22
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[x] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 [NO FEE REQUIRED, EFFECTIVE OCTOBER 7, 1996].
For the fiscal year ended December 31, 2008
--------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED].
For the transition period from _______________ to ______________________
Commission File Number 000-49792
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Jacksonville Savings Bank 401(k) Profit Sharing Plan
B: Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
Jacksonville Bancorp, Inc.
1211 West Morton Road
Jacksonville, IL 62650
Jacksonville Savings Bank 401(k)D]
Profit Sharing Plan
EIN 37-1323900 PN 003
Accountants' Report and Financial Statements
December 31, 2008 and 2007
BKD LLP
CPAs & Advisors
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
December 31, 2008 and 2007
Contents
Report of Independent Registered Public Accounting Firm....................1
Financial Statements
Statements of Net Assets Available for Benefits.......................2
Statements of Changes in Net Assets Available for Benefits............3
Notes to Financial Statements.........................................4
Supplemental Schedule
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)........11
Report of Independent Registered Public Accounting Firm
Trustees
Jacksonville Savings Bank 401(k) Profit Sharing Plan
Jacksonville, Illinois
We have audited the accompanying statements of net assets available for benefits
of Jacksonville Savings Bank 401(k) Profit Sharing Plan as of December 31, 2008
and 2007, and the related statements of changes in net assets available for
benefits for the years then ended. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Plan is not required to have,
nor were we engaged to perform, an audit of its internal control over financial
reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing auditing procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Plan's internal control over financial reporting.
Accordingly, we express no opinion. Our audits also included examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of Jacksonville
Savings Bank 401(k) Profit Sharing Plan as of December 31, 2008 and 2007, and
the changes in its net assets available for benefits for the years then ended,
in conformity with accounting principles generally accepted in the United States
of America.
As discussed in Note 4, in 2008 the Plan changed its method of accounting for
fair value measurements in accordance with Statement of Financial Accounting
Standards No. 157.
The accompanying supplemental schedule of assets (held at end of year) is
presented for the purpose of additional analysis and is not a required part of
the basic financial statements, but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedule
is the responsibility of the Plan's management. The supplemental schedule has
been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated, in all material
respects, in relation to the basic financial statements taken as a whole.
/sig/ BKD, LLP
Decatur, Illinois
June 8, 2009
Federal Employer Identification Number: 44-0160260
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Statements of Net Assets Available for Benefits
December 31, 2008 and 2007
2008 2007
---------------------------------
Assets
Investments, at fair value $ 4,950,430 $ 6,014,968
Receivables
Employer's contribution 552 -
----------- -----------
Total assets 4,950,982 6,014,968
Liabilities
Accounts payable 4 17
----------- -----------
Net assets available for benefits $ 4,950,978 $ 6,014,951
=========== ===========
See Notes to Financial Statements 2
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Statements of Changes in Net Assets Available for Benefits
Years Ended December 31, 2008 and 2007
2008 2007
---------------------------------------
Investment Income
Net appreciation (depreciation) in fair value of investments $ (1,667,175) $ 53,348
Interest and dividends 194,399 329,926
----------------- ------------------
Net investment income (loss) (1,472,776) 383,274
----------------- ------------------
Contributions
Employer 140,640 110,737
Participants 376,059 338,584
Rollovers 35,592 60,097
----------------- ------------------
552,291 509,418
----------------- ------------------
Total additions (920,485) 892,692
----------------- ------------------
Deductions
Benefits paid directly to participants 143,487 373,419
----------------- ------------------
Net Increase (Decrease) (1,063,973) 519,273
Net Assets Available for Benefits, Beginning of Year 6,014,951 5,495,678
----------------- ------------------
Net Assets Available for Benefits, End of Year $ 4,950,978 $ 6,014,951
================= ==================
See Notes to Financial Statements 3
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
Note 1: Description of the Plan
The following description of Jacksonville Savings Bank 401(k) Profit
Sharing Plan (Plan) provides only general information. Participants
should refer to the Plan document and Summary Plan Description for a
more complete description of the Plan's provisions, which are available
from the plan administrator.
General
The Plan is a defined contribution plan covering all full-time employees
of the Jacksonville Savings Bank (Company) who have at least one year of
service, have completed 1,000 hours of service and are age 21 or older.
The Plan is subject to the provisions of the Employee Retirement Income
Security Act of 1974 (ERISA).
Contributions
Participants may contribute up to the maximum dollar limit set by law of
pre-tax annual compensation, as defined in the Plan. Employee rollover
contributions are also permitted. The Company makes a matching
contribution calculated as a percentage of the before tax contribution
made on behalf of each contributing participant. The Company determines
the percentage each year. The Company elected to match 2008 and 2007
contributions up to 3.5% and 3%, respectively, of the eligible
compensation of each participant. The Company may also, at its sole
discretion, contribute to the Plan an amount to be determined from year
to year as a profit sharing contribution. The Company did not make a
profit sharing contribution in 2008 or 2007.
Participant Investment Account Options
Investment account options available include various mutual funds,
certificates of deposit, and common stock of Jacksonville Bancorp, Inc.
Each participant has the option of directing his contributions into any
of the separate investment accounts and may change the allocation daily.
Participant Accounts
Each participant's account is credited with the participant's
contribution, the Company's contribution and plan earnings. The benefits
to which a participant is entitled is the benefit that can be provided
from the participant's vested account.
4
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
Vesting
Participants are immediately vested in their voluntary contributions and
the Company's matching contributions plus earnings thereon. Vesting in
the Company's profit sharing contribution portion of their accounts plus
earnings thereon is based on years of service. A person is fully vested
after 6 years of continuous service. Prior to August 27, 2007,
forfeitures were allocated among active participants based upon
compensation. Subsequent to August 27, 2007, forfeitures are used to
reduce the administrative expenses of the Plan.
Payment of Benefits
Upon termination of service, an employee may elect to receive a lump-sum
amount equal to the value of his account.
Plan Termination
Although it has not expressed an intention to do so, the Company has the
right under the Plan to discontinue its contributions at any time and to
terminate the Plan, subject to the provisions of ERISA. In the event of
plan termination, participants will become 100% vested in their
accounts.
Note 2: Summary of Significant Accounting Policies
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis
of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and changes therein and disclosure of
contingent assets and liabilities at the date of the financial
statements. Actual results could differ from those estimates.
Valuation of Investments and Income Recognition
Investments are valued at fair value.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded
on the ex-dividend date.
5
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
Plan Tax Status
The Plan obtained its latest determination letter on May 22, 1996, in
which the Internal Revenue Service stated that the Plan and related
trust, as then designed, were in compliance with the applicable
requirements of the Internal Revenue Code and therefore not subject to
tax. The Plan has been amended since receiving the determination letter.
However, the Plan Administrator believes that the Plan and related trust
are currently designed and being operated in compliance with the
applicable requirements of the Internal Revenue Code.
Payment of Benefits
Benefit payments to participants are recorded upon distribution.
Note 3: Investments
The Plan's investments are held by a bank-administered trust fund. The
following table presents the Plan's investments.
2008
-----------------------------------
Net
Appreciation
(Depreciation) Fair
in Fair Value Value at
During Year End of Year
------------- ------------
Mutual funds $ (1,337,741) $ 2,349,012
Common stock (329,434) 861,204
Money market fund - 1,021
Certificates of deposit - 1,739,193
------------ -----------
$ (1,667,175) $ 4,950,430
============ ===========
6
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
2007
----------------------------------
Net
Appreciation
(Depreciation) Fair
in Fair Value Value at
During Year End of Year
-------------- ------------
Mutual funds $ 62,421 $ 3,283,407
Common stock (9,073) 1,191,684
Money market fund - 1,256
Certificates of deposit - 1,538,621
-------------- ------------
$ 53,348 $ 6,014,968
============== ============
The fair value of individual investments that represented 5% or more of
the Plan's net assets available for benefits in either year were as
follows:
2008 2007
--------- ---------
American Funds Amcap Fund $ 199,346 $ 327,599
American Funds Investment Company of America 377,030 562,090
American Funds Growth Fund of America 296,762 468,384
American Funds Income Fund of America 223,392 300,761
American Fund Fundamental Investors 287,172 425,212
American Funds American Balanced Fund 336,137 428,959
American Funds Capital World Growth and
Income Fund 295,292 435,401
Jacksonville Bancorp, Inc. common stock 861,204 1,191,684
Interest and dividends realized on the Plan's investments for the year
ended 2008 and 2007 were $194,399 and $329,926.
7
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
Note 4:
Fair Value of Plan Assets
Effective January 1, 2008, the Plan adopted Statement of Financial
Accounting Standards No. 157, Fair Value Measurements (FAS 157). FAS 157
defines fair value, establishes a framework for measuring fair value and
expands disclosures about fair value measurements. FAS 157 has been
applied prospectively as of the beginning of the year.
FAS 157 defines fair value as the price that would be received to sell
an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. FAS 157 also
establishes a fair value hierarchy which requires an entity to maximize
the use of observable inputs and minimize the use of unobservable inputs
when measuring fair value. The standard describes three levels of inputs
that may be used to measure fair value:
Level 1 Quoted prices in active markets for identical assets
Level 2 Observable inputs other than Level 1 prices, such as
quoted prices for similar assets; quoted prices in
markets that are not active; or other inputs that are
observable or can be corroborated by observable market
data for substantially the full term of the assets
Level 3 Unobservable inputs that are supported by little or no
market activity and that are significant to the fair
value of the assets
Following is a description of the valuation methodologies used for
assets measured at fair value on a recurring basis and recognized in the
accompanying statements of net assets available for benefits, as well as
the general classification of such assets pursuant to the valuation
hierarchy.
Investments
Where quoted market prices are available in an active market, securities
are classified within Level 1 of the valuation hierarchy. Level 1
securities include common stock, mutual funds and a money market. If
quoted market prices are not available, then fair values are estimated
by using pricing models, quoted prices of securities with similar
characteristics or discounted cash flows. There were no Level 2
securities. In certain cases where Level 1 or Level 2 inputs are not
available, securities are classified within Level 3 of the hierarchy and
include certificates of deposit.
8
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
The following table presents the fair value measurements of assets
recognized in the accompanying statements of net assets available for
benefits measured at fair value on a recurring basis and the level
within the FAS 157 fair value hierarchy in which the fair value
measurements fall at December 31, 2008:
Fair Value Measurements Using
-----------------------------------------------------------
-----------------------------------------------------------
Quoted Prices
in Active Significant
Markets for Other Significant
Identical Observable Unobservable
Assets Inputs Inputs
Fair Value (Level 1) (Level 2) (Level 3)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
Common stock $ 861,204 $ 861,204 $ - $ -
Mutual funds 2,349,012 2,349,012 - -
Money market fund 1,021 1,021 - -
Certificates of deposit 1,739,193 - - 1,739,193
The following is a reconciliation of the beginning and ending balances
of recurring fair value measurements recognized in the accompanying
statements of net assets available for benefits using significant
unobservable (Level 3) inputs:
Certificates of
Deposit
-----------------
Balance, January 1, 2008 $ 1,538,621
Total interest income included in net
decrease in net assets available for
benefits 62,968
Purchases, issuances and settlements 137,604
---------------
Balance, December 31, 2008 $ 1,739,193
===============
9
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
Notes to Financial Statements
December 31, 2008 and 2007
Note 5:
Party-In-Interest Transactions
Party-in-interest transactions include those with fiduciaries or
employees of the Plan, any person who provides services to the Plan, an
employer whose employees are covered by the Plan, a person who owns 50
percent or more of such an employer, or relatives of such persons.
The Plan's investments are held in a trust account administered by
Jacksonville Savings Bank. Active participants can purchase the common
stock of Jacksonville Bancorp, Inc., the parent of the Company. At
December 31, 2008 and 2007, participants held 96,765 and 97,280 shares,
respectively.
The Plan also holds certificates of deposit with Jacksonville Savings
Bank, totaling $1,739,193 and $1,538,621 at December 31, 2008 and 2007,
respectively.
The Plan incurs expenses related to general administration and record
keeping. The plan sponsor pays these expenses and certain accounting and
auditing fees relating to the Plan.
Note 6: Current Economic Conditions
The current economic environment presents employee benefit plans with
unprecedented circumstances and challenges, which in some cases have
resulted in large declines in the fair value of investments. The
financial statements have been prepared using values and information
currently available to the Plan.
Given the volatility of current economic conditions, the values of
assets recorded in the financial statements could change rapidly,
resulting in material future adjustments in investment values that could
negatively impact the Plan.
10
Supplemental Schedule
Jacksonville Savings Bank 401(k)
Profit Sharing Plan
EIN 37-1323900 PN 003
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2008
Identity of Issuer Description of Investment Current Value
--------------------------------------------------------------------------------------------------------------------
Common Stock
Jacksonville Bancorp, Inc.* 96,765 shares $ 861,204
------------------
Mutual Funds
American Funds Investment Company of America 17,988 shares 377,030
American Funds Growth Fund of America 14,490 shares 296,762
American Funds Amcap Fund 16,516 shares 199,346
American Funds Fundamental Investors 11,496 shares 287,172
American Funds Income Fund of America 17,066 shares 223,392
American Funds Capital World Growth & Income 11,114 shares 295,292
American Funds Washington Mutual Fund 2,805 shares 60,061
American Funds New Perspective Fund 9,247 shares 174,574
American Funds Bond Fund of America 592 shares 6,369
American Funds Smallcap World Fund 650 shares 13,445
American Funds American Balanced Fund 24,393 shares 336,137
American Funds 2015 Target Date 5,850 shares 41,712
American Funds 2025 Target Date 1,073 shares 7,116
American Funds 2030 Target Date 1,047 shares 6,933
American Funds 2040 Target Date 2,224 shares 14,698
American Funds 2050 Target Date 1,366 shares 8,973
------------------
2,349,012
------------------
Certificates of Deposit
Jacksonville Savings Bank* 2.24% - 3.75% 1,739,193
------------------
Money Market
Prime Fund Daily Money 1,021 Units 1,021
------------------
$ 4,950,430
==================
* Represents a party-in-interest to the Plan
12
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the employee benefit plan)
have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
JACKSONVILLE SAVINGS BANK 401(k) PROFIT
SHARING PLAN
By: Authorized Officer of Jacksonville
Date: June 15, 2009 By: /s/ John D. Eilering
--------------------
Name: John D. Eilering
Title: Vice President,
Jacksonville Savings Bank