Patapsco Bancorp, Inc. Announces Annual Earnings and Earnings for the 4th Quarter

Business Wire, July 21, 2005

BALTIMORE -- Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board:PATD), the parent company of The Patapsco Bank, announces its unaudited earnings of $1,346,000 or $.70 diluted earnings per share for its fiscal year ending June 30, 2005 as compared to audited net income of $1,469,000 or $.77 diluted earnings per share for the prior year. This represents a $123,000 or 8.4% decrease in net income and a 9.1% decrease in diluted earnings per share.

For the quarter ended June 30, 2005 the Company earned $405,000 or $.21 diluted earnings per share as compared to $409,000 or $.21 diluted earnings per share for the prior year comparable period.

For the year the Company's return on average assets and return on average equity were .66% and 7.87% respectively.

As of June 30, 2005, Patapsco Bancorp, Inc. reported assets of $205 million and total stockholders' equity of $17.6 million compared to $211 million and $16.4 million at June 30, 2004, the Company's previous fiscal year end.

In regards to credit quality at the Company's principal subsidiary, The Patapsco Bank, non-performing assets were 0.05% of total assets at year-end compared to .24% the previous year.

The Patapsco Bank serves its community from its Baltimore County offices located in Dundalk, Parkville, Glen Arm and Carney and its Baltimore City office located in Hampden.

Listed below is a summary of the unaudited financial highlights for the periods.

FINANCIAL HIGHLIGHTS (unaudited)
Patapsco Bancorp, Inc. and Subsidiary
----------------------------------------------------------------------

                                                       For the Three
                                 For the Year Ended    Months Ended
                                       June 30            June 30
                                 ------------------- -----------------
(Dollars in thousands, except
 per share data) (1)              2005 (1)   2004     2005 (1)  2004
----------------------------------------------------------------------

OPERATING RESULTS:
Interest income                  $ 11,811  $ 10,519  $  2,900  $2,938
Interest expense                    3,754     3,726       932     981
                                 --------- --------- --------- -------
Net interest income                 8,057     6,793     1,968   1,957
Provision for loan losses             225        42        40       0
                                 --------- --------- --------- -------
Net interest income after
 provision for loan losses          7,832     6,751     1,928   1,957
Gain on sale of loans                   0        13         0       0
Gain on sale of investments             0        99         0       0
Other noninterest income              684       467       199     150
Noninterest expense                 6,411     5,009     1,495   1,465
Provision for income taxes            759       852       227     233
                                 --------- --------- --------- -------
Net income                       $  1,346  $  1,469  $    405  $  409
                                 ========= ========= ========= =======

Net income per share, diluted    $   0.70  $   0.77  $   0.21  $ 0.21
Net income per share, basic      $   0.81  $   0.92  $   0.25  $ 0.26

PER SHARE DATA: (End of Period)
Book Value per Common Share      $  10.78  $  10.04
Tangible Book Value per Common
 Share                           $   7.93  $   7.52
Common Stock Price at June 30    $  11.80  $  13.47
Stock Price as a percentage of
 tangible book value               148.80%   179.08%

PERFORMANCE RATIOS:
Return on average assets             0.66%     0.84%
Return on average equity             7.87%     9.11%
Net interest margin                  4.21%     4.06%
Net interest spread                  4.03%     3.93%

                                    At        At
                                 --------- ---------
                                  June 30   June 30
                                  2005 (1)   2004
                                 --------- ---------
BALANCES
Net  Loans                       $161,094  $151,412
Total Assets                     $204,704  $210,616
Deposits                         $164,320  $168,132
Borrowings                       $ 20,233  $ 22,900
Stockholder's Equity             $ 17,587  $ 16,380

CAPITAL & CREDIT QUALITY RATIOS
Stockholder's equity to total
 assets                              8.59%     7.78%
Allowance for loan losses to
 total loans                         0.58%     0.61%
Nonperforming assets to total
 assets                              0.05%     0.24%


(1) June 2005 figures are unaudited.