Patapsco Bancorp, Inc. Announces 1st Quarter Earnings

Business Wire, Oct 20, 2005

BALTIMORE -- Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board:PATD), the parent company of The Patapsco Bank, announced earnings of $313,000 or $.16 fully diluted earnings per share for the Company's first quarter ended September 30, 2005 compared to earnings of $334,000 or $.17 fully diluted earnings per share for the comparable period in the prior year. This represented a 6.3% decrease in earnings for the period and a 5.9% decrease in fully diluted earnings per share.

The Company's return on average assets and return on average equity were .61% and 7.09% respectively, for the quarter ended September 30, 2005 on an annualized basis.

As of September 30, 2005, Patapsco Bancorp, Inc. reported assets of $207 million, loans of $166 million and total stockholders' equity of $17.8 million compared to assets of $205 million, loans of $161 million and total stockholders' equity $17.6 million at June 30, 2005, 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 the end of the Company's first quarter representing no change from the Company's previous fiscal year end.

Attached hereto is a summary of the unaudited financial highlights for the period and a comparison to the same period in 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.

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

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

OPERATING RESULTS:
Interest income                                   $3,046       $2,965
Interest expense                                   1,025          937
                                            -------------  -----------
Net interest income                                2,021        2,028
Provision for loan losses                             20           35
                                            -------------  -----------
Net interest income after provision for
 loan losses                                       2,001        1,993
Other Noninterest income                             180          130
Gain on Sale of office building                       63            0
Noninterest expense                                1,744        1,602
Provision (benefit) for income taxes                 187          187
                                            -------------  -----------
Net income                                          $313         $334
                                            =============  ===========

Net income per share, diluted                      $0.16        $0.17
Net income per share, basic                        $0.18        $0.20

PER SHARE DATA: (End of Period)
Book Value per Common share                       $10.90       $10.46
Tangible Book value per share                      $8.06        $7.61
Period End Common Stock Price                     $11.00       $12.45
Stock Price as a percentage of tangible
 book value                                       136.48%      163.60%

PERFORMANCE RATIOS:   (2)
Return on average assets                            0.61%        0.64%
Return on average equity                            7.09%        7.92%
Net interest margin                                 4.24%        4.17%
Net interest spread                                 4.01%        3.96%

                                            --------------------------
                                                        At
                                            --------------------------
                                            September 30,    June 30
                                                2005          2005
                                            --------------------------
BALANCES
Net Loans                                       $165,636     $161,094
Total Assets                                    $207,247     $204,704
Deposits                                        $164,086     $164,320
Borrowings                                       $23,899      $20,233
Stockholders' Equity                             $17,841      $17,587

CAPITAL  & CREDIT QUALITY RATIOS
Stockholders' equity to total assets                8.61%        8.59%
Allowance for loan losses to total loans            0.57%        0.58%
Nonperforming assets to total assets                0.05%        0.05%


(1) September 2005 figures are unaudited

(2) Amounts for the three month periods ended September 30, 2005 and
    2004 are annualized.