FORM 10-Q

                     SECURITIES AND EXCHANGE COMMISSION
                          Washington, D. C.  20549

(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, 2002
                              --------------------------------

                                    or

[ ]           TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                   OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                       to
                               -------------------      ----------------------

Commission File Number 0-28070
                       ---------------

                         Jacksonville Bancorp, Inc.
------------------------------------------------------------------------------
        (Exact name of registrant as specified in its charter)

             Texas                                           75-2632781
-------------------------------                        -----------------------
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                         Identification Number)

Commerce at Neches
Jacksonville, Texas                                             75766
-------------------------------                        -----------------------
(Address of principal                                         (Zip Code)
executive office)

Registrant's telephone number, including area code:  (903) 586-9861

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 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
    ---                                       ---

As of May 13, 2002, the latest practicable date, 2,738,569 shares of the
registrant's common stock, $.01 par value, were issued and 1,776,824 shares
were outstanding.




                JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES

                                    INDEX
                                    -----

PART I.             Financial Information
------------------------------------------------------------------------------
                                                                         Page
                                                                         ----
Item 1.             Financial Statements

                    Consolidated Statements of Financial
                    Condition as of March 31, 2002
                    (Unaudited)and September 30, 2001(Audited)            3

                    Consolidated Statements of Earnings for the
                    Six and Three Months Ended March 31, 2002
                    and 2001 (Unaudited)                                  4

                    Consolidated Statements of Cash Flows for
                    the Six Months Ended March 31, 2002 and
                    2001 (Unaudited)                                      5

                    Consolidated Statement of Changes in
                    Stockholders' Equity for the Six Months Ended
                    March 31, 2002 (Unaudited)                            6

                    Notes to Consolidated Financial Statements            7

Item 2.             Management's Discussion and Analysis of              10
                    Financial Condition and Results of Operations
                    for the Six and Three Months Ended March 31, 2002

Item 3.             Quantitative and Qualitative Disclosures about
                    Market Risk                                          16

PART II.            Other Information
------------------------------------------------------------------------------

Item 1.             Legal Proceedings                                    19
Item 2.             Changes in Securities                                19
Item 3.             Defaults upon Senior Securities                      19
Item 4.             Submission of Matters to a Vote of Security Holders  19
Item 5.             Other Information                                    20
Item 6.             Exhibits and Reports on Form 8-K                     20
Signatures















                        Part I - Financial Information
                        Item 1., Financial Statements


<TABLE>

                 JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
               CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                            (DOLLARS IN THOUSANDS)
                                                         March 31,     September 30,
                                                      -------------   --------------
                                                           2002            2001
                                                      -------------   --------------
                                                        (Unaudited)     (Audited)
                              ASSETS
  <S>                                                 <C>             <C>
  Cash on hand and in banks                           $       3,713   $      2,804
  Interest-bearing deposits                                   8,769         10,835
  Investment securities:
    Held-to-maturity, at cost                                15,982          4,500
    Available-for-sale, at estimated market value            13,061         14,273
  Mortgage-backed certificates:
    Held-to-maturity, at cost                                47,352         14,603
    Available-for-sale, at estimated market value            31,617         44,255
  Loans receivable, net                                     260,766        246,432
  Accrued interest receivable                                 2,977          2,727
  Foreclosed real estate, net                                    38             63
  Premises and equipment, net                                 5,045          4,782
  Stock in Federal Home Loan Bank of Dallas, at cost          3,122          2,613
  Investment in real estate at cost                           1,240          1,176
  Mortgage servicing rights                                     599            597
  Intangible assets, net                                      3,505              -
  Other assets                                                1,045          1,334
                                                      -------------  ---------------
        Total assets                                  $     398,831  $     350,994
                                                      =============  ===============

LIABILITIES
  Deposits                                            $     321,482  $     260,304
  FHLB Advances                                              36,379         48,108
  Advances from borrowers for taxes and insurance             2,044          4,060
  Accrued expenses and other liabilities                      2,615          2,538
                                                      -------------  ---------------
        Total liabilities                                   362,520        315,010


STOCKHOLDERS' EQUITY
  Common stock, $.01 par value, 25,000,000
    shares authorized; 2,733,569 and 2,705,395
    shares issued; and 1,771,824 and 1,835,835
    shares outstanding at March 31, 2002 and
    September 30, 2001, respectively                             27             27
    Additional paid in capital                               23,329         23,046
    Retained earnings, substantially restricted              29,455         27,189
  Less:
    Treasury shares, at cost                                (15,653)       (13,676)
    (961,745 & 869,560 shares, respectively)
    Shares acquired by Employee Stock Ownership Plan           (954)          (989)
    Shares acquired by Management Recognition Plan                -            (14)
    Accumulated other comprehensive income                      107            401
                                                      -------------  ---------------

        Total stockholders' equity                           36,311         35,984
                                                      -------------  ---------------
          Total liabilities and stockholders' equity  $     398,831  $     350,994
                                                      =============  ===============
</TABLE>



                                        -3-



<TABLE>

                   JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF EARNINGS
                             (DOLLARS IN THOUSANDS)
                                   Unaudited


                                       Six Months Ended       Three Months Ended
                                           March 31,               March 31,
                                      -------------------    --------------------
                                        2002       2001         2002       2001
                                      --------   --------    ---------  ---------
<S>                                   <C>        <C>         <C>        <C>
INTEREST INCOME
  Loans receivable                    $ 10,865   $  9,755    $   5,558  $   4,832
  Mortgage-backed securities             2,244      1,307        1,119        748
  Investment securities                    691        690          370        336
  Other                                    163        234           72        109
                                      --------   --------    ---------  ---------
    Total interest income               13,963     11,986        7,119      6,025

INTEREST EXPENSE
  Deposits                               6,087      5,619        3,009      2,815
  Other                                  1,075      1,355          501        714
                                      --------   --------    ---------  ---------
      Total interest expense             7,162      6,974        3,510      3,529
                                      --------   --------    ---------  ---------
      Net interest income                6,801      5,012        3,609      2,496

PROVISION FOR LOSSES ON LOANS               48         41           25         23
                                      --------   --------    ---------  ---------

  Net interest income after
    provision for losses on loans        6,753      4,971        3,584      2,473

NONINTEREST INCOME
  Fees and deposit service charges       1,173        859          595        473
  Real estate operations, net               48        188           41        198
  Mortgage servicing assets                 12         13           12          3
  Gain on sale of investment securities      -         42            -         42
  Other                                    132         89           94         48
                                      --------   --------    ---------  ---------
    Total noninterest income             1,365      1,191          742        764

NONINTEREST EXPENSE
  Compensation and benefits              2,387      2,068        1,167      1,044
  Occupancy and equipment                  513        382          292        208
  Insurance expense                         55         48           28         24
  Amortization of intangible assets        167          -          100          -
  Other                                    880        687          493        357
                                      --------   --------    ---------  ---------
      Total noninterest expense          4,002      3,185        2,080      1,633

INCOME BEFORE TAXES ON INCOME            4,116      2,977        2,246      1,604

TAXES ON INCOME                          1,418      1,023          777        551
                                      --------   --------    ---------  ---------

  Net earnings                         $ 2,698   $  1,954    $   1,469  $   1,053
                                      ========   ========    =========  =========

EARNINGS PER SHARE
  Basic                               $   1.55   $   1.05    $     .85  $     .57
                                      ========   ========    =========  =========

  Diluted                             $   1.48   $   1.01    $     .81  $     .55
                                      ========   ========    =========  =========

</TABLE>



                                         -4-



<TABLE>

                   JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                    Unaudited

                                                            Six Months   Six Months
                                                              Ended         Ended
                                                             March 31,    March 31,
                                                               2002         2001
                                                            ----------   ----------
<S>                                                         <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                $    2,698   $    1,954
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                                  279          161
     Amortization                                                  167            4
     Provision for losses on loans and real estate                  48           41
     Loans originated for sale                                 (17,753)     (10,399)
     Loans sold                                                 17,753       10,399
     Gain on sale of other real estate                             (14)        (131)
     Gain on loans sold                                             (2)         (16)
     Accrual of MRP awards                                          14           84
     ESOP compensation accrued                                      64           50
     Change in assets and liabilities:
       (Increase) decrease in accrued interest receivable         (250)          72
       (Increase) decrease in prepaid expenses and
         other assets                                           (3,383)         634
       Increase (decrease) in accrued expenses and
        other liabilities                                          221         (240)
                                                            ----------   ----------
         Net cash provided by (used in)
          operating activities                                    (158)       2,613

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds on maturity of investment securities                  9,497       14,804
  Purchase of investment securities                            (19,986)      (8,990)
  Net principal payments (origination) on loans                (14,377)      (3,297)
  Proceeds from sale of foreclosed real estate                      34           50
  Purchase of mortgage-backed securities                       (35,148)     (17,000)
  Principal paydowns on mortgage-backed securities              14,818        2,766
  Capital expenditures                                            (542)         (85)
  Purchase of stock in FHLB Dallas                                (509)        (394)
  Investment in real estate                                        (64)          32
                                                            ----------   ----------
         Net cash used in investing activities                 (46,277)     (12,114)

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in deposits                                      61,178       11,560
  Net decrease in advances for taxes and insurance              (2,016)      (2,120)
  Dividends paid                                                  (432)        (456)
  Advances from FHLB                                            22,500       32,000
  Payment of FHLB advances                                     (34,229)     (26,215)
  Purchase of Treasury stock                                    (1,977)      (1,514)
  Proceeds from exercise of stock options                          254           95
                                                            ----------   ----------
         Net cash provided by (used in) financing
           activities                                           45,278       13,350
                                                            ----------   ----------
         Net increase (decrease)in cash and cash equiv.         (1,157)       3,849
                                                            ----------   ----------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                13,639        7,521
                                                            ----------   ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                  $   12,482   $   11,370
                                                            ==========   ==========


</TABLE>

                                       -5-




               JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
        CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                 FOR THE SIX MONTHS ENDED March 31, 2002
                           (DOLLARS IN THOUSANDS)
                                 Unaudited

                                                                   Total
                                                                Stockholders'
                                                                   Equity
                                                                -------------
Balance at September 30, 2001                                   $      35,984

    Net earnings                                       2,698
    Other comprehensive income - net change in
    unrealized gain on securities available-for-sale    (294)
                                                       -----
  Comprehensive income                                                  2,404
  Accrual of MRP awards                                                    14
  Accrual of ESOP compensation                                             64
  Cash dividends                                                         (432)
  Treasury shares purchased                                            (1,977)
  Proceeds from Exercise of Stock Options                                 254
                                                                -------------
Balance at March 31, 2002                                       $      36,311
                                                                =============
























                                     -6-



                          JACKSONVILLE BANCORP, INC.
                   NOTES TO UNAUDITED FINANCIAL STATEMENTS



NOTE 1 - BASIS OF PRESENTATION
  The unaudited financial statements were prepared in accordance with
  instructions for Form 10-Q and, therefore, do not include information or
  footnotes necessary for a complete presentation of financial position,
  results of operations, and cash flows in conformity with generally accepted
  accounting principles.  However, all adjustments (consisting only of normal
  recurring adjustments) which, in the opinion of management, are necessary
  for a fair presentation of the financial statements have been included.
  The results of operations for the six-month and three-month periods ended
  March 31, 2002 and 2001 are not necessarily indicative of the results which
  may be expected for an entire fiscal year.

NOTE 2 - EARNINGS PER SHARE
  Basic earnings per share for the six and three month periods ended March 31,
  2002 and 2001 have been computed by dividing net earnings by the weighted
  average number of shares outstanding.  Shares controlled by the ESOP are
  accounted for in accordance with Statement of Position 93-6 under which
  unallocated shares are not considered in the weighted average number of
  shares of common stock outstanding.  Diluted earnings per share have been
  computed, giving effect to outstanding stock purchase options by application
  of the treasury stock method.

  Following is a summary of shares used for calculating basic and diluted
  earnings per share:
                                Six Months Ended         Three Months Ended
                                    March 31,                 March 31,
                               2002         2001         2002         2001
                            ---------    ---------    ---------    ---------
  Basic EPS - Average
   shares outstanding       1,738,208    1,853,546    1,726,979    1,838,623

  Effect of dilutive
   stock options               87,763       80,334       86,774       91,805
                            ---------    ---------    ---------    ---------
  Diluted EPS - Average
   shares outstanding       1,825,971    1,933,880    1,813,753    1,930,428
                            =========    =========    =========    =========

NOTE 3 - RECLASSIFICATION OF PREVIOUS STATEMENTS
  Certain items previously reported have been reclassified to conform with
  the current period's reporting format.












                                      -7-



NOTE 4 -RECENT ACCOUNT PRONOUNCEMENTS

    The Financial Accounting Standards Board (FASB) issued Statement Number
141, "Business Combinations" (SFAS No. 141), and Statement Number 142,
"Goodwill and Other Intangible Assets" (SFAS No. 142), in June 2001.  The
Statements require that all business combinations be accounted for using the
purchase method of accounting and prohibit use of the pooling-of-interests
method.  Intangible assets acquired in a business combination shall be
recognized as an asset apart from goodwill (goodwill is measured as the excess
of the cost of an acquired entity over the net amounts assigned to assets
acquired and liabilities assumed) if the assets arise from contractual or
other legal rights.  If an intangible asset does not arise from contractual or
other legal rights, it shall be recognized as an asset apart from goodwill
only if it is separable, that is, capable of being separated or divided from
the acquired enterprise and sold, transferred, licensed, rented, or exchanged
(regardless of whether there is an intent to do so).  Goodwill will not be
amortized but must be tested for impairment annually at the reporting unit
level.  The provision of the Statements applies to all combinations initiated
after June 30, 2001.  Management evaluated the provisions of these Statements
which impact the accounting for future business combinations including the
acquisition of the Carthage, Texas branch in November, 2001 and adopted
statements 141 and 142 in the quarter ending December 31, 2001.

    In June 2001, the FASB issued Statement No. 143, "Accounting for Asset
Retirement Obligations."  This Statement addresses financial accounting and
reporting for obligations associated with the retirement of tangible long-
lived assets and the associated asset retirement costs.  It applies to legal
obligations associated with the retirement of long-lived assets that result
from the acquisition, construction, development and (or) the normal operation
of a long-lived asset, except for certain obligations of lessees.  As used in
this Statement, a legal obligation is an obligation that a party is required
to settle as a result of an existing or enacted law, statute, ordinance, or
written or oral contract or by legal construction of a contract under the
doctrine of promissory estoppel.  This Statement requires that the fair value
of a liability for an asset retirement obligation be recognized in the period
in which it is incurred if a reasonable estimate of fair value can be made.
The associated asset retirement costs are capitalized as part of the carrying
amount of the long-lived asset.

    This Statement amends FASB Statement No. 19, Financial Accounting and
Reporting by Oil and Gas Producing Companies, and it applies to all entities.
It is effective for financial statements issued for fiscal years beginning
after June 15, 2002.  Earlier application is encouraged.  The Company does not
expect the adoption of the Statement to have an impact on it's earnings,
financial condition, or equity.

    In August 2001, the FASB issued Statement No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets."  This Statement addresses
financial accounting and reporting for the impairment or disposal of long-
lived assets and supersedes SFAS No. 121, Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of.  However, the
Statement retains the fundamental provisions of Statement 121 for (a)
recognition and measurement of the impairment of long-lived assets to be held
and used and (b) measurement of long-lived assets to be disposed of by sale.

    This Statement supersedes the accounting and reporting provisions of APB
Opinion No. 30, Reporting the Results of Operations-Reporting the Effects of
Disposal of a Segment of a Business, and Extraordinary, Unusual and

                                      -8-



Infrequently Occurring Events and Transactions, for the disposal of a segment
of a business.  However, this Statement retains the requirement of Opinion 30
to report discontinued operations separately from continuing operations and
extends that reporting to a component of an entity that either has been
disposed of (by sale, by abandonment, or in distribution to owners) or is
classified as held for sale.  This Statement also amends ARB No. 51,
Consolidated Financial Statements, to eliminate the exception to consolidation
for a temporarily controlled subsidiary.

    The provisions of this Statement are effective for financial statements
issued for fiscal years beginning after December 15, 2001, and interim periods
within those fiscal years, with earlier application encouraged.  The
provisions of this Statement generally are to be applied prospectively.  The
Company does not expect the adoption of the Statement to have an impact on
it's earnings, financial condition, or equity.

































                                      -9-









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


Discussion of Changes in Financial Condition from September 30, 2001 to March
31, 2002.

     Jacksonville Bancorp, Inc., is the indirect parent holding company of
Jacksonville Savings Bank, the Company's principal subsidiary.  Jacksonville
Bancorp, Inc., became the holding company of Jacksonville Savings Bank as part
of a second step conversion to stock form in 1996.  At present, Jacksonville
Savings Bank is directly held by Jacksonville IHC, Inc., (established as the
holding company for Jacksonville Savings Bank in 1997) which is in turn wholly
owned by Jacksonville Bancorp Inc.  Jacksonville IHC, Inc., was formed in
order to minimize Company taxes that must be paid based upon Texas source
income.  In addition to holding all the issued and outstanding shares of
Jacksonville Savings Bank, Jacksonville IHC's only other business activity was
to loan funds to Jacksonville's Employee Stock Ownership Plan.  Jacksonville
Savings Bank currently owns 100% of the capital stock of JS&L Corporation
("JS&L"), established in December 1979.  JS&L's is used as a diversification
vehicle by the Company.  Its main activity has been the servicing of purchased
residential first and second lien notes and real estate development.

    At March 31, 2002, the assets of Jacksonville totaled $398.8 million
compared to $351.0 million at September 30, 2001, an increase of $47.8
million. This increase was primarily an increase in investment securities of
$10.3 million; an increase in mortgage backed securities of $20.1 million and
an increase in loans receivable, net of $14.3 million.  These increases were
primarily offset by a decrease in interest bearing deposits of $2.1 million
and a decrease in other assets of $289,000.  The increases in assets were
primarily funded with deposits obtained from the acquisition of the Carthage,
Texas branch.

    On November 9, 2001 Jacksonville finalized the purchase of the branch in
Carthage, Texas from Jefferson Heritage Bank.  A premium of 8% on the deposits
was paid for the branch which produced a total of $3.7 million in intangible
assets.  Approximately 40% of the premium was identified by management as core
base intangibles with the remaining premium representing unidentified
intangibles.  Core-based intangibles are the values of those deposits
management determined to be the only identifiable intangible asset acquired.
Based upon interpretations of current accounting literature the premiums are
being amortized over their respective estimated lives.  For six months ended
March 31, 2002 premium amortization totaled $167,000.

    In anticipation of receiving these funds, management elected to utilize
FHLB short term advances to purchase mortgage-backed securities, including
collateralized mortgage obligations, investment securities, and to fund loan
originations.  The advances were paid in full from funds received upon closing
the Carthage branch transaction.

    Cash on hand increased during the period ending March 31, 2002 to $3.7
million from the $2.8 million reported at September 30, 2001, while interest-
bearing deposits decreased $2.1 million during the period primarily in
deposits at Federal Home Loan Bank, and deposits in other insured financial
institutions.

                                    -10-



    The investment securities portfolios, held-to-maturity and available-
for-sale, increased  during the period from a total of $18.8 million at
September 30, 2001 to $29.0 million at March 31, 2002.  The $10.3 million
increase was primarily the result of purchases of investment securities in
both available-for -sale and held-to-maturity portfolios.

    Mortgage-backed securities, held-to-maturity and available-for-sale,
increased from $58.9 million at September 30, 2001 to $79.0 million at March
31, 2001, primarily from the purchase of this product in anticipation of using
funds from the Carthage branch acquisition as described above.


    Loans receivable, net increased by $14.3 million from $246.4 million at
September 30, 2001 to $260.8 million at March 31, 2002. The increase was
primarily funded from increases in deposits.  For the six month period ended
March 31, 2002, Jacksonville also originated $17.8 million in loans sold to
the secondary market.  Of the total loans sold, $4.3 million were whole loan
sales, servicing released, with the balance of $13.4 million sold with
servicing retained.

    Accrued interest receivable increased from $2.7 million at September
30,2001 to $3.0 million at March 31, 2002.

    Premises and equipment, net increased $263,000, during the period
primarily as a result of the addition of the Carthage branch.

    Stock in Federal Home Loan Bank increased from $2.6 million at September
30, 2001 to $3.1 million at March 31, 2002 primarily due to additional stock
purchased and dividends received during the six month period.

    All remaining asset classifications for March 31, 2002 remained
relatively comparable to those numbers disclosed at September 30, 2001 with
the exception of interest-bearing deposits which declined $2.1 million; a
decline in other assets of $289,000; and the recording of intangible assets,
net of $3.5 million which represents the 8% premium paid on deposits for the
Carthage branch acquisition.

    At March 31, 2002  liabilities of the Company totaled $362.5 million
compared to $315.0 million at September 30, 2001.  Deposits grew $61.2 million
for the period from $260.3 million to $321.5 million at March 31, 2002,
principally as a result of the growth in savings deposits, of which $44.3
million is attributable to the Carthage branch deposit acquisition.  FHLB
advances decreased from $48.1 million to $36.4 million for the comparable
periods.

    Advances from borrowers for taxes and insurance decreased from $4.1
million to $2.0 million for the six month period ended March 31, 2002.  This
decrease is the result of the payment from customer's escrow accounts all
amounts due to taxing agencies for the year 2001.

    Accrued expenses and other liabilities increased from $2.5 million at
September 30, 2001 to  $2.6 million at March 31, 2002.

                                    -11-



Nonperforming Assets

    The Company's nonperforming assets, which primarily consist of
nonaccrual loans, real estate and other assets acquired through foreclosure
totaled $719,000, or .18% of assets, at March 31, 2002, compared to $687,000,
or .20% of assets, at September 30, 2001. The following table sets forth
information relating to the Company's nonperforming assets at the dates
indicated.


                              March 31, 2002             September 30, 2001
                              --------------             ------------------
                                       (Dollars in thousands)
Mortgage Loans
  Single family residential         420                         401
  Multi-family residential            -                           -
  Commercial                          -                           -
  Construction                        -                           -
  Land                               64                          89
Business and Consumer Loans
  Commercial business                 -                           -
  Consumer                          138                         134
                                    ---                         ---
  Total nonperforming loans         622                         624
Real estate owned and other
 acquired assets, net                97                          63
                                    ---                         ---
  Total non-performing assets       719                         687
                                    ===                         ===
Nonperforming loans to total
 loans                              .24%                        .25%
  Total nonperforming assets
   to total assets                  .18%                        .20%


     At March 31,2002, the accrued interest reserve for mortgage loans and
non-mortgage loans for interest in excess of ninety days was $37,000 compared
to $63,000 at September 30, 2001.  During the three and six month periods
ended March 31, 2002, no interest income was actually recorded on any loans
after they were placed on non-accrued status.

  Stockholder's equity increased during the period by $327,000 from $36.0
million to $36.3 million.  Retained earnings increased from $27.2 million at
September 30, 2001 to $29.5 million at March 31,2002 primarily as a result of
net income for the period after dividends. Treasury shares increased for the
period from $13.7 million to $15.7 million due to the repurchase of 92,185
shares during the period, bringing total treasury shares to 961,745.

  Shares acquired by the Employee Stock Ownership Plan decreased by $35,000
due to the release of ESOP shares during the period ended March 31, 2002.
Shares acquired by the Management Recognition Plan ("M.R.P.") decreased by
$14,000 to a zero balance as all M.R.P. shares became fully vested during the
period.

  Net unrealized gain/loss on investment and mortgage-backed securities,
available for sale, decreased from a $401,000 unrealized gain at September 30,
2001 to a $107,000 unrealized gain at March 31, 2002 which reflects a decline
in investment value.  These gains were based on "marked-to-market" values of
the portfolios at the respective periods in accordance with FASB 115.

                                    -12-



Comparison of Operating Results for the three and six months ended March 31,
2002 and 2001.

  Net income for the three months ended March 31, 2002 totaled $1.5 million
compared to $1.1 million for the same period in 2001.  The increase of
$416,000 was primarily due to an increase of $1.1 million in total interest
income; a decrease in total interest expense of $19,000; offset by an increase
in non-interest expense of $447,000 and a decrease in non-interest income of
$22,000.  Federal income tax increased $226,000 from $551,000 for the three
months ended March 31, 2001 to $777,000 for the current quarter.

  Non-interest income decreased $22,000 from $764,000 for the quarter ended
March 31, 2001 to $742,000 for the March 31, 2002 quarter.

  Non-interest expense increased from $1.63 million for the quarter ended
March 31, 2001 to $2.1 million for the March 31, 2002 period.

  Net income for the six months ended March 31, 2002 was $2.7 million
compared to $2.0 million for the same period in 2001, an increase of 38.1%.
Net interest income after provision for losses on loans increased $1.8 million
from $5.0 million at March 31, 2001 to $6.8 million at March 31, 2002.  Non-
interest income increased from $1.2 million for the six months ended March 31,
2001 to $1.4 million at March 31, 2002, a 14.6% increase, while non-interest
expenses increased from $3.2 million to $4.0 million for the comparable
periods.

Net Interest Income

  Total interest income increased by $1.1 million to $7.1 million during the
three months ended March 31, 2002 compared to the same period in the prior
year.  Interest income from loans receivable increased  $726,000 due primarily
to an increase in the average balances of loans in the comparative periods.
Interest on mortgage-backed securities increased $371,000 from $748,000 for
the quarter ended March 31, 2001 to $1.1 million for the quarter ended March
31, 2002 due primarily to an increase in average portfolio balances for the
comparable periods.  Interest on investment securities increased $34,000 from
$336,000 for the quarter ended March 31, 2001 to $370,000 at March 31, 2002
which is also attributable to increased portfolio balances.  Other interest
income decreased from $109,000 for the three month period ended March 31, 2001
to $72,000 for the comparable period ended March 31, 2002.  The decrease was
primarily due to a reduction in interest received on interest bearing deposits
in other banks.

  Total interest expense decreased by $19,000 for the three months ended
March 31, 2002 compared to the same period in 2001.  Interest on deposits
increased from $2.8 million for the three months ended March 31, 2001 to $3.0
million for the March 31, 2002 quarter, a 6.9% increase, even though deposits
increased $89.2 million for the year, a 38.4% increase.  Interest on FHLB
advances decreased $213,000 for the comparable periods.

  For the six month period ended March 31, 2002, interest on deposits
increased to $6.1 million from $5.6 million for the six months ended March 31,
2001.  For the comparable period interest on advances decreased to $1.1
million from $1.4 million.

                                    -13-



  For the six months ended March 31, 2002 net interest income before
provision for loan losses increased by $1.8 million to $6.8 million, a 35.7%
increase from the comparable period ended March 31, 2001.  Total interest
income for the six month period ended March 31, 2002 was $14.0 million
compared to $12.0 million at March 31, 2001.  Total interest expense increased
to $7.2 million from $7.0 million for the comparable periods.

Provisions for Losses on Loans

  The provisions for losses on loans are the result of management's decision
to have adequate reserves based on historical experience, industry standards,
the amount of non-performing assets, general economic conditions in the
Company's market area, and the collectability  of the loan portfolio.  Based
on these factors, the loan loss provision was increased by $2,000 from $23,000
at March 31, 2001 to $25,000 at March 31, 2002.   For the six month period
ended March 31, 2002 the provision was $48,000 compared to $41,000 at March
31, 2001.

  The following table sets forth the activity in the Company's allowance for
loan losses during the periods indicated.

<TABLE>

                                           Six Months Ended March 31,        Three Months Ended March 31,
                                           --------------------------        ----------------------------
                                             2002              2001             2002              2001
                                             ----              ----             ----              ----
<S>                                        <C>               <C>              <C>               <C>
Allowance at beginning of period           $1,257            $1,227           $1,270            $1,221

Provision for loan losses                      48                41               25                23

Charge-offs:                                  (31)              (22)             (21)              (17)

   Consumer

   Commercial business                          -               (19)               -                 -

Recoveries                                      2                 -                2                 -
                                           ------            ------           ------            ------
Net Charge-offs                               (29)              (41)             (19)              (17)
                                           ------            ------           ------            ------
Allowance at end of period                 $1,276            $1,227           $1,276            $1,227
                                           ======            ======           ======            ======


Allowance for loan losses to total
nonperforming loans at end of period          205%              197%             205%              197%
                                           ======            ======           ======            ======

Allowance for loan losses to total
loans at end of period                        .49%              .53%             .49%              .53%
                                           ======            ======           ======            ======

</TABLE>

Non-Interest Income

  Non-interest income consists primarily of fees collected on mortgage and
consumer loans, service charges on deposit accounts and income from real
estate operations.  This income decreased

                                    -14-



$22,000 from $764,000 for the three month period ended March 31, 2001 to
$742,000 for the comparable period in 2002.  The decrease was primarily due
to an increase in fees and deposit service charges of $122,000 from $473,000
at March 31, 2001 to $595,000 at March 31, 2002; an increase in mortgage
servicing assets of $9,000; and an increase of other non-interest income of
$46,000; offset by a decrease of $157,000 in real estate operations, net and
a decrease in gain on sale of investment securities of $42,000.  The decrease
in real estate operations, net was primarily due to decreases in gains on
sale of foreclosed and non-foreclosed properties for the comparable periods.

  For the six month period, non-interest income increased from $1.2 million
at March 31, 2001 to $1.4 million at March 31, 2002 primarily due to an
increase in fees and deposit service charges of $314,000; and an increase in
other non-interest income of $43,000; offset by a decrease in real estate
operations, net of $140,000 and a decrease in gain on  sale of investment
securities of $42,000.

Non-Interest Expense

  Non-interest expense increased to $2.1 million at March 31, 2002 from $1.6
million for the quarter ended March 31, 2001.  The increase was primarily due
to an increase in compensation and benefits of $123,000; an increase of
$84,000 in occupancy and equipment; amortization of intangible assets of
$100,000 and an increase of $136,000 in other non-interest expense.  A large
part of the increase was attributable to the costs associated with the
acquisition of the Carthage, Texas branch.

  Non-interest expense increased by $817,000 for the six month period from
$3.2 million at March 31, 2001 to $4.0 million at March 31, 2002.  This
increase was primarily due to an increase in compensation and benefits of
$319,000; an increase of $131,000 in occupancy and equipment,  amortization of
intangible assets of $167,000 and an increase in other non-interest expense of
$193,000.

Taxes

  The provision for income tax amounted to $777,000 and $1.4 million for the
three and six months ended March 31, 2002 respectively, compared to $551,000
and $1.02 million for the three and six months ended March 31, 2001,
respectively, based on earnings for the period.

Liquidity

  The State of Texas regulations require the Company's wholly owned
subsidiary, Jacksonville Savings Bank, SSB ("the Bank") to maintain liquidity
in an amount not less than 10% of an amount equal to its average daily
deposits for the most recently completed calendar quarter in cash and readily
marketable  investments.  For the quarter ended March 31, 2002 the Bank's
liquidity was $123.6 million with a liquidity ratio of 41.5%.

  The Company is subject to borrowing limitations with respect to the amount
of advances it may receive from the Federal Home Loan Bank of Dallas.  At
March 31, 2002, outstanding borrowings from the Federal Home Loan Bank of
Dallas totaled $ 36.4 million.  The Company's borrowing limit with the Federal
Home Loan Bank is $142.6 million and is based upon the amount of stock
ownership and available collateral held by the Company.  The Federal Home Loan
Bank of Dallas

                                   -15-



is an important source of liquidity to the Company, and the ability to tap
into that source is not without limits.

Regulatory Capital Requirements

  The Bank is required to maintain specified amounts of capital pursuant to
the Financial Institutions Reform, Recovery, and Enforcement Act of 1989
("FIRREA") and regulations promulgated by the FDIC thereunder.  The capital
standards generally require the maintenance of regulatory capital sufficient
to meet Tier 1 leveraged capital requirement, a Tier 1 risk-based capital
requirement and a total risk-based capital requirement.  At March 31, 2002,
the Bank had Tier 1 leveraged capital, Tier 1 risk-based capital and total
risk-based capital levels of 7.66%, 12.83%, 13.37%, respectively, which levels
exceed all current regulatory capital standards.  These capital levels
exceeded the minimum requirements at that date by approximately $14.4 million,
$20.7 million, and $12.6 million, respectively.

"Safe Harbor" Statement

  In addition to historical information, forward-looking statements are
contained herein that are subject to risks and uncertainties that could cause
actual results to differ materially from those reflected in the forward-
looking statements.  Factors that could cause future results to vary from
current expectations, include, but are not limited to, the impact of economic
conditions (both generally and more specifically in the markets in which
Jacksonville operates), the impact of competition for Jacksonville's customers
from other providers of financial services, the impact of government
legislation and regulation (which changes from time to time and over which
Jacksonville has no control), and other risks detailed in this Form 10-Q and
in Jacksonville's other Securities and Exchange Commission filings.  Readers
are cautioned not to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date hereof.  Jacksonville
undertakes no obligation to publicly revise these forward-looking statements,
to reflect events or circumstances that arise after the date hereof.  Readers
should carefully review the risk factors described in other documents
Jacksonville files from time to time with the Securities and Exchange
Commission.


     Item 3., Quantitative and Qualitative Disclosures about Market Risk

  The Bank's interest rate risk and asset-liability management are the
responsibility of the Interest Rate Risk Committee which reports to the Board
of Directors and is comprised of members of the Bank's senior management.  The
Committee is actively involved in formulating the economic projections used by
the Bank in its planning and budgeting process and establishes policies which
monitor and coordinate the Bank's sources, uses and pricing of funds.

  Interest rate risk, including mortgage prepayment risk, is the most
significant non-credit related risk to which the Bank is exposed.  Net
interest income, the Bank's primary source of revenue, is affected by changes
in interest rates as well as fluctuations in the level and duration of assets
and liabilities on the Bank's balance sheet.

                                    -16-



  Interest rate risk can be defined as the exposure of the Bank's net
interest income or financial position to adverse movements in interest rates.
In addition to directly impacting net interest income, changes in the level of
interest rates can also affect, (i) the amount of loans originated and sold by
the institution, (ii) the ability of borrowers to repay adjustable or variable
rate loans, (iii) the average maturity of loans, which tend to increase when
new loan rates are substantially higher than rates on existing loans and
conversely, decrease when rates on new loans are substantially lower than
rates on existing loans, (iv) the value of the Bank's mortgage loans and the
resultant ability to realize gains on the sale of such assets and (v) the
carrying value of investment securities classified as available-for-sale and
the resultant adjustments to shareholder's equity.

  The primary objective of the Bank's asset-liability management is to
maximize net interest income while maintaining acceptable levels of interest
rate sensitivity.  To accomplish this the Bank monitors interest rate
sensitivity by use of a sophisticated simulation model which analyzes
resulting net interest income under various interest rate scenarios and
anticipated levels of business activity.  Complicating management's efforts to
measure interest rate risk is the uncertainty of assumptions used for the
maturity, repricing, and/or runoff characteristics of some of the Bank's
assets and liabilities.

  To cope with these uncertainties, management gives careful attention to its
assumptions.  For example, certain of the Bank's interest-bearing deposit
products (NOW accounts, savings and money market deposits) have no contractual
maturity and based on historical experience have only a fractional sensitivity
to movements in market rates. Because management believes it has some control
with respect to the extent and timing of rates paid on non-maturity deposits,
certain assumptions based on historical experience are built into the model.
Another major assumption built into the model involves the ability customers
have to prepay loans, often without penalty.  The risk of prepayment tends to
increase when interest rates fall.  Since future prepayment behavior of loan
customers is uncertain, the resultant interest rate sensitivity of loan assets
cannot be determined exactly.  The Bank utilizes market consensus prepayment
assumptions related to residential mortgages.

  The Bank uses simulation analysis to measure the sensitivity of net
interest income over a specified time period (generally 1 year) under various
interest-rate scenarios using the assumptions discussed above.  The Bank's
policy on interest rate risk specifies that if interest rates were to shift
immediately up or down 200 basis points, estimated net interest income should
decline by less than 20%.  Management estimates, based on its simulation
model, that an instantaneous 200 basis point increase in interest rates at
March 31, 2002, would result in a 7.4% decrease in net interest income over
the next twelve months, while a 200 basis point decrease in rates would result
in a 6.9% decrease in net interest income over the next twelve months.  It
should be emphasized that the results are highly dependent on material
assumptions such as those discussed above.  It should also be noted that the
exposure of the Bank's net interest income to gradual and/or modest changes in
interest rates is relatively small.

  Upon learning that the Bank was the successful bidder for the Carthage,
Texas branch from Jefferson Heritage Bank, the Interest Rate Risk Committee
saw the necessity of investing the $40.4 million proceeds of the pending
acquisition.  The committee felt that the greatest value for these funds would
be to invest in longer term products including C.M.O.'s, mortgage-backed
securities,

                                    -17-



mortgage loans and investment securities.  In doing so the members recognized
that this would negatively impact the Bank's net portfolio values in a rising
rate scenario, and thus adversely affect interest rate risk.  However, there
were limited options available for investing these funds at the time.

  At March 31, 2002, the Bank was within the Bank's policy limits for changes
in the market value of portfolio equity set forth in the Interest Rate Risk
Policy.  Based on the simulation model,  a 200 basis point increase in
interest rates would result in an estimated change in the market value of
portfolio equity of 41.5%.  The Bank's policy limit for a 200 basis point
increase in interest rates is currently set at 50%.

  At March 31, 2002 the Bank had $13.1 million in available-for-sale
investments and $31.6 million in mortgage-backed securities, available-for-
sale.  Management is closely monitoring the securities portfolio's and are
aware that they can take steps to sell the securities to go to shorter term
investments should market conditions dictate.




























                                    -18-





                        JACKSONVILLE BANCORP, INC.

PART II - OTHER INFORMATION

ITEM 1.   LEGAL PROCEEDINGS

     The Jacksonville Bancorp, Inc., is involved only in routine legal
     proceedings occurring in the ordinary course of business which in the
     aggregate are believed by management to be immaterial to the financial
     condition of the Bank.

ITEM 2.   CHANGES IN SECURITIES

          Not Applicable

ITEM 3.   DEFAULTS UPON SENIOR SECURITIES

          Not Applicable

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

     (a)  An Annual Meeting of Stockholders ("Annual Meeting") was held on
          January 22, 2002 at 10:00AM.

     (b)  Not Applicable

     (c)  Three matters were voted upon at the Annual Meeting.  The
          stockholders approved matters brought before the Annual Meeting.
          There were 1,816,924 shares of common stock entitled to be voted
          at the Annual Meeting.  There were no broker non-votes in
          connection with the Annual Meeting. The matters voted upon
          together with the applicable voting results were as follows:

          (1)  Proposal to elect three directors for a three-year term or
               until their successors are elected and qualified -Charles
               Broadway received votes for 1,504,767; withheld 4,500;
               abstain 0; and not voted 307,657.  W. G. Brown received
               votes for 1,504,376; withheld 4,891; abstain 0;  and not
               voted 307,657.  Jerry Hammons received votes for  1,495,967;
               withheld 13,300; abstain 0; and not voted 307,657.


          (2)  Proposal to approve the 2001 Stock Option Plan; received
               votes 1,460,469; against 39,764; abstain 9,033; not voting
               277,658.


          (3)  Proposal to ratify the appointment by the Board of Directors
               of Henry & Peters, P.C., as the Company's independent
               auditors for the fiscal year ending

                                    -19-



               September 30, 2002;  received votes for 1,502,707; with 5,400
               against; 1,160 abstaining and not voting 307,657.

     (d)  Not Applicable


ITEM 5.   OTHER INFORMATION

          Not Applicable

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

     (a)  Not Applicable
     (b)  8K dated January 18, 2002  -  Announces First Quarter Earnings
          8K dated March 21, 2002    -  Announces Declaration of Cash Dividend



























                                    -20-



                                 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.


DATE: May 13, 2002              By: /s/ Jerry Chancellor
                                    --------------------------------
                                    Jerry Chancellor, President


DATE: May 13, 2002              By: /s/ Bill W. Taylor
                                    --------------------------------
                                    Bill W. Taylor
                                    Exec. Vice President
                                    Chief Financial Officer


















                                    -21-