United States Securities and Exchange Commission
                             Washington, D. C. 20549

                                   FORM 10-QSB
(Mark One)

[x]  Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
     Act of 1934 for the quarterly period ended March 31, 2002.

[ ]  Transition  Report  Pursuant  to  Section  13 or  15(d)  of the  Securities
     Exchange Act of 1934

            For the transition period from __________ to ___________


                         Commission File Number: 0-28032

                             PATAPSCO BANCORP, INC.
--------------------------------------------------------------------------------
        (Exact Name of Small Business Issuer as Specified in its Charter)


             MARYLAND                                            52-1951797
-------------------------------                             -------------------
(State or Other Jurisdiction of                              (I.R.S. Employer
 Incorporation or Organization)                             Identification No.)


              1301 MERRITT BOULEVARD, DUNDALK, MARYLAND 21222-2194
              ----------------------------------------------------
                    (Address of Principal Executive Offices)


                                 (410) 285-1010

               Registrant's Telephone Number, Including Area Code


     Check  whether  the issuer (1) filed all  reports  required  to be filed by
Section 13 or 15(d) of the Exchange  Act during the  preceding 12 months (or for
such shorter period that the registrant was required to file such reports),  and
(2) has been  subject to such filing  requirements  for the past 90 days.
Yes X     No
   ---      ---

     The issuer has been  subject to such  filing  requirements  for the past 90
days.

     As of May 8, 2002, the issuer had 370,058 shares of Common Stock issued and
outstanding.

     Transitional Small Business Disclosure Format (check one):

         Yes                                No    X
             ----                               -----

<PAGE>

         CONTENTS
         --------
                                                                            PAGE
                                                                            ----

PART I.  FINANCIAL INFORMATION
         ---------------------


Item 1.  Financial Statements

         Consolidated Statements of Financial Condition at March 31,
            2002 And June 30, 2001                                            3

         Consolidated Statements of Operations for the Nine and Three-
            Month Periods Ended March 31, 2002 and 2001                       4

         Consolidated Statements of Comprehensive Income for the Nine
            and Three-Month Periods Ended March 31, 2002 and 2001             5

         Consolidated Statements of Cash Flows for the Nine-Month
            Periods Ended March 31, 2002 and 2001                             6

         Notes to Financial Statements                                        7


Item 2.  Management's Discussion and Analysis or Plan of Operations           8


PART II.  OTHER INFORMATION
          -----------------

Item 1.  Legal Proceedings                                                   15

Item 2.  Changes in Securities and Use of Proceeds                           15

Item 3.  Defaults Upon Senior Securities                                     15

Item 4.  Submission of Matters to a Vote of Security-Holders                 15

Item 5.  Other Information                                                   15

Item 6.  Exhibits and Reports on Form 8-K                                    15

Signatures                                                                   16


                                       2
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------
<TABLE>
<CAPTION>
                                                                   MARCH 31,         JUNE 30,
                                                                2002 (UNAUDITED)       2001
                                                                ---------------    ------------
<S>                                                              <C>              <C>
                                      Assets
                                      ------
Cash:
     On hand and due from banks                                  $   2,179,248    $   2,710,768
     Interest bearing deposits in other banks                       11,736,990        2,630,770
Federal funds sold                                                   6,876,000        5,819,093
Investment securities, at fair value                                 4,362,960        2,188,212
Mortgage-backed securities, at fair value                            4,077,444        5,679,605
Loans held for sale                                                         --        9,914,139
Loans receivable, net                                              117,251,416      127,833,640
Investment in securities required by law, at cost                    1,903,350        1,903,350
Property and equipment, net                                          1,096,753        1,193,425
Goodwill                                                             1,869,691        1,869,691
Deferred income taxes                                                  760,205          838,061
Accrued interest, prepaid expenses and other assets                  1,313,435        1,589,529
                                                                 -------------    -------------
              Total assets                                       $ 153,427,492    $ 164,170,283
                                                                 =============    =============

                   Liabilities and Stockholders' Equity
                   ------------------------------------

Liabilities:
   Savings deposits:
        Interest bearing deposits                                $ 115,295,285    $ 119,622,698
        Noninterest bearing deposits                                 5,677,727        4,369,526
   Borrowings                                                       16,802,083       23,661,772
   Accrued expenses and other liabilities                            1,551,855        3,091,467
                                                                 -------------    -------------
              Total liabilities                                    139,326,950      150,745,463

Stockholders' equity:
    Preferred stock-Series A Noncumultive Convertible
      Perpetual  $0.01 par value; authorized 1,000,000
      shares with a liquidation preference of $25 per
      share; 103,397 shares outstanding                                  1,034            1,061
Additional paid-in capital                                           2,586,270        2,650,733
   Common stock $0.01 par value: authorized 4,000,000
     shares: issued and outstanding 370,058 and
     333,050 shares, respectively                                        3,701            3,330
  Additional paid-in capital                                         2,568,738        1,629,937
   Contra equity - Employee stock ownership plan                      (185,695)        (185,695)
   Contra equity - Management recognition plan                              --          (60,610)
   Contra equity - stock held by Rabbi Trust                           (77,544)              --
   Obligation under Rabbi Trust                                        249,976               --
   Retained income, substantially restricted                         8,980,130        9,331,919
   Unrealized net holding gains (losses) on available-for-sale
      portfolios, net of taxes                                         (26,068)         131,689
                                                                 -------------    -------------
               Total stockholders' equity                           14,100,542        9,579,298
                                                                 -------------    -------------
              Total liabilities and stockholders' equity         $ 153,427,492    $ 164,170,283
                                                                 =============    =============
</TABLE>

                                       3
<PAGE>
                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                           FOR NINE MONTHS ENDED     FOR THREE MONTHS ENDED
                                                                  MARCH 31,                  MARCH 31,
                                                           -----------------------   -----------------------
                                                              2002        2001         2002            2001
                                                           ----------   ----------   ----------   ----------
<S>                                                        <C>          <C>          <C>          <C>
Interest income:
    Loans receivable                                       $7,962,912   $7,683,917   $2,540,172   $3,033,416
    Mortgage-backed securities                                236,034      289,065       68,277      109,550
    Investment                                                166,249      173,623       72,997       68,834
    Federal funds sold and other interest bearing assets      344,053      190,915       81,447       90,694
                                                           ----------   ----------   ----------   ----------
          Total interest income                             8,709,248    8,337,520    2,762,893    3,302,494
                                                           ----------   ----------   ----------   ----------

Interest expense:
    Savings deposits                                        3,596,005    3,371,259      988,968    1,355,163
    Borrowings & Other                                        869,695    1,114,614      245,080      486,244
                                                           ----------   ----------   ----------   ----------
          Total interest expense                            4,465,700    4,485,873    1,234,048    1,841,407
                                                           ----------   ----------   ----------   ----------

          Net interest income                               4,243,548    3,851,617    1,528,845    1,461,087
Provision for losses on loans                                 470,000      350,000       90,000      110,000
                                                           ----------   ----------   ----------   ----------
          Net interest income after provision
                   for losses on loans                      3,773,548    3,501,647    1,438,845    1,351,087
 Noninterest income:
    Fees and service charges                                  255,217      236,487       81,348       90,615
    Net gain (loss) on sales of securities                    174,470       39,437           --           --
    Net gain (loss) on sales of loans                         337,025           --           --           --
    Net gain (loss) on sale of repossessed real estate             --       19,556           --        1,469
    Other                                                      14,872       16,753        5,964        5,127
                                                           ----------   ----------   ----------   ----------
        Total noninterest income                              781,584      312,233       87,312       97,211
                                                           ----------   ----------   ----------   ----------
Noninterest expenses:
    Compensation and employee benefits                      1,956,827    1,589,036      635,374      563,547
    Insurance premiums                                         46,435       36,316       15,829       14,604
    Professional fees                                         139,330       85,631       46,300       27,337
    Equipment expense                                         167,987      103,765       55,830       35,937
    Occupancy Expense                                         146,204       95,037       43,882       42,258
    Advertising                                               108,113      100,723       27,060       32,382
    Data processing                                           151,609      128,442       49,242       48,194
    Goodwill Amortization                                          --       57,840           --       32,947
    Other                                                     515,548      426,126      168,406      158,045
                                                           ----------   ----------   ----------   ----------
          Total noninterest expense                         3,232,053    2,622,916    1,041,923      955,251
                                                           ----------   ----------   ----------   ----------
          Income before provision for income taxes          1,323,079    1,190,964      484,234      493,047
Provision for income taxes                                    511,138      468,253      186,399      196,980
                                                           ----------   ----------   ----------   ----------
          Net Income                                       $  811,941   $  722,711   $  297,835   $  296,067
                                                           ==========   ==========   ==========   ==========
          Basic earnings per share                         $     1.87   $     1.84   $     0.70   $     0.69
                                                           ==========   ==========   ==========   ==========
          Diluted earnings per share                             1.66         1.70         0.60         0.62
</TABLE>

See accompanying notes to financial statements.

                                       4
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                              FOR NINE MONTHS ENDED         FOR THREE MONTHS ENDED
                                                                    MARCH  31,                     MARCH 31,
                                                             ------------------------      ------------------------
                                                               2002            2001          2002             2001
                                                             ---------       --------      --------        --------
<S>                                                          <C>             <C>           <C>             <C>
Net income                                                   $ 811,841       $722,711      $297,835        $296,067
Other comprehensive income, net of tax:
  Unrealized net holding (losses)/gains on
    available-for-sale portfolios                             (157,757)       203,063       (30,970)         80,317

Reclassification adjustment for gains
   Included in net income, net of tax                          107,081             --           --               --
                                                             ---------       --------      --------        --------
Comprehensive income                                         $ 761,165       $925,774      $266,865        $376,384
                                                             =========       ========      ========        ========
</TABLE>

See accompanying notes to financial statements.

                                       5
<PAGE>
                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                             FOR NINE MONTHS ENDED
                                                                                  MARCH  31,
                                                                           --------------------------
                                                                              2002            2001
                                                                          -----------     -----------
<S>                                                                      <C>             <C>
Cash flows from operating activities:
  Net income                                                             $    811,941    $    722,711
  Adjustments to reconcile net income to net
    cash provided by operating activities:
       Depreciation                                                           112,052          35,827
       Goodwill Amortization                                                       --          57,840
       Gain on Sale of repossessed real estate                                     --         (19,556)
       Gain on sale of investment & mortgage-backed securities               (174,470)        (39,437)
       Gain on sale of loans held for sale                                   (337,025)             --
       Provision for losses on loans                                          470,000         350,000
       Provision for losses on repossessed assets                              10,000              --
       Non-cash compensation under stock-based benefit plans                   60,610         157,897
       Amortization of premiums and discounts, net                            138,343           9,929
       Deferred loan origination fees, net of costs                            19,912        (164,136)
       (Increase)Decrease in deferred taxes,
           prepaid expenses and other assets                                  443,211        (228,884)
       Decrease in accrued expenses and other liabilities                  (1,289,636)       (300,225)
                                                                          -----------     -----------
         Net cash  provided by operating activities                           264,938         581,856
                                                                          -----------     -----------
Cash flows from investing activities:
   Cash consideration Northfield acquisition, net                                  --      (4,380,673)
  Loan principal disbursements, net of repayments                           9,943,017      (4,145,777)
   Proceeds from sale of loans held for sale                               10,251,164              --
  Purchase of property and equipment                                          (15,380)        (14,726)
  Purchase of stock in Federal Home Loan Bank of Atlanta                           --
                                                                                             (240,000)
  Purchase of investment security available-for-sale                       (4,255,664)             --
  Proceeds from sale of repossessed real estate                                    --         310,800
  Proceeds from sale of investments available for sale                      2,004,510       3,118,135
  Proceeds from sale of mortgage-backed securities available for sale              --         248,297
  Principal repayment on mortgage-backed securities available for sale      1,595,435         713,534
                                                                          -----------     -----------
        Net cash provided by (used in) investing activities                19,523,082      (4,390,410)

Cash flows from financing activities:
  Net increase(decrease)  in deposits                                      (2,967,365)      6,758,864
  Net increase  (decrease) in borrowings                                   (6,900,000)      5,348,820
  Stock repurchase                                                            (55,638)        (11,976)
  Cash received in exercise of stock options                                   57,407              --
  Dividends paid                                                             (290,817)       (164,745)
                                                                          -----------     -----------
         Net cash  provided by financing activities                       (10,156,413)     11,930,963

  Net increase  in cash and cash equivalents                             $  9,631,607    $  8,122,409
  Cash and cash equivalents at beginning of period                         11,160,631       3,437,783
  Cash and cash equivalents end of period                                $ 20,792,238    $ 11,560,192

Supplemental information:
  Interest paid on deposits and borrowed funds                              4,465,700       4,485,873
  Income taxes paid                                                           595,400         518,000
  Preferred Stock issued for acquired company                                      --       2,731,308
  Stock Dividend Paid                                                         872,913              --
</TABLE>

See accompanying notes to financial statements.

                                       6
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Note 1:   Principles of Consolidation

The consolidated  financial statements include the accounts of Patapsco Bancorp,
Inc. ("the Company") and its  wholly-owned  subsidiary,  The Patapsco Bank ("the
Bank").  All intercompany  accounts and transactions have been eliminated in the
accompanying consolidated financial statements.

Note 2:   The Patapsco Bank

The Bank is regulated  by The Federal  Reserve  Bank of Richmond  ("the  Federal
Reserve Bank") and The State of Maryland. The primary business of the Bank is to
attract  deposits  from  individual  and  corporate  customers  and to originate
residential  and  commercial  mortgage  loans,  consumer  loans  and  commercial
business loans. The Bank competes with other financial and mortgage institutions
in attracting and retaining deposits and originating loans. In October, 2000 the
Bank created a leasing  company  called Prime  Business  Leasing,  Inc. The Bank
conducts operations through three offices.

Note 3:   Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with  instructions  for Form 10-QSB and therefore,  do not include
all  disclosures  necessary  for a complete  presentation  of the  statements of
condition,  statements of operations  and statements of cash flows in conformity
with generally accepted accounting principles.  However, all adjustments,  which
are, in the opinion of management,  necessary for the fair  presentation  of the
interim  financial  statements have been included.  Such  adjustments  were of a
normal recurring nature. The results of operations for the nine and three months
ended March 31, 2002 are not  necessarily  indicative of the results that may be
expected for the entire year.

Note 4:  Cash and Cash Equivalents

Cash equivalents include short-term investments, which consists of Federal funds
sold.  Cash  equivalents  and other  liquidity and  short-term  investments  are
carried at cost, which approximates market value.

Note 5:   Regulatory Capital Requirements

At March 31, 2002, the Company met each of the three minimum  regulatory capital
requirements.  The following  table  summarizes  the Bank's  regulatory  capital
position at March 31, 2002 (in thousands).
<TABLE>
<CAPTION>
                                                                                  Well Capitalized Under
                                                                 For Capital         Prompt Corrective
                                         Actual               Adequacy Purposes      Action Provision
                                 ----------------------       -----------------   ----------------------
                                  Amount           %          Amount        %      Amount            %
                                 ----------------------       -----------------   ----------------------
<S>                              <C>             <C>          <C>         <C>     <C>               <C>
Total Capital (to Risk
  Weighted Assets)               $12,687         13.33%       $7,615      8.00%   $9,518            10%

Tier 1 Capital (to Risk
   Weighted Assets)              $11,497         12.08%       $3,807      4.00%   $5,711             6%

Tier 1 Capital (to Average
    Assets)                      $11,497         7.61%        $6,040      4.00%   $7,550             5%
</TABLE>

                                       7
<PAGE>

Note 7:  Earnings Per Share

Basic per share amounts are based on the weighted average shares of common stock
outstanding.  Diluted  earnings  per share  assume the  conversion,  exercise or
issuance  of  all  potential  common  stock  instruments  such  as  options  and
convertible  securities,  unless  the  effect  is to  reduce a loss or  increase
earnings per share.
<TABLE>
<CAPTION>
                                                     NINE MONTHS ENDED         THREE MONTHS ENDED
                                                       MARCH 31, 2002            MARCH 31, 2002
                                                     BASIC      DILUTED      BASIC          DILUTED
                                                     ------------------     -----------------------
<S>                                                  <C>        <C>         <C>             <C>
Net Income                                           811,941    811,941     297,835         297,835
Preferred Stock Dividends                            148,924          -      48,467               -
                                                     -------    -------     -------         -------
Net Income Available to Common                       663,017    811,941     249,368         297,835

Weighted average shares outstanding                  354,994    354,994     357,008         357,008

Diluted Securities:
  Preferred Stock                                               113,886                    113,737
  MRP Shares                                                        499                          0
  Options                                                        20,793                     25,157
--------------------------------------------------------------------------------------------------
Adjusted Weighted Average Shares                     354,994    490,171        357,008     495,902

Per Share Amount                                        1.87       1.66          0.70         0.60
</TABLE>

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

FORWARD-LOOKING STATEMENTS

When used in this Form 10-QSB,  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 the  Company's  market  area,  changes in  policies  by
regulatory  agencies,  fluctuations in interest  rates,  demand for loans in the
Company's market area, and competition that could cause actual results to differ
materially  from  historical   earnings  and  those  presently   anticipated  or
projected.  The Company wishes to caution readers not to place undue reliance on
any such forward-looking  statements,  which speak only as of the date made. The
Company  wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ  materially  from any opinions or statements  expressed
with respect to future periods in any current statements.

The Company 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.

COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2002 AND JUNE 30, 2001

The Company's  assets  decreased by $10.7  million or 6.5% to $153.4  million at
March 31, 2002 from $164.2  million at June 30, 2001.  Cash  generated  from the
sale of loans  and  investment  securities  held for  sale and  paydowns  in the
residential  mortgage  portfolio  was used to pay down  borrowings,  fund a $4.3
million  outflow of deposits,  primarily high cost  certificate  accounts and to
fund escrow  disbursements  for property  insurance of mortgage  customers.  The
Company's  interest-bearing  deposit  liabilities have decreased by $4.3 million
and the balance of noninterest bearing deposits has increased $1.3 million since
June 30, 2001. Borrowings decreased by $6.9 million.


COMPARISON OF OPERATING RESULTS FOR THE QUARTERS AND NINE MONTHS ENDED MARCH 31,
2002 AND MARCH 31, 2001


Net Income
----------

The Company's net income increased by $2,000 or 0.6% to $298,000 for the quarter
ended March 31, 2002 from

                                       8
<PAGE>

$296,000  for the  quarter  ended  March 31,  2001.  The  Company's  net  income
increased  by $89,000 or 12.3% to $812,000  for the nine months  ended March 31,
2002 from $723,000 for the nine months ended March 31, 2001. The increase in the
Company's net income  during the  comparable  three-month  period is a result of
higher net interest  income  exceeding  the  increase in operating  expenses and
lower  noninterest  income.  The  increase  in the  Company's  net income in the
comparable  nine-month  periods  is also a result of  higher  net  interest  and
noninterest  income  exceeding  the  increase  in  operating  expenses  and  the
provision  for loan losses.  The increase in  noninterest  income is primarily a
result of the sale of first  mortgage  loans and  investment  securities  in the
quarter ended September 30, 2001

Interest Income
---------------

Total interest income decreased by $0.5 million or 16.3% to $2.8 million for the
quarter  ended March 31, 2002 from $3.3 million for the quarter  ended March 31,
2001.  Total interest  income  increased by $0.4 million or 4.4% to $8.7 million
for the nine months  ended March 31, 2002 from $8.3  million for the nine months
ended  March 31,  2001.  The  decreases  in  interest  income in the  comparable
quarterly  periods is  primarily a result of lower loan  balances  caused by the
$10.0 million loan sale in the Company's first fiscal quarter and payoffs in the
first  mortgage  portfolio.  The increase in interest  income in the  comparable
nine-month periods is primarily a result of higher average balances. In the nine
months  ended March 31,  2002,  the loan  balances  acquired  in the  Northfield
acquisition were on the books for the entire period. In the previous  nine-month
period, these balances were only on the books for 5.5 months.

Interest  income on loans  receivable  decreased  by  $493,000  or 16.3% to $2.5
million for the quarter  ended March 31, 2002 from $3.0  million for the quarter
ended March 31, 2001. Interest income on loans receivable  increased by $279,000
or 3.6% to $8.0  million  for the nine  months  ended  March 31,  2002 from $7.7
million for the nine months ended March 31, 2001. The decreases in loan interest
income in the comparable  quarterly periods are primarily a result of lower loan
balances  caused by the $10.0  million loan sale in the  Company's  first fiscal
quarter and payoffs in the first  mortgage  portfolio.  These lower balances are
responsible  for $420,000 of the decrease  and lower rates are  responsible  for
$73,000 of the decrease.  The increase in loan interest income in the comparable
nine-month  periods  is a result of higher  average  balances  offsetting  lower
rates.  The increased  average  balances in loans receivable are responsible for
$547,000 of the increase and were somewhat  offset by lower rates that decreased
loan interest income by $267,000.

Interest income on mortgage-backed  securities  decreased by $41,000 or 37.6% to
$68,000 and by $53,000 or 18.4% to $236,000 in the three and nine-month  periods
ended March 31, 2002,  respectively.  The  reduction  is primarily  due to lower
balances as these securities payoff.

Interest  income on investment  securities  held for sale increased by $4,000 or
6.1% to $73,000 in the three month period  ended March 31, 2002  compared to the
three month period ended March 31, 2001 and decreased $7,000 or 4.3% to $166,000
in the nine-month  period ended March 31, 2001 compared to the nine-month period
ended March 31, 2001.

Interest income on federal funds sold and other investments  decreased by $9,000
or 10.2% to $81,000  for the quarter  ended March 31, 2002 from  $90,000 for the
quarter  ended  March  31,  2001  as the  impact  of the  dramatic  decrease  in
short-term  interest  rates  exceeded  the  impact of the  increase  in  volume.
Interest  income on  federal  funds  sold and  other  investments  increased  by
$153,000  or 80.2% to  $344,000  for the nine  months  ended March 31, 2002 from
$191,000  for the nine months ended March 31, 2001 as the impact of the increase
in volume exceeded the impact of the decrease in rates.

Interest Expense
----------------

Total  interest  expense  decreased by $607,000 or 33.0% to $1.2 million for the
quarter  ended March 31, 2002 from $1.8 million for the quarter  ended March 31,
2001. Total interest expense decreased  insignificantly  to $4.5 million for the
nine months ended March 31, 2002.  Approximately 75% of the decrease in interest
expense  during the  comparable  quarters was due to lower  rates,  primarily on
deposits.  The lower average balance of borrowings was primarily responsible for
the  remainder  of the  decrease  in  interest  expense.  The  average  rate  on
interest-bearing  liabilities  decreased by 144 basis points to 3.73% from 5.17%
in the quarterly period.  During the quarter ended March 31, 2002 as compared to
the  quarter  ended  March 31,  2001 the  average  balance  of  interest-bearing
liabilities  decreased by $10.2 million to $134.1  million from $144.3  million.
During the nine months ended March 31, 2002 as compared to the nine months ended
March 31,  2001,  lower rates on  deposits  offset  higher  balances of interest
bearing liabilities.

Interest expense on deposits  decreased by $366,000 or 27.0% to $1.0 million for
the quarter  ended March 31, 2002 from $1.4

                                       9
<PAGE>

million  for the  quarter  ended March 31,  2001.  Interest  expense on deposits
increased  by $225,000 or 6.7% to $3.6  million  from $3.4  million for the nine
months ended March 31, 2001. The decrease in interest expense on deposits during
the comparable  quarters is primarily  attributable to a decrease in the average
rate by 141 basis  points  to 3.42%  from  4.83%.  The  impact of this  decrease
exceeded the impact of the $3.4 million in higher average balances. The increase
in interest expense on deposits during the comparable nine-month periods was due
to  the  impact  of  the  $25.2  million  increase  in the  average  balance  to
$119.1 million from $93.9  million  exceeding  the impact of the 76 basis  point
reduction in the average rate paid on deposits from 4.78% to 4.02%.

Interest  expense on  borrowings  decreased by $241,000 or 49.6% to $245,000 for
the quarter  ended March 31, 2002 from  $486,000 for the quarter ended March 31,
2001.  Interest  expense on  borrowings  decreased  by $245,000 or 22.0% to $0.9
million during the nine months ended March 31, 2002 from $1.1 million during the
nine months ended March 31, 2001. The decrease for the  comparable  quarters was
attributable  to a  decrease  of $13.7  million  in the  average  balance  and a
decrease of 55 basis points in the average rate. For the  nine-month  comparable
periods the decrease was  attributable to a $5.9 million decrease in the average
balance  slightly  offset by a 17 basis point increase in the average rates.  As
first  mortgages  paid off and loan demand  slowed in the past nine months,  the
Company has paid down borrowings as they came due.

Net Interest Income
-------------------

The Company's net interest income before the provision for loan losses increased
insignificantly  to $1.5  million for the  quarter  ended  March 31,  2002.  Net
interest  income before the  provision for loan losses  increased by $392,000 or
10.1% to $4.2 million for the nine months ended March 31, 2002 from $3.8 million
during the nine months ended March 31, 2001. The increase in net interest income
during the  comparable  quarters and  nine-month  periods were  primarily due to
lower rates paid on liabilities  offsetting  lower average  balances of interest
earning assets.  The net interest margin increased 44 basis points to 4.19% from
3.75% in the quarter ended March 31, 2002 as compared to the quarter ended March
31,  2001.  The  increase in net interest  income in the  comparable  nine-month
periods resulted from higher average balances of interest earning assets.  These
higher  balances  offset the decrease in the net interest margin to 3.75% in the
nine-month period ended March 31, 2002 from 3.96% in the nine-month period ended
March 31,  2002.  The  decrease  in the net  interest  margin in the  comparable
nine-month periods is largely due to lower rates earned on adjustable rate loans
and  higher   balances  in  short-term   interest   earning   assets  that  earn
substantially less than loans and investment securities.

Average Balance Sheet
---------------------

The following  tables sets forth certain  information  relating to the Company's
average  balance  sheet and  reflects  the  average  yield on assets and cost of
liabilities  for the periods  indicated and the average  yields earned and rates
paid.   Dividing  income  or  expense  by  the  average  balance  of  assets  or
liabilities,  respectively,  for the periods  presented  derives these yield and
costs. Average balances are daily balances.

The table presents information for the periods indicated with respect to the net
interest margin, which is its net interest income divided by the average balance
of interest-earning assets. Also presented is the difference between the average
yield   earned   on   interest-earning   assets   and   average   rate  paid  on
interest-bearing  liabilities,  or interest  rate spread, which  is also used to
measure the earnings power of financial institutions.

                                       10
<PAGE>

<TABLE>
<CAPTION>
                                                                        NINE MONTHS ENDED MARCH 31,
                                             ----------------------------------------------------------------------------
                                                             2002                                     2001
                                             ------------------------------------      ----------------------------------
                                              AVERAGE                   AVERAGE        AVERAGE                    AVERAGE
                                              BALANCE      INTEREST      RATE(1)       BALANCE        INTEREST    RATE(1)
                                             ---------     --------     ---------      ----------------------------------
                                                                            (DOLLARS IN THOUSANDS)
<S>                                           <C>            <C>             <C>       <C>             <C>          <C>
Interest-earning assets:
   Loans receivable (2)                       $124,993       $7,963          8.47%     $116,792        $7,684       8.80%
   Mortgage-backed securities                    4,843          236          6.49%        5,561           289       6.95%
   Investment securities                         3,901          166          5.68%        1,777           174       7.46%
   Federal funds sold and other
      interest-earning assets                   17,133          344          2.67%        5,896           191       5.56%
                                              --------       ------                    --------        ------
Total interest earning assets                  150,870        8,709          7.68%      130,026         8,338       8.57%
Noninterest-earning assets                       6,665       ------                       4,419        ------
                                              --------                                 --------
Total Average Assets                          $157,535                                 $134,445
                                              ========                                 ========
Interest-bearing liabilities:
Savings deposits                              $119,170       $3,596          4.02%     $ 93,954        $3,371       4.78%
Borrowings                                      18,558          870          6.24%       24,469         1,115       6.07%
                                                             ------                                    ------
Total interest-bearing liabilities             137,728        4,466          4.32%      118,423         4,486       5.06%
                                              --------       ------        ------      --------        ------     ------
Noninterest-bearing liabilities                  6,160                                    4,688
                                              --------                                 --------
Total liabilities                              143,888                                  123,111
Stockholders' equity                            13,647                                   11,334
                                              --------                                 --------
    Total liabilities and stockholders'
      equity                                  $157,535                                 $134,445
                                              ========                                 ========
Net interest income                                          $4,243                                    $3,852
                                                             ======                                    ======
Interest rate spread                                                         3.36%                                 3.51%
                                                                           ======                                ======
Net Interest Margin                                                          3.75%                                 3.96%
                                                                           ======                                ======
Ratio of average interest-earning assets
  to average interest-bearing liabilities                                  109.54%                               109.80%
                                                                           ======                                ======
<FN>
___________
(1)  Yields and rates are annualized.
(2)  Includes nonaccrual loans.
</FN>
</TABLE>

                                       11
<PAGE>

<TABLE>
<CAPTION>
                                                                        NINE MONTHS ENDED MARCH 31,
                                             ----------------------------------------------------------------------------
                                                             2002                                     2001
                                             ------------------------------------      ----------------------------------
                                              AVERAGE                   AVERAGE        AVERAGE                    AVERAGE
                                              BALANCE      INTEREST      RATE(1)       BALANCE        INTEREST    RATE(1)
                                             ---------     --------     ---------      ----------------------------------
                                                                            (DOLLARS IN THOUSANDS)
<S>                                           <C>            <C>             <C>       <C>             <C>          <C>
Interest-earning assets:
   Loans receivable (2)                        $120,690      $2,540          8.54%     $140,570      $3,033        8.75%
   Mortgage-backed securities                     4,289          68          6.46%        6,343         110        7.00%
   Investment securities                          5,749          73          5.15%        3,754          68        7.43%
   Federal funds sold and other
      interest-earning assets                    17,128          82          1.93%        7,151          91        5.14%
                                               --------      ------                    --------      ------
Total interest earning assets                   147,856       2,763          7.58%      157,818       3,302        8.49%
Noninterest-earning assets                        5,780      ------                       5,866      ------
                                               --------                                --------
Total assets                                   $153,636                                $163,684
                                               ========                                ========
Interest-bearing liabilities:
Savings deposits                               $117,290      $  989          3.42%     $113,866      $1,355        4.83%
Borrowings                                       16,793         245          5.84%       30,449         486        6.39%
                                               --------      ------                    --------      ------
Total interest-bearing liabilities              134,083       1,234          3.73%      144,315       1,841        5.17%
Noninterest-bearing liabilities                   5,706      ------                       6,717      ------
                                               --------                                --------
Total liabilities                               139,789                                 151,032
Stockholders' equity                             13,847                                  12,652
                                               --------                                --------
    Total liabilities and stockholders'
      equity                                   $153,636                                $163,684
                                               ========                                ========

Net interest income                                          $1,529                                  $1,461
                                                             ======                                  ======
Interest rate spread                                                         3.85%                                 3.32%
                                                                           ======                                ======
Net interest margin                                                          4.19%                                 3.75%
                                                                           ======                                ======
Ratio of average interest-earning assets
  to average interest-bearing liabilities                                  110.27%                               109.36%
                                                                           ======                                ======
<FN>
__________
(1)  Yields and rates are annualized.
(2)  Includes nonaccrual loans.
</FN>
</TABLE>

Provision For Loan Losses
-------------------------

Provisions  for loan  losses  are  charged to  earnings  to  maintain  the total
allowance  for loan  losses at a level  considered  adequate  by  management  to
provide for probable loan losses.  The allowance for loan losses  consists of an
allocated  component  and  an  unallocated  component.  The  components  of  the
allowance  for loan  losses  represent  an  estimation  done  pursuant to either
Statement of Financial  Accounting  Standards  ("SFAS") No. 5,  "Accounting  for
Contingencies," of ("SFAS") No. 114,  "Accounting by Creditors for Impairment of
a Loan." The adequacy of the allowance  for loan losses is determined  through a
continuous  review of the loan and lease portfolio and considers factors such as
prior loss experience, type of collateral, industry standards, past due loans in
the Company's  loan  portfolio and current  economic  conditions.  The Company's
management periodically monitors and adjusts its allowance for loan losses based
upon its analysis of the loan portfolio.

The Company  provided $90,000 for loan losses during the quarter ended March 31,
2002 and  $110,000 in the quarter  ended March 31,  2001.  The Company  provided
$470,000  and  $350,000 for loan losses  during each of the  nine-month  periods
ended March 31, 2002 and March 31, 2001. At March 31, 2002, non-performing loans
totaled    $722,000     compared    to    $262,000.     Total     non-performing
assets,(non-performing  loans plus repossessed assets) totaled $858,000 at March
31,2002 and $326,000 at March 31, 2001. The Company's  allowance for loan losses
as a percentage of total loans outstanding, net of unearned origination fees was
1.20% at March 31, 2002.


                                       12
<PAGE>

Activity in the allowance for loan losses is as follows (dollars in thousands):
<TABLE>
<CAPTION>
                                                   Nine Months Ended        Three Months Ended
                                                   -----------------        ------------------
                                                                    March 31,
                                                                    ---------
                                                     2002      2001         2002       2001
                                                     ----      ----         ----       ----
<S>                                                 <C>      <C>          <C>         <C>
Allowance for loan losses, beginning of period      $1,161   $  742       $1,378      $1,081

Provision for loan losses                              470      350           90         110

Allowance assumed in acquisition                         0      183            0           0

Loans Charged Off:
         Consumer                                      144      136           41          49
         Real Estate                                     0        0            0           0
         Commercial                                    125       48           17          31
                                                    ------   ------       ------      ------
  Total Charge-Offs                                    269      184           58          80
                                                    ------   ------       ------      ------
Recoveries:
         Consumer                                       30       26            6           7
         Real Estate                                    12       11            0           0
         Commercial                                     22        0           10          11
                                                    ------   ------       ------      ------
  Total Recoveries                                      64       37           16          18
                                                    ------   ------       ------      ------

Allowance for loan losses, end of period            $1,426   $1,129       $1,426      $1,129
                                                    ======   ======       ======      ======
</TABLE>

Noninterest Income
------------------

The Company's noninterest income consists of deposit fees, service charges, late
fees and gains and losses on sales of  securities,  loans and  repossessed  real
estate.  Total  noninterest  income decreased by $10,000 or 10.2% to $87,000 for
the quarter  ended March 31, 2002 from  $97,000 for the quarter  ended March 31,
2001.  Total  noninterest  income  increased  by  $469,000 or 150.3% to $782,000
during the nine months ended March 31, 2002 from $312,000 during the nine months
ended March 31,  2001.  The  decrease in  noninterest  income in the  comparable
quarters is primarily due to lower fees on transaction accounts. The increase in
noninterest income in the comparable nine month period is due to the increase in
fees and service charges by $19,000 or 7.9% to $255,000,  a $174,000 gain on the
sale of available for sale investment  securities  compared to a $39,000 gain in
the nine months ended March 31, 2001 and the $337,000  gain on the sale of loans
held for sale recognized in the quarter ended September 30, 2001.

Noninterest Expenses
--------------------

Total noninterest  expenses increased by $87,000 or 9.1% to $1.0 million for the
quarter ended March 31, 2002 from $955,000 for the quarter ended March 31, 2001.
Total noninterest  expense increased by $609,000 or 23.2% to $3.2 million during
the nine months  ended March 31, 2002 from $2.6  million  during the nine months
ended March 31, 2001.

Liquidity and Capital Resources
-------------------------------

An important component of the Company's  asset/liability  structure is the level
of  liquidity  available  to meet the  needs of  customers  and  creditors.  The
Company's   Asset/Liability   Management   Committee  has  established   general
guidelines for the  maintenance  of prudent  levels of liquidity.  The Committee
continually monitors the amount and source of available  liquidity,  the time to
acquire it and its cost. Management of the Company seeks to maintain an adequate
level of  liquidity  in  order  to  retain  flexibility  in terms of  investment
opportunities and deposit pricing. Because liquid assets generally provide lower
rates of return, a high level of liquidity will, to a certain extent,  result in
lower net interest margins and lower net income.

The Company's most liquid assets are cash on hand, interest-bearing deposits and
Federal  funds  sold,  which are  short-term,  highly  liquid  investments  with
original  maturities of less than three months that are readily  convertible  to

                                       13
<PAGE>

known amounts of cash. The levels of these assets are dependent on the Company's
operating,  financing and investing activities during any given period. At March
31, 2002,  the  Company's  cash on hand,  interest-bearing  deposits and Federal
funds sold totaled $20.8  million.  In addition,  the Company has  approximately
$8.4  million  of  mortgage-backed  and  investment   securities  classified  as
available-for-sale.

The Company anticipates that it will have sufficient funds available to meet its
current  loan  commitments  of $8.8  million.  These  funds  will be  internally
generated,  raised through  deposit  operations,  or borrowed.  Certificates  of
deposit  that are  scheduled  to mature in less than one year at March 31,  2002
totaled $40.1 million. Historically, a high percentage of maturing deposits have
remained with the Company.

The Company is  obligated  to pay  interest on a bank loan and  dividends on the
preferred  shares.  Both  these  liabilities  were  incurred  as a  part  of the
acquisition  of  Northfield  Bancorp in November  2001.  At current  rates,  the
interest on the bank loan is approximately $14,000 per quarter. Dividends on the
preferred stock are approximately  $48,000 per quarter. The balance of this loan
at the holding  company has been  reduced to $1.2 million at March 31, 2002 from
$1.7  million  at March 31,  2001.  The only real  source of funds to meet these
obligations are dividends from the Bank to the Company.

The  Bank's  ability  to pay  dividends  is  governed  by the  Maryland  General
Corporation  Law,  Maryland  law  relating to  financial  institutions,  and the
regulations of the Federal Reserve Board. Under the Maryland General Corporation
Law, dividends may not be paid if, after giving effect to the dividend:  (i) the
corporation  would not be able to pay the indebtedness of the corporation as the
indebtedness  becomes  due in  the  normal  course  of  business;  or  (ii)  the
corporation's total assets would be less than the sum of the corporation's total
liabilities  plus, unless the charter permits  otherwise,  the amount needed, if
the corporation were to be dissolved at the time of distribution, to satisfy the
preferential  rights upon dissolution of stockholders whose preferential  rights
are superior to those  receiving  the dividend.  Under  Maryland law relating to
financial institutions,  if the surplus of a commercial bank at any time is less
than 100% of its capital stock,  then,  until the surplus is 100% of the capital
stock,  the commercial  bank: (i) must transfer to its surplus annually at least
10% of its net earnings; and (ii) may not declare or pay any cash dividends that
exceed 90% of its net earnings.

The Bank's payment of dividends is also subject to the Federal  Reserve  Board's
Regulation H, which  provides that a state member bank may not pay a dividend if
the total of all dividends declared by the bank in any calendar year exceeds the
total of its net profits for the year combined with its retained net profits for
the preceding two calendar years, less any required transfers to surplus or to a
fund for the  retirement  of preferred  stock,  unless the bank has received the
prior approval of the Federal Reserve Board.  Additionally,  the Federal Reserve
Board has the  authority  to  prohibit  the payment of  dividends  by a Maryland
commercial  bank when it  determines  such  payment to be an unsafe and  unsound
banking practice.  Finally, the Bank is not able to pay dividends on its capital
stock if its capital would thereby be reduced below the remaining balance of the
liquidation  account established in connection with its conversion in April 1996
from mutual to stock form.

In  addition,  the  Bank  may not pay  dividends  on its  capital  stock  if its
regulatory  capital  would thereby be reduced below the amount then required for
the liquidation account established for the benefit of certain depositors of the
Association at the time of the Association's conversion to stock form.

As discussed in Note 5 - Regulatory  Capital  Requirements,  the Company and the
Bank exceeded all regulatory minimum capital requirements.

<PAGE>

                           PART II. OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities and use of proceeds.

         None.

Item 3.  Defaults Upon Senior Securities

         None

Item 4.  Submission of Matters to a Vote of Security-Holders

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K

         None

                                       15
<PAGE>


                                   Signatures


     In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant  caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.


                                        PATAPSCO BANCORP, INC.



Date:  May 13, 2002                     /s/ Joseph J. Bouffard
                                        ----------------------------------------
                                        Joseph J. Bouffard
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)




Date: May 13, 2002                      /s/ Michael J. Dee
                                        ----------------------------------------
                                        Michael J. Dee
                                        Chief Financial Officer & Controller
                                        (Principal Financial Officer)


                                       16