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 $601,000 or $0.30diluted income per share for its six months ended December 31, 2012 as compared to an unaudited net loss of $955,000 or $0.48diluted loss per share for same period of the prior year.

The Company announced an unaudited net income applicable to common shareholders of $236,000 or $0.12 diluted income per share for the second quarter of its fiscal year ended June 30, 2013 compared to an unaudited net loss of $1.1 million or $0.54 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 $107,000 for the quarter ending December 31, 2012 compared to $1.3 million for the same quarter last year.

Non-performing assets improved as they represented 3.09% of total assets at December 31, 2012 as compared to 4.04% at June 30, 2012 and have decreased by 54% since December 31, 2011. The ratio of the allowance for loan losses was 2.15% of total loans at December 31, 2012 compared to 2.11% at June 30, 2012. The coverage ratio improved as the allowance for loan losses was 58.65% of non-performing loans at December 31, 2012 versus 42.23% at June 30, 2012.

As of December 31, 2012, Patapsco Bancorp, Inc. reported assets of $238.4 million, deposits of $207.8 million and total stockholders' equity of $13.8 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 Six Months Ended For the Three Months Ended
December 31, December 31,
(Dollars in thousands, except per share data)   2012   2011   2012   2011
 
OPERATING RESULTS:
Interest Income $ 5,324 $ 5,820 $ 2,560 $ 2,813
Interest Expense   1,187     1,671     560     799  
Net Interest Income 4,137 4,149 2,000 2,014
Provision For Loan Losses   (56 )   1,596     (107 )   1,273  

Net Interest Income After Provision for Loan Losses

4,193 2,553 2,107 741
Other Noninterest Income 359 437 179 185
Noninterest Expense   3,757     3,751     1,953     1,912  
Net Income (Loss) 795 (761 ) 333 (986 )
Preferred Stock Dividends   194     194     97     97  
Net Income (Loss) Available for Common Shareholders $ 601     ($955 ) $ 236     ($1,083 )
 
PER SHARE DATA:
Net Income (Loss) per Common Share, Basic $ 0.30 ($0.48 ) $ 0.12 ($0.54 )
Net Income (Loss) per Common Share, Diluted $ 0.30 ($0.48 ) $ 0.12 ($0.54 )
 
Book Value per Common Share $ 3.81 $ 3.63
Tangible Book Value per Common Share (1) $ 3.78 $ 3.57
Period-End Common Stock Price $ 0.91 $ 0.90
Common Stock Price as a Percentage of Tangible Book Value 24.07 % 25.21 %
 
PERFORMANCE RATIOS: (2)
Return on Average Assets 0.53 % -0.58 % 0.55 % -1.52 %
Return on Average Equity 9.19 % -10.21 % 9.63 % -26.28 %
Net Interest Margin 3.49 % 3.33 % 3.50 % 3.33 %
Net Interest Spread 3.35 % 3.18 % 3.36 % 3.18 %
 

At

December 31, June 30,
2012   2012

BALANCES:

Net Loans $ 162,280 $ 173,595
Total Assets $ 238,434 $ 254,395
Deposits $ 207,769 $ 225,413
Borrowings $ 14,000 $ 14,000
Stockholders' Equity $ 13,790 $ 12,629
 
CAPITAL & CREDIT QUALITY RATIOS:
Bank Leverage ratio 7.89 % 7.13 %
Bank Tier 1 Risked Based ratio 13.70 % 11.99 %
Bank Total Risked Based ratio 14.97 % 13.26 %
Allowance For Loan Losses to Total Loans 2.15 % 2.11 %
Nonperforming Assets to Total Assets 3.09 % 4.04 %
Allowance For Loan Losses to Nonperforming Loans 58.65 % 42.23 %
 
 
(1) Tangible book value per share deducts intangible assets from common equity.
(2) Amounts for the three and six month periods ended December 31, 2012 and 2011 are annualized.
 

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