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 December 31, 2001

[ ]  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  February  8, 2002,  the issuer had  366,685  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 December 31,
              2001 And June 30, 2001                                          3

         Consolidated Statements of Income for the Six and Three-Month
              Periods Ended December 31, 2001 and 2000                        4

         Consolidated Statements of Comprehensive Income for the Six
              and Three-Month Periods Ended December 31, 2001 and 2000        5

         Consolidated Statements of Cash Flows for the Six-Month Periods
              Ended December 31, 2001 and 2000                                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>
                                                                          DECEMBER 31,            JUNE 30,
                                                                        2001 (UNAUDITED)            2001
                                                                        ----------------        ------------

                                      Assets
                                      ------
<S>                                                                      <C>                   <C>
Cash:
     On hand and due from banks                                          $   2,626,766         $  2,710,768
     Interest bearing deposits in other banks                               11,702,079            2,630,770
Federal funds sold                                                           3,404,000            5,819,093
Investment securities, at fair value                                         3,410,123            2,188,212
Mortgage Backed securities, at fair value                                    4,554,201            5,679,605
Loans held for sale                                                                 --            9,914,139
Loans receivable, net                                                      122,173,853          127,833,640
Investment in securities required by law, at cost                            1,903,350            1,903,350
Property and equipment, net                                                  1,136,866            1,193,425
Goodwill                                                                     1,869,691            1,869,691
Deferred income taxes                                                          754,101              838,061
Accrued interest, prepaid expenses and other assets                          1,328,311            1,589,529
                                                                          ------------         ------------
              Total assets                                                $154,863,341         $164,170,283
                                                                          ============         ============

                   Liabilities and Stockholders' Equity
                   ------------------------------------
Liabilities:
   Savings deposits:
        Interest bearing deposits                                         $117,984,359         $119,622,698
        Non interest bearing deposits                                        5,159,289            4,369,526
   Borrowings                                                               16,788,399           23,661,772
   Accrued expenses and other liabilities                                    1,309,269            3,091,467
                                                                          ------------         ------------
              Total liabilities                                            141,241,316          150,745,463

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; 103,397 and 106,073
      shares outstanding, respectively                                           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 366,685 and
     332,950 shares, respectively                                                3,667                3,330
  Additional paid-in capital                                                 2,511,365            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)             (77,544)
   Retained income, substantially restricted                                 8,778,026            9,331,919
   Unrealized net holding losses on available-for-sale
      portfolios, net of taxes                                                   4,902              131,689
                                                                          ------------         ------------
               Total stockholders' equity                                   13,622,025           13,424,820
                                                                          ------------         ------------

              Total liabilities and stockholders' equity                  $154,863,341         $164,170,283
                                                                          ============         ============
                                       3
</TABLE>
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                      FOR SIX MONTHS ENDED     FOR THREE MONTHS ENDED
                                                           DECEMBER 31,              DECEMBER 31,
                                                     -----------------------   -----------------------
                                                        2001         2000        2001          2000
                                                     ----------   ----------   ----------   ----------
<S>                                                  <C>          <C>          <C>          <C>
Interest income:
    Loans receivable                                 $5,422,740   $4,650,502   $2,646,967   $2,604,284
    Mortgage-backed securities                          167,757      179,515       79,003      101,674
    Investment Securities                                93,252      104,786       42,920       83,885
    Federal funds sold and other investments            262,606      100,223      102,972       51,167
                                                     ----------   ----------   ----------   ----------
          Total interest income                       5,946,355    5,035,026    2,871,862    2,841,010
                                                     ----------   ----------   ----------   ----------

Interest expense:
    Savings deposits                                  2,604,252    2,013,705    1,232,707    1,173,100
    Borrowings & Other                                  627,400      630,761      297,886      385,499
                                                     ----------   ----------   ----------   ----------
          Total interest expense                      3,231,652    2,644,466    1,530,593    1,558,599
                                                     ----------   ----------   ----------   ----------

          Net interest income                         2,714,703    2,390,560    1,341,269    1,282,411
Provision for losses on loans                           380,000      240,000       90,000      165,000
                                                     ----------   ----------   ----------   ----------
          Net interest income after provision
                   for losses on loans                2,334,703    2,150,560    1,251,269    1,117,411

Noninterest income:
    Fees and service charges                            173,869      147,835       88,890       80,573
    Net gain on sales of securities                     174,470       37,473           --       37,473
    Net gain on sale of loans                           337,025           --           --           --
    Net gain on sale of repossessed real estate              --       17,145           --           --
    Other                                                 8,907       12,568        2,509        7,276
                                                     ----------   ----------   ----------   ----------
        Total noninterest income                        694,272      215,021       91,399      125,322
                                                     ----------   ----------   ----------   ----------

Noninterest expenses:
    Compensation and employee benefits                1,321,453    1,025,489      609,701      521,959
    Insurance premiums                                   30,606       21,712       16,139       10,839
    Professional fees                                    93,030       58,293       44,749       21,178
    Equipment expense                                   112,157       67,828       65,713       34,955
    Occupancy Expense                                   102,322       52,778       48,814       30,289
    Advertising                                          81,053       68,340       33,610       45,054
    Data processing                                     102,367       80,248       49,574       40,059
    Goodwill Amortization                                    --       24,893           --       24,893
    Other                                               347,144      268,083      173,031      144,981
                                                     ----------   ----------   ----------   ----------
          Total noninterest expense                   2,190,130    1,667,664    1,041,331      874,207
                                                     ----------   ----------   ----------   ----------
          Income before provision for income taxes      838,845      697,917      301,337      368,526
Provision for income taxes                              324,739      271,273      115,059      144,061
                                                     ----------   ----------   ----------   ----------
          Net Income                                 $  514,106   $  426,644   $  186,278   $  224,465
                                                     ==========   ==========   ==========   ==========
          Basic earnings per share                   $     1.18   $     1.15   $     0.39   $     0.56
                                                     ==========   ==========   ==========   ==========
          Diluted earnings per share                 $     1.08   $     1.10   $     0.39   $     0.54
                                                     ==========   ==========   ==========   ==========
</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 SIX MONTHS ENDED     FOR THREE MONTHS ENDED
                                                           DECEMBER 31,              DECEMBER 31,
                                                     -----------------------   -----------------------
                                                        2001         2000        2001          2000
                                                     ----------   ----------   ----------   ----------
<S>                                                  <C>          <C>          <C>          <C>
Net income                                           $ 514,106     $ 426,644    $186,278    $224,465
Other comprehensive income, net of tax:
  Unrealized net holding (losses)/gains on
    available-for-sale portfolios                      101,409       122,746     (68,806)     64,982

Reclassification adjustment for gains
    Included in net income, net of tax                (107,081)           --          --          --
                                                     ---------     ---------    --------    --------

Comprehensive income                                 $ 508,434     $ 549,390    $117,472    $289,447
                                                     =========     =========    ========    ========
</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 SIX MONTHS ENDED
                                                                                DECEMBER  31,
                                                                         ----------------------------
                                                                             2001            2000
                                                                         ------------    ------------
<S>                                                                      <C>             <C>
Cash flows from operating activities:
  Net income                                                             $    514,106    $    426,644
  Adjustments to reconcile net income to net
    cash provided by operating activities:
       Depreciation                                                            73,352          68,002
       Provision for losses on loans                                          380,000         240,000
       Provision for loss on foreclosed real estate                            10,000              --
       Goodwill Amortization                                                       --          24,893
       Gain on Sale of repossessed real estate                                     --          17,145
       Gain  on  sale  of  investment  & mortgage backed securities          (174,470)         37,473
       Gain from sale of loans held for sale                                 (337,025)             --
       Amortization of premiums and discounts, net                            189,669          12,187
       Non-cash compensation under stock-based benefit plans                   60,610              --
       Deferred loan origination fees, net of costs                            18,975        (141,739)
       (Increase) Decrease in deferred taxes,
           prepaid expenses and other assets                                  414,970        (559,704)
       Decrease in accrued expenses and other liabilities                  (1,782,198)       (682,212)
                                                                         ------------    ------------
         Net cash used in operating activities                               (632,011)       (176,160)
                                                                         ------------    ------------

Cash flows from investing activities:
  Loan principal disbursements, net of repayments                           5,056,533      (5,433,940)
  Proceeds from sale of loans available for sale                           10,251,164              --
  Proceeds from sale of repossessed real estate                                    --          72,116
  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
  Purchase of investment security available-for-sale                       (3,255,664)             --
  Purchase of stock in Federal Home Loan Bank of Atlanta                           --        (240,000)
  Purchase of property and equipment                                          (16,793)        (49,411)
  Cash consideration in the Northfield acquisition, net                            --      (4,380,673)
  Principal repayment on mortgage-backed securities available for sale      1,121,769         183,374
                                                                         ------------    ------------
        Net cash used in investing activities                              15,161,519      (6,482,102)

Cash flows from financing activities:
  Net increase (decrease) in deposits                                        (806,570)      2,682,372
  Net increase (decrease) in borrowings                                    (6,900,000)      8,336,103
  Preferred Stock repurchase                                                  (55,638)        (11,976)
  Dividends paid                                                             (195,086)        (91,670)
                                                                         ------------    ------------
         Net cash (used in) provided by financing activities               (7,957,294)     10,914,829
                                                                         ------------    ------------

  Net increase (decrease) in cash and cash equivalents                   $  6,572,214    $  4,256,567
  Cash and cash equivalents at beginning of period                         11,160,631       3,437,783
                                                                         ------------    ------------
  Cash and cash equivalents end of period                                $ 17,732,845    $  7,694,350
                                                                         ============    ============
Supplemental information:
  Interest paid on deposits and borrowed funds                              3,200,209       2,556,229
  Income taxes paid                                                           541,800         140,000
  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 six and three months
ended December 31, 2001 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 December  31,  2001,  the Company  met each of the three  minimum  regulatory
capital  requirements.  The following table summarizes the Company's  regulatory
capital position at December 31, 2001 (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)               $12,188          12.74%     $7,651      8.00%    $9,563         10%

Tier 1 Capital (to Risk
   Weighted Assets)              $10,993          11.49%     $3,825      4.00%    $5,738          6%

Tier 1 Capital (to Average
    Assets)                      $10,993           7.13%     $6,163      4.00%    $7,704          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>
                                                       Six Months Ended          Three Months Ended
                                                      December 31, 2001          December 31, 2001
                                                     Basic        Diluted       Basic         Diluted
                                                     ---------------------      ----------------------
<S>                                                  <C>         <C>            <C>            <C>
Net Income                                           416,990    514,106         137,705        186,275

Weighted average shares outstanding                  351,953    351,953         354,645        354,645

Diluted Securities:
  Preferred Stock                                               103,615                        103,432
  MRP Shares                                                         82                            198
  Options                                                        20,516                         23,275
------------------------------------------------------------------------------------------------------
Adjusted Weighted Average Shares                     351,953    476,167         354,645        481,550

Per Share Amount                                        1.18       1.08            0.39           0.39
</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 DECEMBER 31, 2001 AND JUNE 30, 2001

The Company's  assets  decreased by $9.3 million,  or 5.7% to $154.9  million at
December, 31, 2001 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 $1.6
million  outflow of deposits,  primarily high cost  certificate  accounts and to
fund escrow disbursements for property insurance of mortgage customers. Cash and
equivalents  increased  approximately  $6.6  million or 59% to $17.1  million at
December  31,  2001 from  $11.1  million at June 30,  2001.  Loans held for sale
decreased $9.9 million and investments held for sale increased $1.2 million. The
mortgage  loans were sold in order to reduce the amount of long-term  fixed rate
assets in the portfolio and to accelerate  the  transformation  of the Company's
balance  sheet  to one  more  resembling  a  commercial  bank.  The  sale of the
investment securities,  primarily callable corporate bonds, in the first quarter
of the Company's fiscal year has been offset by the subsequent  purchase of $3.2
million of U.S. Government, agency and corporate securities.

Total  borrowings  have  decreased by $6.9 million or 29.1% to $16.8  million at
December  31, 2001 from $23.7  million at June 30.  Borrowings  from the Federal
Home Loan Bank of Atlanta are being repaid as they come due.  Additionally,  the
loan at the holding  company has been paid down $0.5  million to $1.2 million at
December 31,

                                       8
<PAGE>
2001.  Other  liabilities,  primarily  escrow  accounts for  property  taxes and
insurance held for our mortgage customers  decreased by $1.8 million or 57.7% to
$1.3 million at December 31 from $3.1 million ate June 30, 2001.


COMPARISON OF OPERATING RESULTS FOR THE QUARTERS AND SIX MONTHS ENDED DECEMBER
31, 2001 AND DECEMBER 31, 2000

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

The  Company's  net income  decreased  by $38,000 or 17.0% to  $186,000  for the
quarter ended December 31, 2001 from $224,000 for the quarter ended December 31,
2000. The Company's net income increased by $87,000 or 20.1% to $514,000 for the
six months  ended  December  31,  2001 from  $427,000  for the six months  ended
December  31,  2000.  The  decrease  in the  Company's  net  income  during  the
comparable three-month period is a result of higher net interest income of $134,
000 being  offset by lower  noninterest  income,  $34,000  and higher  operating
expenses,$167,000.  Noninterest  income in the  comparable  quarter  included  a
$37,000  gain  on  the  sale  of  investment   securities  available  for  sale.
Noninterest expenses in the quarter ended December 31, 2001 were impacted by the
compensation and professional fee expenses  associated with the termination of a
directors deferred  compensation plan as well as higher equipment expenses.  The
rate of increase in operating expenses in the quarter ended December 31, 2001 is
not expected to continue in the future. The increase in the Company's net income
in the comparable  six-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.

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

Total  interest  increased  by $31,000 or 1.1% to $2.87  million for the quarter
ended  December 31, 2001 from $2.84 million for the quarter  ended  December 31,
2000.  Total interest income  increased by $0.9 million or 18.1% to $5.9 million
for the six months ended  December 31, 2001 from $5.0 million for the six months
ended December 31, 2000.  The increases in interest  income  resulted  primarily
from the growth in the volume of earning  assets  offsetting the decrease in the
yield on earning  assets in both the three and six month  periods.  The  average
balance of earning  assets in the three  months  increased  by $18.3  million to
$150.5 million in the  comparable  three month period while the yield on earning
assets  decreased  96  basis  points  to  7.57%  in the  same  period.  For  the
comparative six-month period, the Company's average yield on assets decreased 90
basis  points to 7.74% and the  Company's  average  balance of  interest-earning
assets  increased by $36.2  million.  In the three and six month  periods  ended
December 31, 2000, average earning assets only included the assets acquired from
Northfield Bancorp for approximately one and a half months.

Interest  income  on loans  receivable  increased  by  $43,000  or 1.6% to $2.64
million  for the  quarter  ended  December  31,  2001 from $2.6  million for the
quarter ended December 31, 2000.  Interest income on loans receivable  increased
by $0.8 million or 16.6% to $5.4  million for the six months ended  December 31,
2001 from $4.6 million for the six months ended  December 31, 2000. The increase
in interest income on loans receivable during the three and six month periods is
due  to  increases  in the  average  balances  on  loans  receivable  offsetting
decreases in the yields  earned on the loan  portfolio.  During the three months
ended  December 31, 2001 as compared to the same period ended  December 31, 2000
the average loans receivable balance increased by $7.3 million or 6.1% to $125.9
million from $118.7  million and the average yield  decreased by 37 basis points
to 8.34% from 8.71%.  During the six months ended  December 31, 2001 as compared
to the same  period  ended  December  31,  2000  the  average  balance  of loans
receivable   increased  by  $21.9  million  or  20.8%  to  $127.1  million  from
$105.1million  and the average yield  decreased by 37 basis points to 8.45% from
8.82%.

Interest income on investment  securities decreased by $41,000 to $43,000 and by
$12,000 to $93,000 in the three and six month periods  ended  December 31, 2001,
respectively primarily due to the sale of investment securities in the Company's
first fiscal quarter.

Interest income on mortgage-backed  securities  decreased by $23,000 to $ 79,000
and by $12,000 to $168,000 in the three and six month periods ended December 31,
2001, respectively.

Interest income on federal funds sold and other investments increased by $52,000
or 101.2% to $103,000 for the quarter  ended  December 31, 2001 from $51,000 for
the quarter ended December 31, 2000.  Interest  income on federal funds sold and
other investments increased by $162,000 or 162.0% to $263,000 for the six months
ended  December 31, 2001 from  $100,000  for the six months  ended  December 31,
2000.  The primary  reason for the  increases in the three and six month periods
was the  increase  in the average  balances  due to the sale and payoff of first
mortgage loans.

                                       9
<PAGE>
Interest Expense
----------------

Total  interest  expense  decreased by $28,000 or 1.8% to $1.53  million for the
quarter  ended  December  31,  2001 from $1.59  million  for the  quarter  ended
December 31, 2000. Total interest expense  increased by $0.6 million or 22.2% to
$3.2  million for the six months  ended  December  31, 2001 from $2.6 million at
December  31,  2000.  The  decrease in interest  expense  during the  comparable
quarterly  periods  was  primarily  due  to  lower  rates  on  interest  bearing
liabilities  offsetting higher average volumes. The increase in interest expense
in the comparable six month periods is due to higher average volumes  offsetting
lower  rates.  During the  quarter  ended  December  31, 2001 as compared to the
quarter  ended  December  31,  2000  the  average  balance  of  interest-bearing
liabilities  increased by $17.5 million to $138.0  million from $120.5  million.
The average rate on interest-bearing liabilities decreased by 73 basis points to
4.40% from 5.13% in the quarterly  period.  During the six months ended December
31,  2001 as  compared  to the six months  ended  December  31, 2000 the average
balance of interest-bearing  liabilities in increased by $34.6 million to $139.6
million from $105.0  million and the average  rate  decreased 43 basis points to
4.59% from 5.02%.

Interest  expense on deposits  increased by $60,000 or 5.1% to $1.23 million for
the quarter  ended  December 31, 2001 from $1.17  million for the quarter  ended
December 31,  2000.  Interest  expense on deposits  increased by $0.6 million or
29.3% to $2.6 million  from $2.0  million for the six months ended  December 31,
2000.  The  increase  in  interest  expense on  deposits  during the  comparable
quarters was attributable to an increase in the average balance of $25.5 million
offsetting a 0.84%  decrease in average rates to 4.07% from 4.91%.  The increase
in interest expense on deposits during the comparable  six-month periods was due
to a $35.8 million  increase in the average balance to $120.1 million from $84.3
million offsetting a decrease in the average rate to 4.30% from 4.74%.

Interest expense on borrowings decreased by $87,000 or 22.7% to $298,000 for the
quarter ended December 31, 2001 from $385,000 for the quarter ended December 31,
2000.  Interest  expense on  borrowings  increased by $3,000 or 0.5% to $627,000
during the six months  ended  December  31,  2001 from  $630,000  during the six
months ended  December 31, 2000.  The decrease for the  comparable  quarters was
primarily  attributable  to a decrease of $8.0  million in the  average  balance
offsetting an increase in the average rate

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

The Company's net interest income before the provision for loan losses increased
by $59,000 or 4.6% to $1.34 million for the quarter ended December 31, 2001 from
$1.28  million for the quarter  ended  December  31, 2000.  Net interest  income
before the  provision  for loan losses  increased  by $324,000 or 13.6% to $2.71
million for the six months ended  December 31, 2001 from $2.4 million during the
six months ended December 31, 2000.  The increase in net interest  income during
the comparable quarters and six month periods were primarily due to increases in
average  balances of earning assets  offsetting the decrease in the net interest
margin from 3.85% to 3.54% and from 4.10% to 3.53% in the  comparable  three and
six month periods. The decrease in the net interest margin is due to an increase
in  short-term,  liquid assets  resulting  from the sale of loans and investment
securities, the purchase of Northfield, competitive pressure on loan and deposit
rates and the falling  interest  rate  environment.  The falling  interest  rate
environment resulted in the Company generating  substantial gains on the sale on
loans  and  investment  securities  held for sale,  however,  the  proceeds  are
primarily  invested in overnight  investments  at  historically  low rates.  The
assets of Northfield  consisted  primarily of first  mortgage loans that yielded
lower rates than the assets of the Patapsco  Bank.  The Bank is  endeavoring  to
convert these assets to higher yielding commercial mortgage, commercial business
and consumer  loans.  With the economy in or teetering on recession,  the demand
for such loans of  acceptable  quality is not high  enough to put the  Company's
excess cash balances to work. In the  meantime,  borrowings  are being paid down
and deposit rates have been dramatically lowered.

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>
                                                                   SIX MONTHS ENDED DECEMBER 31,
                                               -----------------------------------------------------------------------------
                                                            2001                                     2000
                                               ---------------------------------       -------------------------------------
                                               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)                       $127,108       $5,423          8.45%     $105,166        $4,650         8.82%
   Mortgage-backed securities                    2,997           93          6.17%        2,786           105         7.46%
   Investment securities                         5,113          168          6.51%        5,110           180         7.01%
   Federal funds sold and other
      interest-earning assets                   17,176          262          3.03%        3,145           100         6.36%
                                              --------       ------                    --------        ------
Total interest earning assets                  152,394        5,946          7.74%      116,207         5,035         8.64%
Noninterest-earning assets                       6,026       ------                       3,948        ------
                                              --------                                 --------
Total Average Assets                          $158,421                                 $120,155
                                              ========                                 ========

Interest-bearing liabilities:
Savings deposits                              $120,147       $2,604          4.30%     $ 84,315        $2,014         4.74%
Borrowings                                      19,422          627          6.38%       20,673           630         6.06%
                                              --------       ------                    --------        ------
Total interest-bearing liabilities             139,569        3,231          4.59%      104,988         2,644         5.02%
                                                             ------        ------                      ------        -----
Noninterest-bearing liabilities                  5,305                                    4,481
                                              --------                                 --------
Total liabilities                              144,874                                  109,469
Stockholders' equity                            13,547                                   10,686
                                              --------                                 --------
    Total liabilities and stockholders'
      equity                                  $158,421                                 $120,155
                                              ========                                 ========

Net interest income                                          $2,715                                    $2,391
                                                             ======                                    ======
Net interest margin                                                          3.53%                                    4.10%
                                                                            =====                                   ======
Interest rate spread                                                         3.15%                                    3.62%
                                                                            =====                                   ======
Ratio of average interest-earning assets
  to average interest-bearing liabilities                                  109.19%                                  110.69%
                                                                           ======                                   ======
<FN>
-----------
(1)  Yields and rates are annualized.
(2)  Includes nonaccrual loans.
</FN>
</TABLE>

                                       11
<PAGE>
<TABLE>
<CAPTION>
                                                                  THREE MONTHS ENDED DECEMBER 31,
                                               -----------------------------------------------------------------------------
                                                            2001                                     2000
                                               ---------------------------------       -------------------------------------
                                               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)                       $125,957       $2,647          8.34%     $118,690        $2,604         8.71%
   Mortgage-backed securities                    3,141           43          5.41%        4,156            84         8.01%
   Investment securities                         4,818           79          6.51%        5,731           102         7.04%
   Federal funds sold and other
      interest-earning assets                   16,569          103          2.47%        3,631            51         5.59%
                                              --------       ------                    --------        ------
Total interest earning assets                  150,486        2,872          7.57%      132,208         2,841         8.53%
Noninterest-earning assets                       6,535       ------                       4,727        ------
                                              --------                                 --------
Total Average Assets                          $157,021                                 $136,935
                                              ========                                 ========
Interest-bearing liabilities:
Savings deposits                              $120,308       $1,233          4.07%     $ 94,836        $1,173         4.91%
Borrowings                                      17,726          298          6.58%       25,728           386         5.94%
                                              --------       ------                    --------        ------
Total interest-bearing liabilities             138,035        1,531          4.40%      120,564         1,559         5.13%
                                                             ------        ------                      ------        -----
Noninterest-bearing liabilities                  5,340                                    4,809
                                              --------                                 --------
Total liabilities                              143,375                                  125,373
Stockholders' equity                            13,646                                   11,562
                                              --------                                 --------
    Total liabilities and stockholders'
      equity                                  $157,021                                 $136,935
                                              ========                                 ========

Net interest income                                          $1,341                                    $1,282
                                                             ======                                    ======
Net interest margin                                                          3.54%                                    3.85%
                                                                            =====                                   ======
Interest rate spread                                                         3.17%                                    3.40%
                                                                            =====                                   ======
Ratio of average interest-earning assets
  to average interest-bearing liabilities                                  109.02%                                  109.66%
                                                                           ======                                   ======
<FN>
-----------
(1)  Yields and rates are annualized.
(2)  Includes nonaccrual loans.
</FN>
</TABLE>
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 $90,000 in the quarter ended December 31,
2001,  compared to $165,000 for the quarter ended  December 31, 2000. Due to the
provision  and the sale and payoff of loans,  the  Company's  allowance for loan
losses has  increased as a  percentage  of total loans  outstanding  to 1.12% at
December 31, 2001 from 0.88% at June 30, 2001. The Company's  allowance for loan
losses as a percentage of  nonperforming  loans was 167.03% at December 31, 2001
as compared to 660.4% at June 30, 2001.

                                       12
<PAGE>


Activity in the allowance for loan losses is as follows (dollars in thousands):
<TABLE>
<CAPTION>
                                                    SIX MONTHS ENDED        THREE MONTHS ENDED
                                                    ----------------        ------------------
                                                                    DECEMBER 31,
                                                                    ------------
                                                     2001     2000              2001      2000
                                                     ----     ----              ----      ----
<S>                                                  <C>      <C>               <C>       <C>
Allowance for loan losses, beginning of period       $1,161     743             $1,339     778

Provision for loan losses                               380     240                 90     165

Allowance assumed in acquisition                         --     183                 --     183

Loans Charged Off:
         Consumer                                       104      88                 55      54
         Real Estate                                      0       0                  0       0
         Commercial                                     107      17                 31       0
                                                     ------  ------             ------  ------
  Total Charge-Offs                                     211     105                 86      54

Recoveries:
         Consumer                                        23      20                 11       9
         Real Estate                                     12       0                 12       0
         Commercial                                      13       0                 12       0
                                                     ------  ------             ------  ------
  Total Recoveries                                       48      20                 35       9
                                                     ------  ------             ------  ------

Allowance for loan losses, end of period             $1,378  $1,081             $1,378  $1,081
                                                     ======  ======             ======  ======
</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 $34,000 or 27.1% to $91,000 for
the quarter ended December 31, 2001 from $125,000 for the quarter ended December
31, 2000. Total  noninterest  income increased by $479,000 or 222.9% to $694,000
during the six months  ended  December  31,  2001 from  $215,000  during the six
months  ended  December  31, 2000.  The  decrease in  noninterest  income in the
comparable  quarters is due to a $37,000 gain on the sale of available  for sale
investment securities offsetting higher fees on deposits due to higher balances.
The increase in noninterest  income in the comparable six month period is due to
the  $337,000  gain on the sale of loans  held for sale,  the  $174,000  gain on
securities  held for sale and higher  service  fees on deposits  offsetting  the
$17,000  gain on the sale of  repossessed  real  estate in the six month  period
ended December 31, 2000.

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

Total  noninterest  expenses  increased by $167,000 or 19.1% to $1.0 million for
the quarter ended December 31, 2001 from $874,000 for the quarter ended December
31, 2000. Total noninterest expense increased by $522,000 to $2.2 million during
the six months ended  December 31, 2001 from $1.7 million  during the six months
ended  December 31,  2000.  Increases in all  categories  primarily  result from
Northfield  acquisition.  The growth in noninterest expenses is expected to slow
as the Northfield  operation has been integrated and for the most part,  brought
in line with the operations of the Patapsco Bank.

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.

                                       13
<PAGE>

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
December 31, 2001,  the Company's  cash on hand,  interest-bearing  deposits and
Federal  funds  sold  totaled  $17.7  million.  In  addition,  the  Company  has
approximately  $7.9  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 $4.6  million.  These  funds  will be  internally
generated,  raised through  deposit  operations,  or borrowed.  Certificates  of
deposits that are scheduled to mature in less than one year at December 31, 2001
totaled $49.0 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  have been aggressively  lowered.  This may result in
some customers  withdrawing their certificates in order to chase yields at other
financial institutions.

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


                                       14

<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
         The following table sets forth matters that were voted upon at
         the Company's Annual Meeting of Stockholder's held on October
         26, 2001:

                                    Votes            Votes          Broker
                                     For           Withheld        Non-Votes
                                   -------         --------        ---------
Election of Directors:

William R. Waters                  289,430           3,981              -
Gary R. Bozel                      279,485          13,926              -
Thomas P. O'Neill                  293,296             115              -
J. Thomas Hoffman                  291,300           2,111              -


Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K


(b)  On October  25,2001,  the Company filed a Current  Report on Form 8-K under
     Item 5 announcing that it had declared a 10% common stock dividend.

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




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


                                       16