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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



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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, 2003
| | -------------------------------------------------



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



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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



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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 12, 2003.



$.01 par value common stock - 4,974,313 shares outstanding



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PAMRAPO BANCORP, INC.

AND SUBSIDIARIES



INDEX



|PART IFINANCIAL INFORMATION |  | Page Number                                                                                                                       
|---------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------
|                             |  |                                                                                                                                   
|Item 1:                      |  | Consolidated Financial Statements                                                                                                 
|                             |  |                                                                                                                                   
|                             |  | Consolidated Statements of Financial Condition at September 30, 2003 and December 31, 2002 (Unaudited)                            
|                             |  |                                                                                                                                   
|                             |  | Consolidated Statements of Income for the Three Months and Nine Months Ended September 30, 2003 and 2002 (Unaudited)              
|                             |  |                                                                                                                                   
|                             |  | Consolidated Statements of Comprehensive Income for the Three Months and Nine Months Ended September 30, 2003 and 2002 (Unaudited)
|                             |  |                                                                                                                                   
|                             |  | Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2003 and 2002 (Unaudited)                           
|                             |  |                                                                                                                                   
|                             |  | Notes to Consolidated Financial Statements                                                                                        
|                             |  |                                                                                                                                   
|Item 2:                      |  | Managements Discussion and Analysis of Financial Condition and Results of Operations                                             
|                             |  |                                                                                                                                   
|Item 3:                      |  | Quantitative and Qualitative Disclosure About Market Risk                                                                         
|                             |  |                                                                                                                                   
|Item 4:                      |  | Controls and Procedures                                                                                                           
|                             | 
|PART IIOTHER INFORMATION    |  | 15                                                                                                                                
|                             | 
|SIGNATURES                   |  | 16                                                                                                                                



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ITEM 1

CONSOLIDATED FINANCIAL STATEMENT

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)



|                                                                                                                                                                                 |  | September 30, 2003 |             |   | December 31,2002 |  
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------ | ----------- | - | ---------------- | -
|ASSETS                                                                                                                                                                           |  |                    |             |   |                  |  
|Cash and amounts due from depository institutions                                                                                                                                |  | $                  | 1,997,815   |   |                  | $
|Interest-bearing deposits in other banks                                                                                                                                         |  |                    | 6,462,135   |   |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Total cash and cash equivalents                                                                                                                                                  |  |                    | 8,459,950   |   |                  |  
|Securities available for sale                                                                                                                                                    |  |                    | 4,066,165   |   |                  |  
|Investment securities held to maturity; estimated fair value of $10,003,000 (2003) and $7,461,000 (2002)                                                                         |  |                    | 9,447,865   |   |                  |  
|Mortgage-backed securities held to maturity; estimated fair value of $235,679,000 (2003) and $151,972,000 (2002)                                                                 |  |                    | 233,438,907 |   |                  |  
|Loans receivable                                                                                                                                                                 |  |                    | 370,255,777 |   |                  |  
|Foreclosed real estate                                                                                                                                                           |  |                    |            |   |                  |  
|Investment in real estate                                                                                                                                                        |  |                    | 203,600     |   |                  |  
|Premises and equipment                                                                                                                                                           |  |                    | 4,184,404   |   |                  |  
|Federal Home Loan Bank stock of New York, at cost                                                                                                                                |  |                    | 4,850,000   |   |                  |  
|Interest receivable                                                                                                                                                              |  |                    | 3,024,473   |   |                  |  
|Other assets                                                                                                                                                                     |  |                    | 4,551,467   |   |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Total assets                                                                                                                                                                     |  | $                  | 642,482,608 |   |                  | $
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|LIABILITIES AND STOCKHOLDERS EQUITY                                                                                                                                             |  |                    |             |   |                  |  
|Liabilities:                                                                                                                                                                     |  |                    |             |   |                  |  
|Deposits                                                                                                                                                                         |  | $                  | 489,671,222 |   |                  | $
|Advances from Federal Home Loan Bank of New York                                                                                                                                 |  |                    | 95,000,000  |   |                  |  
|Other borrowed money                                                                                                                                                             |  |                    | 125,838     |   |                  |  
|Advance payments by borrowers for taxes and insurance                                                                                                                            |  |                    | 3,610,590   |   |                  |  
|Other liabilities                                                                                                                                                                |  |                    | 3,965,554   |   |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Total liabilities                                                                                                                                                                |  |                    | 592,373,204 |   |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Stockholders equity:                                                                                                                                                            |  |                    |             |   |                  |  
|Preferred stock; authorized 3,000,000 shares; issued and outstandingnone                                                                                                        |  |                    |            |   |                  |  
|Common stock; par value $.01; authorized 25,000,000 and 7,000,000 shares, respectively; 6,900,000 shares issued; 4,974,313 shares
and 5,145,986 shares outstanding, respectively |  |                    | 69,000      |   |                  |  
|Paid-in capital in excess of par value                                                                                                                                           |  |                    | 18,957,298  |   |                  |  
|Retained earningssubstantially restricted                                                                                                                                       |  |                    | 53,398,726  |   |                  |  
|Accumulated other comprehensive incomeunrealized gain on securities available for sale                                                                                          |  |                    | 252,431     |   |                  |  
|Treasury stock, at cost; 1,925,687 and 1,754,014 shares, respectively                                                                                                            |  |                    | (22,568,051 | ) |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Total stockholders equity                                                                                                                                                       |  |                    | 50,109,404  |   |                  |  
|                                                                                                                                                                                 |  |                    |             |   |                  |  
|Total liabilities and stockholders equity                                                                                                                                       |  | $                  | 642,482,608 |   |                  | $
|                                                                                                                                                                                 |  |                    |             |   |                  |  



See notes to
consolidated financial statements.



-1-



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)



|                                                                                   |  | Three Months EndedSeptember 30, |           | Nine Months Ended September 30,
|---------------------------------------------------------------------------------- |  | ------------------------------- | --------- | -------------------------------
|                                                                                   |  | 2003                            |           | 2002                           
|Interest income:                                                                   |  |                                 |           |                                
|Loans                                                                              |  | $                               | 6,218,118 |                                
|Mortgage-backed securities                                                         |  |                                 | 2,500,341 |                                
|Investments and other interest-earning assets                                      |  |                                 | 296,386   |                                
|                                                                                   |  |                                 |           |                                
|Total interest income                                                              |  |                                 | 9,014,845 |                                
|                                                                                   |  |                                 |           |                                
|Interest expense:                                                                  |  |                                 |           |                                
|Deposits                                                                           |  |                                 | 2,384,953 |                                
|Advances and other borrowed money                                                  |  |                                 | 964,875   |                                
|                                                                                   |  |                                 |           |                                
|Total interest expense                                                             |  |                                 | 3,349,828 |                                
|                                                                                   |  |                                 |           |                                
|Net interest income                                                                |  |                                 | 5,665,017 |                                
|Provision for loan losses                                                          |  |                                 | 20,000    |                                
|                                                                                   |  |                                 |           |                                
|Net interest income after provision for loan losses                                |  |                                 | 5,645,017 |                                
|                                                                                   |  |                                 |           |                                
|Non-interest income:                                                               |  |                                 |           |                                
|Fees and service charges                                                           |  |                                 | 381,235   |                                
|Gain on sale of branches                                                           |  |                                 |          |                                
|Miscellaneous                                                                      |  |                                 | 329,945   |                                
|                                                                                   |  |                                 |           |                                
|Total non-interest income                                                          |  |                                 | 711,180   |                                
|                                                                                   |  |                                 |           |                                
|Non-interest expenses:                                                             |  |                                 |           |                                
|Salaries and employee benefits                                                     |  |                                 | 1,718,611 |                                
|Net occupancy expense of premises                                                  |  |                                 | 265,814   |                                
|Equipment                                                                          |  |                                 | 342,529   |                                
|Advertising                                                                        |  |                                 | 38,313    |                                
|Federal insurance premium                                                          |  |                                 | 18,611    |                                
|Miscellaneous                                                                      |  |                                 | 870,974   |                                
|                                                                                   |  |                                 |           |                                
|Total non-interest expenses                                                        |  |                                 | 3,254,852 |                                
|                                                                                   |  |                                 |           |                                
|Income before income taxes                                                         |  |                                 | 3,101,345 |                                
|Income taxes                                                                       |  |                                 | 1,249,282 |                                
|                                                                                   |  |                                 |           |                                
|Net income                                                                         |  | $                               | 1,852,063 |                                
|                                                                                   |  |                                 |           |                                
|Net income per common share:                                                       |  |                                 |           |                                
|Basic                                                                              |  | $                               | 0.37      |                                
|                                                                                   |  |                                 |           |                                
|Diluted                                                                            |  | $                               | 0.37      |                                
|                                                                                   |  |                                 |           |                                
|Dividends per common share                                                         |  | $                               | 0.20      |                                
|                                                                                   |  |                                 |           |                                
|Weighted average number of common shares and common stock equivalents outstanding: |  |                                 |           |                                
|Basic                                                                              |  |                                 | 4,974,759 |                                
|                                                                                   |  |                                 |           |                                
|Diluted                                                                            |  |                                 | 4,978,049 |                                
|                                                                                   |  |                                 |           |                                



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 September 30, |           |   | Nine Months EndedSeptember 30, |  
|--------------------------------------------------------------------- |  | -------------------------------- | --------- | - | ------------------------------ | -
|                                                                      |  | 2003                             |           |   | 2002                           |  
|Net income                                                            |  | $                                | 1,852,063 |   |                                | $
|                                                                      |  |                                  |           |   |                                |  
|Other comprehensive (loss) income, net of income taxes:               |  |                                  |           |   |                                |  
|Gross unrealized holding (loss) gain on securities available for sale |  |                                  | (47,551   | ) |                                |  
|Deferred income taxes                                                 |  |                                  | 19,000    |   |                                |  
|                                                                      |  |                                  |           |   |                                |  
|Other comprehensive (loss) income                                     |  |                                  | (28,551   | ) |                                |  
|                                                                      |  |                                  |           |   |                                |  
|Comprehensive income                                                  |  | $                                | 1,823,512 |   |                                | $
|                                                                      |  |                                  |           |   |                                |  



See notes to
consolidated financial statements.



-3-



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



|                                                                              |  | Nine Months Ended September 30, |             
|----------------------------------------------------------------------------- |  | ------------------------------- | ------------
|                                                                              |  | 2003                            |             
|Cash flows from operating activities:                                         |  |                                 |             
|Net income                                                                    |  | $                               | 5,562,763   
|Adjustments to reconcile net income to cash provided by operating activities: |  |                                 |             
|Depreciation of premises and equipment and investment in real estate          |  |                                 | 435,819     
|Accretion of deferred fees, premiums and discounts, net                       |  |                                 | 741,670     
|Provision for loan losses                                                     |  |                                 | 80,000      
|(Gain) on sales of foreclosed real estate                                     |  |                                 | (17,362     
|(Gain) on sales of branches                                                   |  |                                 |            
|(Increase) in interest receivable                                             |  |                                 | (42,158     
|Decrease (increase) in other assets                                           |  |                                 | 430,687     
|(Decrease) increase in other liabilities                                      |  |                                 | (104,675    
|Donation of capital stock                                                     |  |                                 |            
|                                                                              |  |                                 |             
|Net cash provided by operating activities                                     |  |                                 | 7,086,744   
|                                                                              |  |                                 |             
|Cash flows from investing activities:                                         |  |                                 |             
|Principal repayments on securities available for sale                         |  |                                 | 515,121     
|Purchases of securities available for sale                                    |  |                                 | (23,823     
|Purchases of investment securities held to maturity                           |  |                                 | (2,388,040  
|Proceeds from calls of investment securities held to maturity                 |  |                                 |            
|Principal repayments on mortgage-backed securities held to maturity           |  |                                 | 73,068,138  
|Purchases of mortgage-backed securities held to maturity                      |  |                                 | (160,853,754
|Net change in loans receivable                                                |  |                                 | 19,309,326  
|Proceeds from sale of account loans                                           |  |                                 |            
|Proceeds from sales of foreclosed real estate                                 |  |                                 | 172,702     
|Addition to premises and equipment                                            |  |                                 | (192,941    
|Proceeds from sale of premises and equipment                                  |  |                                 |            
|Purchase of Federal Home Loan Bank of New York stock                          |  |                                 | (446,600    
|                                                                              |  |                                 |             
|Net cash (used in) investing activities                                       |  |                                 | (70,839,871 
|                                                                              |  |                                 |             
|Cash flows from financing activities:                                         |  |                                 |             
|Net increase in deposits                                                      |  |                                 | 44,163,807  
|Cash paid for sale of deposits                                                |  |                                 |            
|Net increase in advances from Federal Home Loan Bank of New York              |  |                                 | 10,660,000  
|Net (decrease) in other borrowed money                                        |  |                                 | (23,328     
|Net (decrease) increase in payments by borrowers for taxes and insurance      |  |                                 | (225,272    
|Cash dividends paid                                                           |  |                                 | (3,053,257  
|Sale of treasury stock                                                        |  |                                 | 55,230      
|Purchase of treasury stock                                                    |  |                                 | (3,221,490  
|                                                                              |  |                                 |             
|Net cash provided by financing activities                                     |  |                                 | 48,355,690  
|                                                                              |  |                                 |             
|Net (decrease) increase in cash and cash equivalents                          |  |                                 | (15,397,437 
|Cash and cash equivalentsbeginning                                           |  |                                 | 23,857,387  
|                                                                              |  |                                 |             
|Cash and cash equivalentsending                                              |  | $                               | 8,459,950   
|                                                                              |  |                                 |             
|Supplemental information:                                                     |  |                                 |             
|Cash paid during the period for:                                              |  |                                 |             
|Income taxes                                                                  |  | $                               | 3,591,341   
|                                                                              |  |                                 |             
|Interest on deposits and borrowings                                           |  | $                               | 10,597,798  
|                                                                              |  |                                 |             



See notes to
consolidated financial statements.



-4-



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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 Corporations business is conducted principally through the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.



2.    BASIS OF PRESENTATION



The accompanying unaudited consolidated financial statements were prepared in accordance with
instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with generally accepted accounting
principles. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the consolidated financial statements have been included. The results of operations for the three
and nine month periods ended September 30, 2003, are not necessarily indicative of the results which may be expected for the entire fiscal year.



3.    NET INCOME PER COMMON SHARE



Basic net income per common share is based on the weighted average number of common shares actually outstanding. Diluted net income per
share is calculated by adjusting the weighted average number of shares of common stock outstanding to include the effect of contracts or securities exercisable of which could be converted into common stock, if dilutive, using the treasury stock
method.



-5-



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ITEM 2

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Forward-Looking Statement



This Form 10-Q may include certain forward-looking statements based on current management
expectations. The Companys actual results 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, SLA, the Companys wholly-owned subsidiary, (the Bank),
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. Further description of the risks and
uncertainties to the business are included in the Companys other filings with the Securities and Exchange Commission.



Changes in Financial Condition



The Companys assets at September 30, 2003 totalled $642.5 million, which represents an increase of $53.8 million or 9.14% as compared with $588.7 million at
December 31, 2002.



Securities available for sale at September 30, 2003
decreased $477,000 or 10.50% to $4.1 million when compared with $4.5 million at December 31, 2002. The decrease during the nine months ended September 30, 2003, resulted primarily from repayments on securities available for sale of $515,000,
sufficient to offset an increase in net unrealized gain of $17,000 and purchases of $24,000.



Investment securities held to maturity at September 30, 2003 totalled $9.5 million when compared to $7.1 million at December 31, 2002. The increase during the nine months ended resulted from purchases of $2.4 million.
Mortgage-backed securities held to maturity increased $87.3 million or 59.75% to $233.4 million at September 30, 2003 when compared to $146.1 million at December 31, 2002. The increase during the nine months ended September 30, 2003, resulted
primarily from purchases of $160.9 million sufficient to offset principal repayments of $73.1 million.



Net loans amounted to $370.3 million at September 30, 2003, as compared to $389.9 million at December 31, 2002, which represents a decrease of $19.6 million or 5.03%. The decrease during the nine months ended
September 30, 2003 resulted primarily from principal repayments exceeding loan originations.



Deposits at September 30, 2003 totalled $489.7 million as compared with $445.5 million at December 31, 2002, representing an increase of $44.2 million or 9.92%.



Advances from the Federal Home Loan Bank (FHLB) increased $10.7 million or 12.69%
to $95.0 million at September 30, 2003, when compared to $84.3 million at December 31, 2002.



Stockholders equity totalled $50.1 million and $50.8 million at September 30, 2003 and December 31, 2002, respectively. The decrease of $647,000 for the nine months ended September 30, 2003, resulted from net
income of $5.6 million, offset by the Companys repurchase of 174,673 shares of its common stock at an aggregate cost of $3.2 million, along with cash dividends paid of $3.1 million.



-6-



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Comparison of Operating Results for the Three Months Ended
September 30, 2003 and 2002



Net income increased $101,000 or 5.77% to
$1.852 million for the three months ended September 30, 2003 compared with $1.751 million for the same 2002 period. The increase in net income during the 2003 period resulted from decreases in total interest expense, provision for loan losses,
non-interest expenses and income taxes, sufficient to offset by decreases in total interest income and non-interest income.



Interest income on loans decreased by $1.083 million or 14.83% to $6.2 million during the three months ended September 30, 2003 when compared with $7.3 million for the
same 2002 period. The decrease during the 2003 period resulted from a decrease of $17.1 million in the average balance of loans outstanding along with an eighty-three basis point decrease in the yield earned on the loan portfolio. Interest on
mortgage-backed securities increased $636,000 or 34.12% to $2.5 million during the three months ended September 30, 2003 when compared with $1.9 million for the same 2002 period. The increase during the 2003 period resulted from an increase of
$102.5 million or 84.92% in the average balance of mortgage-backed securities outstanding which was sufficient to offset a decrease of 170 basis points in the yield earned on mortgage-backed securities. Interest earned on investments and other
interest-earning assets decreased by $25,000 to $296,000 during the three months ended September 30, 2003, when compared to $321,000 during the same 2002 period primarily due to a decrease of $16.0 million in the average balance outstanding, which
was sufficient to offset an increase of 107 basis points in the yield earned on such portfolio.



Interest expense on deposits decreased $467,000 or 16.37% to $2.4 million during the three months ended September 30, 2003 when compared to $2.9 million during the same 2002 period. Such decrease was primarily
attributable to a decrease of seventy-one basis points in the cost of interest-bearing deposits, sufficient to offset an increase of $47.7 million or 11.75% in the average balance of interest-bearing deposits. Interest expense on advances and other
borrowed money increased by $5,000 to $965,000 during the three months ended September 30, 2003 when compared with $960,000 during the same 2002 period, primarily due to an increase of $23.5 million in the average balance of advances outstanding
from the FHLB, sufficient to offset a 120 basis point decrease in the cost of advances and other borrowed money.



Net interest income decreased $10,000 during the three months ended September 30, 2003 when compared with the same 2002 period. Such decrease was due to a decrease in
total interest income of $472,000, partially offset by a decrease in total interest expense of $462,000. The Banks net interest rate spread decreased from 3.71% in 2002 to 3.38% in 2003. The decrease in the interest rate spread resulted from a
decrease of 107 basis points in the yield earned on interest-earning assets, sufficient to offset a seventy-four basis points decrease in the cost of interest-bearing liabilities.



During the three months ended September 30, 2003 and 2002, the Bank provided $20,000 and $125,000, respectively, as a provision for loan
losses. The allowance for loan losses is based on managements evaluation of the risk inherent in its loan portfolio and gives due consideration to the changes in general market conditions and in the nature and volume of the Banks loan
activity. The Bank intends to continue to provide for loan losses based on its periodic review of the loan portfolio and general market conditions. At September 30, 2003 and 2002, the Banks non-performing loans, which were delinquent ninety
days or more, totalled $1.8 million or 0.28% of total assets and $2.8 million or 0.50% of total assets, respectively. At September 30, 2003, $537,000 of non-performing loans were accruing interest



-7-



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Comparison of Operating Results for the Three Months Ended
September 30, 2003 and 2002 (Contd.)



and $1.3 million were on
nonaccrual status. The non-performing loans primarily consist of one-to-four family mortgage loans. During the three months ended September 30, 2003 and 2002, the Bank charged off loans aggregating $61,000 and $36,000, respectively. The allowance
for loan losses amounted to $2.5 million at September 30, 2003, representing 0.68% of total loans and 140.57% of loans delinquent ninety days or more, and $2.5 million at September 30, 2002, representing 0.64% of total loans and 88.89% of loans
delinquent ninety days or more.



Non-interest income decreased $232,000 or
24.60% to $711,000 during the three months ended September 30, 2003 from $943,000 during the same 2002 period. During the three months ended September 30, 2002, the Bank sold deposits of $21.8 million, furniture, fixtures and leasehold improvement
of $221,000 and account loans of $148,000 at its two Brick, New Jersey branch offices to another financial institution. As a result of the sale, the Bank recognized a net gain of $479,000. During three months ended September 30, 2003, fees and
service charges increased $60,000 and miscellaneous income increased $186,000.



Non-interest expenses decreased by $2,000 to $3.255 million during the three months ended September 30, 2003 when compared with $3.257 million during the same 2002 period. Salaries and employee benefits and occupancy decreased $131,000 and
$10,000, respectively, sufficient to offset increases in equipment, advertising and miscellaneous expenses of $9,000, $9,000 and $121,000, respectively, during the 2003 period when compared with the same 2002 period.



Income taxes totalled $1.2 million and $1.5 million during the three months ended September
30, 2003 and 2002, respectively. The 2002 period included the retroactive adjustment of an increase in the state income tax rate from 3.00% to 9.00%.



Comparison of Operating Results for the Nine Months Ended September 30, 2003 and 2002



Net income increased $55,000 to $5.563 million for the nine months ended September 30, 2003 compared with $5.508 million for the same 2002
period. The increase in net income during the 2003 period resulted from decreases in total interest expense and provision for loan losses sufficient to offset decreases in total interest income and non-interest income, along with increases in
non-interest expenses and income taxes.



Interest income on loans decreased by
$2.3 million or 10.41% to $19.8 million during the nine months ended September 30, 2003 when compared with $22.1 million for the same 2002 period. The decrease during the 2003 period resulted from a decrease of $7.0 million in the average balance of
loans outstanding along with a sixty-six basis point decrease in the yield earned on the loan portfolio. Interest on mortgage-backed securities increased $1.1 million or 18.64% to $7.0 million during the nine months ended September 30, 2003 when
compared with $5.9 million for the same 2002 period. The increase during the 2003 period resulted from an increase of $64.7 million in the average balance of mortgage-backed securities outstanding, which was sufficient to offset a decrease of 136
basis points in the yield earned on mortgage-backed securities. Interest earned on investments and other interest-earning assets increased by $157,000 or 22.40% to $858,000 during the nine months ended September 30, 2003, when compared to $701,000
during the same 2002 period primarily due to increases of fifty-seven basis points in the yield earned on such portfolio and $931,000 in the average balance of such assets outstanding.



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Comparison of Operating Results for the Nine Months Ended
September 30, 2003 and 2002 (Contd.)



Interest expense on deposits
decreased $1.1 million or 12.64% to $7.6 million during the nine months ended September 30, 2003 when compared to $8.7 million during the same 2002 period. Such decrease was primarily attributable to a decrease of sixty-three basis points in the
cost of interest-bearing deposits, sufficient to offset an increase of $42.5 million in the average balance of interest-bearing deposits. Interest expense on advances and other borrowed money increased by $153,000 or 5.51% to $2.9 million during the
nine months ended September 30, 2003 when compared with $2.8 million during the same 2002 period which was primarily due to an increase of $17.4 million in the average balance of advances outstanding from the FHLB, sufficient to offset a seventy-six
basis point decrease in the cost of advances and other borrowed money.



Net
interest income decreased $28,000 during the nine months ended September 30, 2003 when compared with the same 2002 period. Such decrease was due to a decrease in total interest income of $1.0 million, partially offset by a decrease in total interest
expense of $983,000. The Banks net interest rate spread decreased from 3.83% in 2002 to 3.53% in 2003. The decrease in the interest rate spread resulted from a decrease of ninety-two basis points in the yield earned on interest-earning assets
sufficient to offset a sixty-two basis point decrease in the cost of interest-bearing liabilities.



During the nine months ended September 30, 2003 and 2002, the Bank provided $80,000 and $560,000, respectively, as a provision for loan losses. The allowance for loan losses is based on managements evaluation of
the risk inherent in its loan portfolio and gives due consideration to the changes in general market conditions and in the nature and volume of the Banks loan activity. The Bank intends to continue to provide for loan losses based on its
periodic review of the loan portfolio and general market conditions. During the nine months ended September 30, 2003 and 2002, the Bank charged off loans aggregating $112,000 and $214,000, respectively.



Non-interest income decreased $27,000 to $1.951 million during the nine months ended
September 30, 2003 from $1.978 million during the same 2002 period. The decrease resulted from a decrease in gain on sale of branches of $479,000, which was sufficient to offset increases in fees and service charges of $129,000 and miscellaneous
income of $322,000.



Non-interest expenses increased by $214,000 to $9.7
million during the nine months ended September 30, 2003 when compared with $9.5 million during the same 2002 period. Equipment and miscellaneous expenses increased $62,000 and $414,000, respectively, which was sufficient to offset decreases in
salaries and employee benefits, occupancy, and advertising of $216,000, $45,000 and $1,000, respectively, during the 2003 period when compared with the same 2002 period.



Income taxes totalled $3.8 million and $3.6 million during the nine months ended September 30, 2003 and 2002, respectively. The increase
during the 2003 period resulted from increases in pre-tax income.



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Liquidity and Capital Resources



The Bank is required to maintain levels of liquid assets under the Office of Thrift
Supervision (the OTS) regulations sufficient to ensure the Banks safe and sound operation. The Banks liquidity averaged 4.38% during the month of September 2003. The Bank adjusts its liquidity levels in order to meet funding
needs for deposit outflows, payment of real estate taxes from escrow accounts on mortgage loans, repayment of borrowings, when applicable, and loan funding commitments. The Bank also adjusts its liquidity level as appropriate to meet its
asset/liability objectives.



The Banks primary sources of funds are
deposits, amortization and prepayments of loans and mortgage-backed securities principal, FHLB advances, maturities of investment securities and funds provided from operations. While scheduled loan and mortgage-backed securities amortization and
maturing investment securities are a relatively predictable source of funds, deposit flow and loan and mortgage-backed securities prepayments are greatly influenced by market interest rates, economic conditions and competition.



The Banks liquidity, represented by cash and cash equivalents, is a product of its
operating, investing and financing activities.



Cash was generated by operating
activities during the nine months ended September 30, 2003 and 2002. The primary source of cash was net income. Cash dividends paid during the nine months ended September 30, 2003 and 2002 amounted to $3.1 million and $2.9 million, respectively.



The primary sources of investing activity are lending and the purchase of
mortgage-backed securities. Net loans amounted to $370.3 million and $389.9 million at September 30, 2003 and December 31, 2002, respectively. Securities available for sale totalled $4.1 million and $4.5 million at September 30, 2003 and December
31, 2002, respectively. Mortgage-backed securities held to maturity totalled $233.4 million and $146.1 million at September 30, 2003 and December 31, 2002, respectively. In addition to funding new loan production and mortgage-backed securities
purchases through operating and financing activities, such activities were funded by principal repayments on existing loans and mortgage-backed securities.



Liquidity management is both a daily and long-term function of business management. Excess liquidity is generally invested in short-term investments, such as federal
funds and interest-bearing deposits. If the Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the FHLB which provide an additional source of funds. At September 30, 2003, advances from the FHLB
amounted to $95.0 million.



The Bank anticipates that it will have sufficient
funds available to meet its current loan commitments. At September 30, 2003, the Bank has outstanding commitments to originate loans of $29.2 million. Certificates of deposit scheduled to mature in one year or less at September 30, 2003, totalled
$167.8 million. Management believes that, based upon its experience and the Banks deposit flow history, a significant portion of such deposits will remain with the Bank.



Under OTS regulations, three separate measurements of capital adequacy (the Capital Rule) are required. The Capital Rule
requires each savings institution to maintain tangible capital equal to at least 1.5% and core capital equal to 4.0% of its adjusted total assets. The Capital Rule further requires each savings institution to maintain total capital equal to at least
8.0% of its risk-weighted assets.



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

MANAGEMENTS DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF
OPERATIONS



Liquidity and Capital Resources (Contd.)



The following table sets forth the Banks capital position at
September 30, 2003, as compared to the minimum regulatory capital requirements:



|                                                |  | Actual |        |       | Minimum CapitalRequirements |   |        | Under PromptCorrective Actions Provisions |       
|----------------------------------------------- |  | ------ | ------ | ----- | --------------------------- | - | ------ | ----------------------------------------- | ------
|                                                |  | Amount |        | Ratio |                             |   | Amount |                                           | Ratio 
|Total Capital(to risk-weighted assets)          |  | $      | 51,338 |       | 16.14                       | % |        | $                                         | 25,441
|Tier 1 Capital(to risk-weighted assets)         |  |        | 48,956 |       | 15.39                       | % |        |                                           |      
|Core (Tier 1) Capital(to adjusted total assets) |  |        | 48,956 |       | 7.63                        | % |        |                                           | 25,667
|Tangible Capital(to adjusted total assets)      |  |        | 48,956 |       | 7.63                        | % |        |                                           | 9,625 





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ITEM 3

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK



Management of Interest Rate Risk. The ability to maximize net interest income is largely dependent upon the achievement of a positive interest rate spread that can
be sustained during fluctuations in prevailing interest rates. Interest rate sensitivity is a measure of the difference between amounts of interest-earning assets and interest-bearing liabilities which either reprice or mature within a given period
of time. The difference, or the interest rate repricing gap, provides an indication of the extent to which an institutions interest rate spread will be affected by changes in interest rates. A gap is considered positive when the
amount of interest-rate sensitive assets exceeds the amount of interest-rate sensitive liabilities, and is considered negative when the amount of interest rate sensitive liabilities exceeds the amount of interest-rate sensitive assets. Generally,
during a period of rising interest rates, a negative gap within shorter maturities would adversely affect net interest income, while a positive gap within shorter maturities would result in an increase in net interest income, and during a period of
falling interest rates, a negative gap within shorter maturities would result in an increase in net interest income while a positive gap within shorter maturities would result in a decrease in net interest income.



Because the Banks interest-bearing liabilities which mature or reprice within short
periods exceed its interest-earning assets with similar characteristics, material and prolonged increases in interest rates generally would adversely affect net interest income, while material and prolonged decreases in interest rates generally
would have a positive effect on net interest income.



The Banks current
investment strategy is to maintain an overall securities portfolio that provides a source of liquidity and that contributes to the Banks overall profitability and asset mix within given quality and maturity considerations. Securities
classified as available for sale provide management with the flexibility to make adjustments to the portfolio given changes in the economic or interest rate environment, to fulfill unanticipated liquidity needs, or to take advantage of alternative
investment opportunities.



Net Portfolio Value. The Banks interest
rate sensitivity is monitored by management through the use of the OTS model which estimates the change in the Banks net portfolio value (NPV) over a range of interest rate scenarios. NPV is the present value of expected cash flows
from assets, liabilities, and off-balance sheet contracts. The NPV ratio, under any interest rate scenario, is defined as the NPV in that scenario divided by the market value of assets in the same scenario. The OTS produces its analysis based upon
data submitted on the Banks quarterly Thrift Financial Reports. The following table sets forth the Banks NPV as of June 30, 2003, the most recent date the Banks NPV was calculated by the OTS.



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PAMRAPO BANCORP, INC. AND SUBSIDIARIES

QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK



|Change in Interest Rates In Basis Points (Rate Shock) |        | Net Portfolio Value    |               | NPV as Percent of Portfolio Value of Assets
|----------------------------------------------------- | ------ | ---------------------- | ------------- | -------------------------------------------
|                                                      | Amount |                        | Dollar Change |                                            
|                                                      |        | (Dollars in Thousands)
|300                                                   |        | $43,406                |               | $(49,737)                                  
|200                                                   |        | 61,121                 |               | (32,021)                                   
|100                                                   |        | 79,669                 |               | (13,474)                                   
|Static                                                |        | 93,143                 |               |                                           
|-100                                                  |        | 98,370                 |               | 5,228                                      



Certain shortcomings are inherent in
the methodology used in the above interest rate risk measurements. Modeling changes in NPV require the making of certain assumptions which may or may not reflect the manner in which actual yields and costs respond to changes in market interest
rates. In this regard, the NPV model presented assumes that the composition of the Banks interest sensitive assets and liabilities existing at the beginning of a period remains constant over the period being measured and also assumes that a
particular change in interest rates is reflected uniformly across the yield curve regardless of the duration to maturity or repricing of specific assets and liabilities. Accordingly, although the NPV measurements and net interest income models
provide an indication of the Banks interest rate risk exposure at a particular point in time, such measurements are not intended to and do not provide a precise forecast of the effect of changes in market interest rates on the Banks net
interest income and will differ from actual results.



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ITEM 4

PAMRAPO BANCORP, INC. AND SUBSIDIARIES

CONTROLS AND PROCEDURES



As of the end of the period covered by this report, based on an evaluation of the Companys disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15e under the Securities and Exchange Act of 1934), each of the Chief
Executive Officer and the Chief Financial Officer of the Company has concluded that the Companys disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in its Exchange Act reports is
recorded, processed, summarized and reported within the applicable time periods specified by the SECs rules and forms.



There were no significant changes in the Companys internal controls or in any other factors that could significantly affect those controls subsequent to the date of
the most recent evaluation of the Companys internal controls by the Company, including any corrective actions with regard to any significant deficiencies or material weaknesses.



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PAMRAPO BANCORP, INC.



PART II



|ITEM 1. |  | Legal Proceedings
|------- |  | -----------------



Neither the Company nor the Bank are involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of
business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition of the Company and the Bank.



|ITEM 2. |  | Changes in Securities
|------- |  | ---------------------



Not applicable.



|ITEM 3. |  | Defaults Upon Senior Securities
|------- |  | -------------------------------



Not applicable.



|ITEM 4. |  | Submission of Matters to a Vote of Security Holders
|------- |  | ---------------------------------------------------



Not applicable.



|ITEM 5. |  | Exhibits and Reports on Form 8-K
|------- |  | --------------------------------



(a) The following Exhibits are filed as part of this report.



|     | 
|---- | 
|3.1  | 
|     | 
|3.2  | 
|     | 
|11.0 | 
|     | 
|31.1 | 
|     | 
|31.2 | 
|     | 
|32.1 | 
|     | 
|32.2 | 



| | * | Incorporated herein by reference to 10-K Annual Report for the fiscal year ended December 31, 2000, filed with the Securities and Exchange Commission on March 30, 2001, Commission
File No. 000-18014.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



(b) Reports on Form 8-K



None.







-15-



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SIGNATURES



Pursuant to the requirements of the
Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|      |  |                   |  | PAMRAPO BANCORP, INC.
|----- |  | ----------------- |  | ---------------------
|      |  |                   |  |                      
|Date: |  | November 12, 2003 |  |                      
|      |  |                   |  |                      
|      |  |                   |  |                      
|      |  |                   |  |                      
|Date: |  | November 12, 2003 |  |                      
|      |  |                   |  |                      
|      |  |                   |  |                      



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