<Page>1
PRESS RELEASE
PATAPSCO BANCORP, INC.
FOR FURTHER INFORMATION CONTACT MICHAEL J .DEE, PRESIDENT 410-285-9313
PATAPSCO BANCORP, INC. ANNOUNCES ANNUAL AND QUARTERLY LOSS DUE TO GOODWILL
--------------------------------------------------------------------------
IMPAIRMENT CHARGE AND PROVISION FOR LOAN LOSSES
-----------------------------------------------
Baltimore, Md. July 24, 2009 - Patapsco Bancorp, Inc. (OTC, Electronic
Bulletin Board: PATD), the parent company of The Patapsco Bank, announces an
unaudited net loss of $5.5 million or $2.93 diluted loss per share for its
fiscal year ending June 30, 2009 as compared to audited net income of $1.4
million or $0.71 diluted earnings per share for the prior year.
For the quarter ended June 30, 2009 the Company incurred a net loss of
$4.8 million or $2.56 diluted loss per share as compared to a net loss of
$273,000 or $.14 diluted loss share for the prior year comparable period.
The Company's results were significantly impacted by the year to date and
quarterly provisions for loan losses of $5.9 million and $3.5 million,
respectively. Additionally, during the quarter, the Company recorded a $3.0
million goodwill impairment charge. The goodwill impairment calculation,
performed by an independent third party determined that primarily due to the
depressed stock prices of the Company and its peers, the entire amount of
goodwill on the balance sheet was impaired. The goodwill resulted from the
November 2000 acquisition of Northfield Bancorp and the April 2003 acquisition
of Parkville Savings Bank. The goodwill impairment charge has no impact on the
bank's regulatory capital ratios.
Due to the losses incurred and the current economic environment, the
Company has eliminated the dividend on common shares.
As of June 30, 2009, Patapsco Bancorp, Inc. reported assets of $268
million, deposits of $208 million and total stockholders' equity of $19.7
million compared to $261 million, $198 million and $19.4 million at June 30,
2008, the Company's previous fiscal year end.
In regards to credit quality, the Company's non-performing assets were
4.66% of total assets at year-end compared to 0.97% the previous year. The
Company has no loans or leases 90 days past due that are still accruing
interest. The Patapsco Bank remains well capitalized at all levels.
<Page>2
Attached hereto is a summary of the unaudited financial highlights for the
periods.
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.
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.
<Page>3
FINANCIAL HIGHLIGHTS (UNAUDITED)
PATAPSCO BANCORP, INC. AND SUBSIDIARY
<Table>
<Caption>
- --------------------------------------------------------------------------------------------------------------
For the Twelve Months Ended For the Three Months Ended
June 30, June 30,
--------------------------- --------------------------
(Dollars in thousands, except per share data) 2008 2009 2009 2008
- --------------------------------------------------------------------------------------------------------------
OPERATING RESULTS:
Interest income $15,697 $17,191 $3,637 $4,145
Interest expense 7,059 8,565 1,664 2,003
------- ------- ------ ------
Net interest income 8,638 8,626 1,973 2,142
Provision for loan losses 5,902 1,920 3,451 1,020
------- ------- ------ ------
Net interest income/(loss) after provision
for loan losses 2,736 6,706 (1,478) 1,122
Merger termination Fee 0 2,000 0 0
Other noninterest income 841 819 214 195
Goodwill impairment charge 2,955 0 2,955 0
Other noninterest expense 7,733 7,373 1,784 1,773
Provision/(benefit) for income taxes (1,645) 775 (1,198) (183)
------- ------- ------ ------
Net income/(loss) (5,466) 1,377 (4,805) (273)
Preferred stock dividends 173 0 123 0
------- ------- ------ ------
Net Income/(loss) Available for Common
Shareholders ($ 5,639) $ 1,377 ($4,928) ($ 273)
======= ======= ====== ======
PER SHARE DATA:
Net income/(loss) per common share, basic ($ 2.93) $ 0.72 ($ 2.56) ($ 0.14)
Net income/(loss) per common share, diluted ($ 2.93) $ 0.71 ($ 2.56) ($ 0.14)
Book Value per common share $ 7.11 $ 10.12
Tangible Book Value per common share(1) $ 6.98 $ 8.42
Period End Stock Price $ 3.40 $ 7.20
Stock Price as a percentage of tangible
book value 48.71% 85.51%
PERFORMANCE RATIOS: (2)
Return on average assets -2.05% 0.53% -7.10% -0.42%
Return on average equity -24.45% 7.13% -78.80% -5.52%
Net interest margin 3.44% 3.51% 3.10% 3.43%
Net interest spread 3.16% 3.23% 2.84% 3.18%
</Table>
<Table>
<Caption>
At
---------------------
June 30 June 30,
2009 2008
---------------------
BALANCES
Net Loans $216,927 $227,514
Total Assets $268,367 $261,294
Deposits $207,795 $197,886
Borrowings $ 39,300 $ 42,300
Stockholders' Equity $ 19,692 $ 19,391
CAPITAL & CREDIT QUALITY RATIOS
Bank Leverage ratio 7.98% 7.63%
Bank Tier 1 Risked Based ratio 10.40% 9.56%
Bank Total Risked Based ratio 11.65% 10.45%
Allowance for loan losses to total loans 1.37% 0.80%
Nonperforming assets to total assets 4.66% 0.97%
</Table>
(1) Tangible book value per share deducts intangible assets from common equity.
(2) Amounts for the three month period ended June 30, 2009 and 2008 are
annualized.