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Table of Contents

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 March 31, 2005

 

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  x    No  ¨

 

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date May 10, 2005.

 

$.01 par value common stock - 4,975,542 shares outstanding

 

Table of Contents

PAMRAPO BANCORP, INC.

AND SUBSIDIARIES

 

INDEX

 

     Page
Number

PART I - FINANCIAL INFORMATION

    

Item 1:

   Financial Statements     
   

Consolidated Statements of Financial Condition
at March 31, 2005 and December 31, 2004 (Unaudited)

    1
   

Consolidated Statements of Income for the
Three Months Ended March 31, 2005 and 2004 (Unaudited)

    2
   

Consolidated Statements of Comprehensive Income for the
Three Months Ended March 31, 2005 and 2004 (Unaudited)

    3
   

Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 2005 and 2004 (Unaudited)

    4
    Notes to Consolidated Financial Statements    5 – 6

Item 2:

   Management’s Discussion and Analysis of Financial Condition and Results of Operations    7 – 10

Item 3:

   Quantitative and Qualitative Disclosure About Market Risk    11 – 12

Item 4:

   Controls and Procedures    13

PART II - OTHER INFORMATION

    

Item 1:

   Legal Proceedings    14

Item 2:

   Unregistered Sales of Equity Securities and Use of Proceeds    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 – 15

SIGNATURES

   16

Table of Contents

PART I – FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

 

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

 

    

March 31,

2005

     December 31,
2004
  

ASSETS

                 

Cash and amounts due from depository institutions

    $ 8,490,575     $ 5,020,137  

Interest-bearing deposits in other banks

      3,180,795       9,578,574  
    
 

Total cash and cash equivalents

      11,671,370       14,598,711  

Securities available for sale

      3,423,083       3,639,182  

Investment securities held to maturity; estimated fair value of $9,755,000 (2005) and $9,831,000 (2004)

      9,281,517       9,308,686  

Mortgage-backed securities held to maturity; estimated fair value of $186,739,000 (2005) and $200,322,000 (2004)

      190,189,382       200,077,102  

Loans receivable

      407,901,842       395,800,481  

Premises and equipment

      3,984,758       4,018,500  

Federal Home Loan Bank stock, at cost

      5,151,900       5,151,900  

Interest receivable

      2,868,010       2,702,532  

Other assets

      5,333,970       4,601,578  
    
 

Total assets

    $ 639,805,832     $ 639,898,672  
    
 

LIABILITIES AND STOCKHOLDERS’ EQUITY

                 

Liabilities:

                 

Deposits

    $ 488,461,653     $ 489,349,688  

Advances from Federal Home Loan Bank of New York

      89,000,000       89,000,000  

Other borrowed money

      74,783       83,722  

Advance payments by borrowers for taxes and insurance

      3,345,774       3,336,744  

Other liabilities

      2,953,618       3,014,303  
    
 

Total liabilities

      583,835,828       584,784,457  
    
 

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; 4,975,542 and 4,974,913 shares, respectively, outstanding

      69,000       69,000  

Paid-in capital in excess of par value

      19,052,863       19,041,357  

Retained earnings - substantially restricted

      59,275,511       58,387,028  

Accumulated other comprehensive income - Unrealized gain on securities available for sale

      271,222       315,468  

Treasury stock, at cost; 1,924,458 and 1,925,087 shares, respectively

      (22,698,592 )     (22,698,638 )
    
 

Total stockholders’ equity

      55,970,004       55,114,215  
    
 

Total liabilities and stockholders’ equity

    $ 639,805,832     $ 639,898,672  
    
 

 

See notes to consolidated financial statements.

 

- 1 -

Table of Contents

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

 

    

Three Months Ended

March 31,

     2005
    2004

Interest income:

              

Loans

    $ 6,380,812    $ 6,132,688

Mortgage-backed securities

      2,329,276      2,452,861

Investments and other interest-earning assets

      304,735      243,960
    
  

Total interest income

      9,014,823      8,829,509
    
  

Interest expense:

              

Deposits

      2,068,692      2,024,312

Advances and other borrowed money

      818,022      797,691
    
  

Total interest expense

      2,886,714      2,822,003
    
  

Net interest income

      6,128,109      6,007,506

Provision for loan losses

      60,000      10,000
    
  

Net interest income after provision for loan losses

      6,068,109      5,997,506
    
  

Non-interest income:

              

Fees and service charges

      313,601      320,455

Miscellaneous

      309,714      291,234
    
  

Total non-interest income

      623,315      611,689
    
  

Non-interest expenses:

              

Salaries and employee benefits

      1,983,677      1,926,709

Net occupancy expense of premises

      266,082      247,562

Equipment

      321,491      303,955

Advertising

      52,153      61,907

Miscellaneous

      744,159      826,011
    
  

Total non-interest expenses

      3,367,562      3,366,144
    
  

Income before income taxes

      3,323,862      3,243,051

Income taxes

      1,340,760      1,296,564
    
  

Net income

    $ 1,983,102    $ 1,946,487
    
  

Net income per common shares:

              

Basic

    $ 0.40    $ 0.39
    
  

Diluted

    $ 0.40    $ 0.39
    
  

Dividends per common share

    $ 0.22    $ 0.21
    
  

Weighted average number of common shares and common stock equivalents outstanding:

              

Basic

      4,975,248      4,974,313
    
  

Diluted

      4,989,972      5,001,164
    
  

 

See notes to consolidated financial statements.

 

- 2 -

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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

 

    

Three Months Ended

March 31,

  
     2005
     2004
  

Net income

    $ 1,983,102     $ 1,946,487  
    
 

Other comprehensive (loss) income, net of income taxes:

                 

Gross unrealized holding (loss) gain on securities available for sale

      (73,346 )     8,149  

Deferred income taxes

      29,100       (3,300 )
    
 

Other comprehensive (loss) income

      (44,246 )     4,849  
    
 

Comprehensive income

    $ 1,938,856     $ 1,951,336  
    
 

 

See notes to consolidated financial statements.

 

- 3 -

Table of Contents

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

    

Three Months Ended

March 31,

  
     2005
     2004
  

Cash flows from operating activities:

                 

Net income

    $ 1,983,102     $ 1,946,487  

Adjustments to reconcile net income to cash provided by operating activities:

                 

Depreciation of premises and equipment and investment in real estate

      138,514       133,552  

Amortization of premiums and discounts, net

      33,824       216,384  

Accretion of deferred loan fees, net

      60,860       70,351  

Provision for loan losses

      60,000       10,000  

(Increase) in interest receivable

      (165,478 )     (90,987 )

(Increase) in other assets

      (703,292 )     (599,055 )

(Decrease) increase in other liabilities

      (60,685 )     1,481,540  

Award of treasury stock

      15,159       —    
    
 

Net cash provided by operating activities

      1,362,004       3,168,272  
    
 

Cash flow from investing activities:

                 

Principal repayments on securities available for sale

      153,587       96,390  

Purchases of securities available for sale

      (10,833 )     (8,007 )

Principal repayments on mortgage-backed securities held to maturity

      9,881,064       11,432,109  

Purchases of mortgage-backed securities held to maturity

      —         (5,029,688 )

Net change in loans receivable

      (12,222,221 )     (186,138 )

Additions to premises and equipment

      (104,772 )     (46,732 )
    
 

Net cash (used in) provided by investing activities

      (2,303,175 )     6,257,934  
    
 

Cash flows from financing activities:

                 

Net (decrease) increase in deposits

      (888,035 )     (2,277,423 )

Net increase in advances from Federal Home Loan Bank of New York

      —         2,000,000  

Net (decrease) in other borrowed money

      (8,939 )     (8,254 )

Net increase (decrease) in payments by borrowers for taxes and insurance

      9,030       (148,758 )

Cash dividends paid

      (1,094,619 )     (1,044,606 )

Purchase of treasury stock

      (14,082 )     —    

Sale of treasury stock

      10,475       —    
    
 

Net cash (used in) financing activities

      (1,986,170 )     (1,479,041 )
    
 

Net increase in cash and cash equivalents

      (2,927,341 )     7,947,165  

Cash and cash equivalents - beginning

      14,598,711       10,126,482  
    
 

Cash and cash equivalents - ending

    $ 11,671,370     $ 18,073,647  
    
 

Supplemental information:

                 

Cash paid during the period for:

                 

Interest on deposits and borrowings

    $ 2,893,172     $ 2,702,458  
    
 

Income taxes

    $ 900,000     $ 850,000  
    
 

 

See notes to consolidated financial statements.

 

- 4 -

Table of Contents

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

1. PRINCIPLES OF CONSOLIDATION

 

The consolidated financial statements include the accounts of Pamrapo Bancorp, Inc. (the “Company”) and its wholly owned subsidiaries, Pamrapo Savings Bank, SLA (the “Bank”) and Pamrapo Service Corp, Inc. The Company’s business is conducted principally through the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

 

2. BASIS OF PRESENTATION