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

                                  FORM 10 - QSB
(Mark One)

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

     For the quarterly period ended September 30, 2003

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

     For the transition period from __________ to ___________


                         Commission File Number: 0-28032


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


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


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


                                 (410) 285-1010
                ------------------------------------------------
                 Issuer's Telephone Number, Including Area Code


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

     As of November  10,  2003,  the issuer had 416,834  shares of Common  Stock
issued and outstanding.

     Transitional Small Business Disclosure Format (check one):

     Yes                      No    X
         -------                 -------
<PAGE>



          CONTENTS
          --------

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


Item 1.   Financial Statements

          Consolidated Statements of Financial Condition
            at September 30, 2003 (Unaudited) and June 30, 2003                3

          Consolidated Statements of Income for the Three-Month
            Periods Ended September 30, 2003 and 2002 (Unaudited)              4

          Consolidated Statements of Comprehensive Income Three-Month
            Periods Ended September 30, 2003 and 2002 (Unaudited)              5

          Consolidated Statements of Cash Flows for the Three-Month
            Periods Ended September 30, 2003 and 2002 (Unaudited)              6

          Notes to Consolidated Financial Statements                           7


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

Item 3.   Controls and procedures                                             15


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


Item 1.   Legal Proceedings                                                   16

Item 2.   Changes in Securities and Use of Proceeds                           16

Item 3.   Defaults Upon Senior Securities                                     16

Item 4.   Submission of Matters to a Vote of Security-Holders                 16

Item 5.   Other Information                                                   16

Item 6.   Exhibits and Reports on Form 8-K                                    16

Signatures                                                                    16

Certificates                                                                  17

                                       2
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                 CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                 ----------------------------------------------

<TABLE>
<CAPTION>
                                                                               September 30       June 30,
                                                                                   2003             2003
                                                                               -------------    -------------
<S>                                                                            <C>              <C>
              Assets
              ------
Cash:
     On hand and due from banks                                                $   2,536,036    $   2,193,246
     Interest bearing deposits in other banks                                      7,177,062        5,488,697
Federal funds sold                                                                 4,643,000        6,525,000
Investment securities, at fair value                                               9,578,073        4,541,938
Mortgage-Backed Securities, at fair value                                         25,009,358       19,843,414
Loans receivable, net                                                            109,202,726      113,251,659
Investment in securities required by law, at cost                                  1,836,700        1,318,350
Property and equipment, net                                                        1,014,410          997,646
Goodwill                                                                           1,869,691        1,869,691
Deferred income taxes                                                                506,625          356,332
Accrued interest, prepaid expenses and other assets                                2,964,975        1,418,868
                                                                               -------------    -------------
              Total assets                                                     $ 166,338,656    $ 157,804,841
                                                                               =============    =============

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

Liabilities:
   Savings deposits:
        Interest bearing deposits                                              $ 111,957,727    $ 112,776,166
        Non interest bearing deposits                                              7,030,587        6,878,914
   Borrowings                                                                     30,189,662       20,174,389
   Accrued expenses and other liabilities                                          1,251,354        2,070,113
                                                                               -------------    -------------
              Total liabilities                                                  150,429,330      141,899,582

Temporary Equity - ESOP Shares subject to put option                                 891,358          776,996

Stockholders' equity:
Preferred Stock-Series A Noncumulative Convertible Perpetual $0.01 par value
 authorized 1,000,000 shares with a liquidation preference of $25 per share;
 98,370 and 99,734 shares
 outstanding                                                                             984              997
Additional paid-in-capital                                                         2,460,608        2,494,695
   Common stock $0.01 par value: authorized 4,000,000
     shares: issued and outstanding 416,833 and
     412,634 shares, respectively                                                      4,168            4,126
  Additional paid-in capital                                                       3,040,422        3,081,676
   Contra equity - Employee stock ownership plan                                     (55,532)         (55,532)
   Deferred Compensation - Rabbi Trust                                               (77,544)         (77,544)
   Obligation under Rabbi trust                                                      249,976          249,976
   Retained income, substantially restricted                                       9,311,207        9,070,227
   Unrealized net holding gains on available-for-sale
      portfolios, net of taxes                                                        83,679          359,642
                                                                               -------------    -------------
              Total stockholders' equity, incl. temporary equity                  15,909,326       15,905,259
                                                                               -------------    -------------
              Total liabilities and stockholders' equity                       $ 166,338,656    $ 157,804,841
                                                                               =============    =============
</TABLE>


See accompanying notes to financial statements.

                                       3
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                      -------------------------------------
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                        FOR THREE MONTHS ENDED
                                                            SEPTEMBER 30
                                                     -------------------------
                                                        2003          2002
                                                     -----------   -----------
<S>                                                     <C>            <C>
Interest income:
    Loans receivable                                 $ 2,176,894   $ 2,390,833
    Mortgage-backed securities                           269,872       198,838
    Investment securities                                 93,933        92,744
    Federal funds sold and other investments              36,309        45,352
                                                     -----------   -----------
          Total interest income                        2,577,008     2,727,767
                                                     -----------   -----------

Interest expense:
    Savings deposits                                     650,447       776,846
    Borrowings                                           308,990       286,150
                                                     -----------   -----------
          Total interest expense                         959,437     1,062,996
                                                     -----------   -----------

          Net interest income                          1,617,571     1,664,771
Provision for losses on loans                             42,000       120,000
                                                     -----------   -----------
          Net interest income after provision
                   for losses on loans                 1,575,571     1,544,771

Noninterest income:
    Fees and service charges                              94,476       109,439
     Net gain on sale of investments held for sale            --        12,860
     Net gain on sale of loans held for sale               9,778            --
    Net (loss) on sale of foreclosed real estate              --        (3,071)
    Other                                                 13,921         6,779
                                                     -----------   -----------
        Total noninterest income                         118,175       126,007
                                                     -----------   -----------

Noninterest expenses:
    Compensation and employee benefits                   704,468       654,130
    Insurance premiums                                    17,856        18,065
    Professional fees                                     77,346        61,732
    Equipment expense                                     45,457        61,548
    Net occupancy costs                                   52,705        56,061
    Advertising                                           31,018        21,944
    Data processing                                       53,315        53,396
    Other                                                147,387       197,668
                                                     -----------   -----------
          Total noninterest expense                    1,129,552     1,124,544
                                                     -----------   -----------
          Income before provision for income taxes       564,194       546,234
Provision for income taxes                               210,410       205,510
                                                     -----------   -----------
          Net Income                                 $   353,784   $   340,724
                                                     ===========   ===========
          Basic earnings per share                   $      0.67   $      0.65
                                                     ===========   ===========
          Diluted earnings per share                        0.57          0.56
</TABLE>

See accompanying notes to financial statements.
                                       4
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                 -----------------------------------------------
                                   (UNAUDITED)


                                             FOR THREE MONTHS ENDED
                                                 SEPTEMBER 30,
                                             ----------------------
                                               2003         2002
                                             ---------    ---------

Net income                                   $ 353,784    $ 340,724
Other comprehensive income, net of tax:
  Unrealized net holding (losses)/gains on
    available-for-sale portfolios             (275,963)     291,567
  Reclassification adjustment for gains
    Included in net income, net of tax              --       (8,022)
                                             ---------    ---------
Comprehensive income                         $  77,821    $ 624,269
                                             =========    =========



See accompanying notes to financial statements.

                                       5
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY
                                DUNDALK, MARYLAND

                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                      -------------------------------------
                                   (UNAUDITED)

<TABLE>
<CAPTION>
                                                                     FOR THREE MONTHS ENDED
                                                                          SEPTEMBER 30,
                                                                      2003            2002
                                                                   ------------    ------------
<S>                                                                <C>             <C>
Cash flows from operating activities:
  Net income                                                       $    353,784    $    340,724
  Adjustments to reconcile net income to net
    cash provided by operating activities:
       Depreciation                                                      49,622          35,163
       Provision for losses on loans                                     42,000         120,000
       (Gain)Loss from sale of investment securities                         --         (12,861)
        Proceeds from sale of loans available for sale                1,194,677              --
        Disbursements on loans held for sale                         (1,184,899)             --
       (Gain)Loss from sale of loans held for sale                       (9,778)             --
        Loss on sale of repossessed assets                                   --           3,071
        Amortization of premiums and discounts, net                       3,265         (28,232)
       Deferred loan origination fees, net of costs                     (44,348)        (18,444)
       (Increase)Decrease in deferred taxes,
           prepaid expenses and other assets                         (1,529,916)        (73,361)
       Decrease in accrued expenses and other liabilities              (818,759)       (666,813)
                                                                   ------------    ------------
         Net cash used in operating activities                       (1,944,352)       (300,753)
                                                                   ------------    ------------

Cash flows from investing activities:
  Loan principal disbursements, net of repayments                     4,109,086       1,651,097
  Purchase of investment security available for sale                 (5,012,599)       (600,000)
  Purchase of mortgage-backed securities available for sale         (10,200,344)
  Proceeds from sale of real estate owned                                    --         126,839
  Proceeds from sale of investment securities available for sale             --          71,250
  Purchase of investment securities required by law                    (518,350)             --
  Purchase of property and equipment                                    (66,386)         (3,740)
  Principal repayment on mortgage-backed securities
    available-for-sale                                                4,518,585         523,806
                                                                   ------------    ------------
       Net cash provided by (used) in investing activities           (7,170,008)      1,769,252

Cash flows from financing activities:
  Net increase (Decrease) in deposits                                  (662,731)     (2,828,119)
  Net increase (Decrease) in borrowings                              10,000,000      (2,200,000)
  Cash received in exercise of stock options                             39,050          10,202
  Dividends paid                                                       (112,804)        (99,342)
                                                                   ------------    ------------

         Net cash (used in) provided by financing activities          9,263,515      (5,117,259)
                                                                   ------------    ------------

  Net increase(decrease) in cash and cash equivalents              $    149,155    $ (3,648,760)
  Cash and cash equivalents at beginning of period                   14,206,943      14,856,821
                                                                   ------------    ------------
  Cash and cash equivalents end of period                          $ 14,356,098    $ 11,208,061
                                                                   ============    ============

Supplemental information:
  Interest paid on deposits and borrowed funds                          959,437       1,062,996
  Income taxes paid                                                       2,241           5,000
                                                                   ============    ============

See accompanying notes to financial statements.
</TABLE>

                                       6
<PAGE>

                      PATAPSCO BANCORP, INC. AND SUBSIDIARY

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)


Note 1:   Principles of Consolidation

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

Note 2:   The Patapsco Bank

The Bank is regulated  by The Federal  Reserve  Bank of Richmond  ("the  Federal
Reserve Bank") and The State of Maryland. The primary business of the Bank is to
attract  deposits  from  individual  and  corporate  customers  and to originate
residential  and  commercial  mortgage  loans,  consumer  loans  and  commercial
business loans. The Bank competes with other financial and mortgage institutions
in attracting and retaining  deposits and originating  loans.  The Bank conducts
operations  through  one office  located  at 1301  Merritt  Boulevard,  Dundalk,
Maryland 21222.

Note 3:   Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with  instructions  for Form 10-QSB and therefore,  do not include
all  disclosures  necessary  for a complete  presentation  of the  statements of
condition,  statements of operations  and statements of cash flows in conformity
with generally accepted  accounting  principles.  However,  all adjustments that
are, in the opinion of management,  necessary for the fair  presentation  of the
interim  financial  statements have been included.  Such  adjustments  were of a
normal  recurring  nature.  The results of operations for the three months ended
September  30, 2003 are not  necessarily  indicative  of the results that may be
expected  for  the  entire  year.  For  additional  information,  refer  to  the
consolidated  financial  statements and footnotes thereto included in the Bank's
Annual report of form 10-KSB for the year ended June 30, 2002.

Note 4:   Cash and Cash Equivalents

Cash equivalents include short-term  investments with an original maturity of 90
days or less which consists of Federal funds sold.  Cash  equivalents  and other
liquidity and short-term  investments  are carried at cost,  which  approximates
market value.

Note 5:   Regulatory Capital Requirements

At September 30, 2003, the Bank met each of the three minimum regulatory capital
requirements.  The following table summarizes the Company's  regulatory  capital
position at September 30, 2003 (in thousands).


<TABLE>
<CAPTION>
                                                                          Well Capitalized Under
                                                       For Capital          Prompt Corrective
                                    Actual           Adequacy Purposes      Action Provision
                             -------------------    -------------------   ----------------------
                              Amount        %         Amount       %        Amount         %
                             --------  ---------    ----------  -------   ----------  ----------
<S>                          <C>          <C>         <C>         <C>        <C>           <C>
Total Capital (to Risk
  Weighted Assets)           $14,534      14.56%      $7,988      8.00%      $9,985        10%

Tier 1 Capital (to Risk
   Weighted Assets)          $13,376      13.40%      $3,994      4.00%      $5,991         6%

Tier 1 Capital (to Average
    Assets)                  $13,376       8.23%      $6,500      4.00%      $8,125         5%
</TABLE>

                                       7
<PAGE>

Note 6  Earnings Per Share

Basic per share amounts are based on the weighted average shares of common stock
outstanding.  Diluted  earnings  per share  assume the  conversion,  exercise or
issuance  of  all  potential  common  stock  instruments  such  as  options  and
convertible  securities,  unless  the  effect  is to  reduce a loss or  increase
earnings per share.

<TABLE>
<CAPTION>
                                          Three Months Ended        Three Months Ended
                                          September 30, 2003        September30,2002
                                          Basic       Diluted       Basic       Diluted
                                         --------------------      --------------------
<S>                                      <C>          <C>          <C>          <C>
Net Income                               353,784      353,784      340,724      340,724
Preferred Stock Dividends                 46,111           --       46,953           --
                                         -------      -------      -------      -------
Net Income Available to Common           307,673      353,784      293,771      340,724

Weighted average shares outstanding      459,851      459,851      453,317      453,317

Diluted Securities:
  Preferred Stock                                     131,437                   134,533
  Options                                              28,042                    23,486
---------------------------------------------------------------------------------------
Adjusted Weighted Average Shares         459,851      619,330      453,317      611,336

Per Share Amount                            0.67         0.57         0.65         0.56
</TABLE>


The September  2002 share  outstanding  and earnings per share numbers have been
adjusted for the 10% common  stock  dividend  issued in December  2002 and to be
issued in December 2003. The September 2003 share  outstanding  and earnings per
share numbers have been adjusted for the 10% common stock  dividend to be issued
in December 2003.

Note 7:  Goodwill and Intangible Assets

Under the  provisions  of SFAS No. 142,  goodwill  was  subjected  to an initial
assessment for impairment and subsequent  annual  impairment  tests. The Company
completed its initial  assessment  review in November 2001 and  determined  that
there was no impairment of goodwill. In November 2002, the Company completed its
annual test for goodwill impairment.  This test also resulted in a determination
that  goodwill was not impaired.  The Company will review  goodwill on an annual
basis for impairment and as events occur or circumstances change.

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

General

     The Company's  results of operations  depend  primarily on its level of net
interest   income,   which  is  the  difference   between   interest  earned  on
interest-earning  assets,  consisting primarily of loans, investment securities,
mortgage-backed  securities  and other  investments,  and the  interest  paid on
interest-bearing liabilities, consisting primarily of deposits and advances from
the  Federal  Home Loan  Bank of  Atlanta.  The net  interest  income  earned on
interest-earning   assets   ("net   interest   margin")   and   the   ratio   of
interest-earning  assets  to  interest-bearing  liabilities  have a  significant
impact on net interest income.  The Company's net interest margin is affected by
regulatory, economic and competitive factors that influence interest rates, loan
and deposit flows. The Company, like other financial institutions, is subject to
interest  rate risk to the degree  that its  interest-earning  assets  mature or
reprice at different times, or on a different basis,  than its  interest-bearing
liabilities.  To a lesser extent,  the Company's  results of operations are also
affected  by the  amount  of its  noninterest  income,  including  loan fees and
service charges, and levels of noninterest  expense,  which consists principally
of compensation and employee benefits,  insurance  premiums,  professional fees,
equipment  expense,  occupancy  costs,  advertising,  data  processing and other
operating expenses.

     The  Company's  operating  results  are  significantly  affected by general
economic and competitive conditions,  in particular,  changes in market interest
rates, government policies and actions taken by regulatory authorities.  Lending
activities  are influenced by general  economic  conditions,  competition  among
lenders,  the level of interest  rates and the  availability  of funds.  Deposit
flows and costs of funds are influenced by prevailing  market rates of interest,
primarily on competing investments, account maturities and the level of personal
income and savings in the Company's market area.

                                       8
<PAGE>

FORWARD-LOOKING STATEMENTS

     When used in this Form 10-QSB,  the words or phrases "will likely  result,"
"are expected to," "will continue," "is anticipated,"  "estimate,"  "project" or
similar expressions are intended to identify "forward-looking statements" within
the  meaning of the  Private  Securities  Litigation  Reform  Act of 1995.  Such
statements are subject to certain risks and  uncertainties  including changes in
economic  conditions  in the  Company's  market  area,  changes in  policies  by
regulatory  agencies,  fluctuations in interest  rates,  demand for loans in the
Company's market area, and competition that could cause actual results to differ
materially  from  historical   earnings  and  those  presently   anticipated  or
projected.  The Company wishes to caution readers not to place undue reliance on
any such forward-looking  statements,  which speak only as of the date made. The
Company  wishes to advise readers that the factors listed above could affect the
Company's financial performance and could cause the Company's actual results for
future periods to differ  materially  from any opinions or statements  expressed
with respect to future periods in any current statements.

     The Company does not undertake,  and specifically disclaims any obligation,
to  publicly  release  the  result  of any  revisions  which  may be made to any
forward-looking  statements to reflect events or circumstances after the date of
such  statements or to reflect the occurrence of  anticipated  or  unanticipated
events.

CRITICAL ACCOUNTING POLICIES

     The Company's  consolidated financial statements are prepared in accordance
with accounting  principals  generally  accepted in the United States of America
("GAAP") and follow general  practices within the industry in which it operates.
Application  of  these  principals   requires   management  to  make  estimates,
assumptions,  and  judgments  that affect the amounts  reported in the financial
statements and accompanying notes. These estimates,  assumptions,  and judgments
are based on information  available as of the date of the financial  statements;
accordingly, as this information changes, the financial statements could reflect
different estimates, assumptions and judgments. Certain policies inherently have
a greater  reliance on the use of estimates,  assumptions,  and judgments and as
such have a greater  possibility  of producing  results that could be materially
different than originally reported.  These estimates,  assumptions and judgments
are necessary  when  financial  instruments  are required to be recorded at fair
value or when the decline in the value of an asset  carried on the balance sheet
at historic cost requires an impairment  write-down or a valuation reserve to be
established.

     The  allowance  for loan  losses is an  estimate  of the losses that may be
sustained  in the loan and  lease  portfolio.  Provisions  for loan  losses  are
charged to earnings to maintain the total  allowance  for loan losses at a level
considered  adequate by  management  to provide for probable  loan  losses.  The
allowance  for loan  losses  is  based  on two  principals  of  accounting:  (1)
Statement  of Financial  Accounting  Standards  ("SFAS")  No.5  "Accounting  for
Contingencies",  that  requires  losses to be accrued when their  occurrence  is
probable  and  estimable,  and (2) SFAS No. 114  "Accounting  by  Creditors  for
Impairment of a Loan",  that requires losses be accrued when it is probable that
the lender will not collect all  principal  and  interest due under the original
term of the loan.

     Management   believes  that  the  allowance  is  adequate.   However,   its
determination  requires  significant  judgment,  and  estimates  of the probable
losses in the loan and lease portfolio can vary  significantly from amounts that
actually occur.

COMPARISON OF FINANCIAL CONDITION AT SEPTEMBER 30, 2003 AND JUNE 30, 2002

     The Company's assets  increased by $8.5 million,  or 5.4% to $166.3 million
at September 30, 2003 from $157.8  million at June 30, 2003.  During the quarter
ended  September 30, 2003, the Company  purchased $10 million in ten and fifteen
year  mortgage-backed  securities funded with $10 million in borrowings from the
Federal  Home Loan Bank of Atlanta.  Excess  liquidity  from the early payoff of
first mortgage  loans was used to purchase $5 million in short and  intermediate
term investment  securities,  primarily U.S. Treasury and Agency,  purchase $1.6
million  in bank  owned  life  insurance  and to fund $0.8  million  in  deposit
outflow,  primarily  certificates  of deposits.  Investments  available for sale
increased  $5.0  million  as  the  result  of  the  purchase   mentioned  above.
Mortgage-backed  securities  increased $5.2 million as $4.5 million in pay-downs
were offset by the $10 million  purchase  noted  above.  The low  interest  rate
environment contributed to the reduction in loans outstanding of $4.0 million or
3.5% as payoffs,  primarily in the residential  mortgage  portfolio exceeded new
production.  The residential  mortgage portfolio has been substantially  reduced
due to a high level of payoffs brought on by historically low interest rates.

                                       9
<PAGE>

Interest-bearing  deposits,  primarily  certificates of deposit,  decreased $0.8
million or 0.7% to $112.0  million at September 30, 2003 from $112.8  million at
June 30, 2003.  Total  borrowings  have  increased by $10.0  million or 49.6% to
$30.2  million at  September  30,2003  from  $20.2  million at June 30. As noted
above,  this  increase  in  borrowings  was  used  to  purchase  mortgage-backed
securities. Other liabilities,  primarily escrow accounts for property taxes and
insurance held for our mortgage customers  decreased by $0.8 million or 39.5% to
$1.3million at September 30 from $2.1 million at June 30, 2003.


COMPARISON  OF OPERATING  RESULTS FOR THE QUARTER  ENDED  SEPTEMBER 30, 2003 AND
SEPTEMBER 30, 2002

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

The  Company's  net income  increased  by $13,000  or 3.8% to  $354,000  for the
quarter ended  September 30, 2003 from $341,000 for the quarter ended  September
30, 2002. The increase in the Company's net income during the three-month period
was due to a  $78,000  or  65.0%  decrease  in the  provision  for  loan  losses
offsetting a $47,000 or 2.8% decrease in net interest income,  an $8,000 or 6.2%
decrease  in  noninterest  income  and a $5,000 or 0.5%  increase  in  operating
expenses.

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

Total  interest  income  decreased  by $151,000 or 5.5% to $2.6  million for the
quarter  ended  September  30,  2003 from $2.7  million  for the  quarter  ended
September 30, 2002.  Lower rates on interest  earning  assets  reduced  interest
income by  $219,000  and a higher  average  balance of interest  earning  assets
increased  interest  income  by  $68,000  when  compared  to the  quarter  ended
September 30, 2002. The yield on earning assets  decreased by 79 basis points to
6.55% in the quarter  ended  September 30, 2003 compared to 7.34% in the quarter
ended September 30, 2002.

Interest  income  on loans  receivable  decreased  by  $214,000  or 8.9% to $2.2
million  for the quarter  ended  September  30,  2003 from $2.4  million for the
quarter  ended  September  30, 2002.  The  decrease in interest  income on loans
receivable  during the  three-month  period is due to both the  decrease  in the
average  balance of loans  receivable and a decrease in the average yield earned
on the loan  portfolio.  During the three  months  ended  September  30, 2003 as
compared  to the  same  period  ended  September  30,  2002  the  average  loans
receivable  balance  decreased  by $6.9  million or 5.8% to $111.9  million from
$118.8 million and the average yield  decreased by 18 basis points to 7.89% from
8.07%.  The decrease in average  loans  receivable is primarily due to the early
pay-offs of first mortgage loans exceeding new loan production.

Interest income on investment securities, including investments required by law,
increased by $1,000 or 1.2% as the $1.6 million  increase in the average balance
was offset by a 76 basis point decrease in the yield earned on these securities.

Interest income on mortgage-backed  securities  increased by $71,000 or 35.7% in
the quarter  ended  September  30, 2003 to $270,000 from $199,000 in the quarter
ended  September 30, 2002 due to the higher volume  resulting  from purchases in
the quarter  offsetting  a 171 basis point  decline in the yield earned on these
securities.

Interest income on federal funds sold and other investments  decreased by $9,000
or 19.9% to $36,000 for the quarter  ended  September  30, 2003 from $45,000 for
the quarter  ended  September  30, 2002 as higher  volumes  were offset by lower
rates earned.

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

Total  interest  expense  decreased  by $104,000 or 9.7% to $1.0 million for the
quarter  ended  September  30,  2003 from $1.1  million  for the  quarter  ended
September 30, 2002.  Interest expense on deposits decreased $126,000 or 16.3% in
the  quarter  due mostly to lower rates paid on  deposits.  Interest  expense on
borrowings from the Federal Home Loan Bank of Atlanta  increased $23,000 or 8.0%
due to the higher average  balance of borrowings  outstanding  offsetting  lower
rates paid on borrowed money.

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

The Company's net interest  income  decreased by $47,000 or 2.8% to $1.6 million
for the quarter ended September 30, 2003 from $1.7 million for the quarter ended
September 30, 2002.  The decrease in net interest  income during the  comparable
three-month  period was  primarily  due to lower rates  earned on assets and the
higher volume of borrowed money offsetting lower rates paid on liabilities.  Due
to the  continued  low interest  rate  environment,  the

                                       10
<PAGE>

Company's  net interest  margin has  decreased  from 4.48% in the quarter  ended
September 30, 2002 to 4.11% in the quarter ended September 30, 2003.

AVERAGE BALANCE, INTEREST AND AVERAGE YIELDS AND RATES

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

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

                                       11
<PAGE>

<TABLE>
<CAPTION>
                                                                                        Three months  ended September 30,
                                                                        -----------------------------------------------------------
                                                                                   2003                          2002
                                                                        ---------------------------  ------------------------------
                                                                                           Average                         Average
                                                                        Average            Yield/    Average               Yield/
                                                                        Balance  Interest   Cost     Balance    Interest   Cost
                                                                        -------  --------   ----     -------    --------   ----
                                                                                           (Dollars in thousands)
<S>                                                                     <C>       <C>       <C>     <C>          <C>       <C>
Interest-earning assets:
   Loans receivable (1)...............................................  $111,908  $2,177    7.89%   $118,817     $2,391    8.07%
   Investment securities(2)...........................................     9,043      94    4.21       7,492         93    4.97
   Mortgage-backed securities.........................................    25,588     270    4.28      13,325        199    5.99
   Short-term investments and other interest-earning assets...........    13,080      36    1.13       9,420         45    1.93
                                                                        --------  ------            --------     ------
      Total interest-earning assets...................................   159,619   2,577    6.55     149,054      2,728    7.34
Non-interest-earning assets...........................................     5,322                       5,293
                                                                        --------                    --------
      Total assets....................................................  $164,941                    $154,347
                                                                        ========                    ========
Interest-bearing liabilities:
   Deposits (3).......................................................  $112,187  $  650    2.35    $112,080        777    2.78
   Borrowings.........................................................    30,190     309    4.09      21,438        286    5.28
                                                                        --------  ------            --------     ------
      Total interest-bearing liabilities..............................   142,377     959    2.73     133,518      1,063    3.19
                                                                                  ------                         ------
Non-interest-bearing liabilities......................................     6,833                       5,837
                                                                        --------                    --------
      Total liabilities...............................................   149,210                     139,355
Total Equity..........................................................    15,731                      14,992
                                                                        --------                    --------
      Total liabilities and retained earnings.........................  $164,941                    $154,347
                                                                        ========                    ========

Net interest income...................................................            $1,618                         $1,665
                                                                                  ======                         ======
Net interest margin...................................................                      4.11%                          4.48%
                                                                                          ======                         ======
Interest rate spread..................................................                      3.82%                          4.15%
                                                                                          ======                         ======
Ratio of average interest-earning assets to average
   interest-bearing liabilities.......................................                    112.11%                        111.64%
                                                                                          ======                         ======
</TABLE>

(1)  Includes nonaccrual loans.
(2)  Includes investments required by law
(3)  Includes interest bearing escrow accounts

                                       12
<PAGE>

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

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

The  provision  for loan losses was $42,000 in the quarter  ended  September 30,
2003,  compared to $120,000  for the  quarter  ended  September  30,  2002.  The
Company's allowance for loan losses has increased as a percentage of total loans
outstanding  to 1.05% at  September  30, 2003 from 1.00% at June 30,  2003.  The
Company's allowance for loan losses as a percentage of non-performing  loans was
291.74% at  September  30,  2003 as compared  to 348.32% at June 30,  2003.  The
Company has concluded after analyzing the non-performing  loan portfolio and the
factors mentioned above, that the allowance is adequate.

The following table shows the activity in the allowance for loan losses.



                                                  THREE MONTHS
                                               ENDED SEPTEMBER 30,
                                                  2003     2002
                                                 ------   ------
Allowance for loan losses, beginning of period   $1,139    1,438

Provision for loan losses                            42      120

Loans Charged Off:
         Consumer                                    31       57
         Real Estate                                  0        0
         Commercial                                  20       12
                                                 ------   ------
  Total Charge-Offs                                  51       69
Recoveries:
         Consumer                                    14       11
         Real Estate                                  0        0
         Commercial                                  14        4
                                                 ------   ------
  Total Recoveries                                   28       15
                                                 ------   ------

Allowance for loan losses, end of period         $1,158   $1,504
                                                 ======   ======


     The following  table sets forth  information  with respect to the Company's
non-performing assets at the dates indicated.

                                              At September 30,  At June 30,
                                              ----------------  -----------
                                                  2003             2003
                                                  ----             ----
                                                    (In thousands)
Loans accounted for on a non-accrual basis: (1)
    Real estate:
       Residential ............................   $129             $ 90
       Commercial .............................     --               --
       Construction ...........................     --               --
    Consumer ..................................     32               44
    Commercial Loan/Lease .....................    236              193
                                                  ----             ----
       Total ..................................   $397             $327
                                                  ====             ====

                                       13
<PAGE>

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

       Total non-performing loans .............   $      397       $   327
                                                  ==========       =======

Percentage of total loans .....................         0.36%         0.29%
                                                  ==========       =======
Other non-performing assets (2) ...............   $        4       $    19
                                                  ==========       =======
----------

(1)  Non-accrual  status  denotes loans on which,  in the opinion of management,
     the collection of additional  interest is unlikely.  Payments received on a
     non-accrual loan are either applied to the outstanding principal balance or
     recorded as interest  income,  depending on management's  assessment of the
     collectability of the loan.
(2)  Other  non-performing  assets  represents  property acquired by the Company
     through foreclosure or repossession.  This property is carried at the lower
     of its fair market  value less  estimated  selling  costs or the  principal
     balance of the related loan, whichever is lower.


     At September 30, 2003,  non-accrual loans consisted of two residential real
estate  loans  totaling  $129,000,  two home  equity  lines of  credit  totaling
$32,000,two commercial loans totaling $128,000 of which $77,000 is guaranteed by
the Small Business Administration and five commercial leases totaling $108,000.

Except  as  discussed  below,  the  Company  had  no  loans  not  classified  as
non-accrual,  90 days past due or  restructured  where known  information  about
possible credit problems of borrowers caused management to have serious concerns
as to the ability of the borrowers to comply with present loan  repayment  terms
and may result in disclosure as non-accrual,  90 days past due or  restructured.
At September  30, the company had a $950,000 loan on  undeveloped  land that was
not  delinquent.  The  property is under  contract of sale.  The  borrowers  are
keeping the loan current with funds from other sources.  A preliminary  estimate
is that sales  proceeds  will  result in a  shortfall  to the Bank's  lien after
transaction  costs. The Bank does however,  have liens on other properties owned
by the borrowers. Once further information on the sales contract is received and
the additional collateral analyzed, a charge, if necessary will be taken against
the Bank's allowance for loan.

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

The Company's  non-interest  income consists of deposit fees,  service  charges,
late  fees and  gains on the sale of  loans,  securities  and  repossessed  real
estate. Total noninterest income decreased by $8,000 or 6.2% to $118,000 for the
quarter ended  September 30, 2003 from $126,000 for the quarter ended  September
30, 2002. The decrease in  non-interest  income is primarily the result of lower
fees and service charges on deposits.

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

Total non-interest  expenses increased by $5,000 or 0.5% to $1.1 million for the
quarter  ended  September  30,  2003 from $1.1  million  for the  quarter  ended
September 30, 2002.  Increases in compensation and benefits , professional  fees
and  advertising  fees were  somewhat  offset by  decreases  in other  expenses,
equipment  expenses and occupancy costs. Other expenses decreased $50,000 or 25%
in the quarter ended  September  30, 2003 from the quarter  ended  September 30,
2002  primarily  due to a $25,000  recovery on a bad check that was  expensed in
September 2002.

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

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

The Company's most liquid assets are cash on hand, interest-bearing deposits and
Federal  funds  sold,  which are  short-term,  highly  liquid  investments  with
original  maturities of less than three months that are readily  convertible  to
known amounts of cash. The levels of these assets are dependent on the Company's
operating,  financing  and  investing  activities  during any given  period.  At
September 30, 2003,  the Company's cash on hand,  interest-bearing  deposits and
Federal  funds  sold  totaled  $14.3  million.  In  addition,  the  Company  has
approximately   $34.6   million   of

                                       14
<PAGE>

investment  securities  classified  as  available-for-sale,  none of  which  are
pledged.

The Company anticipates that it will have sufficient funds available to meet its
current  loan  commitments  of $3.7  million and unused  lines of credit of $4.0
million.  Certificates  of deposit that are scheduled to mature in less than one
year  at  September  30,  2003  totaled  $35.0  million.  Historically,  a  high
percentage of maturing deposits have remained with the Company. However, due the
Company's  high  level  of  liquidity,  rates  paid on  certificates  are  being
aggressively  lowered.  This may  result  in some  customers  withdrawing  their
certificates in order to chase yields at other financial institutions.

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

The Company's primary uses of cash provided from investing activities during the
three  months  ended  September  30,  2003 was the  $10.0  million  purchase  of
mortgage-backed   securities  and  the  $5.0  million   purchase  of  investment
securities.  The primary sources of funds in investing  activities were the $4.0
million decrease in the loan portfolio and the $4.5 million principal  repayment
of mortgage-backed securities.

The  Company's  primary  use of cash in  financing  activities  during the three
months  ended  September  30,  2003  consisted  of a $0.7  million  decrease  in
deposits.  The primary  source of cash from  investing  activities was the $10.0
million increase in borrowed money.

The Company, as the holding company for the Bank, has an annual cash requirement
of approximately $420,000 for the payment of common and preferred dividends. The
only source of funds for the holding  company is  dividends  from the Bank.  The
amount of  dividends  that can be paid to the holding  company  from the bank is
limited by the earnings of the bank.

Contingencies and Off-Balance Sheet Items
-----------------------------------------

The  Company  is party to  financial  instruments  with  off-balance  sheet risk
including  commitments  to extend  credit  under both new  facilities  and under
existing lines of credit.  Commitments to fund loans  typically  expire after 60
days,  commercial  lines of credit are subject to annual reviews and home equity
lines of credit are generally for a term of 20 years. These instruments contain,
to varying  degrees,  credit  and  interest  rate risk in excess of the  amounts
recognized in the consolidated balance sheets.


Off-balance sheet financial  instruments whose contract amounts represent credit
and interest rate risk are summarized as follows:

                                        March 31, 2003            June 30, 2003
                                        --------------            -------------
                                                  (dollars in thousands)

Commitments to originate new loans        $3,772                    $1,566
Undisbursed lines of credit                4,011                     4,720
Financial standby letters of credit          841                       958


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


ITEM 3 : CONTROLS AND PROCEDURES

As of the end of the period  covered by this report,  management  of the Company
carried out an evaluation,  under the supervision and with the  participation of
the Company's  principal  executive officer and principal  financial officer, of
the effectiveness of the Company's disclosure controls and procedures.  Based on
this  evaluation,  the  Company's  principal  executive  officer  and  principal
financial  officer  concluded  that  the  Company's   disclosure   controls  and
procedures are effective in ensuring that  information  required to be disclosed
by the Company in

                                       15
<PAGE>

reports that it files or submits under the  Securities  Exchange Act of 1934, as
amended,  is  recorded,  processed,  summarized  and  reported,  within the time
periods specified in the Securities and Exchange Commission's rules and forms.

In addition,  there have been no changes in the Company's  internal control over
financial  reporting  (to the extent  that  elements of  internal  control  over
financial  reporting are subsumed  within  disclosure  controls and  procedures)
identified in connection  with the evaluation  described in the above  paragraph
that occurred  during the Company's  last fiscal  quarter,  that has  materially
affected,  or is reasonably likely to materially  affect, the Company's internal
control over financial reporting.


     PART II. OTHER INFORMATION


Item 1.  Legal Proceedings

         None.

Item 2.  Changes in Securities and use of proceeds.

         None.

Item 3.  Defaults Upon Senior Securities

         None

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

         None

Item 5.  Other Information

         None

Item 6.  Exhibits and Reports on Form 8-K


(a)      Exhibits

         The following exhibit is filed herewith:

         Exhibit                                      Title
         Number                                       -----
         ------
          31.1        Rule 13a-14(a) Certification of Chief Executive Officer
          31.2        Rule 13a-14(a) Certification of Chief Financial Officer
          32          Certification pursuant to 18 U.S.C. Section


         (b)  Reports on Form 8-K

               The Company filed the following Current Report on Form 8-K during
          the first quarter of the fiscal year ended June 30, 2004:

           Date of Report        Item(s) Reported     Financial Statements Filed
           --------------        ----------------     --------------------------

           September 12, 2003         7, 12                       N/A


                                       16
<PAGE>

Signatures


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


                                                PATAPSCO BANCORP, INC.



Date:  November 11, 2003                   /s/ Joseph J. Bouffard
                                           -------------------------------------
                                           Joseph J. Bouffard
                                           President and Chief Executive Officer
                                           (Principal Executive Officer)




Date: November 11, 2003                    /s/ Michael J. Dee
                                           -------------------------------------
                                           Michael J. Dee
                                           Chief Financial Officer & Controller
                                           (Principal Financial Officer)

                                       17