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, 2001

[ ]  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
               --------------------------------------------------
               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
    ---    ---

     As of November  10,  2001,  the issuer had 327,390  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, 2001 (Unaudited) and June 30, 2001                   3

         Consolidated Statements of Operations for the Three-Month
         Periods Ended September 30, 2001 and 2000 (Unaudited)               4

         Consolidated Statements of Comprehensive Income Three-Month
         Periods Ended September 30, 2001 and 2000 (Unaudited)               5

         Consolidated Statements of Cash Flows for the Three-Month
         Periods Ended September 30, 2001 and 2000 (Unaudited)               6

         Notes to Consolidated 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>
                                                                          SEPTEMBER 30         JUNE 30,
                                                                              2001                2001
                                                                         -------------        ------------
<S>                                                                      <C>                 <C>
              Assets
              ------
Cash:
     On hand and due from banks                                          $  2,654,419        $  2,710,768
     Interest bearing deposits in other banks                              10,275,026           2,630,770
Federal funds sold                                                          6,199,515           5,819,093
Investment securities, at fair value                                          199,804           2,188,212
Mortgage-Backed Securities, at fair value                                   5,192,280           5,679,605
Loans available for sale                                                           --           9,914,139
Loans receivable, net                                                     127,571,062         127,833,940
Investment in securities required by law, at cost                           1,903,350           1,903,350
Property and equipment, net                                                 1,167,941           1,193,425
Goodwill                                                                    1,869,691           1,869,691
Deferred income taxes                                                         712,535             838,061
Accrued interest, prepaid expenses and other assets                         1,574,743           1,589,529
                                                                         ------------        ------------
              Total assets                                               $159,320,365        $164,170,283
                                                                         ============        ============
              Liabilities and Stockholders' Equity
              ------------------------------------
Liabilities:
   Savings deposits:
        Interest bearing deposits                                        $119,110,770        $119,622,698
        Non interest bearing deposits                                       4,756,195           4,369,526
   Borrowings                                                              20,074,964          23,661,772
   Accrued expenses and other liabilities                                   1,574,743           3,091,467
                                                                         ------------        ------------
              Total liabilities                                           145,776,522         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; 103,566 and 106,073 shares outstanding            1,036               1,061
Additional paid-in-capital                                                  2,590,493           2,650,733
   Common stock $0.01 par value: authorized 4,000,000
     shares: issued and outstanding 333,135 and
     332,950 shares, respectively                                               3,331               3,330
  Additional paid-in capital                                                1,634,562           1,629,937
   Contra equity - Employee stock ownership plan                             (185,695)           (185,695)
   Contra equity - Management recognition plan                                (60,610)            (60,610)
   Deferred Compensation - Rabbi Trust                                        (77,544)            (77,544)
   Retained income, substantially restricted                                9,564,562           9,331,919
   Unrealized net holding gains on available-for-sale
      portfolios, net of taxes                                                 73,708             131,698
                                                                         ------------        ------------
              Total stockholders' equity                                   13,543,843           9,579,298
                                                                         ------------        ------------

              Total liabilities and stockholders' equity                 $159,320,365        $102,664,911
                                                                         ============        ============
</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,
                                                            -----------------------
                                                               2001         2000
                                                            ----------   ----------
<S>                                                         <C>          <C>
Interest income:
    Loans receivable                                        $2,775,771   $2,046,218
    Mortgage-backed securities                                  88,755       78,401
    Investment securities                                       18,505        2,852
    Federal funds sold and other investments                   191,461       67,106
                                                            ----------   ----------
          Total interest income                              3,074,492    2,194,577
                                                            ----------   ----------
Interest expense:
    Savings deposits                                         1,374,329      842,995
    Borrowings                                                 326,729      242,873
                                                            ----------   ----------
          Total interest expense                             1,701,058    1,085,868
                                                            ----------   ----------

          Net interest income                                1,373,434    1,108,709
Provision for losses on loans                                  290,000       75,000
                                                            ----------   ----------
          Net interest income after provision
                   for losses on loans                       1,083,434    1,033,709

Noninterest income:
    Fees and service charges                                    84,979       67,262
     Net gain (loss) on sale of investments held for sale      174,470           --
     Net gain (loss) on sale of loans held for sale            337,025           --
    Net gain (loss) on sale of foreclosed real estate               --       17,145
    Other                                                        6,399        5,293
                                                            ----------   ----------
        Total noninterest income                               602,873       89,700
                                                            ----------   ----------

Noninterest expenses:
    Compensation and employee benefits                         711,752      503,350
    Insurance premiums                                          14,467       10,874
    Professional fees                                           48,281       37,115
    Equipment expense                                           46,444       32,841
    Net occupancy costs                                         53,508       22,489
    Advertising                                                 47,443       23,286
    Data processing                                             52,793       40,189
    Other                                                      174,111      123,697
                                                            ----------   ----------
          Total noninterest expense                          1,148,799      794,021
                                                            ----------   ----------
          Income before provision for income taxes             537,508      329,388
Provision for income taxes                                     209,680      127,212
                                                            ----------   ----------
          Net Income                                        $  327,828   $  202,176
                                                            ==========   ==========
          Basic earnings per share                          $     0.88   $     0.65
                                                            ==========   ==========
          Diluted earnings per share                              0.77         0.62
</TABLE>

See accompanying notes to financial statements.


                                       4
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                        FOR THREE MONTHS ENDED
                                                             SEPTEMBER 30,
                                                        ------------------------
                                                           2001          2000
                                                        ---------      ---------
<S>                                                         <C>          <C>
Net income                                              $ 327,828      $ 202,179
Other comprehensive income, net of tax:
  Unrealized net holding (losses)/gains on
    available-for-sale portfolios                          49,091         57,764
  Reclassification adjustment for gains
    Included in net income, net of tax                   (107,081)          --
                                                        ---------      ---------
Comprehensive income                                    $ 269,838      $ 259,943
                                                        =========      =========
</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,
                                                                    ---------------------------
                                                                       2001              2000
                                                                    -----------     -----------
<S>                                                                <C>             <C>
Cash flows from operating activities:
  Net income                                                       $    327,828    $    202,176
  Adjustments to reconcile net income to net
    cash provided by operating activities:
       Depreciation                                                      35,929          33,213
       Provision for losses on loans                                    290,000          75,000
       Provision for Loss from sale of foreclosed real estate            10,000         (17,145)
       (Gain)Loss from sale of investment securities                   (174,470)             --
       (Gain)Loss from sale of loans held for sale                     (337,025)             --
        Amortization of premiums and discounts, net                     (42,335)          1,019
       Deferred loan origination fees, net of costs                     (33,178)        (70,942)
       (Increase)Decrease in deferred taxes,
           prepaid expenses and other assets                            166,795        (294,735)
       Decrease in accrued expenses and other liabilities            (1,256,874)       (923,314)
                                                                    -----------     -----------
         Net cash used in operating activities                       (1,013,330)     (1,003,728)
                                                                    -----------     -----------

Cash flows from investing activities:
  Loan principal disbursements, net of repayments                        29,707        (621,364)
  Proceeds from sale of real estate owned                                    --          72,113
  Proceeds from sale of investment securities available for sale      2,136,416              --
  Proceeds from sale of loans available for sale                     10,251,164
  Purchase of property and equipment                                    (10,444)        (10,136)
  Principal repayment on mortgage-backed securities
    available-for-sale                                                  423,734         125,991
                                                                    -----------     -----------
       Net cash provided by (used) in investing activities           12,830,577        (433,396)

Cash flows from financing activities:
  Net increase (Decrease) in deposits                                   (98,095)      1,686,188
  Net increase (Decrease) in borrowings                              (3,599,999)      1,000,000
  Preferred Stock repurchase                                            (55,639)             --
  Dividends paid                                                        (95,185)        (45,653)
                                                                    -----------     -----------
         Net cash (used in) provided by financing activities         (3,848,918)      2,640,535
                                                                    -----------     -----------

  Net increase in cash and cash equivalents                        $  7,968,329    $  1,203,411
  Cash and cash equivalents at beginning of period                   11,160,631       3,437,783
                                                                    -----------     -----------
  Cash and cash equivalents end of period                           $19,128,960     $ 4,611,194
                                                                    ===========     ===========
Supplemental information:
  Interest paid on deposits and borrowed funds                        1,701,058       1,085,002
  Income taxes paid                                                      77,500               0
                                                                    ===========     ===========
</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, 2001 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, 2001, the Bank met each of the three minimum regulatory capital
requirements.  The following  table  summarizes  the Bank's  regulatory  capital
position at September 30, 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)                   $ 13,023     13.59%   $7,667      8.00%     $ 9,584       10%

Tier 1 Capital (to Risk
   Weighted Assets)                   $11,823     12.34%   $3,884      4.00%     $ 5,751        6%

Tier 1 Capital (to Average
    Assets)                           $11,823      7.52%   $6,291      4.00%     $ 7,864        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, 2001                   September30,2001
                                             Basic             Diluted               Basic        Diluted
                                             -------------------------               --------------------
<S>                                          <C>              <C>                    <C>            <C>
Net Income                                   327,828          327,828                202,176        202,176
Preferred Stock Dividends                     48,547               --                     --             --
                                             -------          -------                -------        -------
Net Income Available to Common               279,281          327,828                202,176        202,176

Weighted average shares outstanding          315,753          315,753                311,683        311,683

Diluted Securities:
  Preferred Stock                                             103,381                     --             --
  MRP Shares                                                       23                  8,398          8,398
  Options                                                       8,032                  4,784          4,784
-----------------------------------------------------------------------------------------------------------

Adjusted Weighted Average Shares             315,753          427,189                324,865        324,865

Per Share Amount                                0.88             0.77                   0.65           0.62
</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.

RECENT ACQUISITION

On November  13, 2000,  the Company  completed  its  acquisition  of  Northfield
Bancorp,  Inc., the parent company of Northfield Federal Savings Bank. Under the
terms of the agreement of merger,  each share of Northfield Bancorp common stock
outstanding  at the effective time of the merger was canceled and converted into
the right to receive $12.50 in cash and .24 shares of Patapsco  Bancorp's Series
A  Noncumulative  Convertible  Perpetual  Preferred  Stock.  At any  time  after
issuance,  this  preferred  stock can be  convertible  into  shares of  Patapsco
Bancorp common stock, on a one for one basis.  Each share of Patapsco  Bancorp's
outstanding  preferred  stock earns  dividends at the annual rate of 7.5% of its
liquidation preference of $25.00 per share.  Dividends are noncumulative,  which
means that if the Company's Board does not pay dividends for a quarterly period,
it is not  obligated  to pay a dividend  for that period at a later date.  After
five years from the date of issuance of the Patapsco  Bancorp  preferred  stock,
Patapsco  Bancorp may redeem  some or all of the  outstanding  Patapsco  Bancorp
preferred  stock at $25.00 per share plus any declared but unpaid  dividends for
the then current quarter.

                                       8
<PAGE>

The combination  was accounted for under the purchase method of accounting,  and
accordingly,  the net assets were recorded at their estimated fair values at the
date of acquisition, November 13, 2000. Fair value adjustments on the assets and
liabilities  purchased  are  being  amortized  over the  estimated  lives of the
related  assets  and  liabilities.  The  excess of the  purchase  price over the
estimated fair value of the underlying net assets of $1,958,072 was allocated to
goodwill and was being amortized over 15 years, using the straight-line  method.
On July 1, 2001,  the Company  adopted FAS 142,  Goodwill  and Other  Intangible
Assets and will no longer amortize goodwill on a monthly basis. Goodwill will be
tested for impairment on an annual basis.

The following unaudited pro forma condensed  consolidated  financial information
reflects  the results of  operations  of the Company for the year ended June 30,
2001 and for the three months ended September 30, 2000 as if the transaction had
occurred at the beginning of each period presented.  These pro forma results are
not  necessarily  indicative of what the Company's  results of operations  would
have been had the  acquisition  actually  taken place at the  beginning  of each
period presented.
<TABLE>
<CAPTION>
                                                 Twelve Months Ended               Three Months Ended
                                                      June 30,2001                 September 30, 2000
                                                      ------------                 ------------------
<S>                                                    <C>                              <C>
Net Interest Income                                    $5,540,460                       $1,465,158
Net Income                                              1,032,896                          260,466
Diluted net Income per share                                $2.56                            $0.48
</TABLE>

RECENT ACCOUNTING PRONOUNCEMENTS

In June 2001, the Financial  Accounting  Standards Board approved  Statements of
Financial Accounting Standards No. 141 "Business  Combinations" ("SFAS 141") and
No. 142 "Goodwill and Other Intangible  Assets" ("SFAS 142") which are effective
July 1, 2001 and  January  1,  2002,  respectively,  for the  Company.  SFAS 141
requires  that the  purchase  method  of  accounting  be used  for all  business
combinations  initiated  after June 30, 2001.  Under SFAS 142,  amortization  of
goodwill,  including  goodwill  recorded  in past  business  combinations,  will
discontinue upon adoption of this standard.  All goodwill and intangible  assets
will  be  tested  for  impairment  in  accordance  with  the  provisions  of the
Statement.  The Company  adopted the provisions of SFAS 142 in the first quarter
of fiscal  2002.  Management  believes  that they will not have to  recognize an
impairment  upon  completion  of  their  test and  goodwill  will no  longer  be
amortized.  Goodwill amortization for the quarter ended September 30, 2001 would
have been $33,582.  Goodwill will be tested for  impairment in the quarter ended
December 31, 2001.


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

The Company's  assets  decreased by $4.9 million,  or 2.9% to $159.3  million at
September 30, 2001 from $164.2 million at June 30, 2001. Cash generated from the
sale of  loans  and  investment  securities  held  for sale was used to pay down
borrowings,  fund  escrow  disbursements  for  property  insurance  of  mortgage
customers  and to fund a slight  decrease  in  deposits.  Cash  and  equivalents
increased  approximately  $8.0 million or 72% to $19.1  million at September 30,
2001 from $11.1  million at June 30, 2001.  Loans held for sale  decreased  $9.9
million and investments held for sale decreased $2.0 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, was initiated in order to take the gains in
the portfolio before the bonds were called.

Total  borrowings  have  decreased by $3.6 million of 15.2% to $20.1  million at
September  30,2001 from $23.7  million at June 30.  Borrowings  from the Federal
Home Loan Bank of Atlanta are being repaid as they come due. Other  liabilities,
primarily escrow accounts for property taxes and insurance held for our mortgage
customers  decreased by $1.5million or 48.4% to $1.6million at September 30 from
$3.1 million ate June 30, 2001.

                                       9
<PAGE>

COMPARISON  OF OPERATING  RESULTS FOR THE QUARTER  ENDED  SEPTEMBER 30, 2001 AND
SEPTEMBER 30, 2000

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

The  Company's  net income  increased  by $126,000 or 62.2% to $328,000  for the
quarter ended  September 30, 2001 from $202,000 for the quarter ended  September
30, 2000. The increase in the Company's net income during the three-month period
was due to a  $265,000  or 23.9%  increase  in net  interest  income  before the
provision for loan losses, a $513,000 or 572.1% increase in noninterest  income,
somewhat  offset by a $355,000 or 44.7%  increase in  noninterest  expense and a
$215,000 or 286.7% increase in the provision for loan losses.

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

Total  interest  income  increased  by $880,000 or 40.1% to $3.1 million for the
quarter  ended  September  30,  2001 from $2.2  million  for the  quarter  ended
September 30, 2000. The increases in interest  income resulted from the increase
in the  Company's  average  earning  assets  offsetting  lower yields on earning
assets.  Earning assets increased  approximately  $57 million as a result of the
Northfield acquisition. The yield on earning assets decreased by 75 basis points
to 7.91% in the  quarter  ended  September  30,  2001  compared  to 8.66% in the
quarter ended  September 30, 2000. The increase in earning assets is responsible
for  $950,000 of the increase in interest  income that was somewhat  offset by a
decrease in $70,000 in  interest  income  resulting  from lower rates on earning
assets.

Interest  income on loans  receivable  increased  by  $730,000  or 35.6% to $2.8
million  for the quarter  ended  September  30,  2001 from $2.0  million for the
quarter  ended  September  30, 2000.  The  increase in interest  income on loans
receivable  during the three-month  period is due to the increase in the average
balance of loans  receivable  offsetting a decrease in the average  yield on the
loan portfolio.  During the three months ended September 30, 2001 as compared to
the same period ended  September 30, 2000 the average loans  receivable  balance
increased by $36.5 million or 39.9% to $128.3 million from $91.7 million and the
average yield decreased by 27 basis points to 8.59% from 8.86%.  The increase in
average  loans  receivable  is primarily  due to the  acquisition  of Northfield
offset by the sale of  approximately  $10 million in loans in the quarter  ended
September 30, 2001.

Interest  income  on  investment  securities  increased  by  $16,000  or  548.8%
primarily due to the securities acquired in the Northfield transaction.

Interest income on mortgage-backed  securities  increased by $10,000 or 13.2% in
the quarter  ended  September  30, 2001 to $89,000  from  $78,000 in the quarter
ended September 30, 2000 primarily due to the higher volume of these  securities
acquired in the Northfield transaction.

Interest  income on  federal  funds  sold and  other  investments  increased  by
$124,000 or 185.3% to $191,000  for the quarter  ended  September  30, 2001 from
$67,000 for the quarter ended  September 30, 2000 primarily due to the increased
volume  of fed  funds  resulting  from  the  sale of the  loans  and  investment
securities held for sale.

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

Total  interest  expense  increased by $615,000 or 56.6% to $1.7 million for the
quarter  ended  September  30,  2001 from $1.1  million  for the  quarter  ended
September 30, 2000.  Interest expense on deposits increased $531,000 or 63.0% in
the  quarter  due  mostly  to  higher  average  balances.  Interest  expense  on
borrowings,  primarily  from the  Federal  Home Loan Bank of  Atlanta  increased
$84,000 or 34.5% due to the  increase in volume  resulting  from the  borrowings
assumed in the Northfield acquisition and those needed to fund the transaction.

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

The Company's net interest income increased by $265,000 or 23.9% to $1.4 million
for the quarter ended September 30, 2001 from $1.1 million for the quarter ended
September 30, 2000.  The increase in net interest  income during the  comparable
three- month period was due to higher balances  partially  offset by an 85 basis
point decrease in the net interest  margin to


                                       10
<PAGE>

3.53% from 4.38%.  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  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 average 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 institution's  net interest margin,  which is net interest income divided by
the average balance of interest earning assets.  This is 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 an institution'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.


                                       11
<PAGE>
<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED SEPTEMBER 30, (1)
                                               ----------------------------------------------------------------------------
                                                             2001                                       2000
                                               ------------------------------------     -----------------------------------
                                               AVERAGE                      AVERAGE     AVERAGE                    AVERAGE
                                               BALANCE      INTEREST         RATE       BALANCE       INTEREST       RATE
                                               -------      --------        -------     -------       --------     --------
                                                                            (DOLLARS IN THOUSANDS)
<S>                                            <C>            <C>            <C>         <C>            <C>           <C>
Interest-earning assets:
   Loans receivable (2)                        $128,259       2,776          8.59%       91,660         2,046         8.86%
   Mortgage-backed securities                     5,409          89          6.51         4,489            78         6.93
   Investment securities                            949          18          7.74           466             3         2.45%
   Federal funds sold and other
      interest-earning assets                    19,686         191          3.86%        3,919            68         6.96%
                                               --------      ------                    --------       -------
Total interest earning assets                   154,302       3,074          7.91%      100,534         2,195         8.66%
                                                             ------        ------                     -------       ------
Noninterest-earning assets                        5,812                                   2,639
                                               --------                                --------
Total assets                                   $160,114                                $103,173
                                               ========                                ========

Interest-bearing liabilities:
Interest-bearing deposits (3)                  $119,985      $1,374          4.54%     $ 73,752       $   843         4.53%
Borrowings                                       21,116         327          6.05%       15,617           243         6.17%
                                               --------      ------                    --------       ------
Total interest-bearing liabilities              141,102       1,701          4.78%       89,369         1,086         4.82%
                                                             ------        ------                     -------       ------
Noninterest-bearing liabilities                   5,554                                   4,164
                                               --------                                --------
Total liabilities                               146,656                                  93,533
Stockholders' equity                             13,458                                   9,640
                                               --------                                --------
    Total liabilities and stockholders'
      equity                                   $160,114                                $103,173
                                               ========                               =========

Net interest income                                          $1,373                                   $ 1,109
                                                             ======                                   =======
Interest rate spread                                                        3.13%                                     3.84%
                                                                         =======                                    ======
Net yield on interest-earning assets                                        3.53%                                     4.38%
                                                                         =======                                    ======
Ratio of average interest-earning assets
  to average interest-bearing liabilities                                109.36%                                    112.49%
                                                                         =======                                    ======
<FN>
-----------
(1)  Yields and rates are annualized.
(2)  Includes nonaccrual loans.
(3)  Includes interest-bearing escrow accounts.
</FN>
</TABLE>

                                       12
<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 $290,000 in the quarter ended  September
30, 2001,  compared to $75,000 for the quarter ended  September 30, 2000. Due to
the increased  provision and the sale of loans, The Company's allowance for loan
losses has  increased as a  percentage  of total loans  outstanding  to 1.04% at
September 30, 2001 from 0.88% at June 30, 2001. The Company's allowance for loan
losses as a percentage of nonperforming  loans was 587.28% at September 30, 2001
as compared to 660.4% at June 30, 2001.

     The following table shows the activity in the allowance for loan losses.
<TABLE>
<CAPTION>
                                                                 THREE MONTHS
                                                              ENDED SEPTEMBER 30,
                                                              -------------------
                                                               2001         2000
                                                               ----         ----
<S>                                                           <C>            <C>
Allowance for loan losses, beginning of period                $1,161         743

Provision for loan losses                                        290          75

Loans Charged Off:
         Consumer                                                 49          33
         Real Estate                                               0           0
         Commercial                                               76          17
                                                              ------      ------
  Total Charge-Offs                                              124          50
Recoveries:
         Consumer                                                 13          10
         Real Estate                                               0           0
         Commercial                                                0           0
                                                              ------      ------
  Total Recoveries                                                13          10
                                                              ------      ------

Allowance for loan losses, end of period                      $1,340      $  778
                                                              ======      ======
</TABLE>
Noninterest Income
------------------

The Company's noninterest income consists of deposit fees, service charges, late
fees and gains on the sale of loans,  securities  and  repossessed  real estate.
Total  noninterest  income  increased  by $513,000 or 572.1% to $603,000 for the
quarter ended  September  30, 2001 from $90,000 for the quarter ended  September
30, 2000.  The  increase in  noninterest  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. In the quarter ended September 30,
2000,  the Company  generated  a $17,000  gain on the sale of  repossessed  real
estate. Absent these gains, noninterest income increased $19,000 or 25.9% in the
comparative  quarter.  This increase is primarily due to the higher  balance and
number of deposit accounts.  The number of accounts has grown  substantially due
to the Northfield acquisition.


                                       13
<PAGE>

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

Total  noninterest  expenses  increased by $355,000 or 44.7% to $1.1 million for
the quarter  ended  September  30,  2001 from  $794,000  for the  quarter  ended
September 30, 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  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, 2001,  the Company's cash on hand,  interest-bearing  deposits and
Federal  funds  sold  totaled  $19.1  million.  In  addition,  the  Company  has
approximately   $5.4   million   of   investment    securities   classified   as
available-for-sale.

The Company anticipates that it will have sufficient funds available to meet its
current  loan  commitments  of $2.8  million.  Certificates  of deposit that are
scheduled  to mature in less than one year at September  30, 2001 totaled  $58.6
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 Finterest
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, 2001 was the  $10million  form the sale of
loans held for sale and the $2.0 million from the sale if investments securities
held for sale.

The  Company's  primary  use of cash in  financing  activities  during the three
months ended September 30, 2001 consisted of a $0.1 million decrease in deposits
and a $3.6 million decrease in borrowed money.

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

None

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

        (a)  EXHIBITS. None

        (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 13, 2001              /s/ Joseph J. Bouffard
                                      -----------------------------------------
                                      Joseph J. Bouffard
                                      President and Chief Executive Officer
                                      (Principal Executive Officer)




Date: November 13, 2001               /s/ Michael J. Dee
                                      -----------------------------------------
                                      Michael J. Dee
                                      Chief Financial Officer & Controller
                                      (Principal Financial Officer)


                                       16