4. Loans and Allowance For Loan Losses (Tables)

12 Months Ended

Dec. 31, 2015

Tables/Schedules

Schedule of the Composition of Net Loans

The composition of the net loans is as follows:

	December 31,	December 31,
(In 000's)	2015	2014
Commercial and industrial:
Commercial	$               1,535	$                 2,563
SBA loans	40	168
Asset-based	1,487	1,904
Total commercial and industrial	3,062	4,635
Commercial real estate:
Commercial mortgages	13,774	15,470
SBA loans	353	525
Construction	2,175	3,423
Religious organizations	10,112	12,138
Total commercial real estate	26,414	31,556
Consumer real estate:
Home equity loans	897	1,047
Home equity lines of credit	20	22
1-4 family residential mortgages	1,924	2,228
Total consumer real estate	2,841	3,297
Total real estate	29,255	34,853
Consumer and other:
Consumer installment	-	7
Student loans	1,081	1,221
Other	121	145
Total consumer and other	1,202	1,373
Loans, net	$            33,519	$               40,861

Schedule of Activity in Related Party Loans

Activity in related party loans is presented in the following table. 

	2015	2014
Balance outstanding at December 31,	$ 845,477	$    858,861
Principal additions	-	52,000
Disaffiliations	-	-
Principal reductions	(70,399)	(65,384)
Balance outstanding at December 31,	$ 775,078	$     845,477

Schedule of Age Analysis of Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 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	$       -	$        -	$         110	$       110	$      1,425	$      1,535
SBA loans	-	-	40	40	-	40
Asset-based	11	-	289	300	1,187	1,487
Total commercial and industrial	11	-	439	450	2,612	3,062
Commercial real estate:
Commercial mortgages	169	39	1,335	1,543	12,231	13,774
SBA loans	-	-	271	271	82	353
Construction	-	-	-	-	2,175	2,175
Religious organizations	-	-	471	471	9,641	10,112
Total commercial real estate	169	39	2,077	2,285	24,129	26,414
Consumer real estate:
Home equity loans	56	125	358	539	358	897
Home equity lines of credit	-	-	-	-	20	20
1-4 family residential mortgages	35	-	129	164	1,760	1,924
Total consumer real estate	91	125	487	703	2,138	2,841
Total real estate	260	164	2,564	2,988	26,267	29,255
Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	66	129	-	195	886	1,081
Other	2	-	-	2	119	121
Total consumer and other	68	129	-	197	1,005	1,202
Total loans	$   339	$    293	$      3,003	$      3,635	$    29,884	$    33,519

United Bancshares, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2015 and 2014

An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 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	$                 -	$             -	$              248	248	$          2,315	$             2,563
SBA loans	-	-	48	48	120	168
Asset-based	-	-	-	-	1,904	1,904
Total Commercial and industrial	-	-	296	296	4,339	4,635
Commercial real estate:
Commercial mortgages	17	83	985	1,085	14,385	15,470
SBA loans	-	-	118	118	407	525
Construction	-	-	-	-	3,423	3,423
Religious organizations	-	-	520	520	11,618	12,138
Total Commercial real estate	17	83	1,623	1,723	29,833	31,556
Consumer real estate:
Home equity loans	246	-	368	614	433	1,047
Home equity lines of credit	-	-	-	-	22	22
1-4 family residential mortgages	-	-	194	194	2,034	2,228
Total consumer real estate	246	-	562	808	2,489	3,297
Total real estate	263	83	2,185	2,531	32,322	34,853
Consumer and other:
Consumer installment	-	-	-	-	7	7
Student loans	136	88	-	224	997	1,221
Other	12	-	-	12	133	145
Total consumer and other	148	88	-	236	1,137	1,373
Total loans	$            411	$          171	$           2,481	$         3,063	$        37,798	$           40,861

Schedule of Impaired Loans

  Year-end 2015 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	$  818	$  353	$     -	$    353	$     -	$   446	$       -
SBA  loans	46	-	46	46	-	38	2
Asset-based	40	40	-	40	-	54	2
Total Commercial and industrial	904	393	46	439	-	538	4
Commercial real estate:
Commercial mortgages	1,334	810	524	1,334	91	579	9
SBA  Loans	271	271	-	271	-	161	2
Religious Organizations	471	471	-	471	-	630	2
Total Commercial real estate	2,076	1,552	524	2,076	91	1,370	13
Total Loans	$  2,980	$ 1,945	$  570	$ 2,515	$  91	$ 1,908	$     17

United Bancshares, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2015 and 2014

Year-end 2014 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	$ 501	$  38	$   210	$   248	$  199	$   248	$   3
SBA  loans	94	46	48	94	48	52	-
Asset-based	40	40	-	40	-	4	1
Total Commercial and industrial	635	124	258	382	247	304	4
Commercial real estate:
Commercial mortgages	985	616	369	985	27	933	3
SBA  Loans	118	118	-	118	-	124	-
Religious Organizations	520	520	-	520	-	607	-
Total Commercial real estate	1,623	1,254	369	1,623	27	1,664	3
Total Loans	$2,258	$1,378	$  627	$  2,005	$ 274	$ 1,968	$   7

Schedule of Bank Loans by Class According to Credit Quality

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, 2015
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$    285	$     922	$      16	$     58	$    254	$      -	$  1,535
SBA loans	-	-	-	-	40	-	40
Asset-based	-	900	222	-	289	76	1,487
	285	1,822	238	58	583	76	3,062
Commercial real estate:
Commercial mortgages	-	10,689	1,098	613	1,151	223	13,774
SBA Loans	-	82	-	-	271	-	353
Construction	-	2,175	-	-	-	-	2,175
Religious organizations	-	7,624	1,131	886	471	-	10,112
	-	20,570	2,229	1,499	1,893	223	26,414
Total commercial loans	$    285	$ 22,393	$  2,467	$ 1,557	$   2,476	$   299	$29,476

			Residential Mortgage and Consumer Loans December 31, 2015
	Performing	Nonperforming		Total
Consumer Real Estate:
Home equity	$     539	$   358		$    897
Home equity line of credit	20	-		20
1-4 family residential mortgages	1,795	129		1,924
	2,354	487		2,841
Consumer Other:
Consumer Installment	-	-		-
Student loans	1,081	-		1,081
Other	121	-		121
	1,202	-		1,202
Total  consumer loans	$  3,556	$   487		$ 4,043
Total loans					$33,519

United Bancshares, Inc. and Subsidiary

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED

December 31, 2015 and 2014

(In 000's)		Commercial Loans, December 31, 2014
	Good/ Excellent	Satisfactory	Pass	Special Mention	Substandard	Doubtful	Total
Commercial and industrial:
Commercial	$ 300	$ 1,321	$ 474	$ 220	$ 113	$ 135	$ 2,563
SBA loans	-	80	-	-	88	-	168
Asset-based	-	1,734	124	-	46	-	1,904
	300	3,135	598	220	247	135	4,635
Commercial real estate:
Commercial mortgages	-	13,024	724	57	1,348	317	15,470
SBA Loans	-	237	170	-	118	-	525
Construction	-	3,423	-	-	-	-	3,423
Religious organizations	-	9,730	1,185	703	520	-	12,138
	-	26,414	2,079	760	1,986	317	31,556
Total commercial loans	$ 300	$ 29,549	$ 2,677	$ 980	$ 2,233	$ 452	$ 36,191

		Residential Mortgage and Consumer Loans December 31, 2014
	- Performing/Nonperforming
	Performing	Nonperforming	Total
Consumer Real Estate:
Home equity	$ 679	$ 368	$ 1,047
Home equity line of credit	22	-	22
1-4 family residential mortgages	2,034	194	2,228
	2,735	562	3,297
Consumer Other:
Consumer Installment	7	-	7
Student loans	1,221	-	1,221
Other	145	-	145
	1,373	-	1,373
Total  consumer loans	$ 4,108	$ 562	$ 4,670
Total loans				$40,861

Schedule of Age Analysis of Allowance for Loan Losses

An analysis of the activity in the allowance for loan losses for the years 2015 and 2014 is as follows:

(in 000's)		For the Year Ended December 31, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$             403	$          300	$                20	$            12	$         735
Provision for loan losses	3	(47)	(18)	(6)	(68)
Charge-offs	(259)	(3)	-	(17)	(279)
Recoveries	4	-	6	20	30
Net charge-offs	(255)	(3)	6	3	(249)
Ending balance	$            151	$          250	$              8	$             9	$        418

(in 000's)		For the Year Ended December 31, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Beginning balance	$       483	$       280	$          59	$         17	$      839
Provision for loan losses	169	20	(28)	1	162
Charge-offs	(253)	-	(19)	(30)	(302)
Recoveries	4	-	8	24	36
Net charge-offs	(249)	-	(11)	(6)	(266)
Ending balance	$       403	$      300	$         20	$         12	$      735

(in 000's)		As of December 31, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$ -	$ 91	$ -	$ -	$ 91
Loans collectively  evaluated for impairment	151	159	8	9	327
	$ 151	$ 250	$ 8	$ 9	$ 418
Loans, ending balance:
Loans individually evaluated for impairment	$ 439	$ 2,076	$ -	$ -	$ 2,515
Loans collectively  evaluated for impairment	2,623	24,338	2,841	1,202	31,314
Total	$ 3,062	$ 26,414	$ 2,841	$ 1,202	$ 33,519

		As of December 31, 2014
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer and other loans	Total
Period-end amount allocated to:
Loans individually evaluated for impairment	$ 247	$ 27	$ -	$ -	$ 274
Loans collectively  evaluated for impairment	156	273	20	12	461
	$ 403	$ 300	$ 20	$ 12	$ 735
Loans, ending balance:
Loans individually evaluated for impairment	$ 382	$ 1,623	$ -	$ -	$ 2,005
Loans collectively  evaluated for impairment	4,253	29,933	3,297	1,373	$ 38,856
Total	$ 4,635	$ 31,566	$ 3,297	$ 1,373	$ 40,861