Profile: Patapsco Bancorp Inc (PATD.OB)
25 Feb 2014
Patapsco Bancorp, Inc., incorporated November 9, 1995, operates through its subsidiary, The Patapsco Bank (the Bank). The Company is primarily engaged in the business of directing, planning and coordinating the business activities of the Bank. The Bank is a commercial bank operating through four full-service offices located in Dundalk, Carney, Glen Arm and Baltimore City, Maryland. The primary business of the Bank is to attract deposits from individual and corporate customers and to originate residential and commercial mortgage loans, commercial loans and consumer loans, primarily in the Greater Baltimore Metropolitan area.
The Company’s gross loan portfolio totaled $177.7 million as of June 30, 2012, representing 69.9% of total assets. As of June 30, 2012, $62.5 million, or 35.1%, of the Company’s gross loan portfolio, consisted of residential mortgage loans. Other loans secured by real estate include construction and commercial real estate loans, which amounted to $63 million, or 35.5%, of the Company’s gross loan portfolio at June 30, 2012. In addition, the Company originates consumer and other loans, including home equity loans, home improvement loans and loans secured by deposits. As of June 30, 2012, consumer and other loans totaled $10.1 million, or 5.7%, of the Company’s gross loan portfolio. The Company’s commercial loan portfolio, which consists of small business loans totaled $42.1 million, or 23.7%, of the Company’s gross loan portfolio.
The Company has authority to originate and purchase loans throughout the United States. The Company’s loan originations are derived from a number of sources, including loan brokers, advertising and referrals by depositors and borrowers. It has been an originator of residential real estate loans in its market area. Residential real estate loans consist of both single-family and multi-family residential real estate loans. As of June 30, 2012, residential mortgage loans totaled $62.5 million, or 35.1%, of the Company’s gross loan portfolio. The Company’s multi-family residential loan portfolio consists primarily of loans secured by small apartment buildings. The Company also offers residential and commercial construction loans and land acquisition and development loans. Residential construction loans are offered to individuals who are having their primary or secondary residence built, as well as to local builders to construct single-family dwellings. Residential construction advances are made on a stage of completion basis.
The Company’s commercial real estate loan portfolio consists of loans to finance the acquisition of small office buildings, shopping centers and commercial and industrial buildings. Such loans generally range in size from $100,000 to $2.0 million. As of June 30, 2012, the Company had $54 million of commercial real estate loans, which amounted to 30.4% of the Company’s gross loan portfolio. The consumer loans in the Company’s loan portfolio consist of home improvement loans, home equity loans, loans secured by savings deposits and overdraft protection for checking accounts and other consumer loans. As of June 30, 2012, consumer and other loans totaled $10.1 million, or 5.7%, of the Company’s gross loan portfolio.
The investment activities of the Company consist primarily of investments in mortgage-backed securities and other investment securities. Investments include federally sponsored agency mortgage pass-through, federally sponsored agency debt securities, United States treasury obligations and investment grade corporate securities. As of June 30, 2012, the Company’s entire portfolio of investment securities was classified as available for sale and had an aggregate carrying value of $41.1 million.
Sources of Funds
Deposits are the primary source of the Company’s funds for lending, investment activities and general operational purposes. In addition to deposits, the Company derives funds from loan principal and interest repayments, maturities of investment securities and mortgage-backed securities and interest payments thereon. It attracts deposits from within its market area by offering a variety of deposit instruments, including checking accounts, Christmas Club accounts, money market accounts, statement and passbook savings accounts, Individual Retirement Accounts, and certificates of deposit, which range in maturity from seven days to 66 months. Advances from the Federal Home Loan Bank of Atlanta are secured by the Company’s stock in the Federal Home Loan Bank of Atlanta and other eligible assets. As of June 30, 2012, the Company had outstanding Federal Home Loan Bank of Atlanta advances of $9 million with an average rate of 3.69%.
The Bank has three active operating subsidiaries, Prime Business Leasing, Patapsco Financial Services and PFSL Holding Corp. (PFSL). The primary business of Prime Business Leasing is the servicing of commercial leases. The primary business of Patapsco Financial Services is the sale of consumer investments. The primary business of PFSL is to hold foreclosed real estate until disposition.
Patapsco Bancorp Inc
1301 Merritt Boulevard
DUNDALK MD 21222-2194