Patapsco in Md. Names New CEO After Quarterly Loss

Patapsco Bancorp (PATD) in Baltimore has appointed a new chief executive after recording a quarterly loss.

Phil Phillips has been named president and CEO of the $231 million-asset company and its banking unit, the company announced Monday. He succeeds Michael Dee, who resigned. The appointment is subject to regulatory approval.

Phillips had been Patapsco's chief lending officer. Before joining Patapsco in 2010, he worked for Provident Bank and Maryland National Bank.

Dee joined Patapsco in 1999 and was named president and CEO since 2006. Earlier, he worked for Sandy Spring Bancorp (SASR) in Maryland and the Bank of Baltimore.

Patapsco also announced a loss of $416,000 for the quarter that ended June 30, compared to a $1 million profit in the same period in 2012.

Net interest income fell 8%, to $1.8 million, as net interest margin decreased by 2 basis points, to 3.27%. Provision for credit losses was $456,000, after the company recorded $863,000 worth of loan recoveries in the prior-year period.

Noninterest income increased 45%, to $250,000, and noninterest expense rose 13%, to $2 million.

The Federal Reserve Bank of Richmond entered into a written agreement with Patapsco in October 2012 that required the company to improve its asset quality. Patapsco had a Tier 1 ratio of 14.15% and total risk-based capital of 15.41% as of the end of June, it said.