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

Business Wire, July 19, 2006

BALTIMORE -- Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board:PATD), the parent company of The Patapsco Bank, announces its unaudited earnings of $1,388,000 or $.72 diluted earnings per share for its fiscal year ending June 30, 2006 as compared to audited net income of $1,346,000 or $.70 diluted earnings per share for the prior year. This represents a $42,000 or a 3% increase in net income and diluted earnings per share.

For the quarter ended June 30, 2006 the Company earned $422,000 or $.22 diluted earnings per share as compared to $405,000 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 .64% and 7.75% respectively.

As of June 30, 2006, Patapsco Bancorp, Inc. reported assets of $228 million and total stockholders' equity of $18.3 million compared to $205 million and $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 0.10% of total assets at year-end compared to .05% 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.

Attached hereto 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)              2006 (1)   2005    2006 (1)   2005
----------------------------------------------------------------------

OPERATING RESULTS:
Interest income                   $13,556  $11,811    $3,685   $2,900
Interest expense                    4,949    3,754     1,468      932
                                 --------- -------- --------- --------
Net interest income                 8,607    8,057     2,217    1,968
Provision for loan losses              65      225        25       40
                                 --------- -------- --------- --------
Net interest income after
 provision for loan losses          8,542    7,832     2,192    1,928
Gain on sale of investments             2        0         0        0
Other noninterest income              869      684       228      199
Noninterest expense                 7,202    6,411     1,749    1,495
Provision for income taxes            823      759       249      227
                                 --------- -------- --------- --------
Net income                         $1,388   $1,346      $422     $405
                                 ========= ======== ========= ========

Net income per share, diluted       $0.72    $0.70     $0.22    $0.21
Net income per share, basic         $0.80    $0.81     $0.23    $0.25

PER SHARE DATA: (End of Period)
Book Value per Common Share         $9.87    $9.61
Tangible Book Value per Common
 Share(2)                           $8.06    $7.75
Common Stock Price at June 30      $10.85   $11.80
Stock Price as a percentage of
 tangible book value               134.62%  152.26%

PERFORMANCE RATIOS:
Return on average assets             0.64%    0.66%
Return on average equity             7.75%    7.87%
Net interest margin                  4.22%    4.21%
Net interest spread                  3.96%    4.03%

                                    At       At
                                 ------------------
                                  June 30  June 30
                                  2006 (1)   2005
                                 ------------------
BALANCES
Net Loans                        $190,589 $161,094
Total Assets                     $228,070 $204,704
Deposits                         $166,833 $164,320
Borrowings                        $40,050  $20,233
Stockholder's Equity              $18,288  $17,587

CAPITAL & CREDIT QUALITY RATIOS
Stockholder's equity to total
 assets                              8.02%    8.59%
Allowance for loan losses to
 total loans                         0.52%    0.58%
Nonperforming assets to total
 assets                              0.11%    0.05%


(1) June 2006 figures are unaudited.

(2) Tangible book value per share deducts goodwill from common equity.