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Patapsco Bancorp, Inc. Announces 4th Quarter Results and Appointment of Phil Phillips as President and CEO

  Patapsco Bancorp, Inc. Announces 4th Quarter Results and Appointment of Phil
  Phillips as President and CEO

Business Wire

BALTIMORE -- August 5, 2013

Patapsco Bancorp, Inc.

Result of Operations

Patapsco Bancorp, Inc. (OTC, Electronic Bulletin Board: PATD), the parent
company of The Patapsco Bank, announces unaudited net income applicable to
common shareholders of $381,000 or $0.19 diluted income per share for its year
ended June 30, 2013 as compared to an unaudited net loss of $2,014,000 or
$1.02 diluted loss per share for the prior year.

The Company announced an unaudited net loss applicable to common shareholders
of $512,000 or $0.26 diluted loss per share for the fourth quarter of its
fiscal year ended June 30, 2013 compared to an unaudited net income of
$932,000 or $0.47 diluted income per share for the comparable period of the
prior year.

The Company’s annual and quarterly results were impacted by the provision for
loan losses of $1,000 and $456,000 in the year to date and quarterly periods.
The 2013 annual amount is $3.1 million lower than the provision incurred for
fiscal year 2012 while the quarterly amount is $1.3 million more than the
amount recorded for fourth quarter. Non-interest expenses increased due to the
provision for losses on and cost of real estate acquired through foreclosure
increasing to $671,000 for the year ended June 30, 2013 as compared to
$212,000 for the prior year.

Non-performing assets improved as they represented 3.00% of total assets at
June 30, 2013 as compared to 4.04% at June 30, 2012. The ratio of the
allowance for loan losses was 1.91% of total loans at June 30, 2013 compared
to 2.11% at June 30, 2012. The coverage ratio improved as the allowance for
loan losses was 50.03% of non-performing loans at June 30, 2013 versus 42.23%
at June 30, 2012.

As of June 30, 2013, Patapsco Bancorp, Inc. reported assets of $230.8 million,
deposits of $201.5 million and total stockholders’ equity of $13.4 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.

Executive Management

The Company also announced that Michael J. Dee, the President and Chief
Executive Officer of the Company and Patapsco Bank, has resigned from such
positions. The Board of Directors would like to thank Mr. Dee for his fine
service to the Company and the Bank during a very difficult period. Mr. Dee
will remain employed with Patapsco Bank for a transitional period.

The Board of Directors has appointed Phil Phillips as President and Chief
Executive Officer of Patapsco Bancorp, Inc. and The Patapsco Bank, subject to
final regulatory approval. According to Thomas P. O’Neill, the Company’s
Chairman of the Board “we are thrilled to welcome Phil Phillips as our
President and Chief Executive Officer. We believe his extensive experience in
banking including in particular his experience in lending will help put us
back on the road to long term success.” Mr. Phillips previously served as The
Patapsco Bank’s Executive Vice President in the capacity of Chief Credit
Officer and Senior Lending Officer.

The Company intends to post future earnings announcements on The Patapsco
Bank’s website, www.patapscobank.com rather than posting on various media
outlets.

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 Subsidiaries
                                                             
                                                                     
                      For the Twelve Months Ended   For the Three Months Ended
                      June 30,                      June 30,
(Dollars in
thousands, except    2013           2012         2013            2012
per share data)
                                                                     
OPERATING RESULTS:
Interest Income       $  10,118       $ 11,321      $  2,269         $ 2,664
Interest Expense        2,115        3,091        458           679   
Net Interest Income      8,003          8,230          1,811           1,985
Provision (Credit)      1            3,101        456           (863  )
For Loan Losses
Net Interest Income
After Provision          8,002          5,129          1,355           2,848
(Credit) for Loan
Losses
Other Noninterest        755            786            250             172
Income
Noninterest Expense      7,989          7,332          2,021           1,782
Income Tax Expense      0            210          0             210   
Net Income (Loss)        768            (1,627  )      (416    )       1,028
Preferred Stock         387          387          96            96    
Dividends
Net Income (Loss)
Available for         $  381          ($2,014 )     ($512   )     $ 932   
Common Shareholders
                                                                     
PER SHARE DATA:
Net Income (Loss)
per Common Share,     $  0.19           ($1.02  )      ($0.26  )     $ 0.47
Basic
Net Income (Loss)
per Common Share,     $  0.19           ($1.02  )      ($0.26  )     $ 0.47
Diluted
                                                                     
Book Value per        $  3.61         $ 3.24
Common Share
Tangible Book Value
per Common Share      $  3.59         $ 3.20
(1)
Period-End Common     $  3.40         $ 0.62
Stock Price
Common Stock Price
as a Percentage of       94.71    %     19.38   %
Tangible Book Value
                                                                     
PERFORMANCE RATIOS:
(2)
Return on Average        0.32     %     -0.63   %      -0.71   %       1.62  %
Assets
Return on Average        5.58     %     -11.71  %      -11.59  %       34.02 %
Equity
Net Interest Margin      3.46     %     3.34    %      3.27    %       3.29  %
Net Interest Spread      3.39     %     3.26    %      3.14    %       3.16  %
                                                                     
                      At
                      June 30,        June 30,
                      2013           2012
BALANCES:
Net Loans             $  155,015      $ 173,595
Total Assets          $  230,761      $ 254,395
Deposits              $  201,549      $ 225,413
Borrowings            $  14,000       $ 14,000
Stockholders'         $  13,424       $ 12,629
Equity
Non-performing        $  6,020        $ 8,861
Loans
Foreclosed Assets     $  903          $ 1,418
Non-performing        $  6,923        $ 10,279
Assets
                                                                     
CAPITAL & CREDIT
QUALITY RATIOS:
Bank Leverage ratio      8.23     %     7.13    %
Bank Tier 1 Risked       14.15    %     11.99   %
Based ratio
Bank Total Risked        15.41    %     13.26   %
Based ratio
Allowance For Loan
Losses to Total          1.91     %     2.11    %
Loans
Nonperforming
Assets to Total          3.00     %     4.04    %
Assets
Allowance For Loan
Losses to                50.03    %     42.23   %
Nonperforming Loans
                                                                     

(1)  Tangible book value per share deducts intangible assets from common
      equity.
(2)   Amounts for the three and twelve month periods ended June 30, 2013 and
      2012 are annualized.

Contact:

Patapsco Bancorp, Inc.
John M. Wright, Senior VicePresident and CFO
410-285-9327