10-K/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K/A

Amendment No. 1

(Mark One)

[X]	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2013

OR

[  ]	TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE
	SECURITIES EXCHANGE ACT OF 1934

For the transition period from:                    to

Commission file number: 0-25976

UNITED BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

Pennsylvania	23-2802415
(State or other jurisdiction of	(IRS Employer
incorporation or organization)	Identification No.)

30 S. 15th Street
Philadelphia, PA	19102
(Address of principal	(Zip code)
executive offices)

Registrant's telephone number, including area code:  (215)351-4600

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X]  No []

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

(Check one):
Large accelerated filer [ ]	Accelerated filer [ ]
Non-accelerated filer [ ]	Smaller reporting company [ X]
(Do not check if a smaller
reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).

Yes [ ]  No [X]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of April 11, 2014, the aggregate number of the shares of the Registrant’s Common Stock issued was 1,068,588 (including 191,667 Class B non-voting).

The Series Preferred Stock consists of 500,000 authorized shares of stock of which 250,000 have been designated as Series A Preferred stock of which 136,842 shares are issued as of April 11, 2014.

EXPLANATORY NOTE

The sole purpose of this amendment to our Annual Report on Form 10-K for the fiscal year ended December 31, 2013, originally filed with the Securities and Exchange Commission on March 31, 2014, is to furnish Exhibit 101 to the Form 10-K which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part 1, Item 1 of the Form 10-K. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be furnished with the original filing.

No changes have been made to the Form 10-K other than the furnishing of Exhibit 101 described above. This amendment does not reflect subsequent events occurring after the original filing date of the Form 10-K or modify or update in any way disclosures made in the Form 10-K.

Pursuant to Rule 406T of Regulation S-T, the Interactive Data File on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.

SIGNATURES

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

	UNITED BANCSHARES, INC
	(Registrant)
April 11, 2014	/s/ Evelyn F. Smalls
Date	Evelyn F. Smalls
	President and Chief Executive Officer
April 11, 2014	/s/ Brenda Hudson-Nelson
Date	Executive Vice President,
	Chief Financial Officer

Exhibit No.	Description
3.1	Certificate of Incorporation (1)
3.2	Bylaws (1)
31.1	Rule 13a-14(a)/15d-14(a) Certifications (1)
31.2	Rule 13a-14(a)/15d-14(a) Certifications (1)
32.1	Section 1350 Certifications (1)
32.2 101.INS 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE	Section 1350 Certifications (1) XBRL Instance Document (2) XBRL Taxonomy Extension Schema Document(2) XBRL Taxonomy Extension Calculation Linkbase Document(2) XBRL Taxonomy Extension Definition Linkbase Document(2) XBRL Taxonomy Extension Label Linkbase Document(2) XBRL Taxonomy Extension Presentation Linkbase Document(2)

(1)	Filed previously.
(2)	Furnished herewith.

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6. Other Real Estate Owned: Components of Net Expense of Other Real Estate (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Components of Net Expense of Other Real Estate

(in 000’s)	Year ended December 31, 2013	Year ended December 31, 2012
Insurance	$16	$24
Legal fees	-	5
Maintenance	9	3
Professional fees	-	8
Real estate taxes	24	99
Utilities	5	21
Transfer-in write-up	-	(43)
Impairment charges	157	232
Total	$211	$349

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1. Summary of Significant Accounting Policies: Intangible Assets: Schedule of Intangible Assets (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Details
Core Deposit Premium (cost)	$ 2,449,488	$ 2,449,488
Less accumulated amortization	(2,449,488)	(2,313,755)
Intangible Assets, Net (Excluding Goodwill), Total	$ 0	$ 135,733

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12. Consolidated Financial Information-parent Company Only: Condensed Statements of Operations (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Condensed Statements of Operations

Condensed Statements of Operations

Years ended December 31,
(Dollars in thousands)	2013	2012
Other Expenses	$-	$(20)
Equity in net loss of subsidiary	(669)	(996)
Net loss	$(669)	$(1,016)

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5. Bank Premises and Equipment: Bank Premises and Equipment (Details) (USD $)					12 Months Ended				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 Leaseholds and Leasehold Improvements	Dec. 31, 2012 Leaseholds and Leasehold Improvements	Dec. 31, 2013 Leaseholds and Leasehold Improvements Minimum	Dec. 31, 2013 Leaseholds and Leasehold Improvements Maximum	Dec. 31, 2013 Furniture and Fixtures	Dec. 31, 2012 Furniture and Fixtures	Dec. 31, 2013 Furniture and Fixtures Minimum	Dec. 31, 2013 Furniture and Fixtures Maximum
Property, Plant and Equipment, Gross	$ 1,888,000	$ 1,649,000	$ 781,000	$ 874,000			$ 1,107,000	$ 775,000
Property, Plant and Equipment, Useful Life					10 years	15 years			3 years	7 years
Less accumulated depreciation	(1,239,000)	(1,086,000)
Property, Plant and Equipment, Net, Total	$ 649,159	$ 562,729

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1. Summary of Significant Accounting Policies: Other Real Estate Owned (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Details
Foreclosed real estate	$ 433,000	$ 775,000

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8. Borrowings (Details) (Secured Borrowing Federal Reserve, USD $)	Dec. 31, 2013	Dec. 31, 2012
Secured Borrowing Federal Reserve
Line of Credit Facility, Maximum Borrowing Capacity	$ 500,000
Securities Held as Collateral, at Fair Value	750,000
Line of Credit Facility, Amount Outstanding	$ 0	$ 0

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11. Fair Value Measurements: Schedule of Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Fair Value of Assets and Liabilities

  (in 000’s)

	Level in	2013		2012
	Value	Carrying	Fair	Carrying	Fair
Assets:	Hierarchy	Amount	Value	Amount	Value
Cash and cash equivalents	Level 1	$5,790	$5,790	$10,236	$10,236
Available for sale securities	(1)	9,580	9,580	1,027	1,027
Held to maturity securities	Level 2	-	-	11,895	12,486
Loans held for sale	Level 2	1,646	1,646	-	-
Loans, net of allowance for loan losses	(2)	42,711	43,304	41,502	40,325
Interest receivable	Level 2	256	256	310	310
Liabilities:
Demand deposits	Level 2	28,658	28,658	29,851	29,851
Savings deposits	Level 2	12,988	12,988	14,239	14,239
Time deposits	Level 2	15,463	15,472	16,886	16,902
Interest Payable	Level 2	13	13	30	30

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4. Loans and Allowance For Loan Losses: Bank Loans by Class (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Bank Loans by Class

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.

(In 000's)	Commercial Loans, December 31, 2013
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$743	$220	-	$52	$393	$1,658
SBA loans	-	497	-	40	48	-	585
Asset-based	-	1,897	124	46	-	-	2,067
	250	3,137	344	86	100	393	$4,310
Commercial real estate:
Commercial mortgages	-	15,232	883	-	912	316	17,343
SBA Loans	-	265	171	-	130	-	566
Construction	-	2,456	-	-	-	-	2,456
Religious organizations	-	10,414	931	623	629	-	12,597
	-	28,367	1,985	623	1,671	316	32,962
Total commercial loans	$250	$31,504	$2,329	$709	$1,771	$709	$37,272

	Residential Mortgage and Consumer Loans December 31, 2013
	- Performing/Nonperforming
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$1,061	$115	$1,176
Home equity line of credit	24	-	24
1-4 family residential mortgages	2,467	242	2,709
	3,552	357	3,909
Consumer Other:
Consumer Installment	16	-	16
Student loans	1,366	-	1,366
Other	148	-	148
	1,530	-	1,530
Total consumer loans	$5,082	$357	$5,439
Total loans				$42,711

(In 000's)	Commercial Loans, December 31, 2012
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$104	$15	$220	$480	$393	$1,462
SBA loans	-	27	-	49	49	-	125
Asset-based	-	1,869	125	54	99	-	2,147
	250	2,000	140	323	628	393	3,734
Commercial real estate:
Commercial mortgages	-	12,678	1,322	-	403	317	14,721
SBA Loans	-	621	-	-	-	-	621
Construction	-	2,767	-	-	631	-	3,398
Religious organizations	-	8,183	3,623	162	674	-	12,642
	-	24,349	4,945	162	1,708	317	31,381
Total commercial loans	$250	$26,249	$5,085	$485	$2,336	$710	$33,115

	Residential Mortgage and Consumer Loans December 31, 2012
	- Performing/Nonperforming
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$1,390	$63	$1,453
Home equity line of credit	26	-	26
1-4 family residential mortgages	2,914	226	3,140
	4,330	289	4,619
Consumer Other:
Consumer Installment	30	-	30
Student loans	1,588	-	1,588
Other	150	-	150
	1,768	-	1,768
Total  consumer loans	$6,098	$289	$6,387
Total loans				$41,502

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9. Income Taxes (Details) (USD $)	12 Months Ended
	Dec. 31, 2013
Operating Loss Carryforwards	$ 9,400,000
Minimum
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2020
Maximum
Operating Loss Carryforwards, Expiration Date	Dec. 31, 2034

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6. Other Real Estate Owned: Components of Other Real Estate Owned (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Other real estate owned	$ 433,087	$ 775,407	$ 1,285,000
Commercial Real Estate
Other real estate owned	191,000	206,000
Residential Real Estate
Other real estate owned	$ 242,000	$ 569,000

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12. Consolidated Financial Information-parent Company Only: Condensed Statements of Cash Flows (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Net cash used in operating activities	$ (1,991,878)	$ (337,323)
Cash and cash equivalents at beginning of year	10,236,199	14,497,329
Cash and cash equivalents at end of year	5,789,778	10,236,199
Parent Company
Net loss	(669,000)	(1,016,000)
Equity in net loss of subsidiary	669,000	996,000
Net cash used in operating activities	0	(20,000)
Cash and cash equivalents at beginning of year	0	20,000
Cash and cash equivalents at end of year	$ 0	$ 0

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2. Cash and Due From Bank Balances (Details) (USD $)	Dec. 31, 2013
Details
Reserve balances, due from banks	$ 100,000

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7. Deposits: Schedule of Maturities of Time Deposits (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Details
2014	$ 14,383
2015	677
2016	143
2017	110
2018	107
Thereafter	43
Time Deposits, Total	$ 15,463

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11. Fair Value Measurements: Schedule of Fair Value of Assets and Liabilities (Details) (USD $)	Dec. 31, 2013		Dec. 31, 2012		Dec. 31, 2011
Cash and cash equivalents	$ 5,789,778		$ 10,236,199		$ 14,497,329
Available for sale securities	9,579,979		1,027,293
Held to maturity securities			11,895,037
Held to maturity securities	0		12,485,687
Loans held for sale	1,645,832
Loans, net of allowance for loan losses	42,710,625		41,501,555
Interest receivable	256,262		309,971
Savings deposits	12,988,388		14,239,216
Time deposits	15,463,000
Accrued interest payable	12,722		30,500
Carrying Amount
Available for sale securities	9,580,000	[1]	1,027,000	[1]
Loans, net of allowance for loan losses	42,711,000	[2]	41,502,000	[2]
Carrying Amount | Fair Value, Inputs, Level 1
Cash and cash equivalents	5,790,000		10,236,000
Carrying Amount | Fair Value, Inputs, Level 2
Held to maturity securities	0		11,895,000
Loans held for sale	1,645,832		0
Interest receivable	256,000		310,000
Demand Deposits	28,658,000		29,851,000
Savings deposits	12,988,000		14,239,000
Time deposits	15,463,000		16,886,000
Accrued interest payable	13,000		30,000
Fair Value
Available for sale securities	9,580,000	[1]	1,027,000	[1]
Loans, net of allowance for loan losses	43,304,000	[2]	40,325,000	[2]
Fair Value | Fair Value, Inputs, Level 1
Cash and Cash Equivalents	5,790,000		10,236,000
Fair Value | Fair Value, Inputs, Level 2
Held to maturity securities	0		12,486,000
Loans held for sale	1,645,832		0
Interest receivable	256,000		310,000
Demand Deposits	28,658,000		29,851,000
Savings deposits	12,988,000		14,239,000
Time deposits	15,472,000		16,902,000
Accrued interest payable	$ 13,000		$ 30,000

[1] Level 1 for money market funds; Level 2 for all other securities.

[2] Level 2 for non-impaired loans; Level 3 for impaired loans; Level 3 for $447,000 held at fair value.

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9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Effective rate reconciliation
Tax at statutory rate (34%)	$ (227,425)	$ (345,524)
Nondeductible expenses	6,070	6,507
Increase in valuation allowance	219,186	405,335
Other	2,169	(66,318)
Total tax expense

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12. Consolidated Financial Information-parent Company Only: Condensed Balance Sheet (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Cash and cash equivalents	$ 5,789,778	$ 10,236,199	$ 14,497,329
Total assets	60,751,055	65,615,506
Series A preferred stock	1,368	1,368
Common stock	8,769	8,769
Additional paid-in-capital	14,749,852	14,749,852
Accumulated deficit	(11,224,976)	(10,556,078)
Net unrealized holding gains on securities available for sale	(327,046)	34,157
Total shareholders' equity	3,209,884	4,239,985	5,260,916
Parent Company
Cash and cash equivalents	0	0	20,000
Investment in United Bank of Philadelphia	3,210,000	4,240,000
Total assets	3,210,000	4,240,000
Series A preferred stock	1,000	1,000
Common stock	11,000	11,000
Additional paid-in-capital	14,750,000	14,750,000
Accumulated deficit	(11,225,000)	(10,556,000)
Net unrealized holding gains on securities available for sale	(327,000)	34,000
Total shareholders' equity	$ 3,210,000	$ 4,240,000

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7. Deposits (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Total deposits	$ 57,109,845	$ 60,976,743
City Of Philadelphia
Total deposits	$ 5,000,000

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5. Bank Premises and Equipment (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Depreciation on fixed assets	$ 152,659	$ 220,281
Operating Leases, Rent Expense	$ 507,700	$ 465,800

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3. Investments: Schedule of Available-for-sale Securities Reconciliation (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Available-for-sale Securities Reconciliation

(In 000’s)	2013
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	value
Available-for-sale:
U.S. Government agency securities	$4,097	$-	(295)	$3,802
Government Sponsored Enterprises residential mortgage-backed securities	$5,841	36	(228)	5,649
Investments in money market funds	129	-	-	129
	$10,067	$36	$(523)	$9,580

	2012
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	Value
Available-for-sale:
Government Sponsored Enterprises residential mortgage-backed securities	$847	$51	$-	$898
Investments in money market funds	129	-	-	129
	$976	$51	$-	$1,027

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13. Regulatory Matters and Going Concern: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

	Actual		For capital adequacy purposes		To be well capitalized under prompt corrective action provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
As of December 31, 2013:
Total capital to risk-
weighted assets:
Consolidated	$4,067	9.48%	$3,427	8.00%	N/A
Bank	4,067	9.48%	3,427	8.00%	$4,284	10.00%
Tier I capital to risk-
weighted assets:
Consolidated	3,525	8.22%	1,713	4.00%	N/A
Bank	3,525	8.22%	1,713	4.00%	2,570	6.00%
Tier I capital to average assets:
Consolidated	3,525	5.67%	2,485	4.00%	N/A
Bank	3,525	5.%67	2,485	4.00%	3,107	5.00%

	Actual		For capital adequacy purposes		To be well capitalized under prompt corrective action provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
As of December 31, 2012:
Total capital to risk-
weighted assets:
Consolidated	$4,584	11.16%	$3,287	8.00%	N/A
Bank	4,584	11.16%	3,287	8.00%	$4,109	10.00%
Tier I capital to risk-
weighted assets:
Consolidated	4,070	9.91	1,644	4.00%	N/A
Bank	4,070	9.91%	1,644	4.00%	2,465	6.00%
Tier I capital to average assets:
Consolidated	4,070	6.00%	2,715	4.00%	N/A
Bank	4,070	6.00%	2,715	4.00%	3,394	5.00%

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9. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

	2013	2012
Effective rate reconciliation:
Tax at statutory rate (34%)	$(227,425)	$(345,524)
Nondeductible expenses	6,070	6,507
Increase in valuation allowance	219,186	405,335
Other	2,169	(66,318)
Total tax expense	$-	$-

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6. Other Real Estate Owned: Components of Net Expense of Other Real Estate (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Professional fees	$ 340,054	$ 317,880
Transfer-in write-up	(157,000)	(232,000)
Impairment charges (net)	157,406	232,298
Other Real Estate
Insurance	16,000	24,000
Legal Fees	0	5,000
Cost of Property Repairs and Maintenance	9,000	3,000
Professional fees	0	8,000
Real estate taxes	24,000	99,000
Utilities	5,000	21,000
Transfer-in write-up	0	(43,000)
Impairment charges (net)	157,000	232,000
Total	$ 211,000	$ 349,000

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6. Other Real Estate Owned: Components of Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Components of Other Real Estate Owned

(in 000’s)	2013	2012
Commercial real estate	$191	$206
Residential real estate	242	569
Total	$433	$775

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1. Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2013
Details
Entity Incorporation, Date of Incorporation	Apr. 08, 1993

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4. Loans and Allowance For Loan Losses: Impaired Loans (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Impaired Financing Receivable, Unpaid Principal Balance	$ 1,882	$ 2,344
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,437	1,401
Impaired Financing Receivable, with Related Allowance, Recorded Investment	445	943
Impaired Financing Receivable, Recorded Investment	1,882	2,344
Impaired Financing Receivable, Related Allowance	378	843
Impaired Financing Receivable, Average Recorded Investment	1,865	1,790
Impaired Financing Receivable, Interest Income, Accrual Method	3	39
Commercial And Industrial
Impaired Financing Receivable, Unpaid Principal Balance	492	1,021
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	47	78
Impaired Financing Receivable, with Related Allowance, Recorded Investment	445	943
Impaired Financing Receivable, Recorded Investment	492	1,021
Impaired Financing Receivable, Related Allowance	378	843
Impaired Financing Receivable, Average Recorded Investment	495	689
Impaired Financing Receivable, Interest Income, Accrual Method	1	11
Commercial And Industrial | Commercial
Impaired Financing Receivable, Unpaid Principal Balance	444	873
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	47	78
Impaired Financing Receivable, with Related Allowance, Recorded Investment	397	795
Impaired Financing Receivable, Recorded Investment	444	873
Impaired Financing Receivable, Related Allowance	330	695
Impaired Financing Receivable, Average Recorded Investment	446	541
Impaired Financing Receivable, Interest Income, Accrual Method	0	11
Commercial And Industrial | SBA Loans
Impaired Financing Receivable, Unpaid Principal Balance	48	49
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	48	49
Impaired Financing Receivable, Recorded Investment	48	49
Impaired Financing Receivable, Related Allowance	48	49
Impaired Financing Receivable, Average Recorded Investment	49	29
Impaired Financing Receivable, Interest Income, Accrual Method	1	0
Commercial And Industrial | Asset Based Loans
Impaired Financing Receivable, Unpaid Principal Balance	0	99
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	99
Impaired Financing Receivable, Recorded Investment	0	99
Impaired Financing Receivable, Related Allowance	0	99
Impaired Financing Receivable, Average Recorded Investment	0	119
Impaired Financing Receivable, Interest Income, Accrual Method	0	0
Commercial Real Estate Portfolio Segment
Impaired Financing Receivable, Unpaid Principal Balance	1,390	1,323
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,390	1,323
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, Recorded Investment	1,390	1,323
Impaired Financing Receivable, Related Allowance	0	0
Impaired Financing Receivable, Average Recorded Investment	1,370	1,101
Impaired Financing Receivable, Interest Income, Accrual Method	2	28
Commercial Real Estate Portfolio Segment | SBA Loans
Impaired Financing Receivable, Unpaid Principal Balance	130	0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	130	0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, Recorded Investment	130	0
Impaired Financing Receivable, Related Allowance	0	0
Impaired Financing Receivable, Average Recorded Investment	161	0
Impaired Financing Receivable, Interest Income, Accrual Method	2	0
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Impaired Financing Receivable, Unpaid Principal Balance	630	649
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	630	649
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, Recorded Investment	630	649
Impaired Financing Receivable, Related Allowance	0	0
Impaired Financing Receivable, Average Recorded Investment	579	681
Impaired Financing Receivable, Interest Income, Accrual Method	0	1
Commercial Real Estate Portfolio Segment | Religious Organizations
Impaired Financing Receivable, Unpaid Principal Balance	630	674
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	630	674
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Impaired Financing Receivable, Recorded Investment	630	674
Impaired Financing Receivable, Related Allowance	0	0
Impaired Financing Receivable, Average Recorded Investment	630	420
Impaired Financing Receivable, Interest Income, Accrual Method	$ 0	$ 27

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3. Investments: Schedule of Unrealized Loss on Investments (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities	36	5
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 8,353	$ 999
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(498)	(5)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	8,578	999
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss	(523)	(5)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	225
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(25)
US Government Agencies Debt Securities
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities	15	3
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,576	746
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(270)	(4)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	3,801	746
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss	(295)	(4)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	225	0
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(25)	0
Collateralized Mortgage Backed Securities
Held-to-maturity, Securities in Unrealized Loss Positions, Number of securities	21	2
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	4,777	253
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(228)	(1)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	4,777	253
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss	(228)	(1)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss

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12. Consolidated Financial Information-parent Company Only: Condensed Balance Sheet (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Condensed Balance Sheet

	Condensed Balance Sheets
(Dollars in thousands)	2013	2012
Assets:
Cash and cash equivalents	$-	$-
Investment in United Bank of Philadelphia	3,210	4,240
Total assets	$3,210	$4,240
Shareholders’ equity:
Series A preferred stock	1	1
Common stock	11	11
Additional paid-in capital	14,750	14,750
Accumulated deficit	(11,225)	(10,556)
Net unrealized holding gains on securities available-for-sale	(327)	34
Total shareholders’ equity	$3,210	$4,240

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3. Investments

12 Months Ended

Dec. 31, 2013

Notes

3. Investments

3.  INVESTMENTS

The amortized cost, gross unrealized holding gains and losses, and estimated fair value of the available-for-sale and held-to-maturity investment securities by major security type at December 31, 2013 and 2012 are as follows:

(In 000’s)	2013
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	value
Available-for-sale:
U.S. Government agency securities	$4,097	$-	(295)	$3,802
Government Sponsored Enterprises residential mortgage-backed securities	$5,841	36	(228)	5,649
Investments in money market funds	129	-	-	129
	$10,067	$36	$(523)	$9,580

	2012
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	Value
Available-for-sale:
Government Sponsored Enterprises residential mortgage-backed securities	$847	$51	$-	$898
Investments in money market funds	129	-	-	129
	$976	$51	$-	$1,027

Held-to-maturity:
U.S. Government agency securities	$3,605	$159	$(4)	$3,760
Government Sponsored Enterprises residential mortgage-backed securities	8,290	437	(1)	8,726
	$11,895	$596	$(5)	$12,486

In 2013, $1,250,000 in U.S. Government agencies securities were called. There were no gross losses from these transactions during 2013. In 2012, $7,725,000 in U.S. Government agencies securities were called.  There was $2,571 in gross losses from these transactions during 2012.

In May 2013, the Bank transferred its entire held to maturity portfolio to available for sale. This transfer was made to improve capital ratios and liquidity by allowing for the disposition of securities, if necessary. In May and June 2013, the Bank sold securities with a book value totaling approximately $7.4 million and recognized a gain of approximately $378,000.  Proceeds from the sale were reinvested in replacement securities. No securities were sold during 2012.

The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2013 (in thousands):

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	value	Losses	Value	Losses	value	losses
U.S. Government
agency securities	15	$3,576	$(270)	$225	$(25)	$3,801	$(295	)
Mortgage backed
securities	21	$4,777	$(228)	«R7JPASLX»$]-	$-	$4,777	$(228	)
Total temporarily
impaired investment
securities	36	$8,353	$(498)	$225	$(25)	$8,578	$(523	)

The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2012 (in thousands):

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	value	Losses	Value	Losses	value	Losses
U.S. Government
agency securities	3	$746	$(4)	$-	$-	$746	$(4)
Mortgage backed
securities	2	$253	$(1)	$-	$-	$253	$(1)
Total temporarily
impaired investment
securities	5	$999	$(5)	$-	$-	$999	$(5)

U.S. Government and Agency Securities. Unrealized losses on the Company’s investments in direct obligations of U.S. government agencies were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013 and 2012.

Residential Government Sponsored Enterprise Mortgage-Backed Securities. Unrealized losses on the Company’s investment in government sponsored enterprise mortgage-backed securities were caused by interest rate increases. The Company purchased those investments at a discount relative to their face amount, and the contractual cash flows of those investments are guaranteed by an agency of the U.S. government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost bases of the Company’s investments. Because the decline in fair value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2013 and 2012.

The Company has a process in place to identify debt securities that could potentially have a credit impairment that is other than temporary.  This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts and cash flow projections as indicators of credit issues.  On a quarterly basis, we review all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. The Company considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other than temporary. Relevant facts and circumstances considered include: (1) the extent and length of time the fair value has been below cost; (2) the reasons for the decline in value; (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (4) for fixed maturity securities, our intent to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.

Maturities of investment securities classified as available-for-sale at December 31, 2013 were as follows. Expected maturities may differ from contractual maturities because the underlying mortgages supporting mortgage backed securities may be prepaid without any penalties. Consequently, mortgage-backed securities are not presented by maturity category.

(In 000’s)

	Amortized	Fair
	Cost	Value
Available-for-sale:
Due in one year	$-	$-
Due after one year through five years	-	-
Due after five years through ten years	4,097	3,802
Government-sponsored enterprises      residential mortgage-backed securities	5,841	5,649
Total debt securities	9,938	9,451
Investments in money market funds	129	129
	$10,067	$9,580

As of December 31, 2013 and 2012, investment securities with a carrying value of $7,210,399 and $10,041,655, respectively, were pledged as collateral to secure public deposits and contingent borrowing at the Discount Window.

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3. Investments: Investments Classified by Contractual Maturity Date (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Amortized Cost, due in one year
Fair Value, due in one year
Amortized Cost, due after one year through five years
Fair Value, due after one year through five years
Amortized Cost, due after five years through ten years	4,097,000
Fair Value, due after five years through ten years	3,802,000
Available-for-sale Securities, Amortized Cost Basis	10,067,000	976,000
Available-for-sale, at fair value	9,579,979	1,027,293
Available-for-sale Debt Securities, Amortized Cost Basis	9,938,000
Available-for-sale Securities, Debt Securities	9,451,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Available-for-sale Securities, Amortized Cost Basis	5,841,000	847,000
Available-for-sale, at fair value	5,649,000	898,000
Money Market Funds
Available-for-sale Securities, Amortized Cost Basis	129,000	129,000
Available-for-sale, at fair value	$ 129,000	$ 129,000

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10. Financial Instrument Commitments: Schedule of Financial Instruments Owned and Pledged as Collateral (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Financial Instruments Owned and Pledged as Collateral

	2013	2012
Commitments to extend credit	$10,278,928	$9,484,309
Outstanding letters of credit	1,050,832	1,173,374

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4. Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Accounts, Notes, Loans and Financing Receivable

	December 31,	December 31,
(In 000's)	2013	2012
Commercial and industrial:
Commercial	$1,658	$1,462
SBA loans	585	125
Asset-based	2,067	2,147
Total commercial and industrial	4,310	3,734
Commercial real estate:
Commercial mortgages	17,343	14,720
SBA loans	566	621
Construction	2,456	3,398
Religious organizations	12,597	12,642
Total commercial real estate	32,962	31,381
Home equity loans
Home equity lines of credit	1,176	1,453
1-4 family residential mortgages	24	26
Home equity loans	2,709	3,140
Total consumer real estate	3,909	4,619
Total real estate	36,871	36,000
Consumer and other:
Consumer installment	16	30
Student loans	1,366	1,588
Other	148	150
Total consumer and other	1,530	1,768
Loans, net	$42,711	$41,502

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3. Investments: Investments Classified by Contractual Maturity Date (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Investments Classified by Contractual Maturity Date

	Amortized	Fair
	Cost	Value
Available-for-sale:
Due in one year	$-	$-
Due after one year through five years	-	-
Due after five years through ten years	4,097	3,802
Government-sponsored enterprises      residential mortgage-backed securities	5,841	5,649
Total debt securities	9,938	9,451
Investments in money market funds	129	129
	$10,067	$9,580

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1. Summary of Significant Accounting Policies: Comprehensive Loss: Comprehensive Income (Loss) (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Unrealized holding loss arising during period, before tax amount	$ (539,109)	$ (6,990)
Unrealized holding loss arising during period, tax benefit	177,906	2,307
Unrealized holding loss arising during period, net of tax amount	(361,203)	(4,684)
Less: reclassification adjustment for gains (losses) realized in net loss, before tax amount
Less: reclassification adjustment for gains (losses) realized in net loss, tax benefit
Less: reclassification adjustment for gains (losses) realized in net loss, net of tax amount
Other comprehensive loss, net, before tax amount	(539,109)	(6,990)
Other comprehensive loss, net, tax benefit	177,906	2,307
Other comprehensive loss, net, net after tax amount	$ (361,203)	$ (4,684)

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11. Fair Value Measurements: Schedule of Fair Value of Assets on a Recurring Basis (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Fair Value of Assets on a Recurring Basis

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government agency securities	$3,802	$-	$3,802	-
Government Sponsored Enterprises residential mortgage-backed securities	5,649	-	$5,649	-
Money Market Funds	129	129	-	-
Total	$9,580	$129	$9,541	-
Loans held for sale	$1,646	$-	$1,646	-
Loans held at fair value	$447	$-	$-	$447

When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs.  These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)
Assets measured at fair value	Fair value	Principal valuation techniques	Significant observable inputs	Range of inputs
Loans held at fair value:	$447	Discounted cash flow	Constant prepayment rate	7.74% to 7.985%
			Weighted average discount rate	9.106% to 9.111%
			Weighted average life	4.04 yrs to 4.08 yrs
			Average projected default rate	18%

Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period.

The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value for the year ended December 31, 2013:

(in 000’s)	Loans held at fair value
Balance at December 31, 2012	$-
Origination of loans	491
Principal repayments	-
Change in fair value of financial instruments	(45)
Balance at December 31, 2013	$447

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
Government Sponsored Enterprises residential mortgage-backed securities	$898	$-	$898	-
Money Market Funds	129	129	-	-
Total	$1,027	$129	$898

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4. Loans and Allowance For Loan Losses: Schedule of Activity in Related Party Loans (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Activity in Related Party Loans

	2013	2012
Balance outstanding at December 31,	$1,572,026	$1,702,648
Principal additions	65,800	30,000
Disaffiliations	(718,007)	-
Principal reductions	(60,958	(160,623)
Balance outstanding at December 31,	$858,861	$1,572,026

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4. Loans and Allowance For Loan Losses: Past Due Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Past Due Financing Receivables

(In 000's)		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$444	$444	$1,214	$1,658
SBA loans	-	-	130	130	455	585
Asset-based	-	-	-	-	2,067	2,067
Total Commercial and industrial	-	-	574	574	3,736	4,310
Commercial real estate:
Commercial mortgages	22	442	630	1,094	16,249	17,343
SBA loans	184	-	-	184	382	566
Construction	-	-	-	-	2,456	2,456
Religious organizations	-	-	629	629	11,968	12,597
Total Commercial real estate	206	442	1,259	1,907	31,055	32,962
Consumer real estate:
Home equity loans	209	147	115	471	705	1,176
Home equity lines of credit	-	-	-	-	24	24
1-4 family residential mortgages	125	-	242	367	2,342	2,709
Total consumer real estate	334	147	357	838	3,071	3,909
Total real estate	540	589	1,616	2,745	34,126	36,871
Consumer and other:
Consumer installment	-	-	-	-	16	16
Student loans	87	141	-	228	1,138	1,366
Other	5	-	-	5	143	148
Total consumer and other	92	141	-	233	1,297	1,530
Total loans	$632	$730	$2,190	$3,552	$39,159	$42,711

An age analysis of past due loans, segregated by class of loans, as of December 31, 2012 follows:

(In 000's)		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$15	$-	$873	888	$574	$1,462
SBA loans	-	-	-	-	125	125
Asset-based	83	-	99	182	1,965	2,147
Total Commercial and industrial	98	-	972	1,070	2,664	3,734
Commercial real estate:
Commercial mortgages	306	-	649	955	13,765	14,720
SBA loans	-	-	-	-	621	621
Construction	-	-	-	-	3,398	3,398
Religious organizations	-	-	674	674	11,968	12,642
Total Commercial real estate	306	-	1,323	1,629	29,752	31,381
Consumer real estate:
Home equity loans	274	44	63	381	1,072	1,453
Home equity lines of credit	-	26	-	26	-	26
1-4 family residential mortgages	69	-	226	295	2,845	3,140
Total consumer real estate	343	70	289	702	3,917	4,619
Total real estate	649	70	1,612	2,331	33,669	36,000
Consumer and other:
Consumer installment	-	-	-	-	30	30
Student loans	87	141	-	228	1,360	1,588
Other	5	-	-	5	145	150
Total consumer and other	92	141	-	233	1,535	1,768
Total loans	$839	$211	$2,584	$3,634	$37,867	$41,502

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2. Cash and Due From Bank Balances

12 Months Ended

Dec. 31, 2013

Notes

2. Cash and Due From Bank Balances

2.  CASH AND DUE FROM BANK BALANCES

The Bank maintains various deposit accounts with other banks to meet normal fund transaction requirements and to compensate other banks for certain correspondent services.  The withdrawal or usage restrictions of these balances did not have a significant impact on the operations of the Bank as of December 31, 2013.  Reserve balances were $100,000 as of December 31, 2013 and 2012.

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4. Loans and Allowance For Loan Losses: Impaired Loans (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Impaired Loans

(In 000’s)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total		Average	Interest recognized
	Principal	With No	With	Recorded	Related	Recorded	on impaired
	Balance	Allowance	Allowance	Investment	Allowance	Investment	loans
Commercial and industrial:
Commercial	$444	$47	$397	$444	$330	$446	$-
SBA  loans	48	-	48	48	48	49	1
Asset-based	-	-	-	-	-	-	-
Total Commercial and industrial	492	47	445	492	378	495	1
Commercial real estate:
Commercial mortgages	630	630	-	630	-	579	-
SBA  Loans	130	130	-	130	-	161	2
Religious Organizations	630	630	-	630	-	630	-
Total Commercial real estate	1,390	1,390	-	1,390	-	1,370	2
Total Loans	$1,882	$1,437	$445	$1,882	$378	$1,865	$3

Year-end 2012 impaired loans are set forth in the following table.  

(In 000’s)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total		Average	Interest recognized
	Principal	With No	With	Recorded	Related	Recorded	on impaired
	Balance	Allowance	Allowance	Investment	Allowance	Investment	loans
Commercial and industrial:
Commercial	$873	$78	$795	$873	$695	$541	$11
SBA  loans	49	-	49	49	49	29	-
Asset-based	99	-	99	99	99	119	-
Total Commercial and industrial	1,021	78	943	1,021	843	689	11
Commercial real estate:
Commercial mortgages	649	649	-	649	-	681	1
SBA  Loans	-	-	-	-	-	-	-
Religious Organizations	674	674	-	674	-	420	27
Total Commercial real estate	1,323	1,323	-	1,323	-	1,101	28
Total Loans	$2,344	$1,401	$943	$2,344	$843	$1,790	$39

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11. Fair Value Measurements: Schedule of Fair Value of Assets on a Recurring Basis (Details) (USD $)									12 Months Ended																				12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013 US Government Agencies Debt Securities	Dec. 31, 2013 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2012 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2013 Money Market Funds	Dec. 31, 2012 Money Market Funds	Dec. 31, 2013 Loans Held for Sale	Dec. 31, 2013 Loans Held at Fair Value	Dec. 31, 2013 Fair Value, Inputs, Level 1	Dec. 31, 2012 Fair Value, Inputs, Level 1	Dec. 31, 2013 Fair Value, Inputs, Level 1 US Government Agencies Debt Securities	Dec. 31, 2013 Fair Value, Inputs, Level 1 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2012 Fair Value, Inputs, Level 1 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2013 Fair Value, Inputs, Level 1 Money Market Funds	Dec. 31, 2012 Fair Value, Inputs, Level 1 Money Market Funds	Dec. 31, 2013 Fair Value, Inputs, Level 1 Loans Held for Sale	Dec. 31, 2013 Fair Value, Inputs, Level 1 Loans Held at Fair Value	Dec. 31, 2013 Fair Value, Inputs, Level 2	Dec. 31, 2012 Fair Value, Inputs, Level 2	Dec. 31, 2013 Fair Value, Inputs, Level 2 US Government Agencies Debt Securities	Dec. 31, 2013 Fair Value, Inputs, Level 2 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2012 Fair Value, Inputs, Level 2 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2013 Fair Value, Inputs, Level 2 Money Market Funds	Dec. 31, 2012 Fair Value, Inputs, Level 2 Money Market Funds	Dec. 31, 2013 Fair Value, Inputs, Level 2 Loans Held for Sale	Dec. 31, 2013 Fair Value, Inputs, Level 3	Dec. 31, 2012 Fair Value, Inputs, Level 3	Dec. 31, 2013 Fair Value, Inputs, Level 3 Fair Value, Measurements, Recurring	Dec. 31, 2013 Fair Value, Inputs, Level 3 Fair Value, Measurements, Recurring Minimum	Dec. 31, 2013 Fair Value, Inputs, Level 3 Fair Value, Measurements, Recurring Maximum	Dec. 31, 2013 Fair Value, Inputs, Level 3 US Government Agencies Debt Securities	Dec. 31, 2013 Fair Value, Inputs, Level 3 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2012 Fair Value, Inputs, Level 3 Mortgage-backed Securities, Issued by US Government Sponsored Enterprises	Dec. 31, 2013 Fair Value, Inputs, Level 3 Money Market Funds	Dec. 31, 2012 Fair Value, Inputs, Level 3 Money Market Funds	Dec. 31, 2013 Fair Value, Inputs, Level 3 Loans Held for Sale	Dec. 31, 2013 Fair Value, Inputs, Level 3 Loans Held at Fair Value
Assets, Fair Value Disclosure, Recurring	$ 9,580,000	$ 1,027	$ 3,802,000	$ 5,649,000	$ 898,000	$ 129,000	$ 129,000	$ 1,646,000	$ 447,000	$ 129,000	$ 129,000				$ 129,000	$ 129,000			$ 9,541,000	$ 898,000	$ 3,802,000	$ 5,649,000	$ 898,000			$ 1,646,000												$ 447,000
Fair Value Measurements, Valuation Techniques																													Discounted cash flow
Fair Value Inputs, Prepayment Rate																														7.74%	7.99%
Fair Value Inputs, Discount Rate																														9.11%	9.11%
Fair Value Assumptions, Expected Term																														4 years 14 days	4 years 29 days
Fair Value Inputs, Probability of Default																													18.00%
Balance, Starting									0
Origination of loans									491,000
Principal repayments									0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Change in fair value of financial instruments									(45,000)
Balance, Ending									$ 447,000

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7. Deposits: Schedule of Maturities of Time Deposits (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Maturities of Time Deposits

(In 000’s)
	2014	$14,383
	2015	677
	2016	143
	2017	110
	2018	107
	Thereafter	43
		$15,463

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1. Summary of Significant Accounting Policies: Intangible Assets (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 1999
Details
Acquired Bank Deposits Prior to Acquisition			$ 31,500,000
Amortization of core deposit intangible	$ 135,733	$ 178,078

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5. Bank Premises and Equipment: Schedule of Future minimum lease payments under operating leases (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Details
2014	$ 454
2015	446
2016	460
2017	397
2018	406
Thereafter	1,631
Total minimum lease payments	$ 3,794

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CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
Assets:
Cash and due from banks	$ 2,340,002	$ 2,363,166
Interest-bearing deposits with banks	306,776	306,033
Federal funds sold	3,143,000	7,567,000
Cash and cash equivalents	5,789,778	10,236,199
Investment securities:
Available-for-sale, at fair value	9,579,979	1,027,293
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012)		11,895,037
Loans held for sale, at fair value	1,645,832
Loans, net of unearned discounts and deferred fees ($446,523 at fair value at December 31, 2013)	42,710,625	41,501,555
Less allowance for loan losses	(839,133)	(1,203,942)
Net loans	41,871,492	40,297,613
Bank premises and equipment, net	649,159	562,729
Accrued interest receivable	256,262	309,971
Other real estate owned	433,087	775,407
Intangible assets	0	135,733
Prepaid expenses and other assets	525,466	375,524
Total assets	60,751,055	65,615,506
Liabilities:
Demand deposits, noninterest-bearing	14,526,988	14,324,970
Demand deposits, interest-bearing	14,131,452	15,526,344
Savings deposits	12,988,388	14,239,216
Time deposits, under $100,000	6,683,499	7,243,593
Time deposits, $100,000 and over	8,779,518	9,642,620
Total deposits	57,109,845	60,976,743
Accrued interest payable	12,722	30,500
Accrued expenses and other liabilities	418,604	368,278
Total liabilities	57,541,171	61,375,521
Commitments and Contingencies (Notes 5, 10, and 14)
Shareholders' equity:
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 136,842 issued and outstanding	1,368	1,368
Common stock, $0.01 par value; 2,000,000 shares authorized; 876,921 issued and outstanding	8,769	8,769
Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding	1,917	1,917
Additional paid-in-capital	14,749,852	14,749,852
Accumulated deficit	(11,224,976)	(10,556,078)
Accumulated other comprehensive (loss) income (net unrealized (loss) gain on available-for-sale securities)	(327,046)	34,157
Total shareholders' equity	3,209,884	4,239,985
Total liabilities and shareholders' equity	$ 60,751,055	$ 65,615,506

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11. Fair Value Measurements: Schedule of Fair Value of Assets on a Nonrecurring Basis (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Fair Value of Assets on a Nonrecurring Basis

The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2013, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2013.

Carrying Value at December 31, 2013:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during the year ended December 31, 2013
Impaired Loans	$1,304	-	-	$1,304	(59)
Other real estate owned	433	-	-	433	(157)

The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2012, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2012.

Carrying Value at December 31, 2012:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during the year ended December 31, 2012
Impaired Loans	$1,501	-	-	$1,501	$(843)
Other real estate owned	775	-	-	775	(232)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities:
Net loss	$ (668,898)	$ (1,016,247)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for loan losses	75,137	453,000
Net loss on sale of other real estate	7,528	8,273
Gain on sale of loans		(69,163)
Gain on sale of securities	(378,248)
Gain on sale of bank premises		(526,990)
Amortization of premiums on investments	58,418	117,544
Amortization of core deposit intangible	135,733	178,078
Depreciation on fixed assets	152,659	220,281
Write-down of other real estate owned	157,406	232,298
SBA loans originated for sale	(1,491,873)
Net change in fair value of financial instruments	(153,959)
Decrease in accrued interest receivable and other assets	81,671	122,372
(Decrease) increase in accrued interest payable and other liabilities	32,548	(56,769)
Net cash used in operating activities	(1,991,878)	(337,323)
Cash flows from investing activities:
Purchase of available-for-sale investment securities	(7,699,811)
Purchase of held-to-maturity investment securities		(5,110,337)
Proceeds from maturity and principal reductions of available-for-sale investment securities	3,091,040	244,186
Proceeds from maturity and principal reductions of held-to-maturity investment securities		10,311,762
Proceeds from sale of available-for sale investment securities	7,731,846
Proceeds from sale of other real estate owned	177,386	425,528
Net increase in loans	(1,649,017)	(841,001)
Proceeds from sale of loans		637,621
Proceeds from sale of bank premises		874,943
Purchase of bank premises and equipment	(239,089)	(142,793)
Net cash provided by investing activities	1,412,355	6,399,909
Cash flows from financing activities:
Net decrease in deposits	(3,866,898)	(10,323,715)
Net cash used in financing activities	(3,866,898)	(10,323,715)
Net decrease in cash and cash equivalents	(4,446,421)	(4,261,130)
Cash and cash equivalents at beginning of year	10,236,199	14,497,329
Cash and cash equivalents at end of year	5,789,778	10,236,199
Supplemental disclosure of cash flow information:
Cash paid during the year for interest	101,380	166,726
Noncash transfer of loans to other real estate owned		157,116
Noncash transfer of investment securities from held-to-maturity to available-for-sale	$ 11,895,037

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3. Investments: Held-to-maturity Securities (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2013
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 11,895,000
Held-to-maturity Securities, Unrecognized Holding Gain	596,000
Held-to-maturity Securities, Unrecognized Holding Loss	(5,000)
Held-to-maturity, fair value	12,485,687	0
US Government Agencies Debt Securities
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	3,605,000
Held-to-maturity Securities, Unrecognized Holding Gain	159,000
Held-to-maturity Securities, Unrecognized Holding Loss	(4,000)
Held-to-maturity, fair value	3,760,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	8,290,000
Held-to-maturity Securities, Unrecognized Holding Gain	437,000
Held-to-maturity Securities, Unrecognized Holding Loss	(1,000)
Held-to-maturity, fair value	$ 8,726,000

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5. Bank Premises and Equipment: Bank Premises and Equipment (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Bank Premises and Equipment

(In 000’s)	Estimated
	useful life	2013	2012
Buildings and leasehold improvements	10-15 years	$781	$874
Furniture and equipment	3- 7 years	1,107	775
		$1,888	$1,649
Less accumulated depreciation		$(1,239)	$(1,086)
		649	563

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4. Loans and Allowance For Loan Losses: Schedule of Activity in Related Party Loans (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Balance outstanding, starting	$ 1,572,026	$ 1,702,648
Principal additions	65,800	30,000
Disafilliations	(718,007)	0
Principal Reductions	(60,958)	(160,623)
Balance outstanding, ending	$ 858,861	$ 1,572,026

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1. Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2013

Policies

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank.  All significant intercompany transactions and balances have been eliminated.

Management's Use of Estimates

Management’s Use of Estimates

The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.  Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities and consideration of impairment of other intangible assets.

Marketing and Advertising

Marketing and Advertising

Marketing and advertising costs are expensed as incurred.

Statement of Cash Flows

Statement of Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis.  Changes in loans made to and deposits received from customers are reported on a net basis.

Securities

Securities

Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.”  These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive income, net of the related income tax effect.  Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date.

If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer.  For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation.  Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value.  Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income.  In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery.  In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations.  If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss.  In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events.  If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected cash flows.  The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive income.  No investment securities held by the Bank as of December 31, 2013 and 2012 were subjected to a write-down due to credit related other-than-temporary impairment.  Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities.  Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations.

Transfers of Financial Assets

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered.  A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal  to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans Held For Sale

Loans Held for Sale

From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market.  These loans are classified as held-for-sale and carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. For the year ended December 31, 2013, the Bank recorded a net change in fair value of financial instruments of totaling approximately $154,000 related to the guaranteed portion of two SBA loans totaling approximately $1,492,000.

Loans

Loans

The Bank has both the positive intent and ability to hold the majority of its loans to maturity.  These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount.  It is the Bank’s policy to discontinue the accrual of interest income when a default of principal or interest exists for a period of 90 days except when, in management’s judgment, the loan is well collateralized and in the process of collection. Interest received on nonaccrual loans is either applied against principal or reported as interest income according to management’s judgment as to collectability of principal.  When interest accruals are discontinued, unpaid accrued interest previously credited to income is reversed and the loan is classified as impaired.

Loans Held At Fair Value

Loans Held at Fair Value

From time to time, the Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market.  Management has elected to carry these loans at fair value.  Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Non-accrual and Past Due Loans

Non-accrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due.  The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more.  If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Unearned discount is amortized over the weighted average maturity of the related mortgage loan portfolio.  Loan origination and commitment fees and certain direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loan’s yield.  The Bank is amortizing these amounts over the contractual life of the loan.

For purchased loans, the discount remaining after the loan loss allocation is being amortized over the remaining life of the purchased loans using the interest method.

Allowance For Loan Losses

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses.  Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.  The Bank does not allocate reserves for unfunded commitments to fund lines of credit.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Bank will identify and assess loans that may be impaired through any of the following processes:

· During regularly scheduled meetings of the Asset Quality Committee

· During regular reviews of the delinquency report

· During the course of routine account servicing, annual review, or credit file update

· Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable LTV ratio

Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Bank Premises and Equipment

Bank Premises and Equipment

Bank premises and equipment are stated at cost less accumulated depreciation.  Depreciation is computed on the straight-line method over the estimated useful lives of the assets.  Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets.

Income Taxes

Income Taxes

The liability method is used in accounting for income taxes.  Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50  percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations.

The Bank does not have an accrual for uncertain tax positions as of December 31, 2013 or 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.

Loss Per Share ("eps")

Loss Per Share (“EPS”)

Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period.  Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

Off-balance-sheet Financial Instruments

Off-Balance-Sheet Financial Instruments

In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit.  Such financial instruments are recorded in the financial statements when they become payable.

Intangible Assets

Intangible Assets

On September 24, 1999, the Bank acquired four branches from First Union Corporation with deposits totaling $31.5 million.   As a result of the acquisition, the Bank recorded a core deposit intangible of $2,449,488.    The core deposit intangible was amortized over 14 years.

	2013	2012
Core Deposit Premium (cost)	$2,449,488	$2,449,488
Less accumulated amortization	(2,449,488)	(2,313,755)
	$-	$135,733

Amortization of the intangible totaled approximately $136,000 and $178,000 for the years ended December 31, 2013 and 2012, respectively, and is fully amortized at December 31, 2013.  Intangible assets are reviewed for possible impairment when events or changed circumstances may affect the underlying basis of the net asset.  Such reviews include an analysis of current results and take into consideration the discounted value of projected operating cash flows. No impairment has been recognized.

Other Real Estate Owned

Other Real Estate Owned

Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis.  After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell.  Revenue and expenses from operations and changes in valuation allowance are charged to operations.  The Bank had approximately $433,000 and $775,000 in foreclosed real estate as of December 31, 2013 and 2012, respectively.

Segments

Segments

The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other.  For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk.  This situation is also similar for consumer and residential mortgage lending.  Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit.

Reclassifications

Reclassifications

Certain reclassifications have been made to the prior years’ financial statements to conform to the 2013 presentation, with no impact on earnings or shareholders’ equity.

Comprehensive Loss

Comprehensive Loss

Comprehensive loss includes net loss as well as certain other items that result in a change to equity during the period. The components of other comprehensive loss are as follows:

	December 31, 2013
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$(539,109)	$177,906	$(361,203)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(539,109)	$177,906	$(361,203)
	December 31, 2012
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities
Unrealized holding loss arising during period	$(6,990)	$2,307	$(4,684)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(6,990)	$2,307	$(4,684)

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In February 2013, the FASB issued an update (ASU 2013-02 – Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The disclosures required by the adoption of this guidance in 2013 are included in the notes of these financial statements.

ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in ASU 2013-11 include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.  The amendments in this Update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist.  The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013.  The Company is currently evaluating the impact of these amendments.

ASU 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan though completion of a deed in lieu of foreclosure or through a similar legal agreement.  The amendments require interim and annual disclosure of both the amount of the foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of this amendment.

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5. Bank Premises and Equipment: Schedule of Future minimum lease payments under operating leases (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Future minimum lease payments under operating leases

 (In 000’s)

Year ending December 31,	Operating leases
2014	$454
2015	446
2016	460
2017	397
2018	406
Thereafter	1,631
Total minimum lease payments	$3,794

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1. Summary of Significant Accounting Policies: Comprehensive Loss: Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Comprehensive Income (Loss)

	December 31, 2013
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$(539,109)	$177,906	$(361,203)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(539,109)	$177,906	$(361,203)
	December 31, 2012
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities
Unrealized holding loss arising during period	$(6,990)	$2,307	$(4,684)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(6,990)	$2,307	$(4,684)

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4. Loans and Allowance For Loan Losses: Bank Loans by Class (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Commercial real estate	$ 32,962,000	$ 31,381,000
Consumer real estate	3,909,000	4,619,000
Consumer loans other	1,530,000	1,768,000
Total loans	42,711,000	41,502,000
Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	566,000	621,000
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	17,343,000	14,720,000
Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,456,000	3,398,000
Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	12,597,000	12,642,000
Good Excellent
Loans and Leases Receivable, Gross, Commercial	250,000	250,000
Good Excellent | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	250,000	250,000
Good Excellent | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	250,000	250,000
Good Excellent | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	0	0
Good Excellent | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	0	0
Good Excellent | Commercial Real Estate Portfolio Segment
Commercial real estate	0	0
Good Excellent | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Good Excellent | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	0	0
Good Excellent | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Good Excellent | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	0	0
Satisfactory
Loans and Leases Receivable, Gross, Commercial	31,504,000	26,249,000
Satisfactory | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	3,137,000	2,000,000
Satisfactory | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	743,000	104,000
Satisfactory | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	497,000	27,000
Satisfactory | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	1,897,000	1,869,000
Satisfactory | Commercial Real Estate Portfolio Segment
Commercial real estate	28,367,000	24,349,000
Satisfactory | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	265,000	621,000
Satisfactory | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	15,232,000	12,678,000
Satisfactory | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,456,000	2,767,000
Satisfactory | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	10,414,000	8,183,000
Pass
Loans and Leases Receivable, Gross, Commercial	2,329,000	5,085,000
Pass | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	344,000	140,000
Pass | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	220,000	15,000
Pass | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	0	0
Pass | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	124,000	125,000
Pass | Commercial Real Estate Portfolio Segment
Commercial real estate	1,985,000	4,945,000
Pass | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	171,000	0
Pass | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	883,000	1,322,000
Pass | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Pass | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	931,000	3,623,000
Special Mention
Loans and Leases Receivable, Gross, Commercial	709,000	485,000
Special Mention | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	86,000	323,000
Special Mention | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	0	220,000
Special Mention | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	40,000	49,000
Special Mention | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	46,000	54,000
Special Mention | Commercial Real Estate Portfolio Segment
Commercial real estate	623,000	162,000
Special Mention | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Special Mention | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	0	0
Special Mention | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Special Mention | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	623,000	162,000
Substandard
Loans and Leases Receivable, Gross, Commercial	1,771,000	2,336,000
Substandard | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	100,000	628,000
Substandard | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	52,000	480,000
Substandard | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	48,000	49,000
Substandard | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	0	99,000
Substandard | Commercial Real Estate Portfolio Segment
Commercial real estate	1,671,000	1,708,000
Substandard | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	130,000	0
Substandard | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	912,000	403,000
Substandard | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	631,000
Substandard | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	629,000	674,000
Doubtful
Loans and Leases Receivable, Gross, Commercial	709,000	710,000
Doubtful | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	393,000	393,000
Doubtful | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	393,000	393,000
Doubtful | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	0	0
Doubtful | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	0	0
Doubtful | Commercial Real Estate Portfolio Segment
Commercial real estate	316,000	317,000
Doubtful | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	0	0
Doubtful | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	316,000	317,000
Doubtful | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	0	0
Doubtful | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	0	0
Total
Loans and Leases Receivable, Gross, Commercial	37,272,000	33,115,000
Consumer real estate	3,909,000	4,619,000
Consumer loans other	1,530,000	1,768,000
Total consumer loans	5,439,000	6,387,000
Total | Commercial And Industrial
Loans and Leases Receivable, Gross, Commercial	4,310,000	3,734,000
Total | Commercial And Industrial | Commercial
Loans and Leases Receivable, Gross, Commercial	1,658,000	1,462,000
Total | Commercial And Industrial | SBA Loans
Loans and Leases Receivable, Gross, Commercial	585,000	125,000
Total | Commercial And Industrial | Asset Based
Loans and Leases Receivable, Gross, Commercial	2,067,000	2,147,000
Total | Commercial Real Estate Portfolio Segment
Commercial real estate	32,962,000	31,381,000
Total | Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	566,000	621,000
Total | Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	17,343,000	14,721,000
Total | Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,456,000	3,398,000
Total | Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	12,597,000	12,642,000
Total | Consumer Real Estate | Home Equity
Consumer real estate	1,176,000	1,453,000
Total | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	24,000	26,000
Total | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	2,709,000	3,140,000
Total | Consumer And Other Loans | Consumer Installment
Consumer loans other	16,000	30,000
Total | Consumer And Other Loans | Student Loans
Consumer loans other	1,366,000	1,588,000
Total | Consumer And Other Loans | Other
Consumer loans other	148,000	150,000
Performing
Consumer real estate	3,552,000	4,330,000
Consumer loans other	1,530,000	1,768,000
Total consumer loans	5,082,000	6,098,000
Performing | Consumer Real Estate | Home Equity
Consumer real estate	1,061,000	1,390,000
Performing | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	24,000	26,000
Performing | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	2,467,000	2,914,000
Performing | Consumer And Other Loans | Consumer Installment
Consumer loans other	16,000	30,000
Performing | Consumer And Other Loans | Student Loans
Consumer loans other	1,366,000	1,588,000
Performing | Consumer And Other Loans | Other
Consumer loans other	148,000	150,000
Nonperforming
Consumer real estate	357,000	289,000
Consumer loans other	0	0
Total consumer loans	357,000	289,000
Nonperforming | Consumer Real Estate | Home Equity
Consumer real estate	115,000	63,000
Nonperforming | Consumer Real Estate | Home Equity Line Of Credit
Consumer real estate	0	0
Nonperforming | Consumer Real Estate | 1-4 Family Residential Mortgages
Consumer real estate	242,000	226,000
Nonperforming | Consumer And Other Loans | Consumer Installment
Consumer loans other	0	0
Nonperforming | Consumer And Other Loans | Student Loans
Consumer loans other	0	0
Nonperforming | Consumer And Other Loans | Other
Consumer loans other	$ 0	$ 0

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1. Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2013

Notes

1. Summary of Significant Accounting Policies

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

United Bancshares, Inc. (“the Company”) is the holding company for United Bank of Philadelphia (the “Bank”).  The Company was incorporated under the laws of the Commonwealth of Pennsylvania on April 8, 1993 and provides financial services through the Bank.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, the Bank.  All significant intercompany transactions and balances have been eliminated.

Management’s Use of Estimates

The preparation of the financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.  Material estimates which are particularly susceptible to significant change in the near term relate to the fair value of investment securities, the determination of the allowance for loan losses, the fair value of loans held at fair value, valuation allowance for deferred tax assets, the carrying value of other real estate owned, the determination of other than temporary impairment for securities and consideration of impairment of other intangible assets.

Marketing and Advertising

Marketing and advertising costs are expensed as incurred.

Statement of Cash Flows

For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits with banks that mature within 90 days and federal funds sold on an overnight basis.  Changes in loans made to and deposits received from customers are reported on a net basis.

Securities

Bonds, notes, and debentures for which the Company has both the positive intent and ability to hold to maturity are classified as held-to-maturity and carried at cost, adjusted for premiums and discounts that are recognized in interest income using the interest method over the period to maturity. Investment securities that would be held for indefinite periods of time but not necessarily to maturity, including securities that would be used as part of the Bank’s asset/liability management strategy and possibly sold in response to changes in interest rates, prepayments and similar factors are classified as “Available for Sale.”  These securities are carried at fair value, with any temporary unrealized gains or losses reported as a separate component of other comprehensive income, net of the related income tax effect.  Gains and losses on the sale of such securities are accounted for on the specific identification basis in the statements of operations on the trade date.

If transfers between the available-for-sale and held-to-maturity portfolios occur, they are accounted for at fair value and unrealized holding gains and losses are accounted for at the date of transfer.  For securities transferred to available-for-sale from held-to-maturity, unrealized gains and losses as of the date of the transfer are recognized in accumulated other comprehensive loss as a separate component of shareholders’ equity. For securities transferred into the held-to-maturity portfolio from available-for-sale, unrealized gains and losses as of the date of the transfer continue to be reported in accumulated other comprehensive loss, and are amortized over the remaining life of the security as an adjustment to its yield, consistent with amortization of the premium or accretion of the discount.

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation.  Declines in the fair value of individual debt securities below their cost that are deemed to be other than temporary result in write-downs of the individual securities to their fair value.  Debt securities that are deemed to be other-than-temporarily impaired are reflected in earnings as realized losses to the extent impairment is related to credit losses. The amount of the impairment for debt securities related to other factors is recognized in other comprehensive income.  In evaluating whether impairment is temporary or other-than-temporary, management first considers whether the Bank intends to sell the security or it is more-likely-than-not that the Bank will be required to sell the security prior to recovery.  In these circumstances, the loss is determined to be other-than-temporary and the difference between the security’s fair value and its amortized cost is reflected as a loss in the statement of operations.  If management does not intend to sell the security and likely will not be required to sell the security prior to forecasted recovery, management evaluates whether it expects to recover the entire amortized cost of the debt security or if there is a credit loss.  In evaluating whether there is a credit loss, management considers various qualitative factors which include (1) the length of time and the extent to which the fair value has been less than cost, (2) the reasons for the decline in the fair value, and (3) the financial position and access to capital of the issuer, including the current and future impact of any specific events.  If, based on an analysis of these factors, management concludes that there is a credit loss, then management calculates the expected cash flows and records a loss in earnings equal to the difference between the amortized cost of the debt security and the expected cash flows.  The portion of the decline in fair value that is due to factors other than credit loss is recognized in other comprehensive income.  No investment securities held by the Bank as of December 31, 2013 and 2012 were subjected to a write-down due to credit related other-than-temporary impairment.  Interest income from securities adjusted for the amortization of premiums and accretion of discounts is recognized in interest income using the interest method over the contractual lives of the related securities.  Realized gains and losses, determined using the amortized cost value of the specific securities sold, are included in noninterest income in the statement of operations.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales when all the components meet the definition of a participating interest and when control over the assets has been surrendered.  A participating interest generally represents (1) a proportionate (pro rata) ownership interest in an entire financial assets, (2) a relationship where from the date of transfer all cash flows received from the entire financial asset are divided proportionately among the participating interest holders in an amount equal  to their share of ownership, (3) the priority of cash flows has certain characteristics, including no reduction in priority, subordination of interest, or recourse to the transferor other than standard representation or warranties, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to pledge or exchange the entire financial asset.  Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Loans Held for Sale

From time to time, the Bank originates SBA loans for which the guaranteed portion is intended to be sold within a short period of time in the secondary market.  These loans are classified as held-for-sale and carried at estimated fair value based on a loan-by-loan valuation using actual market bids in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. For the year ended December 31, 2013, the Bank recorded a net change in fair value of financial instruments of totaling approximately $154,000 related to the guaranteed portion of two SBA loans totaling approximately $1,492,000.

Loans

The Bank has both the positive intent and ability to hold the majority of its loans to maturity.  These loans are stated at the amount of unpaid principal, reduced by net unearned discount and an allowance for loan losses.  Interest income on loans is recognized as earned based on contractual interest rates applied to daily principal amounts outstanding and accretion of discount.  It is the Bank’s policy to discontinue the accrual of interest income when a default of principal or interest exists for a period of 90 days except when, in management’s judgment, the loan is well collateralized and in the process of collection. Interest received on nonaccrual loans is either applied against principal or reported as interest income according to management’s judgment as to collectability of principal.  When interest accruals are discontinued, unpaid accrued interest previously credited to income is reversed and the loan is classified as impaired.

Loans Held at Fair Value

From time to time, the Bank originates SBA loans for which the un-guaranteed portion is retained after the guaranteed portion is sold in the secondary market.  Management has elected to carry these loans at fair value.  Fair value of these loans is estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Non-accrual and Past Due Loans

Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due.  The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more.  If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Unearned discount is amortized over the weighted average maturity of the related mortgage loan portfolio.  Loan origination and commitment fees and certain direct loan origination costs are deferred, and the net amount is amortized as an adjustment of the related loan’s yield.  The Bank is amortizing these amounts over the contractual life of the loan.

For purchased loans, the discount remaining after the loan loss allocation is being amortized over the remaining life of the purchased loans using the interest method.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses.  Loans that are determined to be uncollectible are charged against the allowance account, and subsequent recoveries, if any, are credited to the allowance.  When evaluating the adequacy of the allowance, an assessment of the loan portfolio will typically include changes in the composition and volume of the loan portfolio, overall portfolio quality and past loss experience, review of specific problem loans, current economic conditions which may affect borrowers’ ability to repay, and other factors which may warrant current recognition.  Such periodic assessments may, in management’s judgment, require the Bank to recognize additions or reductions to the allowance.

Various regulatory agencies periodically review the adequacy of the Bank’s allowance for loan losses as an integral part of their examination process.  Such agencies may require the Bank to recognize additions or reductions to the allowance based on their evaluation of information available to them at the time of their examination.  It is reasonably possible that the above factors may change significantly and, therefore, affects management’s determination of the allowance for loan losses in the near term.

The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired.  For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers non-impaired loans and is based on historical charge-off experience, other qualitative factors, and adjustments made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.  The Bank does not allocate reserves for unfunded commitments to fund lines of credit.

A loan is considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.  The Bank will identify and assess loans that may be impaired through any of the following processes:

· During regularly scheduled meetings of the Asset Quality Committee

· During regular reviews of the delinquency report

· During the course of routine account servicing, annual review, or credit file update

· Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable LTV ratio

Impairment is measured on a loan by loan basis for commercial loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent.

Large groups of smaller, homogeneous loans, including consumer installment and home equity loans, 1-4 family residential mortgages, and student loans are evaluated collectively for impairment. Accordingly, the Bank does not separately identify individual consumer and residential loans for impairment disclosures.

Bank Premises and Equipment

Bank premises and equipment are stated at cost less accumulated depreciation.  Depreciation is computed on the straight-line method over the estimated useful lives of the assets.  Amortization of leasehold improvements is computed over the shorter of the related lease term or the useful life of the assets.

Income Taxes

The liability method is used in accounting for income taxes.  Deferred tax assets and liabilities are determined based on differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.  Realization of deferred tax assets is dependent on generating sufficient taxable income in the future.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that ultimately would be sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more-likely-than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. The evaluation of a tax position taken is considered by itself and not offset or aggregated with other positions. Tax positions that meet the more-likely-than not recognition threshold are measured as the largest amount of tax benefit that is more than 50  percent likely of being realized upon settlement with the applicable taxing authority. The portion of benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  It is the Bank’s policy to recognize interest and penalties related to unrecognized tax liabilities within income tax expense in the statement of operations.

The Bank does not have an accrual for uncertain tax positions as of December 31, 2013 or 2012, as deductions taken and benefits accrued are based on widely understood administrative practices and procedures and are based on clear and unambiguous tax law.

Loss Per Share (“EPS”)

Basic EPS excludes dilution and is computed by dividing income (loss) available to common shareholders by the weighted average common shares outstanding during the period.  Diluted EPS takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock.

Off-Balance-Sheet Financial Instruments

In the ordinary course of business, the Bank has entered into off-balance-sheet financial instruments consisting of commitments to extend credit and letters of credit.  Such financial instruments are recorded in the financial statements when they become payable.

Intangible Assets

On September 24, 1999, the Bank acquired four branches from First Union Corporation with deposits totaling $31.5 million.   As a result of the acquisition, the Bank recorded a core deposit intangible of $2,449,488.    The core deposit intangible was amortized over 14 years.

	2013	2012
Core Deposit Premium (cost)	$2,449,488	$2,449,488
Less accumulated amortization	(2,449,488)	(2,313,755)
	$-	$135,733

Amortization of the intangible totaled approximately $136,000 and $178,000 for the years ended December 31, 2013 and 2012, respectively, and is fully amortized at December 31, 2013.  Intangible assets are reviewed for possible impairment when events or changed circumstances may affect the underlying basis of the net asset.  Such reviews include an analysis of current results and take into consideration the discounted value of projected operating cash flows. No impairment has been recognized.

Other Real Estate Owned

Real estate properties acquired through, or in lieu of, loan foreclosure are to be sold and are initially recorded at fair value, net of estimated cost to sell, at the date of foreclosure, establishing a new cost basis.  After foreclosure, valuations are periodically performed by management, and the real estate is carried at the lower of carrying amount or fair value less the cost to sell.  Revenue and expenses from operations and changes in valuation allowance are charged to operations.  The Bank had approximately $433,000 and $775,000 in foreclosed real estate as of December 31, 2013 and 2012, respectively.

Segments

The Company has one reportable segment, “Community Banking.” All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the other.  For example, commercial lending is dependent upon the ability of the Bank to fund it with retail deposits and other borrowings and to manage interest rate and credit risk.  This situation is also similar for consumer and residential mortgage lending.  Accordingly, all significant operating decisions are based upon analysis of the Company as one operating segment or unit.

Reclassifications

Certain reclassifications have been made to the prior years’ financial statements to conform to the 2013 presentation, with no impact on earnings or shareholders’ equity.

Comprehensive Loss

Comprehensive loss includes net loss as well as certain other items that result in a change to equity during the period. The components of other comprehensive loss are as follows:

	December 31, 2013
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$(539,109)	$177,906	$(361,203)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(539,109)	$177,906	$(361,203)
	December 31, 2012
	Before tax	Tax	Net of tax
	amount	benefit	Amount
Unrealized loss on securities
Unrealized holding loss arising during period	$(6,990)	$2,307	$(4,684)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$(6,990)	$2,307	$(4,684)

Recent Accounting Pronouncements

In February 2013, the FASB issued an update (ASU 2013-02 – Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income) which requires entities to disclose, for items reclassified out of accumulated other comprehensive income (“AOCI”) and into net income in their entirety, the effect of the reclassification on each affected net income line item and, for AOCI reclassification items that are not reclassified in their entirety into net income, a cross reference to other required U.S. GAAP disclosures. The guidance is effective for annual and interim reporting periods beginning after December 15, 2012; early adoption is allowed. The disclosures required by the adoption of this guidance in 2013 are included in the notes of these financial statements.

ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in ASU 2013-11 include explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.  The amendments in this Update are expected to reduce diversity in practice by providing guidance on the presentation of unrecognized tax benefits and will better reflect the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses, or tax credit carryforwards exist.  The amendments in this Update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013.  The Company is currently evaluating the impact of these amendments.

ASU 2014-04, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure. ASU 2014-04 clarifies that an in substance repossession or foreclosure occurs and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to residential real estate property upon completion of a foreclosure or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan though completion of a deed in lieu of foreclosure or through a similar legal agreement.  The amendments require interim and annual disclosure of both the amount of the foreclosed residential real estate property held by the creditor and the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. The Company is currently evaluating the impact of this amendment.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Held-to-maturity, fair value	$ 0	$ 12,485,687
Loans, fair value	$ 446,523	$ 0
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	136,842	136,842
Preferred stock, shares outstanding	136,842	136,842
Preferred stock, noncumulative dividend rate	6.00%	6.00%
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	876,921	876,921
Common stock, shares outstanding	876,921	876,921
Class B Non-voting common stock
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	250,000	250,000
Common stock, shares issued	191,667	191,667
Common stock, shares outstanding	191,667	191,667

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11. Fair Value Measurements

12 Months Ended

Dec. 31, 2013

Notes

11. Fair Value Measurements

11.  FAIR VALUE MEASUREMENTS

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of FASB ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Bank's various assets and liabilities. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with this guidance, the Company groups its assets and liabilities carried or disclosed at fair value in three levels as follows:

Level 1

o Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

Level 2 Inputs

o Quoted prices for similar assets or liabilities in active markets.

o Quoted prices for identical or similar assets or liabilities in markets that are not active.

o Inputs other than quoted prices that are observable, either directly or indirectly, for the term of the asset or liability (e.g., interest rates, yield curves, credit risks, prepayment speeds or volatilities) or “market corroborated inputs.”

Level 3 Inputs

o Prices or valuation techniques that require inputs that are both unobservable (i.e. supported by little or no market activity) and that are significant to the fair value of the assets or liabilities.

o    These assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

An asset’s or liability’s financial categorization within the valuation hierarchy is based on the lowest level of input that is significant to the fair value measurement.

Fair Value on a Recurring Basis

Securities Available for Sale:  Where quoted prices are available in an active market, securities would be classified within Level 1 of the valuation hierarchy. Level 1 securities include money market funds. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Level 2 securities include U.S. agency securities and mortgage backed agency securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy.

Loans Held for Sale. Fair values are estimated by using actual quoted market bids on a loan by loan basis.

Loans Held at Fair Value. Fair values are estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, discount rates, default and voluntary prepayments as well as assumptions for losses and recoveries.

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below.

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
U.S. Government agency securities	$3,802	$-	$3,802	-
Government Sponsored Enterprises residential mortgage-backed securities	5,649	-	$5,649	-
Money Market Funds	129	129	-	-
Total	$9,580	$129	$9,541	-
Loans held for sale	$1,646	$-	$1,646	-
Loans held at fair value	$447	$-	$-	$447

When estimating the fair value of our Level 3 financial instruments, management uses various observable and unobservable inputs.  These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)
Assets measured at fair value	Fair value	Principal valuation techniques	Significant observable inputs	Range of inputs
Loans held at fair value:	$447	Discounted cash flow	Constant prepayment rate	7.74% to 7.985%
			Weighted average discount rate	9.106% to 9.111%
			Weighted average life	4.04 yrs to 4.08 yrs
			Average projected default rate	18%

Due to the inherent uncertainty of determining the fair value of assets that do not have a readily available market value, fair value as determined by management may fluctuate from period to period.

The following table summarizes additional information about assets measured at fair value on a recurring basis for which level 3 inputs were utilized to determine fair value for the year ended December 31, 2013:

(in 000’s)	Loans held at fair value
Balance at December 31, 2012	$-
Origination of loans	491
Principal repayments	-
Change in fair value of financial instruments	(45)
Balance at December 31, 2013	$447

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets/Liabilities Measured at Fair Value at December 31, 2012	Quoted Prices in Active Markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)
Investment securities available-for-sale:
Government Sponsored Enterprises residential mortgage-backed securities	$898	$-	$898	-
Money Market Funds	129	129	-	-
Total	$1,027	$129	$898

As of December 31, 2013 and 2012, the fair value of the Bank’s available-for-sale securities portfolio was approximately $9,580,000 and $1,027,000, respectively.  All the residential mortgage-backed securities were issued or guaranteed by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”).  The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States.  The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar instruments and model-based valuation techniques for which the significant assumptions can be corroborated by market data.  There were no transfers between Level 1 and Level 2 assets during the years ended December 31, 2013 or 2012.

Fair Value on a Nonrecurring Basis

Certain assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Impaired Loans (net of specific reserves):  The carrying value of certain impaired loans is derived in accordance with FASB ASC Topic 310, “Receivables”.  Impairment is determined based on the loan’s observable market price or the fair value of the collateral if the loan is collateral dependent.  Appraised and reported values for collateral dependent

Other real estate owned:  Other real estate owned (“OREO”) consists of properties acquired as a result of foreclosures and deeds in-lieu-of foreclosure. Properties are classified as OREO and are reported at the lower of cost or fair value less cost to sell.  The valuation allowance for OREO at December 31, 2013 and 2012 was approximately $157,000 and $233,000, respectively.

The following table presents the assets and liabilities carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2013, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2013.

Carrying Value at December 31, 2013:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during the year ended December 31, 2013
Impaired Loans	$1,304	-	-	$1,304	(59)
Other real estate owned	433	-	-	433	(157)

The following table presents the assets carried on the consolidated balance sheets by level within the fair value hierarchy as of December 31, 2012, for which a nonrecurring change in fair value has been recorded during the year ended December 31, 2012.

Carrying Value at December 31, 2012:

(in 000’s)	Total	Quoted Prices in Active markets for Identical Assets (Level 1)	Significant Other Observable Inputs (Level 2)	Significant Unobservable Inputs (Level 3)	Total fair value gain (loss) during the year ended December 31, 2012
Impaired Loans	$1,501	-	-	$1,501	$(843)
Other real estate owned	775	-	-	775	(232)

Fair Value of Financial Instruments

FASB ASC Topic 825 “Disclosure About Fair Value of Financial Instruments”, requires the disclosure of the fair value of financial instruments.  The methodology for estimating the fair value of financial assets that are measured on a recurring or non recurring basis are discussed above.

The following methods and assumptions were used by the Bank in estimating its fair value disclosures for other financial instruments:

Cash and cash equivalents, accrued interest receivable, and accrued interest payable: The carrying amounts reported in the balance sheet approximates fair value.

Investment securities: Fair values for investment securities available for sale are as described above.  Investment securities held to maturity are determined in a similar manner.

Loans Held for Sale. Fair values for loans held for sale are estimated by using actual quoted market bids on a loan by loan basis.

Loans (other than impaired loans): The fair value of loans was estimated using a discounted cash flow analysis, which considered estimated pre­payments, amortizations, and non performance risk.  Prepayments and discount rates were based on current marketplace estimates and rates.

Loans Held at Fair Value. The fair value of loans was estimated based on the present value of future cashflows for each asset based on their unique characteristics, market-based assumptions for prepayment speeds, default and voluntary prepayments as well as loan specific assumptions for losses and recoveries.

Deposit liabilities: The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings, and certain types of money market accounts) are equal to the amounts payable on demand at the reporting date (e.g., their carrying amounts).  The carrying amounts for variable-rate, fixed-term money market accounts and certificates of deposit approximate the fair values at the reporting date.  Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation.  The Treasury Yield Curve was utilized for discounting cash flows as it approximates the average marketplace certificate of deposit rates across the relevant maturity spectrum.

Commitments to extend credit: The carrying amounts for commitments to extend credit approximate fair value as such commitments are not substantially different from the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparts.  Such amounts were not significant.

The fair value of financial instruments at year-end are presented below:

  (in 000’s)

	Level in	2013		2012
	Value	Carrying	Fair	Carrying	Fair
Assets:	Hierarchy	Amount	Value	Amount	Value
Cash and cash equivalents	Level 1	$5,790	$5,790	$10,236	$10,236
Available for sale securities	(1)	9,580	9,580	1,027	1,027
Held to maturity securities	Level 2	-	-	11,895	12,486
Loans held for sale	Level 2	1,646	1,646	-	-
Loans, net of allowance for loan losses	(2)	42,711	43,304	41,502	40,325
Interest receivable	Level 2	256	256	310	310
Liabilities:
Demand deposits	Level 2	28,658	28,658	29,851	29,851
Savings deposits	Level 2	12,988	12,988	14,239	14,239
Time deposits	Level 2	15,463	15,472	16,886	16,902
Interest Payable	Level 2	13	13	30	30

(1) Level 1 for money market funds; Level 2 for all other securities.

(2) Level 2 for non-impaired loans; Level 3 for impaired loans; Level 3 for $447,000 held at fair value.

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15. Earnings Per Share Computation (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Common stock equivalents	0	0

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13. Regulatory Matters and Going Concern (Details)	12 Months Ended
	Dec. 31, 2013
Details
Description of Regulatory Requirements, Prompt Corrective Action	· develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; · formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its current regulatory examination;

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Feb. 24, 2014
Document and Entity Information:
Entity Registrant Name	UNITED BANCSHARES INC /PA
Document Type	10-K
Document Period End Date	Dec. 31, 2013
Amendment Flag	false
Entity Central Index Key	0000944792
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		1,068,588
Entity Public Float	$ 0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Entity Incorporation, Date of Incorporation	Apr. 08, 1993

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12. Consolidated Financial Information-parent Company Only

12 Months Ended

Dec. 31, 2013

Notes

12. Consolidated Financial Information-parent Company Only

12.  CONSOLIDATED FINANCIAL INFORMATION—PARENT COMPANY ONLY

	Condensed Balance Sheets
(Dollars in thousands)	2013	2012
Assets:
Cash and cash equivalents	$-	$-
Investment in United Bank of Philadelphia	3,210	4,240
Total assets	$3,210	$4,240
Shareholders’ equity:
Series A preferred stock	1	1
Common stock	11	11
Additional paid-in capital	14,750	14,750
Accumulated deficit	(11,225)	(10,556)
Net unrealized holding gains on securities available-for-sale	(327)	34
Total shareholders’ equity	$3,210	$4,240

Condensed Statements of Operations

Years ended December 31,
(Dollars in thousands)	2013	2012
Other Expenses	$-	$(20)
Equity in net loss of subsidiary	(669)	(996)
Net loss	$(669)	$(1,016)

Condensed Statements of Cash Flows
Years ended December 31,
(Dollars in thousands)	2013	2012
Cash flows from operating activities:
Net loss	$(669)	$(1,016)
Adjustments:
Equity in net loss of subsidiary	669	996
Net cash used in operating activities	-	(20)
Cash and cash equivalents at beginning of year	-	20
Cash and cash equivalents at end of year	$-	$-

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9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets (liabilities):
Provision for loan losses	$ 191,387	$ 333,853
Unrealized (loss) gain on investment securities	161,082	(16,824)
Depreciation	31,199	94,393
Net operating carryforwards	3,198,011	2,897,243
Other, net	258,692	134,614
Valuation allowance for deferred tax assets	(3,679,289)	(3,460,103)
Net deferred tax assets (liabilities)	$ 161,082	$ (16,824)

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13. Regulatory Matters and Going Concern: Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Consolidated Entities
Total capital to risk-weighted assets:
Actual Amount	$ 4,067	$ 4,584
Actual Ratio	9.48%	11.16%
For capital adequacy purposes, amount	3,427	3,287
For capital adequacy purposes, ratio	8.00%	8.00%
To be well capitalized under prompt corrective action provisions, amount
Tier I capital to risk-weighted assets:
To be well capitalized under prompt corrective action provisions, ratio	3,525	4,070
Actual Ratio	8.22%	9.91%
For capital adequacy purposes, amount	1,713	1,644
For capital adequacy purposes, ratio	4.00%	4.00%
To be well capitalized under prompt corrective action provisions, amount
Tier I capital to average assets:
To be well capitalized under prompt corrective action provisions, ratio	3,525	4,070
Actual Ratio	5.67%	6.00%
For capital adequacy purposes, amount	2,485	2,715
For capital adequacy purposes, ratio	4.00%	4.00%
To be well capitalized under prompt corrective action provisions, amount
Bank
Total capital to risk-weighted assets:
Actual Amount	4,067	4,584
Actual Ratio	9.48%	11.16%
For capital adequacy purposes, amount	3,427	3,287
For capital adequacy purposes, ratio	8.00%	8.00%
To be well capitalized under prompt corrective action provisions, amount	4,284	4,109
To be well capitalized under prompt corrective action provisions, ratio	10.00%	10.00%
Tier I capital to risk-weighted assets:
To be well capitalized under prompt corrective action provisions, ratio	3,525	4,070
Actual Ratio	8.22%	9.91%
For capital adequacy purposes, amount	1,713	1,644
For capital adequacy purposes, ratio	4.00%	4.00%
To be well capitalized under prompt corrective action provisions, amount	2,570	2,465
To be well capitalized under prompt corrective action provisions, ratio	6.00%	6.00%
Tier I capital to average assets:
To be well capitalized under prompt corrective action provisions, ratio	3,525	4,070
Actual Ratio	5.00%	6.00%
For capital adequacy purposes, amount	2,485	2,715
For capital adequacy purposes, ratio	4.00%	4.00%
To be well capitalized under prompt corrective action provisions, amount	$ 3,107	$ 3,394
To be well capitalized under prompt corrective action provisions, ratio	5.00%	5.00%

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Interest income:
Interest and fees on loans	$ 2,609,683	$ 2,627,890
Interest on investment securities	274,005	439,166
Interest on federal funds sold	14,111	17,074
Interest on time deposits with other banks	752	642
Total interest income	2,898,551	3,084,772
Interest expense:
Interest on time deposits	48,573	83,300
Interest on demand deposits	28,319	48,447
Interest on savings deposits	6,710	7,118
Total interest expense	83,602	138,865
Net interest income	2,814,949	2,945,907
Provision for loan losses	75,137	453,000
Net interest income after provision for loan losses	2,739,812	2,492,907
Noninterest income:
Customer service fees	403,349	400,162
ATM fee income	259,751	318,503
Loan syndication fee income	153,300	145,000
Net loss on sale of other real estate	(7,528)	(8,273)
Gain on sale of bank premises		526,990
Gain on sale of investment securities	378,248
Net change in fair value of financial instruments	153,959
Gain on sale of loans		69,163
Other income	65,998	73,194
Total noninterest income	1,407,077	1,524,739
Noninterest expense:
Salaries, wages and employee benefits	1,569,087	1,554,497
Occupancy and equipment	991,560	1,066,031
Office operations and supplies	295,876	304,946
Marketing and public relations	102,441	73,448
Professional services	340,054	317,880
Data processing	451,833	472,737
Loan and collection costs	103,382	107,072
Other real estate owned, net	211,764	348,908
Deposit insurance assessments	136,652	114,786
Other operating	613,138	673,588
Total noninterest expense	4,815,787	5,033,893
Net loss before income taxes	(668,898)	(1,016,247)
Provision for income taxes
Net loss	(668,898)	(1,016,247)
Net loss per common share-basic and diluted	$ (0.63)	$ (0.95)
Weighted average number of common shares	1,068,588	1,068,588
Comprehensive Loss
Net loss	(668,898)	(1,016,247)
Unrealized losses on available for sale securities	(361,203)	(4,684)
Total comprehensive loss	$ (1,030,101)	$ (1,020,931)

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6. Other Real Estate Owned

12 Months Ended

Dec. 31, 2013

Notes

6. Other Real Estate Owned

6.  OTHER REAL ESTATE OWNED

Other real estate owned (“OREO”) consists of properties acquired as a result of deed in-lieu-of foreclosure and foreclosures. Properties or other assets are classified as OREO and are reported at the lower of carrying value or fair value, less estimated costs to sell. Costs relating to the development or improvement of assets are capitalized, and costs relating to holding the property are charged to expense.

The following schedule reflects the components of other real estate owned at December 31, 2013 and 2012:

(in 000’s)	2013	2012
Commercial real estate	$191	$206
Residential real estate	242	569
Total	$433	$775

A summary of the change in other real estate owned follows:

(in 000’s)	Year Ended December 31, 2013	Year Ended December 31, 2012
Beginning Balance	$775	$1,285
Additions, transfers from loans	-	156
Sales	(185)	(434)
	590	1,007
Less: write-downs	(157)	(232)
Ending Balance	$433	$775

The following table details the components of net expense of other real estate owned.

(in 000’s)	Year ended December 31, 2013	Year ended December 31, 2012
Insurance	$16	$24
Legal fees	-	5
Maintenance	9	3
Professional fees	-	8
Real estate taxes	24	99
Utilities	5	21
Transfer-in write-up	-	(43)
Impairment charges	157	232
Total	$211	$349

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5. Bank Premises and Equipment

12 Months Ended

Dec. 31, 2013

Notes

5. Bank Premises and Equipment

5.  BANK PREMISES AND EQUIPMENT

The major classes of bank premises and equipment and the total accumulated depreciation are as follows at December 31:

(In 000’s)	Estimated
	useful life	2013	2012
Buildings and leasehold improvements	10-15 years	$781	$874
Furniture and equipment	3- 7 years	1,107	775
		$1,888	$1,649
Less accumulated depreciation		$(1,239)	$(1,086)
		649	563

Depreciation expense on fixed assets totaled $152,659 and $220,281 for the years ended December 31, 2013 and 2012, respectively.

The Bank leases other facilities and other equipment under non-cancelable operating lease agreements. The amount of expense for operating leases for the years ended December 31, 2013 and 2012 was $507,700 and $465,800, respectively. Future minimum lease payments under operating leases are as follows:

 (In 000’s)

Year ending December 31,	Operating leases
2014	$454
2015	446
2016	460
2017	397
2018	406
Thereafter	1,631
Total minimum lease payments	$3,794

In April 2013, the Bank renegotiated and extended its lease for the corporate and retail space located at the Graham Building for 10 years.

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1. Summary of Significant Accounting Policies: Intangible Assets: Schedule of Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Intangible Assets

	2013	2012
Core Deposit Premium (cost)	$2,449,488	$2,449,488
Less accumulated amortization	(2,449,488)	(2,313,755)
	$-	$135,733

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13. Regulatory Matters and Going Concern

12 Months Ended

Dec. 31, 2013

Notes

13. Regulatory Matters and Going Concern

13.  REGULATORY MATTERS AND GOING CONCERN

The Bank engages in the commercial banking business, with a particular focus on serving African Americans, Hispanics and women, and is subject to substantial competition from financial institutions in the Bank’s service area.  As a bank holding company and a banking subsidiary, the Company and the Bank, respectively, are subject to regulation by the FDIC and the Pennsylvania Department of Banking (“PADOB”) and are required to maintain capital requirements established by those regulators. Effective January 1, 2010, the FDIC became the Bank’s primary regulator after it voluntarily surrendered its Federal Reserve Membership.

Prompt corrective actions may be taken by those regulators against banks that do not meet minimum capital requirements.  Prompt corrective actions range from restriction or prohibition of certain activities to the appointment of a receiver or conservator of an institution’s net assets.  Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary, actions by regulators that if undertaken, could have a direct material effect on the Bank’s financial statements.  Under capital adequacy guidelines that involve quantitative measures of the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices, the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the table below) of total Tier I capital (as defined in the regulations) for capital adequacy purposes to risk-weighted assets (as defined).

Although the bank meets the framework to be considered “well capitalized” as setforth in tables below, the most recent notification as of September 30, 2013, from the FDIC and PADOB categorized the Bank as “adequately capitalized” under the regulatory framework for prompt and corrective action due to the Consent Orders described below.  The Bank’s growth and other operating factors such as the need for additional pro­visions to the allowance for loans losses may have an adverse effect on its capital ratios.

The Company and the Bank’s actual capital amounts and ratios are as follows:

	Actual		For capital adequacy purposes		To be well capitalized under prompt corrective action provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
As of December 31, 2013:
Total capital to risk-
weighted assets:
Consolidated	$4,067	9.48%	$3,427	8.00%	N/A
Bank	4,067	9.48%	3,427	8.00%	$4,284	10.00%
Tier I capital to risk-
weighted assets:
Consolidated	3,525	8.22%	1,713	4.00%	N/A
Bank	3,525	8.22%	1,713	4.00%	2,570	6.00%
Tier I capital to average assets:
Consolidated	3,525	5.67%	2,485	4.00%	N/A
Bank	3,525	5.%67	2,485	4.00%	3,107	5.00%

	Actual		For capital adequacy purposes		To be well capitalized under prompt corrective action provisions
	Amount	Ratio	Amount	Ratio	Amount	Ratio
As of December 31, 2012:
Total capital to risk-
weighted assets:
Consolidated	$4,584	11.16%	$3,287	8.00%	N/A
Bank	4,584	11.16%	3,287	8.00%	$4,109	10.00%
Tier I capital to risk-
weighted assets:
Consolidated	4,070	9.91	1,644	4.00%	N/A
Bank	4,070	9.91%	1,644	4.00%	2,465	6.00%
Tier I capital to average assets:
Consolidated	4,070	6.00%	2,715	4.00%	N/A
Bank	4,070	6.00%	2,715	4.00%	3,394	5.00%

On January 31, 2012, the Bank entered into stipulations consenting to the issuance of Consent Orders with the Federal Deposit Insurance Corporation (“FDIC”) and the Pennsylvania Department of Banking (“Department”).  The material terms of the Consent Orders are identical.  The Consent Orders require the Bank to:

· increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management;

· have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers;

· retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan;

· formulate and implement written profit and budget plans for each year during which the orders are in effect;

· develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;

· develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period;

· formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its current regulatory examination;

· eliminate all assets classified as “Loss” at its current regulatory examination;

· revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination;

· develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;

· develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes;

· revise its liquidity and funds management policy and update and review the policy annually;

· refrain from accepting any brokered deposits;

· refrain from paying cash dividends without prior approval of the FDIC and the Department;

· establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and

· prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.

The Consent Orders will remain in effect until modified or terminated by the FDIC and the Department and do not restrict the Bank from transacting its normal banking business.  The Bank will continue to serve its customers in all areas including making loans, establishing lines of credit, accepting deposits and processing banking transactions.  Customer deposits remain fully insured to the highest limits set by the FDIC.  The FDIC and the Department did not impose or recommend any monetary penalties in connection with the Consent Orders.

As of December 31, 2013, the Bank’s tier one leverage capital ratio was 5.67% and its total risk based capital ratio was 9.48%. These ratios are below the levels required by the Consent Orders.  Management is in the process of addressing all matters outlined in the Consent Orders.  The Bank has increased the participation of the Bank’s Board of Directors in the Bank’s affairs and has established an oversight committee of the Board of Directors of the Bank with the responsibility to insure the Bank’s compliance with the Consent Orders.  Management has developed the written plans and policies required by the Consent Orders.  Management believes that the Bank will continue to endeavor to comply with the terms and conditions of the Orders and will continue to operate as an independent financial institution for the foreseeable future.

The uncertainty surrounding the Bank’s ability to comply with the Consent Orders gives rise to substantial doubt about the Bank’s ability to continue as a going concern.  The financial statements do not include any adjustments that might be necessary if the Bank is unable to continue as a going concern.

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11. Fair Value Measurements (Details) (Other Real Estate Owned, USD $)	Dec. 31, 2013	Dec. 31, 2012
Other Real Estate Owned
Real Estate Owned, Valuation Allowance	$ 157,000	$ 233,000

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9. Income Taxes

12 Months Ended

Dec. 31, 2013

Notes

9. Income Taxes

9. INCOME TAXES

At December 31, 2013, the Bank has net operating loss carry forwards of approximately $9,400,000 for income tax purposes that expire in 2020 through 2034.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes.  For financial reporting purposes, a valuation allowance of $3,679,289 and $3,460,103 as of December 31, 2013 and 2012, respectively, has been recognized to offset the net deferred tax assets related to the cumulative temporary differences and the tax loss carry forwards.  Significant components of the Bank’s net deferred tax assets are as follows:

	December 31,
	2013	2012
Deferred tax assets(liabilities):
Provision for loan losses	$191,387	$333,853
Unrealized (loss) gain on investment securities	161,082	(16,824)
Depreciation	31,199	94,393
Net operating carryforwards	3,198,011	2,897,243
Other, net	258,692	134,614
Valuation allowance for deferred tax assets	(3,679,289)	(3,460,103)
Net deferred tax assets (liabilities)	$161,082	$(16,824)

	2013	2012
Effective rate reconciliation:
Tax at statutory rate (34%)	$(227,425)	$(345,524)
Nondeductible expenses	6,070	6,507
Increase in valuation allowance	219,186	405,335
Other	2,169	(66,318)
Total tax expense	$-	$-

At December 31, 2013, no valuation allowance was recorded for the deferred tax asset related to the unrealized holding losses on securities available-for-sale because the Company had the intent and the ability to hold these securities until recovery of the unrealized losses, which may be at maturity.  The Company will continue to monitor its deferred tax position and may make changes to the valuation allowance recorded as circumstances change.

Management has evaluated the Bank’s tax positions and concluded that the Bank has taken no uncertain tax positions that require adjustment to the financial statements. With few exceptions, the Bank is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for the years before 2010.

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3. Investments (Details) (USD $)	2 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2013	Dec. 31, 2012
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012)			$ 11,895,037
Held-to-maturity Securities, Gross Gains (Losses), Derivatives		0	2,571
Held-to-maturity Securities, Sold Security, at Carrying Value	7,400,000
Held-to-maturity Securities, Sold Security, Realized Gain (Loss)	378,000
Held-to-maturity Securities Pledged as Collateral		7,210,399	10,041,655
US Government Agencies Debt Securities
Held-to-maturity, at amortized cost (fair value of $12,485,687 at December 31, 2012)		$ 1,250,000	$ 7,725,000

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7. Deposits

12 Months Ended

Dec. 31, 2013

Notes

7. Deposits

7.  DEPOSITS

At December 31, 2013, the scheduled maturities of time deposits (certificates of deposit) are as follows:

(In 000’s)
	2014	$14,383
	2015	677
	2016	143
	2017	110
	2018	107
	Thereafter	43
		$15,463

At December 31, 2013, the Company has a significant deposit relationship with the City of Philadelphia for which deposits totaled approximately $5 million.

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8. Borrowings

12 Months Ended

Dec. 31, 2013

Notes

8. Borrowings

8.   BORROWINGS

At December 31, 2013, the Bank has the ability to borrow up to $500,000 on a fully secured basis at the Discount Window of the Federal Reserve Bank for which the Bank currently has $750,000 in securities.  As of December 31, 2013 and 2012, the Bank had no borrowings outstanding.

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10. Financial Instrument Commitments

12 Months Ended

Dec. 31, 2013

Notes

10. Financial Instrument Commitments

10.  FINANCIAL INSTRUMENT COMMITMENTS

The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers.  These financial instruments include commitments to extend credit and letters of credit, which are conditional commitments issued by the Bank to guarantee the performance of an obligation of a customer to a third party.  Both arrangements have credit risk essentially the same as that involved in extending loans and are subject to the Bank’s normal credit policies.  Collateral may be obtained based on management’s assessment of the customer.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments is represented by the contractual amount of those instruments.

A summary of the Bank’s financial instrument commitments is as follows:

	2013	2012
Commitments to extend credit	$10,278,928	$9,484,309
Outstanding letters of credit	1,050,832	1,173,374

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract and unused credit card lines.  Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.  Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party.  The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

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4. Loans and Allowance For Loan Losses (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Loans and Leases Receivable, Deferred Income	$ 100,962	$ 107,803
Unearned discount	27,182	29,660
Commercial real estate	32,962,000	31,381,000
Owner Occupied
Commercial real estate	$ 16,500,000
Religious Organizations
Loans Receivable Portfolio Percentage (by segment)	33.80%

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11. Fair Value Measurements: Schedule of Fair Value of Assets on a Nonrecurring Basis (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Impaired Loans, Carrying Value
Total fair value gain (loss) during the year	$ (59)	$ (843)
Assets, Fair Value Disclosure, Nonrecurring	1,304	1,501
Other Real Estate Owned
Total fair value gain (loss) during the year	(157)	(232)
Assets, Fair Value Disclosure, Nonrecurring	433	775
Fair Value, Inputs, Level 1 | Impaired Loans, Carrying Value
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 1 | Other Real Estate Owned
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 | Impaired Loans, Carrying Value
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 2 | Other Real Estate Owned
Assets, Fair Value Disclosure, Nonrecurring	0	0
Fair Value, Inputs, Level 3 | Impaired Loans, Carrying Value
Assets, Fair Value Disclosure, Nonrecurring	1,304	1,501
Fair Value, Inputs, Level 3 | Other Real Estate Owned
Assets, Fair Value Disclosure, Nonrecurring	$ 433	$ 775

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4. Loans and Allowance For Loan Losses: Past Due Financing Receivables (Details) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	$ 632	$ 839
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	730	211
Financing Receivable, Recorded Investment, Nonaccrual Status	2,190	2,584
Financing Receivable, Recorded Investment, Past Due	3,552	3,634
Financing Receivable, Recorded Investment, Current	39,159	37,867
Total Loans	42,711	41,502
Commercial And Industrial
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	98
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	574	972
Financing Receivable, Recorded Investment, Past Due	574	1,070
Financing Receivable, Recorded Investment, Current	3,736	2,664
Total Loans	4,310	3,734
Commercial And Industrial | Commercial
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	15
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	444	873
Financing Receivable, Recorded Investment, Past Due	444	888
Financing Receivable, Recorded Investment, Current	1,214	574
Total Loans	1,658	1,462
Commercial And Industrial | SBA Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	130	0
Financing Receivable, Recorded Investment, Past Due	130	0
Financing Receivable, Recorded Investment, Current	455	125
Total Loans	585	125
Commercial And Industrial | Asset Based Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	83
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	99
Financing Receivable, Recorded Investment, Past Due	0	182
Financing Receivable, Recorded Investment, Current	2,067	1,965
Total Loans	2,067	2,147
Commercial Real Estate Portfolio Segment
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	206	306
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	442	0
Financing Receivable, Recorded Investment, Nonaccrual Status	1,259	1,323
Financing Receivable, Recorded Investment, Past Due	1,907	1,629
Financing Receivable, Recorded Investment, Current	31,055	29,752
Total Loans	32,962	31,381
Commercial Real Estate Portfolio Segment | SBA Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	184	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	184	0
Financing Receivable, Recorded Investment, Current	382	621
Total Loans	566	621
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	22	306
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	442	0
Financing Receivable, Recorded Investment, Nonaccrual Status	630	649
Financing Receivable, Recorded Investment, Past Due	1,094	955
Financing Receivable, Recorded Investment, Current	16,249	13,765
Total Loans	17,343	14,720
Commercial Real Estate Portfolio Segment | Construction
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Current	2,456	3,398
Total Loans	2,456	3,398
Commercial Real Estate Portfolio Segment | Religious Organizations
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	629	674
Financing Receivable, Recorded Investment, Past Due	629	674
Financing Receivable, Recorded Investment, Current	11,968	11,968
Total Loans	12,597	12,642
Consumer Real Estate
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	334	343
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	147	70
Financing Receivable, Recorded Investment, Nonaccrual Status	357	289
Financing Receivable, Recorded Investment, Past Due	838	702
Financing Receivable, Recorded Investment, Current	3,071	3,917
Total Loans	3,909	4,619
Consumer Real Estate | Home Equity Line of Credit
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	26
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	0	26
Financing Receivable, Recorded Investment, Current	24	0
Total Loans	24	26
Consumer Real Estate | Home Equity Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	209	274
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	147	44
Financing Receivable, Recorded Investment, Nonaccrual Status	115	63
Financing Receivable, Recorded Investment, Past Due	471	381
Financing Receivable, Recorded Investment, Current	705	1,072
Total Loans	1,176	1,453
Consumer Real Estate | Family Residential Mortgage
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	125	69
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	242	226
Financing Receivable, Recorded Investment, Past Due	367	295
Financing Receivable, Recorded Investment, Current	2,342	2,845
Total Loans	2,709	3,140
Total Real Estate
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	540	649
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	589	70
Financing Receivable, Recorded Investment, Nonaccrual Status	1,616	1,612
Financing Receivable, Recorded Investment, Past Due	2,745	2,331
Financing Receivable, Recorded Investment, Current	34,126	33,669
Total Loans	36,871	36,000
Consumer And Other Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	92	92
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	141	141
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	233	233
Financing Receivable, Recorded Investment, Current	1,297	1,535
Total Loans	1,530	1,768
Consumer And Other Loans | Consumer Installment
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	0	0
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	0	0
Financing Receivable, Recorded Investment, Current	16	30
Total Loans	16	30
Consumer And Other Loans | Student Loans
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	87	87
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	141	141
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	228	228
Financing Receivable, Recorded Investment, Current	1,138	1,360
Total Loans	1,366	1,588
Consumer And Other Loans | Other
Financing Receivable Recorded Investment Thirty To Eighty Nine Days Past Due	5	5
Financing Receivable, Recorded Investment, Equal to Greater than 90 Days Past Due	0	0
Financing Receivable, Recorded Investment, Nonaccrual Status	0	0
Financing Receivable, Recorded Investment, Past Due	5	5
Financing Receivable, Recorded Investment, Current	143	145
Total Loans	$ 148	$ 150

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4. Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Commercial and industrial	$ 4,310,000	$ 3,734,000
Commercial real estate	32,962,000	31,381,000
Consumer real estate	3,909,000	4,619,000
Total Real estate	36,871,000	36,000,000
Consumer loans other	1,530,000	1,768,000
Loans, net	42,711,000	41,502,000
Commercial And Industrial | Commercial
Commercial and industrial	1,658,000	1,462,000
Commercial And Industrial | SBA Loans
Commercial and industrial	585,000	125,000
Commercial And Industrial | Asset Based Loans
Commercial and industrial	2,067,000	2,147,000
Commercial Real Estate Portfolio Segment | SBA Loans
Commercial real estate	566,000	621,000
Commercial Real Estate Portfolio Segment | Commercial Mortgages
Commercial real estate	17,343,000	14,720,000
Commercial Real Estate Portfolio Segment | Construction
Commercial real estate	2,456,000	3,398,000
Commercial Real Estate Portfolio Segment | Religious Organizations
Commercial real estate	12,597,000	12,642,000
Consumer Real Estate | Home Equity Line of Credit
Consumer real estate	1,176,000	1,453,000
Consumer Real Estate | Family Residential Mortgage
Consumer real estate	24,000	26,000
Consumer Real Estate | Home Equity Loans
Consumer real estate	2,709,000	3,140,000
Consumer And Other Loans | Consumer Installment
Consumer loans other	16,000	30,000
Consumer And Other Loans | Student Loans
Consumer loans other	1,366,000	1,588,000
Consumer And Other Loans | Other
Consumer loans other	$ 148,000	$ 150,000

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15. Earnings Per Share Computation: Schedule of Earnings Per Shares Basic and Diluted (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Net loss	$ (668,898)	$ (1,016,247)
Loss attributable to common stockholders, basic (numerator)	(668,898)	(1,016,247)
Weighted Average Number of Shares Outstanding, Basic (denominator)	1,068,588
Earnings Per Share, Basic	$ (0.63)
Loss attributable to common stockholders, diluted (numerator)	$ (668,898)	$ (1,016,247)
Weighted Average Number of Shares Outstanding, Diluted (denominator)	1,068,588	1,068,588
Earnings Per Share, Diluted	$ (0.63)	$ (0.95)
Weighted Average Number of Shares Outstanding, Diluted (denominator)	1,068,588	1,068,588

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4. Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Allowance for Credit Losses on Financing Receivables

(in 000's)	For the Year Ended December 31, 2013
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$891	$308	$5	$-	$1,204
Provision for loan losses	113	(106)	50	18	75
Charge-offs	(524)	-	(5)	(10)	(539)
Recoveries	3	78	9	9	99
Net charge-offs	(521)	78	4	(1)	(440)
Ending balance	$483	$280	$59	$17	$839

(in 000's)	For the Year Ended December 31, 2012
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$387	$412	$68	-	$867
Provision for loan losses	560	(112)	-	5	453
Charge-offs	(56)	-	(80)	(21)	(157)
Recoveries	-	8	17	16	41
Net charge-offs	(56)	8	(63)	(5)	(116)
Ending balance	$891	$308	$5	-	$1,204

(in 000's)	As of December 31, 2013
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$378	$-	$-	$-	$378
Loans collectively  evaluated for impairment	105	280	59	17	461
	$483	$280	$59	$17	$839
Loans, ending balance:
Loans individually evaluated for impairment	$492	$1,390	$-	$-	$1,882
Loans collectively  evaluated for impairment	3,818	31,572	3,909	1,530	40,829
Total	$4,310	$32,962	$3,909	$1,530	$42,711

(in 000's)	As of December 31, 2012
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$843	-	-	-	$843
Loans collectively  evaluated for impairment	48	308	5	-	361
	$891	$308	$5	-	$1,204
Loans, ending balance:
Loans individually evaluated for impairment	$1,021	$1,323	-	-	2,344
Loans collectively  evaluated for impairment	2,713	30,058	4,619	1,768	39,158
Total	$3,734	$31,381	$4,619	$1,768	$41,502

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15. Earnings Per Share Computation: Schedule of Earnings Per Shares Basic and Diluted (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Earnings Per Shares Basic and Diluted

	Year ended December 31, 2013
	Loss	Shares	Per share
	(numerator)	(denominator)	amount
Net loss	$(668,898)
Basic  EPS
Loss attributable to common stockholders	$(668,898)	1,068,588	$(0.63)
Diluted EPS
Loss attributable to common stockholders	$(668,898)	1,068,588	$(0.63)

	Year ended December 31, 2012
	Loss	Shares	Per share
	(numerator)	(denominator)	amount
Net loss	$(1,016,247)
Basic  EPS
Loss attributable to common stockholders	$(1,016,247)	1,068,588	$(0.95)
Diluted EPS
Loss attributable to common stockholders	$(1,016,247)	1,068,588	$(0.95)

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15. Earnings Per Share Computation

12 Months Ended

Dec. 31, 2013

Notes

15. Earnings Per Share Computation

15.  EARNINGS PER SHARE COMPUTATION

Net loss per common share is calculated as follows:

	Year ended December 31, 2013
	Loss	Shares	Per share
	(numerator)	(denominator)	amount
Net loss	$(668,898)
Basic  EPS
Loss attributable to common stockholders	$(668,898)	1,068,588	$(0.63)
Diluted EPS
Loss attributable to common stockholders	$(668,898)	1,068,588	$(0.63)

	Year ended December 31, 2012
	Loss	Shares	Per share
	(numerator)	(denominator)	amount
Net loss	$(1,016,247)
Basic  EPS
Loss attributable to common stockholders	$(1,016,247)	1,068,588	$(0.95)
Diluted EPS
Loss attributable to common stockholders	$(1,016,247)	1,068,588	$(0.95)

There were no common stock equivalents for the years December 31, 2013 and 2012.

The preferred stock is non cumulative and the Company is restricted from paying dividends.  Therefore, no effect of the preferred stock is included in the earnings per share calculations.

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3. Investments: Held-to-maturity Securities (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Held-to-maturity Securities

Held-to-maturity:
U.S. Government agency securities	$3,605	$159	$(4)	$3,760
Government Sponsored Enterprises residential mortgage-backed securities	8,290	437	(1)	8,726
	$11,895	$596	$(5)	$12,486

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12. Consolidated Financial Information-parent Company Only: Condensed Statements of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Condensed Statements of Cash Flows

Condensed Statements of Cash Flows
Years ended December 31,
(Dollars in thousands)	2013	2012
Cash flows from operating activities:
Net loss	$(669)	$(1,016)
Adjustments:
Equity in net loss of subsidiary	669	996
Net cash used in operating activities	-	(20)
Cash and cash equivalents at beginning of year	-	20
Cash and cash equivalents at end of year	$-	$-

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9. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	December 31,
	2013	2012
Deferred tax assets(liabilities):
Provision for loan losses	$191,387	$333,853
Unrealized (loss) gain on investment securities	161,082	(16,824)
Depreciation	31,199	94,393
Net operating carryforwards	3,198,011	2,897,243
Other, net	258,692	134,614
Valuation allowance for deferred tax assets	(3,679,289)	(3,460,103)
Net deferred tax assets (liabilities)	$161,082	$(16,824)

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)	Series A preferred stock	Common Stock	Additional paid-in capital	Accumulated deficit	Accumulated comprehensive income (loss)	Total
Equity Balance, beginning of period, Value at Dec. 31, 2011	$ 1,368	$ 10,686	$ 14,749,852	$ (9,539,831)	$ 38,841	$ 5,260,916
Equity Balance, beginning of period, Shares at Dec. 31, 2011	136,842	1,068,588
Net loss				(1,016,247)		(1,016,247)
Other comprehensive loss, net of tax					(4,684)	(4,684)
Equity Balance, end of period, Value at Dec. 31, 2012	$ 1,368	$ 10,686	$ 14,749,852	$ (10,556,078)	$ 34,157	$ 4,239,985
Equity Balance, end of period, Shares at Dec. 31, 2012	136,842	1,068,588

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12. Consolidated Financial Information-parent Company Only: Condensed Statements of Operations (Details) (Parent Company, USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Parent Company
Other Expenses	$ 0	$ (20)
Equity in net loss of subsidiary	(669)	(996)
Net loss	$ (669)	$ (1,016)

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4. Loans and Allowance For Loan Losses

12 Months Ended

Dec. 31, 2013

Notes

4. Loans and Allowance For Loan Losses

4.  LOANS AND ALLOWANCE FOR LOAN LOSSES

The composition of the net loans is as follows:

	December 31,	December 31,
(In 000's)	2013	2012
Commercial and industrial:
Commercial	$1,658	$1,462
SBA loans	585	125
Asset-based	2,067	2,147
Total commercial and industrial	4,310	3,734
Commercial real estate:
Commercial mortgages	17,343	14,720
SBA loans	566	621
Construction	2,456	3,398
Religious organizations	12,597	12,642
Total commercial real estate	32,962	31,381
Home equity loans
Home equity lines of credit	1,176	1,453
1-4 family residential mortgages	24	26
Home equity loans	2,709	3,140
Total consumer real estate	3,909	4,619
Total real estate	36,871	36,000
Consumer and other:
Consumer installment	16	30
Student loans	1,366	1,588
Other	148	150
Total consumer and other	1,530	1,768
Loans, net	$42,711	$41,502

At December 31, 2013 and 2012, unamortized net deferred fees totaled $100,962 and $107,803, respectively, and are included in the related loan accounts. At December 31, 2013 and 2012, the unearned discount totaled $27,182 and $29,660, respectively, and is included in the related loan accounts.

Loan Origination/Risk Management.  The Bank has lending policies and procedures in place to maximize loan income within an acceptable level of risk.  Management reviews and approves these policies and procedures on a regular basis.  A reporting system supplements the review process by providing management with periodic reports related to loan origination, asset quality, concentrations of credit, loan delinquencies and non-performing and emerging problem loans.  Diversification in the portfolio is a means of managing risk with fluctuations in economic conditions.

Commercial and industrial loans are underwritten after evaluating and understanding the borrower’s ability to operate prudently to service the projected debt.  Once it is determined that the borrower’s management possesses sound ethics and solid business acumen, the Bank’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed.  Commercial and industrial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower.  The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value.  Most commercial and industrial loans are secured by the assets being financed or other business assets such as accounts receivable. The Bank may also seek credit enhancements for commercial and industrial loans from the Small Business Administration, Department of Transportation or other available programs.  Generally, the Bank utilizes an advance formula for loans secured by eligible accounts receivable and other available programs to mitigate risk.

Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans. These loans are viewed as cash flow loans first and secondarily as loans secured by real estate.  Commercial real estate loans typically have higher principal amounts and the repayment of these loans is dependent on the successful operation of property securing the loan or business conducted on the property securing the loan.  Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy.  The Bank tracks the level of owner occupied versus non-owner occupied loans.   Typically, owner-occupied real estate loans represent less risk for the Bank.

The Bank’s commercial real estate loans are largely concentrated in loans to religious organizations. These loans are generally made to these organizations are primarily for expansion and repair of church facilities (construction loans).  The source of repayment is viewed as cash flow from tithes and offerings and secondarily as loans secured by real estate.

The Bank’s construction lending has primarily involved lending for construction of commercial properties although the Bank does lend funds for construction of single-family residences. Construction loans are underwritten utilizing feasibility studies, independent appraisals, analysis of lease rates, and the financial analysis of the developers and property owners. Construction loans are generally based upon estimates of costs and value associated with the complete project. These estimates can be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Loan proceeds are disbursed during the construction phase according to a draw schedule based on the stage of completion. Construction projects are inspected by contracted inspectors or bank personnel. These loans are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, regulations of real property, general economic conditions and the availability of long-term financing.

Consumer loans are underwritten after an analysis of the borrower’s past and present financial information including credit score, personal financial statements, tax returns and other information deemed necessary to calculate debt service ratios that determine the ability of a borrower to repay the loan.  Minimum debt service ratios have been established by policy.  Underwriting standards for home equity loans are also heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80% and documentation requirements.

The Bank performs an annual loan review by an independent third party firm that reviews and validates the credit risk program.  The results of these reviews are presented to the board and management.  The loan review process reinforces the risk identification and assessment decisions made by lenders and credit administration personnel, as well as the Bank’s policies and procedures.

Concentrations of Credit.  The Bank’s loan portfolio is concentrated in commercial real estate and commercial and industrial loans.  Approximately $16.5 million of these loans are secured by owner occupied commercial real estate as of December 31, 2013. The Bank continues to have a significant concentration in lending to religious organizations for which total loans at December 31, 2013 were $12.6 million, or 33.8%, of the commercial portfolio.

Related Party Loans.  In the ordinary course of business, the Bank granted loans to certain directors, executive officers and there affiliates (collectively referred to as “related parties”).  These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. Disaffiliations include directors who do not stand for re-election and are no longer affiliated with the Bank.  Activity in related party loans is presented in the following table.

	2013	2012
Balance outstanding at December 31,	$1,572,026	$1,702,648
Principal additions	65,800	30,000
Disaffiliations	(718,007)	-
Principal reductions	(60,958	(160,623)
Balance outstanding at December 31,	$858,861	$1,572,026

Non-accrual and Past Due Loans.  Loans are considered past due if the required principal and interest payments have not been received 30 days as of the date such payments were due.  The Bank generally places a loan on non-accrual status when interest or principal is past due 90 days or more.  If it otherwise appears doubtful that the loan will be repaid, management may place the loan on nonaccrual status before the lapse of 90 days. Interest on loans past due 90 days or more ceases to accrue except for loans that are well collateralized and in the process of collection.  When a loan is placed on nonaccrual status, previously accrued and unpaid interest is reversed out of income.  Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 

An age analysis of past due loans, segregated by class of loans, as of December 31, 2013 is as follows:

(In 000's)		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$-	$-	$444	$444	$1,214	$1,658
SBA loans	-	-	130	130	455	585
Asset-based	-	-	-	-	2,067	2,067
Total Commercial and industrial	-	-	574	574	3,736	4,310
Commercial real estate:
Commercial mortgages	22	442	630	1,094	16,249	17,343
SBA loans	184	-	-	184	382	566
Construction	-	-	-	-	2,456	2,456
Religious organizations	-	-	629	629	11,968	12,597
Total Commercial real estate	206	442	1,259	1,907	31,055	32,962
Consumer real estate:
Home equity loans	209	147	115	471	705	1,176
Home equity lines of credit	-	-	-	-	24	24
1-4 family residential mortgages	125	-	242	367	2,342	2,709
Total consumer real estate	334	147	357	838	3,071	3,909
Total real estate	540	589	1,616	2,745	34,126	36,871
Consumer and other:
Consumer installment	-	-	-	-	16	16
Student loans	87	141	-	228	1,138	1,366
Other	5	-	-	5	143	148
Total consumer and other	92	141	-	233	1,297	1,530
Total loans	$632	$730	$2,190	$3,552	$39,159	$42,711

An age analysis of past due loans, segregated by class of loans, as of December 31, 2012 follows:

(In 000's)		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$15	$-	$873	888	$574	$1,462
SBA loans	-	-	-	-	125	125
Asset-based	83	-	99	182	1,965	2,147
Total Commercial and industrial	98	-	972	1,070	2,664	3,734
Commercial real estate:
Commercial mortgages	306	-	649	955	13,765	14,720
SBA loans	-	-	-	-	621	621
Construction	-	-	-	-	3,398	3,398
Religious organizations	-	-	674	674	11,968	12,642
Total Commercial real estate	306	-	1,323	1,629	29,752	31,381
Consumer real estate:
Home equity loans	274	44	63	381	1,072	1,453
Home equity lines of credit	-	26	-	26	-	26
1-4 family residential mortgages	69	-	226	295	2,845	3,140
Total consumer real estate	343	70	289	702	3,917	4,619
Total real estate	649	70	1,612	2,331	33,669	36,000
Consumer and other:
Consumer installment	-	-	-	-	30	30
Student loans	87	141	-	228	1,360	1,588
Other	5	-	-	5	145	150
Total consumer and other	92	141	-	233	1,535	1,768
Total loans	$839	$211	$2,584	$3,634	$37,867	$41,502

Impaired Loans. The Bank identifies a loan as impaired when it is probable that interest and principal will not be collected according to the contractual terms of the loan agreement. The Bank recognizes interest income on impaired loans under the cash basis when the collateral on the loan is sufficient to cover the outstanding obligation to the Bank.   If these factors do not exist, the Bank will record interest payments on the cost recovery basis.

In accordance with guidance provided by ASC 310-10, Accounting by Creditors for Impairment of a Loan, management employs one of three methods to determine and measure impairment: the Present Value of Future Cash Flow Method; the Fair Value of Collateral Method; or the Observable Market Price of a Loan Method.  To perform an impairment analysis, the Company reviews a loan’s internally assigned grade, its outstanding balance, guarantors, collateral, strategy, and a current report of the action being implemented. Based on the nature of the specific loans, one of the impairment methods is chosen for the respective loan and any impairment is determined, based on criteria established in ASC 310-10.

The Company makes partial charge-offs of impaired loans when the impairment is deemed permanent and is considered a loss.  To date, these charge-offs have only included the unguaranteed portion of Small Business Administration (“SBA”) loans.  Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions. During the years ended December 31, 2013 and 2012, there were no partial charge-offs of impaired loans.

Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans.

Year-end 2013 impaired loans are set forth in the following table.

(In 000’s)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total		Average	Interest recognized
	Principal	With No	With	Recorded	Related	Recorded	on impaired
	Balance	Allowance	Allowance	Investment	Allowance	Investment	loans
Commercial and industrial:
Commercial	$444	$47	$397	$444	$330	$446	$-
SBA  loans	48	-	48	48	48	49	1
Asset-based	-	-	-	-	-	-	-
Total Commercial and industrial	492	47	445	492	378	495	1
Commercial real estate:
Commercial mortgages	630	630	-	630	-	579	-
SBA  Loans	130	130	-	130	-	161	2
Religious Organizations	630	630	-	630	-	630	-
Total Commercial real estate	1,390	1,390	-	1,390	-	1,370	2
Total Loans	$1,882	$1,437	$445	$1,882	$378	$1,865	$3

Year-end 2012 impaired loans are set forth in the following table.  

(In 000’s)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total		Average	Interest recognized
	Principal	With No	With	Recorded	Related	Recorded	on impaired
	Balance	Allowance	Allowance	Investment	Allowance	Investment	loans
Commercial and industrial:
Commercial	$873	$78	$795	$873	$695	$541	$11
SBA  loans	49	-	49	49	49	29	-
Asset-based	99	-	99	99	99	119	-
Total Commercial and industrial	1,021	78	943	1,021	843	689	11
Commercial real estate:
Commercial mortgages	649	649	-	649	-	681	1
SBA  Loans	-	-	-	-	-	-	-
Religious Organizations	674	674	-	674	-	420	27
Total Commercial real estate	1,323	1,323	-	1,323	-	1,101	28
Total Loans	$2,344	$1,401	$943	$2,344	$843	$1,790	$39

Credit Quality Indicators.  For commercial loans, management uses internally assigned risk ratings as the best indicator of credit quality.  Each loan’s internal risk weighting is assigned at origination and updated at least annually and more frequently if circumstances warrant a change in risk rating.  The Bank uses a 1 through 8 loan grading system that follows regulatory accepted definitions as follows:

· Risk ratings of “1” through “3” are used for loans that are performing and meet and are expected to continue to meet all of the terms and conditions set forth in the original loan documentation and are generally current on principal and interest payments.  Loans with these risk ratings are reflected as “Good/Excellent” and “Satisfactory” in the following table.

· Risk ratings of “4” are assigned to “Pass/Watch” loans which may require a higher degree of regular, careful attention.  Borrowers may be exhibiting weaker balance sheets and positive but inconsistent cash flow coverage. Borrowers in this classification generally exhibit a higher level of credit risk and are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. Loans with this rating would not normally be acceptable as new credits unless they are adequately secured and/or carry substantial guarantors. Loans with this rating are reflected as “Pass” in the following table.

· Risk ratings of “5” are assigned to “Special Mention” loans that do not presently expose the Bank to a significant degree of risks, but have potential weaknesses/deficiencies deserving Management’s closer attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank’s credit position at some future date. No loss of principal or interest is envisioned.  Borrower is experiencing adverse operating trends, which potentially could impair debt, services capacity and may necessitate restructuring of credit.  Secondary sources of repayment are accessible and considered adequate to cover the Bank's exposure. However a restructuring of the debt should result in repayment.  The asset is currently protected, but is potentially weak.  This category may include credits with inadequate loan agreements, control over the collateral or an unbalanced position in the balance sheet which has not reached a point where the liquidation is jeopardized but exceptions are considered material. These borrowers would have limited ability to obtain credit elsewhere.

· Risk ratings of “6” are assigned to ‘Substandard” loans which are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Assets must have a well-defined weakness. They are characterized by the distinct possibility that some loss is possible if the deficiencies are not corrected. The borrower’s recent performance indicated an inability to repay the debt, even if restructured. Primary source of repayment is gone or severely impaired and the Bank may have to rely upon the secondary source. Secondary sources of repayment (e.g., guarantors and collateral) should be adequate for a full recovery. Flaws in documentation may leave the bank in a subordinated or unsecured position when the collateral is needed for the repayment.

· Risk ratings of “7” are assigned to “Doubtful” loans which have all the weaknesses inherent in those classified “Substandard” with the added characteristic that the weakness makes the collection or liquidation in full, on the basis of current existing facts, conditions, and values, highly questionable and improbable.  The borrower's recent performance indicates an inability to repay the debt.  Recovery from secondary sources is uncertain.  The possibility of a loss is extremely high, but because of certain important and reasonably- specific pending factors, its classification as a loss is deferred.

· Risk rating of “8” are assigned to “Loss” loans which are considered non-collectible and do not warrant classification as active assets.  They are recommended for charge-off if attempts to recover will be long term in nature.  This classification does not mean that an asset has no recovery or salvage value, but rather, that it is not practical or desirable to defer writing off the loss, although a future recovery may be possible.  Loss should always be taken in the period in which they surface and are identified as non-collectible as a result there is no tabular presentation.

For consumer and residential mortgage loans, management uses performing versus nonperforming as the best indicator of credit quality.  Nonperforming loans consist of loans that are not accruing interest (nonaccrual loans) as a result of principal or interest being in default for a period of 90 days or more or when the ability to collect principal and interest according to contractual terms is in doubt.  These credit quality indicators are updated on an ongoing basis.  A loan is placed on nonaccrual status as soon as management believes there is doubt as to the ultimate ability to collect interest on a loan.

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.

(In 000's)	Commercial Loans, December 31, 2013
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$743	$220	-	$52	$393	$1,658
SBA loans	-	497	-	40	48	-	585
Asset-based	-	1,897	124	46	-	-	2,067
	250	3,137	344	86	100	393	$4,310
Commercial real estate:
Commercial mortgages	-	15,232	883	-	912	316	17,343
SBA Loans	-	265	171	-	130	-	566
Construction	-	2,456	-	-	-	-	2,456
Religious organizations	-	10,414	931	623	629	-	12,597
	-	28,367	1,985	623	1,671	316	32,962
Total commercial loans	$250	$31,504	$2,329	$709	$1,771	$709	$37,272

	Residential Mortgage and Consumer Loans December 31, 2013
	- Performing/Nonperforming
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$1,061	$115	$1,176
Home equity line of credit	24	-	24
1-4 family residential mortgages	2,467	242	2,709
	3,552	357	3,909
Consumer Other:
Consumer Installment	16	-	16
Student loans	1,366	-	1,366
Other	148	-	148
	1,530	-	1,530
Total consumer loans	$5,082	$357	$5,439
Total loans				$42,711

(In 000's)	Commercial Loans, December 31, 2012
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$250	$104	$15	$220	$480	$393	$1,462
SBA loans	-	27	-	49	49	-	125
Asset-based	-	1,869	125	54	99	-	2,147
	250	2,000	140	323	628	393	3,734
Commercial real estate:
Commercial mortgages	-	12,678	1,322	-	403	317	14,721
SBA Loans	-	621	-	-	-	-	621
Construction	-	2,767	-	-	631	-	3,398
Religious organizations	-	8,183	3,623	162	674	-	12,642
	-	24,349	4,945	162	1,708	317	31,381
Total commercial loans	$250	$26,249	$5,085	$485	$2,336	$710	$33,115

	Residential Mortgage and Consumer Loans December 31, 2012
	- Performing/Nonperforming
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$1,390	$63	$1,453
Home equity line of credit	26	-	26
1-4 family residential mortgages	2,914	226	3,140
	4,330	289	4,619
Consumer Other:
Consumer Installment	30	-	30
Student loans	1,588	-	1,588
Other	150	-	150
	1,768	-	1,768
Total  consumer loans	$6,098	$289	$6,387
Total loans				$41,502

Allowance for loan losses.  The determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies. The allowance is the accumulation of three components that are calculated based on various independent methodologies that are based on management’s estimates.  The three components are as follows:

·         Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans.  

·         Historical Charge-Off Component – Applies a rolling, eight-quarter historical charge-off rate to all pools of non-classified loans.

·         Qualitative Factors Component – The loan portfolio is broken down into multiple homogenous sub classifications, upon which multiple factors (such as delinquency trends, economic conditions, concentrations, growth/volume trends, and management/staff ability) are evaluated, resulting in an allowance amount for each of the sub classifications. The sum of these amounts comprises the Qualitative Factors Component.

All of these factors may be susceptible to significant change.   There has been no change in qualitative factors during the year ending December 31, 2013 except for commercial and industrial loans for which there was an increase as a result of unfavorable trends.  However, the average rolling eight quarter net loss factors have declined during the period in each portfolio segment as a result of a lower level of net charge-offs in 2013, with the exception of the factor for commercial and industrial loans that increased as a result of unfavorable trends.  To the extent actual outcomes differ from management’s estimates, additional provisions for loan losses may be required that would adversely impact earnings in future periods.

According to the Bank’s policy, a loss (“charge-off”) is to be recognized and charged to the allowance for loan losses as soon as a loan is recognized as uncollectible.  All credits that are 90 days or more past due must be analyzed for the Bank’s ability to collect the outstanding principal and/or interest.  Once a loss is known to exist, the charge-off approval process must be followed for all loan types.  An analysis of the activity in the allowance for loan losses for the years 2013 and 2012 is as follows:

(in 000's)	For the Year Ended December 31, 2013
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$891	$308	$5	$-	$1,204
Provision for loan losses	113	(106)	50	18	75
Charge-offs	(524)	-	(5)	(10)	(539)
Recoveries	3	78	9	9	99
Net charge-offs	(521)	78	4	(1)	(440)
Ending balance	$483	$280	$59	$17	$839

(in 000's)	For the Year Ended December 31, 2012
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$387	$412	$68	-	$867
Provision for loan losses	560	(112)	-	5	453
Charge-offs	(56)	-	(80)	(21)	(157)
Recoveries	-	8	17	16	41
Net charge-offs	(56)	8	(63)	(5)	(116)
Ending balance	$891	$308	$5	-	$1,204

(in 000's)	As of December 31, 2013
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$378	$-	$-	$-	$378
Loans collectively  evaluated for impairment	105	280	59	17	461
	$483	$280	$59	$17	$839
Loans, ending balance:
Loans individually evaluated for impairment	$492	$1,390	$-	$-	$1,882
Loans collectively  evaluated for impairment	3,818	31,572	3,909	1,530	40,829
Total	$4,310	$32,962	$3,909	$1,530	$42,711

(in 000's)	As of December 31, 2012
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$843	-	-	-	$843
Loans collectively  evaluated for impairment	48	308	5	-	361
	$891	$308	$5	-	$1,204
Loans, ending balance:
Loans individually evaluated for impairment	$1,021	$1,323	-	-	2,344
Loans collectively  evaluated for impairment	2,713	30,058	4,619	1,768	39,158
Total	$3,734	$31,381	$4,619	$1,768	$41,502

Troubled debt restructurings (“TDRs”).  TDRs occur when a creditor, for economic or legal reasons related to a debtor’s financial condition, grants a concession to the debtor that it would not otherwise consider, such as a below market interest rate, extending the maturity of a loan, or a combination of both. The Company made modifications to certain loans in its commercial loan portfolio that included the term out of lines of credit to begin the amortization of principal.  The terms of these loans do not include any financial concessions and are consistent with the current market.  Management reviews all loan modifications to determine whether the modification qualifies as a TDR (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties).  Based on this review and evaluation, none of the loans modified during 2013 and 2012 met the criteria of a TDR.  In addition, the Company had no loans classified as TDRs at December 31, 2013 and 2012.

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3. Investments: Schedule of Available-for-sale Securities Reconciliation (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Available-for-sale Securities, Amortized Cost Basis	$ 10,067,000	$ 976,000
Available-for-sale Securities, Gross Unrealized Gain	36,000	51,000
Available-for-sale Securities, Gross Unrealized Loss	(523,000)
Available-for-sale, at fair value	9,579,979	1,027,293
US Government Agencies Debt Securities
Available-for-sale Securities, Amortized Cost Basis	4,097,000
Available-for-sale Securities, Gross Unrealized Gain
Available-for-sale Securities, Gross Unrealized Loss	(295,000)
Available-for-sale, at fair value	3,802,000
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises
Available-for-sale Securities, Amortized Cost Basis	5,841,000	847,000
Available-for-sale Securities, Gross Unrealized Gain	36,000	51,000
Available-for-sale Securities, Gross Unrealized Loss	(228,000)
Available-for-sale, at fair value	5,649,000	898,000
Money Market Funds
Available-for-sale Securities, Amortized Cost Basis	129,000	129,000
Available-for-sale Securities, Gross Unrealized Gain
Available-for-sale Securities, Gross Unrealized Loss
Available-for-sale, at fair value	$ 129,000	$ 129,000

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10. Financial Instrument Commitments: Schedule of Financial Instruments Owned and Pledged as Collateral (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Outstanding letters of credit	$ 1,050,832	$ 1,173,374
Commitments to Extend Credit
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability	$ 10,278,928	$ 9,484,309

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4. Loans and Allowance For Loan Losses: Allowance for Credit Losses on Financing Receivables (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Beginning balance	$ 1,204,000	$ 867,000
Provision for loan losses	75,000	453,000
Charge-offs	(539,000)	(157,000)
Recoveries	99,000	41,000
Net charge-offs	(440,000)	(116,000)
Ending balance	839,000	1,204,000
Period-end amount allocated to loans individually evaluated for impairment	378,000	843,000
Period-end amount allocated to loans collectively evaluated for impairment	461,000	361,000
Total allocation	839,000	1,204,000
Loans, ending balance: Loans individually evaluated for impairment	1,882,000	2,344,000
Loans, ending balance: Loans collectively evaluated for impairment	40,829,000	39,158,000
Total	42,710,625	41,501,555
Commercial And Industrial
Beginning balance	891,000	387,000
Provision for loan losses	113,000	560,000
Charge-offs	(524,000)	(56,000)
Recoveries	3,000	0
Net charge-offs	(521,000)	(56,000)
Ending balance	483,000	891,000
Period-end amount allocated to loans individually evaluated for impairment	378,000	843,000
Period-end amount allocated to loans collectively evaluated for impairment	105,000	48,000
Total allocation	483,000	891,000
Loans, ending balance: Loans individually evaluated for impairment	492,000	1,021,000
Loans, ending balance: Loans collectively evaluated for impairment	3,818,000	2,713,000
Total	4,310,000	3,734,000
Commercial Real Estate Portfolio Segment
Beginning balance	308,000	412,000
Provision for loan losses	(106,000)	(112,000)
Charge-offs	0	0
Recoveries	78,000	8,000
Net charge-offs	78,000	8,000
Ending balance	280,000	308,000
Period-end amount allocated to loans individually evaluated for impairment	0	0
Period-end amount allocated to loans collectively evaluated for impairment	280,000	308,000
Total allocation	280,000	308,000
Loans, ending balance: Loans individually evaluated for impairment	1,390,000	1,323,000
Loans, ending balance: Loans collectively evaluated for impairment	31,572,000	30,058,000
Total	32,962,000	31,381,000
Consumer Real Estate
Beginning balance	5,000	68,000
Provision for loan losses	50,000	0
Charge-offs	(5,000)	(80,000)
Recoveries	9,000	17,000
Net charge-offs	4,000	(63,000)
Ending balance	59,000	5,000
Period-end amount allocated to loans individually evaluated for impairment	0	0
Period-end amount allocated to loans collectively evaluated for impairment	59,000	5,000
Total allocation	59,000	5,000
Loans, ending balance: Loans individually evaluated for impairment	0	0
Loans, ending balance: Loans collectively evaluated for impairment	3,909,000	4,619,000
Total	3,909,000	4,619,000
Consumer And Other Loans
Beginning balance	0	0
Provision for loan losses	18,000	5,000
Charge-offs	(10,000)	(21,000)
Recoveries	9,000	16,000
Net charge-offs	(1,000)	(5,000)
Ending balance	17,000	0
Period-end amount allocated to loans individually evaluated for impairment	0	0
Period-end amount allocated to loans collectively evaluated for impairment	17,000	0
Total allocation	17,000	0
Loans, ending balance: Loans individually evaluated for impairment	0	0
Loans, ending balance: Loans collectively evaluated for impairment	1,530,000	1,768,000
Total	$ 1,530,000	$ 1,768,000

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3. Investments: Schedule of Unrealized Loss on Investments (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Schedule of Unrealized Loss on Investments

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	value	Losses	Value	Losses	value	losses
U.S. Government
agency securities	15	$3,576	$(270)	$225	$(25)	$3,801	$(295	)
Mortgage backed
securities	21	$4,777	$(228)	«R7JPASLX»$]-	$-	$4,777	$(228	)
Total temporarily
impaired investment
securities	36	$8,353	$(498)	$225	$(25)	$8,578	$(523	)

The table below indicates the length of time individual securities held-to-maturity have been in a continuous unrealized loss position at December 31, 2012 (in thousands):

	Number	Less than 12 months		12 months or longer		Total
Description of	of	Fair	Unrealized	Fair	Unrealized	Fair	Unrealized
Securities	securities	value	Losses	Value	Losses	value	Losses
U.S. Government
agency securities	3	$746	$(4)	$-	$-	$746	$(4)
Mortgage backed
securities	2	$253	$(1)	$-	$-	$253	$(1)
Total temporarily
impaired investment
securities	5	$999	$(5)	$-	$-	$999	$(5)

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6. Other Real Estate Owned: Other Real Estate Owned (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details
Other Real Estate, Beginning Balance	$ 775,407	$ 1,285,000
Additions, transfers from loans	0	156,000
Sales	(185,000)	(434,000)
Other Real Estate, Period Increase (Decrease)	590,000	1,007,000
Less: write-downs	(157,000)	(232,000)
Other Real Estate, Ending Balance	$ 433,087	$ 775,407

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6. Other Real Estate Owned: Other Real Estate Owned (Tables)

12 Months Ended

Dec. 31, 2013

Tables/Schedules

Other Real Estate Owned

A summary of the change in other real estate owned follows:

(in 000’s)	Year Ended December 31, 2013	Year Ended December 31, 2012
Beginning Balance	$775	$1,285
Additions, transfers from loans	-	156
Sales	(185)	(434)
	590	1,007
Less: write-downs	(157)	(232)
Ending Balance	$433	$775

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14. Commitments and Contingencies

12 Months Ended

Dec. 31, 2013

Notes

14. Commitments and Contingencies

14.  COMMITMENTS AND CONTINGENCIES

The Bank is a defendant in certain claims and legal actions arising in the ordinary course of business.  In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company.