Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board: PATD), the parent company of The Patapsco Bank, announces an unaudited net income applicable to common shareholders of $893,000 or $0.45diluted income per share for its nine months ended March 31, 2013 as compared to an unaudited net loss of $2,946,000 or $1.49diluted loss per share for same period of the prior year.

The Company announced an unaudited net income applicable to common shareholders of $292,000 or $0.15 diluted income per share for the third quarter of its fiscal year ended June 30, 2013 compared to an unaudited net loss of $2.0 million or $1.01 diluted loss per share for the comparable period of the prior year.

The improvement in the Company's year-to-date and quarterly results was the result of a lower provision for loan losses required in the current periods as compared to similar periods in the prior year. There was a negative provision for loan losses of $399,000 for the quarter ending March 31, 2013 compared to $2.4 million for the same quarter last year. Non-interest expenses increased due to the provision for losses on and cost of real estate acquired through foreclosure increasing to $355,000 for the quarter ending March 31, 2013 as compared to $22,000 for the similar period last year.

Non-performing assets improved as they represented 2.44% of total assets at March 31, 2013 as compared to 4.04% at June 30, 2012. The ratio of the allowance for loan losses was 2.19% of total loans at March 31, 2013 compared to 2.11% at June 30, 2012. The coverage ratio improved as the allowance for loan losses was 73.00% of non-performing loans at March 31, 2013 versus 42.23% at June 30, 2012.

As of March 31, 2013, Patapsco Bancorp, Inc. reported assets of $234.8 million, deposits of $204.9 million and total stockholders' equity of $14.2 million compared to $254.4 million, $225.4 million and $12.6 million at June 30, 2012, 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.

Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. Accordingly, the financial information in this announcement is subject to change.

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)     2013       2012       2013       2012  
 
OPERATING RESULTS:
Interest Income $ 7,849 $ 8,657 $ 2,525 $ 2,837
Interest Expense   1,657     2,412     470     741  
Net Interest Income 6,192 6,245 2,055 2,096
Provision For Loan Losses   (455 )   3,964     (399 )   2,368  
Net Interest Income After Provision
for Loan Losses 6,647 2,281 2,454 (272 )
Other Noninterest Income 505 614 146 177
Noninterest Expense   5,968     5,550     2,211     1,799  
Net Income (Loss) 1,184 (2,655 ) 389 (1,894 )
Preferred Stock Dividends   291     291     97     97  
Net Income (Loss) Available for Common Shareholders $ 893     ($2,946 ) $ 292     ($1,991 )
 
PER SHARE DATA:
Net Income (Loss) per Common Share, Basic $ 0.45 ($1.49 ) $ 0.15 ($1.01 )
Net Income (Loss) per Common Share, Diluted $ 0.45 ($1.49 ) $ 0.15 ($1.01 )
 
Book Value per Common Share $ 4.02 $ 2.78
Tangible Book Value per Common Share (1) $ 3.99 $ 2.73
Period-End Common Stock Price $ 2.25 $ 0.60
Common Stock Price as a Percentage of Tangible Book Value 56.39 % 21.98 %
 
PERFORMANCE RATIOS: (2)
Return on Average Assets 0.65 % -1.37 % 0.66 % -2.97 %
Return on Average Equity 11.62 % -24.34 % 11.19 % -54.67 %
Net Interest Margin 3.54 % 3.36 % 3.65 % 3.47 %
Net Interest Spread 3.41 % 3.22 % 3.52 % 3.33 %
 
ALLOWANCE FOR LOAN LOSSES DATA:
Balance at beginning of period $ 3,741 $ 4,194 $ 3,573 $ 4,919
Loans charged off 246 4,345 31 3,421
Recoveries   439     105     336     52  
Net loans charged off (recoveries) (193 ) 4,240 (305 ) 3,369
Provision for loan losses   (455 )   3,964     (399 )   2,368  
Balance at end of period $ 3,479   $ 3,918   $ 3,479   $ 3,918  
 
At
March 31, June 30,
  2013     2012  
BALANCES:
Net Loans $ 155,379 $ 173,595
Total Assets $ 234,794 $ 254,395
Deposits $ 204,895 $ 225,413
Borrowings $ 14,000 $ 14,000
Stockholders' Equity $ 14,207 $ 12,629
 
CAPITAL & CREDIT QUALITY RATIOS:
Bank Leverage ratio 8.22 % 7.13 %
Bank Tier 1 Risked Based ratio 14.56 % 11.99 %
Bank Total Risked Based ratio 15.82 % 13.26 %
Allowance For Loan Losses to Total Loans 2.19 % 2.11 %
Nonperforming Assets to Total Assets 2.44 % 4.04 %
Allowance For Loan Losses to Nonperforming Loans 73.00 % 42.23 %
 
 
(1) Tangible book value per share deducts intangible assets from common equity.
(2) Amounts for the three and nine month periods ended March 31, 2013 and 2012 are annualized.

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