Free Writing Prospectus

NOTICES

This presentation highlights basic information about Jacksonville Bancorp, Inc. (the “Company”) and this offering. Because it is a summary, it

does

not

contain

all

the

information

that

you

should

consider

before

investing.

The statements contained in this presentation, other than historical information, are forward-looking statements, which involve risks, assumptions

and uncertainties. The risks, uncertainties and factors affecting actual results include but are not limited to: our ability to conduct, and the results

of, the rights offering and the public offering; our ability to dispose of substandard assets and the disposition prices thereof; economic and political

conditions, especially in North Florida; real estate prices and sales in the Company’s markets; competitive circumstances; bank regulation,

legislation, accounting principles and monetary policies; the interest rate environment; efforts to increase our capital and reduce our

nonperforming assets; and technological changes. The Company’s actual results may differ significantly from the results discussed in forward-

looking statements. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. The

Company does not undertake, and specifically disclaims, any obligation to publicly release any revisions to these forward-looking statements to

reflect

events

circumstances

after

the

date

hereof

reflect

the

occurrence

unanticipated

events.

Additional

information

regarding

risk

factors

can

found

the

Company’s

filings

with

the

Securities

and

Exchange

Commission,

including

the

Company’s

Annual

Report

Form 10-K for the year ended December 31, 2012 and the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2013.

Quarterly information presented for all periods is unaudited.

The shares of common stock being offered are not deposits or savings accounts or other obligations of any bank or savings association, and are

not insured by the Federal Deposit Insurance Corporation or any other governmental agency.

The Company has filed a registration statement (including a prospectus) (Registration No. 333-188146) with the SEC for the offering to

which

this

communication

relates.

Before

you

invest,

you

should

read

the

prospectus

that

registration

statement

and

the

other

documents the Company has filed with the SEC for more complete information about the Company and this offering. You may obtain

these

documents

for

free

visiting

EDGAR

the

SEC

website

www.sec.gov

visiting

the

Company’s

website

www.jaxbank.com. Alternatively, the Company, any underwriter or any dealer participating in the offering will arrange to send you the

prospectus upon request by calling toll-free at 1-855-400-0802.

Issuer:

Jacksonville Bancorp, Inc.

Ticker / Exchange:

JAXB / NASDAQ

Summary of Offering:

Rights offering with concurrent public offering of unsubscribed shares

Offering Size:

Up to 10,000,000 primary shares of common stock in the rights offering; shares unsubscribed in the rights offering

will be offered concurrently in a public offering

Offering Price:

$0.50 per share in both rights offering and public offering

Offering Period:

Use of Proceeds:

Financial Advisor and Sales Agent:

Hovde Group, LLC

Prospectus:

Rights offering period will be 30 days (unless extended) and the public offering period will commence concurrently

with the rights offering and will expire 10 trading days (unless extended) after the expiration of the rights offering

Provide additional liquidity for working capital and for general corporate purposes, mainly for The Jacksonville Bank

FFERING

VERVIEW

This

Prospectus

available

clicking

here.

COMPANY PROFILE

Founded in 1997, Jacksonville Bancorp, Inc. (“Bancorp”) is a bank

holding company headquartered in Jacksonville, Florida, that

conducts its operations through its wholly-owned subsidiary, The

Jacksonville Bank (the “Bank”)

The

Bank

operates

nine

(1)

branches

the

Jacksonville

Metropolitan Statistical Area (“MSA”), and with a 1.14% deposit

market share

(4)

, it is the largest community bank headquartered in

the Jacksonville MSA

As of June 30, 2013, Bancorp had total assets, net loans and

deposits of $522.4 million, $364.6 million and $449.3 million,

respectively

The Bank is well capitalized with 13.7% total risked-based capital

and 9.2% leverage ratio as of June 30, 2013

Bancorp has recently taken several steps to strengthen its balance

sheet and bolster its leadership

BANCORP FINANCIAL HIGHLIGHTS

(1)

Includes eight brick-and-mortar branches and one cyber branch

(2)

Series A preferred stock is Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock

(3)

Includes non-performing TDRs

(4)

Source: SNL Financial as of 6/30/2013

(5)

Includes year-to-date unaudited information

Rank

Institution (ST)

Branches

Deposits in

Market ($000)

Market

Bank of America Corp. (NC)

20,883,062

45.50%

EverBank Financial (FL)

9,864,722

21.49%

Wells Fargo & Co. (CA)

5,514,310

12.01%

SunTrust Banks Inc. (GA)

1,708,042

3.72%

BBVA

1,377,221

3.00%

Regions Financial Corp. (AL)

1,043,297

2.27%

Toronto-Dominion Bank

611,515

1.33%

Jacksonville Bancorp, Inc. (FL)

521,677

1.14%

Ameris Bancorp (GA)

513,490

1.12%

BB&T Corp. (NC)

445,217

0.97%

Total For Institutions In Market

309

45,900,021

(4)

2012 JACKSONVILLE MSA DEPOSIT MARKET SHARE

In December 2012, Bancorp completed a $50.0 million private

placement

Series

convertible

preferred

stock

(2)

which

subsequently converted into shares of common stock and

nonvoting common stock

Also in December 2012, $25.1 million in assets, primarily classified

loans, were sold to reduce its risk profile (the “Asset Sale”)

Bancorp enhanced its management team through the strategic

additions of three Directors, a CCO and an interim principal

executive officer (“PEO”)

(5)

($ in thousands)

For the Six Months Ended

June 30, 2013

Balance Sheet

Total Net Loans

$364,649

Total Assets

522,433

Total Deposits

449,254

Common Equity

$32,033

Income Statement

Net Interest Income

$9,937

Non-Interest Income

801

Net Income

$228

Ratios

Net Interest Margin

3.9%

Return on Average Equity

1.4%

Efficiency Ratio

100.4%

Tangible Common Equity / Tangible Assets

5.9%

ALLL / Gross Loans

4.5%

NPAs / Assets

(3)

5.0%

Originally founded in 1997, Jacksonville Bancorp, Inc. has a well

established

presence

Jacksonville,

Florida,

with

nine

(1)

branches, $522.4 million in assets and $449.3 million in deposits

as of June 30, 2013

The map to the right depicts Bancorp’s branch network, and

the timeline below illustrates key milestones for Jacksonville

Bancorp, Inc.

(1)

Includes eight brick-and-mortar branches and one cyber branch

(2)

Series

preferred

stock

Noncumulative,

Nonvoting,

Perpetual

Preferred

Stock

(3)

Series A preferred stock is Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock

1997

2010

2012

2013

October

24,

1997

Bancorp was

incorporated under the

laws of the State of

Florida for the purpose

of organizing the Bank

November

16,

2010

Bancorp acquired Atlantic BancGroup,

Inc. and concurrently raised $35.0

million through a private placement of

common stock to accredited investors,

led by CapGen Capital Group IV LP

(“CapGen”)

September

27,

2012

As part of a bridge financing,

Bancorp sold to CapGen

5,000 shares of Series B

preferred stock

(2)

for an

aggregate purchase price of

$5.0 million

December

31,

2012

Completed a $50.0 million private

placement (which rolled in $5

million bridge financing) of Series

A preferred stock

(3)

to CapGen

and 29 other accredited investors

February

19,

2013

50,000 outstanding shares of

Series A preferred stock

(3)

converted into an aggregate of

47,640,000 shares of common

stock and 52,360,000 shares of

nonvoting common stock

May

28,

1999

The Bank, a Florida state-

chartered commercial bank,

opened for business

February

11,

2011

Loans classified as held-for-sale in

the amount of $13.9 million were

sold

December

31,

2012

Completed asset sale

transaction, which reduced

assets of $25.1 million,

primarily classified loans

June 27, 2013

Three new independent directors were

appointed to the Board of Bancorp and

Bank, and Donald F. Glisson, Jr.,

Chairman of the Board of Bancorp, was

appointed as interim PEO

ACKSONVILLE

ANCORP

ISTORY

BRANCH FOOTPRINT

(1)

The following table describes capitalization as of June 30, 2013, on an actual and as adjusted basis to give effect to the issuance and sale of 10

million shares of common stock in this offering, net of $0.5 million in estimated offering expenses

Pro forma information is also presented in the table below to show sensitivity around various levels of participation

PRO

FORMA BALANCE SHEET

BANCORP

PRO

FORMA

BALANCE

SHEET

(1)

Pro

forma

information

reflects

net

proceeds

from

the

offering

approximately

$4.5

million,

net

estimated

offering

expenses

$0.5

million;

$2.0

million,

net

estimated

offering

expenses of $0.5 million; and $0.8 million, net of offering expenses of $0.4 million, based on subscription rates of 100%, 50%, and 25%, respectively

(Dollars in thousands)

June

30, 2013

Pro Forma

Actual

100%

Participation

50%

Participation

25%

Participation

Assets:

Cash

and

cash

equivalents

(1)

$42,799

$47,263

$44,838

$43,626

Securities available-for-sale

83,234

Net loans

364,649

Other assets

31,751

Total assets

$522,433

$526,897

$524,472

$523,260

Liabilities

and

Shareholders’

Equity

Liabilities:

Deposits

$449,254

Borrowings

38,487

Other liabilities

2,659

Total liabilities

490,400

Shareholders’

Equity:

Preferred stock

Voting common stock, $0.01 par value

535

635

585

560

Nonvoting common stock, $0.01 par value

524

Additional paid-in capital

132,868

137,232

134,857

133,670

Retained earnings (deficit)

(101,500)

Accumulated other comprehensive income

(394)

Total equity

32,033

34,072

32,860

Total

liabilities

and

shareholders’

equity

$522,433

$526,897

$524,472

$523,260

Capital Ratios: Consolidated

Total capital to risk-weighted assets

13.6%

15.0%

14.2%

13.9%

Tier 1 (core) capital to risk-weighted assets

11.0%

12.7%

11.7%

11.3%

Tier 1 (core) capital to average assets

8.1%

9.3%

8.7%

8.4%

36,497

CAPGEN

RECAPITALIZATION

On December 31, 2012, Bancorp completed a $50.0 million capital

raise

(1)

through

the

private

placement

50,000

Series

preferred

stock

(2)

CapGen

and

other

accredited

investors

purchase price of $1,000 per share (the “Private Placement”)

Consideration in the Private Placement included the following:

Cash;

The

one-for-one

exchange

Series

preferred

stock

(3)

sold

the

$5.0 million bridge financing to CapGen in September 2012; and

$1.8 million in the cancellation of outstanding debt under revolving

loan agreements held by certain purchasers in the Private

Placement and/or their related interests

February

19,

2013,

after

receipt

shareholder

approval,

the

50,000

outstanding

Series

preferred

stock

(2)

converted

into

aggregate of 47,640,000 shares of common stock and 52,360,000

shares of nonvoting common stock

The

effective

purchase

price

was

$0.50

per

common

share;

this

the

same price at which this offering is being priced

ASSET

SALE

A strategy to accelerate the disposition of substandard assets was

adopted during the second quarter of 2012

Immediately prior to the Private Placement, the Bank sold $25.1 million

of other real estate owned (“OREO”), nonaccrual loans, loans with a

history of being past due and other loans that were part of an overall

customer relationship to a real estate investment firm, who was also an

investor

the

Private

Placement,

for

purchase

price

$11.7

million

The

assets

underlying

the

Asset

Sale

included

OREO

$0.5

million

and loans of $24.6 million

The Asset Sale was ultimately completed immediately prior to the

closing of the Private Placement

This Asset Sale resulted in the following reduction of assets:

Total loans past due still accruing interest decreased by $6.7 million

from $11.4 million at September 30, 2012 to $4.6 million at

December 31, 2012, or approximately 59.4%; at June 30, 2013, total

loans past due still accruing interest declined further to $2.5 million

Non-performing loans decreased by $12.5 million from $35.2 million

at September 30, 2012 to $22.7 million at December 31, 2012, or

approximately 35.3%; at June 30, 2013, non-performing loans

declined further to $17.0 million

(1)

Included $5 million raised in bridge financing in September 2012

(2)

Series A preferred stock is Mandatorily Convertible, Noncumulative, Nonvoting, Perpetual Preferred Stock

(3)

Series

preferred

stock

Noncumulative,

Nonvoting,

Perpetual

Preferred

Stock

RECENT EVENTS

Experience

Relevant Prior Experience

Donald F. Glisson, Jr.

Chairman of the Board

Interim

Principal

Executive

Officer

(1)

Over 25 Years

Chairman

and

Chief

Executive

Officer

Triad

Financial

Services

Inc.,

consumer

finance company based in Jacksonville, Florida, and the second largest originator of

manufactured housing loans in the U.S.

Chairman

the

Board

Oceanside

Bank

and

its

holding

company,

Atlantic

BancGroup, Inc., from 1996 to November 2010

Margaret A. Incandela

Executive VP, Chief Credit Officer &

Chief Operating Officer

Over 25 Years

Executive VP and Chief Credit Officer of Heritage Bank of Commerce (San Jose, CA)

Executive VP and Chief Credit Officer of New Resource Bank (San Francisco, CA)

Senior VP and Regional Credit Officer of Diablo Valley Bank (Danville, CA)

Various other credit and lending positions at CIB Marine Bancshares, Inc., Bridgeview

Bank, Banco Popular North America, Bank United, Compass Bank, First City

Bancorporation and MBank Alamo

Valerie A. Kendall

Executive VP & Chief Financial Officer

Over 25 Years

Executive VP and Chief Financial Officer of P.C.B. Bancorp, Inc.

(Clearwater, FL)

Senior finance positions with AmSouth Bank (NKA Regions), Barnett Bank (NKA

Bank of America) and SunTrust

Scott M. Hall

Executive VP & President of Bank

Over 25 Years

Vice President/Commercial Banking Relationship Manager of First Union National

Bank (Jacksonville, FL)

Actively engaged in commercial banking in the Jacksonville market for over 20 years

(1)

The Company has engaged an executive search firm to initiate the search for a President and Chief Executive Officer

Executive Management Team:

ENHANCED LEADERSHIP TEAM

Board of Directors:

Title

Biography

Donald F. Glisson, Jr.

Chairman of

the Board

Former Chairman of the Board of Oceanside Bank and its holding company, Atlantic BancGroup, Inc.

James M. Healey

Director

Owner and President of House & Home Investments, Inc., a real estate management company

Partner of Mint Magazine, Inc.

Previously worked at Carnation Food Products, Inc. and International Harvester

John W. Rose

Director

Principal of CapGen Financial LLC, a private equity fund that specializes in bank and thrift investments

Former President of McAllen Capital Partners, a financial advisory firm

Price W. Schwenck

Director

Former President and CEO of Jacksonville Bancorp, Inc.

Former President and Chief Executive Officer of P.C.B. Bancorp, Inc.

Former Regional President for First Union National Bank

Charles F. Spencer

Director

President of INOC, LLC, a real estate management development company in Jacksonville, Florida

Executive Vice President of the South Atlantic and Gulf Coast District of International Longshoremen’s Association (ILA) and a member of

ILA’s AFL-CIO Executive Council

John P. Sullivan

Director

Managing Director of CapGen Capital Advisers LLC, a private equity fund

Formerly served as Chairman, President, CEO and COO of various financial institutions, including Hamilton Bancorp, River Bank America,

Continental Bank and the Olympian New York Corp.

Gary L. Winfield

Director

Chief Medical Officer of LewisGale Regional Health System

Former Chief Medical Officer of Memorial Hospital

Former Owner of Sandcastle Family Practice, P.A., a family practice in Jacksonville Beach, Florida

John A. Delaney

Director

President of the University of North Florida since 2003

Former Mayor of Jacksonville from 1995-2003

Former Chief Assistant State Attorney for northeast Florida’s Fourth Judicial Circuit

William R. Klich

Director

40 years of banking experience

Formerly held a number of top leadership positions, including State President of BB&T; CEO of Republic Bancshares; CEO of SunTrust

Bank/Gulf Coast; President and CEO of Coast Bank FSB; and Central Florida Regional President of Southeast Bank

Terrie G. Spiro

Director

Chairman and CEO of TNP Financial Enterprise Consulting, LLC

30 years of experience as a banker, corporate leader and financial services consultant

Formerly

held

number

top

leadership

positions,

including

founding

market

president

First

Tennessee

Bank,

subsidiary

First

Horizon National Corporation (NYSE:FHN); founding CEO and director of Tysons Financial Corporation and Tysons National Bank; CEO

and director of Heritage Bank Corp. and Heritage Bank; and Executive Officer at Riggs Bank, which was listed on NYSE

ENHANCED LEADERSHIP TEAM

Chairman and Chief Executive Officer of Triad Financial Services Inc., the second largest originator of manufactured housing loans in the

U.S.

Comprehensive plan to generate lending opportunities has

resulted

approximately

$38.0

million

originations

thus

far

2013

There are enhanced business opportunities in the Bank’s

market as the start of a recovery is clearly more evident now

than last year, which is evidenced by the business expansion

that is occurring with the Bank’s customers and through credit

enhanced franchise lending opportunities

To address some of these opportunities, the Bank is currently

in the process of adding lenders that can enhance the Bank’s

credit offering arsenal with additional product lines

The average yield on loans has increased to 5.46% for the three

months ended June 30, 2013 compared to 5.25% for the three

months ended June 30, 2012

Focus on C&I with no new land and lot loans:

Expansion of C&I portfolio to manufacturers, distributors, law

firms and medical practices

At $43.1 million, as of June 30, 2013, C&I loans have grown to

11.3% of the gross loan portfolio

Two new seasoned C&I lenders hired in 2013

New Chief Credit Officer directly oversees the underwriting of all

new loans

Replaced 80% of the credit underwriting staff and now have all

seasoned underwriters with specific knowledge which supports

the Bank’s strategic plan

Residential

Real Estate

19.6%

Construction &

Development

8.7%

Owner

Occupied CRE

Mortgage

26.5%

Non Owner

Occupied CRE

Mortgage

29.9%

Multifamily

3.4%

Commercial &

Industrial

11.3%

Consumer &

Other Loans

0.6%

5.41%

5.25%

5.42%

5.56%

6.03%

5.46%

5.00%

5.20%

5.40%

5.60%

5.80%

6.00%

6.20%

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

GROSS LOANS AS OF JUNE 30, 2013

HISTORICAL QUARTERLY AVERAGE YIELD ON LOANS

LOAN PORTFOLIO COMPOSITION

(1)

Tier 1 Capital at the Bank

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

2012Q1

2012Q2

2012Q3

2012Q4

2013Q1

2013Q2

$49.1

$46.4

$35.2

$22.7

$20.1

$17.0

$7.7

$7.5

$4.6

$7.0

$9.9

$9.1

$10.9

$4.6

$11.4

$4.6

$8.2

$2.5

($ in thousands)

2008Y

2009Y

2010Y

2011Y

2012Y

2013Q2

Non-performing Loans

$12,436

$8,745

$35,017

$46,904

$22,681

$16,973

Loans past due over 90 days still accruing

Total

12,436

8,745

35,017

46,904

22,748

16,973

OREO

4,011

5,733

7,968

6,971

9,142

Total

$12,525

$12,756

$40,750

$54,872

$29,719

$26,115

NPAs Excluding Performing TDRs / Total Assets

2.89%

2.91%

6.25%

9.77%

5.26%

5.00%

Classified Assets

$28,989

$48,811

$70,717

$76,584

$45,730

$40,691

Classified Assets / Tier 1 Capital

(1)

+ ALLL

71.2%

107.9%

115.1%

144.0%

69.4%

62.7%

ASSET QUALITY OVERVIEW

NPLs

OREO

30-89 days past due still accruing

Management team has fully evaluated legacy credit processes

and implemented significant structural changes:

Dual signature authority with credit and line lenders

Increased oversight and frequency of reporting of past due

credits and overdrafts

Realign credit and lending teams and strengthen underwriting

criteria

Evaluated all of the problem loans rated special mention and

worse and segregated the portfolio by asset resolution

strategy

Executed Asset Sale at December 31, 2012

Pursued short sales or discount payoff offers

Restructured loans that could be upgraded quickly

ASSET

QUALITY

MIGRATION

ASSET

QUALITY

DETAIL

Short duration, conservatively managed bond portfolio

INVESTMENT PORTFOLIO AND INTEREST RATE SENSITIVITY

INVESTMENT PORTFOLIO

INTEREST RATE SENSITIVITY AS OF DECEMBER 31, 2012

($ in thousands)

Less Than

3 to 6

6 Months

1 Year to

Over

3 Months

Months

to 1 Year

5 Years

Total

Loans

$139,650

$35,603

$46,594

$135,166

$20,820

$377,833

Securities

13,342

5,709

8,088

43,690

13,156

83,985

Other Assets

69,972

249

1,495

178

71,894

Total Rate-Sensitive Assets

222,964

41,312

54,931

180,351

34,154

533,712

NOW Deposits

20,180

Money Market Accounts

168,829

Savings Deposits

9,386

Time Deposits

42,122

16,680

21,336

116,839

197,051

Total Deposit Accounts

210,951

16,680

21,336

116,839

29,640

395,446

Other Liabilities

22,200

16,266

38,466

Total Rate-Sensitive Liabilities

$210,951

$16,680

$21,336

$139,039

$45,906

$433,912

Gap Repricing Difference

$12,013

$24,632

$33,595

$41,312

($11,752)

$99,800

Cumulative Gap

$12,013

$36,645

$70,240

$111,552

$99,800

Cumulative Gap to Total Rate-Sensitive Assets

2.3%

6.9%

13.2%

20.9%

18.7%

($ in thousands)

December 31, 2012

June 30, 2013

Book Value

Fair Value

Book Value

Fair Value

U.S. GSEs & Agencies

$10,286

$10,491

$8,815

$9,030

State & Political Subdivisions

16,598

18,166

13,307

14,045

Mortgage-Backed Securities - Residential

32,148

33,646

25,741

26,368

Collateralized Mortgage Obligations

19,349

19,527

31,001

30,685

Corporate Bonds

2,048

2,155

3,042

3,106

Total Available-for-Sale Securities

$80,429

$83,985

$81,906

$83,234

79.4% of bonds have explicit or implicit U.S. government

guarantee

Structured to provide liquidity

Portfolio remains in unrealized gain position

Overall,

balance

sheet

“positively

gapped”

benefit

rising

rate environment

DEPOSIT COMPOSITION

DEPOSIT

COMPOSITION

DETAIL

Focused effort to grow and reposition deposit portfolio:

Ran off $24.2 million of national CDs in the first six months of

2013

Focusing on lending relationships that include large core

deposits

$449.3 million in deposits as of June 30, 2013

Average cost of interest bearing liabilities improved to 1.13% for

the three months ended June 30, 2013 compared to 1.17% for the

same period in 2012

Re-pricing activities in the current low interest rate

environment, coupled with an increase in non-interest bearing

deposits to $105.2 million as of June 30, 2013 from $93.4

million as of June 30, 2012, led to the decrease in cost of

interest bearing deposits

Time deposits decreased from $220.4 million in Q2 2012 to $155.4

million in Q2 2013

AVERAGE

DEPOSIT AS OF

JUNE

30, 2013

HISTORICAL

COST OF

INTEREST

BEARING

LIABILITIES

Time Deposits

35.0%

Non-Interest

Bearing

Liabilities

22.9%

NOW Deposits

4.7%

Savings

Deposits

2.2%

Money Market

Deposits

35.2%

2.10%

1.90%

1.70%

1.50%

1.30%

1.10%

0.90%

2.11%

1.47%

1.15%

1.12%

2010Y

2011Y

2012Y

YTD June 30,

2013

As of July 31, 2013, Bancorp had 53.5 million shares of voting

common stock outstanding and 52.4 million shares of nonvoting

common stock outstanding

As depicted in the table to the right, CapGen is the largest holder

voting

common

stock

with

total

49.9%

(1)

Based on nonvoting common stock, CapGen is the largest holder

with 69.0%

(1)

, followed by Wellington Management Company with

17.7%

(1)

of total nonvoting common stock

Public float of 25.7 million shares

(1)

Average daily trading volume over the last three months of

39,830 shares as of August 28, 2013

* Includes options exercisable within 60 days of March 11, 2013

(1)

Based on beneficial ownership as of March 11, 2013 when 53,530,880 shares of common stock and 52,360,000 shares of nonvoting common stock were outstanding, as reported in the

Company’s Definitive Proxy Statement filed on March 29, 2013; excludes ownership of Stepen C. Green, who is no longer a director or executive officer

(2)

Source: SNL Financial; ownership calculated by Company as of August 20, 2013, the record date for the rights offering

Name

Beneficially

Owned*

% of Class

Outstanding

CapGen Capital Group LP

26,684,144

49.85%

Donald F. Glisson, Jr.

534,810

1.00%

Price W. Schwenck

434,050

0.81%

John W. Rose

88,750

0.17%

Gary L. Winfield

29,800

0.06%

Valerie A. Kendall

51,000

0.10%

Charles F. Spencer

19,500

0.04%

Scott M. Hall

37,800

0.07%

James M. Healey

5,520

0.01%

Total

27,885,374

52.09%

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Volume

Price

Aug 2012

Nov 2012

Feb 2013

May 2013

Aug 2013

OWNERSHIP PROFILE AND SHARES OUTSTANDING

INSTITUTIONAL OWNERSHIP – TOP FIVE

INSIDER OWNERSHIP – VOTING COMMON STOCK

(1)

(2)

JAXB STOCK PERFORMANCE

–

LTM AS OF AUGUST 28, 2013

Top Five Institutional Owners

Wellington Management Company LLP

Sandler O'Neill Asset Management, LLC

Waterfall Asset Management, LLC

Mendon Capital Advisors Corporation

Boston Provident, L.P.

Total Top Five Institutional Ownership: 32.91%

MARKET OVERVIEW

Jacksonville

ranks

nationally

out

938

metropolitan

areas

for

number

businesses

with

34,085

and

for

number

employees

with

482,315

Home to several institutions of higher learning, including the University of North Florida, as

well as the home of the Jacksonville Jaguars NFL franchise

Market

opportunities

the

bank

lending

niche

(revenues

less

than

$40M)

include

7,556 professional practices and 6,499 manufacturers/distributors

Port

Jacksonville

international

trade

seaport,

carrying

over

8.1

million

tons

cargo

each year, which has an annual economic impact of over $19 billion, including 65,000 jobs

(1)

Source: Jaxport.com, worldportsource.com, 2010 U.S. Census

(2)

Source:

City

Jacksonville

November

2012

–

coj.net

(3)

Source: SNL Financial; U.S. Department of Labor as of June 2013

(4)

Source: Bureau of Economic Analysis; ESRI as of June 2012; Federation of Tax Administrators; SNL Financial; U.S. Department of Labor; U.S. Census; 2012 state tax revenue and 2011 state personal income

CITY OF JACKSONVILLE HIGHLIGHTS

(1)

LARGEST EMPLOYERS IN JACKSONVILLE

(2)

HISTORICAL UNEMPLOYMENT RATE

(3)

DEMOGRAPHICS

(4)

7.0%

7.4%

7.6%

3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

Jun.

2013

Dec.

2012

Jun.

2012

Dec.

2011

Jun.

2011

Dec.

2010

Jun.

2010

Dec.

2009

Jun.

2009

Dec.

2008

Jun.

2008

Jacksonville MSA

Florida

U.S.

Jacksonville MSA unemployment

rate at 7.0%; down from 11.9% in

March 2010

4.3%

7.0%

18.3%

4.4%

3.5%

7.6%

13.4%

6.2%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

Proj. Population

Change 2012–

2017

Jun. 2013

Unemployment

Rate

Proj. Median HH

Income Change

2012–2017

State Taxes as %

of Personal

Income

Jacksonville MSA

Nation

Florida

FL has no

individual

income tax

Major deep water port that ranks with New York as the top two largest handlers of

vehicles in the U.S.

Recently underwent a major expansion and renovation to provide expanded facilities

in anticipation of Panama Canal expansion

Employer

Type of Business

Employees

Naval Air Station Jacksonville

U.S. Navy

25,240

Duval County Public Schools

Public education

14,480

Naval Station Mayport

U.S. Navy

9,000

City of Jacksonville

Municipal government

8,820

Baptist Health

Hospital

8,270

Bank of America Merrill Lynch

Bank

8,000

Florida Blue

Health Care

6,500

Mayo Clinic

Health Care

4,970

Citi

Consumer finance

4,200

JP Morgan Chase

Bank

4,200

United Parcel Service

Parcel Delivery

4,100

CSX

Transportation

4,000

St. Vincent's Medical Center

Hospital

4,000

U.S. Postal Service

Mail Delivery

3,790

University of Florida Health at Jacksonville

Education

3,500

Wells Fargo

Bank

3,500

Jacksonville Sheriff's Office

City Government

3,300

Fleet Readiness Center

Maintenance / Repair

3,200

Florida State College at Jacksonville

Education

3,100

AT&T

Telecommunications

2,600

INVESTMENT HIGHLIGHTS

Tangible results from execution of strategic plan

Successful capital raise and Asset Sale at December 31, 2012

Reduction in NPAs and operational profitability

Repositioning of loan and deposit portfolios to diversify balance sheet and enhance profitability

Supplemented management and added three new Board members

Opportunity to invest with proven institutional investors at attractive valuation

CapGen owns 49.9% of voting common stock (two Board seats)

Same

price

per

common

share,

$0.50,

December

31,

2012

Private

Placement

Balance sheet clarity with execution of Asset Sale

Reversal of DTA valuation allowance would result in increased book value by approximately $0.26 per share

Significant allowance (4.5% of total loans) further minimizes balance sheet risk

Significant opportunity to grow organically and through M&A in the vibrant Jacksonville MSA