Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board: PATD), the parent company of The Patapsco Bank, announces an unaudited net loss applicable to common shareholders of $2.9 million or $1.49diluted loss per share for its nine months ended March 31, 2012 as compared to an unaudited net loss of $909,000 or $0.47diluted loss per share for same period of the prior year.

The Company announced an unaudited net loss of $2.0 million or $1.01 diluted loss per share for the third quarter of its fiscal year ending June 30, 2012 compared to an unaudited net loss of $474,000 or $0.24 diluted loss per share for the comparable period of the prior year.

The Company's results were significantly impacted by a $2.4 million provision for loan losses incurred during the quarter. This amount is $1.4 million or 137% higher than the provision incurred during the quarter ended March 31, 2011. Non-performing assets were 4.46% of total assets at March 31, 2012 compared to 4.40% at June 30, 2011 and 5.18% at March 31, 2011. The provision for loan losses for the nine months ended March 31, 2012 was $4.0 million a 73% increase compared to $2.3 million recorded in the comparable period last year. The ratio of the allowance for loan losses to total loans was 2.16% at March 31, 2012 compared to 2.25% at June 30, 2011 and 2.18% at March 31, 2011.

As of March 31, 2012, Patapsco Bancorp, Inc. reported total assets of $255 million, deposits of $227 million and stockholders' equity of $11.7 million compared to $265 million, $231 million and $14.4 million at June 30, 2011, the Company's previous fiscal year-end. The Patapsco Bank remains well capitalized at all levels.

Attached hereto is a summary of the unaudited financial highlights for the periods mentioned.

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

When used in this Press Release, the words or phrases "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties including changes in economic conditions in Patapsco Bancorp's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in Patapsco Bancorp's market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Patapsco Bancorp wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Patapsco Bancorp wishes to advise readers that the factors listed above could affect Patapsco Bancorp's financial performance and could cause Patapsco Bancorp's actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. Patapsco Bancorp does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

       

FINANCIAL HIGHLIGHTS (unaudited)

Patapsco Bancorp, Inc. and Subsidiary

 

               
 
For the Nine Months Ended For the Three Months Ended
March 31, March 31,
(Dollars in thousands, except per share data)     2012       2011       2012       2011  
 
OPERATING RESULTS:
Interest Income $ 8,657 $ 9,576 $ 2,837 $ 3,062
Interest Expense   2,412     3,259     741     941  
Net Interest Income 6,245 6,317 2,096 2,121
Provision For Loan Losses   3,964     2,298     2,368     1,000  

Net Interest Income After Provision for Loan Losses

2,281 4,019 (272 ) 1,121
Other Noninterest Income 614 696 177 281
Noninterest Expense 5,550 5,754 1,799 2,031
Income Tax Benefit   0     (421 )   0     (252 )
Net Loss (2,655 ) (618 ) (1,894 ) (377 )
Preferred Stock Dividends   291     291     97     97  
Net Loss Available for Common Shareholders   ($2,946 )   ($909 )   ($1,991 )   ($474 )
 
PER SHARE DATA:
Net Loss per Common Share, Basic ($1.49 ) ($0.47 ) ($1.01 ) ($0.24 )
Net Loss per Common Share, Diluted ($1.49 ) ($0.47 ) ($1.01 ) ($0.24 )
 
Book Value per Common Share $ 2.78 $ 5.32
Tangible Book Value per Common Share (1) $ 2.73 $ 5.24
Period-End Common Stock Price $ 0.60 $ 1.60
Common Stock Price as a Percentage of Tangible Book Value 21.98 % 30.53 %
 
PERFORMANCE RATIOS: (2)
Return on Average Assets -1.37 % -0.30 % -2.97 % -0.56 %
Return on Average Equity -24.34 % -4.65 % -54.67 % -7.69 %
Net Interest Margin 3.36 % 3.32 % 3.36 %
Net Interest Spread 3.22 % 3.20 % 3.22 %
 
 
At
March 31, June 30,
  2012     2011  
BALANCES:
Net Loans $ 177,855 $ 182,570
Total Assets $ 254,829 $ 264,630
Deposits $ 227,324 $ 231,306
Borrowings $ 14,000 $ 17,000
Stockholders' Equity $ 11,701 $ 14,353
 
CAPITAL & CREDIT QUALITY RATIOS:
Bank Leverage ratio 6.67 % 7.26 %
Bank Tier 1 Risked Based ratio 10.71 % 11.67 %
Bank Total Risked Based ratio 11.98 % 12.94 %
Allowance For Loan Losses to Total Loans 2.16 % 2.25 %
Nonperforming Assets to Total Assets 4.46 % 4.40 %
Allowance For Loan Losses to Nonperforming Loans 42.78 % 42.17 %
 
 
(1) Tangible book value per share deducts intangible assets from common equity.
(2) Amounts for the nine and three month periods ended March 31, 2012 and 2011 are annualized.

Patapsco Bancorp, Inc.
Michael J. Dee, President, 410-285-9313