Jacksonville Bancorp, Inc. and Heritage Bancshares, Inc. end merger agreement

Jacksonville Bancorp, Inc. and Heritage Bancshares, Inc. end merger agreement

JACKSONVILLE, FL - Jacksonville Bancorp, Inc. (NASDAQ:JAXB) , holding company for The Jacksonville Bank, and Heritage Bancshares, Inc., holding company for Heritage Bank of North Florida, announced today that they had mutually terminated the Agreement and Plan of Merger that the parties previously enacted on January 28, 2008.

They attributed the amicable termination of the deal to the current economic climate in the banking industry which changed the benefits of the merger for their respective stockholders.

Jacksonville Bancorp's President and CEO Gilbert J. Pomar, III, stated that, "After much consideration, both companies determined that it would not be beneficial to proceed with the merger. We have the utmost respect for the management and board of directors of Heritage."

Randolph L. Knepper, President and CEO of Heritage Bank, shared Pomar's comments and offered the following statement: "We wish each other well. There is a mutual respect between our two companies that is very strong. Due to the challenges of the current economy and issues facing the financial industry, both banks believed that remaining separate was in our best interests at this time."

Additional information about the original pending Merger Agreement and other relevant materials can be found in our Registration Statement on Form S-4 at the Securities and Exchange Commission's website at www.sec.gov.

Jacksonville Bancorp, Inc., a bank holding company, is the parent of The Jacksonville Bank, a Florida state-chartered bank focusing on the Northeast Florida market. The Jacksonville Bank opened for business on May 28, 1999 and provides a variety of community banking services to businesses and individuals in Jacksonville, Florida.

Heritage Bank of North Florida will remain a locally owned bank serving the interests of Clay, Duval and St. Johns counties. It is owned by Heritage Bancshares, Inc. of Orange Park, Florida.