Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

PART I - OTHER INFORMATION

Item 1. Financial Statements (unaudited)

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

Assets:	June 30, 2016	December 31, 2015
Cash and due from banks	$2,009,676	$2,107,359
Interest-bearing deposits with banks	311,012	310,739
Federal funds sold	2,902,000	8,364,000
Cash and cash equivalents	5,222,688	10,782,098

Investment securities available-for-sale, at fair value	6,702,889	7,572,029

Loans held for sale	7,136,996	3,260,761

Loans held at fair value	3,237,904	2,458,930

Loans, net of unearned discounts and deferred fees	30,713,493	33,519,042
Less allowance for loan losses	(354,563)	(418,013)
Net loans	30,358,930	33,101,029
Bank premises and equipment, net	462,764	492,730
Accrued interest receivable	202,565	175,416
Other real estate owned Core Deposit intangible	446,777 251,582	479,627 199,781
Prepaid expenses and other assets	478,041	461,837
Total assets	$54,501,137	$58,984,238
Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits, noninterest-bearing	$16,045,953	$16,417,150
Demand deposits, interest-bearing	12,372,375	13,605,888
Savings deposits	11,322,524	11,680,878
Time deposits, under $100,000	4,002,748	7,505,729
Time deposits, $100,000 and over	7,563,345	6,752,759
Total deposits	51,306,945	55,962,404
Accrued interest payable	12,998	9,157
Accrued expenses and other liabilities	294,812	332,915
Total liabilities	51,614,756	56,304,476

Shareholders’ equity:
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 124,342 issued and outstanding at June 30, 2015 and 136,842 issued and outstanding at December 31, 2014	993	993
Common stock, $0.01 par value; 2,000,000 shares authorized;
826,921 issued and outstanding at June 30, 2015 and 876,921 issued and outstanding at December 31, 2014	8,269	8,269
Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value;
191,667 issued and outstanding at December 31, 2014	-	-
Additional paid-in-capital	14,752,644	14,752,644
Accumulated deficit	(11,946,971)	(12,062,818)
Accumulated other comprehensive loss	71,261	(19,326)
Total shareholders’ equity	2,886,382	2,679,762
Total liabilities and shareholders’ equity	$54,501,137	$58,984,238

The accompanying notes are an integral part of these statements.

The accompanying notes are an integral part of these statements.

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	Three Months ended June 30, 2016	Three Months ended June 30, 2015	Six Months ended June 30, 2016	Six Months ended June 30, 2015
Interest income:
Interest and fees on loans	$ 689,160	$ 582,012	$1,228,940	$1,244,690
Interest on investment securities	40,699	44,843	84,952	92,591
Interest on federal funds sold	7,585	2,968	17,227	4,259
Interest on time deposits with other banks	171	164	290	326
Total interest income	737,615	629,987	1,331,409	1,341,866

Interest expense:
Interest on time deposits	8,852	9,837	17,356	19,792
Interest on demand deposits	5,987	6,162	12,099	12,279
Interest on savings deposits	1,398	1,465	2,816	2,937
Total interest expense	16,237	17,464	32,271	35,008
Net interest income	721,378	612,523	1,299,138	1,306,858
(Credit) provision for loan losses	30,000	(40,000)	(5,000)	(100,000)

Net interest income after provision for loan losses	691,378	652,523	1,304,138	1,406,858

Noninterest income:
Customer service fees	90,412	139,274	176,267	235,552
ATM fee income	29,294	31,745	56,014	63,149
Gain on sale of loans	99,414	-	311,973	473,706
Loss on sale of other real estate	-	(2,289)	(2,495)	(2,289)
Net change in fair value of financial instruments	-	32,143	(73,873)	(238,431)
Loan syndication fees	-	85,000	-	85,000
Other income	486,485	21,633	524,159	26,610
Total noninterest income	705,605	307,506	992,045	643,297

Noninterest expense:
Salaries, wages and employee benefits	372,676	404,366	764,616	803,379
Occupancy and equipment	240,481	249,740	478,637	502,244
Office operations and supplies	83,114	81,922	166,414	150,382
Marketing and public relations	11,325	8,337	27,720	26,189
Professional services	75,973	74,964	149,131	165,415
Data processing	100,547	89,615	209,295	187,087
Other real estate expense	22,800	(23,182)	57,000	(63,214)
Loan and collection costs	23,929	46,490	37,561	103,771
Deposit insurance assessments	30,174	34,200	58,576	66,400
Other operating	119,612	111,526	231,198	211,598
Total noninterest expense	1,080,631	1,077,978	2,180,148	2,153,251
Net loss before income taxes	316,352	(117,949)	116,035	(103,096)
Provision for income taxes	-	-	-	-
Net profit (loss)	$316,352	$ (117,949)	$ 116,035	$ (103,096)
Net loss per common share—basic and diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Weighted average number of common shares	826,921	826,921	826,921	986,262
Comprehensive loss:
Net profit (loss)	$316,352	$ (117,949)	$116,035	$ (103,096)
Unrealized (losses) gains on available for sale securities	26,639	(78,421)	90,586	(21,233)
Total comprehensive profit (loss)	$342,991	$ (196,370)	$206,621	$ (124,329)

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

	2016	2015

Cash flows from operating activities:
Net loss	$ 116,035	$ (103,096)
Adjustments to reconcile net loss to net cash
provided by operating activities:
(Credit)provision for loan losses	(5,000)	(100,000)
Amortization of premiums on investments	7,111	9,083
Proceeds from the sale of other real estate	30,355	40,913
Depreciation on fixed assets	92,791	88,678
Net change in fair value of financial instruments	(73,873)	238,431
Gain on sale of loans	(311,973)	(473,706)
Loss on sale of other real estate	2,495	2,289
(Write-up) Write-down of other real estate owned	-	(88,460)
Proceeds from the sale of loans held-for-sale	3,137,250	4,407,339
Amortization of servicing asset	11,317	-
Loans originated for sale	(7,406,612)	(1,823,367)
(Increase) decrease in accrued interest receivable and
other assets	(106,471)	(180,910)
Increase (decrease) in accrued interest payable and
other liabilities	(34,262)	(4,937)
Net cash provided by operating activities	(4,540,837)	2,012,257

Cash flows from investing activities:
Proceeds from maturity and principal reductions of
available-for-sale investment securities	3,302,847	1,064,615
Purchase of securities available-for-sale	(2,350,234)	(49)
Net decrease (increase) in loans	2,747,098	4,014,805
Purchase of bank premises and equipment	(62,825)	(48,464)
Net cash provided by (used in) investing activities	3,636,886	5,030,907

Cash flows from financing activities:
Net decrease in deposits	(4,655,459)	(1,957,519)
Net cash used in financing activities	(4,655,459)	(1,957,519)
Net increase in cash and cash equivalents	(5,559,410)	5,085,645
Cash and cash equivalents at beginning of period	10,782,098	3,236,582
Cash and cash equivalents at end of period	$5,222,688	$ 8,322,227
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$28,430	$ 37,107
Noncash transfer of loans to other real estate	$-	$ 148,241

The accompanying notes are an integral part of these statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(unaudited)

1. Significant Accounting Policies

United Bancshares, Inc. (the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956. The Company's principal activity is the ownership and management of its wholly owned subsidiary, United Bank of Philadelphia (the "Bank").

During interim periods, the Company follows the accounting policies set forth in its Annual Report on Form 10-K filed with the Securities and Exchange Commission. Readers are encouraged to refer to the Company's Form 10-K for the fiscal year ended December 31, 2015 when reviewing this Form 10-Q. Quarterly results reported herein are not necessarily indicative of results to be expected for other quarters.

In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company's consolidated financial position as of June 30, 2016 and December 31, 2015 and the consolidated results of its operations and its cash flows for the three and six months ended June 30, 2016 and 2015.

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.

Commitments

In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.

Contingencies

The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.

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 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.

Loans Held at Fair Value

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.

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.

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 Loan-to-Value 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.

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.

Income Taxes

Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities. Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not. For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards. If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount.

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.

Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

2. Net Loss Per Share

The calculation of net loss per share follows:

	Three Months Ended June 30, 2016	Three Months Ended June 30, 2015	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Basic:
Net loss available to common shareholders	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Average common shares outstanding-basic	826,921	826,921	826,921	986,262
Net loss per share-basic	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Diluted:
Average common shares-diluted	826,921	826,921	826,921	986,262
Net loss per share-diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)

Wells Fargo (formerly Wachovia Corporation) owned 241,666 shares of UBS Common Stock (50,000 voting shares); however, on February 18, 2015, Wells Fargo returned all shares (voting and non voting) for cancellation.

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 loss per share calculations.

3.Changes in Accumulated Other Comprehensive Income

The following table presents the changes in other comprehensive income:

	Three Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 40	$ 13	$ 27
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 40	$ 13	$ 27

	Three Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (104)	$ 26	$ (78)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (104)	$ 26	$ (78)

	Six Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 135	$ 44	$ 91
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 135	$ 44	$ 91

	Six Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (32)	$ 11	$ (21)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (32)	$ 11	$ (21)

4. New Authoritative Accounting Guidance

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 adoption of this amendment had no impact on the Company’s consolidated financial statements.

elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

5. Investment Securities

The following is a summary of the Company's investment portfolio:

(In 000’s)	June 30, 2016
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	Value
Available-for-sale:
U.S. Government agency securities	$ 2,950	$ 3	$ -	$ 2,953
Government Sponsored Enterprises residential mortgage-backed securities	3,517	103	-	3,620
Investments in money market funds	130	-	-	130
	$6,597	$ 106	$ -	$ 6,703
	December 31, 2015
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$ 3,697	$ 3	$ (38)	$ 3,662
Government Sponsored Enterprises residential mortgage-backed securities	3,774	36	(30)	3,780
Investments in money market funds	130	-	-	130
	$ 7,601	$ 39	$ (68)	$ 7,572

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows:

(In 000’s)	Amortized Cost		Fair Value
Due in one year		`$-`	`$-`
Due after one year through five years		`-`	`-`
Due after five years through ten years		`2,950`	`2,953`
Government Sponsored Enterprises residential mortgage-backed securities		`3,517`	`3,620`
Total debt securities		`6,467`	`6,573`
Investments in money market funds		`130`	`130`
		`$6,597`	`$6,703`

Expected maturities will differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalties.

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016:

	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	9	$ 2,703	$ 3	$ -	$ -	$ 2,703	$ 3

Government Sponsored Enterprises residential
mortgage-backed securities	55	2,042	50	53	1,341	3,383	103
Total temporarily
impaired investment
Securities	64	$ 4,745	$ 53	$ 53	$ 1,341	$ 6,086	$ 106

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2015:

	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	9	$ 2,416	$ (32)	$ 243	$ (6)	$ 2,659	$ (38)

Government Sponsored Enterprises residential
mortgage-backed securities	8	1,486	(19)	227	(11)	1,713	(30)
Total temporarily
impaired investment
securities	17	$ 3,902	$ (51)	$ 470	$ (17)	$ 4,372	$ (68)

Government Sponsored Enterprises residential mortgage-backed securities. Unrealized losses on the Company’s investment in Government Sponsored Enterprises residential mortgage-backed securities were caused by market 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 basis of the Company’s investments. Because the decline in fair value is attributable to changes in market 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 basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired.

U.S. Government and Agency Securities. Unrealized losses on the Company's investments in direct obligations of U.S. government agencies were caused by market 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.

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, the Company reviews 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, the intent to sell a security or whether it is more likely than not the Company 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, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value.

6. Loans and Allowance for Loan Losses

The composition of the Bank’s loan portfolio is as follows:

(Dollars in thousands)	June 30, 2016	December 31, 2015
Commercial and industrial	$ 2,904	$ 3,062
Commercial real estate	24,066	26,414
Consumer real estate	2,709	2,841
Consumer loans other	1,042	1,202
Total loans	$ 30,722	$ 33,519

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 an eight-quarter rolling 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. During the six months ended June 30, 2016 the Bank did not change any of its qualitative factors in any segment of the loan portfolio. In addition, the average historical loss factors were relatively unchanged as there were no charge-offs during the quarter. 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.

The following table presents an analysis of the allowance for loan losses.

(in 000's)		For the Three months ended June 30, 2016
	Commercial and industrial			Commercial real estate		Consumer real estate	Consumer loans Other	Total
Beginning balance	`$120`			`$241`		`$14`	`$9`	`$384`
Provision (credit) for loan losses	`-`			`-`		`-`	`-`	`-`

Charge-offs	`-`			`-`		`-`	`-`	`-`
Recoveries	`-`			`-`		`-`	`-`	`-`
Net (charge-offs) recoveries	`-`			`-`		`-`	`-`	`-`

Ending balance	`$87`			`$245`		`$13`	`$10`	`$355`
(in 000's)		For the Three months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$344`		`$300`		`$21`		`$15`	`$680`
Provision (credit) for loan losses	`24`		`(64)`		`-`		`-`	`(40)`

Charge-offs	`(48)`		`-`		`-`		`(2)`	`(50)`
Recoveries	`-`		`-`		`2`		`4`	`6`
Net (charge-offs) recoveries	`(48)`		`-`		`2`		`2`	`(44)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`
(in 000's)		For the Six months ended June 30, 2016
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$151`		`$250`		`$8`		`$9`	`$418`
Provision (credit) for loan losses	`(5)`		`-`		`-`		`-`	`(5)`

Charge-offs	`-`		`(41)`		`(22)`		`(3)`	`(66)`
Recoveries	`2`		`-`		`2`		`4`	`8`
Net (charge-offs) recoveries	`2`		`(41)`		`-`		`1`	`(58)`

Ending balance	`$87`		`$245`		`$13`		`$10`	`$355`
(in 000's)		For the Six months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$403`		`$300`		`$20`		`$12`	`$735`
Provision (credit) for loan losses	`(36)`		`(64)`		`-`		`-`	`(100)`

Charge-offs	`(48)`		`-`		`-`		`(14)`	`(62)`
Recoveries	`1`		`-`		`3`		`19`	`23`
Net (charge-offs)recoveries	`(47)`		`-`		`3`		`5`	`(39)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`

(in 000's)		June 30, 2016
	Commercial and industrial		Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -		$ 71	$ -	$ -	$ 71
Loans collectively evaluated for impairment	173		99	2	10	284
	$ 173		$ 170	$ 2	$ 10	$ 355

Loans, ending balance:
Loans individually evaluated for impairment	$ 437		$ 1,747	$ -	$ -	$ 2,184
Loans collectively evaluated for impairment	2,468		22,319	2,709	1,042	28,538
Total	$ 2,905		$ 24,066	$ 2,709	$ 1,042	$ 30,722

			December 31, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -	$ 91	$ -	$ -	$ 91
Loans collectively evaluated for impairment	151	159	8	9	327
	$ 151	$ 50	$ 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	31,004
Total	$ 3,062	$ 26,414	$ 2,841	$ 1,202	$ 33,519

Nonperforming and Nonaccrual and Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$ -	$ -	$ 109	$ 109	$ 1,348	$ 1,457
SBA loans	-	-	39	39	-	39
Asset-based	-	-	289	289	1,120	1,409
Total Commercial and industrial	-	-	437	437	2,468	2,905

Commercial real estate:
Commercial mortgages	-	18	1,280	1,298	11,538	12,836
SBA loans	-	-	263	263	325	588
Construction	-	-	-	-	1,250	1,250
Religious organizations	-	-	204	204	9,188	9,392
Total Commercial real estate	-	18	1,747	1,765	22,301	24,066

Consumer real estate:
Home equity loans	-	147	333	480	353	833
Home equity lines of credit	-	-	-	-	20	20
1-4 family residential mortgages	-	-	129	129	1,727	1,856
Total consumer real estate	-	147	462	609	2,100	2,709

Total real estate	-	165	2,209	2,374	24,401	26,775

Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	24	71	-	95	826	921
Other	-	1	-	1	120	121
Total consumer and other	24	72	-	96	946	1,042

Total loans	$ 24	$ 237	$ 2,646	$ 2,907	$ 27,815	$ 30,722

An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	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

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.

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.

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, but no later than 90 days past due.

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


(In 000's)				Commercial Loans June 30, 2016
	Good/ Excellent	Satisfactory		Pass	Special Mention	Substandard		Doubtful	Total



Commercial and industrial:
Commercial	$ 250	$ 894		$ 12	$ 48	$ 253		$ -	$ 1,457
SBA loans	-	-		-	-	39		-	39
Asset-based	-	834		210	-	289		76	1,409
	250	1,728		222	48	581		76	2,905
Commercial real estate:
Commercial mortgages	-	9,035		1,937	567	1,076		221	12,836
SBA Loans	-	325		-	-	263		-	588
Construction	-	1,250		-	-	-		-	1,250
Religious organizations	35	6,274		1,882	997	204		-	9,392
	35	16,884		3,819	1,564	1,543		221	24,066

Total commercial loans	$ 285	$ 18,612		$ 4,041	$ 1,612	$ 2,124		$ 297	$ 26,971


			Residential Mortgage and Consumer Loans June 30, 2016
	Performing			Nonperforming			Total

Consumer Real Estate:
Home equity	$ 500			$ 333			$ 833
Home equity line of credit	20			-			20
1-4 family residential mortgages	1,727			129			1,856
	2,247			462			2,709

Consumer Other:
Consumer Installment	-			-			-
Student loans	921			-			921
Other	121			-			121
	1,042			-			1,042

Total consumer loans	$ 3,289			$ 462			$ 3,751

Total loans									$ 30,722

(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	$ 22,392	$ 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

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. Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions. There were no partial charge-offs.

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

Impaired loans as of June 30, 2016 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 109	$ 109	$ -	$ 109	$ -
SBA Loans	39	39	-	39	-
Asset-based	289	46	243	289	-
Total commercial and industrial	437	194	243	437	-

Commercial real estate:
Commercial mortgages	1,280	806	474	1,280	67
SBA Loans	263	163	100	263	4
Religious organizations	204	204	-	204	-
Total commercial real estate	1,747	1,173	574	1,747	71

Total loans	$ 2,184	$ 1,367	$ 817	$ 2,184	$ 71

Impaired loans as of December 31, 2015 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 818	$ 353	$ -	$ 353	$ -
SBA loans	46	-	46	46	-
Asset-based	40	40	-	40	-
Total commercial and industrial	904	393	46	439	-

Commercial real estate:
Commercial mortgages	1,334	810	524	1,334	91
SBA Loans	271	271	-	271	-
Religious organizations	471	471	-	471	-
Total commercial real estate	2,076	1,552	524	2,076	91

Total loans	$2,980	$ 1,945	$ 570	$ 2,515	$ 91

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. The following tables present additional information about impaired loans.

(In 000's)	Three Months Ended June 30, 2016		Three Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 201	$ -
SBA loans	39	-	46	1
Asset-based	289	3	73	1
Total commercial and industrial	437	3	320	2

Commercial real estate:
Commercial mortgages	1,308	4	934	-
SBA loans	264	-	113	-
Religious organizations	242	-	487	-
Total commercial real estate	1,814	4	1,534	-

Total loans	$ 2,251	$ 7	$ 1,854	$ 2

(In 000's)	Six Months Ended June 30, 2016		Six Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 200	$ -
SBA loans	39	-	46	2
Asset-based	289	-	40	1
Total commercial and industrial	437	-	286	3

Commercial real estate:
Commercial mortgages	1,097	13	896	-
SBA loans	103	5	112	-
Religious organizations	348	-	488	-
Total commercial real estate	1,548	18	1,496	-

Total loans	$ 1,985	$ 18	$ 1,782	$ 3

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 troubled debt restructuring (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties). Based on this review and evaluation, none of the modified loans met the criteria of a troubled debt restructuring. Therefore, the Company had no troubled debt restructurings at June 30, 2016 and December 31, 2015.

7. 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. Activity in other real estate owned for the periods was as follows:

(in 000's)	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015

Beginning balance	`$564`	`$708`	`$433`	`$564`
Additions, transfers from loans	`237`	`59`	`477`	`148`
Sales	`(305)`	`(43)`	`(140)`	`(43)`
	`496`	`726`	`770`	`669`
Write-ups (downs)	`(49)`	`33`	`(13)`	`88`
Ending Balance	`$447`	`$757`	`$757`	`$757`

The following schedule reflects the components of other real estate owned:

(in 000's)	June 30, 2016	December 31, 2015
Commercial real estate	$ 316	$ 297
Residential real estate	131	183
Total	$ 447	$ 480

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

	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
(in 000's)	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Insurance	`$2`	`$4`	`$6`	`$8`
Legal Fees	`16`		`16`
Professional fees	`-`		`4`
Real estate taxes	`4`	`3`	`10`	`6`
Utilities	`1`	`1`	`1`	`1`
Other	`-`	`-`	`-`	`10`
Transfer-in write-up	`49`	`(31)`	`49`	`(88)`
Impairment charges (net)	`-`	`-`	`-`	`-`
Total	`$72`	`$(23)`	`$86`	`$(63)`

8. Fair Value

Fair Value Measurement

financial instruments. 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 in FASB ASC 820 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 at fair value in three levels as follows:

Level 1

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

Level 2

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

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

·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

·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.

·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.

A financial instrument’s 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 (“AFS”): Where quoted prices are available in an active market, securities would be classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds and mutual 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 models. 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 for loans for which the guaranteed portion is intended to be sold are estimated by using actual quoted market bids on a loan by loan basis. Fair values for the un-guaranteed portion of SBA loans 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 Measured at Fair Value at June 30, 2016	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	$ 2,953	$ -	$ 2,953	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,620	-	3,620	-
Money Market Funds	130	130	-	-
Total	$ 6,703	$ 130	$ 6,573	$ -
Loans held for sale	$ 7,137	$ -	$ 7,137	$ -
Loans held at fair value	$ 3,238	$ -	$ -	$ 3,238

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at December 31, 2015	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	$ 3,662	$ -	$ 3,662	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,780	-	3,780	-
Money Market Funds	130	130	-	-
Total	$ 7,572	$ 130	$ 7,442	$ -
Loans held for sale	$ 3,261	$ -	$ 3,261	$ -
Loans held at fair value	$ 2,459	$ -	$ -	$ 2,459

The fair value of the Bank’s AFS securities portfolio was approximately $7,572,000 and $7,442,000 at June 30, 2016 and December 31, 2015, 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 all relevant information. There were no transfers between Level 1 and Level 2 assets during the periods ended June 30, 2016 and 2015.

When estimating the fair value of 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	June 30, 2016 Fair value	December 31, 2015 Fair Value	Principal valuation techniques	Significant observable inputs	June 30, 2016 Range of inputs	December 31, 2015 Range of inputs
Loans held at fair value:	$ 3,238	$ 2,459	Discounted cash flow	Constant prepayment rate	7.33% to 10.189 %	7.10% to 9.88%
				Weighted average discount rate	7.22% to 10.12%	7.76% to 9.94%
				Weighted average life	3.20yrs to 9.86 yrs	3.40 yrs to 8.78 yrs

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:

(in 000’s)	Loans held at fair value
Balance at December 31, 2015	$ 2,459
Origination of loans	-
Principal repayments	-
Change in fair value of financial instruments	-
Balance at June 30, 2016	$ 3,238

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). The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of June 30, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015.

Carrying Value at June 30, 2016:

(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 3 months ended

Impaired loans

$ 2,184

$ -

$ 2,184

$ -

Other real estate owned (“OREO”)

$ 447

$ -

$ 447

Carrying Value at December 31, 2015:

(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 12 months ended

Impaired Loans

$ 2,424

$ -

$ 2,424

$ -

Other real estate owned (“OREO”)

$ 480

$ -

$ 480

$ 39

if warranted by volatile market conditions, which may be discounted up to 10% based upon management’s review and the estimated cost of liquidation. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made on the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation allowance for impaired loans is adjusted as necessary based on changes in the value of collateral as well as the cost of liquidation. It is included in the allowance for loan losses in the consolidated statements of condition.

Fair Value of Financial Instruments

FASB ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

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

Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values.

Investment securities: Fair values for investment securities available-for-sale are as described above. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.

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 held at fair value: The fair value of loans held at fair value 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.

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.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value.

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.

Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value.

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. The carrying amount of accrued interest payable approximates fair market value.

The fair value of assets and liabilities are depicted below:

		June 30, 2016		December 31, 2015
(in 000’s)	Level in	Carrying	Fair	Carrying	Fair
	Value Hierarchy	Amount	Value	Amount	Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$ 5,223	$ 5,223	$ 10,782	$ 10,782
Available for sale securities	(1)	6,703	6,703	7,572	7,572
Loans held for sale	Level 2	7,137	7,137	3,261	3,261
Loans held at fair value	Level 3	3,238	3,238	2,459	2,459
Loans, net of allowance for loan losses	(2)	30,359	30,359	33,101	33,082
Accrued interest receivable	Level 2	203	203	175	175
Liabilities:
Demand deposits	Level 2	28,418	28,418	30,022	30,022
Savings deposits	Level 2	11,323	11,323	11,681	11,681
Time deposits	Level 2	11,566	11,566	14,259	14,242
Accrued interest payable	Level 2	13	13	9	9

(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.

9. Regulatory

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 requirements and status of items included in the Consent Orders are as follows:

Requirement	Status
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;	Board participation improved with attendance at board and committee meetings.

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;	A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.

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;	An engagement letter from a qualified consultant was received and approved by the Bank’s regulators. Upon acceptance, the review commenced in May 2012 and was completed in June 2012.

Formulate and implement written profit and budget plans for each year during which the orders are in effect;	Profit and budget plans have been prepared and submitted to regulators as required annually.

Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;	An annual comprehensive strategic plan was prepared and submitted to regulators as required.

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;	A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.

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 regulatory examination;	A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.

Eliminate all assets classified as “Loss” at its current regulatory examination;	All assets classified as “Loss” have been eliminated.

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;	The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.

Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;	The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.

Requirement	Status
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;	The Bank’s interest rate risk policy and procedures were submitted to regulators as required.

Revise its liquidity and funds management policy and update and review the policy annually;	The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.

Refrain from accepting any brokered deposits;	The Bank did not accept brokered deposits.

Refrain from paying cash dividends without prior approval of the FDIC and the Department;	The Bank did not pay cash dividends.

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	An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.

Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.	Quarterly reports were prepared and submitted as required.

The 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 June 20, 2016 and December 31, 2015, the Bank’s tier one leverage capital ratio was 5.06% and 4.57%, respectively, and its total risk based capital ratio was 8.56% and 8.50%, respectively. The net loss for the six months ended June 30, 2015 resulted in a decline in the tier one leverage ratio; however, the total risk based capital ratio increased because of the decrease in loans during the period that generally carry a higher risk weight than cash or investments. Management has developed and submitted a Capital Plan that focuses on the following:

1.Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital.

2.External equity investments—an investment banker has been engaged to help the Bank generate external capital investments.

As a result of the above actions, management believes that the Bank has and will continue to attempt to comply with the terms and conditions of the Orders and will continue to operate as a going concern and an independent financial institution for the foreseeable future.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

Special Cautionary Notice Regarding Forward-looking Statements

Certain of the matters discussed in this document and the documents incorporated by reference herein, including matters discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations” may constitute forward looking statements for the purposes of the Securities Act of 1933, as amended and the Securities Exchange Act of 1934, as amended, and may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of United Bancshares, Inc (“UBS”) to be materially different from future results, performance or achievements expressed or implied by such forward looking statements. The words “expect,” “anticipate,” “intended,” “plan,” “believe,” “seek,” “estimate,” “may,” and similar expressions are intended to identify such forward-looking statements. These forward looking statements include: (a) statements of goals, intentions and expectations; and (b) statements regarding business prospects, asset quality, credit risk, reserve adequacy and liquidity. UBS’ actual results may differ materially from the results anticipated by the forward-looking statements due to a variety of factors, including without limitation: (a) the effects of future economic conditions on UBS and its customers, including economic factors which affect consumer confidence in the securities markets, wealth creation, investment and consumer saving patterns; (b) UBS interest rate risk exposure and credit risk; (c) changes in the securities markets with respect to the market values of financial assets and the stability of particular securities markets; (d) governmental monetary and fiscal policies, as well as legislation and regulatory changes; (e) changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral and securities, as well as interest-rate risks; (f) changes in accounting requirements or interpretations; (g) the effects of competition from other commercial banks, thrifts, mortgage companies, consumer finance companies, credit unions securities brokerage firms, insurance companies, money-market and mutual funds and other financial institutions operating in the UBS’ trade market area and elsewhere including institutions operating locally, regionally, nationally and internationally, together with such competitors offering banking products and services by mail, telephone, computer and the internet; (h) any extraordinary events (such as the September 11, 2001 events), the war on terrorism and the U.S. Government’s response to those events or the U.S. Government becoming involved in a conflict in a foreign country including the war in Iraq; (i) the failure of assumptions underlying the establishment of reserves for loan losses and estimates in the value of collateral, and various financial assets and liabilities and technological changes being more difficult or expensive than anticipated; (j) UBS’ success in generating new business in its existing markets, as well as its success in identifying and penetrating targeted markets and generating a profit in those markets in a reasonable time; (k) UBS’ timely development of competitive new products and services in a changing environment and the acceptance of such products and services by its customers; (l) the recent downgrade , and any future downgrades, in the credit rating of the United States Government and federal agencies; (m) changes in technology being more expensive or difficult than expected; (n) the ability of key third party providers to perform their obligations to UBS and; (o) the Bank and UBS’ success in managing the risks involved in the foregoing, and (m) failure to comply with the Consent Orders with the FDIC and the Pennsylvania Department of Banking.

All written or oral forward-looking statements attributed to the Company are expressly qualified in their entirety by use of the foregoing cautionary statements. All forward-looking statements included in this Report are based upon information presently available, and UBS assumes no obligation to update any forward-looking statement.

Overview

The Company reported a net profit of approximately $ 316,000 ($ 0.38 per common share) for the quarter ended June 30, 2016 compared to a net loss of approximately $118,000 ($0.14 per common share) for the same quarter in 2015. The Company reported a net profit of approximately $116,000 ($0.14 per common share) for the six months ended June 30, 2016 compared to a net loss of approximately $103,000 ($0.10 per common share) for the same period in 2015. The improvement in financial performance is primarily related to the Bank’s SBA loan strategy as well as a reduction in the provision for loan losses. Management remains committed to further improving the Company’s operating performance by continuing to implement its profit enhancement strategies that are centered on small business lending products and services. The following actions are critical to ensure continued improvement in the Company’s financial performance:

Increase Capital. The critical importance of establishing and maintaining capital levels to support the Bank’s risk profile and growth is understood; however, capital continues to decline as a result of operating losses. A concentrated effort will be made to stabilize and strengthen the Bank’s capital by the following:

·Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital. Refer to the Earnings Enhancement discussion below.

·External equity investments—Potential investors will continue to be sought in 2017

Earnings enhancement plan. Management seeks to increase noninterest income and further reduce noninterest expense to achieve core earnings. The primary strategy continues to be to increase SBA loan origination and sell the guaranteed portion in the secondary market for a gain. During the six months ended June 30, 2016, noninterest income totaling approximately $236,000 (including fair value adjustments) was recognized utilizing this strategy. At June 30, 2016, the pipeline of SBA loans was more than $6 million and continues to grow.

General improvement has been made in reducing and controlling noninterest expense; however, there was an increase in legal fees and loan and collection related costs as a result of foreclosure activity during the quarter. Further, the Bank’s noninterest expense remains elevated when compared to its peer group. The Bank continues to incur a higher level of professional service fees (audit and legal) because of its SEC filing requirements as a result of having in excess of 1,200 shareholders. While there has been some improvement in noninterest expense, management will continue to seek further savings and efficiencies, where possible.

Another challenge to increased earnings is the restriction on asset growth because of the Bank’s current capital levels; however, the net interest margin continues to be a significant source of strength. The low cost of funds is the primary contributing factor. Management will continue to balance asset growth with capital adequacy requirements.

Manage asset quality to minimize credit losses and reduce collection costs. Asset quality trends showed some improvement during the quarter with a decline in nonperforming loans and delinquencies. Management will seek to make further progress by adhering to its underwriting standards as well as good customer relationship management practices. In addition, proactive monitoring of the loan portfolio is essential to the identification of emerging problem credits and is performed during bi-weekly Asset Quality Committee meetings. Forbearance, foreclosure and/or other appropriate collection methods will be used as necessary and may result in increased loan and collection expense. During the six months ended June 30, 2016, the Bank foreclosed collateral related to several non-performing loans and added approximately $200,000 to its other real estate owned portfolio.

Significant Accounting Policies

The preparation of consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities as of the dates of the balance sheets and revenues and expenditures for the periods presented. Therefore, actual results could differ from these estimates.

The Company considers that the determination of the allowance for loan losses involves a higher degree of judgment and complexity than its other significant accounting policies. The balance in the allowance for loan losses is determined based on management's review and evaluation of the loan portfolio in relation to past loss experience, the size and composition of the portfolio, current economic events and conditions, and other pertinent factors, including management's assumptions as to future delinquencies, recoveries and losses. All of these factors may be susceptible to significant change. 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.

The Company’s significant accounting policies are presented in Note 1 to the Company’s audited consolidated financial statements filed as part of the 2015 Annual Report on Form 10-K and in the footnotes to the Company’s unaudited financial statements filed as part of this Form 10-Q.

Selected Financial Data

The following table sets forth selected financial data for each of the following periods:

(Thousands of dollars, except per share data)	Quarter ended June 30, 2016	Quarter ended June 30, 2015	Six Months ended June 30, 2016	Six Months ended June 30, 2015
*Statement of operations information*:
Net interest income	$721,378	$ 613	$1,299	$1,307
(Credit) provision for loan losses	30	(40)	(5)	(100)
Noninterest income	706	308	992	643
Noninterest expense	1,081	1,078	2,180	2,153
Net loss	316	(118)	116	(103)
Net loss per share-basic and diluted	0.38	(0.14)	0.14	(0.10)

*Balance Sheet information:*	June 30, 2016	December 31, 2015
Total assets	$ 54,501	$ 58,984
Loans, net	30,359	33,101
Investment securities	6,703	7,572
Deposits	51,307	55,962
Shareholders' equity	2,886	2,680

*Ratios:**	Quarter ended June 30, 2016	Quarter ended June 30, 2015
Return on assets	0.18 %	(0.79)%
Return on equity	4.10 %	(15.26)

*annualized

Financial Condition

Sources and Uses of Funds

The financial condition of the Bank can be evaluated in terms of trends in its sources and uses of funds. The comparison of average balances in the following table indicates how the Bank has managed these elements. Average funding uses decreased approximately $ 2,103,000 or 3.89% during the quarter ended June 30, 2016 compared to the quarter ended March 31, 2016. Average funding sources decreased approximately $2,309,000 or 4.30%, during the same quarter.

Sources and Uses of Funds Trends

(Thousands of Dollars, except

percentages)	June 30, 2016			March 31, 2016
	Average	Increase (Decrease)	Increase (Decrease)	Average
	Balance	Amount	%	Balance
Funding uses:
Loans	$ 37,957	$ (41)	(0.11)%	$37,998
Investment Securities	7,225	(309)	(4.10)%	7,534
Federal funds sold	6,406	(1,753)	(21.49)%	8,159
Balances with other banks	311	-	-%	311
Total uses	$ 51,899	$ (2,103)	(3.89)%	$54,002
Funding sources:
Demand deposits
Noninterest-bearing	$ 16,054	$ (754)	(4.49)%	$16,808
Interest-bearing	12,465	(512)	(3.95)%	12,977
Savings deposits	11,311	(220)	(1.91)%	11,531
Time deposits	11,607	(823)	(6.62)%	12,430
Total sources	$ 51,437	$ (2,309)	(4.30)%	$53,746

Loans

Average loans decreased by approximately $41,000, or 0.11%, during the quarter ended June 30, 2016. Funding activity during the quarter exceeded $1.5 million but was offset by payoffs and sale activity totaling close to $4 million. During the six months ended June 30, 2015, the guaranteed portion of SBA loans originated in late 2014 were sold. In addition, the Bank participates in an investor real estate funding program (“NRIA”) whereby it provides funding during the construction phase and permanent “take-out” financing is pre-arranged at completion. During the six months ended June 30, 2015, the construction related to approximately $2.8 million of these loans was completed and the loans were paid off. Participation in this program is ongoing and dependent on the Bank’s overall liquidity level and other funding requirements.

The Bank’s commercial loan pipeline continues to grow as a result of its small business banking focus specifically targeting SBA loans. This strategy is designed to generate fee income from sales of the guaranteed portion as well as build loan volume. There are a significant number of small businesses in the region that may fall below minimum business loan levels of the money center banks in the region which provides an opportunity for the Bank to continue to grow its SBA lending as a niche business. Management will continue to work in alliance with its third party SBA loan origination group, commercial real estate brokers, accountants, lawyers, SBA brokers, and other centers of influence to build loan volume.

The Bank’s commercial loan pipeline continues to grow with a specific focus on SBA loan origination. At June 30, 2015, the pipeline totaled approximately $6.3 million in loans that are expected to close during 2015. The Bank’s consumer and residential mortgage loan portfolios continue to decline as a result of residential mortgages and home equity repayment activity as consumers refinance to take advantage of the continued low interest rate environment. The Bank does not originate residential mortgage loans and made a strategic shift in its lending program in 2012 to phase out consumer lending, including home equity loans and lines of credit.

The Bank’s loan portfolio continues to be concentrated in commercial real estate loans that comprise approximately $24.1 million, or 78%, of total loans at June 30, 2016 of which approximately $14.7 million are owner occupied. The Bank continues to have a strong niche in lending to religious organizations for which total loans at June 30, 2016 were approximately $9.2 million, or 39%, of the commercial real estate portfolio. Management closely monitors this concentration to proactively identify and manage credit risk for any conditions might negatively impact the level of tithes and offerings that provide cash flow for repayment. The composition of the net loans is as follows:

	June 30,	December 31,
(In 000's)	2016	2015


Commercial and industrial:
Commercial	$ 1,457	$ 1,535
SBA loans	39	40
Asset-based	1,409	1,487
Total commercial and industrial	2,905	3,062

Commercial real estate:

Commercial mortgages	12,836	13,774
SBA loans	588	353
Construction	1,250	2,175
Religious organizations	9,392	10,112
Total commercial real estate	24,066	26,414

Consumer real estate:
Home equity loans	833	897
Home equity lines of credit	20	20
1-4 family residential mortgages	1,856	1,924
Total consumer real estate	2,709	2,841

Total real estate	26,775	29,255

Consumer and other:
Consumer installment	-	-
Student loans	921	1,081
Other	121	121
Total consumer and other	1,042	1,202

Loans, net	$ 30,722	$ 33,519

Allowance for Loan Losses

The allowance for loan losses reflects management’s continuing evaluation of the loan portfolio, the diversification and size of the portfolio, and adequacy of collateral. Provisions are made to the allowance for loan losses in accordance with a detailed periodic analysis. This analysis includes specific reserves allocated to impaired loans based on underlying recovery values as well as a general reserve based on charge-off history and various qualitative factors including delinquency trends, loan terms, regulatory environment, economic conditions, concentrations of credit risk and other relevant data. The Bank utilizes an eight rolling quarter historical loss factor as management believes this best represents the current trends and market conditions. The allowance for loan losses as a percentage of total loans was 1.16% at June 30, 2016 compared to 1.80% at December 31, 2015.

Loans deemed “impaired” are those for which borrowers are no longer able to pay in accordance with the terms of their loan agreements. The Bank’s source of repayment is generally the net liquidation value of the underlying collateral. Impaired loans totaled approximately $2,184,000 at June 30, 2016 compared to $2,424,000 at December 31, 2015. The valuation allowance associated with impaired loans was approximately $71,000 and $91,000, at June 30, 2016 and December 31, 2015, respectively. The decrease in impaired loans is attributable to foreclosure activity as well as the charge-off of one loan totaling approximately $48,000 for which there was a specific reserve allocated. Management continues to work to reduce the level of classified and impaired loans. Forbearance, foreclosure and/or other appropriate collection methods will be used as necessary.

At June 30, 2016 and December 31, 2015, loans to religious organizations represented approximately $204,000 and $471,000, respectively, of total impaired loans. Management continues to work closely with its attorneys and the leadership of these organizations in an attempt to develop suitable repayment plans to avoid foreclosure. In general, loans to religious organizations are being monitored closely to proactively identify potential weaknesses in this area of high concentration.

Management uses all available information to recognize losses on loans; however, future additions may be necessary based on further deterioration in economic conditions and market conditions affecting underlying real estate collateral values. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the

Bank’s allowance for loan losses. Such agencies may require the Bank to recognize additions to the allowance based on their judgments of information available to them at the time of the examination. Although management uses the best information available, the level of the allowance for loan losses remains an estimate that is subject to significant judgment and short-term change.

The percentage of allowance to nonperforming loans was 13.42% down from 13.92% at December 31, 2015. The level of nonperforming loans to total loans decreased from 8.40% at December 31, 2015 to 8.96% at June 30, 2016 as a result of foreclosure activity related to several impaired loans. Approximately 83.5% of nonperforming loans are secured by real estate which serves to mitigate the risk of loss.

Loans more than 90 days past due that are still in the process of collection for which the full payment of principal and interest can reasonably be expected are not considered nonperforming. The following table sets forth information concerning nonperforming loans and nonperforming assets.

(In 000's)	June 30, 2016	December 31, 2015
Commercial and industrial:
Commercial	$ 109	$ 110
SBA loans Asset-based	39 289	40 289
Total commercial and industrial	437	439

Commercial real estate:
Commercial mortgages	1,280	1,335
SBA loans	263	271
Religious organizations	204	471
Total commercial real estate	1,747	2,077

Consumer real estate:
Home equity loans	333	358
1-4 family residential mortgages	129	129
Total consumer real estate	462	487

Total real estate	2,209	2,564

Total nonperforming loans	2,646	3,003
OREO	447	480
Total nonperforming assets	$ 3,093	$ 3,483

Nonperforming loans to total loans	8.40%	8.96%
Nonperforming assets to total loans and OREO	9.68%	10.24%
Nonperforming assets to total assets	5.67%	5.90%

Allowance for loan losses as a percentage of:
Total loans	1.16%	1.25%
Total nonperforming loans	13.42%	13.92%

The following table sets forth information related to loans past due 90 days or more and still accruing interest.

(In 000's)	June 30, 2016	December 31, 2015
Commercial real estate:
Commercial mortgages	$ 18	$ 39
Total commercial real estate	18	39

Consumer real estate:
Home equity loans	147	125
Total consumer real estate	147	125

Consumer and other:
Student loans	71 1	129
Total consumer and other	72	129
Total	$ 237	$ 293

Investment Securities and Other Short-term Investments

Average investment securities decreased by approximately $309,000, or 4.10%, during the quarter ended June 30, 2016. The decrease was primarily related to the call of one $250,000 agency security and mortgage-backed security paydowns during the quarter ended June 30, 2016.

The average yield on the investment portfolio declined to 2.25% for the six months ended June 30, 2016 compared to 2.29% for the six months ended June 30, 2015. The decline is a result of calls of higher yielding bonds during the period. The duration of the portfolio shortened to 3.5 years at June 30, 2015 compared to 3.9 years at December 31, 2014 as a result of market rate shifts during the year. Amortizing GSE mortgage-backed securities approximate 53% of the portfolio. The payments of principal and interest on these pools of GSE loans serve to provide monthly cashflow and are guaranteed by these entities that bear the risk of default. The Bank’s risk is prepayment risk when defaults accelerate the repayment activity. These loans have longer-term contractual maturities but are sometimes paid off/down before maturity or have repricing characteristics that occur before final maturity. Management’s goal is to maintain a portfolio with a relatively short duration to allow for adequate cash flow to fund loan origination activity and to manage interest rate risk.

Deposits

During the quarter ended June 30, 2016, average deposits decreased approximately $2,309,000, or 4.30%. The decrease was concentrated in time deposit accounts that decreased on average by approximately $823,000, or 6.62%, during the quarter. The decline was primarily related to several corporate certificates of deposit that were not renewed at maturity.

Noninterest bearing checking account balances decreased on average by $754,000, or 4.49%, during the quarter ended June 30, 2016. As small business loans are originated, primary operating accounts are required to be maintained at the Bank which serves to grow core deposits; however, balances fluctuate with normal business activity.

Average savings deposits declined by approximately $220,000, or 1.91%, as a result of general attrition.

Commitments and Lines of Credit

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. Commitments to extend credit fluctuate with the completion and conversion of construction lines of credit to permanent commercial mortgage loans and/or the closing of loans approved but not funded from one period to another.

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. Management believes the Bank has adequate liquidity to support the funding of unused commitments. The Bank's financial instrument commitments are summarized below:

June 30,

2016

December 31,

2015

Commitments to extend credit

$ 4,552,423

$5,903,000

Standby letters of credit

377,996

333,000

The level of commitments decreased during the six months ended June 30, 2015 as a result of the funding of a $1.6 million SBA loan. In addition, close to $3 million construction loans were completed and paid off during the period. More than $3 million of the Bank’s outstanding commitments consist of unused lines of credit with Fortune 500 corporations for which the Bank leads and/or participates in syndications that are not expected to be drawn upon.

Liquidity

The primary functions of asset/liability management are to assure adequate liquidity and maintain appropriate balance between interest-sensitive earning assets and interest-bearing liabilities. Liquidity management involves the ability to meet cash flow requirements of customers who may be either depositors wanting to withdraw funds or borrowers needing assurance that sufficient funds will be available to meet their credit needs. Interest rate sensitivity management seeks to avoid fluctuating net interest margins and to enhance consistent growth of net interest income through periods of changing interest rates.

By policy, the Bank’s minimum level of liquidity is 6.00% of total assets. At June 30, 2016, the Bank had total short-term liquidity, including cash and federal funds sold, of approximately $5.2 million, or 9.6% of total assets, compared to $10.8 million, or 18.3%, at December 31, 2015. The increase is related to approximately $ 4.4 million proceeds from the sale of the guaranteed portion SBA loans and loan payoffs received during the six months ended June 30, 2015.

The Bank's principal sources of asset liquidity include investment securities consisting principally of U.S. Government and agency issues, particularly those of shorter maturities, and mortgage-backed securities with monthly repayments of principal and interest. In addition, the Bank’s investment portfolio is classified as available-for-sale; however, majority of these securities are pledged as collateral for deposits of governmental/quasi-governmental agencies as well as the Discount Window at the Federal Reserve Bank. Therefore, they are restricted from use to fund loans or to meet other liquidity requirements.

Other types of assets such as federal funds sold, as well as maturing loans, are also sources of liquidity. Approximately $11.2 million in loans are scheduled to mature within one year. To ensure the ongoing adequacy of liquidity, the following contingency strategies will be utilized in order of priority, if necessary:

·Seek non-public deposits from existing private sector customers; specifically, additional deposits from members of the National Bankers Association will be considered a potential source.

·Sell participations of existing commercial credits to other financial institutions in the region and/or NBA member banks based on participation agreements.

The Bank’s contingent funding sources include the Discount Window at the Federal Reserve Bank for which it currently has $750,000 in securities pledged that result in borrowing capacity of approximately $708,000. In light of the Bank’s regulatory Orders and “Troubled Bank” designation, liquidity will continue to be closely monitored and managed to minimize risk and ensure that adequate funds are available to meet daily customer requirements and loan demand.

Interest rate sensitivity

Interest rate sensitivity varies with different types of interest-earning assets and interest-bearing liabilities. Overnight federal funds on which rates change daily and loans which are tied to prime or other short term indices differ considerably from long-term investment securities and fixed-rate loans. Similarly, time deposits are much more interest sensitive than passbook savings accounts. The shorter-term interest rate sensitivities are critical to measuring the interest sensitivity gap, or excess earning assets over interest-bearing liabilities. Management of interest sensitivity involves matching repricing dates of interest-earning assets with interest-bearing liabilities in a manner designed to optimize net interest income within the limits imposed by regulatory authorities, liquidity determinations and capital considerations. At June 30, 2016, a positive gap position is maintained on a cumulative basis through 1 year of 15.93% that is within the Bank’s policy guidelines of +/- 15% on a cumulative 1-year basis, increased from the December 31, 2015 positive gap position of 17.28%. This position is caused by an increasing level of loans maturing and/or repricing in one to three months due to the Banks’ growing variable rate SBA loan portfolio. This position makes the Bank’s net interest income

more favorable in a rising interest rate environment. The most recent economic forecast suggests no further decline in rates but rather increases beginning in late 2015. Therefore, management does not believe the interest rate risk associated with the Bank’s current position to be significant. Management will continue review and monitor the structure and rates on investment purchases, new loan originations and renewals to manage the interest rate risk profile within acceptable limits.

While using the interest sensitivity gap analysis is a useful management tool as it considers the quantity of assets and liabilities subject to repricing in a given time period, it does not consider the relative sensitivity to market interest rate changes that are characteristic of various interest rate-sensitive assets and liabilities. A simulation model is used to estimate the impact of various changes, both upward and downward, in market interest rates and volumes of assets and liabilities on the net income of the Bank. This model produces an interest rate exposure report that forecasts changes in the market value of portfolio equity under alternative interest rate environments. The market value of portfolio equity is defined as the present value of the Company’s existing assets, liabilities and off-balance-sheet instruments. At June 30, 2016, the change in the market value of equity in a +200 basis point interest rate change is -20%, in excess of the policy limit of 25%, and -46.6% in a +400 basis point interest rate change, below the policy limit of -50%. These levels represent an improvement from 2015 when the +400 basis point change was -41.4%. Management is strategically working to bring this measure into compliance with policy limits by originating more variable rate loans or structure short maturity balloon mortgages. Although the economic value of equity is in excess of policy, interest-rate exposure is considered reasonable and manageable at June 30, 2016.

Capital Resources

Total shareholders’ equity increased approximately $207,000, or 7.7%, during the six months ended June 30, 2016. The decrease is attributable to a net loss of approximately $116,000 plus other comprehensive loss related to an unrealized loss on the securities classified as available-for-sale totaling approximately $91,000.

The critical importance of establishing and maintaining capital levels to support the Bank’s risk profile and growth is understood. A concentrated effort will be made to stabilize and strengthen the Bank’s capital through the generation of core profitability from Bank operations and external investment. In 2013, an investment banker was engaged to assist with raising a minimum investment of $2 million. Although the Bank has approximately $750,000 in commitments from several financial institutions in the region, the timing of these investments is uncertain.

On January 1, 2015, new regulatory risk-based capital rules became effective. These new capital requirements, commonly referred to as “Basel III” regulatory reforms increased the minimum Tier I capital ratio in order to be considered well-capitalized from 6.0% to 8.0%. In addition, a new capital ratio, the Common Equity Tier I ratio was introduced, with a minimum, well-capitalized level of 6.5%. The new rules provided for smaller banking institutions (less than $250 billion in consolidated assets) an opportunity to make a one-time election to opt out of including most elements of accumulated other comprehensive income in regulatory capital. Importantly, the opt-out excludes from regulatory capital not only unrealized gains and losses on available-for-sale debt securities, but also accumulated net gains and losses on cash-flow hedges and amounts attributable to defined benefit postretirement plans. On April 30, 2015, in connection with the filing of its March 31, 2015 Call Report, the Bank elected to opt-out of including these items in regulatory capital. For more information regarding Basel III, refer to Part I, Item 1 of the Company’s 2014 Annual Report on Form 10-K, under the heading “Capital Adequacy.” There is no official regulatory guideline for the tangible common equity to tangible asset ratio.

On January 31, 2012, the Bank entered into a Consent Order with its primary regulators that requires the development of a written capital plan ("Capital Plan") that details the manner in which the Bank will meet and maintain a Leverage Ratio of at least 8.50% and a Total Risk-Based Capital Ratio of at least 12.50%. At a minimum, the Capital Plan must include specific benchmark Leverage Ratios and Total Risk-Based Capital Ratios to be met at each calendar quarter-end, until the required capital levels are achieved. At June 30, 2016, capital benchmarks had not been met; however, management will continue to execute its capital strategies. The Company and the Bank do not anticipate paying dividends in the near future.

The Bank meets the minimum capital levels to be considered “well capitalized” with the exception of Total capital to risk weighted assets. The following table presents the capital ratios of the Company and the Bank as of June 30, 2016 and December 31, 2015:

	Actual June 30, 2016		Actual December 31, 2016		Minimum to be “Well Capitalized”
	Amount	Ratio			Amount	Ratio
Total (Tier II) capital to risk weighted assets:
Company	$3,109	8.56%	$3,081	8.50%	N/A
Bank	3,109	8.56	3,081	8.50	$3,623	10.00%
Tier I capital to risk weighted assets
Company	2,754	7.58	2,663	7.35	N/A
Bank	2,754	7.58	2,663	7.35	$2,899	8.00%
Common equity Tier I capital to risk weighted assets
Company	2,754	7.58	2,663	7.35	N/A
Bank	2,754	7.58	2,663	7.35	$2,355	6.50%
Tier I Leverage ratio (Tier I capital to total quarterly average assets)
Company	2,754	5.06	2,663	4.57	N/A
Bank	2,754	5.06	2,663	4.57	$2,915	5.00%
Tangible common equity to tangible assets
Company	2,754	5.06	2,663	4.52	N/A	N/A
Bank	2,754	5.06	2,663	4.52	N/A	N/A

Results of Operations

Summary

The Company reported a net profit of approximately $ 316,000 ($ 0.38 per common share) for the quarter ended June 30, 2016 compared to a net loss of approximately $118,000 ($0.14 per common share) for the same quarter in 2015. The Company reported a net profit of approximately $116,000 ($0.14 per common share) for the six months ended June 30, 2016 compared to a net loss of approximately $103,000 ($0.10 per common share) for the same period in 2015. The improvement in financial performance is primarily related to the Bank’s SBA loan strategy as well as a reduction in the provision for loan losses. A detailed explanation of each component of operations is included in the sections below.

Net Interest Income

Net interest income is an effective measure of how well management has balanced the Bank’s interest rate-sensitive assets and liabilities. Net interest income, the difference between (a) interest and fees on interest-earning assets and (b) interest paid on interest-bearing liabilities, is a significant component of the Bank’s earnings. Changes in net interest income result primarily from increases or decreases in the average balances of interest-earning assets, the availability of particular sources of funds and changes in prevailing interest rates.

Average Balances, Rates, and Interest Income and Expense Summary

		Three months ended June 30, 2016			Three months ended June 30, 2015
(in 000’s)	Average Balance	Interest	Yield/Rate	Average Balance	Interest	Yield/Rate

Assets:
Interest-earning assets:
Loans	$37,957	$689	7.26%	$42,767	$582	5.44%
Investment securities	7,225	41	2.25	7,865	45	2.29
Federal funds sold	6,406	8	0.47	5,597	3	0.21
Interest bearing balances with other banks	311	-	-	310	-	-
Total interest-earning assets	51,899	737	5.68	56,539	630	4.46
Interest-bearing liabilities
Demand deposits	12,465	6	0.19	13,178	6	0.18
Savings deposits	11,311	1	0.05	12,086	1	0.03
Time deposits	11,607	9	0.31	14,886	10	0.27
Total interest-bearing liabilities	35,383	16	0.18	40,150	17	0.18
Net interest income		$721			$613
Net yield on interest-earning assets			5.56%			4.34%

		Six months ended June 30, 2016			Six months ended June 30, 2015
(in 000’s)	Average Balance	Interest	Yield/Rate	Average Balance	Interest	Yield/Rate

Assets:
Interest-earning assets:
Loans	$37,978	$1,229	6.47%	$44,722	$1,245	5.57%
Investment securities	7,380	85	2.30	8,022	93	2.32
Federal funds sold	7,282	17	0.47	4,080	4	0.20
Interest bearing balances with other banks	311	-	-	310	-	-
Total interest-earning assets	52,951	1,331	5.03	57,134	1,342	4.70
Interest-bearing liabilities
Demand deposits	12,720	12	0.19	13,265	12	0.18
Savings deposits	11,421	3	0.05	12,089	3	0.05
Time deposits	12,019	17	0.29	15,343	20	0.28
Total interest-bearing liabilities	36,160	32	0.18	40,697	35	0.17
Net interest income		$1,299			$1,307
Net yield on interest-earning assets			4.91%			4.58%

For purposes of computing the average balance, loans are not reduced for nonperforming loans. Loan fee income is included in interest income on loans but is not considered material.

Net interest income improved approximately $109,000, or 17.77%, for the quarter ended June 30, 2016 compared to 2015. Net interest income declined approximately $8,000, or 0.59%, for the six months ended June 30, 2016 compared to 2015. The decrease is primarily related to the reduction in the yield on loans compared to 2014 as a result of the completion and payoff of higher yielding construction loans related to the NRIA program in which the Bank participates.

Rate-Volume Analysis of Changes in Net Interest Income


	Three months ended June 30, 2016 compared to 2015			Three months ended June 30, 2015 compared to 2014
	Increase (decrease) due to			Increase (decrease) due to
(Dollars in thousands)	Volume	Rate	Net	Volume	Rate	Net
Interest earned on:
Loans	$ (71)	$ 178	$ 107	$ (6)	$ (51)	$ (57)
Investment securities	(4)	-	(4)	(12)	(2)	(14)
Federal funds sold	1	4	5	1	-	1
Interest bearing balances with other banks	-	-	-	-	-	-
Total Interest-earning assets	(74)	182	108	(17)	(53)	(70)
Interest paid on:
Demand deposits	-	-	-	-	-	-
Savings deposits	-	-	-	-	-	-
Time deposits	(2)	-	(2)	-	-	-
Total interest-bearing liabilities	(2)	-	(2)	-	-	-
Net interest income	$ (76)	182	106	$ (17)	(53)	(70)

	Six months ended June 30, 2016 compared to 2015			Six months ended June 30, 2015 compared to 2014
	Increase (decrease) due to			Increase (decrease) due to
(Dollars in thousands)	Volume	Rate	Net	Volume	Rate	Net
Interest earned on:
Loans	$(202)	$ 186	$(16)	$ 41	$ (82)	$(41)
Investment securities	(7)	(1)	(8)	(24)	(3)	(27)
Federal funds sold	3	10	13	-	(1)	(1)
Interest bearing balances with other banks	-	-	-	-	(3)	(3)
Total Interest-earning assets	(206)	195	(11)	17	(89)	(72)
Interest paid on:
Demand deposits	-	-	-	(1)	-	(1)
Savings deposits	-	-	-	-	-	-
Time deposits	(4)	-	(4)	-	-	-
Total interest-bearing liabilities	(4)	-	(4)	(1)	-	(1)
Net interest income	$ (210)	$195	$(15)	$ 18	$(89)	$(71)

For the quarter ended June 30, 2016 compared to the same period in 2015, there was a decrease in net interest income of approximately $76,000 due to changes in volume and an increase of approximately $182,000 due to changes in rate. For the six months ended June 30, 2016 compared to the same period in 2015, there was a decrease in net interest income of

approximately $210,000 due to changes in volume offset by an increase of approximately $195,000 due to changes in rate. Rate declines were a result of several variable rate commercial loans re-setting at the current low interest rates as well as the payoff of several higher yielding NRIA construction loans at completion.

Provision for Loan Losses

There was a provision for loan losses of $30,000 for the quarter ended June 30, 2016 compared to a negative provision of $40,000 for the same quarter in 2015. There was a negative provision for loan losses of $5,000 for the six months ended June 30, 2016 compared to a provision of $100,000 for the same period in 2015. The decrease in provisions is primarily related to lower loan originations, loan payoff activity as well as a reduction net charge-offs and related historical loss factors. In general, provision requirements are based on credit losses inherent in the loan portfolio and the review and analysis of the loan portfolio in accordance with the Bank’s Allowance for Loan Loss policies and procedures. (Refer to Allowance for Loan Losses above for discussion and analysis of credit quality.)

Noninterest Income

The amount of the Bank's noninterest income generally reflects the volume of the transactional and other accounts handled by the Bank and includes such fees and charges as low balance account fees, overdrafts, account analysis, ATM fees, SBA loan related income and other customer service fees. Noninterest income increased approximately $398,000, or 129.46%, for the quarter ended June 30, 2016 compared to the same quarter in 2015. Noninterest income increased approximately $381,000, or 59.20%, for the six months ended June 30, 2016 compared to the same period in 2015. The increase in 2016 is primarily related to other noninterest income.

Customer service fees decreased approximately $49,000, or 35.08% for the quarter ended June 30, 2016 compared to 2015. ATM activity fees declined by approximately $2,000, or 7.72%, for the quarter ended June 30, 2016 compared to the same period in 2015. Customer service fees decreased approximately $59,000, or 25.17% for the six months ended June 30, 2016 compared to 2015. ATM activity fees declined by approximately $7,000, or 11.30%, for the six months ended June 30, 2016 compared to the same period in 2015. The increase in customer service fees is the result of a higher level of overdraft fees related to several business customers. The decline in ATM fees is related to the termination of the contract with Rite Aid in 2014 as well as lower volume which is consistent with trends in the industry; ATM usage has declined as consumers continue to move to electronic payment methods utilizing debit and credit cards versus cash.

Noninterest Expense

Salaries and benefits decreased approximately $32,000, or 7.84%, for the quarter ended June 30, 2016 compared to 2015 as a result of an escalation in medical insurance costs during the policy renewal period in March. Salaries and benefits decreased approximately $39,000, or 4.82%, for the six months ended June 30, 2016 compared to 2015 as a result of several unfilled positions within the Bank’s branch network as well as the elimination of the business development position in February 2015.

Occupancy and equipment expense increased approximately $9,000, or 3.71%, for the quarter ended June 30, 2016 compared to 2015. Occupancy and equipment expense increased approximately $24,000, or 4.70%, for the six months ended June 30, 2016 compared to 2015. The increase is primarily related to higher real estate taxes and common area maintenance expenses for the Bank’s leased branches.

Office operations and supplies expense increased by approximately $1,000, or 1.46%, for the quarter ended June 30, 2016 compared to 2015. Office operations and supplies expense were relatively consistent at $16,000, or 10.66%, for the six months ended June 30, 2016 compared to 2015. The increase is primarily related to increased branch security expense because the branches are operating with fewer full time staff people that may increase the potential risk of crime; therefore, the Bank increased the presence of security guards to compensate.

Professional services expense increased by approximately $1,000 for the quarter ended June 30, 2016 compared to 2015. Professional services expense increased approximately $16,000, or 9.84%, for the six months ended June 30, 2016 compared to the same period in 2015 as a result of increased audit cost.

Data processing expenses increased approximately $11,000, or 12.20%, for the quarter ended June 30, 2016 compared to 2015. Data processing expenses decreased approximately $16,000, or 9.84%, for the six months ended June 30, 2016 compared to 2015. The decrease is primarily related to the consolidation of the Bank’s EFT vendor with its core processor in late 2014.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Federal deposit insurance assessments decreased approximately $11,400 or 33.33%, for the quarter ended June 30, 2016 compared to 2015. Federal deposit insurance assessments decreased approximately $9,000, or 14.16%, for the six months ended June 30, 2016 compared to 2015. Assessments are based on many factors including the Bank’s deposit size and composition and its current regulatory ratings. The Bank’s deposit levels declined in 2015 compared to 2014, resulting in lower assessments.

Net other real estate expenses increased approximately $47,000, or 203%, for the quarter ended June 30, 2016 compared to 2015. Net other real estate expenses increased approximately $150,000, or 237%, for the six months ended June 30, 2016 compared to 2015. The decrease was primarily the result of approximately $88,000 transfer-in write-ups related to several properties where the net liquidation value exceeded the Bank’s loan balance.

Loan and collection expenses decreased approximately $16,000, or 35%, for the quarter ended June 30, 2016 compared to 2015. Loan and collection expenses increased approximately $45,000, or 43.55%, for the six months ended June 30, 2016 compared to 2015. The increase is a result of sheriff sale and legal fees related foreclosure/collection activity.

Other operating expenses increased approximately $8,000, or 7.25%, for the quarter ended June 30, 2016 compared to 2015. Other operating expenses increased approximately $20,000, or 9.26%, for the six months ended June 30, 2016 compared to 2015. In 2014, there was a reduction in the Bank’s Pennsylvania Bank Shares Tax as a result of a change in the tax computation methodology that resulted in the reversal of more than $50,000 in accrued expenses; 2015 expenses are representative of a normalized expense based on the current tax methodology.

Dividend Restrictions

The Company has never declared or paid any cash or stock dividends. The Pennsylvania Banking Code of 1965, as amended, provides that cash dividends may be declared and paid only from accumulated net earnings and that, prior to the declaration of any dividend, if the surplus of a bank is less than the amount of its capital, the bank shall, until surplus is equal to such amount, transfer to surplus an amount which is at least ten percent (10%) of the net earnings of the bank for the period since the end of the last fiscal year or any shorter period since the declaration of a dividend. If the surplus of a bank is less than fifty percent (50%) of the amount of its capital, no dividend may be declared or paid by the Bank without the prior approval of the Pennsylvania Department of Banking.

Under the Federal Reserve Act, the Federal Reserve Board has the power to prohibit the payment of cash dividends by a bank holding company if it determines that such a payment would be an unsafe or unsound practice or constitutes a serious risk to the financial soundness or stability of the subsidiary bank. As a result of these laws and regulations, the Bank, and therefore the Company, whose only source of income is dividends from the Bank, will be unable to pay any dividends while an accumulated deficit exists. The Company does not anticipate that dividends will be paid for the foreseeable future.

Not applicable.

Item 4. Controls and Procedures

As of June 30, 2016, the Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Rule 13a-15(b), as adopted by the Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934 (“Exchange Act”). Based upon that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this report.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

Item 1A. Risk Factors.

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.

There have not been any material changes to the risk factors disclosed in the Company’s 2014 Annual Report on Form 10-K except as disclosed below. The risk factors disclosed in the Company’s 2014 Annual Report on Form 10-K are not the only risks that we face. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Failure to Comply with the FDIC and Pennsylvania Department of Banking Consent Orders

The Bank has entered into Consent Orders with the FDIC and the Department which, among other provisions, require the Bank to increase its tier one leverage capital ratio to 8.5% and its total risk based capital ratio to 12.5%. As of June 30, 2016, the Bank’s tier one leverage capital ratio was 5.06% and its total risk based capital ratio was 8.56%. Refer to the Regulatory Orders section. The Bank’s failure to comply with the terms of the Consent Orders could result in additional regulatory supervision and/or actions. The ability of the Bank to continue as a going concern is dependent on many factors, including achieving required capital levels, earnings and fully complying with the Consent Orders. The Consent Orders raise substantial doubt about the Bank’s ability to continue as a going concern.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

None

Item 3. Defaults Upon Senior Securities.

None

Item 4. Mine Safety Disclosures.

None

Item 5. Other Information.

None

Item 6. Exhibits.

a)Exhibits.

Exhibit 31.1 Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 31.2 Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2 Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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.

Date: November 30, 2018	/s/ Evelyn F. Smalls
	Evelyn F. Smalls
	President & Chief Executive Officer


Date: November 30, 2018	/s/ Brenda M. Hudson-Nelson
	Brenda Hudson-Nelson
	Executive Vice President/Chief Financial Officer

Interest-bearing deposits with banks

Index to Exhibits-FORM 10-Q

Exhibit 31.1	Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1	Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2	Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

EX-31.1 2 usbi_ex31z1.htm EXHIBIT 31.1

Exhibit 31.1

CERTIFICATIONS

I, Evelyn F. Smalls, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Bancshares, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) and 15d-15(f) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter, (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Evelyn F. Smalls

Evelyn F. Smalls

Chief Executive Officer

November 30, 2018

EX-31.2 3 usbi_ex31z2.htm EXHIBIT 31.2

Exhibit 31.2

CERTIFICATIONS

I, Brenda M. Hudson-Nelson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of United Bancshares, Inc.;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting as defined in Exchange Act Rule 13a-15(f) and 15d-15(f) for the registrant and have:

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

/s/ Brenda M. Hudson-Nelson

Brenda M. Hudson-Nelson

Chief Financial Officer

November 30, 2018

EX-32.1 4 usbi_ex32z1.htm EXHIBIT 32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of United Bancshares, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2016, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Evelyn F. Smalls, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to '906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Evelyn F. Smalls

Evelyn F. Smalls

Chief Executive Officer

November 30, 2018

EX-32.2 5 usbi_ex32z2.htm EXHIBIT 32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350,

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of United Bancshares, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Brenda M. Hudson-Nelson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to '906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief:

(1)The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

/s/ Brenda M. Hudson-Nelson

Brenda M. Hudson-Nelson

Chief Financial Officer

November 30, 2018

EX-101.CAL 6 uboh-20160630_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 7 uboh-20160630_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.INS 8 uboh-20160630.xml XBRL INSTANCE DOCUMENT 0000944792 2016-06-30 0000944792 2015-12-31 0000944792 us-gaap:CommonStockMember 2016-06-30 0000944792 us-gaap:CommonStockMember 2015-12-31 0000944792 uboh:ClassBNonVotingCommonStockMember 2016-06-30 0000944792 uboh:ClassBNonVotingCommonStockMember 2015-12-31 0000944792 us-gaap:SeriesAPreferredStockMember 2016-06-30 0000944792 us-gaap:SeriesAPreferredStockMember 2015-12-31 0000944792 2016-01-01 2016-06-30 0000944792 2018-11-30 0000944792 2015-01-01 2015-06-30 0000944792 2015-06-30 0000944792 2014-12-31 0000944792 2016-04-01 2016-06-30 0000944792 2016-03-31 0000944792 2015-04-01 2015-06-30 0000944792 us-gaap:CommonStockMember 2015-01-01 2015-06-30 0000944792 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2016-01-01 2016-06-30 0000944792 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2016-01-01 2016-06-30 0000944792 us-gaap:MoneyMarketFundsMember 2016-01-01 2016-06-30 0000944792 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2015-01-01 2015-12-31 0000944792 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2015-01-01 2015-12-31 0000944792 us-gaap:MoneyMarketFundsMember 2015-01-01 2015-12-31 0000944792 2015-01-01 2015-12-31 0000944792 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2016-06-30 0000944792 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2016-06-30 0000944792 us-gaap:MoneyMarketFundsMember 2016-06-30 0000944792 us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2015-12-31 0000944792 us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2015-12-31 0000944792 us-gaap:MoneyMarketFundsMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember 2016-04-01 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember 2016-03-31 0000944792 uboh:CommercialAndIndustrialMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-04-01 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-03-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember 2016-04-01 2016-06-30 0000944792 uboh:ConsumerRealEstateMember 2016-03-31 0000944792 uboh:ConsumerRealEstateMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2016-04-01 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2016-03-31 0000944792 uboh:ConsumerAndOtherLoansMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember 2015-04-01 2015-06-30 0000944792 uboh:CommercialAndIndustrialMember 2015-03-31 0000944792 uboh:CommercialAndIndustrialMember 2015-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-04-01 2015-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-03-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-06-30 0000944792 uboh:ConsumerRealEstateMember 2015-04-01 2015-06-30 0000944792 uboh:ConsumerRealEstateMember 2015-03-31 0000944792 uboh:ConsumerRealEstateMember 2015-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2015-04-01 2015-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2015-03-31 0000944792 uboh:ConsumerAndOtherLoansMember 2015-06-30 0000944792 2015-03-31 0000944792 uboh:CommercialAndIndustrialMember 2016-01-01 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-01-01 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember 2016-01-01 2016-06-30 0000944792 uboh:ConsumerRealEstateMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember 2016-01-01 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember 2015-01-01 2015-06-30 0000944792 uboh:CommercialAndIndustrialMember 2014-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-01-01 2015-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember 2014-12-31 0000944792 uboh:ConsumerRealEstateMember 2015-01-01 2015-06-30 0000944792 uboh:ConsumerRealEstateMember 2014-12-31 0000944792 uboh:ConsumerAndOtherLoansMember 2015-01-01 2015-06-30 0000944792 uboh:ConsumerAndOtherLoansMember 2014-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2016-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember 2016-06-30 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember 2016-06-30 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:TotalRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:TotalRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:TotalRealEstateMember 2016-06-30 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember 2016-06-30 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember 2016-06-30 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:FinancingReceivables30To89DaysPastDueMember 2016-06-30 0000944792 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2015-12-31 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:HomeEquityLoansMember uboh:ConsumerRealEstateMember 2015-12-31 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 us-gaap:HomeEquityMember uboh:ConsumerRealEstateMember 2015-12-31 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:FamilyResidentialMortgageMember uboh:ConsumerRealEstateMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:TotalRealEstateMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:TotalRealEstateMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:TotalRealEstateMember 2015-12-31 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:ConsumerInstallmentMember uboh:ConsumerAndOtherLoansMember 2015-12-31 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:StudentLoansMember uboh:ConsumerAndOtherLoansMember 2015-12-31 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:Other1Member uboh:ConsumerAndOtherLoansMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 uboh:FinancingReceivables30To89DaysPastDueMember 2015-12-31 0000944792 us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember uboh:Pass1Member 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:CommercialAndIndustrialMember uboh:TotalMember 2016-06-30 0000944792 uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:Pass1Member 2016-06-30 0000944792 us-gaap:SpecialMentionMember 2016-06-30 0000944792 us-gaap:SubstandardMember 2016-06-30 0000944792 us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:TotalMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:ConsumerInstallmentMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:ConsumerInstallmentMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:ConsumerInstallmentMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:StudentLoansMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:StudentLoansMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:StudentLoansMember 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:Other1Member 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:Other1Member 2016-06-30 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:Other1Member 2016-06-30 0000944792 uboh:PerformingMember 2016-06-30 0000944792 uboh:NonperformingMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:HomeEquity1Member 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:HomeEquity1Member 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:HomeEquity1Member 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:HomeEquityLineOfCreditMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:HomeEquityLineOfCreditMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:HomeEquityLineOfCreditMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:N14FamilyResidentialMortgagesMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:N14FamilyResidentialMortgagesMember 2016-06-30 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:N14FamilyResidentialMortgagesMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2016-06-30 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2016-06-30 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:Pass1Member 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:AssetBasedMember uboh:CommercialAndIndustrialMember uboh:TotalMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember uboh:Pass1Member 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:CommercialAndIndustrialMember uboh:TotalMember 2015-12-31 0000944792 uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:Pass1Member 2015-12-31 0000944792 us-gaap:SpecialMentionMember 2015-12-31 0000944792 us-gaap:SubstandardMember 2015-12-31 0000944792 us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:TotalMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:ConsumerInstallmentMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:ConsumerInstallmentMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:ConsumerInstallmentMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:StudentLoansMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:StudentLoansMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:StudentLoansMember 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:PerformingMember uboh:Other1Member 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:NonperformingMember uboh:Other1Member 2015-12-31 0000944792 uboh:ConsumerAndOtherLoansMember uboh:TotalMember uboh:Other1Member 2015-12-31 0000944792 uboh:PerformingMember 2015-12-31 0000944792 uboh:NonperformingMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:HomeEquity1Member 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:HomeEquity1Member 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:HomeEquity1Member 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:HomeEquityLineOfCreditMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:HomeEquityLineOfCreditMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:HomeEquityLineOfCreditMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:PerformingMember uboh:N14FamilyResidentialMortgagesMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:NonperformingMember uboh:N14FamilyResidentialMortgagesMember 2015-12-31 0000944792 uboh:ConsumerRealEstateMember uboh:TotalMember uboh:N14FamilyResidentialMortgagesMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2015-12-31 0000944792 us-gaap:ConstructionMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2015-12-31 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:GoodExcellentMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:SatisfactoryMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:Pass1Member 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SpecialMentionMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:SubstandardMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember us-gaap:DoubtfulMember 2015-12-31 0000944792 us-gaap:CommercialRealEstatePortfolioSegmentMember uboh:TotalMember 2015-12-31 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2016-01-01 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2016-01-01 2016-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2016-01-01 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-01-01 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-01-01 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-01-01 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2015-01-01 2015-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2015-01-01 2015-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2015-01-01 2015-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-01-01 2015-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-01-01 2015-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-01-01 2015-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2016-04-01 2016-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2016-04-01 2016-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2016-04-01 2016-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-04-01 2016-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-04-01 2016-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2016-04-01 2016-06-30 0000944792 uboh:CommercialMember uboh:CommercialAndIndustrialMember 2015-04-01 2015-06-30 0000944792 uboh:SBALoansMember uboh:CommercialAndIndustrialMember 2015-04-01 2015-06-30 0000944792 uboh:AssetBasedLoansMember uboh:CommercialAndIndustrialMember 2015-04-01 2015-06-30 0000944792 uboh:CommercialMortgagesMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-04-01 2015-06-30 0000944792 uboh:SBALoansMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-04-01 2015-06-30 0000944792 uboh:ReligiousOrganizationsMember us-gaap:CommercialRealEstatePortfolioSegmentMember 2015-04-01 2015-06-30 0000944792 us-gaap:CommercialRealEstateMember 2016-06-30 0000944792 us-gaap:ResidentialRealEstateMember 2016-06-30 0000944792 us-gaap:CommercialRealEstateMember 2015-12-31 0000944792 us-gaap:ResidentialRealEstateMember 2015-12-31 0000944792 uboh:OtherRealEstate1Member 2016-04-01 2016-06-30 0000944792 uboh:OtherRealEstate1Member 2015-04-01 2015-06-30 0000944792 uboh:OtherRealEstate1Member 2016-01-01 2016-06-30 0000944792 uboh:OtherRealEstate1Member 2015-01-01 2015-06-30 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:MoneyMarketFundsMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:USGovernmentAgenciesDebtSecuritiesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel1Member us-gaap:MoneyMarketFundsMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:MoneyMarketFundsMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel1Member 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member 2016-01-01 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member 2015-01-01 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember srt:MinimumMember 2016-01-01 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember srt:MaximumMember 2016-01-01 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember srt:MinimumMember 2015-01-01 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember srt:MaximumMember 2015-01-01 2015-12-31 0000944792 uboh:LoansHeldAtFairValueMember 2016-01-01 2016-06-30 0000944792 uboh:LoansHeldAtFairValueMember 2015-12-31 0000944792 uboh:LoansHeldAtFairValueMember 2016-06-30 0000944792 uboh:ImpairedLoansMember 2016-01-01 2016-06-30 0000944792 uboh:OtherRealEstateOwnedMember 2016-01-01 2016-06-30 0000944792 uboh:ImpairedLoansMember 2015-01-01 2015-12-31 0000944792 uboh:OtherRealEstateOwnedMember 2015-01-01 2015-12-31 0000944792 uboh:ImpairedLoansMember 2016-06-30 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel1Member 2016-06-30 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel2Member 2016-06-30 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel3Member 2016-06-30 0000944792 uboh:OtherRealEstateOwnedMember 2016-06-30 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel1Member 2016-06-30 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel2Member 2016-06-30 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel3Member 2016-06-30 0000944792 uboh:ImpairedLoansMember 2015-12-31 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel1Member 2015-12-31 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel2Member 2015-12-31 0000944792 uboh:ImpairedLoansMember us-gaap:FairValueInputsLevel3Member 2015-12-31 0000944792 uboh:OtherRealEstateOwnedMember 2015-12-31 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel1Member 2015-12-31 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel2Member 2015-12-31 0000944792 uboh:OtherRealEstateOwnedMember us-gaap:FairValueInputsLevel3Member 2015-12-31 0000944792 us-gaap:FairValueInputsLevel1Member uboh:CarryingAmountMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member uboh:FairValueMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member uboh:CarryingAmountMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel2Member uboh:FairValueMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member uboh:CarryingAmountMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel3Member uboh:FairValueMember 2016-06-30 0000944792 uboh:CarryingAmountMember 2016-06-30 0000944792 uboh:FairValueMember 2016-06-30 0000944792 us-gaap:FairValueInputsLevel1Member uboh:CarryingAmountMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel1Member uboh:FairValueMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member uboh:CarryingAmountMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel2Member uboh:FairValueMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member uboh:CarryingAmountMember 2015-12-31 0000944792 us-gaap:FairValueInputsLevel3Member uboh:FairValueMember 2015-12-31 0000944792 uboh:CarryingAmountMember 2015-12-31 0000944792 uboh:FairValueMember 2015-12-31 0000944792 uboh:BankMember 2016-06-30 0000944792 uboh:BankMember 2015-12-31 xbrli:pure iso4217:USD xbrli:shares iso4217:USD xbrli:shares

0.01

2000000

250000

826921

191667

826921

191667

0.01

500000

99442

0.0600 0.0600 10-Q 2016-06-30 false UNITED BANCSHARES INC /PA 0000944792 uboh --12-31 826921 Non-accelerated Filer Yes 2016 Q2 false true false

54501137

58984238

478041

461837

251582

199781

446777

479627

757000

564000

708000

316000

131000

297000

183000

202565

175416

462764

492730

30358930

33101029

30359000

33101000

33082000

354563

418013

173000

170000

2000

10000

2905000

24066000

2709000

1042000

30713493

33519042

2905000

24066000

2709000

1042000

3062000

26414000

2841000

1202000

1457000

39000

1409000

12836000

588000

1250000

9392000

833000

20000

1856000

26775000

921000

121000

1535000

40000

1487000

13774000

353000

2175000

10112000

897000

20000

1924000

29255000

1081000

121000

3237904

2458930

3238000

2459000

3238000

2459000

7136996

3260761

7137000

3261000

7137000

3261000

6702889

7572029

2953000

3620000

130000

3662000

3780000

130000

6703000

7572000

5222688

10782098

2902000

8364000

311012

310739

2009676

2107359

51614756

56304476

294812

332915

12998

9157

13000

9000

51306945

55962404

7563345 6752759 4002748 7505729

11322524

11680878

11323000

11681000

12372375

13605888

16045953

16417150

54501137

58984238

2886382

2679762

71261

-19326

-11946971

-12062818

14752644

992045

643297

705605

307506

524159

26610

486485

21633

0 85000 0 85000 -73873 -238431 0 32143

-2495

-2289

311973

473706

99414

56014 63149 29294 31745 176267 235552 90412 139274

1304138

1406858

691378

652523

-5000

-100000

30000

-40000

1299138

1306858

721378

612523

32271

35008

16237

17464

2816

2937

1398

1465

12099

12279

5987

6162

17356

19792

8852

9837

1331409

1341866

737615

629987

290

326

171

164

17227

4259

7585

2968

84952

92591

40699

44843

1228940

1244690

689160

582012

206621

-124329

342991

-196370

90586

-21233

26639

-78421

116035

-103096

316352

-117949

826921

986262

826921

0.14

-0.10

0.38

-0.14

116035

-103096

316352

-117949

2180148

2153251

1080631

1077978

231198

211598

119612

111526

58576

66400

30174

34200

37561 103771 23929 46490

-57000

63214

-22800

23182

209295

187087

100547

89615

149131

165415

75973

74964

27720

26189

11325

8337

166414

150382

83114

81922

478637

502244

240481

249740

764616

803379

372676

404366

7406612 1823367

11317

3137250

4407339

-88460

311973

473706

92791

88678

30355

40913

7111

9083

106471

180910

-34262

-4937

-4540837

2012257

3636886

5030907

62825

48464

2747098

4014805

2350234

3302847

1064615

5222688

10782098

8322227

3236582

-5559410

5085645

-4655459

-1957519

-4655459

-1957519

148241

28430

37107

1. Significant Accounting Policies   United Bancshares, Inc. (the "Company") is a bank holding company registered under the Bank Holding Company Act of 1956.  The Company's principal activity is the ownership and management of its wholly owned subsidiary, United Bank of Philadelphia (the "Bank").   During interim periods, the Company follows the accounting policies set forth in its Annual Report on Form 10-K filed with the Securities and Exchange Commission.  Readers are encouraged to refer to the Company's Form 10-K for the fiscal year ended December 31, 2015 when reviewing this Form 10-Q.  Quarterly results reported herein are not necessarily indicative of results to be expected for other quarters.   In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring adjustments) considered necessary to present fairly the Company's consolidated financial position as of June 30, 2016 and December 31, 2015 and the consolidated results of its operations and its cash flows for the three and six months ended June 30, 2016 and 2015.   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.   Commitments In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.   Contingencies The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.   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 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.     Loans Held at Fair Value 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.   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.     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:   <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During regularly scheduled meetings of the Asset Quality Committee  <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During regular reviews of the delinquency report  <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During the course of routine account servicing, annual review, or credit file update   <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value 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.  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.   Income Taxes Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities.  Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not.   For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards.  If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount. 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. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

2. Net Loss Per Share The calculation of net loss per share follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 25%; padding-top: 12pt"> </td> <td style="width: 21%; padding-top: 12pt; text-align: center">Three Months Ended     June 30, 2016</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Three Months Ended June 30, 2015</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Six Months Ended   June 30, 2016</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Six Months Ended   June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Basic:</td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Net loss available to common shareholders</td> <td style="padding-top: 12pt; text-align: center">$ 316,352</td> <td style="padding-top: 12pt; text-align: center">$ (117,949)</td> <td style="padding-top: 12pt; text-align: center">$ 116,035  </td> <td style="padding-top: 12pt; text-align: center">$  (103,096)</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Average common shares outstanding-basic</td> <td style="padding-top: 12pt; text-align: center"> 826,921</td> <td style="padding-top: 12pt; text-align: center"> 826,921</td> <td style="padding-top: 12pt; text-align: center">  826,921</td> <td style="padding-top: 12pt; text-align: center">986,262</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Net loss per share-basic</td> <td style="padding-top: 12pt; text-align: center">$  0.38</td> <td style="padding-top: 12pt; text-align: center">$  (0.14)</td> <td style="padding-top: 12pt; text-align: center">$  0.14</td> <td style="padding-top: 12pt; text-align: center">$ (0.10)</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Diluted:</td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Average common shares-diluted</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">986,262</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Net loss per share-diluted</td> <td style="padding-top: 12pt; text-align: center">$ 0.38</td> <td style="padding-top: 12pt; text-align: center">$   (0.14)</td> <td style="padding-top: 12pt; text-align: center">$  0.14</td> <td style="padding-top: 12pt; text-align: center">$  (0.10)</td></tr> </table>  Wells Fargo (formerly Wachovia Corporation) owned 241,666 shares of UBS Common Stock (50,000 voting shares); however, on February 18, 2015, Wells Fargo returned all shares (voting and non voting) for cancellation.  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 loss per share calculations.

3.Changes in Accumulated Other Comprehensive Income   The following table presents the changes in other comprehensive income: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Three Months Ended June 30, 2016</td></tr> <tr style="vertical-align: top"> <td style="width: 52%; padding-left: 13.5pt"> </td> <td style="width: 16%; padding-left: 13.5pt; text-align: right">Before tax</td> <td style="width: 16%; padding-left: 13.5pt; text-align: right"> </td> <td style="width: 16%; padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized loss on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized holding loss arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$ 40   </td> <td style="padding-left: 13.5pt; text-align: right">$    13   </td> <td style="padding-left: 13.5pt; text-align: right">$     27    </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">      -</td> <td style="padding-left: 13.5pt; text-align: right">       -</td> <td style="padding-left: 13.5pt; text-align: right">        -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Other comprehensive loss, net</td> <td style="padding-left: 13.5pt; text-align: right">$ 40  </td> <td style="padding-left: 13.5pt; text-align: right">$    13   </td> <td style="padding-left: 13.5pt; text-align: right">$     27    </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Three Months Ended June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized gain on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized holding gain arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$  (104)   </td> <td style="padding-left: 13.5pt; text-align: right">$  26</td> <td style="padding-left: 13.5pt; text-align: right">$  (78)</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Other comprehensive income, net</td> <td style="padding-left: 13.5pt; text-align: right">$  (104)</td> <td style="padding-left: 13.5pt; text-align: right">$  26</td> <td style="padding-left: 13.5pt; text-align: right">$  (78)</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Six Months Ended June 30, 2016</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized loss on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized holding loss arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$ 135   </td> <td style="padding-left: 13.5pt; text-align: right">$    44   </td> <td style="padding-left: 13.5pt; text-align: right">$     91    </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">      -</td> <td style="padding-left: 13.5pt; text-align: right">       -</td> <td style="padding-left: 13.5pt; text-align: right">        -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Other comprehensive loss, net</td> <td style="padding-left: 13.5pt; text-align: right">$ 135  </td> <td style="padding-left: 13.5pt; text-align: right">$    44   </td> <td style="padding-left: 13.5pt; text-align: right">$     91    </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Six Months Ended June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized gain on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized holding gain arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$  (32)   </td> <td style="padding-left: 13.5pt; text-align: right">$  11</td> <td style="padding-left: 13.5pt; text-align: right">$  (21)</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Other comprehensive income, net</td> <td style="padding-left: 13.5pt; text-align: right">$  (32)</td> <td style="padding-left: 13.5pt; text-align: right">$  11</td> <td style="padding-left: 13.5pt; text-align: right">$  (21)</td></tr> </table>

4. New Authoritative Accounting Guidance 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 adoption of this amendment had no impact on the Company’s consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

5.  Investment Securities   The following is a summary of the Company's investment portfolio:  <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000’s)</td> <td colspan="4" style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td></tr> <tr style="vertical-align: top"> <td style="width: 43%"> </td> <td style="width: 16%; text-align: right"> </td> <td style="width: 14%; border-top: black 1pt solid; text-align: right">Gross</td> <td style="width: 14%; border-top: black 1pt solid; text-align: right">Gross</td> <td style="width: 13%; border-top: black 1pt solid; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right">Amortized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">unrealized</td> <td style="text-align: right">Fair</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">Cost</td> <td style="border-bottom: black 1pt solid; text-align: right">Gains</td> <td style="border-bottom: black 1pt solid; text-align: right">losses</td> <td style="border-bottom: black 1pt solid; text-align: right">Value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Available-for-sale:</td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$  2,950</td> <td style="vertical-align: bottom; text-align: right">$      3  </td> <td style="vertical-align: bottom; text-align: right">$   -   </td> <td style="vertical-align: bottom; text-align: right">$  2,953  </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,517</td> <td style="vertical-align: bottom; text-align: right">103</td> <td style="vertical-align: bottom; text-align: right">-   </td> <td style="vertical-align: bottom; text-align: right">3,620</td></tr> <tr> <td style="vertical-align: top">Investments in money market funds</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">-</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">-   </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right">$6,597</td> <td style="vertical-align: bottom; text-align: right">$  106   </td> <td style="vertical-align: bottom; text-align: right">$   -  </td> <td style="vertical-align: bottom; text-align: right">$  6,703  </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="4" style="border-top: black 2.25pt double; text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-top: black 1pt solid; text-align: right"> </td> <td style="border-top: black 1pt solid; text-align: right">Gross</td> <td style="border-top: black 1pt solid; text-align: right">Gross</td> <td style="border-top: black 1pt solid; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right">Amortized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">Fair</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">Cost</td> <td style="border-bottom: black 1pt solid; text-align: right">Gains</td> <td style="border-bottom: black 1pt solid; text-align: right">Losses</td> <td style="border-bottom: black 1pt solid; text-align: right">Value</td></tr> <tr style="vertical-align: top"> <td>Available-for-sale:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$  3,697</td> <td style="vertical-align: bottom; text-align: right">$      3</td> <td style="vertical-align: bottom; text-align: right">$   (38)</td> <td style="vertical-align: bottom; text-align: right">$   3,662</td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,774</td> <td style="vertical-align: bottom; text-align: right">36</td> <td style="vertical-align: bottom; text-align: right">     (30)</td> <td style="vertical-align: bottom; text-align: right"> 3,780</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investments in money market funds</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">   -</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">        -    </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td></tr> <tr> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$  7,601 </td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$   39</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$   (68)</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$  7,572</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> </table>   The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000’s)</td> <td colspan="3" style="text-align: right">Amortized Cost</td> <td style="text-align: center"> </td> <td style="text-align: right">Fair Value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="width: 49%">Due in one year</td> <td style="width: 3%"> </td> <td style="width: 17%"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$-</kbd> </td> <td style="width: 2%"> </td> <td style="width: 3%"> </td> <td style="width: 26%"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$-</kbd> </td></tr> <tr style="vertical-align: top"> <td>Due after one year through five years</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Due after five years through ten years</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2,950</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2,953</kbd> </td></tr> <tr style="vertical-align: top"> <td>Government Sponsored Enterprises residential mortgage-backed securities</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3,517</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3,620</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total debt securities</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6,467</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6,573</kbd> </td></tr> <tr style="vertical-align: top"> <td>Investments in money market funds</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">130</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">130</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6,597</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6,703</kbd> </td></tr> </table> Expected maturities will differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalties. The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Number</td> <td colspan="2" style="text-align: center">Less than 12 months</td> <td colspan="2" style="text-align: center">12 months or longer</td> <td colspan="2" style="text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td style="width: 23%">Description of</td> <td style="width: 8%; text-align: center">Of</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 14%; text-align: center">Unrealized</td> <td style="width: 11%; text-align: center">Fair</td> <td style="width: 12%; text-align: center">Unrealized</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 16%; text-align: center">Unrealized</td></tr> <tr style="vertical-align: top"> <td>Securities</td> <td style="text-align: center">Securities</td> <td style="text-align: center">Value</td> <td style="text-align: center">Losses</td> <td style="text-align: center">Value</td> <td style="text-align: center">losses</td> <td style="text-align: center">value</td> <td style="text-align: center">Losses</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>U.S. Government</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">   agency securities</td> <td style="vertical-align: bottom; text-align: right">9   </td> <td style="vertical-align: bottom; text-align: right">$ 2,703   </td> <td style="vertical-align: bottom; text-align: right">$ 3   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 2,703   </td> <td style="vertical-align: bottom; text-align: right">$ 3   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">55   </td> <td style="vertical-align: bottom; text-align: right">2,042   </td> <td style="vertical-align: bottom; text-align: right">50   </td> <td style="vertical-align: bottom; text-align: right">53   </td> <td style="vertical-align: bottom; text-align: right">1,341   </td> <td style="vertical-align: bottom; text-align: right">3,383   </td> <td style="vertical-align: bottom; text-align: right">103   </td></tr> <tr> <td style="vertical-align: top">Total temporarily</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">impaired investment</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">    Securities</td> <td style="vertical-align: bottom; text-align: right">64   </td> <td style="vertical-align: bottom; text-align: right">$ 4,745   </td> <td style="vertical-align: bottom; text-align: right">$ 53   </td> <td style="vertical-align: bottom; text-align: right">$ 53   </td> <td style="vertical-align: bottom; text-align: right">$ 1,341   </td> <td style="vertical-align: bottom; text-align: right">$ 6,086   </td> <td style="vertical-align: bottom; text-align: right">$ 106   </td></tr> </table> The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2015: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Number</td> <td colspan="2" style="text-align: center">Less than 12 months</td> <td colspan="2" style="text-align: center">12 months or longer</td> <td colspan="2" style="text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td style="width: 23%">Description of</td> <td style="width: 8%; text-align: center">of</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 14%; text-align: center">Unrealized</td> <td style="width: 11%; text-align: center">Fair</td> <td style="width: 12%; text-align: center">Unrealized</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 16%; text-align: center">Unrealized</td></tr> <tr style="vertical-align: top"> <td>Securities</td> <td style="text-align: center">securities</td> <td style="text-align: center">Value</td> <td style="text-align: center">Losses</td> <td style="text-align: center">Value</td> <td style="text-align: center">losses</td> <td style="text-align: center">value</td> <td style="text-align: center">Losses</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>U.S. Government</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">    agency securities</td> <td style="vertical-align: bottom; text-align: right">9   </td> <td style="vertical-align: bottom; text-align: right">$ 2,416   </td> <td style="vertical-align: bottom; text-align: right">$ (32)  </td> <td style="vertical-align: bottom; text-align: right">$ 243   </td> <td style="vertical-align: bottom; text-align: right">$ (6)  </td> <td style="vertical-align: bottom; text-align: right">$ 2,659   </td> <td style="vertical-align: bottom; text-align: right">$ (38)  </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">8   </td> <td style="vertical-align: bottom; text-align: right">1,486   </td> <td style="vertical-align: bottom; text-align: right">(19)  </td> <td style="vertical-align: bottom; text-align: right">227   </td> <td style="vertical-align: bottom; text-align: right">(11)  </td> <td style="vertical-align: bottom; text-align: right">1,713   </td> <td style="vertical-align: bottom; text-align: right">(30)  </td></tr> <tr> <td style="vertical-align: top">Total temporarily</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">impaired investment</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">    securities</td> <td style="vertical-align: bottom; text-align: right">17   </td> <td style="vertical-align: bottom; text-align: right">$ 3,902   </td> <td style="vertical-align: bottom; text-align: right">$ (51)  </td> <td style="vertical-align: bottom; text-align: right">$ 470   </td> <td style="vertical-align: bottom; text-align: right">$ (17)  </td> <td style="vertical-align: bottom; text-align: right">$ 4,372   </td> <td style="vertical-align: bottom; text-align: right">$ (68)  </td></tr> </table> Government Sponsored Enterprises residential mortgage-backed securities. Unrealized losses on the Company’s investment in Government Sponsored Enterprises residential mortgage-backed securities were caused by market 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 basis of the Company’s investments. Because the decline in fair value is attributable to changes in market 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 basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. U.S. Government and Agency Securities. Unrealized losses on the Company's investments in direct obligations of U.S. government agencies were caused by market 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. 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, the Company reviews 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, the intent to sell a security or whether it is more likely than not the Company 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, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value.

6. Loans and Allowance for Loan Losses The composition of the Bank’s loan portfolio is as follows: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 60%; padding-top: 12pt; padding-bottom: 4pt">(Dollars in thousands)</td> <td style="width: 20%; border-bottom: black 1pt solid; padding: 0.75pt">   June 30, 2016</td> <td style="width: 20%; border-bottom: black 1pt solid; padding-top: 12pt; padding-bottom: 4pt; text-align: center">December 31, 2015</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">Commercial and industrial</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 2,904</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$  3,062</td></tr> <tr> <td style="vertical-align: top; padding-top: 12pt">Commercial real estate</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">24,066</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">26,414</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">Consumer real estate</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">2,709</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">2,841</td></tr> <tr> <td style="vertical-align: top; padding-top: 12pt">Consumer loans other</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">1,042</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">1,202</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">          Total loans</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 30,722</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 33,519</td></tr> </table>    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: <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans.    <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  Historical Charge-Off Component – Applies an eight-quarter rolling historical charge-off rate to all pools of non-classified loans.   <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.  During the six months ended June 30, 2016 the Bank did not change any of its qualitative factors in any segment of the loan portfolio. In addition, the average historical loss factors were relatively unchanged as there were no charge-offs during the quarter. 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.   The following table presents an analysis of the allowance for loan losses. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Three months ended June 30, 2016</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$120</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$241</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$14</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$9</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$384</kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid">Ending balance</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$87</kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$245</kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$13</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$10</kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$355</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-bottom: black 1pt solid">For the Three months ended June 30, 2015</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$344 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$300 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$21</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$15 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$680 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">24 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(64)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(40)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(2)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(50)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(44)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$320 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$236 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$23</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$17 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$596 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Six months ended June 30, 2016</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$151 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$250 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$8 </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$9 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$418 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(5)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(5)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(41)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(22)</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(3)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(66)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">8 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(41)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(58)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$87 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$245 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$13 </kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$10 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$355 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Six months ended June 30, 2015</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$403 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$300 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$20</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$12 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$735 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(36)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(64)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(100)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(14)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(62)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">19 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">23 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs)recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(47)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">5 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(39)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$320 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$236 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$23</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$17 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$596 </kbd> </td></tr> <tr> <td style="width: 25%"> </td> <td style="width: 11%"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 15%"> </td> <td style="width: 1%"> </td> <td style="width: 16%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td></tr> </table>    <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="5" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Period-end amount allocated to:</td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans individually evaluated for impairment</td> <td colspan="2" style="padding: 0.75pt">   $          -    </td> <td style="padding: 0.75pt">   $        71</td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td colspan="2" style="padding: 0.75pt">   $         71</td></tr> <tr style="vertical-align: top"> <td>Loans collectively  evaluated for impairment</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   173  </td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   99</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   10</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   284</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$      173</td> <td style="border-bottom: black 2.25pt double; text-align: right">$      170</td> <td style="border-bottom: black 2.25pt double; text-align: right">$         2</td> <td style="border-bottom: black 2.25pt double; text-align: right">$      10</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$       355</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans, ending balance:</td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top"> <td>Loans individually evaluated for impairment</td> <td colspan="2" style="padding: 0.75pt">   $      437</td> <td style="padding: 0.75pt">   $    1,747</td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td colspan="2" style="padding: 0.75pt">   $    2,184</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans collectively  evaluated for impairment</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   2,468</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   22,319</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,709</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   1,042</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   28,538</td></tr> <tr style="vertical-align: top"> <td>Total</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$   2,905</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  24,066</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,709</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  1,042</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  30,722</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr> <td style="width: 25%"> </td> <td style="width: 14%"> </td> <td style="width: 1%"> </td> <td style="width: 15%"> </td> <td style="width: 15%"> </td> <td style="width: 15%"> </td> <td style="width: 1%"> </td> <td style="width: 14%"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 25%"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">December 31, 2015</td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Period-end amount allocated to:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans individually evaluated for impairment</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $        91       </td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $       91</td></tr> <tr style="vertical-align: top"> <td>Loans collectively  evaluated for impairment</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   151</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   159</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   8</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   9</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   327</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    151</td> <td style="border-bottom: black 2.25pt double; text-align: right">$       50</td> <td style="border-bottom: black 2.25pt double; text-align: right">$         8</td> <td style="border-bottom: black 2.25pt double; text-align: right">$        9</td> <td style="border-bottom: black 2.25pt double; text-align: right">$     418</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans, ending balance:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Loans individually evaluated for impairment</td> <td style="padding: 0.75pt">   $     439</td> <td style="padding: 0.75pt">   $   2,076</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $   2,515</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans collectively  evaluated for impairment</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,623</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   24,338</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,841</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   1,202</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   31,004</td></tr> <tr style="vertical-align: top"> <td>Total</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  3,062</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 26,414</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 2,841</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,202</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 33,519</td></tr> </table>   Nonperforming and Nonaccrual and Past Due Loans An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 is as follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 32%"> </td> <td style="width: 13%; text-align: center"> </td> <td style="width: 10%; text-align: center">Accruing</td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 12%; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Loans</td> <td style="text-align: center">Loans 90 or</td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="text-align: center">30-89 Days</td> <td style="text-align: center">More Days</td> <td style="text-align: center"> </td> <td style="text-align: center">Total Past</td> <td style="text-align: center">Current</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Nonaccrual</td> <td style="border-bottom: black 1pt solid; text-align: center">Due Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Total Loans</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$        -</td> <td style="text-align: right">$     -</td> <td style="text-align: right">$     109</td> <td style="text-align: right">$    109</td> <td style="text-align: right">$   1,348</td> <td style="text-align: right">$    1,457</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td></tr> <tr style="vertical-align: top"> <td>    Asset-based </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">1,120</td> <td style="border-bottom: black 1pt solid; text-align: right">1,409</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>       Total Commercial and industrial</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-bottom: black 1pt solid; text-align: right">2,468</td> <td style="border-bottom: black 1pt solid; text-align: right">2,905</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial mortgages</td> <td style="text-align: right">-</td> <td style="text-align: right">18</td> <td style="text-align: right">1,280</td> <td style="text-align: right">1,298</td> <td style="text-align: right">11,538</td> <td style="text-align: right">12,836</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">263</td> <td style="text-align: right">263</td> <td style="text-align: right">325</td> <td style="text-align: right">588</td></tr> <tr style="vertical-align: top"> <td>    Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">1,250</td> <td style="text-align: right">1,250</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">9,188</td> <td style="border-bottom: black 1pt solid; text-align: right">9,392</td></tr> <tr style="vertical-align: top"> <td>        Total Commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">18</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">1,765</td> <td style="border-bottom: black 1pt solid; text-align: right">22,301</td> <td style="border-bottom: black 1pt solid; text-align: right">24,066</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity loans</td> <td style="text-align: right">-</td> <td style="text-align: right">147</td> <td style="text-align: right">333</td> <td style="text-align: right">480</td> <td style="text-align: right">353</td> <td style="text-align: right">833</td></tr> <tr style="vertical-align: top"> <td>    Home equity lines of credit</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">20</td> <td style="text-align: right">20</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">1,727</td> <td style="border-bottom: black 1pt solid; text-align: right">1,856</td></tr> <tr style="vertical-align: top"> <td>        Total consumer real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">147</td> <td style="border-bottom: black 1pt solid; text-align: right">462</td> <td style="border-bottom: black 1pt solid; text-align: right">609</td> <td style="border-bottom: black 1pt solid; text-align: right">2,100</td> <td style="border-bottom: black 1pt solid; text-align: right">2,709</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total real estate </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">165</td> <td style="border-bottom: black 1pt solid; text-align: right">2,209</td> <td style="border-bottom: black 1pt solid; text-align: right">2,374</td> <td style="border-bottom: black 1pt solid; text-align: right">24,401</td> <td style="border-bottom: black 1pt solid; text-align: right">26,775</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer and other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer installment</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">24</td> <td style="text-align: right">71</td> <td style="text-align: right">-</td> <td style="text-align: right">95</td> <td style="text-align: right">826</td> <td style="text-align: right">921</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">1</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">1</td> <td style="border-bottom: black 1pt solid; text-align: right">120</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td></tr> <tr style="vertical-align: top"> <td>        Total consumer and other</td> <td style="border-bottom: black 1pt solid; text-align: right">24</td> <td style="border-bottom: black 1pt solid; text-align: right">72</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">96</td> <td style="border-bottom: black 1pt solid; text-align: right">946</td> <td style="border-bottom: black 1pt solid; text-align: right">1,042</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    24</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  237</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,646</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,907</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  27,815</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 30,722   </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> </table>   An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 is as follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31%"> </td> <td style="width: 10%; text-align: center"> </td> <td style="width: 13%; text-align: center">Accruing</td> <td style="width: 12%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 12%; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Loans</td> <td style="text-align: center">Loans 90 or</td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">30-89 Days</td> <td style="text-align: center">More Days</td> <td style="text-align: center"> </td> <td style="text-align: center">Total Past</td> <td style="text-align: center">Current</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Nonaccrual</td> <td style="border-bottom: black 1pt solid; text-align: center">Due Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Total Loans</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$     -</td> <td style="text-align: right">$       -</td> <td style="text-align: right">$   110</td> <td style="text-align: right">$   110</td> <td style="text-align: right">$   1,425</td> <td style="text-align: right">$   1,535</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td></tr> <tr style="vertical-align: top"> <td>    Asset-based </td> <td style="border-bottom: black 1pt solid; text-align: right">11</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">300</td> <td style="border-bottom: black 1pt solid; text-align: right">1,187</td> <td style="border-bottom: black 1pt solid; text-align: right">1,487</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>       Total Commercial and industrial</td> <td style="border-bottom: black 1pt solid; text-align: right">11</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">439</td> <td style="border-bottom: black 1pt solid; text-align: right">450</td> <td style="border-bottom: black 1pt solid; text-align: right">2,612</td> <td style="border-bottom: black 1pt solid; text-align: right">3,062</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>     Commercial mortgages</td> <td style="text-align: right">169</td> <td style="text-align: right">39</td> <td style="text-align: right">1,335</td> <td style="text-align: right">1,543</td> <td style="text-align: right">12,231</td> <td style="text-align: right">13,774</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>     SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">271</td> <td style="text-align: right">82</td> <td style="text-align: right">353</td></tr> <tr style="vertical-align: top"> <td>    Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td> <td style="text-align: right">2,175</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">9,641</td> <td style="border-bottom: black 1pt solid; text-align: right">10,112</td></tr> <tr style="vertical-align: top"> <td>        Total Commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">169</td> <td style="border-bottom: black 1pt solid; text-align: right">39</td> <td style="border-bottom: black 1pt solid; text-align: right">2,077</td> <td style="border-bottom: black 1pt solid; text-align: right">2,285</td> <td style="border-bottom: black 1pt solid; text-align: right">24,129</td> <td style="border-bottom: black 1pt solid; text-align: right">26,414</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity loans</td> <td style="text-align: right">56</td> <td style="text-align: right">125</td> <td style="text-align: right">358</td> <td style="text-align: right">539</td> <td style="text-align: right">358</td> <td style="text-align: right">897</td></tr> <tr style="vertical-align: top"> <td>    Home equity lines of credit</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">20</td> <td style="text-align: right">20</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">35</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">164</td> <td style="border-bottom: black 1pt solid; text-align: right">1,760</td> <td style="border-bottom: black 1pt solid; text-align: right">1,924</td></tr> <tr style="vertical-align: top"> <td>        Total consumer real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">91</td> <td style="border-bottom: black 1pt solid; text-align: right">125</td> <td style="border-bottom: black 1pt solid; text-align: right">487</td> <td style="border-bottom: black 1pt solid; text-align: right">703</td> <td style="border-bottom: black 1pt solid; text-align: right">2,138</td> <td style="border-bottom: black 1pt solid; text-align: right">2,841</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total real estate </td> <td style="border-bottom: black 1pt solid; text-align: right">260</td> <td style="border-bottom: black 1pt solid; text-align: right">164</td> <td style="border-bottom: black 1pt solid; text-align: right">2,564</td> <td style="border-bottom: black 1pt solid; text-align: right">2,988</td> <td style="border-bottom: black 1pt solid; text-align: right">26,267</td> <td style="border-bottom: black 1pt solid; text-align: right">29,255</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer and other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer installment</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">66</td> <td style="text-align: right">129</td> <td style="text-align: right">-</td> <td style="text-align: right">195</td> <td style="text-align: right">886</td> <td style="text-align: right">1,081</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">2</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">2</td> <td style="border-bottom: black 1pt solid; text-align: right">119</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td></tr> <tr style="vertical-align: top"> <td>        Total consumer and other</td> <td style="border-bottom: black 1pt solid; text-align: right">68</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">197</td> <td style="border-bottom: black 1pt solid; text-align: right">1,005</td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    339</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    293</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    3,003</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    3,635</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    29,884</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  33,519</td></tr> </table>   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. 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:   <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.    <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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, but no later than 90 days past due.   The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding: 0.75pt"> Commercial Loans June 30, 2016</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt"> Good/ Excellent</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Satisfactory</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Pass</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">Special Mention</td> <td colspan="3" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Substandard</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Doubtful</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>   Commercial </td> <td colspan="2" style="text-align: right">$   250</td> <td colspan="2" style="text-align: right">$   894</td> <td style="text-align: right">$    12</td> <td colspan="2" style="text-align: right">$      48</td> <td colspan="3" style="text-align: right">$    253</td> <td colspan="2" style="text-align: right">$  -</td> <td style="text-align: right">$  1,457</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   SBA loans</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">39</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">39</td></tr> <tr style="vertical-align: top"> <td>   Asset-based</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">834</td> <td style="border-bottom: black 1pt solid; text-align: right">210</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">289</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">1,409</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">250</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,728</td> <td style="border-bottom: black 1pt solid; text-align: right">222</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">48</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">581</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">2,905</td></tr> <tr style="vertical-align: top"> <td>Commercial real estate:</td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Commercial mortgages</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">9,035</td> <td style="text-align: right">1,937</td> <td colspan="2" style="text-align: right">567</td> <td colspan="3" style="text-align: right">1,076</td> <td colspan="2" style="text-align: right">221</td> <td style="text-align: right">12,836</td></tr> <tr style="vertical-align: top"> <td>    SBA Loans</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">325</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">263</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">588</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Construction</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">1,250</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">1,250</td></tr> <tr style="vertical-align: top"> <td>   Religious organizations</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">35</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">6,274</td> <td style="border-bottom: black 1pt solid; text-align: right">1,882</td> <td colspan="2" style="text-align: right">997</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">204</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">9,392</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">35</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">16,884</td> <td style="border-bottom: black 1pt solid; text-align: right">3,819</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1,564</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">1,543</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">221</td> <td style="border-bottom: black 1pt solid; text-align: right">24,066</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total commercial loans</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  285</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  18,612</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  4,041</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  1,612</td> <td colspan="3" style="border-bottom: black 2.25pt double; text-align: right">$  2,124</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  297</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 26,971</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: center"> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid; padding: 0.75pt"> Residential Mortgage and Consumer Loans June 30, 2016</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid">Performing</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid">Nonperforming</td> <td colspan="3" style="border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid">Total</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Consumer Real Estate:</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Home equity</td> <td colspan="2" style="text-align: right">$   500</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">$   333</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">$   833</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity line of credit</td> <td colspan="2" style="text-align: right">20</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">20</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 9.6pt; text-indent: -9.6pt">    1-4 family residential mortgages</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,727</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,856</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">2,247</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">462</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">2,709</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Consumer Other:</td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Consumer Installment</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">-</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Student loans </td> <td colspan="2" style="text-align: right">921</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">921</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Other</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">121</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">121</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,042</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,042</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total  consumer loans</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  3,289</td> <td colspan="2" style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$   462</td> <td colspan="3" style="border-bottom: black 2.25pt double"> </td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  3,751</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total loans</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; text-align: right">$ 30,722</td></tr> <tr> <td style="width: 28%"> </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 14%"> </td> <td style="width: 6%"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 7%"> </td> <td style="width: 2%"> </td> <td style="width: 7%"> </td> <td style="width: 1%"> </td> <td style="width: 9%"> </td></tr> </table>    <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding: 0.75pt"> Commercial Loans, December 31, 2015</td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt"> Good/ Excellent</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Satisfactory</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Pass</td> <td style="border-bottom: black 1.5pt solid; text-align: center">Special Mention</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Substandard</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Doubtful</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>   Commercial </td> <td style="text-align: right">$    285</td> <td style="text-align: right">$    922</td> <td style="text-align: right">$    16</td> <td style="text-align: right">$    58</td> <td style="text-align: right">$    254</td> <td style="text-align: right">$    -</td> <td style="text-align: right">$    1,535</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td></tr> <tr style="vertical-align: top"> <td>   Asset-based</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">900</td> <td style="border-bottom: black 1pt solid; text-align: right">222</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">1,487</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">285</td> <td style="border-bottom: black 1pt solid; text-align: right">1,822</td> <td style="border-bottom: black 1pt solid; text-align: right">238</td> <td style="border-bottom: black 1pt solid; text-align: right">58</td> <td style="border-bottom: black 1pt solid; text-align: right">583</td> <td style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">3,062</td></tr> <tr style="vertical-align: top"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Commercial mortgages</td> <td style="text-align: right">-</td> <td style="text-align: right">10,689</td> <td style="text-align: right">1,098</td> <td style="text-align: right">613</td> <td style="text-align: right">1,151</td> <td style="text-align: right">223</td> <td style="text-align: right">13,774</td></tr> <tr style="vertical-align: top"> <td>    SBA Loans</td> <td style="text-align: right">-</td> <td style="text-align: right">82</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td> <td style="text-align: right">353</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td></tr> <tr style="vertical-align: top"> <td>   Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">7,624</td> <td style="border-bottom: black 1pt solid; text-align: right">1,131</td> <td style="text-align: right">886</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">10,112</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">20,570</td> <td style="border-bottom: black 1pt solid; text-align: right">2,229</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1,499</td> <td style="border-bottom: black 1pt solid; text-align: right">1,893</td> <td style="border-bottom: black 1pt solid; text-align: right">223</td> <td style="border-bottom: black 1pt solid; text-align: right">26,414</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total commercial loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    285</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    22,392</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    2,467</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    1,557</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    2,476</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    299</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  29,476</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; padding: 0.75pt"> Residential Mortgage and Consumer Loans December 31, 2015</td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="6" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>Performing</td> <td> </td> <td colspan="2">Nonperforming</td> <td>Total</td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Consumer Real Estate:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity</td> <td style="text-align: right">$    539</td> <td style="text-align: right"> </td> <td style="text-align: right">$    358</td> <td style="text-align: right"> </td> <td style="text-align: right">$    897</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Home equity line of credit</td> <td style="text-align: right">20</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">20</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">1,795</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,924</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,354</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">487</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,841</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer Other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer Installment</td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">1,081</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">1,081</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total  consumer loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  3,556</td> <td style="border-bottom: black 2.25pt double; text-align: right"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    487</td> <td style="border-bottom: black 2.25pt double; text-align: right"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    4,043</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total loans</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; text-align: right">$  33,519</td></tr> </table> 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.  Specific reserves are allocated to cover “other-than-permanent” impairment for which the underlying collateral value may fluctuate with market conditions. There were no partial charge-offs.  Consumer real estate and other loans are not individually evaluated for impairment, but collectively evaluated, because they are pools of smaller balance homogeneous loans.    Impaired loans as of June 30, 2016 are set forth in the following table. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 36%">(In 000's)</td> <td style="width: 13%; text-align: center">Unpaid Contractual</td> <td style="width: 13%; padding: 0.75pt"> Recorded Investment</td> <td style="width: 13%; padding: 0.75pt"> Recorded Investment</td> <td style="width: 13%; padding: 0.75pt">   Total</td> <td style="width: 12%; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: center">Principal</td> <td style="text-align: center">With No</td> <td style="text-align: center">With</td> <td style="text-align: center">Recorded</td> <td style="text-align: center">Related</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Balance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> Commercial</td> <td style="text-align: right">$   109</td> <td style="text-align: right">$   109</td> <td style="text-align: right">$ -</td> <td style="text-align: right">$  109</td> <td style="text-align: right">$ -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> SBA Loans</td> <td style="text-align: right">39</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td> Asset-based</td> <td style="text-align: right">289</td> <td style="text-align: right">46</td> <td style="text-align: right">243</td> <td style="text-align: right">289</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Total commercial and industrial</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">194</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">243</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>  Commercial mortgages</td> <td style="text-align: right">1,280</td> <td style="text-align: right">806</td> <td style="text-align: right">474</td> <td style="text-align: right">1,280</td> <td style="text-align: right">67</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>  SBA Loans</td> <td style="text-align: right">263</td> <td style="text-align: right">163</td> <td style="text-align: right">100</td> <td style="text-align: right">263</td> <td style="text-align: right">4</td></tr> <tr style="vertical-align: top"> <td>  Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Total commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">1,173</td> <td style="border-bottom: black 1pt solid; text-align: right">574</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">71</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,184</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,367</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  817</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 2,184 </td> <td style="border-bottom: black 2.25pt double; text-align: right">$  71</td></tr> </table> Impaired loans as of December 31, 2015 are set forth in the following table. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="text-align: center">Unpaid Contractual</td> <td style="text-align: center">Recorded Investment</td> <td style="text-align: center">Recorded Investment</td> <td style="padding: 0.75pt">   Total</td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: center">Principal</td> <td style="text-align: center">With No</td> <td style="text-align: center">With</td> <td style="text-align: center">Recorded</td> <td style="text-align: center">Related</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Balance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$  818</td> <td style="text-align: right">$    353</td> <td style="text-align: right">$  -</td> <td style="text-align: right">$    353</td> <td style="text-align: right">$   -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">46</td> <td style="text-align: right">-</td> <td style="text-align: right">46</td> <td style="text-align: right">46</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Asset-based</td> <td style="text-align: right">40</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>      Total commercial and industrial</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">904</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">393</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">46</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">439</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial mortgages</td> <td style="text-align: right">1,334</td> <td style="text-align: right">810</td> <td style="text-align: right">524</td> <td style="text-align: right">1,334</td> <td style="text-align: right">91</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA Loans</td> <td style="text-align: right">271</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">2,076</td> <td style="border-bottom: black 1pt solid; text-align: right">1,552</td> <td style="border-bottom: black 1pt solid; text-align: right">524</td> <td style="border-bottom: black 1pt solid; text-align: right">2,076</td> <td style="border-bottom: black 1pt solid; text-align: right">91</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$2,980</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,945</td> <td style="border-bottom: black 2.25pt double; text-align: right">$   570</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,515</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 91</td></tr> </table>   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. The following tables present additional information about impaired loans.   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">(In 000's)</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Three Months Ended June 30, 2016</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Three Months Ended June 30, 2015</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 37%"> </td> <td style="white-space: nowrap; width: 12%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 17%; border-top: black 1pt solid; text-align: center">Interest recognized</td> <td style="white-space: nowrap; width: 15%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 19%; border-top: black 1pt solid; text-align: center">Interest recognized</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial and industrial:</td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial</td> <td style="white-space: nowrap; text-align: right">$   109</td> <td style="white-space: nowrap; text-align: right">$      -</td> <td style="white-space: nowrap; text-align: right">$    201</td> <td style="white-space: nowrap; text-align: right">$       -</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA  loans</td> <td style="white-space: nowrap; text-align: right">39</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">46</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Asset-based</td> <td style="white-space: nowrap; text-align: right">289</td> <td style="white-space: nowrap; text-align: right">3</td> <td style="white-space: nowrap; text-align: right">73</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">       Total commercial and industrial</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">320</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate:</td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial mortgages</td> <td style="white-space: nowrap; text-align: right">1,308</td> <td style="white-space: nowrap; text-align: right">4</td> <td style="white-space: nowrap; text-align: right">934</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA loans</td> <td style="white-space: nowrap; text-align: right">264</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">113</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Religious organizations</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">242</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">487</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total commercial real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,814</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">4</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,534</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total loans</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$   2,251</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$     7</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$  1,854</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$    2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">(In 000's)</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Six Months Ended June 30, 2016</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Six Months Ended June 30, 2015</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 37%"> </td> <td style="white-space: nowrap; width: 12%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 17%; border-top: black 1pt solid; text-align: center">Interest recognized</td> <td style="white-space: nowrap; width: 15%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 19%; border-top: black 1pt solid; text-align: center">Interest recognized</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial and industrial:</td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial</td> <td style="white-space: nowrap; text-align: right">$ 109</td> <td style="white-space: nowrap; text-align: right">$     -</td> <td style="white-space: nowrap; text-align: right">$  200</td> <td style="white-space: nowrap; text-align: right">$    -</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA  loans</td> <td style="white-space: nowrap; text-align: right">39</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">46</td> <td style="white-space: nowrap; text-align: right">2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Asset-based</td> <td style="white-space: nowrap; text-align: right">289</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">40</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">       Total commercial and industrial</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">286</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate:</td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial mortgages</td> <td style="white-space: nowrap; text-align: right">1,097</td> <td style="white-space: nowrap; text-align: right">13</td> <td style="white-space: nowrap; text-align: right">896</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA loans</td> <td style="white-space: nowrap; text-align: right">103</td> <td style="white-space: nowrap; text-align: right">5</td> <td style="white-space: nowrap; text-align: right">112</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Religious organizations</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">348</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">488</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total commercial real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,548</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">18</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,496</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total loans</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$   1,985</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">          $    18</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">      $  1,782</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">               $   3</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> </table>   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 troubled debt restructuring (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties).  Based on this review and evaluation, none of the modified loans met the criteria of a troubled debt restructuring.  Therefore, the Company had no troubled debt restructurings at June 30, 2016 and December 31, 2015.

7. 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. Activity in other real estate owned for the periods was as follows:     <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(in 000's)</td> <td style="text-align: center">Three  Months Ended</td> <td style="text-align: center">Three  Months Ended</td> <td style="text-align: center">Six Months Ended </td> <td style="text-align: center">Six Months Ended</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2015</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2015</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td style="width: 88px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$564 </kbd> </td> <td style="width: 97px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$708 </kbd> </td> <td style="width: 97px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$433 </kbd> </td> <td style="width: 96px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$564 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Additions, transfers from loans</td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">237 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">59 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">477 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">148 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Sales</td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(305)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(43)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(140)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(43)</kbd> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">496 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">726 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">770 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">669 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Write-ups (downs)</td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(49)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">33 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(13)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">88 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Ending Balance</td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$447 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td></tr> </table>   The following schedule reflects the components of other real estate owned: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 56%">(in 000's)</td> <td style="white-space: nowrap; width: 21%; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="white-space: nowrap; width: 23%; border-bottom: black 1pt solid; text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate</td> <td style="white-space: nowrap; text-align: center">$  316</td> <td style="white-space: nowrap; text-align: center">$ 297</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Residential real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">  131</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">183</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    Total </td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: center">$  447</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: center">$ 480</td></tr> </table> The following table details the components of net expense of other real estate owned: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center">Three  Months Ended</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center">Three  Months Ended</td> <td style="vertical-align: top; text-align: center">Six Months Ended</td> <td style="vertical-align: top; text-align: center">Six Months Ended</td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">(in 000's)</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; text-align: center">June 30, 2015</td> <td style="vertical-align: top; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="vertical-align: top; border-bottom: black 1pt solid; text-align: center">June 30, 2015</td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Insurance</td> <td style="white-space: nowrap; vertical-align: bottom; width: 101px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$2</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 101px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$4 </kbd> </td> <td style="vertical-align: top; width: 100px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6</kbd> </td> <td style="vertical-align: top; width: 100px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$8 </kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Legal Fees</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">16</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">16</kbd> </td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Professional fees</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4</kbd> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Real estate taxes</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3 </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">10</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6 </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Utilities</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Other</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">10 </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Transfer-in write-up</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">49</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(31)</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">49</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(88)</kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Impairment charges (net)</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td style="vertical-align: top; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="vertical-align: top; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">   Total</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$72</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$(23)</kbd> </td> <td style="vertical-align: top; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$86</kbd> </td> <td style="vertical-align: top; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$(63)</kbd> </td></tr> </table>

8.  Fair Value   Fair Value Measurement The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of ASC 820, the fair value of a financial instrument 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 Company's various financial instruments. 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 in FASB ASC 820 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 at fair value in three levels as follows:   Level 1 <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.      Level 2 <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  Quoted prices for similar assets or liabilities in active markets.    <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  Quoted prices for identical or similar assets or liabilities in markets that are not active.    <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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 <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.    <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd>  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.      A financial instrument’s 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 (“AFS”):  Where quoted prices are available in an active market, securities would be classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government bonds and mutual 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 models. 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 for loans for which the guaranteed portion is intended to be sold are estimated by using actual quoted market bids on a loan by loan basis. Fair values for the un-guaranteed portion of SBA loans 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. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-top: 12pt">(in 000’s)</td> <td style="padding-top: 12pt; text-align: center"> </td> <td colspan="3" style="padding-top: 12pt; text-align: center">Fair Value Measurements at Reporting Date Using:</td></tr> <tr style="vertical-align: top"> <td style="width: 133px; padding-top: 12pt"> </td> <td style="width: 145px; padding-top: 12pt; text-align: right">Assets Measured at Fair Value at June 30, 2016</td> <td style="padding-top: 12pt; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="padding-top: 12pt; text-align: right">Significant Other Observable Inputs (Level 2)</td> <td style="padding-top: 12pt; text-align: right">Significant Unobservable Inputs (Level 3)</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investment securities           available-for-sale:</td> <td style="vertical-align: bottom; padding: 0.75pt">    </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding: 0.75pt">    </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top; padding-left: 4.5pt; text-indent: -4.5pt">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$ 2,953   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 2,953   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,620   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; text-align: right">3,620   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Money Market Funds</td> <td style="vertical-align: bottom; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding: 0.75pt">           Total</td> <td style="vertical-align: bottom; text-align: right">$ 6,703   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 130   </td> <td style="vertical-align: bottom; text-align: right">$ 6,573   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Loans held for sale</td> <td style="vertical-align: bottom; text-align: right">$ 7,137   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 7,137   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Loans held at fair value</td> <td style="vertical-align: bottom; text-align: right">$ 3,238   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 3,238   </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-top: 12pt">(in 000’s)</td> <td style="padding-top: 12pt; text-align: center"> </td> <td colspan="3" style="padding-top: 12pt; text-align: center">Fair Value Measurements at Reporting Date Using:</td></tr> <tr style="vertical-align: top"> <td style="width: 20%; padding-top: 12pt"> </td> <td style="width: 25%; padding-top: 12pt; text-align: right">Assets Measured at Fair Value at December 31, 2015</td> <td style="width: 20%; padding-top: 12pt; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="width: 17%; padding-top: 12pt; text-align: right">Significant Other Observable Inputs (Level 2)</td> <td style="width: 18%; padding-top: 12pt; text-align: right">Significant Unobservable Inputs (Level 3)</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investment securities           available-for-sale:</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td></tr> <tr> <td style="vertical-align: top; padding-left: 4.5pt; text-indent: -4.5pt">U.S. Government agency securities</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,662   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,662   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">3,780   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">3,780   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Money Market Funds</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding: 0.75pt">           Total</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 7,572   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 7,442   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Loans held for sale</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,261   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,261   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Loans held at fair value</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 2,459   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 2,459   </td></tr> </table> The fair value of the Bank’s AFS securities portfolio was approximately $7,572,000 and $7,442,000 at June 30, 2016 and December 31, 2015, respectively. All the residential mortgage-backed securities were issued or guaranteed by the Government National Mortgage Association (“GNMA”), the Federal National Mortgage Association (“FNMA”) or the Federal Home Loan Mortgage Corporation (“FHLMC”).  The underlying loans for these securities are residential mortgages that are geographically dispersed throughout the United States.  The valuation of AFS securities using Level 2 inputs was primarily determined using the market approach, which uses quoted prices for similar instruments and all relevant information.  There were no transfers between Level 1 and Level 2 assets during the periods ended June 30, 2016 and 2015.   When estimating the fair value of Level 3 financial instruments, management uses various observable and unobservable inputs.  These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:  (in 000’s) <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 15%; padding: 0.75pt">   Assets measured at fair value</td> <td style="width: 13%; padding: 0.75pt"> June 30, 2016 Fair value</td> <td style="width: 13%; padding: 0.75pt"> December 31, 2015 Fair Value</td> <td style="width: 14%; text-align: center">Principal valuation techniques</td> <td style="width: 20%; text-align: center">Significant observable inputs</td> <td style="width: 13%; padding: 0.75pt"> June 30, 2016 Range of inputs</td> <td style="width: 12%; padding: 0.75pt"> December 31, 2015 Range of inputs</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Loans held at fair value:</td> <td style="padding-top: 12pt; text-align: center">$ 3,238</td> <td style="padding-top: 12pt; text-align: center">$ 2,459</td> <td style="padding-top: 12pt; text-align: center">Discounted cash flow</td> <td style="padding-top: 12pt; text-align: center">Constant prepayment rate</td> <td style="padding-top: 12pt; text-align: center">7.33% to   10.189 %</td> <td style="padding-top: 12pt; text-align: center">7.10% to 9.88%</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center">Weighted average discount rate</td> <td style="padding-top: 12pt; text-align: center">7.22% to   10.12%</td> <td style="padding-top: 12pt; text-align: center">7.76% to 9.94%</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center">Weighted average life</td> <td style="padding-top: 12pt; text-align: center">3.20yrs to    9.86 yrs</td> <td style="padding-top: 12pt; text-align: center">3.40 yrs to  8.78 yrs</td></tr> </table> 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: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 69%; padding-top: 12pt">(in 000’s)</td> <td style="width: 31%; padding-top: 12pt">Loans held at fair value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Balance at December 31, 2015</td> <td style="padding-top: 12pt; text-align: center">$   2,459</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Origination of loans</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Principal repayments</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Change in fair value of financial instruments</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Balance at June 30, 2016</td> <td style="padding-top: 12pt; text-align: center">$   3,238</td></tr> </table> 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).  The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of June 30, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015.   Carrying Value at June 30, 2016: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 16%">(in 000’s)</td> <td style="width: 21%; padding: 0.75pt">       Total</td> <td style="width: 15%; padding: 0.75pt"> Quoted Prices in Active markets for Identical Assets (Level 1)</td> <td style="width: 16%; padding: 0.75pt"> Significant Other Observable Inputs (Level 2)</td> <td style="width: 16%; padding: 0.75pt"> Significant Unobservable Inputs (Level 3)</td> <td style="width: 16%; padding: 0.75pt"> Total fair value gain (loss) during 3 months ended  </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding: 0.75pt"> Impaired loans  </td> <td style="padding: 0.75pt"> $ 2,184  </td> <td style="padding: 0.75pt"> $   -  </td> <td style="padding: 0.75pt"> $   -  </td> <td style="padding: 0.75pt"> $ 2,184  </td> <td style="padding: 0.75pt"> $   -  </td></tr> <tr style="vertical-align: top"> <td>Other real estate owned (“OREO”)</td> <td style="padding: 0.75pt">   $     447</td> <td style="padding: 0.75pt">   $   -</td> <td style="padding: 0.75pt">   $    -</td> <td style="padding: 0.75pt">   $     447</td> <td style="padding: 0.75pt">       -</td></tr> </table>   Carrying Value at December 31, 2015: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 16%">(in 000’s)</td> <td style="width: 21%; padding: 0.75pt">       Total</td> <td style="width: 15%; padding: 0.75pt"> Quoted Prices in Active markets for Identical Assets (Level 1)</td> <td style="width: 16%; padding: 0.75pt">   Significant Other Observable Inputs (Level 2)</td> <td style="width: 16%; padding: 0.75pt">   Significant Unobservable Inputs (Level 3)</td> <td style="width: 16%; padding: 0.75pt"> Total fair value gain (loss) during 12 months ended  </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding: 0.75pt"> Impaired Loans  </td> <td style="padding: 0.75pt"> $ 2,424  </td> <td style="padding: 0.75pt">   $       -  </td> <td style="padding: 0.75pt"> $      -  </td> <td style="padding: 0.75pt"> $  2,424  </td> <td style="padding: 0.75pt">             $   -     </td></tr> <tr style="vertical-align: top"> <td>Other real estate owned (“OREO”)</td> <td style="padding: 0.75pt">   $    480</td> <td style="padding: 0.75pt">      $        -</td> <td style="padding: 0.75pt">   $        -</td> <td style="padding: 0.75pt">   $    480</td> <td style="padding: 0.75pt">   $   39</td></tr> </table> The measured impairment for collateral dependent impaired loans is determined by the fair value of the collateral less estimated liquidation costs.  Collateral values for loans and OREO are determined by annual or more frequent appraisals if warranted by volatile market conditions, which may be discounted up to 10% based upon management’s review and the estimated cost of liquidation. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach.  Adjustments are routinely made on the appraisal process by the appraisers for differences between the comparable sales and income data available.  Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation allowance for impaired loans is adjusted as necessary based on changes in the value of collateral as well as the cost of liquidation.  It is included in the allowance for loan losses in the consolidated statements of condition. Fair Value of Financial Instruments FASB ASC Topic 825 requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values. Investment securities: Fair values for investment securities available-for-sale are as described above.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.   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 held at fair value: The fair value of loans held at fair value 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.   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.   Accrued interest receivable:  The carrying amount of accrued interest receivable approximates fair value. 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. Accrued interest payable:  The carrying amounts of accrued interest payable approximate fair value. 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.  The carrying amount of accrued interest payable approximates fair market value.   The fair value of assets and liabilities are depicted below:   <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center"> </td> <td colspan="2" style="text-align: center">June 30, 2016</td> <td colspan="2" style="text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: top"> <td style="width: 33%">(in 000’s)</td> <td style="width: 15%; text-align: center">Level in</td> <td style="width: 13%; text-align: center">Carrying</td> <td style="width: 13%; text-align: center">Fair</td> <td style="width: 13%; text-align: center">Carrying</td> <td style="width: 13%; text-align: center">Fair</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Value Hierarchy</td> <td style="text-align: center">Amount</td> <td style="text-align: center">Value</td> <td style="text-align: center">Amount</td> <td style="text-align: center">Value</td></tr> <tr style="vertical-align: top"> <td>(Dollars in thousands)</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Assets:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>Cash and cash equivalents</td> <td style="text-align: center">Level 1</td> <td style="text-align: right">$ 5,223</td> <td style="text-align: right">$ 5,223</td> <td style="text-align: right">$ 10,782</td> <td style="text-align: right">$  10,782</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Available for sale securities</td> <td style="text-align: center">(1)</td> <td style="text-align: right">6,703</td> <td style="text-align: right">6,703</td> <td style="text-align: right">7,572</td> <td style="text-align: right">7,572</td></tr> <tr style="vertical-align: top"> <td>Loans held for sale</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">7,137</td> <td style="text-align: right">7,137</td> <td style="text-align: right">3,261</td> <td style="text-align: right">3,261</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans held at fair value</td> <td style="text-align: center">Level 3</td> <td style="text-align: right">3,238</td> <td style="text-align: right">3,238</td> <td style="text-align: right">2,459</td> <td style="text-align: right">2,459</td></tr> <tr style="vertical-align: top"> <td>Loans, net of allowance for loan losses</td> <td style="text-align: center">(2)</td> <td style="text-align: right">30,359</td> <td style="text-align: right">30,359</td> <td style="text-align: right">33,101</td> <td style="text-align: right">33,082</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Accrued interest receivable</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">203</td> <td style="text-align: right">203</td> <td style="text-align: right">175</td> <td style="text-align: right">175</td></tr> <tr style="vertical-align: top"> <td>Liabilities:</td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Demand deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">28,418</td> <td style="text-align: right">28,418</td> <td style="text-align: right">30,022</td> <td style="text-align: right">30,022</td></tr> <tr style="vertical-align: top"> <td>Savings deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">11,323</td> <td style="text-align: right">11,323</td> <td style="text-align: right">11,681</td> <td style="text-align: right">11,681</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Time deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">11,566</td> <td style="text-align: right">11,566</td> <td style="text-align: right">14,259</td> <td style="text-align: right">14,242</td></tr> <tr style="vertical-align: top"> <td>Accrued interest payable</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">13</td> <td style="text-align: right">13</td> <td style="text-align: right">9</td> <td style="text-align: right">9</td></tr> </table> <kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(1) </kbd>Level 1 for money market funds; Level 2 for all other securities.  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(2) </kbd>Level 2 for non-impaired loans; Level 3 for impaired loans.

9. Regulatory    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 requirements and status of items included in the Consent Orders are as follows: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 55%; border: black 1pt solid; text-align: center">Requirement</td> <td style="width: 45%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">Status</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Board participation improved with attendance at board and committee meetings.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An engagement letter from a qualified consultant was received and approved by the Bank’s regulators.  Upon acceptance, the review commenced in May 2012 and was completed in June 2012.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Formulate and implement written profit and budget plans for each year during which the orders are in effect;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Profit and budget plans have been prepared and submitted to regulators as required annually.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually; </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An annual comprehensive strategic plan was prepared and submitted to regulators as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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 regulatory examination;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Eliminate all assets classified as “Loss” at its current regulatory examination;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">All assets classified as “Loss” have been eliminated.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.</td></tr> </table>    <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 55%; border: black 1pt solid; text-align: center">Requirement</td> <td style="width: 45%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">Status</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s interest rate risk policy and procedures were submitted to regulators as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Revise its liquidity and funds management policy and update and review the policy annually;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Refrain from accepting any brokered deposits;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank did not accept brokered deposits.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Refrain from paying cash dividends without prior approval of the FDIC and the Department;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank did not pay cash dividends.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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 </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Quarterly reports were prepared and submitted   as required.</td></tr> </table>   The 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 June 20, 2016 and December 31, 2015, the Bank’s tier one leverage capital ratio was 5.06% and 4.57%, respectively, and its total risk based capital ratio was 8.56% and 8.50%, respectively. The net loss for the six months ended June 30, 2015 resulted in a decline in the tier one leverage ratio; however, the total risk based capital ratio increased because of the decrease in loans during the period that generally carry a higher risk weight than cash or investments.  Management has developed and submitted a Capital Plan that focuses on the following:   <kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1. </kbd>Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital.   <kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2. </kbd>External equity investments—an investment banker has been engaged to help the Bank generate external capital investments.        As a result of the above actions, management believes that the Bank has and will continue to attempt to comply with the terms and conditions of the Orders and will continue to operate as a going concern and an independent financial institution for the foreseeable future.

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.

Commitments In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.

Contingencies The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.

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 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.   Loans Held at Fair Value 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.

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.

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:   <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During regularly scheduled meetings of the Asset Quality Committee  <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During regular reviews of the delinquency report  <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  During the course of routine account servicing, annual review, or credit file update   <kbd style="font-family: Courier New, Courier, Monospace"> </kbd>  Upon receipt of verifiable evidence of a material reduction in the value of collateral to a level that creates a less than desirable Loan-to-Value ratio  <kbd style="font-family: Courier New, Courier, Monospace; position: absolute"> </kbd> 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.

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.

Income Taxes Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities.  Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not.   For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards.  If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount. 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. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

The calculation of net loss per share follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 25%; padding-top: 12pt"> </td> <td style="width: 21%; padding-top: 12pt; text-align: center">Three Months Ended     June 30, 2016</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Three Months Ended June 30, 2015</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Six Months Ended   June 30, 2016</td> <td style="width: 18%; padding-top: 12pt; text-align: center">Six Months Ended   June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Basic:</td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Net loss available to common shareholders</td> <td style="padding-top: 12pt; text-align: center">$ 316,352</td> <td style="padding-top: 12pt; text-align: center">$ (117,949)</td> <td style="padding-top: 12pt; text-align: center">$ 116,035  </td> <td style="padding-top: 12pt; text-align: center">$  (103,096)</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Average common shares outstanding-basic</td> <td style="padding-top: 12pt; text-align: center"> 826,921</td> <td style="padding-top: 12pt; text-align: center"> 826,921</td> <td style="padding-top: 12pt; text-align: center">  826,921</td> <td style="padding-top: 12pt; text-align: center">986,262</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Net loss per share-basic</td> <td style="padding-top: 12pt; text-align: center">$  0.38</td> <td style="padding-top: 12pt; text-align: center">$  (0.14)</td> <td style="padding-top: 12pt; text-align: center">$  0.14</td> <td style="padding-top: 12pt; text-align: center">$ (0.10)</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Diluted:</td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Average common shares-diluted</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">826,921</td> <td style="padding-top: 12pt; text-align: center">986,262</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Net loss per share-diluted</td> <td style="padding-top: 12pt; text-align: center">$ 0.38</td> <td style="padding-top: 12pt; text-align: center">$   (0.14)</td> <td style="padding-top: 12pt; text-align: center">$  0.14</td> <td style="padding-top: 12pt; text-align: center">$  (0.10)</td></tr> </table>

The following table presents the changes in other comprehensive income: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Three Months Ended June 30, 2016</td></tr> <tr style="vertical-align: top"> <td style="width: 52%; padding-left: 13.5pt"> </td> <td style="width: 16%; padding-left: 13.5pt; text-align: right">Before tax</td> <td style="width: 16%; padding-left: 13.5pt; text-align: right"> </td> <td style="width: 16%; padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized loss on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized holding loss arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$ 40   </td> <td style="padding-left: 13.5pt; text-align: right">$    13   </td> <td style="padding-left: 13.5pt; text-align: right">$     27    </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">      -</td> <td style="padding-left: 13.5pt; text-align: right">       -</td> <td style="padding-left: 13.5pt; text-align: right">        -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Other comprehensive loss, net</td> <td style="padding-left: 13.5pt; text-align: right">$ 40  </td> <td style="padding-left: 13.5pt; text-align: right">$    13   </td> <td style="padding-left: 13.5pt; text-align: right">$     27    </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Three Months Ended June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized gain on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized holding gain arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$  (104)   </td> <td style="padding-left: 13.5pt; text-align: right">$  26</td> <td style="padding-left: 13.5pt; text-align: right">$  (78)</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Other comprehensive income, net</td> <td style="padding-left: 13.5pt; text-align: right">$  (104)</td> <td style="padding-left: 13.5pt; text-align: right">$  26</td> <td style="padding-left: 13.5pt; text-align: right">$  (78)</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Six Months Ended June 30, 2016</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized loss on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized holding loss arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$ 135   </td> <td style="padding-left: 13.5pt; text-align: right">$    44   </td> <td style="padding-left: 13.5pt; text-align: right">$     91    </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">      -</td> <td style="padding-left: 13.5pt; text-align: right">       -</td> <td style="padding-left: 13.5pt; text-align: right">        -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Other comprehensive loss, net</td> <td style="padding-left: 13.5pt; text-align: right">$ 135  </td> <td style="padding-left: 13.5pt; text-align: right">$    44   </td> <td style="padding-left: 13.5pt; text-align: right">$     91    </td></tr> <tr style="vertical-align: top"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-right: -4.5pt; padding-left: 13.5pt"> </td> <td colspan="3" style="padding-right: -4.5pt; padding-left: 13.5pt; text-align: center">Six Months Ended June 30, 2015</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt"> </td> <td style="padding-left: 13.5pt; text-align: right">Before tax</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right">Net of tax</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">(in (000’s)</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td> <td style="padding-left: 13.5pt; text-align: right">Taxes</td> <td style="padding-left: 13.5pt; text-align: right">Amount</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Unrealized gain on securities:</td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">Unrealized holding gain arising during period</td> <td style="padding-left: 13.5pt; text-align: right">$  (32)   </td> <td style="padding-left: 13.5pt; text-align: right">$  11</td> <td style="padding-left: 13.5pt; text-align: right">$  (21)</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Less: reclassification adjustment for gains (losses)</td> <td style="text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td> <td style="padding-left: 13.5pt; text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-left: 13.5pt">   realized in net loss</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td> <td style="padding-left: 13.5pt; text-align: right">    -</td></tr> <tr style="vertical-align: top"> <td style="padding-left: 13.5pt">Other comprehensive income, net</td> <td style="padding-left: 13.5pt; text-align: right">$  (32)</td> <td style="padding-left: 13.5pt; text-align: right">$  11</td> <td style="padding-left: 13.5pt; text-align: right">$  (21)</td></tr> </table>

The following is a summary of the Company's investment portfolio:  <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000’s)</td> <td colspan="4" style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td></tr> <tr style="vertical-align: top"> <td style="width: 43%"> </td> <td style="width: 16%; text-align: right"> </td> <td style="width: 14%; border-top: black 1pt solid; text-align: right">Gross</td> <td style="width: 14%; border-top: black 1pt solid; text-align: right">Gross</td> <td style="width: 13%; border-top: black 1pt solid; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right">Amortized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">unrealized</td> <td style="text-align: right">Fair</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">Cost</td> <td style="border-bottom: black 1pt solid; text-align: right">Gains</td> <td style="border-bottom: black 1pt solid; text-align: right">losses</td> <td style="border-bottom: black 1pt solid; text-align: right">Value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Available-for-sale:</td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$  2,950</td> <td style="vertical-align: bottom; text-align: right">$      3  </td> <td style="vertical-align: bottom; text-align: right">$   -   </td> <td style="vertical-align: bottom; text-align: right">$  2,953  </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,517</td> <td style="vertical-align: bottom; text-align: right">103</td> <td style="vertical-align: bottom; text-align: right">-   </td> <td style="vertical-align: bottom; text-align: right">3,620</td></tr> <tr> <td style="vertical-align: top">Investments in money market funds</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">-</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">-   </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right">$6,597</td> <td style="vertical-align: bottom; text-align: right">$  106   </td> <td style="vertical-align: bottom; text-align: right">$   -  </td> <td style="vertical-align: bottom; text-align: right">$  6,703  </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="4" style="border-top: black 2.25pt double; text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-top: black 1pt solid; text-align: right"> </td> <td style="border-top: black 1pt solid; text-align: right">Gross</td> <td style="border-top: black 1pt solid; text-align: right">Gross</td> <td style="border-top: black 1pt solid; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right">Amortized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">Unrealized</td> <td style="text-align: right">Fair</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">Cost</td> <td style="border-bottom: black 1pt solid; text-align: right">Gains</td> <td style="border-bottom: black 1pt solid; text-align: right">Losses</td> <td style="border-bottom: black 1pt solid; text-align: right">Value</td></tr> <tr style="vertical-align: top"> <td>Available-for-sale:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$  3,697</td> <td style="vertical-align: bottom; text-align: right">$      3</td> <td style="vertical-align: bottom; text-align: right">$   (38)</td> <td style="vertical-align: bottom; text-align: right">$   3,662</td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,774</td> <td style="vertical-align: bottom; text-align: right">36</td> <td style="vertical-align: bottom; text-align: right">     (30)</td> <td style="vertical-align: bottom; text-align: right"> 3,780</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investments in money market funds</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">   -</td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">        -    </td> <td style="vertical-align: bottom; border-bottom: black 1pt solid; text-align: right">130</td></tr> <tr> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$  7,601 </td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$   39</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$   (68)</td> <td style="vertical-align: bottom; border-bottom: black 2.25pt double; text-align: right">$  7,572</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> </table>

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows:   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000’s)</td> <td colspan="3" style="text-align: right">Amortized Cost</td> <td style="text-align: center"> </td> <td style="text-align: right">Fair Value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="width: 49%">Due in one year</td> <td style="width: 3%"> </td> <td style="width: 17%"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$-</kbd> </td> <td style="width: 2%"> </td> <td style="width: 3%"> </td> <td style="width: 26%"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$-</kbd> </td></tr> <tr style="vertical-align: top"> <td>Due after one year through five years</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Due after five years through ten years</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2,950</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2,953</kbd> </td></tr> <tr style="vertical-align: top"> <td>Government Sponsored Enterprises residential mortgage-backed securities</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3,517</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3,620</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total debt securities</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6,467</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6,573</kbd> </td></tr> <tr style="vertical-align: top"> <td>Investments in money market funds</td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">130</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">130</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6,597</kbd> </td> <td> </td> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6,703</kbd> </td></tr> </table>

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Number</td> <td colspan="2" style="text-align: center">Less than 12 months</td> <td colspan="2" style="text-align: center">12 months or longer</td> <td colspan="2" style="text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td style="width: 23%">Description of</td> <td style="width: 8%; text-align: center">Of</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 14%; text-align: center">Unrealized</td> <td style="width: 11%; text-align: center">Fair</td> <td style="width: 12%; text-align: center">Unrealized</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 16%; text-align: center">Unrealized</td></tr> <tr style="vertical-align: top"> <td>Securities</td> <td style="text-align: center">Securities</td> <td style="text-align: center">Value</td> <td style="text-align: center">Losses</td> <td style="text-align: center">Value</td> <td style="text-align: center">losses</td> <td style="text-align: center">value</td> <td style="text-align: center">Losses</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>U.S. Government</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">   agency securities</td> <td style="vertical-align: bottom; text-align: right">9   </td> <td style="vertical-align: bottom; text-align: right">$ 2,703   </td> <td style="vertical-align: bottom; text-align: right">$ 3   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 2,703   </td> <td style="vertical-align: bottom; text-align: right">$ 3   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">55   </td> <td style="vertical-align: bottom; text-align: right">2,042   </td> <td style="vertical-align: bottom; text-align: right">50   </td> <td style="vertical-align: bottom; text-align: right">53   </td> <td style="vertical-align: bottom; text-align: right">1,341   </td> <td style="vertical-align: bottom; text-align: right">3,383   </td> <td style="vertical-align: bottom; text-align: right">103   </td></tr> <tr> <td style="vertical-align: top">Total temporarily</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">impaired investment</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">    Securities</td> <td style="vertical-align: bottom; text-align: right">64   </td> <td style="vertical-align: bottom; text-align: right">$ 4,745   </td> <td style="vertical-align: bottom; text-align: right">$ 53   </td> <td style="vertical-align: bottom; text-align: right">$ 53   </td> <td style="vertical-align: bottom; text-align: right">$ 1,341   </td> <td style="vertical-align: bottom; text-align: right">$ 6,086   </td> <td style="vertical-align: bottom; text-align: right">$ 106   </td></tr> </table>   The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2015: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Number</td> <td colspan="2" style="text-align: center">Less than 12 months</td> <td colspan="2" style="text-align: center">12 months or longer</td> <td colspan="2" style="text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td style="width: 23%">Description of</td> <td style="width: 8%; text-align: center">of</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 14%; text-align: center">Unrealized</td> <td style="width: 11%; text-align: center">Fair</td> <td style="width: 12%; text-align: center">Unrealized</td> <td style="width: 8%; text-align: center">Fair</td> <td style="width: 16%; text-align: center">Unrealized</td></tr> <tr style="vertical-align: top"> <td>Securities</td> <td style="text-align: center">securities</td> <td style="text-align: center">Value</td> <td style="text-align: center">Losses</td> <td style="text-align: center">Value</td> <td style="text-align: center">losses</td> <td style="text-align: center">value</td> <td style="text-align: center">Losses</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>U.S. Government</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr> <td style="vertical-align: top">    agency securities</td> <td style="vertical-align: bottom; text-align: right">9   </td> <td style="vertical-align: bottom; text-align: right">$ 2,416   </td> <td style="vertical-align: bottom; text-align: right">$ (32)  </td> <td style="vertical-align: bottom; text-align: right">$ 243   </td> <td style="vertical-align: bottom; text-align: right">$ (6)  </td> <td style="vertical-align: bottom; text-align: right">$ 2,659   </td> <td style="vertical-align: bottom; text-align: right">$ (38)  </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">Government Sponsored Enterprises residential</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-left: 9pt; text-indent: -9pt">   mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">8   </td> <td style="vertical-align: bottom; text-align: right">1,486   </td> <td style="vertical-align: bottom; text-align: right">(19)  </td> <td style="vertical-align: bottom; text-align: right">227   </td> <td style="vertical-align: bottom; text-align: right">(11)  </td> <td style="vertical-align: bottom; text-align: right">1,713   </td> <td style="vertical-align: bottom; text-align: right">(30)  </td></tr> <tr> <td style="vertical-align: top">Total temporarily</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">impaired investment</td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top">    securities</td> <td style="vertical-align: bottom; text-align: right">17   </td> <td style="vertical-align: bottom; text-align: right">$ 3,902   </td> <td style="vertical-align: bottom; text-align: right">$ (51)  </td> <td style="vertical-align: bottom; text-align: right">$ 470   </td> <td style="vertical-align: bottom; text-align: right">$ (17)  </td> <td style="vertical-align: bottom; text-align: right">$ 4,372   </td> <td style="vertical-align: bottom; text-align: right">$ (68)  </td></tr> </table>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 60%; padding-top: 12pt; padding-bottom: 4pt">(Dollars in thousands)</td> <td style="width: 20%; border-bottom: black 1pt solid; padding: 0.75pt">   June 30, 2016</td> <td style="width: 20%; border-bottom: black 1pt solid; padding-top: 12pt; padding-bottom: 4pt; text-align: center">December 31, 2015</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">Commercial and industrial</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 2,904</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$  3,062</td></tr> <tr> <td style="vertical-align: top; padding-top: 12pt">Commercial real estate</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">24,066</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">26,414</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">Consumer real estate</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">2,709</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">2,841</td></tr> <tr> <td style="vertical-align: top; padding-top: 12pt">Consumer loans other</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">1,042</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">1,202</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding-top: 12pt">          Total loans</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 30,722</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: center">$ 33,519</td></tr> </table>

The following table presents an analysis of the allowance for loan losses. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Three months ended June 30, 2016</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$120</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$241</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$14</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$9</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$384</kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td style="border-bottom: black 1pt solid">Ending balance</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$87</kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$245</kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$13</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$10</kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$355</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-bottom: black 1pt solid">For the Three months ended June 30, 2015</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$344 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$300 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$21</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$15 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$680 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">24 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(64)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(40)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(2)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(50)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(44)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$320 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$236 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$23</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$17 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$596 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Six months ended June 30, 2016</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$151 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$250 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$8 </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$9 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$418 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(5)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(5)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(41)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(22)</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(3)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(66)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">8 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs) recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">2 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(41)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(58)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$87 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$245 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$13 </kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$10 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$355 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="6" style="border-top: black 1pt solid; border-bottom: black 1pt solid">For the Six months ended June 30, 2015</td> <td style="border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td colspan="3" style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$403 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$300 </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$20</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$12 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$735 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Provision (credit) for loan losses</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(36)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(64)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(100)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Charge-offs</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(48)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(14)</kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(62)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Recoveries</td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3</kbd> </td> <td colspan="3" style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">19 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">23 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Net (charge-offs)recoveries</td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(47)</kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td colspan="2"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3</kbd> </td> <td colspan="3"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">5 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(39)</kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="text-align: right"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Ending balance</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$320 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$236 </kbd> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$23</kbd> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$17 </kbd> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$596 </kbd> </td></tr> <tr> <td style="width: 25%"> </td> <td style="width: 11%"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 15%"> </td> <td style="width: 1%"> </td> <td style="width: 16%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td> <td style="width: 2%"> </td> <td style="width: 12%"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid">(in 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="5" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Period-end amount allocated to:</td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans individually evaluated for impairment</td> <td colspan="2" style="padding: 0.75pt">   $          -    </td> <td style="padding: 0.75pt">   $        71</td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td colspan="2" style="padding: 0.75pt">   $         71</td></tr> <tr style="vertical-align: top"> <td>Loans collectively  evaluated for impairment</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   173  </td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   99</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   10</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   284</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$      173</td> <td style="border-bottom: black 2.25pt double; text-align: right">$      170</td> <td style="border-bottom: black 2.25pt double; text-align: right">$         2</td> <td style="border-bottom: black 2.25pt double; text-align: right">$      10</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$       355</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans, ending balance:</td> <td colspan="2"> </td> <td> </td> <td> </td> <td> </td> <td colspan="2"> </td></tr> <tr style="vertical-align: top"> <td>Loans individually evaluated for impairment</td> <td colspan="2" style="padding: 0.75pt">   $      437</td> <td style="padding: 0.75pt">   $    1,747</td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td colspan="2" style="padding: 0.75pt">   $    2,184</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans collectively  evaluated for impairment</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   2,468</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   22,319</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,709</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   1,042</td> <td colspan="2" style="border-bottom: black 1pt solid; padding: 0.75pt">   28,538</td></tr> <tr style="vertical-align: top"> <td>Total</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$   2,905</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  24,066</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,709</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  1,042</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  30,722</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td style="border-bottom: black 1pt solid; text-align: center"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr> <td style="width: 25%"> </td> <td style="width: 14%"> </td> <td style="width: 1%"> </td> <td style="width: 15%"> </td> <td style="width: 15%"> </td> <td style="width: 15%"> </td> <td style="width: 1%"> </td> <td style="width: 14%"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 25%"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center">December 31, 2015</td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td> <td style="width: 15%; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial and industrial</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Commercial real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer real estate</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt"> Consumer loans Other</td> <td style="border-bottom: black 1pt solid; text-align: center">Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Period-end amount allocated to:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans individually evaluated for impairment</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $        91       </td> <td style="padding: 0.75pt">   $          -</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $       91</td></tr> <tr style="vertical-align: top"> <td>Loans collectively  evaluated for impairment</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   151</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   159</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   8</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   9</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   327</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    151</td> <td style="border-bottom: black 2.25pt double; text-align: right">$       50</td> <td style="border-bottom: black 2.25pt double; text-align: right">$         8</td> <td style="border-bottom: black 2.25pt double; text-align: right">$        9</td> <td style="border-bottom: black 2.25pt double; text-align: right">$     418</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans, ending balance:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Loans individually evaluated for impairment</td> <td style="padding: 0.75pt">   $     439</td> <td style="padding: 0.75pt">   $   2,076</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $         -</td> <td style="padding: 0.75pt">   $   2,515</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans collectively  evaluated for impairment</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,623</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   24,338</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   2,841</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   1,202</td> <td style="border-bottom: black 1pt solid; padding: 0.75pt">   31,004</td></tr> <tr style="vertical-align: top"> <td>Total</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  3,062</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 26,414</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 2,841</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,202</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 33,519</td></tr> </table>

An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 is as follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 32%"> </td> <td style="width: 13%; text-align: center"> </td> <td style="width: 10%; text-align: center">Accruing</td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 12%; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Loans</td> <td style="text-align: center">Loans 90 or</td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="text-align: center">30-89 Days</td> <td style="text-align: center">More Days</td> <td style="text-align: center"> </td> <td style="text-align: center">Total Past</td> <td style="text-align: center">Current</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Nonaccrual</td> <td style="border-bottom: black 1pt solid; text-align: center">Due Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Total Loans</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$        -</td> <td style="text-align: right">$     -</td> <td style="text-align: right">$     109</td> <td style="text-align: right">$    109</td> <td style="text-align: right">$   1,348</td> <td style="text-align: right">$    1,457</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td></tr> <tr style="vertical-align: top"> <td>    Asset-based </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">1,120</td> <td style="border-bottom: black 1pt solid; text-align: right">1,409</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>       Total Commercial and industrial</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-bottom: black 1pt solid; text-align: right">2,468</td> <td style="border-bottom: black 1pt solid; text-align: right">2,905</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial mortgages</td> <td style="text-align: right">-</td> <td style="text-align: right">18</td> <td style="text-align: right">1,280</td> <td style="text-align: right">1,298</td> <td style="text-align: right">11,538</td> <td style="text-align: right">12,836</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">263</td> <td style="text-align: right">263</td> <td style="text-align: right">325</td> <td style="text-align: right">588</td></tr> <tr style="vertical-align: top"> <td>    Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">1,250</td> <td style="text-align: right">1,250</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">9,188</td> <td style="border-bottom: black 1pt solid; text-align: right">9,392</td></tr> <tr style="vertical-align: top"> <td>        Total Commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">18</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">1,765</td> <td style="border-bottom: black 1pt solid; text-align: right">22,301</td> <td style="border-bottom: black 1pt solid; text-align: right">24,066</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity loans</td> <td style="text-align: right">-</td> <td style="text-align: right">147</td> <td style="text-align: right">333</td> <td style="text-align: right">480</td> <td style="text-align: right">353</td> <td style="text-align: right">833</td></tr> <tr style="vertical-align: top"> <td>    Home equity lines of credit</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">20</td> <td style="text-align: right">20</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">1,727</td> <td style="border-bottom: black 1pt solid; text-align: right">1,856</td></tr> <tr style="vertical-align: top"> <td>        Total consumer real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">147</td> <td style="border-bottom: black 1pt solid; text-align: right">462</td> <td style="border-bottom: black 1pt solid; text-align: right">609</td> <td style="border-bottom: black 1pt solid; text-align: right">2,100</td> <td style="border-bottom: black 1pt solid; text-align: right">2,709</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total real estate </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">165</td> <td style="border-bottom: black 1pt solid; text-align: right">2,209</td> <td style="border-bottom: black 1pt solid; text-align: right">2,374</td> <td style="border-bottom: black 1pt solid; text-align: right">24,401</td> <td style="border-bottom: black 1pt solid; text-align: right">26,775</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer and other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer installment</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">24</td> <td style="text-align: right">71</td> <td style="text-align: right">-</td> <td style="text-align: right">95</td> <td style="text-align: right">826</td> <td style="text-align: right">921</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">1</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">1</td> <td style="border-bottom: black 1pt solid; text-align: right">120</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td></tr> <tr style="vertical-align: top"> <td>        Total consumer and other</td> <td style="border-bottom: black 1pt solid; text-align: right">24</td> <td style="border-bottom: black 1pt solid; text-align: right">72</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">96</td> <td style="border-bottom: black 1pt solid; text-align: right">946</td> <td style="border-bottom: black 1pt solid; text-align: right">1,042</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    24</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  237</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,646</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,907</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  27,815</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 30,722   </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> </table>   An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 is as follows: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 31%"> </td> <td style="width: 10%; text-align: center"> </td> <td style="width: 13%; text-align: center">Accruing</td> <td style="width: 12%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 11%; text-align: center"> </td> <td style="width: 12%; text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Loans</td> <td style="text-align: center">Loans 90 or</td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">30-89 Days</td> <td style="text-align: center">More Days</td> <td style="text-align: center"> </td> <td style="text-align: center">Total Past</td> <td style="text-align: center">Current</td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Past Due</td> <td style="border-bottom: black 1pt solid; text-align: center">Nonaccrual</td> <td style="border-bottom: black 1pt solid; text-align: center">Due Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="border-bottom: black 1pt solid; text-align: center">Total Loans</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$     -</td> <td style="text-align: right">$       -</td> <td style="text-align: right">$   110</td> <td style="text-align: right">$   110</td> <td style="text-align: right">$   1,425</td> <td style="text-align: right">$   1,535</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td></tr> <tr style="vertical-align: top"> <td>    Asset-based </td> <td style="border-bottom: black 1pt solid; text-align: right">11</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">300</td> <td style="border-bottom: black 1pt solid; text-align: right">1,187</td> <td style="border-bottom: black 1pt solid; text-align: right">1,487</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>       Total Commercial and industrial</td> <td style="border-bottom: black 1pt solid; text-align: right">11</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">439</td> <td style="border-bottom: black 1pt solid; text-align: right">450</td> <td style="border-bottom: black 1pt solid; text-align: right">2,612</td> <td style="border-bottom: black 1pt solid; text-align: right">3,062</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>     Commercial mortgages</td> <td style="text-align: right">169</td> <td style="text-align: right">39</td> <td style="text-align: right">1,335</td> <td style="text-align: right">1,543</td> <td style="text-align: right">12,231</td> <td style="text-align: right">13,774</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>     SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">271</td> <td style="text-align: right">82</td> <td style="text-align: right">353</td></tr> <tr style="vertical-align: top"> <td>    Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td> <td style="text-align: right">2,175</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">9,641</td> <td style="border-bottom: black 1pt solid; text-align: right">10,112</td></tr> <tr style="vertical-align: top"> <td>        Total Commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">169</td> <td style="border-bottom: black 1pt solid; text-align: right">39</td> <td style="border-bottom: black 1pt solid; text-align: right">2,077</td> <td style="border-bottom: black 1pt solid; text-align: right">2,285</td> <td style="border-bottom: black 1pt solid; text-align: right">24,129</td> <td style="border-bottom: black 1pt solid; text-align: right">26,414</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity loans</td> <td style="text-align: right">56</td> <td style="text-align: right">125</td> <td style="text-align: right">358</td> <td style="text-align: right">539</td> <td style="text-align: right">358</td> <td style="text-align: right">897</td></tr> <tr style="vertical-align: top"> <td>    Home equity lines of credit</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">20</td> <td style="text-align: right">20</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">35</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">164</td> <td style="border-bottom: black 1pt solid; text-align: right">1,760</td> <td style="border-bottom: black 1pt solid; text-align: right">1,924</td></tr> <tr style="vertical-align: top"> <td>        Total consumer real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">91</td> <td style="border-bottom: black 1pt solid; text-align: right">125</td> <td style="border-bottom: black 1pt solid; text-align: right">487</td> <td style="border-bottom: black 1pt solid; text-align: right">703</td> <td style="border-bottom: black 1pt solid; text-align: right">2,138</td> <td style="border-bottom: black 1pt solid; text-align: right">2,841</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total real estate </td> <td style="border-bottom: black 1pt solid; text-align: right">260</td> <td style="border-bottom: black 1pt solid; text-align: right">164</td> <td style="border-bottom: black 1pt solid; text-align: right">2,564</td> <td style="border-bottom: black 1pt solid; text-align: right">2,988</td> <td style="border-bottom: black 1pt solid; text-align: right">26,267</td> <td style="border-bottom: black 1pt solid; text-align: right">29,255</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer and other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer installment</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">66</td> <td style="text-align: right">129</td> <td style="text-align: right">-</td> <td style="text-align: right">195</td> <td style="text-align: right">886</td> <td style="text-align: right">1,081</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">2</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">2</td> <td style="border-bottom: black 1pt solid; text-align: right">119</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td></tr> <tr style="vertical-align: top"> <td>        Total consumer and other</td> <td style="border-bottom: black 1pt solid; text-align: right">68</td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">197</td> <td style="border-bottom: black 1pt solid; text-align: right">1,005</td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    339</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    293</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    3,003</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    3,635</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    29,884</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  33,519</td></tr> </table>

The tables below detail the Bank’s loans by class according to their credit quality indictors discussed above.   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>(In 000's)</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding: 0.75pt"> Commercial Loans June 30, 2016</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt"> Good/ Excellent</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Satisfactory</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Pass</td> <td colspan="2" style="border-bottom: black 1.5pt solid; text-align: center">Special Mention</td> <td colspan="3" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Substandard</td> <td colspan="2" style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Doubtful</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>   Commercial </td> <td colspan="2" style="text-align: right">$   250</td> <td colspan="2" style="text-align: right">$   894</td> <td style="text-align: right">$    12</td> <td colspan="2" style="text-align: right">$      48</td> <td colspan="3" style="text-align: right">$    253</td> <td colspan="2" style="text-align: right">$  -</td> <td style="text-align: right">$  1,457</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   SBA loans</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">39</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">39</td></tr> <tr style="vertical-align: top"> <td>   Asset-based</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">834</td> <td style="border-bottom: black 1pt solid; text-align: right">210</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">289</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">1,409</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">250</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,728</td> <td style="border-bottom: black 1pt solid; text-align: right">222</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">48</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">581</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">2,905</td></tr> <tr style="vertical-align: top"> <td>Commercial real estate:</td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Commercial mortgages</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">9,035</td> <td style="text-align: right">1,937</td> <td colspan="2" style="text-align: right">567</td> <td colspan="3" style="text-align: right">1,076</td> <td colspan="2" style="text-align: right">221</td> <td style="text-align: right">12,836</td></tr> <tr style="vertical-align: top"> <td>    SBA Loans</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">325</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">263</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">588</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Construction</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right">1,250</td> <td style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td colspan="3" style="text-align: right">-</td> <td colspan="2" style="text-align: right">-</td> <td style="text-align: right">1,250</td></tr> <tr style="vertical-align: top"> <td>   Religious organizations</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">35</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">6,274</td> <td style="border-bottom: black 1pt solid; text-align: right">1,882</td> <td colspan="2" style="text-align: right">997</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">204</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">9,392</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">35</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">16,884</td> <td style="border-bottom: black 1pt solid; text-align: right">3,819</td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1,564</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right">1,543</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">221</td> <td style="border-bottom: black 1pt solid; text-align: right">24,066</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total commercial loans</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  285</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  18,612</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  4,041</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  1,612</td> <td colspan="3" style="border-bottom: black 2.25pt double; text-align: right">$  2,124</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  297</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 26,971</td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td colspan="3" style="text-align: center"> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid; padding: 0.75pt"> Residential Mortgage and Consumer Loans June 30, 2016</td> <td colspan="3" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1.5pt solid">Performing</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid">Nonperforming</td> <td colspan="3" style="border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-bottom: black 1.5pt solid">Total</td> <td colspan="2" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Consumer Real Estate:</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Home equity</td> <td colspan="2" style="text-align: right">$   500</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">$   333</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">$   833</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity line of credit</td> <td colspan="2" style="text-align: right">20</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">20</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td style="padding-left: 9.6pt; text-indent: -9.6pt">    1-4 family residential mortgages</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,727</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,856</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">2,247</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">462</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">2,709</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Consumer Other:</td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Consumer Installment</td> <td colspan="2" style="text-align: right">-</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">-</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Student loans </td> <td colspan="2" style="text-align: right">921</td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right">-</td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right">921</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>    Other</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">121</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">121</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,042</td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right"> </td> <td colspan="2" style="border-bottom: black 1pt solid; text-align: right">1,042</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td style="text-align: right"> </td> <td colspan="3" style="text-align: right"> </td> <td colspan="2" style="text-align: right"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total  consumer loans</td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  3,289</td> <td colspan="2" style="border-bottom: black 2.25pt double"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$   462</td> <td colspan="3" style="border-bottom: black 2.25pt double"> </td> <td colspan="2" style="border-bottom: black 2.25pt double; text-align: right">$  3,751</td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total loans</td> <td colspan="2"> </td> <td colspan="2"> </td> <td> </td> <td colspan="3"> </td> <td colspan="2"> </td> <td colspan="2"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; text-align: right">$ 30,722</td></tr> <tr> <td style="width: 28%"> </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 10%"> </td> <td style="width: 1%"> </td> <td style="width: 14%"> </td> <td style="width: 6%"> </td> <td style="width: 3%"> </td> <td style="width: 1%"> </td> <td style="width: 7%"> </td> <td style="width: 2%"> </td> <td style="width: 7%"> </td> <td style="width: 1%"> </td> <td style="width: 9%"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; border-bottom: black 1.5pt solid; padding: 0.75pt"> Commercial Loans, December 31, 2015</td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td> <td style="border-top: black 1pt solid; border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt"> Good/ Excellent</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Satisfactory</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Pass</td> <td style="border-bottom: black 1.5pt solid; text-align: center">Special Mention</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Substandard</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Doubtful</td> <td style="border-bottom: black 1.5pt solid; padding: 0.75pt">   Total</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>   Commercial </td> <td style="text-align: right">$    285</td> <td style="text-align: right">$    922</td> <td style="text-align: right">$    16</td> <td style="text-align: right">$    58</td> <td style="text-align: right">$    254</td> <td style="text-align: right">$    -</td> <td style="text-align: right">$    1,535</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   SBA loans</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td></tr> <tr style="vertical-align: top"> <td>   Asset-based</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">900</td> <td style="border-bottom: black 1pt solid; text-align: right">222</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">289</td> <td style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">1,487</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">285</td> <td style="border-bottom: black 1pt solid; text-align: right">1,822</td> <td style="border-bottom: black 1pt solid; text-align: right">238</td> <td style="border-bottom: black 1pt solid; text-align: right">58</td> <td style="border-bottom: black 1pt solid; text-align: right">583</td> <td style="border-bottom: black 1pt solid; text-align: right">76</td> <td style="border-bottom: black 1pt solid; text-align: right">3,062</td></tr> <tr style="vertical-align: top"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Commercial mortgages</td> <td style="text-align: right">-</td> <td style="text-align: right">10,689</td> <td style="text-align: right">1,098</td> <td style="text-align: right">613</td> <td style="text-align: right">1,151</td> <td style="text-align: right">223</td> <td style="text-align: right">13,774</td></tr> <tr style="vertical-align: top"> <td>    SBA Loans</td> <td style="text-align: right">-</td> <td style="text-align: right">82</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td> <td style="text-align: right">353</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>   Construction</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">-</td> <td style="text-align: right">2,175</td></tr> <tr style="vertical-align: top"> <td>   Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">7,624</td> <td style="border-bottom: black 1pt solid; text-align: right">1,131</td> <td style="text-align: right">886</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">10,112</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">20,570</td> <td style="border-bottom: black 1pt solid; text-align: right">2,229</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">1,499</td> <td style="border-bottom: black 1pt solid; text-align: right">1,893</td> <td style="border-bottom: black 1pt solid; text-align: right">223</td> <td style="border-bottom: black 1pt solid; text-align: right">26,414</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Total commercial loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    285</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    22,392</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    2,467</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    1,557</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    2,476</td> <td style="border-bottom: black 2.25pt double; text-align: right">$    299</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  29,476</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td> <td colspan="2" style="border-top: black 1pt solid; padding: 0.75pt"> Residential Mortgage and Consumer Loans December 31, 2015</td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td> <td style="border-top: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td colspan="6" style="border-bottom: black 1.5pt solid"> </td> <td style="border-bottom: black 1.5pt solid"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td>Performing</td> <td> </td> <td colspan="2">Nonperforming</td> <td>Total</td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top"> <td>Consumer Real Estate:</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Home equity</td> <td style="text-align: right">$    539</td> <td style="text-align: right"> </td> <td style="text-align: right">$    358</td> <td style="text-align: right"> </td> <td style="text-align: right">$    897</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Home equity line of credit</td> <td style="text-align: right">20</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">20</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    1-4 family residential mortgages</td> <td style="border-bottom: black 1pt solid; text-align: right">1,795</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">129</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,924</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,354</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">487</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">2,841</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Consumer Other:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Consumer Installment</td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Student loans </td> <td style="text-align: right">1,081</td> <td style="text-align: right"> </td> <td style="text-align: right">-</td> <td style="text-align: right"> </td> <td style="text-align: right">1,081</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Other</td> <td style="border-bottom: black 1pt solid; text-align: right">121</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">121</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: right">1,202</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total  consumer loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  3,556</td> <td style="border-bottom: black 2.25pt double; text-align: right"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    487</td> <td style="border-bottom: black 2.25pt double; text-align: right"> </td> <td style="border-bottom: black 2.25pt double; text-align: right">$    4,043</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>Total loans</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="border-top: black 1pt solid; border-bottom: black 2.25pt double; text-align: right">$  33,519</td></tr> </table>

Impaired loans as of June 30, 2016 are set forth in the following table. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 36%">(In 000's)</td> <td style="width: 13%; text-align: center">Unpaid Contractual</td> <td style="width: 13%; padding: 0.75pt"> Recorded Investment</td> <td style="width: 13%; padding: 0.75pt"> Recorded Investment</td> <td style="width: 13%; padding: 0.75pt">   Total</td> <td style="width: 12%; text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: center">Principal</td> <td style="text-align: center">With No</td> <td style="text-align: center">With</td> <td style="text-align: center">Recorded</td> <td style="text-align: center">Related</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Balance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td> Commercial</td> <td style="text-align: right">$   109</td> <td style="text-align: right">$   109</td> <td style="text-align: right">$ -</td> <td style="text-align: right">$  109</td> <td style="text-align: right">$ -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td> SBA Loans</td> <td style="text-align: right">39</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td> <td style="text-align: right">39</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td> Asset-based</td> <td style="text-align: right">289</td> <td style="text-align: right">46</td> <td style="text-align: right">243</td> <td style="text-align: right">289</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Total commercial and industrial</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">194</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">243</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>  Commercial mortgages</td> <td style="text-align: right">1,280</td> <td style="text-align: right">806</td> <td style="text-align: right">474</td> <td style="text-align: right">1,280</td> <td style="text-align: right">67</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>  SBA Loans</td> <td style="text-align: right">263</td> <td style="text-align: right">163</td> <td style="text-align: right">100</td> <td style="text-align: right">263</td> <td style="text-align: right">4</td></tr> <tr style="vertical-align: top"> <td>  Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">204</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    Total commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">1,173</td> <td style="border-bottom: black 1pt solid; text-align: right">574</td> <td style="border-bottom: black 1pt solid; text-align: right">1,747</td> <td style="border-bottom: black 1pt solid; text-align: right">71</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,184</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,367</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  817</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 2,184 </td> <td style="border-bottom: black 2.25pt double; text-align: right">$  71</td></tr> </table> Impaired loans as of December 31, 2015 are set forth in the following table. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(In 000's)</td> <td style="text-align: center">Unpaid Contractual</td> <td style="text-align: center">Recorded Investment</td> <td style="text-align: center">Recorded Investment</td> <td style="padding: 0.75pt">   Total</td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: center">Principal</td> <td style="text-align: center">With No</td> <td style="text-align: center">With</td> <td style="text-align: center">Recorded</td> <td style="text-align: center">Related</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="border-bottom: black 1pt solid; text-align: center">Balance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td> <td style="border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="border-bottom: black 1pt solid; text-align: center">Allowance</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial and industrial:</td> <td style="text-align: right"> </td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial</td> <td style="text-align: right">$  818</td> <td style="text-align: right">$    353</td> <td style="text-align: right">$  -</td> <td style="text-align: right">$    353</td> <td style="text-align: right">$   -</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA loans</td> <td style="text-align: right">46</td> <td style="text-align: right">-</td> <td style="text-align: right">46</td> <td style="text-align: right">46</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Asset-based</td> <td style="text-align: right">40</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td> <td style="text-align: right">40</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>      Total commercial and industrial</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">904</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">393</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">46</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">439</td> <td style="border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Commercial real estate:</td> <td> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top"> <td>    Commercial mortgages</td> <td style="text-align: right">1,334</td> <td style="text-align: right">810</td> <td style="text-align: right">524</td> <td style="text-align: right">1,334</td> <td style="text-align: right">91</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>    SBA Loans</td> <td style="text-align: right">271</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td> <td style="text-align: right">271</td> <td style="text-align: right">-</td></tr> <tr style="vertical-align: top"> <td>    Religious organizations</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td> <td style="border-bottom: black 1pt solid; text-align: right">471</td> <td style="border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total commercial real estate</td> <td style="border-bottom: black 1pt solid; text-align: right">2,076</td> <td style="border-bottom: black 1pt solid; text-align: right">1,552</td> <td style="border-bottom: black 1pt solid; text-align: right">524</td> <td style="border-bottom: black 1pt solid; text-align: right">2,076</td> <td style="border-bottom: black 1pt solid; text-align: right">91</td></tr> <tr style="vertical-align: top"> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Total loans</td> <td style="border-bottom: black 2.25pt double; text-align: right">$2,980</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 1,945</td> <td style="border-bottom: black 2.25pt double; text-align: right">$   570</td> <td style="border-bottom: black 2.25pt double; text-align: right">$  2,515</td> <td style="border-bottom: black 2.25pt double; text-align: right">$ 91</td></tr> </table>

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. The following tables present additional information about impaired loans.   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">(In 000's)</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Three Months Ended June 30, 2016</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Three Months Ended June 30, 2015</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 37%"> </td> <td style="white-space: nowrap; width: 12%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 17%; border-top: black 1pt solid; text-align: center">Interest recognized</td> <td style="white-space: nowrap; width: 15%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 19%; border-top: black 1pt solid; text-align: center">Interest recognized</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial and industrial:</td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial</td> <td style="white-space: nowrap; text-align: right">$   109</td> <td style="white-space: nowrap; text-align: right">$      -</td> <td style="white-space: nowrap; text-align: right">$    201</td> <td style="white-space: nowrap; text-align: right">$       -</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA  loans</td> <td style="white-space: nowrap; text-align: right">39</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">46</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Asset-based</td> <td style="white-space: nowrap; text-align: right">289</td> <td style="white-space: nowrap; text-align: right">3</td> <td style="white-space: nowrap; text-align: right">73</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">       Total commercial and industrial</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">320</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate:</td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial mortgages</td> <td style="white-space: nowrap; text-align: right">1,308</td> <td style="white-space: nowrap; text-align: right">4</td> <td style="white-space: nowrap; text-align: right">934</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA loans</td> <td style="white-space: nowrap; text-align: right">264</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">113</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Religious organizations</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">242</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">487</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total commercial real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,814</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">4</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,534</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total loans</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$   2,251</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$     7</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$  1,854</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$    2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">(In 000's)</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Six Months Ended June 30, 2016</td> <td colspan="2" style="white-space: nowrap; padding: 0.75pt"> Six Months Ended June 30, 2015</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 37%"> </td> <td style="white-space: nowrap; width: 12%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 17%; border-top: black 1pt solid; text-align: center">Interest recognized</td> <td style="white-space: nowrap; width: 15%; border-top: black 1pt solid; text-align: center">Average </td> <td style="white-space: nowrap; width: 19%; border-top: black 1pt solid; text-align: center">Interest recognized</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td> <td style="white-space: nowrap; text-align: center">Recorded</td> <td style="white-space: nowrap; text-align: center">on impaired </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Investment</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">Loans</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial and industrial:</td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td> <td style="white-space: nowrap; text-align: center"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial</td> <td style="white-space: nowrap; text-align: right">$ 109</td> <td style="white-space: nowrap; text-align: right">$     -</td> <td style="white-space: nowrap; text-align: right">$  200</td> <td style="white-space: nowrap; text-align: right">$    -</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA  loans</td> <td style="white-space: nowrap; text-align: right">39</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">46</td> <td style="white-space: nowrap; text-align: right">2</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Asset-based</td> <td style="white-space: nowrap; text-align: right">289</td> <td style="white-space: nowrap; text-align: right">-</td> <td style="white-space: nowrap; text-align: right">40</td> <td style="white-space: nowrap; text-align: right">1</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">       Total commercial and industrial</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">437</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">286</td> <td style="white-space: nowrap; border-top: black 1pt solid; border-bottom: black 1pt solid; text-align: right">3</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate:</td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Commercial mortgages</td> <td style="white-space: nowrap; text-align: right">1,097</td> <td style="white-space: nowrap; text-align: right">13</td> <td style="white-space: nowrap; text-align: right">896</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    SBA loans</td> <td style="white-space: nowrap; text-align: right">103</td> <td style="white-space: nowrap; text-align: right">5</td> <td style="white-space: nowrap; text-align: right">112</td> <td style="white-space: nowrap; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">    Religious organizations</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">348</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">488</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total commercial real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,548</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">18</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">1,496</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: right">-</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td> <td style="white-space: nowrap; text-align: right"> </td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">        Total loans</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">$   1,985</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">          $    18</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">      $  1,782</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: right">               $   3</td></tr> </table>

Activity in other real estate owned for the periods was as follows:     <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td>(in 000's)</td> <td style="text-align: center">Three  Months Ended</td> <td style="text-align: center">Three  Months Ended</td> <td style="text-align: center">Six Months Ended </td> <td style="text-align: center">Six Months Ended</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2015</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="border-bottom: black 1pt solid; text-align: center">June 30, 2015</td></tr> <tr style="vertical-align: top"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Beginning balance</td> <td style="width: 88px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$564 </kbd> </td> <td style="width: 97px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$708 </kbd> </td> <td style="width: 97px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$433 </kbd> </td> <td style="width: 96px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$564 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Additions, transfers from loans</td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">237 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">59 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">477 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">148 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Sales</td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(305)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(43)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(140)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(43)</kbd> </td></tr> <tr style="vertical-align: top"> <td> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">496 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">726 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">770 </kbd> </td> <td><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">669 </kbd> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>        Write-ups (downs)</td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(49)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">33 </kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(13)</kbd> </td> <td style="border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">88 </kbd> </td></tr> <tr style="vertical-align: top"> <td>Ending Balance</td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$447 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td> <td style="border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$757 </kbd> </td></tr> </table>

The following schedule reflects the components of other real estate owned: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="white-space: nowrap; width: 56%">(in 000's)</td> <td style="white-space: nowrap; width: 21%; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="white-space: nowrap; width: 23%; border-bottom: black 1pt solid; text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">Commercial real estate</td> <td style="white-space: nowrap; text-align: center">$  316</td> <td style="white-space: nowrap; text-align: center">$ 297</td></tr> <tr style="vertical-align: bottom"> <td style="white-space: nowrap">Residential real estate</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">  131</td> <td style="white-space: nowrap; border-bottom: black 1pt solid; text-align: center">183</td></tr> <tr style="vertical-align: bottom; background-color: #CCEEFF"> <td style="white-space: nowrap">    Total </td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: center">$  447</td> <td style="white-space: nowrap; border-bottom: black 2.25pt double; text-align: center">$ 480</td></tr> </table> The following table details the components of net expense of other real estate owned: <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center">Three  Months Ended</td> <td style="white-space: nowrap; vertical-align: bottom; text-align: center">Three  Months Ended</td> <td style="vertical-align: top; text-align: center">Six Months Ended</td> <td style="vertical-align: top; text-align: center">Six Months Ended</td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">(in 000's)</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid; text-align: center">June 30, 2015</td> <td style="vertical-align: top; border-bottom: black 1pt solid; text-align: center">June 30, 2016</td> <td style="vertical-align: top; border-bottom: black 1pt solid; text-align: center">June 30, 2015</td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Insurance</td> <td style="white-space: nowrap; vertical-align: bottom; width: 101px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$2</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; width: 101px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$4 </kbd> </td> <td style="vertical-align: top; width: 100px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$6</kbd> </td> <td style="vertical-align: top; width: 100px"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$8 </kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Legal Fees</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">16</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">16</kbd> </td> <td style="vertical-align: top"> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Professional fees</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4</kbd> </td> <td style="vertical-align: top"> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Real estate taxes</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">4</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">3 </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">10</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">6 </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Utilities</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">1 </kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Other</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">10 </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">Transfer-in write-up</td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">49</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(31)</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">49</kbd> </td> <td style="vertical-align: top"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">(88)</kbd> </td></tr> <tr> <td style="white-space: nowrap; vertical-align: bottom">Impairment charges (net)</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td> <td style="vertical-align: top; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">-</kbd> </td> <td style="vertical-align: top; border-bottom: black 1pt solid"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">- </kbd> </td></tr> <tr style="background-color: #CCEEFF"> <td style="white-space: nowrap; vertical-align: bottom">   Total</td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$72</kbd> </td> <td style="white-space: nowrap; vertical-align: bottom; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$(23)</kbd> </td> <td style="vertical-align: top; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$86</kbd> </td> <td style="vertical-align: top; border-bottom: black 2.25pt double"><kbd style="font-family: Courier New, Courier, Monospace; position: absolute">$(63)</kbd> </td></tr> </table>

Assets on the consolidated balance sheets measured at fair value on a recurring basis are summarized below. <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-top: 12pt">(in 000’s)</td> <td style="padding-top: 12pt; text-align: center"> </td> <td colspan="3" style="padding-top: 12pt; text-align: center">Fair Value Measurements at Reporting Date Using:</td></tr> <tr style="vertical-align: top"> <td style="width: 133px; padding-top: 12pt"> </td> <td style="width: 145px; padding-top: 12pt; text-align: right">Assets Measured at Fair Value at June 30, 2016</td> <td style="padding-top: 12pt; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="padding-top: 12pt; text-align: right">Significant Other Observable Inputs (Level 2)</td> <td style="padding-top: 12pt; text-align: right">Significant Unobservable Inputs (Level 3)</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investment securities           available-for-sale:</td> <td style="vertical-align: bottom; padding: 0.75pt">    </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding: 0.75pt">    </td> <td style="vertical-align: bottom; text-align: right"> </td></tr> <tr> <td style="vertical-align: top; padding-left: 4.5pt; text-indent: -4.5pt">U.S. Government agency securities</td> <td style="vertical-align: bottom; text-align: right">$ 2,953   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 2,953   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; text-align: right">3,620   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; text-align: right">3,620   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Money Market Funds</td> <td style="vertical-align: bottom; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding: 0.75pt">           Total</td> <td style="vertical-align: bottom; text-align: right">$ 6,703   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 130   </td> <td style="vertical-align: bottom; text-align: right">$ 6,573   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Loans held for sale</td> <td style="vertical-align: bottom; text-align: right">$ 7,137   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 7,137   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Loans held at fair value</td> <td style="vertical-align: bottom; text-align: right">$ 3,238   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ -   </td> <td style="vertical-align: bottom; text-align: right">$ 3,238   </td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="padding-top: 12pt">(in 000’s)</td> <td style="padding-top: 12pt; text-align: center"> </td> <td colspan="3" style="padding-top: 12pt; text-align: center">Fair Value Measurements at Reporting Date Using:</td></tr> <tr style="vertical-align: top"> <td style="width: 20%; padding-top: 12pt"> </td> <td style="width: 25%; padding-top: 12pt; text-align: right">Assets Measured at Fair Value at December 31, 2015</td> <td style="width: 20%; padding-top: 12pt; text-align: right">Quoted Prices in Active Markets for Identical Assets (Level 1)</td> <td style="width: 17%; padding-top: 12pt; text-align: right">Significant Other Observable Inputs (Level 2)</td> <td style="width: 18%; padding-top: 12pt; text-align: right">Significant Unobservable Inputs (Level 3)</td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Investment securities           available-for-sale:</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right"> </td></tr> <tr> <td style="vertical-align: top; padding-left: 4.5pt; text-indent: -4.5pt">U.S. Government agency securities</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,662   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,662   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Government Sponsored Enterprises residential mortgage-backed securities</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">3,780   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">3,780   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Money Market Funds</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">-   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top; padding: 0.75pt">           Total</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 7,572   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 130   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 7,442   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr> <td style="vertical-align: top; padding: 0.75pt">   Loans held for sale</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,261   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 3,261   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td></tr> <tr style="background-color: #CCEEFF"> <td style="vertical-align: top">Loans held at fair value</td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 2,459   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ -   </td> <td style="vertical-align: bottom; padding-top: 12pt; text-align: right">$ 2,459   </td></tr> </table>

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:    (in 000’s) <table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 15%; padding: 0.75pt">   Assets measured at fair value</td> <td style="width: 13%; padding: 0.75pt"> June 30, 2016 Fair value</td> <td style="width: 13%; padding: 0.75pt"> December 31, 2015 Fair Value</td> <td style="width: 14%; text-align: center">Principal valuation techniques</td> <td style="width: 20%; text-align: center">Significant observable inputs</td> <td style="width: 13%; padding: 0.75pt"> June 30, 2016 Range of inputs</td> <td style="width: 12%; padding: 0.75pt"> December 31, 2015 Range of inputs</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Loans held at fair value:</td> <td style="padding-top: 12pt; text-align: center">$ 3,238</td> <td style="padding-top: 12pt; text-align: center">$ 2,459</td> <td style="padding-top: 12pt; text-align: center">Discounted cash flow</td> <td style="padding-top: 12pt; text-align: center">Constant prepayment rate</td> <td style="padding-top: 12pt; text-align: center">7.33% to   10.189 %</td> <td style="padding-top: 12pt; text-align: center">7.10% to 9.88%</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center">Weighted average discount rate</td> <td style="padding-top: 12pt; text-align: center">7.22% to   10.12%</td> <td style="padding-top: 12pt; text-align: center">7.76% to 9.94%</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center"> </td> <td style="padding-top: 12pt; text-align: center">Weighted average life</td> <td style="padding-top: 12pt; text-align: center">3.20yrs to    9.86 yrs</td> <td style="padding-top: 12pt; text-align: center">3.40 yrs to  8.78 yrs</td></tr> </table> 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: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 69%; padding-top: 12pt">(in 000’s)</td> <td style="width: 31%; padding-top: 12pt">Loans held at fair value</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Balance at December 31, 2015</td> <td style="padding-top: 12pt; text-align: center">$   2,459</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Origination of loans</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Principal repayments</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top"> <td style="padding-top: 12pt">Change in fair value of financial instruments</td> <td style="padding-top: 12pt; text-align: center">-</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding-top: 12pt">Balance at June 30, 2016</td> <td style="padding-top: 12pt; text-align: center">$   3,238</td></tr> </table>

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of June 30, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015.   Carrying Value at June 30, 2016: <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 16%; font: 12pt Times New Roman, Times, Serif">(in 000’s)</td> <td style="width: 21%; padding: 0.75pt">       Total</td> <td style="width: 15%; padding: 0.75pt"> Quoted Prices in Active markets for Identical Assets (Level 1)</td> <td style="width: 16%; padding: 0.75pt"> Significant Other Observable Inputs (Level 2)</td> <td style="width: 16%; padding: 0.75pt"> Significant Unobservable Inputs (Level 3)</td> <td style="width: 16%; padding: 0.75pt"> Total fair value gain (loss) during 3 months ended  </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding: 0.75pt"> Impaired loans  </td> <td style="padding: 0.75pt"> $ 2,184  </td> <td style="padding: 0.75pt"> $   -  </td> <td style="padding: 0.75pt"> $   -  </td> <td style="padding: 0.75pt"> $ 2,184  </td> <td style="padding: 0.75pt"> $   -  </td></tr> <tr style="vertical-align: top"> <td style="font: 12pt Times New Roman, Times, Serif">Other real estate owned (“OREO”)</td> <td style="padding: 0.75pt">   $     447</td> <td style="padding: 0.75pt">   $   -</td> <td style="padding: 0.75pt">   $    -</td> <td style="padding: 0.75pt">   $     447</td> <td style="padding: 0.75pt">       -</td></tr> </table>   Carrying Value at December 31, 2015: <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 16%; font: 12pt Times New Roman, Times, Serif">(in 000’s)</td> <td style="width: 21%; padding: 0.75pt">       Total</td> <td style="width: 15%; padding: 0.75pt"> Quoted Prices in Active markets for Identical Assets (Level 1)</td> <td style="width: 16%; padding: 0.75pt">   Significant Other Observable Inputs (Level 2)</td> <td style="width: 16%; padding: 0.75pt">   Significant Unobservable Inputs (Level 3)</td> <td style="width: 16%; padding: 0.75pt"> Total fair value gain (loss) during 12 months ended  </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="padding: 0.75pt"> Impaired Loans  </td> <td style="padding: 0.75pt"> $ 2,424  </td> <td style="padding: 0.75pt">   $       -  </td> <td style="padding: 0.75pt"> $      -  </td> <td style="padding: 0.75pt"> $  2,424  </td> <td style="padding: 0.75pt">             $   -     </td></tr> <tr style="vertical-align: top"> <td style="font: 12pt Times New Roman, Times, Serif">Other real estate owned (“OREO”)</td> <td style="padding: 0.75pt">   $    480</td> <td style="padding: 0.75pt">      $        -</td> <td style="padding: 0.75pt">   $        -</td> <td style="padding: 0.75pt">   $    480</td> <td style="padding: 0.75pt">   $   39</td></tr> </table>

<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center"> </td> <td colspan="2" style="text-align: center">June 30, 2016</td> <td colspan="2" style="text-align: center">December 31, 2015</td></tr> <tr style="vertical-align: top"> <td style="width: 33%">(in 000’s)</td> <td style="width: 15%; text-align: center">Level in</td> <td style="width: 13%; text-align: center">Carrying</td> <td style="width: 13%; text-align: center">Fair</td> <td style="width: 13%; text-align: center">Carrying</td> <td style="width: 13%; text-align: center">Fair</td></tr> <tr style="vertical-align: top"> <td> </td> <td style="text-align: center">Value Hierarchy</td> <td style="text-align: center">Amount</td> <td style="text-align: center">Value</td> <td style="text-align: center">Amount</td> <td style="text-align: center">Value</td></tr> <tr style="vertical-align: top"> <td>(Dollars in thousands)</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Assets:</td> <td style="text-align: right"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td> <td style="text-align: center"> </td></tr> <tr style="vertical-align: top"> <td>Cash and cash equivalents</td> <td style="text-align: center">Level 1</td> <td style="text-align: right">$ 5,223</td> <td style="text-align: right">$ 5,223</td> <td style="text-align: right">$ 10,782</td> <td style="text-align: right">$  10,782</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Available for sale securities</td> <td style="text-align: center">(1)</td> <td style="text-align: right">6,703</td> <td style="text-align: right">6,703</td> <td style="text-align: right">7,572</td> <td style="text-align: right">7,572</td></tr> <tr style="vertical-align: top"> <td>Loans held for sale</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">7,137</td> <td style="text-align: right">7,137</td> <td style="text-align: right">3,261</td> <td style="text-align: right">3,261</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Loans held at fair value</td> <td style="text-align: center">Level 3</td> <td style="text-align: right">3,238</td> <td style="text-align: right">3,238</td> <td style="text-align: right">2,459</td> <td style="text-align: right">2,459</td></tr> <tr style="vertical-align: top"> <td>Loans, net of allowance for loan losses</td> <td style="text-align: center">(2)</td> <td style="text-align: right">30,359</td> <td style="text-align: right">30,359</td> <td style="text-align: right">33,101</td> <td style="text-align: right">33,082</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Accrued interest receivable</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">203</td> <td style="text-align: right">203</td> <td style="text-align: right">175</td> <td style="text-align: right">175</td></tr> <tr style="vertical-align: top"> <td>Liabilities:</td> <td style="text-align: center"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td> <td style="text-align: right"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Demand deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">28,418</td> <td style="text-align: right">28,418</td> <td style="text-align: right">30,022</td> <td style="text-align: right">30,022</td></tr> <tr style="vertical-align: top"> <td>Savings deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">11,323</td> <td style="text-align: right">11,323</td> <td style="text-align: right">11,681</td> <td style="text-align: right">11,681</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td>Time deposits</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">11,566</td> <td style="text-align: right">11,566</td> <td style="text-align: right">14,259</td> <td style="text-align: right">14,242</td></tr> <tr style="vertical-align: top"> <td>Accrued interest payable</td> <td style="text-align: center">Level 2</td> <td style="text-align: right">13</td> <td style="text-align: right">13</td> <td style="text-align: right">9</td> <td style="text-align: right">9</td></tr> </table>

The requirements and status of items included in the Consent Orders are as follows: <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 55%; border: black 1pt solid; text-align: center">Requirement</td> <td style="width: 45%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">Status</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Board participation improved with attendance at board and committee meetings.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An engagement letter from a qualified consultant was received and approved by the Bank’s regulators.  Upon acceptance, the review commenced in May 2012 and was completed in June 2012.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Formulate and implement written profit and budget plans for each year during which the orders are in effect;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Profit and budget plans have been prepared and submitted to regulators as required annually.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid; text-align: center"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually; </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An annual comprehensive strategic plan was prepared and submitted to regulators as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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 regulatory examination;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Eliminate all assets classified as “Loss” at its current regulatory examination;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">All assets classified as “Loss” have been eliminated.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.</td></tr> </table>   <table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 55%; border: black 1pt solid; text-align: center">Requirement</td> <td style="width: 45%; border-top: black 1pt solid; border-right: black 1pt solid; border-bottom: black 1pt solid; text-align: center">Status</td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s interest rate risk policy and procedures were submitted to regulators as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Revise its liquidity and funds management policy and update and review the policy annually;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Refrain from accepting any brokered deposits;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank did not accept brokered deposits.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Refrain from paying cash dividends without prior approval of the FDIC and the Department;</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">The Bank did not pay cash dividends.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">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 </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.</td></tr> <tr style="vertical-align: top"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid"> </td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid"> </td></tr> <tr style="vertical-align: top; background-color: #CCEEFF"> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid; border-left: black 1pt solid">Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.</td> <td style="border-right: black 1pt solid; border-bottom: black 1pt solid">Quarterly reports were prepared and submitted   as required.</td></tr> </table>

8269

993

-73873 238431

116035

-103096

316352

-117949

826921

986262

826921

0.14

-0.10

0.38

-0.14

826921

986262

826921

0.14

-0.10

0.38

-0.14

50000

135000

-32000

40000

-104000

44000

11000

13000

26000

91000

-21000

27000

-78000

135000

-32000

40000

-104000

44000

11000

13000

26000

91000

-21000

27000

-78000

6597000

7601000

2950000

3517000

130000

3697000

3774000

130000

106000

3000

103000

3000

36000

39000

38000

30000

68000

2950000

2953000

6467000

6573000

4745000

3902000

2703000

2042000

2416000

1486000

53000

51000

3000

50000

32000

19000

53000

470000

53000

243000

227000

1341000

17000

1341000

6000

11000

6086000

4372000

2703000

3383000

2659000

1713000

106000

68000

3000

103000

38000

30000

2904000

3062000

24066000

26414000

9035000

1937000

567000

1076000

221000

12836000

325000

263000

588000

1250000

35000

6274000

1882000

997000

204000

9392000

35000

16884000

3819000

1564000

1543000

221000

24066000

10689000

1098000

613000

1151000

223000

13774000

82000

271000

353000

2175000

7624000

1131000

886000

471000

10112000

20570000

2229000

1499000

1893000

223000

26414000

2709000

2841000

2247000

462000

500000

333000

833000

20000

1727000

129000

1856000

2354000

487000

539000

358000

897000

20000

1795000

129000

1924000

1042000

1202000

30722000

33519000

355000

418000

596000

735000

384000

120000

87000

241000

245000

14000

13000

9000

10000

344000

320000

300000

236000

21000

23000

15000

17000

680000

151000

250000

8000

9000

403000

300000

20000

12000

-5000

-100000

-40000

24000

-64000

-5000

-36000

-64000

66000

62000

50000

48000

2000

41000

22000

3000

48000

14000

8000

23000

6000

2000

4000

2000

4000

1000

3000

19000

-58000

-39000

-44000

-48000

2000

-41000

1000

-47000

3000

5000

71000

2184000

71000

437000

1747000

284000

28538000

173000

99000

2000

10000

2468000

22319000

2709000

1042000

91000

2515000

91000

439000

2076000

327000

31004000

151000

159000

8000

9000

2623000

24338000

2841000

1202000

2907000

3635000

437000

1765000

609000

96000

450000

2285000

703000

197000

109000

39000

289000

18000

1298000

263000

204000

18000

147000

480000

129000

147000

165000

2374000

24000

71000

95000

1000

24000

72000

24000

237000

110000

40000

11000

300000

11000

169000

39000

1543000

271000

471000

169000

39000

56000

125000

539000

35000

164000

91000

125000

260000

164000

2988000

66000

129000

195000

2000

129000

68000

339000

293000

2646000

3003000

437000

1747000

462000

439000

2077000

487000

109000

39000

289000

1280000

263000

204000

333000

129000

2209000

110000

40000

289000

1335000

271000

471000

358000

129000

2564000

27815000

29884000

2468000

22301000

2100000

946000

2612000

24129000

2138000

1005000

1348000

1120000

11538000

325000

1250000

9188000

353000

20000

1727000

24401000

826000

120000

1425000

1187000

12231000

82000

2175000

9641000

358000

20000

1760000

26267000

886000

119000

250000 894000 12000 48000 253000 0 1457000 0 0 0 0 39000 0 39000 0 834000 210000 0 289000 76000 1409000 250000 1728000 222000 48000 581000 76000 2905000 285000 18612000 4041000 1612000 2124000 297000 26971000 285000 922000 16000 58000 254000 0 1535000 0 0 0 0 40000 0 40000 0 900000 222000 0 289000 76000 1487000 285000 1822000 238000 58000 583000 76000 3062000 285000 22392000 2467000 1557000 2476000 299000 29476000 1042000 1202000 0 0 0 921000 0 921000 121000 0 121000 1042000 0 0 0 0 1081000 0 1081000 121000 0 121000 1202000 0 3751000 4043000 3289000 462000 3556000 487000

2184000

2980000

437000

1747000

904000

2076000

109000

39000

289000

1280000

263000

204000

818000

46000

40000

1334000

271000

471000

1367000

1945000

194000

1173000

393000

1552000

109000

39000

46000

806000

163000

204000

353000

40000

810000

271000

471000

817000

570000

243000

574000

46000

524000

243000

474000

100000

46000

524000

2184000

2515000

437000

1747000

439000

2076000

109000

39000

289000

1280000

263000

204000

353000

46000

40000

1334000

271000

471000

71000

91000

71000

91000

67000

4000

91000

1985000

1782000

2251000

1854000

437000

1814000

320000

1534000

437000

1548000

286000

1496000

109000

39000

289000

1097000

103000

348000

200000

46000

40000

896000

112000

488000

109000

39000

289000

1308000

264000

242000

201000

46000

73000

934000

113000

487000

18000

3000

7000

2000

3000

4000

2000

18000

3000

13000

5000

2000

1000

3000

4000

1000

477000

148000

237000

59000

140000

43000

305000

43000

770000 669000 496000 726000

-13000

88000

-49000

33000

1 1 1 1

49 -31 49 -88 72 -23 86 -63

6703000

7572000

2953000

3620000

130000

3662000

3780000

130000

2953000

3620000

130000

6573000

3662000

3780000

130000

7442000

2184000

447000

2424000

480000

Discounted cash flow Discounted cash flow 0.0733 0.10189 0.0710 0.0988 0.0722 0.1012 0.0776 0.0994

P3Y2M12D

P9Y10M10D

P3Y4M24D

P8Y9M11D

2459000

3238000

39000

5223000

10782000

203000

175000

28418000

30022000

11566000

14259000

14242000

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;

0.0506

0.0457

0.0856

0.0850

Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding at June 30, 2016 and 876,921 issued and outstanding at December 31, 2015 Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding at December 31, 2015 Level 1 for money market funds; Level 2 for all other securities. Level 2 for non-impaired loans; Level 3 for impaired loans. EX-101.LAB 9 uboh-20160630_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT Class of Stock [Axis] Common Stock Class B Non-voting Common Stock Series A Preferred Stock Financial Instrument [Axis] US Government Agency Securities Government Sponsored Enterprises residential mortgage-backed securities Investments in money market funds Class of Financing Receivable [Axis] Commercial And Industrial Commercial Real Estate Portfolio Segment Consumer Real Estate Consumer And Other Loans Asset Class [Axis] Commercial Financing Receivables, Period Past Due [Axis] Loans 30-89 Days Past Due Accruing Loans 90 or More Days Past Due SBA Loans Asset Based Loans Commercial Mortgages Construction Religious Organizations Home Equity Loans Home Equity Line of Credit 1-4 family residential mortgages Total Real Estate Consumer Installment Student Loans Other Internal Credit Assessment [Axis] Good/Excellent Satisfactory Pass Special Mention Substandard Doubtful Total Asset Based Performing Scenario [Axis] Nonperforming Home Equity Home Equity Line Of Credit 1-4 Family Residential Mortgages Commercial Real Estate Residential Real Estate Other Real Estate {1} Fair Value, Hierarchy [Axis] Fair Value, Inputs, Level 1 Fair Value, Inputs, Level 2 Fair Value, Inputs, Level 3 Measurement Frequency [Axis] Fair Value, Measurements, Recurring Range [Axis] Minimum Maximum Loans Held at Fair Value Impaired Loans, Carrying Value Other Real Estate Owned Measurement Basis [Axis] Carrying Amount Fair Value Legal Entity [Axis] BankMember Document and Entity Information: Entity Registrant Name Document Type Document Period End Date Amendment Flag Entity Central Index Key Current Fiscal Year End Date Entity Common Stock, Shares Outstanding Entity Current Reporting Status Entity Voluntary Filers Entity Well-known Seasoned Issuer Entity Filer Category Entity Emerging Growth Company Entity Small Business Entity Ex Transition Period Document Fiscal Year Focus Document Fiscal Period Focus Entity Incorporation, Date of Incorporation Entity Public Float Trading Symbol Statement [Table] Statement [Line Items] Assets Cash and due from banks Interest-bearing deposits with banks Federal funds sold Cash and cash equivalents Investment securities available-for-sale, at fair value Loans held for sale Loans held at fair value Loans, net of unearned discounts and deferred fees Less allowance for loan losses Net loans Bank premises and equipment, net Accrued interest receivable Other real estate owned Core Deposit intangible Prepaid expenses and other assets Total assets Liabilities and Shareholders' Equity Liabilities: Demand deposits, noninterest-bearing Demand deposits, interest-bearing Savings deposits Time deposits, under $100,000 Time deposits, $100,000 and over Total deposits Accrued interest payable Accrued expenses and other liabilities Total liabilities Shareholders' equity: Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 124,342 issued and outstanding at June 30, 2015 and 136,842 issued and outstanding at December 31, 2014 Common stock Additional paid-in-capital Accumulated deficit Accumulated other comprehensive loss Total shareholders' equity Total liabilities and shareholders' equity Common stock, par value per share Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Preferred stock, par value per share Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Preferred stock, Dividend Rate Income Statement [Abstract] Interest income: Interest and fees on loans Interest on investment securities Interest on federal funds sold Interest on time deposits with other banks Total interest income Interest expense: Interest on time deposits Interest on demand deposits Interest on savings deposits Total interest expense Net interest income (Credit) provision for loan losses Net interest income after provision for loan losses Noninterest income: Customer service fees ATM fee income Gain on sale of loans Loss on sale of other real estate Net change in fair value of financial instruments Loan syndication fees Other income Total noninterest income Noninterest expense: Salaries, wages and employee benefits Occupancy and equipment Office operations and supplies Marketing and public relations Professional services Data processing Other real estate expense Loan and collection costs Deposit insurance assessments Other operating Total noninterest expense Net loss before income taxes Provision for income taxes Net profit (loss) Net loss per common share-basic and diluted Weighted average number of common shares outstanding Comprehensive loss: Net profit (loss) Unrealized (losses) gains on available for sale securities Total comprehensive profit (loss) Statement of Cash Flows [Abstract] Cash flows from operating activities: Net loss Adjustments to reconcile net loss to net cash provided by operating activities: Amortization of premiums on investments Proceeds from sale of other real estate Depreciation on fixed assets Net change in fair value of financial instruments Gain on sale of loans Loss on sale of other real estate Write-down of other real estate owned Proceeds from the sale of loans held-for-sale Amortization of servicing asset Loans originated for sale (Increase) decrease in accrued interest receivable and other assets EX-101.PRE 10 uboh-20160630_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT EX-101.SCH 11 uboh-20160630.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - CONSOLIDATED BALANCE SHEETS link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - CONSOLIDATED BALANCE SHEETS (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS link:presentationLink link:calculationLink link:definitionLink 00000006 - Disclosure - 1. Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - 2. Net Loss Per Share link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - 3. Changes in Accumulated Other Comprehensive Income link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - 4. New Authoritative Accounting Guidance link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - 5. Investment Securities link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - 6. Loans and Allowance For Loan Losses link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - 7. Other Real Estate Owned link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - 8. Fair Value link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - 9. Regulatory link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - 1. Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - 2. Net Loss Per Share (Tables) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - 3. Changes in Accumulated Other Comprehensive Income (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - 5. Investment Securities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - 6. Loans and Allowance For Loan Losses (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - 7. Other Real Estate Owned (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - 8. Fair Value (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - 9. Regulatory (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - 2. Net Loss Per Share: Schedule of Net Loss per Common Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - 2. Net Loss Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - 3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Income (Details) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - 5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - 5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Details) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - 5. Investment Securities: Schedule of Unrealized Loss on Investments (Details) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Details) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - 6. Loans and Allowance For Loan Losses: Schedule of Interest Income on Impaired Loans (Details) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - 7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - 7. Other Real Estate Owned: Schedule of Components of Other Real Estate Owned (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - 7. Other Real Estate Owned: Schedule of Components of Net Expense (income) of Other Real Estate Owned (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - 8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - 8. Fair Value: Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments (Details) link:presentationLink link:calculationLink link:definitionLink 00000040 - Disclosure - 8. Fair Value (Details) link:presentationLink link:calculationLink link:definitionLink 00000041 - Disclosure - 8. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) link:presentationLink link:calculationLink link:definitionLink 00000042 - Disclosure - 8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) link:presentationLink link:calculationLink link:definitionLink 00000043 - Disclosure - 9. Regulatory: The requirements and status of items included in the Consent Orders (Details) link:presentationLink link:calculationLink link:definitionLink 00000044 - Disclosure - 9. Regulatory (Details) link:presentationLink link:calculationLink link:definitionLink XML 12 R1.htm IDEA: XBRL DOCUMENT

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Nov. 30, 2018
Document and Entity Information:
Entity Registrant Name	UNITED BANCSHARES INC /PA
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Entity Central Index Key	0000944792
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		826,921
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Ex Transition Period	false
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	uboh

XML 13 R2.htm IDEA: XBRL DOCUMENT

CONSOLIDATED BALANCE SHEETS - USD ($)

Jun. 30, 2016

Dec. 31, 2015

Assets

Cash and due from banks

$ 2,009,676

$ 2,107,359

311,012

310,739

Federal funds sold

2,902,000

8,364,000

Cash and cash equivalents

5,222,688

10,782,098

Investment securities available-for-sale, at fair value

6,702,889

7,572,029

7,136,996

3,260,761

Loans, net of unearned discounts and deferred fees

3,237,904

2,458,930

30,713,493

33,519,042

Less allowance for loan losses

(354,563)

(418,013)

Net loans

30,358,930

33,101,029

Bank premises and equipment, net

462,764

492,730

Accrued interest receivable

202,565

175,416

Other real estate owned

446,777

479,627

Core Deposit intangible

251,582

199,781

Prepaid expenses and other assets

478,041

461,837

Total assets

54,501,137

58,984,238

Liabilities:

Demand deposits, noninterest-bearing

16,045,953

16,417,150

Demand deposits, interest-bearing

12,372,375

13,605,888

Time deposits, under $100,000

11,322,524

11,680,878

4,002,748

7,505,729

Time deposits, $100,000 and over

7,563,345

6,752,759

Total deposits

51,306,945

55,962,404

Accrued expenses and other liabilities

12,998

9,157

294,812

332,915

Total liabilities

51,614,756

56,304,476

Shareholders' equity:

Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 124,342 issued and outstanding at June 30, 2015 and 136,842 issued and outstanding at December 31, 2014

993

Additional paid-in-capital

14,752,644

Accumulated deficit

(11,946,971)

(12,062,818)

Accumulated other comprehensive loss

71,261

(19,326)

Total shareholders' equity

2,886,382

2,679,762

Total liabilities and shareholders' equity

54,501,137

58,984,238

Class B Non-voting Common Stock

Shareholders' equity:

Common stock

^[1]

Common Stock

Shareholders' equity:

Common stock

^[2]

$ 8,269

[1]	Class B Non-voting common stock; 250,000 shares authorized; $0.01 par value; 191,667 issued and outstanding at December 31, 2015
[2]	Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding at June 30, 2016 and 876,921 issued and outstanding at December 31, 2015

XML 14 R3.htm IDEA: XBRL DOCUMENT

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Series A Preferred Stock
Preferred stock, par value per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	500,000	500,000
Preferred stock, shares issued	99,442	99,442
Preferred stock, shares outstanding	99,442	99,442
Preferred stock, Dividend Rate	6.00%	6.00%
Common Stock
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares authorized	2,000,000	2,000,000
Common stock, shares issued	826,921	826,921
Common stock, shares outstanding	826,921	826,921
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

XML 15 R4.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Interest and fees on loans	$ 689,160	$ 582,012	$ 1,228,940	$ 1,244,690
Interest on investment securities	40,699	44,843	84,952	92,591
Interest on federal funds sold	7,585	2,968	17,227	4,259
Interest on time deposits with other banks	171	164	290	326
Total interest income	737,615	629,987	1,331,409	1,341,866
Interest expense:
Interest on time deposits	8,852	9,837	17,356	19,792
Interest on demand deposits	5,987	6,162	12,099	12,279
Interest on savings deposits	1,398	1,465	2,816	2,937
Total interest expense	16,237	17,464	32,271	35,008
Net interest income	721,378	612,523	1,299,138	1,306,858
(Credit) provision for loan losses	30,000	(40,000)	(5,000)	(100,000)
Net interest income after provision for loan losses	691,378	652,523	1,304,138	1,406,858
Noninterest income:
Customer service fees	90,412	139,274	176,267	235,552
ATM fee income	29,294	31,745	56,014	63,149
Gain on sale of loans	99,414	0	311,973	473,706
Loss on sale of other real estate	0	(2,289)	(2,495)	(2,289)
Net change in fair value of financial instruments	0	32,143	(73,873)	(238,431)
Loan syndication fees	0	85,000	0	85,000
Other income	486,485	21,633	524,159	26,610
Total noninterest income	705,605	307,506	992,045	643,297
Noninterest expense:
Salaries, wages and employee benefits	372,676	404,366	764,616	803,379
Occupancy and equipment	240,481	249,740	478,637	502,244
Office operations and supplies	83,114	81,922	166,414	150,382
Marketing and public relations	11,325	8,337	27,720	26,189
Professional services	75,973	74,964	149,131	165,415
Data processing	100,547	89,615	209,295	187,087
Other real estate expense	22,800	(23,182)	57,000	(63,214)
Loan and collection costs	23,929	46,490	37,561	103,771
Deposit insurance assessments	30,174	34,200	58,576	66,400
Other operating	119,612	111,526	231,198	211,598
Total noninterest expense	1,080,631	1,077,978	2,180,148	2,153,251
Net loss before income taxes	316,352	(117,949)	116,035	(103,096)
Provision for income taxes	0	0	0	0
Net profit (loss)	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Net loss per common share-basic and diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Weighted average number of common shares outstanding	826,921	826,921	826,921	986,262
Comprehensive loss:
Net profit (loss)	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Unrealized (losses) gains on available for sale securities	26,639	(78,421)	90,586	(21,233)
Total comprehensive profit (loss)	$ 342,991	$ (196,370)	$ 206,621	$ (124,329)

XML 16 R5.htm IDEA: XBRL DOCUMENT

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ 116,035	$ (103,096)
Adjustments to reconcile net loss to net cash provided by operating activities:
(Credit) provision for loan losses	(5,000)	(100,000)
Amortization of premiums on investments	7,111	9,083
Proceeds from sale of other real estate	30,355	40,913
Depreciation on fixed assets	92,791	88,678
Net change in fair value of financial instruments	(73,873)	238,431
Gain on sale of loans	(311,973)	(473,706)
Loss on sale of other real estate	2,495	2,289
Write-down of other real estate owned	0	(88,460)
Proceeds from the sale of loans held-for-sale	3,137,250	4,407,339
Amortization of servicing asset	11,317	0
Loans originated for sale	(7,406,612)	(1,823,367)
(Increase) decrease in accrued interest receivable and other assets	(106,471)	(180,910)
Increase (decrease) in accrued interest payable and other liabilities	(34,262)	(4,937)
Net cash provided by operating activities	(4,540,837)	2,012,257
Cash flows from investing activities:
Proceeds from maturity and principal reductions of available-for-sale investment securities	3,302,847	1,064,615
Purchase of securities available-for-sale	(2,350,234)	(49)
Net decrease (increase) in loans	2,747,098	4,014,805
Purchase of bank premises and equipment	(62,825)	(48,464)
Net cash provided by (used in) investing activities	3,636,886	5,030,907
Cash flows from financing activities:
Net decrease in deposits	(4,655,459)	(1,957,519)
Net cash used in financing activities	(4,655,459)	(1,957,519)
Net increase in cash and cash equivalents	(5,559,410)	5,085,645
Cash and cash equivalents at beginning of period	10,782,098	3,236,582
Cash and cash equivalents at end of period	5,222,688	8,322,227
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	28,430	37,107
Noncash transfer of loans to other real estate	$ 0	$ 148,241

XML 17 R6.htm IDEA: XBRL DOCUMENT

1. Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

1. Significant Accounting Policies

1. Significant Accounting Policies

Management’s Use of Estimates

Commitments

Contingencies

Loans Held for Sale

Loans Held at Fair Value

Loans

Allowance for Loan Losses

• 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 Loan-to-Value ratio

Non-accrual and Past Due Loans.

Income Taxes

Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

XML 18 R7.htm IDEA: XBRL DOCUMENT

2. Net Loss Per Share

6 Months Ended

Jun. 30, 2016

2. Net Loss Per Share

2. Net Loss Per Share

The calculation of net loss per share follows:

	Three Months Ended June 30, 2016	Three Months Ended June 30, 2015	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Basic:
Net loss available to common shareholders	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Average common shares outstanding-basic	826,921	826,921	826,921	986,262
Net loss per share-basic	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Diluted:
Average common shares-diluted	826,921	826,921	826,921	986,262
Net loss per share-diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)

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 loss per share calculations.

XML 19 R8.htm IDEA: XBRL DOCUMENT

3. Changes in Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2016

3. Changes in Accumulated Other Comprehensive Income

3.Changes in Accumulated Other Comprehensive Income

The following table presents the changes in other comprehensive income:

	Three Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 40	$ 13	$ 27
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 40	$ 13	$ 27

	Three Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (104)	$ 26	$ (78)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (104)	$ 26	$ (78)

	Six Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 135	$ 44	$ 91
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 135	$ 44	$ 91

	Six Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (32)	$ 11	$ (21)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (32)	$ 11	$ (21)

XML 20 R9.htm IDEA: XBRL DOCUMENT

4. New Authoritative Accounting Guidance

6 Months Ended

Jun. 30, 2016

4. New Authoritative Accounting Guidance

4. New Authoritative Accounting Guidance

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2018.

XML 21 R10.htm IDEA: XBRL DOCUMENT

5. Investment Securities

6 Months Ended

Jun. 30, 2016

5. Investment Securities

5. Investment Securities

The following is a summary of the Company's investment portfolio:

(In 000’s)	June 30, 2016
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	Value
Available-for-sale:
U.S. Government agency securities	$ 2,950	$ 3	$ -	$ 2,953
Government Sponsored Enterprises residential mortgage-backed securities	3,517	103	-	3,620
Investments in money market funds	130	-	-	130
	$6,597	$ 106	$ -	$ 6,703
	December 31, 2015
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$ 3,697	$ 3	$ (38)	$ 3,662
Government Sponsored Enterprises residential mortgage-backed securities	3,774	36	(30)	3,780
Investments in money market funds	130	-	-	130
	$ 7,601	$ 39	$ (68)	$ 7,572

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows:

(In 000’s)	Amortized Cost		Fair Value
Due in one year		`$-`	`$-`
Due after one year through five years		`-`	`-`
Due after five years through ten years		`2,950`	`2,953`
Government Sponsored Enterprises residential mortgage-backed securities		`3,517`	`3,620`
Total debt securities		`6,467`	`6,573`
Investments in money market funds		`130`	`130`
		`$6,597`	`$6,703`

Expected maturities will differ from contractual maturities because the issuers of certain debt securities have the right to call or prepay their obligations without any penalties.

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016:

	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	9	$ 2,703	$ 3	$ -	$ -	$ 2,703	$ 3

Government Sponsored Enterprises residential
mortgage-backed securities	55	2,042	50	53	1,341	3,383	103
Total temporarily
impaired investment
Securities	64	$ 4,745	$ 53	$ 53	$ 1,341	$ 6,086	$ 106

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2015:

	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	9	$ 2,416	$ (32)	$ 243	$ (6)	$ 2,659	$ (38)

Government Sponsored Enterprises residential
mortgage-backed securities	8	1,486	(19)	227	(11)	1,713	(30)
Total temporarily
impaired investment
securities	17	$ 3,902	$ (51)	$ 470	$ (17)	$ 4,372	$ (68)

XML 22 R11.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses

6 Months Ended

Jun. 30, 2016

6. Loans and Allowance For Loan Losses

6. Loans and Allowance for Loan Losses

The composition of the Bank’s loan portfolio is as follows:

(Dollars in thousands)	June 30, 2016	December 31, 2015
Commercial and industrial	$ 2,904	$ 3,062
Commercial real estate	24,066	26,414
Consumer real estate	2,709	2,841
Consumer loans other	1,042	1,202
Total loans	$ 30,722	$ 33,519

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

• Historical Charge-Off Component – Applies an eight-quarter rolling 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.

The following table presents an analysis of the allowance for loan losses.

(in 000's)		For the Three months ended June 30, 2016
	Commercial and industrial			Commercial real estate		Consumer real estate	Consumer loans Other	Total
Beginning balance	`$120`			`$241`		`$14`	`$9`	`$384`
Provision (credit) for loan losses	`-`			`-`		`-`	`-`	`-`

Charge-offs	`-`			`-`		`-`	`-`	`-`
Recoveries	`-`			`-`		`-`	`-`	`-`
Net (charge-offs) recoveries	`-`			`-`		`-`	`-`	`-`

Ending balance	`$87`			`$245`		`$13`	`$10`	`$355`
(in 000's)		For the Three months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$344`		`$300`		`$21`		`$15`	`$680`
Provision (credit) for loan losses	`24`		`(64)`		`-`		`-`	`(40)`

Charge-offs	`(48)`		`-`		`-`		`(2)`	`(50)`
Recoveries	`-`		`-`		`2`		`4`	`6`
Net (charge-offs) recoveries	`(48)`		`-`		`2`		`2`	`(44)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`
(in 000's)		For the Six months ended June 30, 2016
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$151`		`$250`		`$8`		`$9`	`$418`
Provision (credit) for loan losses	`(5)`		`-`		`-`		`-`	`(5)`

Charge-offs	`-`		`(41)`		`(22)`		`(3)`	`(66)`
Recoveries	`2`		`-`		`2`		`4`	`8`
Net (charge-offs) recoveries	`2`		`(41)`		`-`		`1`	`(58)`

Ending balance	`$87`		`$245`		`$13`		`$10`	`$355`
(in 000's)		For the Six months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$403`		`$300`		`$20`		`$12`	`$735`
Provision (credit) for loan losses	`(36)`		`(64)`		`-`		`-`	`(100)`

Charge-offs	`(48)`		`-`		`-`		`(14)`	`(62)`
Recoveries	`1`		`-`		`3`		`19`	`23`
Net (charge-offs)recoveries	`(47)`		`-`		`3`		`5`	`(39)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`

(in 000's)		June 30, 2016
	Commercial and industrial		Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -		$ 71	$ -	$ -	$ 71
Loans collectively evaluated for impairment	173		99	2	10	284
	$ 173		$ 170	$ 2	$ 10	$ 355

Loans, ending balance:
Loans individually evaluated for impairment	$ 437		$ 1,747	$ -	$ -	$ 2,184
Loans collectively evaluated for impairment	2,468		22,319	2,709	1,042	28,538
Total	$ 2,905		$ 24,066	$ 2,709	$ 1,042	$ 30,722

			December 31, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -	$ 91	$ -	$ -	$ 91
Loans collectively evaluated for impairment	151	159	8	9	327
	$ 151	$ 50	$ 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	31,004
Total	$ 3,062	$ 26,414	$ 2,841	$ 1,202	$ 33,519

Nonperforming and Nonaccrual and Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$ -	$ -	$ 109	$ 109	$ 1,348	$ 1,457
SBA loans	-	-	39	39	-	39
Asset-based	-	-	289	289	1,120	1,409
Total Commercial and industrial	-	-	437	437	2,468	2,905

Commercial real estate:
Commercial mortgages	-	18	1,280	1,298	11,538	12,836
SBA loans	-	-	263	263	325	588
Construction	-	-	-	-	1,250	1,250
Religious organizations	-	-	204	204	9,188	9,392
Total Commercial real estate	-	18	1,747	1,765	22,301	24,066

Consumer real estate:
Home equity loans	-	147	333	480	353	833
Home equity lines of credit	-	-	-	-	20	20
1-4 family residential mortgages	-	-	129	129	1,727	1,856
Total consumer real estate	-	147	462	609	2,100	2,709

Total real estate	-	165	2,209	2,374	24,401	26,775

Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	24	71	-	95	826	921
Other	-	1	-	1	120	121
Total consumer and other	24	72	-	96	946	1,042

Total loans	$ 24	$ 237	$ 2,646	$ 2,907	$ 27,815	$ 30,722

An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	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

• 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, but no later than 90 days past due.

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


(In 000's)				Commercial Loans June 30, 2016
	Good/ Excellent	Satisfactory		Pass	Special Mention	Substandard		Doubtful	Total



Commercial and industrial:
Commercial	$ 250	$ 894		$ 12	$ 48	$ 253		$ -	$ 1,457
SBA loans	-	-		-	-	39		-	39
Asset-based	-	834		210	-	289		76	1,409
	250	1,728		222	48	581		76	2,905
Commercial real estate:
Commercial mortgages	-	9,035		1,937	567	1,076		221	12,836
SBA Loans	-	325		-	-	263		-	588
Construction	-	1,250		-	-	-		-	1,250
Religious organizations	35	6,274		1,882	997	204		-	9,392
	35	16,884		3,819	1,564	1,543		221	24,066

Total commercial loans	$ 285	$ 18,612		$ 4,041	$ 1,612	$ 2,124		$ 297	$ 26,971


			Residential Mortgage and Consumer Loans June 30, 2016
	Performing			Nonperforming			Total

Consumer Real Estate:
Home equity	$ 500			$ 333			$ 833
Home equity line of credit	20			-			20
1-4 family residential mortgages	1,727			129			1,856
	2,247			462			2,709

Consumer Other:
Consumer Installment	-			-			-
Student loans	921			-			921
Other	121			-			121
	1,042			-			1,042

Total consumer loans	$ 3,289			$ 462			$ 3,751

Total loans									$ 30,722

(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	$ 22,392	$ 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

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

Impaired loans as of June 30, 2016 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 109	$ 109	$ -	$ 109	$ -
SBA Loans	39	39	-	39	-
Asset-based	289	46	243	289	-
Total commercial and industrial	437	194	243	437	-

Commercial real estate:
Commercial mortgages	1,280	806	474	1,280	67
SBA Loans	263	163	100	263	4
Religious organizations	204	204	-	204	-
Total commercial real estate	1,747	1,173	574	1,747	71

Total loans	$ 2,184	$ 1,367	$ 817	$ 2,184	$ 71

Impaired loans as of December 31, 2015 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 818	$ 353	$ -	$ 353	$ -
SBA loans	46	-	46	46	-
Asset-based	40	40	-	40	-
Total commercial and industrial	904	393	46	439	-

Commercial real estate:
Commercial mortgages	1,334	810	524	1,334	91
SBA Loans	271	271	-	271	-
Religious organizations	471	471	-	471	-
Total commercial real estate	2,076	1,552	524	2,076	91

Total loans	$2,980	$ 1,945	$ 570	$ 2,515	$ 91

(In 000's)	Three Months Ended June 30, 2016		Three Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 201	$ -
SBA loans	39	-	46	1
Asset-based	289	3	73	1
Total commercial and industrial	437	3	320	2

Commercial real estate:
Commercial mortgages	1,308	4	934	-
SBA loans	264	-	113	-
Religious organizations	242	-	487	-
Total commercial real estate	1,814	4	1,534	-

Total loans	$ 2,251	$ 7	$ 1,854	$ 2

(In 000's)	Six Months Ended June 30, 2016		Six Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 200	$ -
SBA loans	39	-	46	2
Asset-based	289	-	40	1
Total commercial and industrial	437	-	286	3

Commercial real estate:
Commercial mortgages	1,097	13	896	-
SBA loans	103	5	112	-
Religious organizations	348	-	488	-
Total commercial real estate	1,548	18	1,496	-

Total loans	$ 1,985	$ 18	$ 1,782	$ 3

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 troubled debt restructuring (i.e. whether the creditor has been granted a concession or is experiencing financial difficulties). Based on this review and evaluation, none of the modified loans met the criteria of a troubled debt restructuring. Therefore, the Company had no troubled debt restructurings at June 30, 2016 and December 31, 2015.

XML 23 R12.htm IDEA: XBRL DOCUMENT

7. Other Real Estate Owned

6 Months Ended

Jun. 30, 2016

7. Other Real Estate Owned

7. Other Real Estate Owned

(in 000's)	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015

Beginning balance	`$564`	`$708`	`$433`	`$564`
Additions, transfers from loans	`237`	`59`	`477`	`148`
Sales	`(305)`	`(43)`	`(140)`	`(43)`
	`496`	`726`	`770`	`669`
Write-ups (downs)	`(49)`	`33`	`(13)`	`88`
Ending Balance	`$447`	`$757`	`$757`	`$757`

The following schedule reflects the components of other real estate owned:

(in 000's)	June 30, 2016	December 31, 2015
Commercial real estate	$ 316	$ 297
Residential real estate	131	183
Total	$ 447	$ 480

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

	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
(in 000's)	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Insurance	`$2`	`$4`	`$6`	`$8`
Legal Fees	`16`		`16`
Professional fees	`-`		`4`
Real estate taxes	`4`	`3`	`10`	`6`
Utilities	`1`	`1`	`1`	`1`
Other	`-`	`-`	`-`	`10`
Transfer-in write-up	`49`	`(31)`	`49`	`(88)`
Impairment charges (net)	`-`	`-`	`-`	`-`
Total	`$72`	`$(23)`	`$86`	`$(63)`

- Definition

The entire disclosure for real estate owned (as defined). Generally, the largest component of real estate owned by lenders is assets taken in settlement of troubled loans through surrender or foreclosure. Real estate investments, real estate loans that qualify as investments in real estate, and premises that are no longer used in operations may also be included in real estate owned.

+ References + Details

XML 24 R13.htm IDEA: XBRL DOCUMENT

8. Fair Value

6 Months Ended

Jun. 30, 2016

8. Fair Value

8. Fair Value

Fair Value Measurement

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the Fair Value Measurements and Disclosures topic of ASC 820, the fair value of a financial instrument 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 Company's various financial instruments. 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.

Level 1

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

Level 2

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

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

• 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

• 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.

• 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.

A financial instrument’s 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

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

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 Measured at Fair Value at June 30, 2016	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	$ 2,953	$ -	$ 2,953	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,620	-	3,620	-
Money Market Funds	130	130	-	-
Total	$ 6,703	$ 130	$ 6,573	$ -
Loans held for sale	$ 7,137	$ -	$ 7,137	$ -
Loans held at fair value	$ 3,238	$ -	$ -	$ 3,238

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at December 31, 2015	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	$ 3,662	$ -	$ 3,662	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,780	-	3,780	-
Money Market Funds	130	130	-	-
Total	$ 7,572	$ 130	$ 7,442	$ -
Loans held for sale	$ 3,261	$ -	$ 3,261	$ -
Loans held at fair value	$ 2,459	$ -	$ -	$ 2,459

(in 000’s)

Assets measured at fair value	June 30, 2016 Fair value	December 31, 2015 Fair Value	Principal valuation techniques	Significant observable inputs	June 30, 2016 Range of inputs	December 31, 2015 Range of inputs
Loans held at fair value:	$ 3,238	$ 2,459	Discounted cash flow	Constant prepayment rate	7.33% to 10.189 %	7.10% to 9.88%
				Weighted average discount rate	7.22% to 10.12%	7.76% to 9.94%
				Weighted average life	3.20yrs to 9.86 yrs	3.40 yrs to 8.78 yrs

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:

(in 000’s)	Loans held at fair value
Balance at December 31, 2015	$ 2,459
Origination of loans	-
Principal repayments	-
Change in fair value of financial instruments	-
Balance at June 30, 2016	$ 3,238

Fair Value on a Nonrecurring Basis

Carrying Value at June 30, 2016:

(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 3 months ended

Impaired loans

$ 2,184

$ -

$ 2,184

$ -

Other real estate owned (“OREO”)

$ 447

$ -

$ 447

Carrying Value at December 31, 2015:

(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 12 months ended

Impaired Loans

$ 2,424

$ -

$ 2,424

$ -

Other real estate owned (“OREO”)

$ 480

$ -

$ 480

$ 39

The measured impairment for collateral dependent impaired loans is determined by the fair value of the collateral less estimated liquidation costs. Collateral values for loans and OREO are determined by annual or more frequent appraisals if warranted by volatile market conditions, which may be discounted up to 10% based upon management’s review and the estimated cost of liquidation. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made on the appraisal process by the appraisers for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. The valuation allowance for impaired loans is adjusted as necessary based on changes in the value of collateral as well as the cost of liquidation. It is included in the allowance for loan losses in the consolidated statements of condition.

Fair Value of Financial Instruments

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

Cash and cash equivalents: The carrying amounts reported in the statement of condition for cash and cash equivalents approximate those assets’ fair values.

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.

Accrued interest receivable: The carrying amount of accrued interest receivable approximates fair value.

Accrued interest payable: The carrying amounts of accrued interest payable approximate fair value.

The fair value of assets and liabilities are depicted below:

		June 30, 2016		December 31, 2015
(in 000’s)	Level in	Carrying	Fair	Carrying	Fair
	Value Hierarchy	Amount	Value	Amount	Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$ 5,223	$ 5,223	$ 10,782	$ 10,782
Available for sale securities	(1)	6,703	6,703	7,572	7,572
Loans held for sale	Level 2	7,137	7,137	3,261	3,261
Loans held at fair value	Level 3	3,238	3,238	2,459	2,459
Loans, net of allowance for loan losses	(2)	30,359	30,359	33,101	33,082
Accrued interest receivable	Level 2	203	203	175	175
Liabilities:
Demand deposits	Level 2	28,418	28,418	30,022	30,022
Savings deposits	Level 2	11,323	11,323	11,681	11,681
Time deposits	Level 2	11,566	11,566	14,259	14,242
Accrued interest payable	Level 2	13	13	9	9

(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.

XML 25 R14.htm IDEA: XBRL DOCUMENT

9. Regulatory

6 Months Ended

Jun. 30, 2016

9. Regulatory

9. Regulatory

Requirement	Status
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;	Board participation improved with attendance at board and committee meetings.

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;	A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.

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;	An engagement letter from a qualified consultant was received and approved by the Bank’s regulators. Upon acceptance, the review commenced in May 2012 and was completed in June 2012.

Formulate and implement written profit and budget plans for each year during which the orders are in effect;	Profit and budget plans have been prepared and submitted to regulators as required annually.

Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;	An annual comprehensive strategic plan was prepared and submitted to regulators as required.

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;	A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.

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 regulatory examination;	A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.

Eliminate all assets classified as “Loss” at its current regulatory examination;	All assets classified as “Loss” have been eliminated.

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;	The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.

Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;	The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.

Requirement	Status
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;	The Bank’s interest rate risk policy and procedures were submitted to regulators as required.

Revise its liquidity and funds management policy and update and review the policy annually;	The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.

Refrain from accepting any brokered deposits;	The Bank did not accept brokered deposits.

Refrain from paying cash dividends without prior approval of the FDIC and the Department;	The Bank did not pay cash dividends.

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	An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.

Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.	Quarterly reports were prepared and submitted as required.

1. Core Profitability from Bank operations—Core profitability is essential to stop the erosion of capital.

2. External equity investments—an investment banker has been engaged to help the Bank generate external capital investments.

XML 26 R15.htm IDEA: XBRL DOCUMENT

1. Significant Accounting Policies (Policies)	6 Months Ended
1. Significant Accounting Policies (Policies)	Jun. 30, 2016
Policy Text Block [Abstract]
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.
Commitments	Commitments In the general course of business, there are various outstanding commitments to extend credit, such as letters of credit and un-advanced loan commitments, which are not reflected in the accompanying financial statements. Management does not anticipate any material losses as a result of these commitments.
Contingencies	Contingencies The Company is from time to time a party to routine litigation in the normal course of its business. Management does not believe that the resolution of any such litigation will have a material adverse effect on the financial condition or results of operations of the Company. However, the ultimate outcome of any such litigation, as with litigation generally, is inherently uncertain and it is possible that some litigation matters may be resolved adversely to the Company.
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 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.
Loans Held At Fair Value	Loans Held at Fair Value 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.
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.
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 Loan-to-Value 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.
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. 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.
Income Taxes	Income Taxes Under the liability method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities. Deferred tax assets are subject to management’s judgment based upon available evidence that future realization is more likely than not. For financial reporting purposes, a valuation allowance of 100% of the net deferred tax asset has been recognized to offset the net deferred tax assets related to cumulative temporary differences and tax loss carryforwards. If management determines that the Company may be able to realize all or part of the deferred tax asset in the future, an income tax benefit may be required to increase the recorded value of the net deferred tax asset to the expected realizable amount. 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. Interest and penalties associated with unrecognized tax benefits, if any, would be recognized in income tax expense in the consolidated statements of operations.

XML 27 R16.htm IDEA: XBRL DOCUMENT

2. Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Net Loss per Common Share

The calculation of net loss per share follows:

	Three Months Ended June 30, 2016	Three Months Ended June 30, 2015	Six Months Ended June 30, 2016	Six Months Ended June 30, 2015
Basic:
Net loss available to common shareholders	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Average common shares outstanding-basic	826,921	826,921	826,921	986,262
Net loss per share-basic	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Diluted:
Average common shares-diluted	826,921	826,921	826,921	986,262
Net loss per share-diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)

XML 28 R17.htm IDEA: XBRL DOCUMENT

3. Changes in Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Components of Other Comprehensive Income

The following table presents the changes in other comprehensive income:

	Three Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 40	$ 13	$ 27
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 40	$ 13	$ 27

	Three Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (104)	$ 26	$ (78)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (104)	$ 26	$ (78)

	Six Months Ended June 30, 2016
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized loss on securities:
Unrealized holding loss arising during period	$ 135	$ 44	$ 91
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive loss, net	$ 135	$ 44	$ 91

	Six Months Ended June 30, 2015
	Before tax		Net of tax
(in (000’s)	Amount	Taxes	Amount
Unrealized gain on securities:
Unrealized holding gain arising during period	$ (32)	$ 11	$ (21)
Less: reclassification adjustment for gains (losses)
realized in net loss	-	-	-
Other comprehensive income, net	$ (32)	$ 11	$ (21)

XML 29 R18.htm IDEA: XBRL DOCUMENT

5. Investment Securities (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Available-for-sale Securities Reconciliation

The following is a summary of the Company's investment portfolio:

(In 000’s)	June 30, 2016
		Gross	Gross
	Amortized	Unrealized	unrealized	Fair
	Cost	Gains	losses	Value
Available-for-sale:
U.S. Government agency securities	$ 2,950	$ 3	$ -	$ 2,953
Government Sponsored Enterprises residential mortgage-backed securities	3,517	103	-	3,620
Investments in money market funds	130	-	-	130
	$6,597	$ 106	$ -	$ 6,703
	December 31, 2015
		Gross	Gross
	Amortized	Unrealized	Unrealized	Fair
	Cost	Gains	Losses	Value
Available-for-sale:
U.S. Government agency securities	$ 3,697	$ 3	$ (38)	$ 3,662
Government Sponsored Enterprises residential mortgage-backed securities	3,774	36	(30)	3,780
Investments in money market funds	130	-	-	130
	$ 7,601	$ 39	$ (68)	$ 7,572

Schedule of Investments Classified by Contractual Maturity Date

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2016, are as follows:

(In 000’s)	Amortized Cost		Fair Value
Due in one year		`$-`	`$-`
Due after one year through five years		`-`	`-`
Due after five years through ten years		`2,950`	`2,953`
Government Sponsored Enterprises residential mortgage-backed securities		`3,517`	`3,620`
Total debt securities		`6,467`	`6,573`
Investments in money market funds		`130`	`130`
		`$6,597`	`$6,703`

Schedule of Unrealized Loss on Investments

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2016:

	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	9	$ 2,703	$ 3	$ -	$ -	$ 2,703	$ 3

Government Sponsored Enterprises residential
mortgage-backed securities	55	2,042	50	53	1,341	3,383	103
Total temporarily
impaired investment
Securities	64	$ 4,745	$ 53	$ 53	$ 1,341	$ 6,086	$ 106

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2015:

	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	9	$ 2,416	$ (32)	$ 243	$ (6)	$ 2,659	$ (38)

Government Sponsored Enterprises residential
mortgage-backed securities	8	1,486	(19)	227	(11)	1,713	(30)
Total temporarily
impaired investment
securities	17	$ 3,902	$ (51)	$ 470	$ (17)	$ 4,372	$ (68)

XML 30 R19.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of the Composition of Net Loans

(Dollars in thousands)	June 30, 2016	December 31, 2015
Commercial and industrial	$ 2,904	$ 3,062
Commercial real estate	24,066	26,414
Consumer real estate	2,709	2,841
Consumer loans other	1,042	1,202
Total loans	$ 30,722	$ 33,519

Schedule of Age Analysis of Allowance for Loan Losses

The following table presents an analysis of the allowance for loan losses.

(in 000's)		For the Three months ended June 30, 2016
	Commercial and industrial			Commercial real estate		Consumer real estate	Consumer loans Other	Total
Beginning balance	`$120`			`$241`		`$14`	`$9`	`$384`
Provision (credit) for loan losses	`-`			`-`		`-`	`-`	`-`

Charge-offs	`-`			`-`		`-`	`-`	`-`
Recoveries	`-`			`-`		`-`	`-`	`-`
Net (charge-offs) recoveries	`-`			`-`		`-`	`-`	`-`

Ending balance	`$87`			`$245`		`$13`	`$10`	`$355`
(in 000's)		For the Three months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$344`		`$300`		`$21`		`$15`	`$680`
Provision (credit) for loan losses	`24`		`(64)`		`-`		`-`	`(40)`

Charge-offs	`(48)`		`-`		`-`		`(2)`	`(50)`
Recoveries	`-`		`-`		`2`		`4`	`6`
Net (charge-offs) recoveries	`(48)`		`-`		`2`		`2`	`(44)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`
(in 000's)		For the Six months ended June 30, 2016
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$151`		`$250`		`$8`		`$9`	`$418`
Provision (credit) for loan losses	`(5)`		`-`		`-`		`-`	`(5)`

Charge-offs	`-`		`(41)`		`(22)`		`(3)`	`(66)`
Recoveries	`2`		`-`		`2`		`4`	`8`
Net (charge-offs) recoveries	`2`		`(41)`		`-`		`1`	`(58)`

Ending balance	`$87`		`$245`		`$13`		`$10`	`$355`
(in 000's)		For the Six months ended June 30, 2015
	Commercial and industrial		Commercial real estate		Consumer real estate		Consumer loans Other	Total
Beginning balance	`$403`		`$300`		`$20`		`$12`	`$735`
Provision (credit) for loan losses	`(36)`		`(64)`		`-`		`-`	`(100)`

Charge-offs	`(48)`		`-`		`-`		`(14)`	`(62)`
Recoveries	`1`		`-`		`3`		`19`	`23`
Net (charge-offs)recoveries	`(47)`		`-`		`3`		`5`	`(39)`

Ending balance	`$320`		`$236`		`$23`		`$17`	`$596`

(in 000's)		June 30, 2016
	Commercial and industrial		Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -		$ 71	$ -	$ -	$ 71
Loans collectively evaluated for impairment	173		99	2	10	284
	$ 173		$ 170	$ 2	$ 10	$ 355

Loans, ending balance:
Loans individually evaluated for impairment	$ 437		$ 1,747	$ -	$ -	$ 2,184
Loans collectively evaluated for impairment	2,468		22,319	2,709	1,042	28,538
Total	$ 2,905		$ 24,066	$ 2,709	$ 1,042	$ 30,722

			December 31, 2015
	Commercial and industrial	Commercial real estate	Consumer real estate	Consumer loans Other	Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$ -	$ 91	$ -	$ -	$ 91
Loans collectively evaluated for impairment	151	159	8	9	327
	$ 151	$ 50	$ 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	31,004
Total	$ 3,062	$ 26,414	$ 2,841	$ 1,202	$ 33,519

Schedule of Age Analysis of Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of June 30, 2016 is as follows:

		Accruing
	Loans	Loans 90 or
(In 000's)	30-89 Days	More Days		Total Past	Current
	Past Due	Past Due	Nonaccrual	Due Loans	Loans	Total Loans
Commercial and industrial:
Commercial	$ -	$ -	$ 109	$ 109	$ 1,348	$ 1,457
SBA loans	-	-	39	39	-	39
Asset-based	-	-	289	289	1,120	1,409
Total Commercial and industrial	-	-	437	437	2,468	2,905

Commercial real estate:
Commercial mortgages	-	18	1,280	1,298	11,538	12,836
SBA loans	-	-	263	263	325	588
Construction	-	-	-	-	1,250	1,250
Religious organizations	-	-	204	204	9,188	9,392
Total Commercial real estate	-	18	1,747	1,765	22,301	24,066

Consumer real estate:
Home equity loans	-	147	333	480	353	833
Home equity lines of credit	-	-	-	-	20	20
1-4 family residential mortgages	-	-	129	129	1,727	1,856
Total consumer real estate	-	147	462	609	2,100	2,709

Total real estate	-	165	2,209	2,374	24,401	26,775

Consumer and other:
Consumer installment	-	-	-	-	-	-
Student loans	24	71	-	95	826	921
Other	-	1	-	1	120	121
Total consumer and other	24	72	-	96	946	1,042

Total loans	$ 24	$ 237	$ 2,646	$ 2,907	$ 27,815	$ 30,722

An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 is as follows:

		Accruing
	Loans	Loans 90 or
	30-89 Days	More Days		Total Past	Current
(In 000's)	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

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 June 30, 2016
	Good/ Excellent	Satisfactory		Pass	Special Mention	Substandard		Doubtful	Total



Commercial and industrial:
Commercial	$ 250	$ 894		$ 12	$ 48	$ 253		$ -	$ 1,457
SBA loans	-	-		-	-	39		-	39
Asset-based	-	834		210	-	289		76	1,409
	250	1,728		222	48	581		76	2,905
Commercial real estate:
Commercial mortgages	-	9,035		1,937	567	1,076		221	12,836
SBA Loans	-	325		-	-	263		-	588
Construction	-	1,250		-	-	-		-	1,250
Religious organizations	35	6,274		1,882	997	204		-	9,392
	35	16,884		3,819	1,564	1,543		221	24,066

Total commercial loans	$ 285	$ 18,612		$ 4,041	$ 1,612	$ 2,124		$ 297	$ 26,971


			Residential Mortgage and Consumer Loans June 30, 2016
	Performing			Nonperforming			Total

Consumer Real Estate:
Home equity	$ 500			$ 333			$ 833
Home equity line of credit	20			-			20
1-4 family residential mortgages	1,727			129			1,856
	2,247			462			2,709

Consumer Other:
Consumer Installment	-			-			-
Student loans	921			-			921
Other	121			-			121
	1,042			-			1,042

Total consumer loans	$ 3,289			$ 462			$ 3,751

Total loans									$ 30,722

(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	$ 22,392	$ 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

Schedule of Impaired Loans

Impaired loans as of June 30, 2016 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 109	$ 109	$ -	$ 109	$ -
SBA Loans	39	39	-	39	-
Asset-based	289	46	243	289	-
Total commercial and industrial	437	194	243	437	-

Commercial real estate:
Commercial mortgages	1,280	806	474	1,280	67
SBA Loans	263	163	100	263	4
Religious organizations	204	204	-	204	-
Total commercial real estate	1,747	1,173	574	1,747	71

Total loans	$ 2,184	$ 1,367	$ 817	$ 2,184	$ 71

Impaired loans as of December 31, 2015 are set forth in the following table.

(In 000's)	Unpaid Contractual	Recorded Investment	Recorded Investment	Total
	Principal	With No	With	Recorded	Related
	Balance	Allowance	Allowance	Investment	Allowance

Commercial and industrial:
Commercial	$ 818	$ 353	$ -	$ 353	$ -
SBA loans	46	-	46	46	-
Asset-based	40	40	-	40	-
Total commercial and industrial	904	393	46	439	-

Commercial real estate:
Commercial mortgages	1,334	810	524	1,334	91
SBA Loans	271	271	-	271	-
Religious organizations	471	471	-	471	-
Total commercial real estate	2,076	1,552	524	2,076	91

Total loans	$2,980	$ 1,945	$ 570	$ 2,515	$ 91

Schedule of Interest Income on Impaired Loans

(In 000's)	Three Months Ended June 30, 2016		Three Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 201	$ -
SBA loans	39	-	46	1
Asset-based	289	3	73	1
Total commercial and industrial	437	3	320	2

Commercial real estate:
Commercial mortgages	1,308	4	934	-
SBA loans	264	-	113	-
Religious organizations	242	-	487	-
Total commercial real estate	1,814	4	1,534	-

Total loans	$ 2,251	$ 7	$ 1,854	$ 2

(In 000's)	Six Months Ended June 30, 2016		Six Months Ended June 30, 2015
	Average	Interest recognized	Average	Interest recognized
	Recorded	on impaired	Recorded	on impaired
	Investment	Loans	Investment	Loans

Commercial and industrial:
Commercial	$ 109	$ -	$ 200	$ -
SBA loans	39	-	46	2
Asset-based	289	-	40	1
Total commercial and industrial	437	-	286	3

Commercial real estate:
Commercial mortgages	1,097	13	896	-
SBA loans	103	5	112	-
Religious organizations	348	-	488	-
Total commercial real estate	1,548	18	1,496	-

Total loans	$ 1,985	$ 18	$ 1,782	$ 3

XML 31 R20.htm IDEA: XBRL DOCUMENT

7. Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Change in Other Real Estate Owned

Activity in other real estate owned for the periods was as follows:

(in 000's)	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015

Beginning balance	`$564`	`$708`	`$433`	`$564`
Additions, transfers from loans	`237`	`59`	`477`	`148`
Sales	`(305)`	`(43)`	`(140)`	`(43)`
	`496`	`726`	`770`	`669`
Write-ups (downs)	`(49)`	`33`	`(13)`	`88`
Ending Balance	`$447`	`$757`	`$757`	`$757`

Schedule of Components of Other Real Estate Owned

The following schedule reflects the components of other real estate owned:

(in 000's)	June 30, 2016	December 31, 2015
Commercial real estate	$ 316	$ 297
Residential real estate	131	183
Total	$ 447	$ 480

Schedule of Components of Net Expense (income) of Other Real Estate Owned

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

	Three Months Ended	Three Months Ended	Six Months Ended	Six Months Ended
(in 000's)	June 30, 2016	June 30, 2015	June 30, 2016	June 30, 2015
Insurance	`$2`	`$4`	`$6`	`$8`
Legal Fees	`16`		`16`
Professional fees	`-`		`4`
Real estate taxes	`4`	`3`	`10`	`6`
Utilities	`1`	`1`	`1`	`1`
Other	`-`	`-`	`-`	`10`
Transfer-in write-up	`49`	`(31)`	`49`	`(88)`
Impairment charges (net)	`-`	`-`	`-`	`-`
Total	`$72`	`$(23)`	`$86`	`$(63)`

XML 32 R21.htm IDEA: XBRL DOCUMENT

8. Fair Value (Tables)

6 Months Ended

Jun. 30, 2016

Schedule of Fair Value of Assets on a Recurring Basis

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 Measured at Fair Value at June 30, 2016	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	$ 2,953	$ -	$ 2,953	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,620	-	3,620	-
Money Market Funds	130	130	-	-
Total	$ 6,703	$ 130	$ 6,573	$ -
Loans held for sale	$ 7,137	$ -	$ 7,137	$ -
Loans held at fair value	$ 3,238	$ -	$ -	$ 3,238

(in 000’s)		Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at December 31, 2015	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	$ 3,662	$ -	$ 3,662	$ -
Government Sponsored Enterprises residential mortgage-backed securities	3,780	-	3,780	-
Money Market Funds	130	130	-	-
Total	$ 7,572	$ 130	$ 7,442	$ -
Loans held for sale	$ 3,261	$ -	$ 3,261	$ -
Loans held at fair value	$ 2,459	$ -	$ -	$ 2,459

Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments

These inputs include estimated cashflows, prepayment speeds, average projected default rate and discount rates as follows:

(in 000’s)

Assets measured at fair value	June 30, 2016 Fair value	December 31, 2015 Fair Value	Principal valuation techniques	Significant observable inputs	June 30, 2016 Range of inputs	December 31, 2015 Range of inputs
Loans held at fair value:	$ 3,238	$ 2,459	Discounted cash flow	Constant prepayment rate	7.33% to 10.189 %	7.10% to 9.88%
				Weighted average discount rate	7.22% to 10.12%	7.76% to 9.94%
				Weighted average life	3.20yrs to 9.86 yrs	3.40 yrs to 8.78 yrs

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:

(in 000’s)	Loans held at fair value
Balance at December 31, 2015	$ 2,459
Origination of loans	-
Principal repayments	-
Change in fair value of financial instruments	-
Balance at June 30, 2016	$ 3,238

Schedule of Fair Value of Assets Measured on a Nonrecurring Basis

The following table presents the assets carried on the consolidated balance sheet by level within the hierarchy as of June 30, 2016 and December 31, 2015, for which a nonrecurring change in fair value has been recorded during the six months ended June 30, 2016 and year ended December 31, 2015.

Carrying Value at June 30, 2016:

(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 3 months ended

Impaired loans

$ 2,184

$ -

$ 2,184

$ -

Other real estate owned (“OREO”)

$ 447

$ -

$ 447

Carrying Value at December 31, 2015:

(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 12 months ended

Impaired Loans

$ 2,424

$ -

$ 2,424

$ -

Other real estate owned (“OREO”)

$ 480

$ -

$ 480

$ 39

Schedule of Fair Value of Financial Instruments at Year-End

		June 30, 2016		December 31, 2015
(in 000’s)	Level in	Carrying	Fair	Carrying	Fair
	Value Hierarchy	Amount	Value	Amount	Value
(Dollars in thousands)
Assets:
Cash and cash equivalents	Level 1	$ 5,223	$ 5,223	$ 10,782	$ 10,782
Available for sale securities	(1)	6,703	6,703	7,572	7,572
Loans held for sale	Level 2	7,137	7,137	3,261	3,261
Loans held at fair value	Level 3	3,238	3,238	2,459	2,459
Loans, net of allowance for loan losses	(2)	30,359	30,359	33,101	33,082
Accrued interest receivable	Level 2	203	203	175	175
Liabilities:
Demand deposits	Level 2	28,418	28,418	30,022	30,022
Savings deposits	Level 2	11,323	11,323	11,681	11,681
Time deposits	Level 2	11,566	11,566	14,259	14,242
Accrued interest payable	Level 2	13	13	9	9

XML 33 R22.htm IDEA: XBRL DOCUMENT

9. Regulatory (Tables)

6 Months Ended

Jun. 30, 2016

The requirements and status of items included in the Consent Orders

The requirements and status of items included in the Consent Orders are as follows:

Requirement	Status
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;	Board participation improved with attendance at board and committee meetings.

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;	A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.

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;	An engagement letter from a qualified consultant was received and approved by the Bank’s regulators. Upon acceptance, the review commenced in May 2012 and was completed in June 2012.

Formulate and implement written profit and budget plans for each year during which the orders are in effect;	Profit and budget plans have been prepared and submitted to regulators as required annually.

Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;	An annual comprehensive strategic plan was prepared and submitted to regulators as required.

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;	A capital plan with quarterly benchmarks was prepared and submitted to regulators as required annually.

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 regulatory examination;	A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.

Eliminate all assets classified as “Loss” at its current regulatory examination;	All assets classified as “Loss” have been eliminated.

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;	The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted as required.

Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;	The ALLL policy and methodology for determining the allowance for loan losses were submitted as required.

Requirement	Status
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;	The Bank’s interest rate risk policy and procedures were submitted to regulators as required.

Revise its liquidity and funds management policy and update and review the policy annually;	The Bank’s liquidity policy and contingency plan were submitted to regulators for review as required.

Refrain from accepting any brokered deposits;	The Bank did not accept brokered deposits.

Refrain from paying cash dividends without prior approval of the FDIC and the Department;	The Bank did not pay cash dividends.

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	An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders.

Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.	Quarterly reports were prepared and submitted as required.

XML 34 R23.htm IDEA: XBRL DOCUMENT

2. Net Loss Per Share: Schedule of Net Loss per Common Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Text Block [Abstract]
Net loss available to common shareholders	$ 316,352	$ (117,949)	$ 116,035	$ (103,096)
Average common shares outstanding-basic	826,921	826,921	826,921	986,262
Net loss per share-basic	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)
Average common shares-diluted	826,921	826,921	826,921	986,262
Net loss per share-diluted	$ 0.38	$ (0.14)	$ 0.14	$ (0.10)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 3: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=109256448&loc=d3e4984-109258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1252-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(23))
-URI http://asc.fasb.org/extlink&oid=114873765&loc=SL114874048-224260

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109260490&loc=d3e1337-109256

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(21))
-URI http://asc.fasb.org/extlink&oid=115205541&loc=SL114868664-224227

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=109260490&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

+ Details

XML 35 R24.htm IDEA: XBRL DOCUMENT

2. Net Loss Per Share (Details)	6 Months Ended
2. Net Loss Per Share (Details)	Jun. 30, 2015 shares
Common Stock
Shares cancelled	50,000

XML 36 R25.htm IDEA: XBRL DOCUMENT

3. Changes in Accumulated Other Comprehensive Income: Schedule of Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Text Block [Abstract]
Unrealized holding gain arising during period, before tax amount	$ 40	$ (104)	$ 135	$ (32)
Unrealized holding gain arising during period, taxes	13	26	44	11
Unrealized holding gain arising during period, net of tax amount	27	(78)	91	(21)
Less: reclassification adjustment for gains(losses) realized in net loss, before tax amount	0	0	0	0
Less: reclassification adjustment for gains(losses) realized in net loss, taxes	0	0	0	0
Less: reclassification adjustment for gains(losses) realized in net loss, net of tax amount	0	0	0	0
Other comprehensive loss, net, before tax amount	40	(104)	135	(32)
Other comprehensive loss, net, taxes	13	26	44	11
Other comprehensive loss, net, net after tax amount	$ 27	$ (78)	$ 91	$ (21)

XML 37 R26.htm IDEA: XBRL DOCUMENT

5. Investment Securities: Schedule of Available-for-sale Securities Reconciliation (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Available-for-sale Securities, Amortized Cost Basis	$ 6,597,000	$ 7,601,000
Available-for-sale Securities, Gross Unrealized Gain	106,000	39,000
Available-for-sale Securities, Gross Unrealized Loss	0	(68,000)
Investment securities available-for-sale, at fair value	6,702,889	7,572,029
US Government Agency Securities
Available-for-sale Securities, Amortized Cost Basis	2,950,000	3,697,000
Available-for-sale Securities, Gross Unrealized Gain	3,000	3,000
Available-for-sale Securities, Gross Unrealized Loss	0	(38,000)
Investment securities available-for-sale, at fair value	2,953,000	3,662,000
Government Sponsored Enterprises residential mortgage-backed securities
Available-for-sale Securities, Amortized Cost Basis	3,517,000	3,774,000
Available-for-sale Securities, Gross Unrealized Gain	103,000	36,000
Available-for-sale Securities, Gross Unrealized Loss	0	(30,000)
Investment securities available-for-sale, at fair value	3,620,000	3,780,000
Investments in money market funds
Available-for-sale Securities, Amortized Cost Basis	130,000	130,000
Available-for-sale Securities, Gross Unrealized Gain	0	0
Available-for-sale Securities, Gross Unrealized Loss	0	0
Investment securities available-for-sale, at fair value	$ 130,000	$ 130,000

XML 38 R27.htm IDEA: XBRL DOCUMENT

5. Investment Securities: Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost, due in one year	$ 0
Fair Value, due in one year	0
Amortized Cost, due after one year through five years	0
Fair Value, due after one year through five years	0
Amortized Cost, due after five years through ten years	2,950,000
Fair Value, due after five years through ten years	2,953,000
Available-for-sale Securities, Amortized Cost Basis	6,597,000	$ 7,601,000
Investment securities available-for-sale, at fair value	6,702,889	7,572,029
Total debt securities, Amortized Cost Basis	6,467,000
Total debt securities, Fair Value	6,573,000
Investments in money market funds
Available-for-sale Securities, Amortized Cost Basis	130,000	130,000
Investment securities available-for-sale, at fair value	130,000	130,000
Government Sponsored Enterprises residential mortgage-backed securities
Available-for-sale Securities, Amortized Cost Basis	3,517,000	3,774,000
Investment securities available-for-sale, at fair value	$ 3,620,000	$ 3,780,000

XML 39 R28.htm IDEA: XBRL DOCUMENT

5. Investment Securities: Schedule of Unrealized Loss on Investments (Details) $ in Thousands	Jun. 30, 2016 USD ($)	Dec. 31, 2015 USD ($)
Number of Securities	64	17
Less than Twelve Months, Fair Value	$ 4,745	$ 3,902
Less than 12 Months, Unrealized Losses	(53)	(51)
Twelve Months or Longer, Fair Value	53	470
12 Months or Longer, Unrealized Losses	(1,341)	(17)
Total Fair Value	6,086	4,372
Total Unrealized Losses	$ (106)	$ (68)
US Government Agency Securities
Number of Securities	9	9
Less than Twelve Months, Fair Value	$ 2,703	$ 2,416
Less than 12 Months, Unrealized Losses	(3)	(32)
Twelve Months or Longer, Fair Value	0	243
12 Months or Longer, Unrealized Losses	0	(6)
Total Fair Value	2,703	2,659
Total Unrealized Losses	$ (3)	$ (38)
Government Sponsored Enterprises residential mortgage-backed securities
Number of Securities	55	8
Less than Twelve Months, Fair Value	$ 2,042	$ 1,486
Less than 12 Months, Unrealized Losses	(50)	(19)
Twelve Months or Longer, Fair Value	53	227
12 Months or Longer, Unrealized Losses	(1,341)	(11)
Total Fair Value	3,383	1,713
Total Unrealized Losses	$ (103)	$ (30)

XML 40 R29.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of the Composition of Net Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Text Block [Abstract]
Commercial and industrial	$ 2,904	$ 3,062
Commercial real estate	24,066	26,414
Consumer real estate	2,709	2,841
Consumer loans other	1,042	1,202
Loans, net	$ 30,722	$ 33,519

XML 41 R30.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Allowance for Loan Losses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Beginning balance	$ 384,000	$ 680,000	$ 418,000	$ 735,000
Provision (credit) for loan losses	0	(40,000)	(5,000)	(100,000)
Charge-offs	0	(50,000)	(66,000)	(62,000)
Recoveries	0	6,000	8,000	23,000
Net (charge-offs) recoveries	0	(44,000)	(58,000)	(39,000)
Ending balance	355,000	596,000	355,000	596,000
Period-end amount allocated to: Loans individually evaluated for impairment	71,000		71,000		$ 2,184,000
Period-end amount allocated to: Loans collectively evaluated for impairment	284,000		284,000		28,538,000
Period-end amount allocated to: Total	(354,563)		(354,563)		(418,013)
Loans, ending balance: Loans individually evaluated for impairment	91,000		91,000		2,515,000
Loans, ending balance: Loans collectively evaluated for impairment	327,000		327,000		31,004,000
Loans, ending balance: Total	30,713,493		30,713,493		33,519,042
Commercial And Industrial
Beginning balance	120,000	344,000	151,000	403,000
Provision (credit) for loan losses	0	24,000	(5,000)	(36,000)
Charge-offs	0	(48,000)	0	(48,000)
Recoveries	0	0	2,000	1,000
Net (charge-offs) recoveries	0	(48,000)	2,000	(47,000)
Ending balance	87,000	320,000	87,000	320,000
Period-end amount allocated to: Loans individually evaluated for impairment	0		0		437,000
Period-end amount allocated to: Loans collectively evaluated for impairment	173,000		173,000		2,468,000
Period-end amount allocated to: Total	(173,000)		(173,000)		(2,905,000)
Loans, ending balance: Loans individually evaluated for impairment	0		0		439,000
Loans, ending balance: Loans collectively evaluated for impairment	151,000		151,000		2,623,000
Loans, ending balance: Total	2,905,000		2,905,000		3,062,000
Commercial Real Estate Portfolio Segment
Beginning balance	241,000	300,000	250,000	300,000
Provision (credit) for loan losses	0	(64,000)	0	(64,000)
Charge-offs	0	0	(41,000)	0
Recoveries	0	0	0	0
Net (charge-offs) recoveries	0	0	(41,000)	0
Ending balance	245,000	236,000	245,000	236,000
Period-end amount allocated to: Loans individually evaluated for impairment	71,000		71,000		1,747,000
Period-end amount allocated to: Loans collectively evaluated for impairment	99,000		99,000		22,319,000
Period-end amount allocated to: Total	(170,000)		(170,000)		(24,066,000)
Loans, ending balance: Loans individually evaluated for impairment	91,000		91,000		2,076,000
Loans, ending balance: Loans collectively evaluated for impairment	159,000		159,000		24,338,000
Loans, ending balance: Total	24,066,000		24,066,000		26,414,000
Consumer Real Estate
Beginning balance	14,000	21,000	8,000	20,000
Provision (credit) for loan losses	0	0	0	0
Charge-offs	0	0	(22,000)	0
Recoveries	0	2,000	2,000	3,000
Net (charge-offs) recoveries	0	2,000	0	3,000
Ending balance	13,000	23,000	13,000	23,000
Period-end amount allocated to: Loans individually evaluated for impairment	0		0		0
Period-end amount allocated to: Loans collectively evaluated for impairment	2,000		2,000		2,709,000
Period-end amount allocated to: Total	(2,000)		(2,000)		(2,709,000)
Loans, ending balance: Loans individually evaluated for impairment	0		0		0
Loans, ending balance: Loans collectively evaluated for impairment	8,000		8,000		2,841,000
Loans, ending balance: Total	2,709,000		2,709,000		2,841,000
Consumer And Other Loans
Beginning balance	9,000	15,000	9,000	12,000
Provision (credit) for loan losses	0	0	0	0
Charge-offs	0	(2,000)	(3,000)	(14,000)
Recoveries	0	4,000	4,000	19,000
Net (charge-offs) recoveries	0	2,000	1,000	5,000
Ending balance	10,000	$ 17,000	10,000	$ 17,000
Period-end amount allocated to: Loans individually evaluated for impairment	0		0		0
Period-end amount allocated to: Loans collectively evaluated for impairment	10,000		10,000		1,042,000
Period-end amount allocated to: Total	(10,000)		(10,000)		(1,042,000)
Loans, ending balance: Loans individually evaluated for impairment	0		0		0
Loans, ending balance: Loans collectively evaluated for impairment	9,000		9,000		1,202,000
Loans, ending balance: Total	$ 1,042,000		$ 1,042,000		$ 1,202,000

XML 42 R31.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of Age Analysis of Past Due Loans (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Past Due Loans	$ 2,907,000	$ 3,635,000
Nonaccrual	2,646,000	3,003,000
Current Loans	27,815,000	29,884,000
Total Loans	30,713,493	33,519,042
Loans 30-89 Days Past Due
Past Due Loans	24,000	339,000
Accruing Loans 90 or More Days Past Due
Past Due Loans	237,000	293,000
Commercial And Industrial
Past Due Loans	437,000	450,000
Nonaccrual	437,000	439,000
Current Loans	2,468,000	2,612,000
Total Loans	2,905,000	3,062,000
Commercial And Industrial \| Loans 30-89 Days Past Due
Past Due Loans	0	11,000
Commercial And Industrial \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Commercial Real Estate Portfolio Segment
Past Due Loans	1,765,000	2,285,000
Nonaccrual	1,747,000	2,077,000
Current Loans	22,301,000	24,129,000
Total Loans	24,066,000	26,414,000
Commercial Real Estate Portfolio Segment \| Loans 30-89 Days Past Due
Past Due Loans	0	169,000
Commercial Real Estate Portfolio Segment \| Accruing Loans 90 or More Days Past Due
Past Due Loans	18,000	39,000
Consumer Real Estate
Past Due Loans	609,000	703,000
Nonaccrual	462,000	487,000
Current Loans	2,100,000	2,138,000
Total Loans	2,709,000	2,841,000
Consumer Real Estate \| Loans 30-89 Days Past Due
Past Due Loans	0	91,000
Consumer Real Estate \| Accruing Loans 90 or More Days Past Due
Past Due Loans	147,000	125,000
Total Real Estate
Past Due Loans	2,374,000	2,988,000
Nonaccrual	2,209,000	2,564,000
Current Loans	24,401,000	26,267,000
Total Loans	26,775,000	29,255,000
Total Real Estate \| Loans 30-89 Days Past Due
Past Due Loans	0	260,000
Total Real Estate \| Accruing Loans 90 or More Days Past Due
Past Due Loans	165,000	164,000
Consumer And Other Loans
Past Due Loans	96,000	197,000
Nonaccrual	0	0
Current Loans	946,000	1,005,000
Total Loans	1,042,000	1,202,000
Consumer And Other Loans \| Loans 30-89 Days Past Due
Past Due Loans	24,000	68,000
Consumer And Other Loans \| Accruing Loans 90 or More Days Past Due
Past Due Loans	72,000	129,000
Home Equity Line of Credit \| Consumer Real Estate
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	20,000	20,000
Total Loans	20,000	20,000
Home Equity Line of Credit \| Consumer Real Estate \| Loans 30-89 Days Past Due
Past Due Loans	0	0
Home Equity Line of Credit \| Consumer Real Estate \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Commercial \| Commercial And Industrial
Past Due Loans	109,000	110,000
Nonaccrual	109,000	110,000
Current Loans	1,348,000	1,425,000
Total Loans	1,457,000	1,535,000
Commercial \| Commercial And Industrial \| Loans 30-89 Days Past Due
Past Due Loans	0	0
Commercial \| Commercial And Industrial \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
SBA Loans \| Commercial And Industrial
Past Due Loans	39,000	40,000
Nonaccrual	39,000	40,000
Current Loans	0	0
Total Loans	39,000	40,000
SBA Loans \| Commercial And Industrial \| Loans 30-89 Days Past Due
Past Due Loans	0	0
SBA Loans \| Commercial And Industrial \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment
Past Due Loans	263,000	271,000
Nonaccrual	263,000	271,000
Current Loans	325,000	82,000
Total Loans	588,000	353,000
SBA Loans \| Commercial Real Estate Portfolio Segment \| Loans 30-89 Days Past Due
Past Due Loans	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Asset Based Loans \| Commercial And Industrial
Past Due Loans	289,000	300,000
Nonaccrual	289,000	289,000
Current Loans	1,120,000	1,187,000
Total Loans	1,409,000	1,487,000
Asset Based Loans \| Commercial And Industrial \| Loans 30-89 Days Past Due
Past Due Loans	0	11,000
Asset Based Loans \| Commercial And Industrial \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Commercial Mortgages \| Commercial Real Estate Portfolio Segment
Past Due Loans	1,298,000	1,543,000
Nonaccrual	1,280,000	1,335,000
Current Loans	11,538,000	12,231,000
Total Loans	12,836,000	13,774,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Loans 30-89 Days Past Due
Past Due Loans	0	169,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Accruing Loans 90 or More Days Past Due
Past Due Loans	18,000	39,000
Construction \| Commercial Real Estate Portfolio Segment
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	1,250,000	2,175,000
Total Loans	1,250,000	2,175,000
Construction \| Commercial Real Estate Portfolio Segment \| Loans 30-89 Days Past Due
Past Due Loans	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Religious Organizations \| Commercial Real Estate Portfolio Segment
Past Due Loans	204,000	471,000
Nonaccrual	204,000	471,000
Current Loans	9,188,000	9,641,000
Total Loans	9,392,000	10,112,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Loans 30-89 Days Past Due
Past Due Loans	0	0
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Home Equity Loans \| Consumer Real Estate
Past Due Loans	480,000	539,000
Nonaccrual	333,000	358,000
Current Loans	353,000	358,000
Total Loans	833,000	897,000
Home Equity Loans \| Consumer Real Estate \| Loans 30-89 Days Past Due
Past Due Loans	0	56,000
Home Equity Loans \| Consumer Real Estate \| Accruing Loans 90 or More Days Past Due
Past Due Loans	147,000	125,000
1-4 family residential mortgages \| Consumer Real Estate
Past Due Loans	129,000	164,000
Nonaccrual	129,000	129,000
Current Loans	1,727,000	1,760,000
Total Loans	1,856,000	1,924,000
1-4 family residential mortgages \| Consumer Real Estate \| Loans 30-89 Days Past Due
Past Due Loans	0	35,000
1-4 family residential mortgages \| Consumer Real Estate \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Consumer Installment \| Consumer And Other Loans
Past Due Loans	0	0
Nonaccrual	0	0
Current Loans	0	0
Total Loans	0	0
Consumer Installment \| Consumer And Other Loans \| Loans 30-89 Days Past Due
Past Due Loans	0	0
Consumer Installment \| Consumer And Other Loans \| Accruing Loans 90 or More Days Past Due
Past Due Loans	0	0
Student Loans \| Consumer And Other Loans
Past Due Loans	95,000	195,000
Nonaccrual	0	0
Current Loans	826,000	886,000
Total Loans	921,000	1,081,000
Student Loans \| Consumer And Other Loans \| Loans 30-89 Days Past Due
Past Due Loans	24,000	66,000
Student Loans \| Consumer And Other Loans \| Accruing Loans 90 or More Days Past Due
Past Due Loans	71,000	129,000
Other \| Consumer And Other Loans
Past Due Loans	1,000	2,000
Nonaccrual	0	0
Current Loans	120,000	119,000
Total Loans	121,000	121,000
Other \| Consumer And Other Loans \| Loans 30-89 Days Past Due
Past Due Loans	0	2,000
Other \| Consumer And Other Loans \| Accruing Loans 90 or More Days Past Due
Past Due Loans	$ 1,000	$ 0

XML 43 R32.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of Bank Loans by Class According to Credit Quality (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Commercial real estate	$ 24,066,000	$ 26,414,000
Consumer real estate	2,709,000	2,841,000
Consumer loans other	1,042,000	1,202,000
Total consumer loans	3,751,000	4,043,000
Total Loans	30,713,493	33,519,042
Good/Excellent
Total commercial loans	285,000	285,000
Satisfactory
Total commercial loans	18,612,000	22,392,000
Pass
Total commercial loans	4,041,000	2,467,000
Special Mention
Total commercial loans	1,612,000	1,557,000
Substandard
Total commercial loans	2,124,000	2,476,000
Doubtful
Total commercial loans	297,000	299,000
Total
Total commercial loans	26,971,000	29,476,000
Performing
Consumer real estate	2,247,000	2,354,000
Consumer loans other	1,042,000	1,202,000
Total consumer loans	3,289,000	3,556,000
Nonperforming
Consumer real estate	462,000	487,000
Consumer loans other	0	0
Total consumer loans	462,000	487,000
Commercial And Industrial
Total Loans	2,905,000	3,062,000
Commercial And Industrial \| Good/Excellent
Total commercial loans	250,000	285,000
Commercial And Industrial \| Satisfactory
Total commercial loans	1,728,000	1,822,000
Commercial And Industrial \| Pass
Total commercial loans	222,000	238,000
Commercial And Industrial \| Special Mention
Total commercial loans	48,000	58,000
Commercial And Industrial \| Substandard
Total commercial loans	581,000	583,000
Commercial And Industrial \| Doubtful
Total commercial loans	76,000	76,000
Commercial And Industrial \| Total
Total commercial loans	2,905,000	3,062,000
Consumer And Other Loans
Total Loans	1,042,000	1,202,000
Consumer And Other Loans \| Total \| Consumer Installment
Consumer loans other	0	0
Consumer And Other Loans \| Total \| Student Loans
Consumer loans other	921,000	1,081,000
Consumer And Other Loans \| Total \| Other
Consumer loans other	121,000	121,000
Consumer And Other Loans \| Performing \| Consumer Installment
Consumer loans other	0	0
Consumer And Other Loans \| Performing \| Student Loans
Consumer loans other	921,000	1,081,000
Consumer And Other Loans \| Performing \| Other
Consumer loans other	121,000	121,000
Consumer And Other Loans \| Nonperforming \| Consumer Installment
Consumer loans other	0	0
Consumer And Other Loans \| Nonperforming \| Student Loans
Consumer loans other	0	0
Consumer And Other Loans \| Nonperforming \| Other
Consumer loans other	0	0
Consumer Real Estate
Total Loans	2,709,000	2,841,000
Consumer Real Estate \| Total \| Home Equity
Consumer real estate	833,000	897,000
Consumer Real Estate \| Total \| Home Equity Line Of Credit
Consumer real estate	20,000	20,000
Consumer Real Estate \| Total \| 1-4 Family Residential Mortgages
Consumer real estate	1,856,000	1,924,000
Consumer Real Estate \| Performing \| Home Equity
Consumer real estate	500,000	539,000
Consumer Real Estate \| Performing \| Home Equity Line Of Credit
Consumer real estate	20,000	20,000
Consumer Real Estate \| Performing \| 1-4 Family Residential Mortgages
Consumer real estate	1,727,000	1,795,000
Consumer Real Estate \| Nonperforming \| Home Equity
Consumer real estate	333,000	358,000
Consumer Real Estate \| Nonperforming \| Home Equity Line Of Credit
Consumer real estate	0	0
Consumer Real Estate \| Nonperforming \| 1-4 Family Residential Mortgages
Consumer real estate	129,000	129,000
Commercial Real Estate Portfolio Segment
Total Loans	24,066,000	26,414,000
Commercial Real Estate Portfolio Segment \| Good/Excellent
Commercial real estate	35,000	0
Commercial Real Estate Portfolio Segment \| Satisfactory
Commercial real estate	16,884,000	20,570,000
Commercial Real Estate Portfolio Segment \| Pass
Commercial real estate	3,819,000	2,229,000
Commercial Real Estate Portfolio Segment \| Special Mention
Commercial real estate	1,564,000	1,499,000
Commercial Real Estate Portfolio Segment \| Substandard
Commercial real estate	1,543,000	1,893,000
Commercial Real Estate Portfolio Segment \| Doubtful
Commercial real estate	221,000	223,000
Commercial Real Estate Portfolio Segment \| Total
Commercial real estate	24,066,000	26,414,000
Commercial \| Commercial And Industrial
Total Loans	1,457,000	1,535,000
Commercial \| Commercial And Industrial \| Good/Excellent
Total commercial loans	250,000	285,000
Commercial \| Commercial And Industrial \| Satisfactory
Total commercial loans	894,000	922,000
Commercial \| Commercial And Industrial \| Pass
Total commercial loans	12,000	16,000
Commercial \| Commercial And Industrial \| Special Mention
Total commercial loans	48,000	58,000
Commercial \| Commercial And Industrial \| Substandard
Total commercial loans	253,000	254,000
Commercial \| Commercial And Industrial \| Doubtful
Total commercial loans	0	0
Commercial \| Commercial And Industrial \| Total
Total commercial loans	1,457,000	1,535,000
SBA Loans \| Commercial And Industrial
Total Loans	39,000	40,000
SBA Loans \| Commercial And Industrial \| Good/Excellent
Total commercial loans	0	0
SBA Loans \| Commercial And Industrial \| Satisfactory
Total commercial loans	0	0
SBA Loans \| Commercial And Industrial \| Pass
Total commercial loans	0	0
SBA Loans \| Commercial And Industrial \| Special Mention
Total commercial loans	0	0
SBA Loans \| Commercial And Industrial \| Substandard
Total commercial loans	39,000	40,000
SBA Loans \| Commercial And Industrial \| Doubtful
Total commercial loans	0	0
SBA Loans \| Commercial And Industrial \| Total
Total commercial loans	39,000	40,000
SBA Loans \| Commercial Real Estate Portfolio Segment
Total Loans	588,000	353,000
SBA Loans \| Commercial Real Estate Portfolio Segment \| Good/Excellent
Commercial real estate	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment \| Satisfactory
Commercial real estate	325,000	82,000
SBA Loans \| Commercial Real Estate Portfolio Segment \| Pass
Commercial real estate	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment \| Special Mention
Commercial real estate	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment \| Substandard
Commercial real estate	263,000	271,000
SBA Loans \| Commercial Real Estate Portfolio Segment \| Doubtful
Commercial real estate	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment \| Total
Commercial real estate	588,000	353,000
Asset Based \| Commercial And Industrial \| Good/Excellent
Total commercial loans	0	0
Asset Based \| Commercial And Industrial \| Satisfactory
Total commercial loans	834,000	900,000
Asset Based \| Commercial And Industrial \| Pass
Total commercial loans	210,000	222,000
Asset Based \| Commercial And Industrial \| Special Mention
Total commercial loans	0	0
Asset Based \| Commercial And Industrial \| Substandard
Total commercial loans	289,000	289,000
Asset Based \| Commercial And Industrial \| Doubtful
Total commercial loans	76,000	76,000
Asset Based \| Commercial And Industrial \| Total
Total commercial loans	1,409,000	1,487,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment
Total Loans	12,836,000	13,774,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Good/Excellent
Commercial real estate	0	0
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Satisfactory
Commercial real estate	9,035,000	10,689,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Pass
Commercial real estate	1,937,000	1,098,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Special Mention
Commercial real estate	567,000	613,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Substandard
Commercial real estate	1,076,000	1,151,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Doubtful
Commercial real estate	221,000	223,000
Commercial Mortgages \| Commercial Real Estate Portfolio Segment \| Total
Commercial real estate	12,836,000	13,774,000
Construction \| Commercial Real Estate Portfolio Segment
Total Loans	1,250,000	2,175,000
Construction \| Commercial Real Estate Portfolio Segment \| Good/Excellent
Commercial real estate	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Satisfactory
Commercial real estate	1,250,000	2,175,000
Construction \| Commercial Real Estate Portfolio Segment \| Pass
Commercial real estate	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Special Mention
Commercial real estate	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Substandard
Commercial real estate	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Doubtful
Commercial real estate	0	0
Construction \| Commercial Real Estate Portfolio Segment \| Total
Commercial real estate	1,250,000	2,175,000
Religious Organizations \| Commercial Real Estate Portfolio Segment
Total Loans	9,392,000	10,112,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Good/Excellent
Commercial real estate	35,000	0
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Satisfactory
Commercial real estate	6,274,000	7,624,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Pass
Commercial real estate	1,882,000	1,131,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Special Mention
Commercial real estate	997,000	886,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Substandard
Commercial real estate	204,000	471,000
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Doubtful
Commercial real estate	0	0
Religious Organizations \| Commercial Real Estate Portfolio Segment \| Total
Commercial real estate	$ 9,392,000	$ 10,112,000

XML 44 R33.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Unpaid Contractual Principal Balance	$ 2,184	$ 2,980
Recorded Investment With No Allowance	1,367	1,945
Recorded Investment With Allowance	817	570
Total Recorded Investment	2,184	2,515
Related Allowance	71	91
Commercial And Industrial
Unpaid Contractual Principal Balance	437	904
Recorded Investment With No Allowance	194	393
Recorded Investment With Allowance	243	46
Total Recorded Investment	437	439
Related Allowance	0	0
Commercial Real Estate Portfolio Segment
Unpaid Contractual Principal Balance	1,747	2,076
Recorded Investment With No Allowance	1,173	1,552
Recorded Investment With Allowance	574	524
Total Recorded Investment	1,747	2,076
Related Allowance	71	91
Commercial \| Commercial And Industrial
Unpaid Contractual Principal Balance	109	818
Recorded Investment With No Allowance	109	353
Recorded Investment With Allowance	0	0
Total Recorded Investment	109	353
Related Allowance	0	0
SBA Loans \| Commercial And Industrial
Unpaid Contractual Principal Balance	39	46
Recorded Investment With No Allowance	39	0
Recorded Investment With Allowance	0	46
Total Recorded Investment	39	46
Related Allowance	0	0
SBA Loans \| Commercial Real Estate Portfolio Segment
Unpaid Contractual Principal Balance	263	271
Recorded Investment With No Allowance	163	271
Recorded Investment With Allowance	100	0
Total Recorded Investment	263	271
Related Allowance	4	0
Asset Based Loans \| Commercial And Industrial
Unpaid Contractual Principal Balance	289	40
Recorded Investment With No Allowance	46	40
Recorded Investment With Allowance	243	0
Total Recorded Investment	289	40
Related Allowance	0	0
Commercial Mortgages \| Commercial Real Estate Portfolio Segment
Unpaid Contractual Principal Balance	1,280	1,334
Recorded Investment With No Allowance	806	810
Recorded Investment With Allowance	474	524
Total Recorded Investment	1,280	1,334
Related Allowance	67	91
Religious Organizations \| Commercial Real Estate Portfolio Segment
Unpaid Contractual Principal Balance	204	471
Recorded Investment With No Allowance	204	471
Recorded Investment With Allowance	0	0
Total Recorded Investment	204	471
Related Allowance	$ 0	$ 0

XML 45 R34.htm IDEA: XBRL DOCUMENT

6. Loans and Allowance For Loan Losses: Schedule of Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Average Recorded Investment	$ 2,251	$ 1,854	$ 1,985	$ 1,782
Interest recognized on impaired loans	7	2	18	3
Commercial And Industrial
Average Recorded Investment	437	320	437	286
Interest recognized on impaired loans	3	2	0	3
Commercial Real Estate Portfolio Segment
Average Recorded Investment	1,814	1,534	1,548	1,496
Interest recognized on impaired loans	4	0	18	0
Commercial \| Commercial And Industrial
Average Recorded Investment	109	201	109	200
Interest recognized on impaired loans	0	0	0	0
SBA Loans \| Commercial And Industrial
Average Recorded Investment	39	46	39	46
Interest recognized on impaired loans	0	1	0	2
SBA Loans \| Commercial Real Estate Portfolio Segment
Average Recorded Investment	264	113	103	112
Interest recognized on impaired loans	0	0	5	0
Asset Based Loans \| Commercial And Industrial
Average Recorded Investment	289	73	289	40
Interest recognized on impaired loans	3	1	0	1
Commercial Mortgages \| Commercial Real Estate Portfolio Segment
Average Recorded Investment	1,308	934	1,097	896
Interest recognized on impaired loans	4	0	13	0
Religious Organizations \| Commercial Real Estate Portfolio Segment
Average Recorded Investment	242	487	348	488
Interest recognized on impaired loans	$ 0	$ 0	$ 0	$ 0

XML 46 R35.htm IDEA: XBRL DOCUMENT

7. Other Real Estate Owned: Schedule of Change in Other Real Estate Owned (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Text Block [Abstract]
Other Real Estate, Beginning Balance	$ 564,000	$ 708,000	$ 479,627	$ 564,000
Additions, transfers from loans	237,000	59,000	477,000	148,000
Sales	(305,000)	(43,000)	(140,000)	(43,000)
Other Real Estate Owned	496,000	726,000	770,000	669,000
Write-ups (downs)	(49,000)	33,000	(13,000)	88,000
Other Real Estate, Ending Balance	$ 446,777	$ 757,000	$ 446,777	$ 757,000

XML 47 R36.htm IDEA: XBRL DOCUMENT

7. Other Real Estate Owned: Schedule of Components of Other Real Estate Owned (Details) - USD ($)	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014
Other real estate owned	$ 446,777	$ 564,000	$ 479,627	$ 757,000	$ 708,000	$ 564,000
Commercial Real Estate
Other real estate owned	316,000		297,000
Residential Real Estate
Other real estate owned	$ 131,000		$ 183,000

XML 48 R37.htm IDEA: XBRL DOCUMENT

7. Other Real Estate Owned: Schedule of Components of Net Expense (income) of Other Real Estate Owned (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Professional fees	$ 75,973	$ 74,964	$ 149,131	$ 165,415
Impairment charges (net)			0	88,460
Other Real Estate {1}
Insurance	2	4	6	8
Legal Fees	16		16
Professional fees	0		4
Real estate taxes	4	3	10	6
Utilities	1	1	1	1
Other	0	0	0	10
Transfer-in write up	49	(31)	49	(88)
Impairment charges (net)	0	0	0	0
Total	$ 72	$ (23)	$ 86	$ (63)

XML 49 R38.htm IDEA: XBRL DOCUMENT

8. Fair Value: Schedule of Fair Value of Assets on a Recurring Basis (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Assets Measured at Fair Value	$ 6,703,000	$ 7,572,000
Loans held for sale, at fair value	7,136,996	3,260,761
Loans held at fair value	3,237,904	2,458,930
Fair Value, Inputs, Level 1
Assets Measured at Fair Value	130,000	130,000
Loans held for sale, at fair value	0	0
Loans held at fair value	0	0
Fair Value, Inputs, Level 2
Assets Measured at Fair Value	6,573,000	7,442,000
Loans held for sale, at fair value	7,137,000	3,261,000
Loans held at fair value	0	0
Fair Value, Inputs, Level 3
Assets Measured at Fair Value	0	0
Loans held for sale, at fair value	0	0
Loans held at fair value	3,238,000	2,459,000
US Government Agency Securities
Assets Measured at Fair Value	2,953,000	3,662,000
US Government Agency Securities \| Fair Value, Inputs, Level 1
Assets Measured at Fair Value	0	0
US Government Agency Securities \| Fair Value, Inputs, Level 2
Assets Measured at Fair Value	2,953,000	3,662,000
US Government Agency Securities \| Fair Value, Inputs, Level 3
Assets Measured at Fair Value	0	0
Government Sponsored Enterprises residential mortgage-backed securities
Assets Measured at Fair Value	3,620,000	3,780,000
Government Sponsored Enterprises residential mortgage-backed securities \| Fair Value, Inputs, Level 1
Assets Measured at Fair Value	0	0
Government Sponsored Enterprises residential mortgage-backed securities \| Fair Value, Inputs, Level 2
Assets Measured at Fair Value	3,620,000	3,780,000
Government Sponsored Enterprises residential mortgage-backed securities \| Fair Value, Inputs, Level 3
Assets Measured at Fair Value	0	0
Investments in money market funds
Assets Measured at Fair Value	130,000	130,000
Investments in money market funds \| Fair Value, Inputs, Level 1
Assets Measured at Fair Value	130,000	130,000
Investments in money market funds \| Fair Value, Inputs, Level 2
Assets Measured at Fair Value	0	0
Investments in money market funds \| Fair Value, Inputs, Level 3
Assets Measured at Fair Value	$ 0	$ 0

XML 50 R39.htm IDEA: XBRL DOCUMENT

8. Fair Value: Schedule of Inputs in Estimation of Fair Value of Level 3 Financial Instruments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Loans held at fair value	$ 3,237,904	$ 2,458,930
Fair Value, Inputs, Level 3
Loans held at fair value	$ 3,238,000	$ 2,459,000
Principal valuation technique	Discounted cash flow	Discounted cash flow
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring \| Minimum
Constant prepayment rate	7.33%	7.10%
Weighted average discount rate	7.22%	7.76%
Weighted average life	3 years 2 months 12 days	3 years 4 months 24 days
Fair Value, Inputs, Level 3 \| Fair Value, Measurements, Recurring \| Maximum
Constant prepayment rate	10.189%	9.88%
Weighted average discount rate	10.12%	9.94%
Weighted average life	9 years 10 months 10 days	8 years 9 months 11 days

XML 51 R40.htm IDEA: XBRL DOCUMENT

8. Fair Value (Details) - Loans Held at Fair Value $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Balance, Starting	$ 2,459
Origination of loans	0
Principal repayments	0
Change in fair value of financial instruments	0
Balance, Ending	$ 3,238

XML 52 R41.htm IDEA: XBRL DOCUMENT

8. Fair Value: Schedule of Fair Value of Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Assets, Fair Value, Nonrecurring	$ 6,703	$ 7,572
Fair Value, Inputs, Level 1
Assets, Fair Value, Nonrecurring	130	130
Fair Value, Inputs, Level 2
Assets, Fair Value, Nonrecurring	6,573	7,442
Fair Value, Inputs, Level 3
Assets, Fair Value, Nonrecurring	0	0
Impaired Loans, Carrying Value
Assets, Fair Value, Nonrecurring	2,184	2,424
Total fair value loss during the year	0	0
Impaired Loans, Carrying Value \| Fair Value, Inputs, Level 1
Assets, Fair Value, Nonrecurring	0	0
Impaired Loans, Carrying Value \| Fair Value, Inputs, Level 2
Assets, Fair Value, Nonrecurring	0	0
Impaired Loans, Carrying Value \| Fair Value, Inputs, Level 3
Assets, Fair Value, Nonrecurring	2,184	2,424
Other Real Estate Owned
Assets, Fair Value, Nonrecurring	447	480
Total fair value loss during the year	0	39
Other Real Estate Owned \| Fair Value, Inputs, Level 1
Assets, Fair Value, Nonrecurring	0	0
Other Real Estate Owned \| Fair Value, Inputs, Level 2
Assets, Fair Value, Nonrecurring	0	0
Other Real Estate Owned \| Fair Value, Inputs, Level 3
Assets, Fair Value, Nonrecurring	$ 447	$ 480

XML 53 R42.htm IDEA: XBRL DOCUMENT

8. Fair Value: Schedule of Fair Value of Financial Instruments at Year-End (Details) - USD ($)

Jun. 30, 2016

Dec. 31, 2015

Assets:

Available for sale securities

$ 6,702,889

$ 7,572,029

7,136,996

3,260,761

Loans, net of allowance for loan losses

3,237,904

2,458,930

30,358,930

33,101,029

11,322,524

11,680,878

Fair Value, Inputs, Level 1

12,998

9,157

Assets:

Fair Value, Inputs, Level 2

Assets:

7,137,000

3,261,000

Fair Value, Inputs, Level 3

Assets:

Available for sale securities

3,238,000

2,459,000

Carrying Amount

Assets:

^[1]

6,703,000

7,572,000

Loans, net of allowance for loan losses

^[2]

30,359,000

33,101,000

Carrying Amount | Fair Value, Inputs, Level 1

Assets:

Cash and cash equivalents

5,223,000

10,782,000

Carrying Amount | Fair Value, Inputs, Level 2

Assets:

Accrued interest receivable

7,137,000

3,261,000

203,000

175,000

Demand Deposits

28,418,000

30,022,000

11,323,000

11,681,000

Time deposits

11,566,000

14,259,000

Carrying Amount | Fair Value, Inputs, Level 3

13,000

9,000

Assets:

Available for sale securities

3,238,000

2,459,000

Fair Value

Assets:

^[1]

6,703,000

7,572,000

Loans, net of allowance for loan losses

^[2]

30,359,000

33,082,000

Fair Value | Fair Value, Inputs, Level 1

Assets:

Cash and cash equivalents

5,223,000

10,782,000

Fair Value | Fair Value, Inputs, Level 2

Assets:

Accrued interest receivable

7,137,000

3,261,000

203,000

175,000

Demand Deposits

28,418,000

30,022,000

11,323,000

11,681,000

Time deposits

11,566,000

14,242,000

Fair Value | Fair Value, Inputs, Level 3

13,000

9,000

Assets: