet risk at March 31, 2003, follows (in thousands):

                                                         CONTRACT
                                                          AMOUNT
                                                        ---------

          Commitments to extend credit............      $   5,249
                                                        =========

          Unused lines of credit..................      $  14,120
                                                        =========

          Standby letters of credit...............      $     836
                                                        =========















                                       13
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

RESULTS OF OPERATIONS

The operating results of the Company depend primarily on 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 MARCH 31,
                                                     -------------------------------------------------------------------
                                                                    2003                               2002
                                                     ---------------------------------- --------------------------------
                                                                  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 (1).....................................  $ 114,055      1,771       6.30%   $ 73,611       1,252      6.90%
     Securities....................................     13,852        199       5.83       8,171         131      6.50
     Other interest-earning assets (2).............      2,446          7       1.16       1,977           9      1.85
                                                     ---------    -------               --------     -------

        Total interest-earning assets..............    130,353      1,977       6.15      83,759       1,392      6.74
                                                                  -------                            -------

Noninterest-earning assets.........................      8,548                             9,040
                                                     ---------                          --------

        Total assets...............................  $ 138,901                          $ 92,799
                                                     =========                          ========

Interest-bearing liabilities:
     Savings and NOW deposits......................     18,641         55       1.20      20,875         136      2.64
     Money market deposits.........................      3,999         11       1.12       2,862          16      2.27
     Time deposits.................................     85,195        659       3.14      47,648         458      3.90
     Other borrowings..............................      1,657          8       1.96         367           2      2.21
                                                     ---------    -------               --------     -------

        Total interest-bearing liabilities.........    109,492        733       2.72      71,752         612      3.46
                                                                  -------                            -------

Noninterest-bearing liabilities....................     16,635                            13,517
Stockholders' equity...............................     12,774                             7,530
                                                     ---------                          --------

        Total liabilities and stockholders' equity.  $ 138,901                          $ 92,799
                                                     =========                          ========

Net interest/dividend income.......................               $ 1,244                            $   780
                                                                  =======                            =======

Interest rate spread (3)...........................                             3.43%                             3.28%
                                                                                ====                              ====

Net interest margin (4)............................                             3.87%                             3.78%
                                                                                ====                              ====

Ratio of average interest-earning assets to
     average interest-bearing liabilities..........       1.19                              1.17
                                                          ====                              ====
</TABLE>

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

                                       14
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

COMPARISON OF THE THREE-MONTH PERIODS ENDED MARCH 31, 2003 AND 2002

    GENERAL. Net earnings for the three months ended March 31, 2003, was $53,000
       or $.04 per basic and diluted share compared to net earnings of $50,000
       or $.05 per basic and diluted share for 2002.

    INTEREST INCOME. Interest income was $1,977,000 for the three months ended
       March 31, 2003, compared to $1,392,000 for the three months ended March
       31, 2002. Interest income earned on loans increased to $1,771,000 for the
       three months ended March 31, 2003, from $1,252,000 for the three months
       ended March 31, 2002, due to an increase in the average loan portfolio
       balance to $114.1 million for the three months ended March 31, 2003
       compared to $73.6 million for the three months ended March 31, 2002. This
       increase was partially offset by a decrease in the average yield earned
       to 6.30% in 2003 from 6.90% in 2002. Interest on securities increased to
       $199,000 for the three months ended March 31, 2003, from $131,000 for the
       three months ended March 31, 2002, due primarily to an increase in the
       average investment portfolio balance.

    INTEREST EXPENSE. Interest expense on interest-bearing liabilities increased
       to $733,000 for the three months ended March 31, 2003, from $612,000 for
       the three months ended March 31, 2002, due to an increase in average
       interest-bearing liabilities to $109.5 million for the three months ended
       March 31, 2003, from $71.8 million for the three months ended March 31,
       2002. The increase was partially offset by a decrease in the average rate
       paid on interest-bearing liabilities to 2.72% for the three months ended
       March 31, 2003, from 3.46% for the three months ended March 31, 2002.

    PROVISION FOR LOAN LOSSES. The provision for loan losses is charged to
       earnings to increase the total allowance to a level deemed appropriate by
       management and is based upon the volume and type of lending conducted by
       the Company, industry standards, the amount of nonperforming loans and
       general economic conditions, particularly as they relate to the Company's
       market areas, and other factors related to the collectibility of the
       Company's loan portfolio. The provision for loan losses was $356,000 for
       the three month period ended March 31, 2003, compared to $107,000 for the
       same period in 2002. The increase in the provision for loan losses
       resulted primarily from specific allowances with respect to two
       commercial loans that were impaired as of March 31, 2003. The allowance
       for loan losses was $1,433,000 at March 31, 2003, which management
       believes is adequate.

    NONINTEREST INCOME. Noninterest income was $152,000 for the three months
       ended March 31, 2003, compared to $161,000 for the 2002 period. Service
       charges on deposit accounts totaled $131,000 in 2003, up from $116,000 in
       2002, due to an increase in the average number of deposit accounts.

    NONINTEREST EXPENSE. Noninterest expense increased to $955,000 for the three
       months ended March 31, 2003, from $754,000 for the three months ended
       March 31, 2002. Salaries and employee benefits was the largest
       noninterest expense increasing from $382,000 during the three months
       ended March 31, 2002, to $500,000 for the 2003 period. In addition,
       professional fees increased from $23,000 for the three months ended March
       31, 2002, to $64,000 for the 2003 period. The increase in total
       noninterest expenses relates to the overall growth of the Company.

    INCOME TAXES. Income taxes for the three months ended March 31, 2003, were
       $32,000 (an effective rate of 37.7%) compared to income taxes of $30,000
       for the three months ended March 31, 2002 (an effective tax rate of
       37.5%).

                                       15
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

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, 2002.

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.








                                       16
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY

                           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 and 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 March 31, 2003, no Form
     8-K was filed by the Company.






                                       17
<PAGE>

                    JACKSONVILLE BANCORP, INC. AND SUBSIDIARY


                                   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. AND SUBSIDIARY
                                       (Registrant)



Date:  May 15, 2003                     By: /s/ Gilbert J. Pomar, III
      -----------------------              -------------------------------------
                                           Gilbert J. Pomar, III, President and
                                             Chief Executive Officer



Date:  May 15, 2003                     By: /s/ Cheryl L. Whalen
      -----------------------              -------------------------------------
                                           Cheryl L. Whalen, Executive Vice
                                           President and Chief Financial Officer








                                       18
<PAGE>

                                 CERTIFICATIONS


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

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

     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:  May 15, 2003                By:  /s/ Gilbert J. Pomar, III
            ---------------                 -----------------------------------
                                            Gilbert J. Pomar, III, President and
                                              Chief Executive Officer

                                       19
<PAGE>

     I, Cheryl L. Whalen, certify, that:

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

     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:   May 15, 2003                  By: /s/ Cheryl L. Whalen
             ----------------                  --------------------------------
                                               Cheryl L. Whalen, Executive Vice
                                               President and Chief Financial
                                               Officer

                                       20