SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2004
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 0-18014
PAMRAPO BANCORP, INC.
(Exact name of registrant as specified in its charter)
| NEW JERSEY | 22-2984813 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification Number) | |
| 611 Avenue C, Bayonne, New Jersey | 07002 | |
| (Address of principal executive offices) | (Zip Code) | |
Registrant’s telephone number, including area code 201-339-4600
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 ¨
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act) Yes ¨ No x
The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date November 5, 2004.
$.01 par value common stock - 4,974,913 shares outstanding
AND SUBSIDIARIES
INDEX
| Page Number | ||||
| PART I - FINANCIAL INFORMATION |
||||
| Item 1: |
Financial Statements |
|||
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| Item 2: |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
6 - 11 | ||
| Item 3: |
12 - 13 | |||
| Item 4: |
14 | |||
| 15 | ||||
| 16 | ||||
PAMRAPO BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
| September 30, 2004 |
December 31, 2003 |
|||||||
| ASSETS |
||||||||
| Cash and amounts due from depository institutions |
$ | 4,740,605 | $ | 5,929,784 | ||||
| Interest-bearing deposits in other banks |
4,154,100 | 4,196,698 | ||||||
| Total cash and cash equivalents |
8,894,705 | 10,126,482 | ||||||
| Securities available for sale |
3,681,357 | 3,921,902 | ||||||
| Investment securities held to maturity; estimated fair value of $9,893,000 (2004) and $9,950,000 (2003) |
9,335,533 | 9,422,111 | ||||||
| Mortgage-backed securities held to maturity; estimated fair value of $217,295,000 (2004) and $219,035,000 (2003) |
211,726,549 | 218,418,340 | ||||||
| Loans receivable |
395,242,275 | 378,640,773 | ||||||
| Investment in real estate |
124,116 | 129,640 | ||||||
| Premises and equipment |
3,961,011 | 4,092,683 | ||||||
| Federal Home Loan Bank stock, at cost |
5,151,900 | 4,743,900 | ||||||
| Interest receivable |
2,978,518 | 2,838,497 | ||||||
| Other assets |
4,801,257 | 4,560,853 | ||||||
| Total assets |
$ | 645,897,221 | $ | 636,895,181 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Liabilities: |
||||||||
| Deposits |
$ | 488,714,230 | $ | 492,160,765 | ||||
| Advances from Federal Home Loan Bank of New York |
95,000,000 | 87,000,000 | ||||||
| Other borrowed money |
92,484 | 117,748 | ||||||
| Advance payments by borrowers for taxes and insurance |
3,322,169 | 3,495,739 | ||||||
| Other liabilities |
4,587,381 | 2,797,586 | ||||||
| Total liabilities |
591,716,264 | 585,571,838 | ||||||
| Stockholders’ equity: |
||||||||
| Preferred stock; authorized 3,000,000 shares; issued and outstanding - none |
— | — | ||||||
| Common stock; par value $.01; authorized 25,000,000 shares; 6,900,000 shares issued; 4,974,913 and 4,974,313 shares, respectively, outstanding |
69,000 | 69,000 | ||||||
| Paid-in capital in excess of par value |
19,001,433 | 18,957,298 | ||||||
| Retained earnings - substantially restricted |
57,492,059 | 54,621,926 | ||||||
| Accumulated other comprehensive income - unrealized gain on securities available for sale |
249,039 | 243,170 | ||||||
| Treasury stock, at cost; 1,925,087 and 1,925,687 shares, respectively |
(22,630,574 | ) | (22,568,051 | ) | ||||
| Total stockholders’ equity |
54,180,957 | 51,323,343 | ||||||
| Total liabilities and stockholders’ equity |
$ | 645,897,221 | $ | 636,895,181 | ||||
See notes to consolidated financial statements.
- 1 -
PAMRAPO BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, | |||||||||||
| 2004 |
2003 |
2004 |
2003 | |||||||||
| Interest income: |
||||||||||||
| Loans |
$ | 6,286,625 | $ | 6,218,118 | $ | 18,535,357 | $ | 19,807,415 | ||||
| Mortgage-backed securities |
2,618,329 | 2,500,341 | 7,624,154 | 7,005,357 | ||||||||
| Investments and other interest-earning assets |
256,133 | 296,386 | 758,522 | 858,163 | ||||||||
| Total interest income |
9,161,087 | 9,014,845 | 26,918,033 | 27,670,935 | ||||||||
| Interest expense: |
||||||||||||
| Deposits |
2,029,463 | 2,384,953 | 6,058,413 | 7,594,024 | ||||||||
| Advances and other borrowed money |
848,005 | 964,875 | 2,428,781 | 2,932,263 | ||||||||
| Total interest expense |
2,877,468 | 3,349,828 | 8,487,194 | 10,526,287 | ||||||||
| Net interest income |
6,283,619 | 5,665,017 | 18,430,839 | 17,144,648 | ||||||||
| Provision for loan losses |
10,000 | 20,000 | 30,000 | 80,000 | ||||||||
| Net interest income after provision for loan losses |
6,273,619 | 5,645,017 | 18,400,839 | 17,064,648 | ||||||||
| Non-interest income: |
||||||||||||
| Fees and service charges |
317,742 | 381,235 | 970,674 | 1,106,924 | ||||||||
| Miscellaneous |
239,184 | 329,945 | 851,608 | 843,646 | ||||||||
| Total non-interest income |
556,926 | 711,180 | 1,822,282 | 1,950,570 | ||||||||
| Non-interest expenses: |
||||||||||||
| Salaries and employee benefits |
1,865,275 | 1,718,611 | 5,718,015 | 5,155,951 | ||||||||
| Net occupancy expense of premises |
245,568 | 265,814 | 740,238 | 795,222 | ||||||||
| Equipment |
319,137 | 342,529 | 938,056 | 1,013,157 | ||||||||
| Advertising |
27,106 | 38,313 | 121,843 | 118,632 | ||||||||
| Miscellaneous |
873,329 | 889,585 | 2,668,983 | 2,596,861 | ||||||||
| Total non-interest expenses |
3,330,415 | 3,254,852 | 10,187,135 | 9,679,823 | ||||||||
| Income before income taxes |
3,500,130 | 3,101,345 | 10,035,986 | 9,335,395 | ||||||||
| Income taxes |
1,407,638 | 1,249,282 | 4,031,909 | 3,772,632 | ||||||||
| Net income |
$ | 2,092,492 | $ | 1,852,063 | $ | 6,004,077 | $ | 5,562,763 | ||||
| Net income per common share: |
||||||||||||
| Basic |
$ | 0.42 | $ | 0.37 | $ | 1.21 | $ | 1.09 | ||||
| Diluted |
$ | 0.42 | $ | 0.37 | $ | 1.20 | $ | 1.09 | ||||
| Dividends per common share |
$ | 0.21 | $ | 0.20 | $ | 0.63 | $ | 0.60 | ||||
| Weighted average number of common shares and common stock equivalents outstanding: |
||||||||||||
| Basic |
4,974,913 | 4,974,759 | 4,974,581 | 5,083,282 | ||||||||
| Diluted |
4,988,785 | 4,978,049 | 4,996,089 | 5,084,379 | ||||||||
See notes to consolidated financial statements.
- 2 -
PAMRAPO BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2004 |
2003 |
2004 |
2003 |
|||||||||||||
| Net income |
$ | 2,092,492 | $ | 1,852,063 | $ | 6,004,077 | $ | 5,562,763 | ||||||||
| Other comprehensive income (loss), net of income taxes: |
||||||||||||||||
| Gross unrealized holding gain (loss) on securities available for sale |
23,290 | (47,551 | ) | 9,869 | 16,585 | |||||||||||
| Deferred income taxes |
(9,300 | ) | 19,000 | (4,000 | ) | (6,700 | ) | |||||||||
| Other comprehensive income (loss) |
13,990 | (28,551 | ) | 5,869 | 9,885 | |||||||||||
| Comprehensive income |
$ | 2,106,482 | $ | 1,823,512 | $ | 6,009,946 | $ | 5,572,648 | ||||||||
See notes to consolidated financial statements.
- 3 -
PAMRAPO BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| Nine Months Ended September 30, |
||||||||
| 2004 |
2003 |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
$ | 6,004,077 | $ | 5,562,763 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation of premises and equipment and investment in real estate |
397,633 | 435,819 | ||||||
| Amortization of premiums and discounts, net |
342,345 | 522,069 | ||||||
| Accretion of deferred fees, net |
175,336 | 219,601 | ||||||
| Provision for loan losses |
30,000 | 80,000 | ||||||
| (Gain) on sales of foreclosed real estate |
— | (17,362 | ) | |||||
| (Increase) in interest receivable |
(140,021 | ) | (42,158 | ) | ||||
| (Increase) decrease in other assets |
(244,404 | ) | 430,687 | |||||
| Increase (decrease) in other liabilities |
1,789,795 | (104,675 | ) | |||||
| Award of treasury stock |
14,850 | — | ||||||
| Net cash provided by operating activities |
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