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

                                  FORM 10 - QSB
(Mark One)

[x]  Quarterly  Report under Section 13 or 15(d) of the Securities  Exchange Act
     of 1934

     For the quarterly period ended September 30, 2002

[ ]  Transition  Report  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
                 ----------------------------------------------
                 Issuer'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
   ---     ---

     As of November  10,  2002,  the issuer had 374,213  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
         September 30, 2002 (Unaudited) and June 30, 2002                  3

         Consolidated Statements of Income for the Three-Month
         Periods Ended September 30, 2002 and 2001 (Unaudited)             4

         Consolidated Statements of Comprehensive Income Three-Month
         Periods Ended September 30, 2002 and 2001 (Unaudited)             5

         Consolidated Statements of Cash Flows for the Three-Month
         Periods Ended September 30, 2002 and 2001 (Unaudited)             6

         Notes to Consolidated Financial Statements                        7


Item 2.  Management's Discussion and Analysis or plan of operations        8

Item 3.   Controls and procedures                                          14


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

Item 1.  Legal Proceedings                                                 15

Item 2.  Changes in Securities and Use of Proceeds                         14

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>
                                                                   SEPTEMBER 30        JUNE 30,
                                                                      2002               2002
                                                                  -------------    -------------
              Assets
              ------
<S>                                                               <C>              <C>
Cash:
     On hand and due from banks                                   $   1,787,865    $   3,660,638
     Interest bearing deposits in other banks                         6,555,196        7,464,183
Federal funds sold                                                    2,865,000        3,732,000
Investment securities, at fair value                                  5,657,109        5,005,955
Mortgage-Backed Securities, at fair value                            13,532,908       13,705,241
Loans receivable, net                                               116,634,399      118,349,734
Investment in securities required by law, at cost                     1,903,350        1,903,350
Property and equipment, net                                           1,025,383        1,056,806
Goodwill                                                              1,869,691        1,869,691
Deferred income taxes                                                   508,115          699,125
Accrued interest, prepaid expenses and other assets                   1,244,916        1,288,860
                                                                  -------------    -------------
              Total assets                                        $ 153,583,932    $ 158,735,583
                                                                  =============    =============
      Liabilities and Stockholders' Equity
      ------------------------------------

Liabilities:
   Savings deposits:
        Interest bearing deposits                                 $ 110,768,079    $ 113,682,321
        Non interest bearing deposits                                 5,990,393        5,910,312
   Borrowings                                                        20,430,213       22,616,019
   Accrued expenses and other liabilities                             1,258,710        1,925,523
                                                                  -------------    -------------
              Total liabilities                                     138,447,395      144,134,175

Temporary Equity - ESOP Shares subject to put option                    688,194          671,724

Stockholders' equity:
  Preferred Stock-Series A Noncumulative Convertible Perpetual
     $0.01 par value authorized 1,000,000 shares with a
     liquidation preference of $25 per share; 100,166 and
     100,166 shares outstanding                                           1,002            1,002
  Additional paid-in-capital                                          2,505,495        2,505,495
  Common stock $0.01 par value: authorized 4,000,000
     shares: issued and outstanding 374,213 and
     373,613 shares, respectively                                         3,742            3,736
  Additional paid-in capital                                          2,014,050        2,020,324
  Contra equity - Employee stock ownership plan                        (119,537)        (119,537)
                  Deferred Compensation - Rabbi Trust                   (77,544)         (77,544)
  Obligation under Rabbi trust                                          249,976          249,976
  Retained income, substantially restricted                           9,448,842        9,207,460
  Unrealized net holding gains on available-for-sale
      portfolios, net of taxes                                          422,317          138,772
                                                                  -------------    -------------
              Total stockholders' equity                             14,448,343       13,929,684
                                                                  -------------    -------------
              Total liabilities and stockholders' equity          $ 153,583,932    $ 158,735,583
                                                                  =============    =============
</TABLE>
See accompanying notes to financial statements.

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

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                               FOR THREE MONTHS ENDED
                                                                     SEPTEMBER 30
                                                            ----------------------------
                                                              2002             2001
                                                             ------           ------
<S>                                                         <C>              <C>
Interest income:
    Loans receivable                                        $ 2,390,833     $2,775,771
    Mortgage-backed securities                                  198,838         88,755
    Investment securities                                        92,744         50,402
    Federal funds sold and other investments                     45,352        159,564
                                                            -----------    -----------
          Total interest income                               2,727,767      3,074,492
                                                            -----------    -----------
Interest expense:
    Savings deposits                                            776,846      1,374,329
    Borrowings                                                  286,150        326,729
                                                            -----------    -----------
          Total interest expense                              1,092,996      1,701,058
                                                            -----------    -----------

          Net interest income                                 1,664,771      1,373,434
Provision for losses on loans                                   120,000        290,000
                                                            -----------    -----------
          Net interest income after provision
                   for losses on loans                        1,544,771      1,083,434

Noninterest income:
    Fees and service charges                                    109,439         84,979
    Net gain (loss) on sale of investments held for sale         12,860        174,470
    Net gain (loss) on sale of loans held for sale                   --        337,015
    Net gain (loss) on sale of foreclosed real estate            (3,071)            --
    Other                                                         6,779          6,399
                                                            -----------    -----------
        Total noninterest income                                126,007        602,873
                                                            -----------    -----------

Noninterest expenses:
    Compensation and employee benefits                          654,130        711,752
    Insurance premiums                                           18,065         14,467
    Professional fees                                            61,732         48,281
    Equipment expense                                            61,548         46,444
    Net occupancy costs                                          56,061         53,508
    Advertising                                                  21,944         47,443
    Data processing                                              53,396         52,793
    Other                                                       197,668        174,111
                                                            -----------    -----------
          Total noninterest expense                           1,124,544      1,148,799
                                                            -----------    -----------
          Income before provision for income taxes              546,234        537,508
Provision for income taxes                                      205,510        209,680
                                                            -----------    -----------
          Net Income                                        $   340,724    $   327,828
                                                            ===========    ===========
          Basic earnings per share                          $      0.71    $      0.73
                                                            ===========    ===========
          Diluted earnings per share                               0.61           0.63
</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 THREE MONTHS ENDED
                                                                SEPTEMBER 30
                                                       -------------------------
                                                          2002            2001
                                                         ------          ------
<S>                                                    <C>              <C>
Net income                                             $ 340,724      $ 327,828
Other comprehensive income, net of tax:
  Unrealized net holding (losses)/gains on
    available-for-sale portfolios                        291,567         49,091
  Reclassification adjustment for gains
    Included in net income, net of tax                    (8,022)      (107,081)
                                                       ---------      ---------
Comprehensive income                                   $ 624,269      $ 269,838
                                                       =========      =========
</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 THREE MONTHS ENDED
                                                                               SEPTEMBER 30,
                                                                      ----------------------------
                                                                          2002             2001
                                                                      ------------    ------------
<S>                                                                   <C>             <C>
Cash flows from operating activities:
  Net income                                                          $    340,724    $    327,828
  Adjustments to reconcile net income to net
    cash provided by operating activities:
       Depreciation                                                         35,163          35,929
       Provision for losses on loans                                       120,000         290,000
       Provision  for  Loss  from  sale of  foreclosed  real estate             --          10,000
       (Gain)Loss from sale of investment securities                       (12,861)       (174,470)
       (Gain)Loss from sale of loans held for sale                              --        (337,025)
       Loss on sale of repossessed assets                                    3,071              --
       Amortization of premiums and discounts, net                         (28,232)        (42,335)
       Deferred loan origination fees, net of costs                        (18,444)        (33,178)
       (Increase)Decrease in deferred taxes,
           prepaid expenses and other assets                               (73,361)        166,795
       Decrease in accrued expenses and other liabilities                 (666,813)     (1,256,874)
                                                                      ------------    ------------
         Net cash used in operating activities                            (300,753)     (1,013,330)
                                                                      ------------    ------------

Cash flows from investing activities:
  Loan principal disbursements, net of repayments                        1,651,097          29,707
  Purchase of investment security available for sale                      (600,000)             --
  Proceeds from sale of real estate owned                                  126,839              --
  Proceeds from sale of investment securities available for sale            71,250       2,136,416
  Proceeds from sale of loans available for sale                                --      10,251,164
  Purchase of property and equipment                                        (3,740)        (10,444)
  Principal repayment on mortgage-backed securities
    available-for-sale                                                     523,806         423,734
                                                                      ------------    ------------
       Net cash provided by (used) in investing activities               1,769,252      12,830,577

Cash flows from financing activities:
  Net increase (Decrease) in deposits                                   (2,828,119)        (98,095)
  Net increase (Decrease) in borrowings                                 (2,200,000)     (3,599,999)
  Cash received in exercise of stock options                                10,202              --
  Preferred Stock repurchase                                                    --         (55,639)
  Dividends paid                                                           (99,342)        (95,185)
                                                                      ------------    ------------
         Net cash (used in) provided by financing activities            (5,117,259)     (3,848,918)
                                                                      ------------    ------------

  Net increase(decrease) in cash and cash equivalents                 $ (3,648,760)   $  7,968,329
  Cash and cash equivalents at beginning of period                      14,856,821      11,160,631
                                                                      ------------    ------------
  Cash and cash equivalents end of period                             $ 11,208,061    $ 19,128,960
                                                                      ============    ============
Supplemental information:
  Interest paid on deposits and borrowed funds                           1,062,996       1,701,058
  Income taxes paid                                                          5,000          77,500
                                                                      ============    ============
</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").  The Patapsco Bank's wholly owned subsidiary is Prime Business  Leasing.
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.  The Bank conducts
operations  through  one office  located  at 1301  Merritt  Boulevard,  Dundalk,
Maryland 21222.

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 that
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 three months ended
September  30, 2002 are not  necessarily  indicative  of the results that may be
expected  for  the  entire  year.  For  additional  information,  refer  to  the
consolidated  financial  statements and footnotes thereto included in the Bank's
Annual report of form 10-KSB for the year ended June 30, 2001.

Note 4:   Cash and Cash Equivalents

Cash equivalents include short-term  investments with an original maturity of 90
days or less 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 September 30, 2002, the Bank met each of the three minimum regulatory capital
requirements.  The following table summarizes the Company's  regulatory  capital
position at September 30, 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)                   $ 13,547         14.00%  $7,746      8.00%   $ 9,683       10%

Tier 1 Capital (to Risk
   Weighted Assets)                  $ 12,336         12.74%  $3,873      4.00%   $ 5,810        6%

Tier 1 Capital (to Average
    Assets)                          $ 12,336          8.12%  $6,079      4.00%   $ 7,598        5%
</TABLE>
                                       7
<PAGE>

Note 6  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>
                                                       Three Months Ended                  Three Months Ended
                                                       September 30, 2002                   September 30, 2001
                                                     Basic          Diluted              Basic          Diluted
                                                     ----------------------              ----------------------
<S>                                                  <C>             <C>                 <C>            <C>
Net Income                                           340,724         340,724             327,828        327,828
Preferred Stock Dividends                             46,953              --              48,457             --
                                                     -------         -------             -------        -------
Net Income Available to Common                       293,771         340,724             279,371        327,828

Weighted average shares outstanding                  411,634         411,634             384,047        384,047

Diluted Securities:
  Preferred Stock                                                    121,201                            125,091
  MRP Shares                                                              --                                 27
  Options                                                             23,486                              9,719
---------------------------------------------------------------------------------------------------------------
Adjusted Weighted Average Shares                     411,634         556,321             384,047        518,884

Per Share Amount                                        0.71            0.61                0.73           0.63
</TABLE>

The September  2001 share  outstanding  and earnings per share numbers have been
adjusted for the 10% common stock  dividends  issued in December  2001 and to be
issued in December 2002. The September 2002 share  outstanding  and earnings per
share numbers have been adjusted for the 10% common stock  dividend to be issued
in December 2002.

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.

RECENT ACCOUNTING PRONOUNCEMENTS

In August 2001, the FASB issued SFAS No. 144  "Accounting  for the Impairment or
Disposal of Long-Lived Assets".  This statement  supercedes SFAS No. 121 and APB
Opinion No. 30. SFAS No. 144 retains the fundamental  provisions of SFAS No. 121
for (a)  recognition  and  measurement of impairment of long-lived  assets to be
held and used and (b)  measurement  of  long-lived  assets to be  disposed of by
sale. SFAS No. 144 also requires reporting of discontinued operations separately
from  continuing  operations  and extends  that  reporting  to a component of an
entity that either has been disposed of or is  classified as held for sale.  The
Statement  also  eliminates  the  exception to  consolidation  for a temporarily
controlled  subsidiary.  Management  believes  that  the  above  will not have a
material impact on the Company's financial statements.

                                       8
<PAGE>

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2002 AND JUNE 30, 2001

The Company's  assets  decreased by $5.2 million,  or 3.3% to $153.6  million at
September 30, 2002 from $158.7 million at June 30, 2002.  Excess  liquidity from
the  early  payoff  of loans was used to  pay-down  borrowings  and to fund $2.9
million  in  deposit  outflow,  primarily  certificates  of  deposits.  Cash and
equivalents  decreased  approximately  $3.6  million or 25% to $11.2  million at
September  30, 2002 from $14.8 million at June 30, 2002.  Investments  available
for sale increased $0.7 million as the result of the purchase of $0.6 million of
investment securities and the increased value of the portfolio.  Mortgage-backed
securities  decreased  $0.2 million as $0.5 million in pay-downs  were  somewhat
offset by the  increased  value of the  portfolio.  The low interest  rates that
increased  the  value  of both the  investment  and  mortgage-backed  securities
portfolio  contributed to the reduction in loans  outstanding of $1.7 million or
1.44% as payoffs,  primarily in the residential  mortgage portfolio exceeded new
production.  The residential  mortgage portfolio has been substantially  reduced
due to a high level of payoffs brought on by the low interest rate environment.

Interest-bearing  deposits,  primarily  certificates of deposit,  decreased $2.9
million or 2.6% to $110.8  million at September 30, 2002 from $113.7  million at
June 30, 2002.  Total borrowings have decreased by $2.2 million or 9.7% to $20.4
million  at  September  30,2002  from  $22.6  million  at June 30. Due to excess
liquidity,  borrowings  from the  Federal  Home Loan Bank of  Atlanta  are being
repaid as they come due. Additionally, a $0.2 million principal payment was made
on the loan at the holding company. Other liabilities, primarily escrow accounts
for property  taxes and insurance held for our mortgage  customers  decreased by
$0.7million or 34.6% to  $1.36million  at September 30 from $1.9 million at June
30, 2002.

COMPARISON  OF OPERATING  RESULTS FOR THE QUARTER  ENDED  SEPTEMBER 30, 2002 AND
SEPTEMBER 30, 2001

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

The  Company's  net income  increased  by $13,000  or 3.9% to  $341,000  for the
quarter ended  September 30, 2002 from $328,000 for the quarter ended  September
30, 2001. The increase in the Company's net income during the three-month period
was due to a  $291,000  or 21.2%  increase  in net  interest  income  before the
provision for loan losses, a $170,000  decrease in the provision for loan losses
and a $24,000 decrease in operating expenses  offsetting a $477,000 reduction in
non-interest  income.  The reduction in  non-interest  income is a result of the
$337,000  gain on the sale of mortgage  loans and a $174,000 gain on the sale of
investment  securities held for sale in the quarter ended September 30, 2001. In
the quarter  ended  September  30, 2002 there were no gains on the sale of loans
and security gains totaled $13,000.  However, fees and service charges increased
by $24,000 or 28.8% to $109,000 from $85,000 in the quarter ended  September 30,
2002 as compared to the quarter ended September 30, 2001.

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

Total  interest  income  decreased  by $347,000 or 11.3% to $2.7 million for the
quarter  ended  September  30,  2002 from $3.1  million  for the  quarter  ended
September 30, 2001. The decrease in interest  income  resulted from the decrease
in average  interest  earning  assets and the yields earned on interest  earning
assets. The decreases in average balances of loans and short-term investments of
$9.4 million and $8.4 million were  somewhat  offset by increases in the average
balances of  investment  and  mortgage-backed  securities.  The yield on earning
assets  decreased by 57 basis points to 7.34% in the quarter ended September 30,
2002 compared to 7.91% in the quarter ended  September 30, 2001. The decrease in
earning  assets is responsible  for $101,000 of the decrease in interest  income
and the lower  yields  earned was  responsible  for  $246,000 of the decrease in
total interest income.

Interest  income on loans  receivable  decreased  by  $385,000  or 13.9% to $2.4
million  for the quarter  ended  September  30,  2002 from $2.8  million for the
quarter  ended  September  30, 2001.  The  decrease in interest  income on loans
receivable  during the  three-month  period is due to both the  decrease  in the
average  balance of loans  receivable and a decrease in the average yield earned
on the loan  portfolio.  During the three  months  ended  September  30, 2002 as
compared  to the  same  period  ended  September  30,  2001  the  average  loans
receivable  balance  decreased  by $9.4  million or 7.4% to $118.8  million from
$128.3 million and the average yield  decreased by 52 basis points to 8.07% from
8.59%.  The decrease in average  loans  receivable is primarily due to the early
pay-offs of first mortgage loans exceeding new loan production.

Interest income on investment securities increased by $42,000 or 84.0% primarily
due to the securities purchased in the past four quarters.

                                       9
<PAGE>

Interest income on mortgage-backed securities increased by $110,000 or 124.0% in
the quarter  ended  September  30, 2002 to $198,000  from $89,000 in the quarter
ended  September  30, 2001  primarily due to the higher  volume  resulting  from
purchases in the quarter ended June 30, 2002.

Interest  income on  federal  funds  sold and  other  investments  decreased  by
$114,000  or 71.6% to $45,000  for the  quarter  ended  September  30, 2002 from
$159,000 for the quarter ended  September 30, 2001 due to both the lower average
balance  of these  investments  and  lower  rates  earned  on  these  short-term
investments.

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

Total  interest  expense  decreased by $638,000 or 37.5% to $1.1 million for the
quarter  ended  September  30,  2002 from $1.7  million  for the  quarter  ended
September 30, 2001.  Interest expense on deposits decreased $597,000 or 43.4% in
the  quarter  due mostly to lower rates paid on  deposits.  Interest  expense on
borrowings,  primarily  from the  Federal  Home Loan Bank of  Atlanta  decreased
$41,000 or 12.4% primarily due to the decreased rates paid on these borrowings.

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

     The  Company's net interest  income  increased by $291,000 or 21.2% to $1.7
million  for the quarter  ended  September  30,  2002 from $1.4  million for the
quarter ended September 30, 2001. The increase in net interest income during the
comparable  three-month period was primarily due to lower rates paid on interest
bearing  liabilities  offsetting  lower interest  income arising from both lower
volumes of interest  earning  assets and lower rates earned on interest  earning
assets.  The falling interest rate environment has provided the Company with the
opportunity to substantially  lower the rates paid on deposit  accounts.  In the
past  twelve  months,  the  Company  has also  reduced  the level of  short-term
investments  that earn very low rates by purchasing  additional  mortgage-backed
and investment securities.  The cash generated by the high levels of prepayments
in the first mortgage  portfolio has given the Company the  opportunity to allow
high-cost certificates of deposit to leave the Bank, therefore reducing interest
expense.

AVERAGE BALANCE, INTEREST AND AVERAGE YIELDS AND RATES

     The  following  table  sets  forth  certain  information  relating  to  the
Company's average  interest-earning assets and interest-bearing  liabilities and
reflects the average yield on assets and cost of liabilities for the periods and
at the date  indicated.  Dividing income or expense by the average daily balance
of assets or  liabilities,  respectively,  derives such yields and costs for the
periods presented. Average balances are derived from daily balances.

     The table also presents  information for the periods indicated with respect
to the Company's net interest  margin,  which is net interest  income divided by
the average balance of interest earning assets.  This in an important  indicator
of commercial bank profitability.  The net interest margin is affected by yields
on interest-earning  assets, the costs of  interest-bearing  liabilities and the
relative amounts of interest  earning assets and interest  bearing  liabilities.
Another  indicator of The  Company's  net interest  income is the interest  rate
spread,  or the difference  between the average yield on interest earning assets
and the average rate paid on interest bearing liabilities.

                                       10
<PAGE>
<TABLE>
<CAPTION>
                                                                             Three months  ended September 30,
                                                             --------------------------------------------------------------
                                                                           2002                           2001
                                                             ------------------------------   -----------------------------
                                                                                    Average                         Average
                                                             Average                 Yield/   Average                Yield/
                                                             Balance      Interest   Cost     Balance     Interest    Cost
                                                             -------      --------   ----     -------     --------    ----
                                                                                (Dollars in thousands)
<S>                                                         <C>           <C>        <C>      <C>          <C>       <C>
Interest-earning assets:
   Loans receivable (1).................................... $118,817      $ 2,391    8.07%    $128,259     $2,776    8.59%
   Investment securities(2)................................    7,492           93    4.97        2,852         50    7.09
   Mortgage-backed securities..............................   13,325          199    5.99        5,409         89    6.51
   Short-term investments and other
        interest-earning assets............................    9,420           45    1.93       17,782        159    3.56
                                                            --------      -------             --------     ------
      Total interest-earning assets........................  149,054        2,728    7.34      154,302      3,074    7.91
Non-interest-earning assets................................    5,293                             5,812
                                                            --------                          --------
      Total assets......................................... $154,347                          $160,114
                                                            ========                          ========
Interest-bearing liabilities:
   Deposits (3)............................................ $112,080      $   777    2.78     $119,986      1,374    4.59
   Borrowings..............................................   21,438          286    5.28       22,116        327    6.05
                                                            --------      -------             -------      ------
      Total interest-bearing liabilities...................  133,518        1,063    3.19      141,102      1,701    4.78
Non-interest-bearing liabilities...........................    5,837      -------                5,554     ------
                                                            --------                          --------
      Total liabilities....................................  139,355                           146,656
Total Equity...............................................   14,992                            13,458
                                                            --------                          --------
      Total liabilities and retained earnings.............. $154,347                          $160,114
                                                            ========                          ========
Net interest income........................................               $ 1,665                          $1,373
                                                                          =======                          ======
Interest rate spread.......................................                          4.15%                           3.12%
                                                                                   ======                          ======
Net interest margin........................................                          4.48%                           3.53%
                                                                                   ======                          ======
Ratio of average interest-earning assets to average
   interest-bearing liabilities............................                        111.64%                         109.36%
                                                                                   ======                          ======
<FN>
(1) Includes nonaccrual loans
(2) Includes investments required by law
(3) Includes interest bearing escrow accounts
</FN>
</TABLE>

                                       11
<PAGE>
Provision For Loan Losses
-------------------------

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 loan losses.  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," or ("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,
current economic  conditions,  both national and local, and other factors unique
to particular loans and leases. The Company's management  periodically  monitors
and adjusts its  allowance  for loan losses  based upon its analysis of the loan
portfolio.

     The provision  for loan losses was $120,000 in the quarter ended  September
30, 2002,  compared to $290,000 for the quarter ended  September  30, 2001.  The
Company's allowance for loan losses has increased as a percentage of total loans
outstanding  to 1.27% at  September  30, 2002 from 1.20% at June 30,  2002.  The
Company's allowance for loan losses as a percentage of non-performing  loans was
83.79% at  September  30,  2002 as  compared  to 206.48% at June 30,  2002.  The
Company has concluded after analyzing the non-performing  loan portfolio and the
factors mentioned above, that the allowance is adequate.

The following table shows the activity in the allowance for loan losses.
<TABLE>
<CAPTION>
                                                                 THREE MONTHS
                                                              ENDED SEPTEMBER 30,
                                                              -------------------
                                                              2002         2001
                                                              ----         ----
<S>                                                           <C>          <C>
Allowance for loan losses, beginning of period                $1,438       1,161

Provision for loan losses                                        120         290

Loans Charged Off:
         Consumer                                                 57          49
         Real Estate                                               0           0
         Commercial                                               12          75
                                                              ------      ------
  Total Charge-Offs                                               69         124
Recoveries:
         Consumer                                                 11          13
         Real Estate                                               0           0
         Commercial                                                4           0
                                                              ------      ------
  Total Recoveries                                                15          13
                                                              ------      ------
Allowance for loan losses, end of period                      $1,504      $1,340
                                                              ======      ======
</TABLE>
     The following  table sets forth  information  with respect to the Company's
non-performing assets at the dates indicated.
<TABLE>
<CAPTION>
                                                                 At September 30,    At June 30,
                                                                 ---------------     -----------
                                                                     2002               2002
                                                                     ----               ----
                                                                         (In thousands)
<S>                                                              <C>                <C>
Loans accounted for on a non-accrual basis: (1)
    Real estate:
       Residential.............................................  $     297          $     285
       Commercial..............................................         --                 --
       Construction............................................        950                 --
    Consumer...................................................         --                 --
    Commercial Loan/Lease......................................        530                411
                                                                 ---------          ---------
       Total...................................................  $   1,777          $     696
                                                                 =========          =========
                                       12
<PAGE>

Accruing loans which are contractually past due
   90 days or more.............................................  $      --          $      --
                                                                 ---------          ---------
       Total...................................................  $      --          $      --
                                                                 ---------          ---------

       Total non-performing loans..............................  $   1,777          $     696
                                                                 =========          =========
Percentage of total loans......................................       1.52%              0.58%
                                                                 =========          =========
Other non-performing assets (2)................................  $       0          $     128
                                                                 =========          =========
<FN>
_____________
(1)  Non-accrual  status  denotes loans on which,  in the opinion of management,
     the collection of additional  interest is unlikely.  Payments received on a
     non-accrual loan are either applied to the outstanding principal balance or
     recorded as interest  income,  depending on management's  assessment of the
     collectability of the loan.
(2)  Other  non-performing  assets  represents  property acquired by the Company
     through foreclosure or repossession.  This property is carried at the lower
     of its fair market  value less  estimated  selling  costs or the  principal
     balance of the related loan, whichever is lower.
</FN>
</TABLE>

     At September 30, 2002,  non-accrual loans consisted of two residential real
estate loans  totaling  $297,000,  both of which were fully paid-off in October.
Also included on non-accrual  loans at September 30, 2002 is a land loan with an
outstanding  balance of $950,000.  The land securing this loan is under contract
for $1.0  million  with a qualified  buyer.  On  November  1, 2002,  the Company
received  a payment on this loan,  therefore  maintaining  its status as 90 days
delinquent.  Included  in  non-accrual  commercial  loans  is  $138,000  that is
guaranteed by the Small Business Administration.

     Except as  discussed  below,  the  Company had no loans not  classified  as
non-accrual,  90 days past due or  restructured  where known  information  about
possible credit problems of borrowers caused management to have serious concerns
as to the ability of the borrowers to comply with present loan  repayment  terms
and may result in disclosure as non-accrual,  90 days past due or  restructured.
At September 30, the Company had a $0.85 million commercial loan  collateralized
by  approximately  100  automobile  leases  and  the  security  interest  in the
automobiles  that was  classified  special  mention.  The vast majority of these
leases are performing as agreed. The Bank has taken possession of the collateral
and is receiving  payments  directly from the lessees.  The Bank at this time is
not able to estimate if any loss of principal  will arise from this  credit.  At
September 30, the Company had $250,000 in the 60-89 day delinquent category to a
local contracting  company that has ceased  operations and declared  bankruptcy.
Collateral  for this loan is the  principal's  primary  residence  and  business
assets. A very preliminary analysis revealed a collateral shortfall in the range
of $50,000 to $100,000.  When this estimate is firmed up, a charge will be taken
against the Bank's loan loss reserve. This credit is now on non-accrual.

Non-interest Income
-------------------

The Company's  non-interest  income consists of deposit fees,  service  charges,
late  fees and  gains on the sale of  loans,  securities  and  repossessed  real
estate.  Total noninterest income decreased by $477,000 or 79.1% to $126,000 for
the quarter  ended  September  30,  2002 from  $603,000  for the  quarter  ended
September 30, 2001. The decrease in non-interest  income is primarily the result
of the $337,000 gain on the sale of loans held for sale and the $174,000 gain on
the sale of investment  securities held for sale recognized in the quarter ended
September  30,  2001.  In the quarter  ended  September  30,  2002,  the Company
generated a $13,000 gain on the sale of equity  securities  and a $3,000 loss on
the sale of  repossessed  real  estate.  Fees and  service  charges  on  deposit
accounts  increased  by  $24,000  or 28.8% from  $85,000  in the  quarter  ended
September 30, 2001.  This  increase is primarily  due to the higher  balance and
number of transaction-based deposit accounts.

Non-interest Expenses
---------------------

Total non-interest expenses decreased by $24,000 or 2.1% to $1.1 million for the
quarter  ended  September  30,  2002 from $1.1  million  for the  quarter  ended
September  30, 2001.  Decreases  in  compensation  and benefits and  advertising
offset increases in other expense,  equipment expense and professional fees. The
decrease in compensation  and benefits is primarily due to the costs  recognized
in the prior  comparable  quarter  relating to the  freezing of the  stock-based
directors deferred  compensation plan.  Advertising expense has decreased due to
the timing of promotional  campaigns.  Other expenses  increased due to the loss
incurred due to a $37,000 bad check.  Professional  fees have  increased  due to
higher  attorney  fees  associated  with  delinquent  credits  as  well  as  the
engagement of an outside consultant firm to assist the Company in choosing a new
provider for data processing services.

                                       13
<PAGE>
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  a
relatively  high 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, the Company's  relatively high liquidity will, to
a certain extent, result in lower rates of return on assets.

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
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
September 30, 2002,  the Company's cash on hand,  interest-bearing  deposits and
Federal  funds  sold  totaled  $11.2  million.  In  addition,  the  Company  has
approximately   $19.2   million   of   investment   securities   classified   as
available-for-sale, none of which are pledged.

The Company anticipates that it will have sufficient funds available to meet its
current  loan  commitments  of $6.7  million and unused  lines of credit of $3.6
million.  Certificates  of deposit that are scheduled to mature in less than one
year  at  September  30,  2002  totaled  $31.3  million.  Historically,  a  high
percentage of maturing deposits have remained with the Company. However, due the
Company's  high  level  of  liquidity,  rates  paid on  certificates  are  being
aggressively  lowered.  This may  result  in some  customers  withdrawing  their
certificates in order to chase yields at other financial institutions.

The Company's  primary  sources of funds are deposits and proceeds from maturing
investment securities and mortgage-backed  securities and principal and interest
payments   on  loans.   While   maturities   and   scheduled   amortization   of
mortgage-backed  securities and loans are predictable sources of funds,  deposit
flows and mortgage prepayments are greatly influenced by general interest rates,
economic conditions, competition and other factors.

The Company's primary sources of cash provided from investing  activities during
the three months ended  September 30, 2002 was the $1.7 million of loan payments
in excess of  disbursements  and $0.5  million in  principal  payments  from the
mortgage-backed security portfolio.

The  Company's  primary  use of cash in  financing  activities  during the three
months ended September 30, 2002 consisted of a $2.8 million decrease in deposits
and a $2.2 million decrease in borrowed money.

The Company, as the holding company for the Bank, has an annual cash requirement
of approximately  $539,000 for the payment of common and preferred dividends and
interest and principal on a loan whose proceeds were used in the  acquisition of
Northfield  Bancorp,  Inc. and Northfield Federal Savings Bank in November 2000.
As of  September  30,  2002,  the  balance of this loan is $0.8  million.  As of
November 1, 2002, the balance of this loan is $0.55 million.  The only source of
funds for the holding  company is dividends  from the Bank.  The Bank cannot pay
dividends  to the holding  company  without  prior  permission  from the Federal
Reserve Bank of Richmond.  When reviewing requests to pay this type of dividend,
the Federal Reserve Bank of Richmond considers, among other factors, the current
capital levels and earnings of the Bank. The Bank has not experienced,  nor does
it anticipate any difficulty in receiving such permission.

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

ITEM 3 : CONTROLS AND PROCEDURES

     Within 90 days prior to the date of this report, the Company carried out an
evaluation,  under the supervision and with the  participation  of the principal
executive officer and principal  financial officer,  of the effectiveness of the
design and operation of our disclosure  controls and  procedures.  Based on this
evaluation,  the principal  executive  officer and principal  financial  officer
concluded that the Company's disclosure controls and procedures are effective in
timely  alerting  them to  material  information  required to be included in our
periodic  SEC  reports.  It should  be noted  that the  design of any  system of
controls  is based in part upon  certain

                                       14
<PAGE>

assumptions about the likelihood of future events, and there can be no assurance
that any design will succeed in achieving  its stated goals under all  potential
future conditions, regardless of how remote.

     In addition,  the Company  reviewed its internal  controls,  and there have
been no  significant  changes in the  Company's  internal  controls  or in other
factors that could significantly affect those controls subsequent to the date of
their last evaluation.


        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


        (a)  Exhibits

        The following exhibit is filed herewith:

        Exhibit                             Title
        Number                              ------
        ------
        99        Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
                  Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

        (b)  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:  November 12, 2002                   /s/ Joseph J. Bouffard
                                           -------------------------------------
                                           Joseph J. Bouffard
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)




Date: November 12, 2002                    /s/ Michael J. Dee
                                           -------------------------------------
                                           Michael J. Dee
                                           Chief Financial Officer & Controller
                                           (Principal Financial Officer)


                                       16
<PAGE>
                                  CERTIFICATION


     I, Joseph J. Bouffard,  President and Chief  Executive  Officer of Patapsco
Bancorp, Inc., certify that:

1. I have reviewed  this  quarterly  report on Form 10-QSB of Patapsco  Bancorp,
Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
the  registrant's  board of  directors  (or persons  performing  the  equivalent
functions):

a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and


6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: November 12, 2002

                                      /s/ Joseph J. Bouffard
                                      ---------------------------------------
                                      Joseph J. Bouffard
                                      President and Chief Executive Officer

                                       17
<PAGE>

                                  CERTIFICATION


     I,  Michael J. Dee,  Chief  Financial  Officer and  Controller  of Patapsco
Bancorp, Inc., certify that:

1. I have reviewed  this  quarterly  report on Form 10-QSB of Patapsco  Bancorp,
Inc.;

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:

a) designed  such  disclosure  controls and  procedures  to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is made known to us by others  within those  entities,  particularly  during the
period in which this quarterly report is being prepared;

b) evaluated  the  effectiveness  of the  registrant's  disclosure  controls and
procedures  as of a date  within  90  days  prior  to the  filing  date  of this
quarterly report (the "Evaluation Date"); and

c) presented in this quarterly report our conclusions about the effectiveness of
the  disclosure  controls  and  procedures  based  on our  evaluation  as of the
Evaluation Date;

5. The registrant's other certifying officers and I have disclosed, based on our
most recent evaluation,  to the registrant's auditors and the audit committee of
the  registrant's  board of  directors  (or persons  performing  the  equivalent
functions):

a) all significant  deficiencies in the design or operation of internal controls
which  could  adversely  affect the  registrant's  ability  to record,  process,
summarize and report  financial data and have  identified  for the  registrant's
auditors any material weaknesses in internal controls; and

b) any  fraud,  whether  or not  material,  that  involves  management  or other
employees who have a significant role in the registrant's internal controls; and

6. The  registrant's  other  certifying  officers  and I have  indicated in this
quarterly  report  whether or not there  were  significant  changes in  internal
controls or in other factors that could  significantly  affect internal controls
subsequent to the date of our most recent  evaluation,  including any corrective
actions with regard to significant deficiencies and material weaknesses.

Date: November 12, 2002


                                       /s/ Michael J. Dee
                                       ---------------------------------------
                                       Michael J. Dee
                                       Chief Financial Officer and Controller