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         June 30, 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 August 3, 2001, the latest practicable date, 2,693,695 shares of the
registrant's common stock, $.01 par value, were issued and 1,873,235 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 June 30, 2001
                    (Unaudited)and September 30, 2000 (Audited)           3

                    Consolidated Statements of Earnings for the
                    Nine and Three Months Ended June 30, 2001
                    and 2000 (Unaudited)                                  4

                    Consolidated Statements of Cash Flows for
                    the Nine Months Ended June 30, 2001 and
                    2000 (Unaudited)                                      5

                    Consolidated Statement of Changes in
                    Stockholders' Equity for the Nine Months Ended
                    June 30, 2001 (Unaudited)                             6

                    Notes to Consolidated Financial Statements            7


Item 2.             Management's Discussion and Analysis of
                    Financial Condition and Results of Operations
                    for the Nine and Three Months Ended June 30, 2001     9


Item 3.             Quantitative and Qualitative Disclosures about
                    Market Risk                                          13


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

Item 1.             Legal Proceedings                                    14
Item 2.             Changes in Securities                                14
Item 3.             Defaults upon Senior Securities                      14
Item 4.             Submission of Matters to a Vote of Security Holders  14
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)

                                                            June 30,     September 30,
                                                          ------------   -------------
                                                              2001           2000
                                                          ------------   -------------
                                                          (Unaudited)     (Audited)

<S>                                                  <C>             <C>
ASSETS
 Cash on hand and in banks                           $        2,440  $       2,702
  Interest-bearing deposits                                   7,593          4,819
  Investment securities:
    Held-to-maturity, at cost                                 4,500          5,000
    Available-for-sale, at estimated market value            16,569         17,017
  Mortgage-backed certificates:
    Held-to-maturity, at cost                                 2,829          3,700
    Available-for-sale, at estimated market value            44,824         29,026
  Loans receivable, net                                     238,642        226,854
  Accrued interest receivable                                 2,511          2,524
  Foreclosed real estate, net                                    41            124
  Premises and equipment, net                                 4,820          4,846
  Stock in Federal Home Loan Bank of Dallas, at cost          2,585          2,156
  Investment in real estate at cost                           1,167          1,246
  Mortgage servicing rights                                     616            625
  Other assets                                                1,064            828
                                                      -------------  -------------
        Total assets                                  $     330,201  $     301,467
                                                      =============  =============
LIABILITIES
  Deposits                                            $     244,747  $     220,766
  FHLB Advances                                              44,458         41,000
  Advances from borrowers for taxes and insurance             3,046          4,074
  Accrued expenses and other liabilities                      2,271          1,465
                                                      -------------  -------------
        Total liabilities                                   294,522        267,305

DEFERRED INCOME
  Gain on sale of real estate owned                              61             73

STOCKHOLDERS' EQUITY
  Common stock, $.01 par value, 25,000,000
    shares authorized; 2,693,695 and 2,675,972                   27             27
    shares issued and 1,873,235 and 1,967,712
    shares outstanding at June 30, 2001
    and September 30, 2000, respectively
    Additional paid in capital                               22,950         22,743
    Retained earnings, substantially restricted              26,462         24,211
  Less:
    Treasury shares, at cost                                (12,684)       (10,754)
    (820,460 & 708,260 shares, respectively)
    Shares acquired by Employee Stock Ownership Plan         (1,006)        (1,056)
    Shares acquired by Management Recognition Plan              (56)          (181)
    Accumulated other comprehensive income (loss)               (75)          (901)
                                                      -------------  -------------
        Total stockholders' equity                           35,618         34,089
                                                      -------------  -------------
          Total liabilities and stockholders' equity  $     330,201  $     301,467
                                                      =============  =============
</TABLE>


                                     -3-



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

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

<S>                                   <C>        <C>         <C>        <C>
INTEREST INCOME
  Loans receivable                    $ 14,726   $ 13,806    $   4,971  $   4,735
  Mortgage-backed securities             1,997      1,794          690        584
  Investment securities                    957        825          267        283
  Other                                    371        202          137         88
                                      --------   --------    ---------  ---------
    Total interest income               18,051     16,627        6,065      5,690

INTEREST EXPENSE
  Other                                  1,981      1,631          626        575
  Deposits                               8,556      7,478        2,937      2,539
                                      --------   --------    ---------  ---------
      Total interest expense            10,537      9,109        3,563      3,114
                                      --------   --------    ---------  ---------
      Net interest income                7,514      7,518        2,502      2,576

PROVISION FOR LOSSES ON LOANS               63         51           22         18
                                      --------   --------    ---------  ---------

  Net interest income after
    provision for losses on loans        7,451      7,467        2,480      2,558

NONINTEREST INCOME
  Fees and deposit service charges       1,362      1,083          503        353
  Real estate operations, net              276         61           88          7
  Other                                    112        133           10         33
  Gain on sale of investments               42          -            -          -
                                      --------   --------    ---------  ---------
     Total noninterest income            1,792      1,277          601        393

NONINTEREST EXPENSE
  Compensation and benefits              3,117      3,029        1,049      1,005
  Occupancy and equipment                  585        545          203        192
  Insurance expense                         71         93           23         25
  Other                                  1,015      1,062          328        352
                                      --------   --------    ---------  ---------
      Total noninterest expense          4,788      4,729        1,603      1,574

INCOME BEFORE TAXES ON INCOME            4,455      4,015        1,478      1,377

TAXES ON INCOME                          1,524      1,375          501        473
                                      --------   --------    ---------  ---------
  Net earnings                        $  2,931   $  2,640    $     977  $     904
                                      ========   ========    =========  =========
EARNINGS PER SHARE
  Basic                               $   1.60   $   1.33    $    .54   $     .47
                                      ========   ========    =========  =========
  Diluted                             $   1.53   $   1.30    $    .52   $     .46
                                      ========   ========    =========  =========

</TABLE>

                                     -4-




<TABLE>
                  JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                             (DOLLARS IN THOUSANDS)
                                   Unaudited
                                                            Nine Months   Nine Months
                                                              Ended         Ended
                                                             June 30,      June 30,
                                                               2001          2000
                                                           ------------  ------------

<S>                                                         <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES
  Net income                                                $    2,931   $    2,640
  Adjustments to reconcile net income to net
   cash provided by operating activities:
     Depreciation                                                  244          220
     Amortization/Accretion of securities                            4            7
     Provision for losses on loans and real estate                  63           51
     Loans originated for sale                                 (15,429)     (14,769)
     Loans sold                                                 15,429       14,769
     Gain on sale of other real estate                            (192)         (82)
     Gain on loans sold                                              9          (28)
     Accrual of MRP awards                                         125          125
     ESOP compensation accrued                                      77           61
     Change in assets and liabilities:
       (Increase) decrease in accrued interest receivable           13          (17)
       (Increase) decrease in prepaid expenses and
         other assets                                             (236)          49
       Decrease in accrued expenses and other liabilities          805         (330)
       Decrease in deferred income                                 (12)         (70)
                                                             ----------  ----------
         Net cash provided by operating activities               3,831        2,626

CASH FLOWS FROM INVESTING ACTIVITIES
  Proceeds on maturity of investment securities                 19,257        1,830
  Purchase of investment securities                            (17,486)      (2,986)
  Net principal payments (origination) on loans                (11,640)      (9,802)
  Proceeds from sale of foreclosed real estate                      65           92
  Purchase of mortgage-backed securities                       (30,561)        (569)
  Principal paydowns on mortgage-backed securities              15,636        4,120
  Capital expenditures                                            (219)        (520)
  Purchase of stock in FHLB Dallas                                (429)        (152)
  Investment in real estate                                         79         (440)
                                                             ----------  ----------
         Net cash used in investing activities                 (25,298)      (8,427)

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase in deposits                                      23,981        3,229
  Net decrease in advances for taxes and insurance              (1,028)        (941)
  Dividends paid                                                  (680)        (733)
  Advances from FHLB                                            32,000       14,000
  Payment of FHLB advances                                     (28,542)      (7,000)
  Purchase of Treasury stock                                    (1,931)      (2,428)
  Proceeds from exercise of stock options                          179            -
                                                             ----------  ----------
         Net cash provided by (used in) financing
           activities                                           23,979        6,127
                                                            ----------   ----------
         Net increase in cash and cash equivalents               2,512          326
                                                            ----------   ----------
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD                 7,521        6,568
                                                            ----------   ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                  $   10,033   $    6,894
                                                            ==========   ==========

</TABLE>

                                     -5-




                   JACKSONVILLE BANCORP, INC. AND SUBSIDIARIES
           CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
                    FOR THE NINE MONTHS ENDED JUNE 30, 2001
                            (DOLLARS IN THOUSANDS)
                                  Unaudited

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

    Net earnings                                         2,931
    Other comprehensive income - net change in
    unrealized gain on securities available for sale       826
                                                         -----
  Comprehensive income                                                   3,757
  Accrual of MRP awards                                                    125
  Accrual of ESOP compensation                                              78
  Cash dividends                                                          (680)
  Treasury shares purchased                                             (1,930)
  Proceeds from exercise of stock  options                                 179
                                                                   -----------
Balance at June 30, 2001                                           $    35,618
                                                                   ===========






















                                     -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 nine-month and three-month periods ended
  June 30, 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 nine and three month periods ended June 30,
  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:
                               Nine Months Ended         Three Months Ended
                                   June 30,                   June 30,
                               2001        2000          2001         2000
                              ------      ------        ------       ------
  Basic EPS - Average
   shares outstanding       1,832,990    1,980,380    1,796,194    1,920,295

  Effect of dilutive
    stock options              85,881       51,039       95,241       38,751
                            ---------    ---------    ---------    ---------
  Diluted EPS - Average
   shares outstanding       1,918,871    2,031,419    1,891,435    1,959,046
                            =========    =========    =========    =========

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 is currently evaluating the provision of
these Statements which will impact the accounting for any future business
combinations including the proposed acquisition of a Carthage, Texas branch
from Jefferson Heritage Bank, Denton, Texas.  Jacksonville anticipates
adopting statement 141 and 142 effective with the completion of this
acquisition.

















                                     -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 June
30, 2001.

    At June 30, 2001, the assets of Jacksonville totaled $330.2 million
compared to $301.5 million at September 30, 2000, an increase of $28.7 million
or 9.5%. This increase was primarily due to an increase in interest bearing
deposits of $2.8 million; an increase in mortgage-backed certificates of $14.9
million; an increase in loans receivable net of $11.8 million; an increase in
stock in Federal Home Loan Bank of $429,000; and an increase in other assets
of $236,000.  These increases were primarily offset by a decrease in
investment securities of $948,000 and a decrease in cash on hand of $262,000.

    Cash on hand declined during the period ending June  30, 2001 to $2.4
million from the $2.7 million reported at September 30, 2000, while interest-
bearing deposits increased to $7.6 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 $21.1 million at June 30, 2001.  The $940,000 decrease
was primarily the result of the net difference of securities called or matured
during the period and securities purchased during the same time.  Some of
these funds were also used to originate and portfolio mortgage and consumer
loans.

    Mortgage-backed securities, held-to-maturity and available-for-sale,
increased from $32.7 million at September 30, 2000 to $47.7 million at June
30, 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.  Some funds from deposit
growth were also used to buy mortgage-backed certificates.

    Loans receivable, net increased by $11.8 million from $226.9 million at
September 30, 2000 to $238.6 million at June 30, 2001. The increase was
primarily funded from an increase in deposits during the period.  While loans
receivable net increased by $11.8 million , Jacksonville also originated $15.4
million in loans which were sold to the secondary market.

    Stock in Federal Home Bank increased from $2.2 million at September 30,
2000 to $2.6 million at June 30, 2001 while other assets increased from
$828,000 to $1.1 million for the comparable periods primarily as a result of
reclassifying to other assets the cash value of life insurance policies
totaling $733,000.  Previously this amount had been netted against deferred
compensation liability.  This increase was offset by a decrease in deferred
federal income tax in the amount of $320,000 and a decrease in franchise tax
refund receivable in the amount of $161,000.

    All remaining asset classifications for June 30, 2001 remained
relatively comparable to those amounts disclosed at September 30, 2000.

                                     -9-



    At June 30, 2001 liabilities of the Company totaled $294.5 million
compared to $267.3 million at September 30, 2000, a 10.2% increase.  Deposits
grew for the period ended June 30, 2001 from $220.8 million at September 30,
2000 to $244.7 million at June 30, 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 $44.5 million for the comparable
periods, primarily as a result of advances to fund wholesale growth strategy
less amounts paid to principal on the advances during the period.

    Advances from borrowers for taxes and insurance decreased from $4.1
million to $3.0 million for the period ended June 30, 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 increased from $1.5 million at
September 30, 2000 to  $2.3 million at June 30, 2001 primarily as a result of
reclassifying the cash value of life insurance policies of $733,000 previously
netted against deferred compensation liability; an increase in accrued
interest of $154,000 offset by a decrease in employee profit sharing of
$74,000.

    Deferred income, gain on sale of real estate owned, decreased from
$73,000 at September 30, 2000 to $61,000 at June 30, 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 $1.5 million from
$34.1 million to $35.6 million.  Retained earnings increased from $24.2
million at September 30, 2000 to $26.5 million at June 30, 2001 primarily as a
result of net income for the period after dividends. Treasury shares increased
for the period from $10.8 million to $12.7 million due to the repurchase of
112,200 shares during the period. During the period 17,723 option shares were
exercised.

    Shares acquired by the Employee Stock Ownership Plan decreased by
$50,000 due to the release of ESOP shares during the period ended June  30,
2001.  Shares acquired by the Management Recognition Plan decreased by
$125,000 from $181,000 at September 30, 2000 to $56,000 at June 30, 2001, due
primarily to accrual of Management Recognition Plan awards.

    Net unrealized loss on securities, available-for-sale, decreased from
$901,000 at September 30, 2000 to  $75,000 at June 30, 2001 which reflects an
improvement in the market value of investment.   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 nine months ended June 30,
2001 and 2000.

    Net income for the three months ended June 30, 2001 totaled $977,000
compared to $904,000 for the three months ended June 30, 2000.  The increase
of $73,000 was primarily due to an increase in total interest income on loans
and mortgage backed securities of $342,000; an increase in fee income of
$150,000, and an increased income from real estate operations of $81,000.
These amounts were primarily offset by an increase in deposit interest expense
of $398,000 and of compensation expense of $44,000.

    Net income for the nine months ended June 30, 2001 was $2.9 million
compared to $2.6 million for the same period in 2000, an increase of 11.02%.
The increase was primarily due to a $1.1 million increase in interest income
on loans and mortgage backed securities, a $279,000 increase in fee income,

                                     -10-



and a $215,000 increased income from real estate operations.   These amounts
were primarily offset by a $1.4 million increase in total interest expense and
a $59,000 increase in non-interest expense.

Net Interest Income

    The Company's net interest income before provisions for loan losses was
$2.5 million for the three months ended June 30, 2001, compared to $2.6
million for the comparable period in 2000.  Total interest income increased
from $5.7 million at June 30, 2000 to $6.1 million at June 30, 2001 while
total interest expense increased from $3.1 million to $3.6 million for the
comparable periods.  The decrease in net interest income was primarily due to
escalated contractual interest rates paid on deposits and Federal Home Loan
Bank advances in previous quarters which had not matured as interest rates
began their recent decline.

    For the nine months ended June 30, 2001 net interest income before
provision for loan losses remained at $7.5 million, the same amount as
reported on June 30, 2000.  Total interest income for the nine month period
ended June 30, 2001 was $18.1 million compared to $16.6 million at June 30,
2000.  Total interest expense increased to $10.5 million from $9.1 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 from $18,000 at
June 30, 2000 to $22,000 at June 30, 2001.   For the nine month period ended
June 30, 2001 the provision was $63,000 compared to $51,000 at June 30, 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 $208,000 from $393,000 for the three
month period ended June 30, 2000 to $601,000 for the comparable period in
2001.  The increase was primarily due to an increase in fees and deposit
service charges of $150,000; an increase in real estate operations, net of
$81,000 which included gains on sale of repossessed assets and gains on lot
sales in the  subsidiary's subdivision development; an increase of $3,000 in
other noninterest income; offset by a decrease in mortgage servicing assets of
$26,000.

    For the nine month period, non-interest income increased from $1.3
million at June 30, 2000 to $1.8 million at June 30, 2001 primarily due to an
increase in fees and deposit service charges of $279,000; an increase in real
estate operations, net of $215,000; an increase of $42,000 in gain on sale of
investment securities; offset by a decrease of $13,000 in mortgage servicing
assets and a decrease in other noninterest income of $8,000.

Non-Interest Expense

    For the three months ended June 30,  2001  non-interest expense
increased to $1.60 million from $1.57 million for the three months ended June
30, 2000.  Compensation and benefits increased $44,000, occupancy and
equipment increased $11,000; offset by a decrease in other non-interest
expenses of $24,000, and a decrease in insurance expense of $2,000.

                                     -11-



    Non-interest expenses increased by $59,000 for the nine month period
from $4.73 million at June 30, 2000 to $4.79 million at June 30, 2001.  This
increase was primarily due to an increase in compensation and benefits of
$88,000; an increase of $40,000 in occupancy and equipment, offset by a
reduction in insurance expense of $22,000 and a reduction in other non-
interest expenses of $47,000.

Taxes

    The provision for income tax amounted to $501,000 and $1.5 million for
the three and nine months ended June 30, 2001 respectively, compared to
$473,000 and $1.4 million for the three and nine months ended June 30, 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 June 30, 2001 the Bank's
liquidity was $81.3  million with a liquidity ratio of 35.1%.

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 June 30, 2001, the
Bank had Tier 1 leveraged capital, Tier 1 risk-based capital and total risk-
based capital levels of 9.99%, 16.14%,16.76%, respectively, which levels
exceed all current regulatory capital standards.  These capital levels
exceeded the minimum requirements at that date by approximately $19.4 million,
$24.3 million, and $17.5 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.

                                     -12-



     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.






















                                     -13-



                          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

               Not Applicable


ITEM 5.   OTHER INFORMATION

               Not Applicable


ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K
          (a)  Not Applicable
          (b)  8K dated April 26, 2001 - Announces Second Quarter Earnings
               8K dated May 08, 2001   - Announces Stock Repurchase
               8K dated June 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: August 6, 2001           By: /s/ Jerry Chancellor
                                   -----------------------------------
                                       Jerry Chancellor, President


DATE: August 6, 2001           By: /s/ Bill W. Taylor
                                   -----------------------------------
                                       Bill W. Taylor
                                       Exec. Vice President
                                       Chief Financial Officer












                                     -15-