Business & Finance
Business and Finance
Business and Finance 
Wed, February 4, 2009
Tue, February 3, 2009
Pamrapo Bancorp, Inc.: Pamrapo Bancorp, Inc. Reports Fourth Quarter Results and Announces Stock Repurchase Program
BAYONNE, NJ--(Marketwire - February 3, 2009) - Pamrapo Bancorp, Inc. (
Net income for the year ended December 31, 2008 amounted to $2.5 million, or $0.49 cents per share, as compared with $4.4 million, or $0.87 cents per share, for the year ended December 31, 2007. The decrease in net income for the 2008 fiscal year was primarily due to increased professional fees of approximately $2,000,000 along with an increase of approximately $960,000 in the provision for loan losses, compared to fiscal 2007. The increase in professional fees was predominately due to fees paid to consultants that Pamrapo Savings Bank, S.L.A. engaged as a result of the cease and desist order issued by the Office of Thrift Supervision, effective September 26, 2008. As previously disclosed, the order relates to compliance matters, and does not identify or relate to any issues regarding the safety and soundness of the Bank. Pamrapo Savings Bank, S.L.A. continues to be well-capitalized as of December 31, 2008 with a tier one capital ratio of 9.14% as compared to the minimum regulatory requirement of 4%. The increase in the provision for loan losses was primarily due to an increase in the Bank's non-performing loans, which were $10.8 million at December 31, 2008 compared to $5.5 million at December 31, 2007.
The net loss for the fourth quarter of 2008 amounted to $124,000, or $0.03 cents per share, as compared with net income of $828,000, or $0.17 cents per share, in the fourth quarter of 2007. The loss for the quarter was primarily due to increased professional fees of approximately $1,000,000 along with an increase of approximately $900,000 in the provision for loan losses, compared to the fourth quarter of 2007. Professional fees and the provision for loan losses increased in the fourth quarter for similar reasons as the increases that occurred during fiscal 2008, as discussed above.
Pamrapo's book value per share at December 31, 2008 was $11.08.
In the fourth quarter of 2008, Pamrapo repurchased 40,000 shares under its previous share repurchase program that was announced on August 22, 2000, at an average price of $9.00, leaving only 1,465 shares remaining that may be repurchased under that program as of December 31, 2008. Pamrapo Bancorp, Inc. today announced that its Board of Directors has authorized the repurchase of up to 5% of its outstanding common stock, or approximately 246,700 shares. The repurchases under the current program generally will be effected through open market purchases.
Pamrapo Bancorp, Inc. is a holding company whose principal subsidiary, Pamrapo Savings Bank, S.L.A., operates eleven branch offices in Bayonne, Jersey City, Fort Lee, Hoboken, and Monroe, New Jersey.
Forward-Looking Statements
This press release may include certain forward-looking statements based on current management expectations. The actual results of Pamrapo Bancorp, Inc. (the "Company") could differ materially from those management expectations. Factors that could cause future results to vary from current management expectations include, but are not limited to, general economic conditions, legislative and regulatory changes, monetary and fiscal policies of the federal government, changes in tax policies, rates and regulations of federal, state and local tax authorities, changes in interest rates, deposit flows, the cost of funds, demand for loan products, demand for financial services, competition, changes in the quality or composition of loan and investment portfolios of Pamrapo Savings Bank, S.L.A., the Company's wholly-owned subsidiary, changes in accounting principles, policies or guidelines, and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and prices. The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
PAMRAPO BANCORP, INC. AND SUBSIDIARIES COMPARATIVE STATEMENTS OF FINANCIAL CONDITION (In Thousands) December 31, December 31, ASSETS 2008 2007 ----------- ----------- Cash and amounts due from depository institutions $ 4,117 $ 3,920 Interest-bearing deposits in other banks 9,470 62,976 ----------- ----------- Cash and Cash Equivalents 13,587 66,896 Securities available for sale 771 917 Investment securities held to maturity 11,350 10,377 Mortgage-backed securities held to maturity 117,428 123,907 Loans receivable 437,554 439,053 Foreclosed real estate 426 486 Premises and equipment 2,929 3,340 Federal Home Loan Bank of New York stock 5,160 4,996 Interest receivable 2,884 2,738 Other assets 5,923 4,718 ----------- ----------- Total Assets $ 598,012 $ 657,428 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits $ 443,999 $ 507,961 Advances from Federal Home Loan Bank of New York 89,500 84,000 Advance payments by borrowers for taxes and insurance 3,282 3,558 Other liabilities 6,553 3,270 ----------- ----------- Total Liabilities 543,334 598,789 ----------- ----------- Stockholders' Equity: Preferred stock; 3,000,000 shares authorized; none issued and outstanding - - Common Stock; $0.01 par value; 25,000,000 shares authorized; 6,900,000 shares issued; 4,935,542 shares (2008) and 4,975,542 shares (2007) outstanding 69 69 Paid-in capital 19,340 19,340 Retained earnings 61,928 63,711 Accumulated other comprehensive loss (3,119) (1,302) Treasury stock, at cost; 1,964,458 shares (2008) and 1,924,458 shares (2007) (23,540) (23,179) ----------- ----------- Total Stockholders' Equity 54,678 58,639 ----------- ----------- Total Liabilities and Stockholders' Equity $ 598,012 $ 657,428 =========== =========== PAMRAPO BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In Thousands, except per share data) For the Year Ended Three Months Ended December 31, December 31, 2008 2007 2008 2007 ---------- ---------- --------- ---------- Interest income Loans $ 27,746 $ 28,838 $ 7,024 $ 7,163 Mortgage-backed securities 5,647 6,003 1,377 1,392 Investments 851 695 228 181 Other interest-earning assets 970 1,566 40 462 ---------- ---------- --------- ---------- Total Interest Income 35,214 37,102 8,669 9,198 ---------- ---------- --------- ---------- Interest expense Deposits 11,512 13,699 2,519 3,502 Advances and other borrowed money 3,893 4,384 919 1,051 ---------- ---------- --------- ---------- Total Interest Expense 15,405 18,083 3,438 4,553 ---------- ---------- --------- ---------- Net Interest Income 19,809 19,019 5,231 4,645 Provision for Loan Losses 1,630 670 1,050 150 ---------- ---------- --------- ---------- Net Interest Income after Provision for Loan Losses 18,179 18,349 4,181 4,495 ---------- ---------- --------- ---------- Non-Interest Income Fees and service charges 1,240 1,250 284 319 Commissions from sale of financial products 859 904 346 159 Other 325 194 60 56 ---------- ---------- --------- ---------- Total Non-Interest Income 2,424 2,348 690 534 ---------- ---------- --------- ---------- Non-Interest Expenses Salaries and employee benefits 7,910 7,596 1,973 2,105 Net occupancy expense of premises 1,292 1,200 303 299 Equipment 1,358 1,320 370 370 Advertising 243 255 51 78 Professional fees 2,798 771 1,262 221 Other 2,819 2,700 866 682 ---------- ---------- --------- ---------- Total Non-Interest Expenses 16,420 13,842 4,825 3,755 ---------- ---------- --------- ---------- Income before Income Taxes 4,183 6,855 46 1,274 Income Taxes 1,724 2,503 170 446 ---------- ---------- --------- ---------- Net Income (loss) $ 2,459 $ 4,352 ($ 124) $ 828 ========== ========== ========= ========== Net Income (loss) per Common Share Basic $ 0.49 $ 0.87 ($ 0.03) $ 0.17 Diluted $ 0.49 $ 0.87 ($ 0.03) $ 0.17 ========== ========== ========= ========== Weighted Average Number of Common Shares outstanding Basic 4,970,788 4,975,542 4,956,629 4,975,542 ========== ========== ========= ========== Diluted 4,970,788 4,978,652 4,956,629 4,977,455 ========== ========== ========= ========== Dividends per Common Share $ 0.84 $ 0.92 $ 0.15 $ 0.23 ========== ========== ========= ==========