Patapsco Bancorp, Inc. Announces Quarterly and Year to Date Earnings

Business Wire, Jan 19, 2006

BALTIMORE -- Patapsco Bancorp, Inc. (OTC Bulletin Board:PATD), the parent company of The Patapsco Bank, announced that earnings for the first half of the Company's fiscal year ended December 31, 2005 were $664,000 or $.35 diluted earnings per share, compared to net income of $694,000 or $.36 diluted earnings per share for the prior year comparable period. E[acute accent]For the second quarter of the Company's fiscal year 2006, ended December 31, 2005 the Company announced earnings of $351,000 or $.18 diluted earnings per share as compared to net income of $360,000 or $.19 diluted earnings per share for the prior year comparable period. This represented decreases of 2.5% in earnings and 5.3% in diluted earnings per share. E[acute accent]The Company's return on average assets and return on average equity were .64% and 7.48% respectively, for the six months ended December 31, 2005 on an annualized basis. This compared to a return on average assets of .68% and a return on average equity of 8.21% in the same period during the previous year. E[acute accent]As of December 31, 2005, Patapsco Bancorp, Inc. reported assets of $220 million and total stockholders' equity of $17.9 million compared to $205 million and $17.6 million at June 30, 2005, the Company's last fiscal year end.

E[acute accent]The Patapsco Bank serves Baltimore City and the surrounding counties from its offices located in Carney, Dundalk, Glen Arm, Hampden and Parkville.

E[acute accent]Attached hereto is a summary of the unaudited financial highlights for the periods discussed herein.

FINANCIAL HIGHLIGHTS (unaudited)
Patapsco Bancorp, Inc. and Subsidiary
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                                                        For the Three
                                   For the Six Months    Months Ended
                                       December 31       December 31
(Dollars in thousands, except per  ------------------- ---------------
 share data)                         2005      2004     2005    2004
----------------------------------------------------------------------

OPERATING RESULTS:
Interest income                      $6,373    $5,934  $3,327  $2,969
Interest expense                      2,166     1,878   1,141     941
                                   --------- --------- ------- -------
Net interest income                   4,207     4,056   2,186   2,028
Provision for loan losses                40        85      20      50
                                   --------- --------- ------- -------
Net interest income after
 provision for loan losses            4,167     3,971   2,166   1,978
Other Noninterest income                441       309     198     179
Noninterest expense                   3,545     3,195   1,800   1,593
Provision for income taxes              399       391     213     204
                                   --------- --------- ------- -------
Net income                             $664      $694    $351    $360
                                   ========= ========= ======= =======

PER SHARE DATA: (1)
Net income per share, basic           $0.39     $0.42   $0.21   $0.22
Net income per share, diluted         $0.35     $0.36   $0.18   $0.19

Book Value per common share          $10.48    $10.28
Tangible Book Value per Share (1)     $7.87     $7.55
Period End Stock Price               $10.61    $14.00
Stock Price as a percentage of
 tangible book value                 134.82%   185.43%

PERFORMANCE RATIOS: (2)
Return on average assets               0.64%     0.68%   0.66%   0.70%
Return on average equity               7.48%     8.21%   7.87%   8.45%
Net interest margin                    4.31%     4.20%   4.39%   4.25%
Net interest spread                    4.07%     4.00%   4.14%   4.07%

                                           At
                                   -------------------
                                    Dec. 31   June 30
                                     2005      2005
                                   -------------------
BALANCES
Net Loans                          $180,124  $161,094
Total Assets                       $220,450  $204,704
Deposits                           $167,254  $164,320
Borrowings                          $33,550   $20,233
Stockholder's Equity                $17,924   $17,587

CAPITAL & CREDIT QUALITY RATIOS
Stockholder's equity to total
 assets                                8.13%     8.59%
Allowance for loan losses to total
 loans                                 0.53%     0.66%
Nonperforming assets to total
 assets                                0.10%     0.05%

(1) Tangible book value per share deducts goodwill from common equity
    and assumes all preferred shares convert to common.
(2) Amounts for the  three and six  month periods ended December  31,
    2005 and 2004 are annualized.