| x | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|-----------------------------------------------------------------------------------------|

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

| Maryland                        |   | 52-1951797          |
|---------------------------------|--------|---------------------|
| (State or other jurisdiction of |   | (I.R.S. Employer    |
| incorporation or organization)  |   | Identification No.) |

| Large Accelerated Filer  ̈                | Accelerated Filer    ̈    |
|-----------------------------------------------|----------------------------------------------|
|                                          |                                         |
| Non-Accelerated Filer  ̈                  | Smaller Reporting Company   x |
| (Do not check if a smaller reporting company) |                                         |

----

|                                     |                                                                                                                         | PAGE   |
|------------------------------------------|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                     |                                                                                                                         |   |
| PART I.  FINANCIAL INFORMATION |                                                                                                                         |
|                                     |                                                                                                                         |   |
| Item 1.                                  | Financial Statements                                                                                                         |   |
|                                     |                                                                                                                         |   |
|                                     | Consolidated Statements of Financial Condition at March 31, 2011 and June 30, 2010 (Unaudited)                               | 3      |
|                                     |                                                                                                                         |   |
|                                     | Consolidated Statements of Operations for the Nine and Three-Month Periods Ended March 31, 2011 and 2010 (Unaudited)         | 4      |
|                                     |                                                                                                                         |   |
|                                     | Consolidated Statements of Comprehensive Loss for the Nine and Three-Month Periods Ended March 31, 2011 and 2010 (Unaudited) | 5      |
|                                     |                                                                                                                         |   |
|                                     | Consolidated Statements of Cash Flows for the Nine-Month Periods Ended March 31, 2011 and 2010 (Unaudited)                   | 6      |
|                                     |                                                                                                                         |   |
|                                     | Notes to Consolidated Financial Statements (Unaudited)                                                                       | 7      |
|                                     |                                                                                                                         |   |
| Item 2.                                  | Management's Discussion and Analysis of Financial Condition and Results of Operations                                        | 24     |
|                                     |                                                                                                                         |   |
| Item 3.                   | Quantitative and Qualitative Disclosures About Market Risk                                                                   | 33     |
|                                     |                                                                                                                         |   |
| Item 4.                   | Controls and Procedures                                                                                                      | 33     |
|                                     |                                                                                                                         |   |
| PART II.  OTHER INFORMATION    |                                                                                                                         |
|                                     |                                                                                                                         |   |
| Item 1.                                  | Legal Proceedings                                                                                                            | 34     |
|                                     |                                                                                                                         |   |
| Item 1A.                                 | Risk Factors                                                                                                                 | 34     |
|                                     |                                                                                                                         |   |
| Item 2.                                  | Unregistered Sales of Equity Securities and Use of Proceeds                                                                  | 34     |
|                                     |                                                                                                                         |   |
| Item 3.                                  | Defaults in Senior Securities                                                                                                | 34     |
|                                     |                                                                                                                         |   |
| Item 4.                                  | Removed and Reserved                                                                                                         | 34     |
|                                     |                                                                                                                         |   |
| Item 5.                                  | Other Information                                                                                                            | 34     |
|                                     |                                                                                                                         |   |
| Item 6.                                  | Exhibits                                                                                                                     | 34     |
|                                     |                                                                                                                         |   |
| Signatures                               | 35                                                                                                                           |

----

|                                                                                                                                                                                  |   | March 31, |    |   | June 30, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                                                                                                                                                                  |   | 2011           |    |   | 2010          |   |
| Assets:                                                                                                                                                                               |   |           |    |   |          |   |
| Cash and cash equivalents:                                                                                                                                                            |   |           |    |   |          |   |
| Cash on hand and due from banks                                                                                                                                                       |   | $              | 5,128   |   |          | $      | 6,811 |   |
| Interest bearing deposits in other banks                                                                                                                                              |   |           | 20,509  |   |          |   | 21,232 |   |
| Total cash and cash equivalents                                                                                                                                                       |   |           | 25,637  |   |          |   | 28,043 |   |
| Securities available for sale                                                                                                                                                         |   |           | 38,004  |   |          |   | 25,482 |   |
| Loans receivable, net of allowance for loan losses of $4,216 and $3,527, respectively                                                                                                 |   |           | 189,252 |   |          |   | 197,169 |   |
| Investment in securities required by law, at cost                                                                                                                                     |   |           | 2,663   |   |          |   | 2,848 |   |
| Repossessed real estate and other assets, net of allowance for losses of $0 and $19, respectively                                                                                     |   |           | 1,454   |   |          |   | 2,875 |   |
| Property and equipment, net                                                                                                                                                           |   |           | 3,624   |   |          |   | 3,759 |   |
| Core deposit intangible                                                                                                                                                               |   |           | 155     |   |          |   | 193 |   |
| Accrued interest receivable and other assets                                                                                                                                          |   |           | 9,063   |   |          |   | 9,354 |   |
| Total assets                                                                                                                                                                          |   | $              | 269,852 |   |          | $      | 269,723 |   |
|                                                                                                                                                                                  |   |           |    |   |          |   |   |   |
| Liabilities and Stockholders' Equity                                                                                                                                                  |   |           |    |   |          |   |   |   |
|                                                                                                                                                                                  |   |           |    |   |          |   |   |   |
| Liabilities:                                                                                                                                                                          |   |           |    |   |          |   |   |   |
| Deposits:                                                                                                                                                                             |   |           |    |   |          |   |   |   |
| Non-interest bearing deposits                                                                                                                                                         |   | $              | 9,401   |   |          | $      | 11,554 |   |
| Interest bearing deposits                                                                                                                                                             |   |           | 225,629 |   |          |   | 217,235 |   |
| Total deposits                                                                                                                                                                        |   |           | 235,030 |   |          |   | 228,789 |   |
| Long-term debt                                                                                                                                                                        |   |           | 12,000  |   |          |   | 17,100 |   |
| Junior subordinated debentures                                                                                                                                                        |   |           | 5,000   |   |          |   | 5,000 |   |
| Accrued expenses and other liabilities                                                                                                                                                |   |           | 1,355   |   |          |   | 1,464 |   |
| Total liabilities                                                                                                                                                                     |   |           | 253,385 |   |          |   | 252,353 |   |
|                                                                                                                                                                                  |   |           |    |   |          |   |   |   |
| Stockholders' equity:                                                                                                                                                                 |   |           |    |   |          |   |   |   |
| Preferred stock – Series A Cumulative perpetual; $0.01 par value; authorized 1,000,000 shares with a liquidation preference of $1,000 per share; 6,000 shares outstanding       |   |           | 5,816   |   |          |   | 5,766 |   |
| Warrant preferred stock – Series B Cumulative perpetual; $0.01 par value; authorized 1,000,000 shares with a liquidation preference of $1,000 per share; 300 shares outstanding |   |           | 321     |   |          |   | 326 |   |
| Common stock - $0.01 par value; authorized 4,000,000 shares; issued and outstanding 1,939,593 and 1,930,317 shares, respectively                                                      |   |           | 19      |   |          |   | 19 |   |
| Additional paid in capital                                                                                                                                                            |   |           | 7,874   |   |          |   | 7,847 |   |
| Retained income, substantially restricted                                                                                                                                             |   |           | 2,549   |   |          |   | 3,212 |   |
| Accumulated other comprehensive (loss)/income, net of income taxes                                                                                                                    |   |           | (112    | )      |          |   | 200 |   |
| Total stockholders' equity                                                                                                                                                            |   |           | 16,467  |   |          |   | 17,370 |   |
| Total liabilities and stockholders' equity                                                                                                                                            |   | $              | 269,852 |   |          | $      | 269,723 |   |

----

| ($ in thousands except for per share data) |   | For Nine Months Ended |   |   | For Three Months Ended |   |
|-------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|---------------------------------------|--------|
|                                                                          |   | March 31,                       |   |   | March 31,                        |   |
|                                                                          |   | 2011                                 |   |   | 2010                                  |   |   | 2011 |   |   | 2010 |   |
| Interest income:                                                              |   |                                 |   |   |                                  |   |   |   |   |   |   |   |
| Loans receivable, including fees                                              |   | $                                    | 8,891  |   |                                  | $      | 10,103 |   |   | $ | 2,818 |   |   | $ | 3,190 |   |
| Securities, including securities required by law                              |   |                                 | 639    |   |                                  |   | 473 |   |   |   | 228 |   |   |   | 148 |   |
| Federal funds sold and other investments                                      |   |                                 | 46     |   |                                  |   | 21 |   |   |   | 16 |   |   |   | 6 |   |
| Total interest income                                                         |   |                                 | 9,576  |   |                                  |   | 10,597 |   |   |   | 3,062 |   |   |   | 3,344 |   |
|                                                                          |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                                             |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                                      |   |                                 | 2,589  |   |                                  |   | 3,217 |   |   |   | 752 |   |   |   | 970 |   |
| Short-term debt                                                               |   |                                 | -      |   |                                  |   | 6 |   |   |   | - |   |   |   | - |   |
| Long-term debt and junior subordinated debentures                             |   |                                 | 670    |   |                                  |   | 921 |   |   |   | 189 |   |   |   | 287 |   |
| Total interest expense                                                        |   |                                 | 3,259  |   |                                  |   | 4,144 |   |   |   | 941 |   |   |   | 1,257 |   |
|                                                                          |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                           |   |                                 | 6,317  |   |                                  |   | 6,453 |   |   |   | 2,121 |   |   |   | 2,087 |   |
| Provision for loan losses                                                     |   |                                 | 2,298  |   |                                  |   | 3,375 |   |   |   | 1,000 |   |   |   | 2,583 |   |
| Net interest income/(loss) after provision for loan losses                    |   |                                 | 4,019  |   |                                  |   | 3,078 |   |   |   | 1,121 |   |   |   | (496 | ) |
| Non-interest income:                                                          |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Fees and service charges                                                      |   |                                 | 494    |   |                                  |   | 506 |   |   |   | 164 |   |   |   | 149 |   |
| Net gain on sale of securities available for sale                             |   |                                 | 161    |   |                                  |   | 71 |   |   |   | 94 |   |   |   | 71 |   |
| Gain on sale of repossessed real estate and other assets                      |   |                                 | 10     |   |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Loss on sale of other assets                                                  |   |                                 | (22    | )      |                                  |   | - |   |   |   | - |   |   |   | - |   |
| Other                                                                         |   |                                 | 63     |   |                                  |   | 96 |   |   |   | 23 |   |   |   | 48 |   |
| Total non-interest income                                                     |   |                                 | 706    |   |                                  |   | 673 |   |   |   | 281 |   |   |   | 268 |   |
| Non-interest expense:                                                         |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Compensation and employee benefits                                            |   |                                 | 2,951  |   |                                  |   | 3,217 |   |   |   | 1,009 |   |   |   | 1,090 |   |
| Professional fees                                                             |   |                                 | 450    |   |                                  |   | 461 |   |   |   | 154 |   |   |   | 200 |   |
| Federal deposit insurance assessments                                         |   |                                 | 412    |   |                                  |   | 378 |   |   |   | 142 |   |   |   | 124 |   |
| Equipment expense                                                             |   |                                 | 167    |   |                                  |   | 161 |   |   |   | 58 |   |   |   | 54 |   |
| Net occupancy expense                                                         |   |                                 | 414    |   |                                  |   | 441 |   |   |   | 141 |   |   |   | 158 |   |
| Advertising                                                                   |   |                                 | 29     |   |                                  |   | 33 |   |   |   | 9 |   |   |   | 11 |   |
| Data processing                                                               |   |                                 | 287    |   |                                  |   | 323 |   |   |   | 97 |   |   |   | 122 |   |
| Amortization of core deposit intangible                                       |   |                                 | 39     |   |                                  |   | 39 |   |   |   | 13 |   |   |   | 13 |   |
| Telephone, postage & delivery                                             |   |                                 | 205    |   |                                  |   | 220 |   |   |   | 69 |   |   |   | 79 |   |
| Provision for losses on and cost of repossessed real estate and other assets  |   |                                 | 249    |   |                                  |   | 1,024 |   |   |   | 153 |   |   |   | 982 |   |
| Other                                                                         |   |                                 | 561    |   |                                  |   | 608 |   |   |   | 186 |   |   |   | 254 |   |
| Total non-interest expense                                                    |   |                                 | 5,764  |   |                                  |   | 6,905 |   |   |   | 2,031 |   |   |   | 3,087 |   |
| Loss before benefit for income taxes                                          |   |                                 | (1,039 | )      |                                  |   | (3,154 | ) |   |   | (629 | ) |   |   | (3,315 | ) |
| Benefit for income taxes                                                      |   |                                 | (421   | )      |                                  |   | (1,265 | ) |   |   | (252 | ) |   |   | (1,321 | ) |
| Net loss                                                                      |   | $                                    | (618   | )      |                                  | $      | (1,889 | ) |   | $ | (377 | ) |   | $ | (1,994 | ) |
| Preferred stock dividends                                                     |   |                                 | 291    |   |                                  |   | 245 |   |   |   | 97 |   |   |   | 82 |   |
| Net loss available for common shareholders                                    |   | $                                    | (909   | )      |                                  | $      | (2,134 | ) |   | $ | (474 | ) |   | $ | (2,076 | ) |
|                                                                          |   |                                 |   |   |                                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic loss per common share                                                   |   | $                                    | (0.47  | )      |                                  | $      | (1.11 | ) |   | $ | (0.24 | ) |   | $ | (1.07 | ) |
| Diluted loss per common share                                                 |   | $                                    | (0.47  | )      |                                  | $      | (1.11 | ) |   | $ | (0.24 | ) |   | $ | (1.07 | ) |
| Cash dividends declared per common share                                      |   | $                                    | -      |   |                                  | $      | - |   |   | $ | - |   |   | $ | - |   |

----

|                                                                |   | For Nine MonthsEnded |   |   | For Three MonthsEnded |   |
|---------------------------------------------------------------------|--------|--------------------------------|--------|--------|---------------------------------|--------|
|                                                                |   | March 31,                 |   |   | March 31,                  |   |
|                                                                |   | 2011                           |   |   | 2010                            |   |   | 2011 |   |   | 2010 |   |
|                                                                |   |                           |   |   |                            |   |   |   |   |   |   |   |
| Net loss                                                            |   | $                              | (618   | )      |                            | $      | (1,889 | ) |   | $ | (377 | ) |   | $ | (1,994 | ) |
| Other comprehensive loss:                                           |   |                           |   |   |                            |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustments for gains realized in income           |   |                           | (161   | )      |                            |   | (71 | ) |   |   | (94 | ) |   |   | (71 | ) |
| Unrealized net holding gain/(loss) on securities available for sale |   |                           | (354   | )      |                            |   | 286 |   |   |   | (54 | ) |   |   | 155 |   |
| Subtotal                                                            |   |                           | (1,133 | )      |                            |   | (1,674 | ) |   |   | (525 | ) |   |   | (1,910 | ) |
| Tax effect                                                          |   |                           | (203   | )      |                            |   | 85 |   |   |   | (58 | ) |   |   | 33 |   |
| Comprehensive loss                                                  |   | $                              | (930   | )      |                            | $      | (1,759 | ) |   | $ | (467 | ) |   | $ | (1,943 | ) |

----

| ($ in thousands)                                                                                     |   | For the Nine Months Ended |         |
|----------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------------|
|                                                                                                           |   | March 31,                                |         |
|                                                                                                           |   | 2011                                          |         |   | 2010 |   |
| Cash flows from operating activities:                                                                          |   |                                          |         |   |   |   |
| Net loss                                                                                                       |   | $                                             | (618         | ) |   | $ | (1,889 | ) |
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities:                      |   |                                          |         |   |   |   |   |   |
| Amortization of premiums and discounts, net                                                                    |   |                                          | 199          |   |   |   | 222 |   |
| Gain on sale of securities available for sale                                                                  |   |                                          | (161         | ) |   |   | (71 | ) |
| Amortization of deferred loan origination costs                                                                |   |                                          | -            |   |   |   | 5 |   |
| Provision for loan losses                                                                                      |   |                                          | 2,298        |   |   |   | 3,375 |   |
| Provision for loss on repossessed real estate and other assets                                                 |   |                                          | -            |   |   |   | 837 |   |
| Net gain on sale of repossessed real estate and other assets                                                   |   |                                          | (10          | ) |   |   | - |   |
| Loss on sale of other assets                                                                                   |   |                                          | 22           |   |   |   | - |   |
| Decrease in value of real estate owned                                                                         |   |                                          | 167          |   |   |   | - |   |
| Depreciation                                                                                                   |   |                                          | 206          |   |   |   | 207 |   |
| Amortization of core deposit intangible                                                                        |   |                                          | 39           |   |   |   | 39 |   |
| Increase in cash surrender value of bank owned life insurance                                                  |   |                                          | (49          | ) |   |   | (76 | ) |
| Decrease/(increase) in accrued interest receivable and other assets                                            |   |                                          | 831          |   |   |   | (3,399 | ) |
| Non-cash compensation under stock-based benefit plan                                                           |   |                                          | 4            |   |   |   | 34 |   |
| Increase/(decrease) in accrued expenses and other liabilities                                                  |   |                                          | (131         | ) |   |   | 79 |   |
| Net cash provided by/(used in) operating activities                                                            |   |                                          | 2,797        |   |   |   | (637 | ) |
|                                                                                                           |   |                                          |         |   |   |   |   |   |
| Cash flows from investing activities:                                                                          |   |                                          |         |   |   |   |   |   |
| Proceeds from maturity of securities available for sale and principal repayments on mortgage-backed securities |   |                                          | 21,727       |   |   |   | 8,929 |   |
| Purchase of securities available for sale                                                                      |   |                                          | (37,662      | ) |   |   | (9,639 | ) |
| Proceeds from sale of securities available for sale                                                            |   |                                          | 2,877        |   |   |   | 1,050 |   |
| Net change in loans                                                                                            |   |                                          | 5,337        |   |   |   | 4,325 |   |
| Funds received in sale of real estate owned                                                                    |   |                                          | 1,263        |   |   |   | 60 |   |
| Net change in investments required by law                                                                      |   |                                          | 185          |   |   |   | (31 | ) |
| Purchase of property and equipment                                                                             |   |                                          | (71          | ) |   |   | (61 | ) |
| Net cash provided by/(used in) investing activities                                                            |   |                                          | (6,344       | ) |   |   | 4,633 |   |
|                                                                                                           |   |                                          |         |   |   |   |   |   |
| Cash flows from financing activities:                                                                          |   |                                          |         |   |   |   |   |   |
| Net increase in deposits                                                                                       |   |                                          | 6,701        |   |   |   | 14,482 |   |
| Decrease in advance payments by borrowers                                                                      |   |                                          | (460         | ) |   |   | (550 | ) |
| Payments on long-term borrowings                                                                               |   |                                          | (5,100       | ) |   |   | (17,200 | ) |
| Dividends paid                                                                                                 |   |                                          | -            |   |   |   | (245 | ) |
| Net cash provided by/(used in) financing activities                                                            |   |                                          | 1,141        |   |   |   | (3,513 | ) |
|                                                                                                           |   |                                          |         |   |   |   |   |   |
| Net increase/(decrease) in cash and cash equivalents                                                           |   |                                          | (2,406       | ) |   |   | 483 |   |
| Cash and cash equivalents at beginning of period                                                               |   |                                          | 28,043       |   |   |   | 19,794 |   |
| Cash and cash equivalents at end of period                                                                     |   | $                                             |  25,637 |   |   | $ |  20,277 |   |
|                                                                                                           |   |                                          |         |   |   |   |   |   |
| Supplemental cash flow information:                                                                            |   |                                          |         |   |   |   |   |   |
| Interest paid on deposits and borrowed funds                                                                   |   | $                                             | 3,108        |   |   | $ | 4,271 |   |
| Income taxes paid                                                                                              |   |                                          | -            |   |   |   | 198 |   |
|                                                                                                           |   |                                          |         |   |   |   |   |   |
| Non-cash disclosures:                                                                                          |   |                                          |         |   |   |   |   |   |
|   Loans transferred to real estate acquired through foreclosure, net                                      |   | $                                             | 265          |   |   | $ | 3,172 |   |

----

----

----

----

|                                          |   | March 31, 2011 |   |
|-----------------------------------------------|--------|--------------------------|--------|
|                                          |   | Amortized                |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| (In thousands)                           |   | Cost                     |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| Corporate bonds                               |   | $                        | 3,000  |   |   | $ | 19 |   |   | $ | (12 | ) |   | $ | 3,007 |   |
| U.S. Government agencies                      |   |                     | 12,040 |   |   |   | 5 |   |   |   | (115 | ) |   |   | 11,930 |   |
| Mortgage-backed securities, residential       |   |                     | 4,153  |   |   |   | 50 |   |   |   | (20 | ) |   |   | 4,183 |   |
| Collateralized mortgage obligations, agencies |   |                     | 18,995 |   |   |   | 4 |   |   |   | (115 | ) |   |   | 18,884 |   |
|                                          |   | $                        | 38,188 |   |   | $ | 78 |   |   | $ | (262 | ) |   | $ | 38,004 |   |

|                                          |   | June 30, 2010 |   |
|-----------------------------------------------|--------|-------------------------|--------|
|                                          |   | Amortized               |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| (In thousands)                           |   | Cost                    |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |
| Corporate bonds                               |   | $                       | 1,500  |   |   | $ | 11 |   |   | $ | - |   |   | $ | 1,511 |   |
| U.S. Government agencies                      |   |                    | 13,600 |   |   |   | 40 |   |   |   | (3 | ) |   |   | 13,637 |   |
| Mortgage-backed securities, residential       |   |                    | 6,737  |   |   |   | 291 |   |   |   | (4 | ) |   |   | 7,024 |   |
| Collateralized mortgage obligations, agencies |   |                    | 3,314  |   |   |   | - |   |   |   | (4 | ) |   |   | 3,310 |   |
|                                          |   | $                       | 25,151 |   |   | $ | 342 |   |   | $ | (11 | ) |   | $ | 25,482 |   |

----

| (In thousands)                           |   | AmortizedCost |   |   | FairValue |   |
|-----------------------------------------------|--------|---------------|--------|--------|-----------|--------|
| Due  in less than one year          |   | $             | -      |   |      | $      | - |   |
| Due in one to five years                      |   |          | 2,500  |   |      |   | 2,493 |   |
| Due after five through ten years              |   |          | 4,000  |   |      |   | 3,995 |   |
| Due after ten years                           |   |          | 8,540  |   |      |   | 8,449 |   |
| Mortgage-backed securities, residential       |   |          | 4,153  |   |      |   | 4,183 |   |
| Collateralized mortgage obligations, agencies |   |          | 18,995 |   |      |   | 18,884 |   |
|                                          |   | $             | 38,188 |   |      | $      | 38,004 |   |

|                                          |   | March 31, 2011           |   |
|-----------------------------------------------|--------|------------------------------------|--------|
|                                          |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
|                                          |   | FairValue                          |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
| (In thousands)                                |   |                               |   |
|                                          |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                      |   | $                                  | 10,385 |   |   | $ | (115 | ) |   | $ | - |   |   | $ | - |   |   | $ | 10,385 |   |   | $ | (115 | ) |
| Corporate bonds                               |   |                               | 988    |   |   |   | (12 | ) |   |   | - |   |   |   | - |   |   |   | 988 |   |   |   | (12 | ) |
| Mortgage-backed securities, residential       |   |                               | 960    |   |   |   | (17 | ) |   |   | 409 |   |   |   | (3 | ) |   |   | 1,369 |   |   |   | (20 | ) |
| Collateralized mortgage obligations, agencies |   |                               | 15,182 |   |   |   | (115 | ) |   |   | - |   |   |   | - |   |   |   | 15,182 |   |   |   | (115 | ) |
| Total Temporarily Impaired Securities         |   | $                                  | 27,515 |   |   | $ | (259 | ) |   | $ | 409 |   |   | $ | (3 | ) |   | $ | 27,924 |   |   | $ | (262 | ) |

|                                          |   | June 30, 2010            |   |
|-----------------------------------------------|--------|------------------------------------|--------|
|                                          |   | Less than 12 Months |   |   | 12 Months or More |   |   | Total |   |
|                                          |   | FairValue                          |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |   | FairValue |   |   | UnrealizedLosses |   |
| (In thousands)                                |   |                               |   |
|                                          |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agencies                      |   | $                                  | 1,586  |   |   | $ | (3 | ) |   | $ | - |   |   | $ | - |   |   | $ | 1,586 |   |   | $ | (3 | ) |
| Mortgage-backed securities, Residential       |   |                               | 662    |   |   |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | 662 |   |   |   | (4 | ) |
| Collateralized mortgage obligations, agencies |   |                               | 3,310  |   |   |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | 3,310 |   |   |   | (4 | ) |
| Total Temporarily Impaired Securities         |   | $                                  | 5,558  |   |   | $ | (11 | ) |   | $ | - |   |   | $ | - |   |   | $ | 5,558 |   |   | $ | (11 | ) |

----

| (in thousands)                                   |   |       |   |   | Commercial       |   |   |     |   |   |        |   |   | Commercial |   |   |   |   |
|-------------------------------------------------------|--------|------------|--------|--------|------------------|--------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|--------|--------|--------|
|                                                  |   | Commercial |   |   | Real Estate |   |   | Consumer |   |   | Residential |   |   | Leases     |   |   | Total  |   |
| Loan receivables:                                     |   |       |   |   |             |   |   |     |   |   |        |   |   |       |   |   |   |   |
| Ending balance                                        |   | $          | 54,128 |   |             | $      | 66,142 |     |   | $      | 13,231      |   |   | $          | 57,361 |   |   | $      | 2,606 |   |   | $ | 193,468 |   |
| Ending balance: individually evaluated for impairment |   | $          | 4,155  |   |             | $      | 7,408  |     |   | $      | -           |   |   | $          | 615    |   |   | $      | - |   |   | $ | 12,178 |   |
| Ending balance: collectively evaluated for impairment |   | $          | 49,973 |   |             | $      | 58,734 |     |   | $      | 13,231      |   |   | $          | 56,746 |   |   | $      | 2,606 |   |   | $ | 181,290 |   |
|                                                  |   |       |   |   |             |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Allowance for credit losses:                          |   |       |   |   |             |   |   |     |   |   |        |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                        |   | $          | 879    |   |             | $      | 2,196  |     |   | $      | 709         |   |   | $          | 140    |   |   | $      | 292 |   |   | $ | 4,216 |   |
| Ending balance: individually evaluated for impairment |   | $          | 549    |   |             | $      | 342    |     |   | $      | -           |   |   | $          | -      |   |   | $      | - |   |   | $ | 891 |   |
| Ending balance: collectively evaluated for impairment |   | $          | 330    |   |             | $      | 1,887  |     |   | $      | 709         |   |   | $          | 140    |   |   | $      | 292 |   |   | $ | 3,325 |   |

----

| (in thousands)                                |   | Recorded   |   |   | Unpaid Principal |   |   | Related   |   |   | Average Recorded |   |   | Interest Income |   |
|----------------------------------------------------|--------|------------|--------|--------|-----------------------|--------|--------|-----------|--------|--------|-----------------------|--------|--------|----------------------|--------|
|                                               |   | Investment |   |   | Balance               |   |   | Allowance |   |   | Investment            |   |   | Recorded             |   |
| Impaired loans with no related allowance recorded: |   |       |   |   |                  |   |   |      |   |   |                  |   |   |                 |   |
| Commercial business                                |   | $          | 719    |   |                  | $      | 867    |      |   | $      | -                     |   |   | $                    | 1,134  |   |   | $ | 15 |   |
| Commercial real estate- construction               |   |       | 2,065  |   |                  |   | 2,841  |      |   |   | -                     |   |   |                 | 1,876  |   |   |   | 15 |   |
| Commercial real estate- other                      |   |       | 3,667  |   |                  |   | 4,238  |      |   |   | -                     |   |   |                 | 6,438  |   |   |   | 18 |   |
| Residential- prime                                 |   |       | 615    |   |                  |   | 615    |      |   |   | -                     |   |   |                 | 487    |   |   |   | - |   |
|                                               |   |       |   |   |                  |   |   |      |   |   |                  |   |   |                 |   |   |   |   |   |   |
| Impaired loans with an allowance recorded:         |   |       |   |   |                  |   |   |      |   |   |                  |   |   |                 |   |   |   |   |   |   |
| Commercial business                                |   | $          | 3,436  |   |                  | $      | 3,536  |      |   | $      | 549                   |   |   | $                    | 5,013  |   |   |   | - |   |
| Commercial real estate- Construction               |   |       | 131    |   |                  |   | 388    |      |   |   | 71                    |   |   |                 | 313    |   |   |   | - |   |
| Commercial real estate- other                      |   |       | 1,546  |   |                  |   | 1,546  |      |   |   | 271                   |   |   |                 | 1,720  |   |   |   | - |   |
|                                               |   |       |   |   |                  |   |   |      |   |   |                  |   |   |                 |   |   |   |   |   |   |
| Total impaired loans:                              |   |       |   |   |                  |   |   |      |   |   |                  |   |   |                 |   |   |   |   |   |   |
| Commercial business                                |   | $          | 4,155  |   |                  | $      | 4,403  |      |   | $      | 549                   |   |   | $                    | 6,147  |   |   | $ | 15 |   |
| Commercial real estate- construction               |   |       | 2,195  |   |                  |   | 3,229  |      |   |   | 71                    |   |   |                 | 2,189  |   |   |   | 15 |   |
| Commercial real estate- other                      |   |       | 5,213  |   |                  |   | 5,784  |      |   |   | 271                   |   |   |                 | 8,158  |   |   |   | 18 |   |
| Residential- prime                                 |   |       | 615    |   |                  |   | 615    |      |   |   | -                     |   |   |                 | 487    |   |   |   | - |   |

----

|            |   |                     |   |   |                   |   |   | Commercial Real Estate- |   |   | Commercial Real Estate- |   |
|-----------------|--------|--------------------------|--------|--------|------------------------|--------|--------|-----------------------------------|--------|--------|-----------------------------------|--------|
|            |   | Commercial Business |   |   | Commercial Leases |   |   | Construction                      |   |   | Other                             |   |
|            |   | 2011                     |   |   | 2010                   |   |   | 2011                              |   |   | 2010                              |   |   | 2011 |   |   | 2010 |   |   | 2011 |   |   | 2010 |   |
| Pass            |   | $                        | 45,011 |   |                   | $      | 38,837 |                              |   | $      | 2,465                             |   |   | $ | 5,061 |   |   | $ | 7,191 |   |   | $ | 11,470 |   |   | $ | 41,439 |   |   | $ | 31,909 |   |
| Special Mention |   |                     | 1,150  |   |                   |   | 3,319  |                              |   |   | 7                                 |   |   |   | 8 |   |   |   | 2,313 |   |   |   | 1,673 |   |   |   | 2,919 |   |   |   | 1,672 |   |
| Substandard     |   |                     | 7,326  |   |                   |   | 8,609  |                              |   |   | 134                               |   |   |   | 58 |   |   |   | 2,689 |   |   |   | 3,942 |   |   |   | 8,392 |   |   |   | 13,056 |   |
| Doubtful        |   |                     | 641    |   |                   |   | 546    |                              |   |   | -                                 |   |   |   | - |   |   |   | 71 |   |   |   | 131 |   |   |   | 1,128 |   |   |   | 209 |   |
| Total           |   | $                        | 54,128 |   |                   | $      | 51,311 |                              |   | $      | 2,606                             |   |   | $ | 5,127 |   |   | $ | 12,264 |   |   | $ | 17,216 |   |   | $ | 53,878 |   |   | $ | 46,846 |   |

|                              |   | Residential- Prime |   |
|-----------------------------------|--------|-------------------------|--------|
|                              |   | 2011                    |   |   | 2010 |   |
| Pass                              |   | $                       | 56,690 |   |   | $ | 64,931 |   |
| Special Mention                   |   |                    | 56     |   |   |   | 58 |   |
| Substandard                       |   |                    | 615    |   |   |   | 117 |   |
| Doubtful                          |   |                    | -      |   |   |   | - |   |
| Total                             |   | $                       | 57,361 |   |   | $ | 65,106 |   |
|                              |   |                    |   |   |   |   |   |   |
| Consumer Credit Exposure          |   |                    |   |   |   |   |   |   |
| Credit Risk Profile by Internally |   |                    |   |   |   |   |   |   |
| Assigned Grade                    |   |                    |   |   |   |   |   |   |
|                              |   |                    |   |   |   |   |   |   |
|                              |   | Consumer                |   |
|                              |   | 2011                    |   |   | 2010 |   |
| Performing                        |   | $                       | 13,195 |   |   | $ | 15,035 |   |
| Nonperforming                     |   |                    | 36     |   |   |   | 55 |   |
| Total                             |   | $                       | 13,231 |   |   | $ | 15,090 |   |

----

| (in thousands)     |   |          |   |   |          |   |   | GreaterThan    |   |   |   |   |   |    |   |   |    |   |    |   |   |
|-------------------------|--------|---------------|--------|--------|---------------|--------|--------|----------------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|---------|--------|--------|
|                    |   | 30-59         |   |   | 60-89         |   |   | 90 Days   |   |   | Total  |   |   |    |   |   | Non-    |   |    |   |   |
|                    |   | Days          |   |   | Days          |   |   | and Still |   |   | Past   |   |   |    |   |   | Accrual |   |    | Total  |   |
|                    |   | Past Due |   |   | Past Due |   |   | Accruing       |   |   | Due    |   |   | Current |   |   | Loans   |   |    | Loans  |   |
| Residential- prime      |   | $             | 690    |   |          | $      | -      |           |   | $      | -      |   |   | $       | 690    |   |    | $      | 56,056  |   |   | $ | 615 |   |   | $ | 57,361 |   |
| Commercial real estate: |   |          |   |   |          |   |   |           |   |   |   |   |   |    |   |   |    |   |    |   |   |   |   |   |   |   |   |   |
| Construction            |   |          | -      |   |          |   | -      |           |   |   | -      |   |   |    | -      |   |    |   | 10,069  |   |   |   | 2,195 |   |   |   | 12,264 |   |
| Other                   |   |          | -      |   |          |   | 117    |           |   |   | -      |   |   |    | 117    |   |    |   | 48,448  |   |   |   | 5,313 |   |   |   | 53,878 |   |
| Commercial business     |   |          | 243    |   |          |   | 2,131  |           |   |   | -      |   |   |    | 2,374  |   |    |   | 47,599  |   |   |   | 4,155 |   |   |   | 54,128 |   |
| Commercial leases       |   |          | 69     |   |          |   | 23     |           |   |   | -      |   |   |    | 92     |   |    |   | 2,379   |   |   |   | 135 |   |   |   | 2,606 |   |
| Consumer                |   |          | 113    |   |          |   | -      |           |   |   | 67     |   |   |    | 180    |   |    |   | 13,015  |   |   |   | 36 |   |   |   | 13,231 |   |
| Total                   |   | $             | 1,115  |   |          | $      | 2,271  |           |   | $      | 67     |   |   | $       | 3,453  |   |    | $      | 177,566 |   |   | $ | 12,449 |   |   | $ | 193,468 |   |

|                                                           |   | March 31, |   |   | June 30, |   |
|----------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
| ($ in thousands)                                               |   | 2011           |   |   | 2010          |   |
| Loans accounted for on a non-accrual basis (1)                 |   |           |   |   |          |   |
| Residential - prime                                            |   | $              | 615    |   |          | $      | 116 |   |
| Commercial real estate:                                        |   |           |   |   |          |   |   |   |
| Construction                                                   |   |           | 2,195  |   |          |   | 1,763 |   |
| Other                                                          |   |           | 5,313  |   |          |   | 2,737 |   |
| Consumer                                                       |   |           | 36     |   |          |   | 46 |   |
| Commercial business                                            |   |           | 4,155  |   |          |   | 4,973 |   |
| Commercial leases                                              |   |           | 135    |   |          |   | 93 |   |
| Consumer                                                       |   |           | 36     |   |          |   | 46 |   |
| Total                                                          |   |           | 12,449 |   |          |   | 9,728 |   |
|                                                           |   |           |   |   |          |   |   |   |
| Accruing loans that are contractually past due 90 days or more |   |           | 67     |   |          |   | - |   |
| Total non-performing loans                                     |   |           | 12,516 |   |          |   | 9,728 |   |
|                                                           |   |           |   |   |          |   |   |   |
| Other non-performing assets (2)                                |   |           | 1,454  |   |          |   | 2,875 |   |
| Total non-performing assets                                    |   | $              | 13,970 |   |          | $      | 12,603 |   |
|                                                           |   |           |   |   |          |   |   |   |
| Nonperforming loans to total loans                             |   |           | 6.47   | %      |          |   | 4.85 | % |
|                                                           |   |           |   |   |          |   |   |   |
| Nonperforming assets to total assets                           |   |           | 5.18   | %      |          |   | 4.67 | % |
| Troubled debt restructurings: (3)                              |   |           |   |   |          |   |   |   |
| Accruing                                                       |   | $              | 3,900  |   |          | $      | 3,400 |   |
| Non-accruing                                                   |   |           | 5,688  |   |          |   | 4,327 |   |
| Total                                                          |   | $              | 9,588  |   |          | $      | 7,727 |   |

|   | (1) | Nonaccrual status denotes loans on which, in the opinion of management, the collection of additional interest is unlikely.  Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on management’s assessment of the collectability of the loan. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Other nonperforming assets represent property acquired by Patapsco Bancorp through foreclosure or repossession. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

|   | (3) | Certain troubled debt restructurings are accounted on a non-accrual basis and included in total non-performing loans above. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                  |   |       |   |   | Commercial       |   |   |     |   |   |        |   |   | Commercial |   |   |   |   |
|-------------------------------------------------------|--------|------------|--------|--------|------------------|--------|--------|----------|--------|--------|-------------|--------|--------|------------|--------|--------|--------|--------|
|                                                  |   | Commercial |   |   | Real Estate |   |   | Consumer |   |   | Residential |   |   | Leases     |   |   | Total  |   |
| Allowance for credit losses:                          |   |       |   |   |             |   |   |     |   |   |        |   |   |       |   |   |   |   |
| Beginning Balance                                     |   | $          | 931    |   |             | $      | 2,618  |     |   | $      | 472         |   |   | $          | 76     |   |   | $      | 308 |   |   | $ | 4,405 |   |
| Charge-offs                                           |   |       | (43    | )      |             |   | (645   | )        |   |   | (460        | )      |   |       | -      |   |   |   | (95 | ) |   |   | (1,243 | ) |
| Recoveries                                            |   |       | 26     |   |             |   | -      |     |   |   | 12          |   |   |       | -      |   |   |   | 16 |   |   |   | 54 |   |
| Provisions                                            |   |       | (35    | )      |             |   | 256    |     |   |   | 686         |   |   |       | 30     |   |   |   | 63 |   |   |   | 1,000 |   |
| Ending balance                                        |   | $          | 879    |   |             | $      | 2,229  |     |   | $      | 710         |   |   | $          | 106    |   |   | $      | 292 |   |   | $ | 4,216 |   |
| Ending balance: individually evaluated for impairment |   | $          | 549    |   |             | $      | 342    |     |   | $      | -           |   |   | $          | -      |   |   | $      | - |   |   | $ | 891 |   |
| Ending balance: collectively evaluated for impairment |   | $          | 330    |   |             | $      | 1,887  |     |   | $      | 710         |   |   | $          | 106    |   |   | $      | 292 |   |   | $ | 3,325 |   |

----

----

|                                     |   |   |   |   |                   |   |   |                  |   |   |                   |   |   | Well Capitalized Under |   |
|------------------------------------------|--------|--------|--------|--------|------------------------|--------|--------|-----------------------|--------|--------|------------------------|--------|--------|----------------------------------|--------|
|                                     |   |   |   |   |                   |   |   | For Capital      |   |   | Prompt Corrective |   |
|                                     |   | Actual |   |   | Adequacy Purposes |   |   | Action Provision |   |
| ($ in thousands)               |   | Amount |   |   | %                      |   |   | Amount                |   |   | %                      |   |   | Amount                           |   |   | % |   |
|                                     |   |   |   |   |                   |   |   |                  |   |   |                   |   |   |                             |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   | $      | 22,312 |   |                   |   | 12.99  | %                     |   | $      | 13,908                 |   |   |                             | 8.00   | % |   | $ | 17,385 |   |   |   | 10.00 | % |
|                                     |   |   |   |   |                   |   |   |                  |   |   |                   |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   | $      | 20,139 |   |                   |   | 11.72  | %                     |   | $      | 6,954                  |   |   |                             | 4.00   | % |   | $ | 10,431 |   |   |   | 6.00 | % |
|                                     |   |   |   |   |                   |   |   |                  |   |   |                   |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   | $      | 20,139 |   |                   |   | 7.47   | %                     |   | $      | 10,786                 |   |   |                             | 4.00   | % |   | $ | 13,482 |   |   |   | 5.00 | % |

|                                     |   |   |   |   |                   |   |   | Well Capitalized Under |   |
|------------------------------------------|--------|--------|--------|--------|------------------------|--------|--------|----------------------------------|--------|
|                                     |   |   |   |   | For Capital       |   |   | Prompt Corrective           |   |
|                                     |   | Actual |   |   | Adequacy Purposes |   |   | Action Provision            |   |
| ($ in thousands)               |   | Amount |   |   | %                      |   |   | Amount                           |   |   | % |   |   | Amount |   |   | % |   |
|                                     |   |   |   |   |                   |   |   |                             |   |   |   |   |   |   |   |   |   |   |
| Total Capital (to Risk Weighted Assets)  |   | $      | 23,009 |   |                   |   | 12.35  | %                                |   | $ | 15,000 |   |   |   | 8.00 | % |   | $ | 18,750 |   |   |   | 10.00 | % |
|                                     |   |   |   |   |                   |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Risk Weighted Assets) |   | $      | 20,663 |   |                   |   | 11.09  | %                                |   | $ | 7,500 |   |   |   | 4.00 | % |   | $ | 11,250 |   |   |   | 6.00 | % |
|                                     |   |   |   |   |                   |   |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital (to Average Assets)       |   | $      | 20,663 |   |                   |   | 7.76   | %                                |   | $ | 10,649 |   |   |   | 4.00 | % |   | $ | 13,311 |   |   |   | 5.00 | % |

|                                        |   | Nine Months EndedMarch 31, |   |   | Three Months EndedMarch 31, |   |
|---------------------------------------------|--------|----------------------------|--------|--------|-----------------------------|--------|
|                                        |   | 2011                       |   |   | 2010                        |   |   | 2011 |   |   | 2010 |   |
| (in thousands except for per share data)    |   |                       |   |   |                        |   |   |   |   |   |   |   |
|                                        |   |                       |   |   |                        |   |   |   |   |   |   |   |
| Net loss available for common shareholders  |   | $                          | (909   | )      |                        | $      | (2,134 | ) |   | $ | (474 | ) |   | $ | (2,076 | ) |
|                                        |   |                       |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted average shares outstanding   |   |                       | 1,942  |   |                        |   | 1,927 |   |   |   | 1,942 |   |   |   | 1,933 |   |
| Basic loss per share                        |   | $                          | (0.47  | )      |                        | $      | ( 1.11 | ) |   | $ | (0.24 | ) |   | $ | ( 1.07 | ) |
|                                        |   |                       |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |
| Dilutive shares                             |   |                       | -      |   |                        |   | - |   |   |   | - |   |   |   | - |   |
| Diluted weighted average shares outstanding |   |                       | 1,942  |   |                        |   | 1,927 |   |   |   | 1,942 |   |   |   | 1,933 |   |
| Diluted loss per share                      |   | $                          | (0.47  | )      |                        | $      | ( 1.11 | ) |   | $ | (0.24 | ) |   | $ | ( 1.07 | ) |
|                                        |   |                       |   |   |                        |   |   |   |   |   |   |   |   |   |   |   |

----

|                                    |   | Shares |   |   | WeightedAverageExercisePrice |   |   | WeightedAverageRemainingContractualTerm in Years |   |   | AggregateIntrinsicValue (000s) |   |
|-----------------------------------------|--------|--------|--------|--------|------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-------------------------------------|--------|
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |
| Outstanding at  June 30, 2010 |   |   | 20,832 |   |                         | $      | 6.29   |                                                       |   |   | 1.11                                |   |   | $ | - |   |
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |   |   |   |   |
| Granted                                 |   |   | -      |   |                         |   | -      |                                                       |   |   | -                                   |   |   |   |   |   |
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |   |   |   |   |
| Exercised                               |   |   | -      |   |                         |   | -      |                                                       |   |   | -                                   |   |   |   |   |   |
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |   |   |   |   |
| Forfeited or expired                    |   |   | -      |   |                         |   | -      |                                                       |   |   | -                                   |   |   |   |   |   |
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |   |   |   |   |
| Outstanding at March 31, 2011           |   |   | 20,832 |   |                         | $      | 6.29   |                                                       |   |   | 0.35                                |   |   | $ | - |   |
|                                    |   |   |   |   |                         |   |   |                                                       |   |   |                                |   |   |   |   |   |
| Exercisable at March 31, 2011           |   |   | 20,832 |   |                         | $      | 6.29   |                                                       |   |   |                                |   |   |   |   |   |

----

|                           |   | CommonShares |   |   | Weighted Average Grant-DateFair Value |   |
|--------------------------------|--------|--------------|--------|--------|------------------------------------------------------|--------|
|                           |   |         |   |   |                                                 |   |
| Non-vested as of June 30, 2010 |   |         | 2,250  |   |                                                 | $      | 7.10 |   |
|                           |   |         |   |   |                                                 |   |   |   |
| Awards Granted                 |   |         | -      |   |                                                 |   | - |   |
| Vested                         |   |         | -      |   |                                                 |   | - |   |
| Forfeited                      |   |         | -      |   |                                                 |   | - |   |
|                           |   |         |   |   |                                                 |   |   |   |
| Non-vested at March 31, 2011   |   |         | 2,250  |   |                                                 | $      | 7.10 |   |

|                                              |   | March 31, 2011 |    |   | June 30, 2010 |   |
|---------------------------------------------------|--------|--------------------------|---------|--------|-------------------------|--------|
|                                              |   | Carrying                 |    |   |                    |   |   | Carrying |   |   |   |   |
| (In thousands)                               |   | amount                   |    |   | Fair value         |   |   | amount |   |   | Fair value |   |
| Assets:                                           |   |                     |    |   |                    |   |   |   |   |   |   |   |
| Cash and cash equivalents                         |   | $                        | 25,637  |   |                    | $      | 25,637 |   |   | $ | 28,043 |   |   | $ | 28,043 |   |
| Securities available for sale                     |   |                     | 38,004  |   |                    |   | 38,004 |   |   |   | 25,482 |   |   |   | 25,482 |   |
| Loans receivable, net                             |   |                     | 189,252 |   |                    |   | 196,962 |   |   |   | 197,169 |   |   |   | 205,092 |   |
| Investment in securities required by law          |   |                     | 2,663   |   |                    |   | 2,663 |   |   |   | 2,848 |   |   |   | 2,848 |   |
| Accrued interest receivable                       |   |                     | 1,782   |   |                    |   | 1,782 |   |   |   | 1,482 |   |   |   | 1,482 |   |
| Liabilities:                                      |   |                     |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                          |   |                     | 235,030 |   |                    |   | 235,309 |   |   |   | 228,789 |   |   |   | 228,846 |   |
| Long-term debt and junior subordinated debentures |   |                     | 17,000  |   |                    |   | 15,742 |   |   |   | 22,100 |   |   |   | 21,084 |   |
| Accrued interest payable                          |   |                     | 543     |   |                    |   | 543 |   |   |   | 392 |   |   |   | 392 |   |
| Off balance sheet instruments:                    |   |                     |    |   |                    |   |   |   |   |   |   |   |   |   |   |   |
| Commitments to extend credit                      |   |                     | -       |   |                    |   | - |   |   |   | - |   |   |   | - |   |

----

----

|   | · | Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted prices of identical or similar assets or liabilities in markets that are not active, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------|

----

|                                            |   | At March 31, 2011 |        |
|-------------------------------------------------|--------|----------------------------------|-------------|
| (In thousands)                             |   | Total                            |        |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Measured at fair value on a recurring basis:    |   |                             |        |   |   |   |   |   |   |   |   |   |
| Corporate bonds                                 |   | $                                | 3,007       |   |   | $ | - |   |   | $ | 3,007 |   |   | $ | - |   |
| U.S. Government agencies                        |   |                             | 11,930      |   |   |   | - |   |   |   | 11,930 |   |   |   | - |   |
| Mortgage-backed securities, residential         |   |                             | 4,183       |   |   |   | - |   |   |   | 4,183 |   |   |   | - |   |
| Collateralized mortgage obligations, agencies   |   |                             | 18,884      |   |   |   | - |   |   |   | 18,884 |   |   |   | - |   |
| Total securities available for sale             |   | $                                | 38,004      |   |   | $ | - |   |   | $ | 38,004 |   |   | $ | - |   |
|                                            |   |                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured at fair value on a nonrecurring basis: |   |                             |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                                  |   | S                           |  4,222 |   |   | $ | - |   |   | $ | - |   |   | $ | 4,222 |   |
| Repossessed real estate and other assets        |   | $                                | 1,454       |   |   | $ | - |   |   | $ | - |   |   | $ | 1,454 |   |

|                                            |   | At June 30, 2010 |   |
|-------------------------------------------------|--------|---------------------------------|--------|
| (In thousands)                             |   | Total                           |   |   | Level 1 |   |   | Level 2 |   |   | Level 3 |   |
| Measured at fair value on a recurring basis:    |   |                            |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale                   |   | $                               | 25,482 |   |   | $ | - |   |   | $ | 25,482 |   |   | $ | - |   |
|                                            |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Measured at fair value on a nonrecurring basis: |   |                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                                  |   | $                               | 3,353  |   |   | $ | - |   |   | $ | - |   |   | $ | 3,353 |   |
| Repossessed real estate and other assets        |   | $                               | 2,875  |   |   | $ | - |   |   | $ | - |   |   | $ | 2,875 |   |

----

----

----

----

----

|                                                                        |   | Nine Months Ended March 31, |    |
|----------------------------------------------------------------------------------|--------|-------------------------------------------------|---------|
|                                                                             |   | 2011                                            |    |   | 2010 |   |
|                                                                             |   | Average                                         |    |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                             |   | Balance                                         |    |   | Interest |   |   | Rate(1) |   |   | Balance |   |   | Interest |   |   | Rate(1) |   |
|                                                                             |   | (Dollars in thousands)                |    |
| Interest-earning assets:                                                         |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, including fees (2)                                             |   | $                                               | 197,647 |   |   | $ | 8,891 |   |   |   | 5.94 | % |   | $ | 217,373 |   |   | $ | 10,103 |   |   |   | 6.15 | % |
| Securities, including securities required by law                                 |   |                                            | 33,016  |   |   |   | 639 |   |   |   | 2.58 | % |   |   | 18,967 |   |   |   | 473 |   |   |   | 3.33 | % |
| Federal funds sold and other investments                                         |   |                                            | 23,024  |   |   |   | 46 |   |   |   | 0.26 | % |   |   | 12,295 |   |   |   | 21 |   |   |   | 0.22 | % |
| Total interest earning assets                                                    |   |                                            | 253,687 |   |   |   | 9,576 |   |   |   | 4.99 | % |   |   | 248,635 |   |   |   | 10,597 |   |   |   | 5.64 | % |
| Non-interest-earning assets                                                      |   |                                            | 16,928  |   |   |   |   |   |   |   |   |   |   |   | 16,405 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                     |   | $                                               | 270,615 |   |   |   |   |   |   |   |   |   |   | $ | 265,040 |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                    |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                        |   | $                                               | 222,617 |   |   |   | 2,589 |   |   |   | 1.55 | % |   | $ | 203,267 |   |   |   | 3,217 |   |   |   | 2.11 | % |
| Short-term borrowings                                                            |   |                                            | -       |   |   |   | - |   |   |   | - |   |   |   | 1,971 |   |   |   | 6 |   |   |   | 0.43 | % |
| Long-term borrowings                                                             |   |                                            | 19,606  |   |   |   | 670 |   |   |   | 4.49 | % |   |   | 27,779 |   |   |   | 921 |   |   |   | 4.36 | % |
| Total interest-bearing liabilities                                               |   |                                            | 242,223 |   |   |   | 3,259 |   |   |   | 1.79 | % |   |   | 233,017 |   |   |   | 4,144 |   |   |   | 2.36 | % |
| Non-interest-bearing liabilities                                                 |   |                                            | 10,675  |   |   |   |   |   |   |   |   |   |   |   | 11,874 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                |   |                                            | 252,898 |   |   |   |   |   |   |   |   |   |   |   | 244,891 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                             |   |                                            | 17,717  |   |   |   |   |   |   |   |   |   |   |   | 20,149 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                 |   | $                                               | 270,615 |   |   |   |   |   |   |   |   |   |   | $ | 265,040 |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                              |   |                                            |    |   |   | $ | 6,317 |   |   |   |   |   |   |   |   |   |   | $ | 6,453 |   |   |   |   |   |
|                                                                             |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread                                                             |   |                                            |    |   |   |   |   |   |   |   | 3.20 | % |   |   |   |   |   |   |   |   |   |   | 3.28 | % |
| Net Interest margin                                                              |   |                                            |    |   |   |   |   |   |   |   | 3.32 | % |   |   |   |   |   |   |   |   |   |   | 3.46 | % |
|                                                                             |   |                                            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio of average interest-earning assets to average interest-bearing liabilities |   |                                            |    |   |   |   |   |   |   |   | 104.73 | % |   |   |   |   |   |   |   |   |   |   | 106.70 | % |

----

----

|                                                                        |   | Three Months Ended March 31, |    |
|----------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                             |   | 2011                                             |    |   | 2010 |   |
|                                                                             |   | Average                                          |    |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                             |   | Balance                                          |    |   | Interest |   |   | Rate(1) |   |   | Balance |   |   | Interest |   |   | Rate(1) |   |
|                                                                             |   | (Dollars in thousands)                 |    |
| Interest-earning assets:                                                         |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivable, including fees (2)                                             |   | $                                                | 195,067 |   |   | $ | 2,818 |   |   |   | 5.78 | % |   | $ | 213,171 |   |   | $ | 3,190 |   |   |   | 5.98 | % |
| Securities, including securities required by law                                 |   |                                             | 39,861  |   |   |   | 228 |   |   |   | 2.28 | % |   |   | 19,081 |   |   |   | 148 |   |   |   | 3.12 | % |
| Federal funds sold and other investments                                         |   |                                             | 20,726  |   |   |   | 16 |   |   |   | 0.30 | % |   |   | 12,136 |   |   |   | 6 |   |   |   | 0.19 | % |
| Total interest earning assets                                                    |   |                                             | 255,654 |   |   |   | 3,062 |   |   |   | 4.79 | % |   |   | 244,388 |   |   |   | 3,344 |   |   |   | 5.47 | % |
| Non-interest-earning assets                                                      |   |                                             | 17,550  |   |   |   |   |   |   |   |   |   |   |   | 19,664 |   |   |   |   |   |   |   |   |   |
| Total assets                                                                     |   | $                                                | 273,204 |   |   |   |   |   |   |   |   |   |   | $ | 264,052 |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                    |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest bearing deposits                                                        |   | $                                                | 226,042 |   |   |   | 752 |   |   |   | 1.35 | % |   | $ | 207,479 |   |   |   | 970 |   |   |   | 1.90 | % |
| Short-term borrowings                                                            |   |                                             | -       |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Long-term borrowings                                                             |   |                                             | 17,000  |   |   |   | 189 |   |   |   | 4.46 | % |   |   | 25,545 |   |   |   | 287 |   |   |   | 4.49 | % |
| Total interest-bearing liabilities                                               |   |                                             | 243,042 |   |   |   | 941 |   |   |   | 1.57 | % |   |   | 233,024 |   |   |   | 1,257 |   |   |   | 2.18 | % |
| Non-interest-bearing liabilities                                                 |   |                                             | 10,281  |   |   |   |   |   |   |   |   |   |   |   | 11,148 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                |   |                                             | 253,323 |   |   |   |   |   |   |   |   |   |   |   | 244,172 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                             |   |                                             | 19,881  |   |   |   |   |   |   |   |   |   |   |   | 19,880 |   |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders’ equity                                 |   | $                                                | 273,204 |   |   |   |   |   |   |   |   |   |   | $ | 264,052 |   |   |   |   |   |   |   |   |   |
|                                                                             |   |                                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                                              |   |                                             |    |   |   | $ | 2,121 |   |   |   |   |   |   |   |   |   |   | $ | 2,087 |   |   |   |   |   |
| Interest rate spread                                                             |   |                                             |    |   |   |   |   |   |   |   | 3.22 | % |   |   |   |   |   |   |   |   |   |   | 3.29 | % |
| Net interest margin                                                              |   |                                             |    |   |   |   |   |   |   |   | 3.36 | % |   |   |   |   |   |   |   |   |   |   | 3.46 | % |
| Ratio of average interest-earning assets to average interest-bearing liabilities |   |                                             |    |   |   |   |   |   |   |   | 105.18 | % |   |   |   |   |   |   |   |   |   |   | 104.88 | % |

----

----

| Balance June 30, 2010                                                                 |   | $      | 9,728  |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|
| Added to non-accrual during the year                                                  |   |   | 7,214  |   |
| Paid off/down                                                                         |   |   | (1,676 | )      |
| Brought to accrual status                                                             |   |   | (1,332 | )      |
| Transferred to real estate acquired through foreclosure                               |   |   | (289   | )      |
| Charged-Off                                                                           |   |   | (1,238 | )      |
| Net change in non-accrual Leases, Consumer & Residential Mortgages, and all other |   |   | 42     |   |
| Balance March 31, 2011                                                                |   | $      | 12,449 |   |

----

----

|                                |   | March 31, 2011 |   |   | June 30, 2010 |   |
|-------------------------------------|--------|--------------------------|--------|--------|-------------------------|--------|
| ($ in thousands)                    |   |                     |   |   |                    |   |
| Commitments to originate new loans  |   | $                        | 15,105 |   |                    | $      | 11,911 |   |
| Undisbursed lines of credit         |   |                     | 11,275 |   |                    |   | 10,132 |   |
| Financial standby letters of credit |   |                     | 1,563  |   |                    |   | 1,349 |   |

----

| Item 1. | Legal Proceedings |
|---------|-------------------|

| Item 1A. | Risk Factors |
|----------|--------------|

| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

| Item 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| Item 4. | Removed and Reserved |
|---------|----------------------|

| Item 5. | Other Information |
|---------|-------------------|

| Item 6. | Exhibits |
|---------|----------|

|   | (a) | Exhibits |
|--------|-----|----------|

| ExhibitNumber |         | Title                                                                                                                                   |
|---------------|--------------|-----------------------------------------------------------------------------------------------------------------------------------------|
|          |         |                                                                                                                                    |
| 3.1           |    | Articles of Incorporation of Patapsco Bancorp, Inc. and Articles Supplementary (1)                                                      |
| 3.2           |    | Bylaws of Patapsco Bancorp, Inc., as amended (2)                                                                                        |
| 4.1           |    | Form of Common Stock Certificate of Patapsco Bancorp, Inc. (3)                                                                          |
| 4.2           |    | Articles Supplementary establishing Fixed Rate Cumulative Perpetual Preferred Stock, Series A, of Patapsco  Bancorp, Inc. (4) |
| 4.3           |    | Form of stock certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series A (4)                                             |
| 4.4           |    | Form of warrant to purchase 300.003 shares of common stock of Patapsco Bancorp, Inc. (4)                                                |
| 4.5           |    | Articles Supplementary establishing Fixed Rate Cumulative Perpetual Preferred Stock, Series B, of Patapsco Bancorp, Inc. (4)       |
| 4.6           |    | Form of stock certificate for Fixed Rate Cumulative Perpetual Preferred Stock, Series B (4)                                             |
| 31.1          |         | Rule 13a-14(a) Certification of Chief Executive Officer                                                                                 |
| 31.2          |         | Rule 13a-14(a) Certification of Chief Financial Officer                                                                                 |
| 32            |         | Certification of Chief Executive Officer and Chief Financial Officer pursuant to §906 of Sarbanes Oxley Act                        |

| (1) | Incorporated herein by reference from the Company’s Annual Report on Form 10-KSB for the year ended June 30, 2000 (File No. 0-28032). |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Incorporated herein by reference from the Company’s Current Report on Form 8-K for the event on July 23, 2008, filed with the SEC on July 25, 2008 (File No. 0-28032). |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Incorporated herein by reference from the Company’s Registration Statement on Form 8-A (File No. 0-28032). |
|-----|------------------------------------------------------------------------------------------------------------------|

| (4) | Incorporated by reference from the Company’s Current Report on Form 8-K for the event on December 18, 2008, filed with the SEC on December 23, 2008 (File No. 0-28032). |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|               | PATAPSCO BANCORP, INC.                            |   |
|--------------------|---------------------------------------------------|--------|
|               |                                              |   |
| Date: May 16, 2011 |                                              |   |
|               | /s/ Michael J. Dee                                |   |
|               | Michael J. Dee                                    |   |
|               | President and Chief Executive Officer             |   |
|               |                                              |   |
|               | /s/ William C. Wiedel, Jr.                        |   |
|               | William C. Wiedel, Jr.                            |   |
|               | Senior Vice President and Chief Financial Officer |   |

----