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, 2001
                              ---------------------------------------

                                     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 10, 2001, the latest practicable date, 2,685,041 shares of the
registrant's common stock, $.01 par value, were issued and 1,885,581 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, 2001
                    (Unaudited)and September 30, 2000(Audited)            3

                    Consolidated Statements of Earnings for the
                    Six and Three Months Ended March 31, 2001
                    and 2000 (Unaudited)                                  4

                    Consolidated Statements of Cash Flows for
                    the Six Months Ended March 31, 2001 and
                    2000 (Unaudited)                                      5

                    Consolidated Statement of Changes in
                    Stockholders' Equity for the Six Months Ended
                    March 31, 2001 (Unaudited)                            6

                    Notes to Consolidated Financial Statements            7

Item 2.             Management's Discussion and Analysis of               9
                    Financial Condition and Results of Operations
                    for the Six and Three Months Ended March 31, 2001

Item 3.             Quantitative and Qualitative Disclosures about
                    Market Risk                                           12

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

Item 1.             Legal Proceedings                                     13
Item 2.             Changes in Securities                                 13
Item 3.             Defaults upon Senior Securities                       13
Item 4.             Submission of Matters to a Vote of Security Holders   13
Item 5.             Other Information                                     14
Item 6.             Exhibits and Reports on Form 8-K                      14
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,
                                                          -----------    -------------
                                                             2001            2000
                                                          -----------    -------------
                                                          (Unaudited)     (Audited)

                                ASSETS

<S>                                                       <C>                <C>
  Cash on hand and in banks                               $     2,773    $       2,702
  Interest-bearing deposits                                     8,597            4,819
  Investment securities:
    Held-to-maturity, at cost                                   2,500            5,000
    Available-for-sale, at estimated market value              14,547           17,017
  Mortgage-backed certificates:
    Held-to-maturity, at cost                                   3,122            3,700
    Available-for-sale, at estimated market value              43,839           29,026
  Loans receivable, net                                       230,314          226,854
  Accrued interest receivable                                   2,452            2,524
  Foreclosed real estate, net                                       0              124
  Premises and equipment, net                                   4,768            4,846
  Stock in Federal Home Loan Bank of Dallas, at cost            2,550            2,156
  Investment in real estate at cost                             1,214            1,246
  Mortgage servicing rights                                       642              625
  Other assets                                                    194              828
                                                          -----------    -------------
        Total assets                                      $   317,512    $     301,467
                                                          ===========    =============
LIABILITIES
  Deposits                                                $   232,327    $     220,766
  FHLB Advances                                                46,785           41,000
  Advances from borrowers for taxes and insurance               1,953            4,074
  Accrued expenses and other liabilities                        1,244            1,465
                                                          -----------    -------------
        Total liabilities                                     282,309          267,305

DEFERRED INCOME
  Gain on sale of real estate owned                                54               73

STOCKHOLDERS' EQUITY
  Common stock, $.01 par value, 25,000,000
    shares authorized; 2,675,972 shares issued;                    27               27
    1,886,581 and 1,967,712 shares outstanding at
    March 31, 2001 and September 30, 2000, respectively
    Additional paid in capital                                 22,855           22,743
    Retained earnings, substantially restricted                25,709           24,211
  Less:
    Treasury shares, at cost                                  (12,268)         (10,754)
    (798,460 & 708,260 shares, respectively)
    Shares acquired by Employee Stock Ownership Plan           (1,023)          (1,056)
    Shares acquired by Management Recognition Plan                (97)            (181)
    Accumulated other comprehensive income (loss)                 (54)            (901)
                                                          -----------    -------------

        Total stockholders' equity                             35,149           34,089
                                                          -----------    -------------
          Total liabilities and stockholders' equity      $   317,512    $     301,467
                                                          ===========    =============

</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,
                                      -------------------    --------------------
                                        2001       2000         2001       2000
                                      --------   --------    ---------   --------

<S>                                   <C>        <C>        <C>          <C>
INTEREST INCOME
  Loans receivable                    $  9,755   $  9,071    $   4,832   $  4,502
  Mortgage-backed securities             1,307      1,210          748        597
  Investment securities                    690        542          336        264
  Other                                    234        114          109         59
                                      --------   --------    ---------   --------
    Total interest income               11,986     10,937        6,025      5,422

INTEREST EXPENSE
  Other                                  1,355      1,056          714        556
  Deposits                               5,619      4,939        2,815      2,466
                                      --------   --------    ---------   --------
      Total interest expense             6,974      5,995        3,529      3,022
                                      --------   --------    ---------   --------
      Net interest income                5,012      4,942        2,496      2,400

PROVISION FOR LOSSES ON LOANS               41         33           23         18
                                      --------   --------    ---------   --------

  Net interest income after
    provision for losses on loans        4,971      4,909        2,473      2,382

NONINTEREST INCOME
  Fees and deposit service charges         859        730          473        342
  Real estate operations, net              188         54          198          6
  Other                                     89         74           48         38
  Mortgage servicing assets                 13         26            3         10
  Gain on sale of investment securities     42          -           42          -
                                      --------   --------    ---------   --------
     Total noninterest income            1,191        884          764        396

NONINTEREST EXPENSE
  Compensation and benefits              2,068      2,024        1,044        995
  Occupancy and equipment                  382        353          208        191
  Insurance expense                         48         68           24         24
  Other                                    687        710          357        349
                                      --------   --------    ---------   --------
      Total noninterest expense          3,185      3,155        1,633      1,559

INCOME BEFORE TAXES ON INCOME            2,977      2,638        1,604      1,219

TAXES ON INCOME                          1,023        902          551        429
                                      --------   --------    ---------   --------

  Net earnings                        $  1,954   $  1,736     $  1,053   $    790
                                      ========   ========    =========   ========

EARNINGS PER SHARE
  Basic                               $   1.05   $    .87     $    .57   $    .40
                                      ========   ========    =========   ========

  Diluted                             $   1.01   $    .84     $    .55   $    .39
                                      ========   ========    =========   ========

</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,
                                                              2001          2000
                                                          ------------  -----------

<S>                                                         <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                $    1,954    $   1,736
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                                  161          145
     Amortization/Accretion of securities                            4            5
     Provision for losses on loans and real estate                  41           33
     Loans originated for sale                                 (10,399)     (10,823)
     Loans sold                                                 10,399       10,823
     Gain on sale of other real estate                            (131)         (72)
     Gain on loans sold                                            (16)         (26)
     Accrual of MRP awards                                          84           84
     ESOP compensation accrued                                      50           41
     Change in assets and liabilities:
       (Increase) decrease in accrued interest receivable           72          (35)
       (Increase) decrease in prepaid expenses and
         other assets                                              634          (36)
      Decrease in accrued expenses and other liabilities          (221)        (389)
       Decrease in deferred income                                 (19)         (68)
                                                          ------------  -----------
         Net cash provided by operating activities               2,613        1,418

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds on maturity of investment securities                 14,804        1,287
  Purchase of investment securities                             (8,990)        (500)
  Net principal payments (origination) on loans                 (3,297)      (4,500)
  Proceeds from sale of foreclosed real estate                      50           92
  Purchase of mortgage-backed securities                       (17,000)        (569)
  Principal paydowns on mortgage-backed securities               2,766        3,094
  Capital expenditures                                             (85)        (429)
  Purchase of stock in FHLB Dallas                                (394)         (87)
  Investment in real estate                                         32         (353)
                                                          ------------  -----------
         Net cash used in investing activities                 (12,114)      (1,974)

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in deposits                                      11,560          557
  Net decrease in advances for taxes and insurance              (2,120)      (2,001)
  Proceeds from Note payable                                         -            -
  Dividends paid                                                  (456)        (493)
  Advances from FHLB                                            32,000       10,000
  Payment of FHLB advances                                     (26,215)      (6,000)
  Purchase of Treasury stock                                    (1,514)      (2,168)
  Proceeds from exercise of stock options                           95            -
                                                          ------------  -----------
         Net cash provided by (used in) financing
           activities                                           13,350         (105)
                                                          ------------  -----------
         Net increase in cash and cash equivalents               3,849         (661)
                                                          ------------  -----------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                 7,521        6,568
                                                          ------------  -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                  $   11,370    $   5,907
                                                          ============  ===========

</TABLE>

                                         -5-




                  JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
          CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE SIX MONTHS ENDED March 31, 2001
                           (DOLLARS IN THOUSANDS)
                                  Unaudited


                                                                    Total
                                                                Stockholders'
                                                                    Equity
                                                                -------------
Balance at September 30, 2000                                   $      34,089

    Net earnings                                       1,954
    Other comprehensive income - net change in
    unrealized gain on securities available-for-sale     847
                                                       -----
  Comprehensive income                                                  2,801
  Accrual of MRP awards                                                    84
  Accrual of ESOP compensation                                             50
  Cash dividends                                                         (456)
  Treasury shares purchased                                            (1,514)
  Proceeds from Exercise of Stock Options                                  95
                                                                -------------
Balance at March 31, 2001                                       $      35,149
                                                                =============
























                                     -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, 2001 and 2000 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,
  2001 and 2000 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,
                               2001         2000         2001         2000
                            ---------    ---------    ---------    ---------
  Basic EPS - Average
   shares outstanding       1,853,546    2,005,149    1,838,623    1,971,900

  Effect of dilutive
   stock options               80,334       56,581       91,805       46,064
                            ---------    ---------    ---------    ---------
  Diluted EPS - Average
   shares outstanding       1,933,880    2,061,730    1,930,428    2,017,964
                            =========    =========    =========    =========

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

    SFAS No. 133  "Accounting for Derivative Instruments and Hedging
Activities" was adopted by FASB on June 30, 1998.  This Statement is effective
for all fiscal quarters of fiscal years beginning after June 15, 1999.  Among
other things, it supersedes FASB Statements No. 80, "Accounting for Futures
Contracts," No. 105, "Disclosure of Information about Financial Instruments
with Off-Balance-Sheet Risk and Financial Instruments with Concentrations of
Credit Risk," and No. 119, "Disclosure about Derivative Financial Instruments
and Fair Value of Financial Instruments." It amends FASB Statement NO. 107,
"Disclosures about Fair Value of Financial Instruments, " to include in
Statement 107 the disclosure provisions about concentrations of credit risk
from Statement 105.  The Statement establishes accounting and reporting
standards for derivative instruments, including certain derivative instruments
embedded in other contracts, (collectively referred to as derivatives) and for
hedging activities.  It requires that an entity recognize all derivatives as
either assets or liabilities in the statement of financial position and
measure those instruments at fair value.  If certain conditions are met, a
derivative may be specifically designated as (a) a hedge of the exposure to
changes in the fair value of a recognized asset or liability or an
unrecognized firm commitment, (b) a hedge of the exposure to variable cash
flows of a forecasted transaction, or (c) a hedge of the foreign currency
exposure of a net investment in a foreign operation, an unrecognized firm
commitment, an available-for-sale security, or a foreign-currency-denominated
forecasted transactions.  This Statement precludes designating a nonderivative
financial instrument as a hedge of an asset, liability, unrecognized firm
commitment, or forecasted transaction except that a nonderivative instrument
denominated in a foreign currency may be designated as a hedge of the foreign
currency exposure of an unrecognized firm commitment denominated in a foreign
currency or a net investment in a foreign operation.

    Statement No. 137 deferred the effective date of Statement No. 133 to
all fiscal years beginning after June 15, 2000.  The Statement may not be
applied retroactively to financial statements of prior periods.   The
Statement's adoption effective October 1, 2000 did not have a material impact
on the Corporation's financial condition or result of operations.















                                     -8-




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


DISCUSSION OF CHANGES IN FINANCIAL CONDITION FROM SEPTEMBER 30, 2000 TO MARCH
31, 2001.

    At March 31, 2001, the assets of Jacksonville totaled $317.5 million
compared to $301.5 million at September 30, 2000, an increase of $16.0
million. This increase was primarily due to an increase in interest bearing
deposits of $3.8 million; an increase in mortgage-backed certificates of $14.2
million; an increase in stock in Federal Home Loan Bank of $394,000; and an
increase in loans receivable net of $3.5 million.  These increases were
primarily offset by a decrease in investment securities of $5.0 million and a
decrease in other assets of $634,000.

    Cash on hand declined during the period ending March 31, 2001 to $2.8
million from the $2.7 million reported at September 30, 2000, while interest-
bearing deposits increased $3.8 million during the period primarily in
deposits at Federal Home Loan Bank, and deposits in other insured financial
institutions.

    The investment securities portfolios, held-to-maturity and available-
for-sale, decreased  during the period from a total of $22.0 million at
September 30, 2000 to $17.0 million at March 31, 2001.  The $5.0 million
decrease was primarily the result of callable securities being called during
the period as interest rates declined.

    Mortgage-backed securities, held-to-maturity and available-for-sale,
increased from $32.7 million at September 30, 2000 to $47.0 million at March
31, 2001, primarily as a result of the Bank continuing a wholesale growth
strategy involving leveraged investing wherein Federal Home Loan Bank advances
were used to purchase mortgage-backed certificates and proceeds from some
called investment securities were also used to buy mortgage-backed
certificates.

    Loans receivable, net increased by $3.5 million from $226.9 million at
September 30, 2000 to $230.3 million at March 31, 2001. The increase was
primarily funded from an increase in deposits during the period and from
maturing or called investment securities.  While loans receivable net
increased by $3.5 million , Jacksonville also originated $10.4 million in
loans which were sold to the secondary market.

    All remaining asset classifications for March 31, 2001 remained
relatively comparable to those numbers disclosed at September 30, 2000 with
the exception of other assets which reduced from $828,000 to $194,000 for the
period primarily as a result of the decrease in the deferred tax asset related
to unrealized losses on available-for-sale securities.  Foreclosed real
estate, decreased $124,000 during the period leaving a zero balance.

    At March 31, 2001 liabilities of the Company totaled $282.3 million
compared to $267.3 million at September 30, 2000.  Deposits grew for the
period ended March 31, 2001 from $220.8 million at September 30, 2000 to
$232.3 million at March 31, 2001, principally as a result of interest credited
to accounts and growth in savings deposits for the period.  FHLB advances
increased from $41.0 million to $46.8 million for the comparable periods,
primarily as a result of the advance borrowed for the wholesale growth
strategy less amounts paid to principal on the advances during the period.


                                     -9-



    Advances from borrowers for taxes and insurance decreased from $4.1
million to $2.0 million for the period ended March 31, 2001.  This decrease is
the result of the payment from customer's escrow accounts of all amounts due
to taxing agencies for the year 2000.

    Accrued expenses and other liabilities decreased from $1.5 million at
September 30, 2000 to  $1.2 million at March 31, 2001.

    Deferred income, gain on sale of real estate owned, decreased from
$73,000 at September 30, 2000 to $54,000 at March 31, 2001.  This decrease was
primarily the result of the recognition of deferred profits from the sale of
real estate owned as payments were received on the related loans.

    Stockholder's equity increased during the period by $1.1 million from
$34.1 million to $35.1 million.  Retained earnings increased from $24.2
million at September 30, 2000 to $25.7 million at March 31, 2001 primarily as
a result of net income for the period after dividends. Treasury shares
increased for the period from $10.8 million to $12.3 million due to the
repurchase of 90,200 shares during the period offset by the issuance of 9,069
option shares.

    Shares acquired by the Employee Stock Ownership Plan decreased by
$33,000 due to the release of ESOP shares during the period ended March 31,
2001.  Shares acquired by the Management Recognition Plan decreased by $84,000
from $181,000 at September 30, 2000 to $97,000 at March 31, 2001, due
primarily to accrual of Management Recognition Plan awards.

    Net unrealized loss on securities, available-for-sale, decreased from a
$901,000 unrealized loss at September 30, 2000 to a $54,000 unrealized loss at
March 31, 2001 which reflects an improvement in investment performance.  These
losses were based on "marked-to-market" values of the portfolios at the
respective periods in accordance with FASB 115.


COMPARISON OF OPERATING RESULTS FOR THE THREE AND SIX MONTHS ENDED MARCH 31,
2001 AND 2000.

    Net income for the three months ended March 31, 2001 totaled $1.05
million compared to $790,000 for the three months ended March 31, 2000.  The
increase of $263,000 was primarily due to an increase in total interest income
of $603,000; an increase in total non-interest income of $368,000; offset by
an increase in provision for losses on loans of $5,000; an increase in total
interest expense of $507,000; an increase in non-interest expense of $74,000
and an increase in federal income taxes of $122,000.

    Non-interest income increased $368,000 from $396,000 for the quarter
ended March 31, 2000 to $764,000 for the March 31, 2001 quarter.

    Non-interest expense increased from $1.56 million for the quarter ended
March 31, 2000 to $1.63 million for the March 31, 2001 period while federal
income taxes  increased by $122,000 at March 31, 2001 and amounted to $551,000
compared to $429,000 for the comparable period in 2000.

    Net income for the six months ended March 31, 2001 was $1.95 million
compared to $1.74 million for the same period in 2000, an increase of 12.6%.
Net interest income after provision for losses on loans increased $62,000 from
$4.91 million at March 31, 2000 to $4.97 million at March 31, 2001.  Non-
interest income increased from $884,000 for the six months ended March 31,
2000 to $1.19 million at March 31, 2001, a 34.7% increase, while non-interest
expenses increased from $3.16 million to $3.19 million for the comparable
periods, a 1% increase.


                                     -10-



NET INTEREST INCOME

    The Company's net interest income before provisions for loan losses was
$2.5 million for the three months ended March 31, 2001, compared to $2.4
million for the comparable period in 2000.  Total interest income increased
from $5.4 million at March 31, 2000 to $6.0 million at March 31, 2001 while
total interest expense increased from $3.0 million to $3.5 million for the
comparable periods.

    For the six months ended March 31, 2001 net interest income before
provision for loan losses increased by $ 70,000 to $5.0 million from the
comparable period ended March 31, 2000.  Total interest income for the six
month period ended March 31, 2001 was $12.0 million compared to $10.9 million
at March 31, 2000.  Total interest expense increased to $7.0 million from $6.0
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 $5,000 from
$18,000 at March 31, 2000 to $23,000 at March 31, 2001.   For the six month
period ended March 31, 2001 the provision was $41,000 compared to $33,000 at
March 31, 2000.

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 increased $368,000 from $396,000 for the three
month period ended March 31, 2000 to $764,000 for the comparable period in
2001.  The increase was primarily due to an increase in fees and deposit
service charges of $131,000; an increase in real estate operations, net of
$192,000 which included gains on sale of R.E.O. and gains on lot sales in the
subsidiary's subdivision development; an increase of $10,000 in other
noninterest income; an increase of $42,000 in gain on sale of investment
securities; offset by a decrease in mortgage servicing assets of $7,000.

    For the six month period, non-interest income increased from $884,000 at
March 31, 2000 to $1.2 million at March 31, 2001 primarily due to an increase
in fees and deposit service charges of $129,000; an increase in real estate
operations, net of $134,000; an increase in other non-interest income of
$15,000; an increase of $42,000 in gain on sale of investment securities;
offset by a decrease of $13,000 in mortgage servicing assets.

NON-INTEREST EXPENSE

    For the three months ended March 31,  2001  non-interest expense
increased to $1.63 million from $1.56 million for the three months ended March
31, 2000.  Compensation and benefits increased $49,000, occupancy and
equipment increased $17,000,  other non-interest expenses increased $8,000,
while insurance expense remained at $24,000.

    Non-interest expenses increased by $30,000 for the six month period from
$3.16 million at March 31, 2000 to $3.19 million at March 31, 2001.  This
increase was primarily due to an increase in compensation and benefits of
$44,000; an increase of $29,000 in occupancy and equipment, offset by a
reduction in insurance expense of $20,000 and a reduction in other non-
interest expenses of $23,000.


                                     -11-



TAXES

    The provision for income tax amounted to $551,000 and $1.02 million for
the three and six months ended March 31, 2001 respectively, compared to
$429,000 and $902,000 for the three and six months ended March 31, 2000,
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, 2001 the Bank's
liquidity was $77.9  million with a liquidity ratio of 34.2%.

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 31,2001, the
Bank had Tier 1 leveraged capital, Tier 1 risk-based capital and total risk-
based capital levels of 10.33%, 16.96%,17.60%, respectively, which levels
exceed all current regulatory capital standards.  These capital levels
exceeded the minimum requirements at that date by approximately $19.9 million,
$24.9 million, and $18.4 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

    Quantitative and qualitative disclosures about market risk are presented
at September 30, 2000 in Item 7A of the Company's Annual Report on Form 10-K,
filed with the SEC on December 22, 2000.  Management believes there have been
no material changes in the Company's market risk since September 30, 2000.


                                     -12-




                          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 23, 2001 at 10:00AM.

          (b)  Not Applicable

          (c)  Two matters were voted upon at the Annual Meeting.  The
               stockholders approved matters brought before the Annual
               Meeting.  There were 1,952,712 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 two directors for a three-year term
                    or until their successors are elected and qualified -
                    Ray Beall received votes for 1,574,911; withheld
                    4,300; abstain 0; and not voted 373,501. Robert Brown
                    received votes for 1,579,944; withheld 51,500; abstain
                    0;  and not voted 321,268.

               (2)  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
                    September 30, 2001; received votes for 1,578,460; with
                    0 against; 751 abstaining and not voting 373,501.

          (d)  Not Applicable


                                     -13-



ITEM 5.   OTHER INFORMATION

          Not Applicable

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
          (a)  Not Applicable
          (b)  8K dated January 18, 2001 - Announces First Quarter Earnings
               8K dated March 13, 2001   - Announces Declaration of Cash
                                           Dividend






























                                     -14-




                                  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 11, 2001                             By: /s/ Jerry Chancellor
                                                  ----------------------------
                                                  Jerry Chancellor, President


DATE: May 11, 2001                             By: /s/ Bill W. Taylor
                                                  ----------------------------
                                                  Bill W. Taylor
                                                  Exec. Vice President
                                                  Chief Financial Officer

















                                     -15-