0000944792false--12-31falseQ220190.0120000008269218269218269210.010.0150000070009934218509934299342185018501390002054300047200007600064000020000100001000751200010073000542000029700031300049890004451000Discounted cash flowDiscounted cash flow3110003190002981600000004581000451600015000285002.441200000.000009447922019-01-012019-06-300000944792us-gaap:SubsequentEventMember2020-03-012020-03-310000944792us-gaap:SubsequentEventMember2020-09-012020-09-300000944792us-gaap:SubsequentEventMember2021-05-012021-05-310000944792us-gaap:SubsequentEventMember2021-08-310000944792us-gaap:SubsequentEventMember2022-06-300000944792uboh:OtherGrantsMember2020-09-300000944792uboh:OtherGrantsMember2021-08-012021-08-3100009447922022-06-300000944792uboh:OtherGrantsMember2020-09-012020-09-300000944792uboh:CityOfPhiladelphiaMember2020-09-012020-09-3000009447922021-05-3100009447922019-01-012019-09-3000009447922020-09-300000944792uboh:ATMFeeIncomeMember2018-04-012018-06-300000944792uboh:ATMFeeIncomeMember2018-01-012018-06-300000944792uboh:ATMFeeIncomeMember2019-01-012019-06-300000944792uboh:ATMFeeIncomeMember2019-04-012019-06-300000944792uboh:CustomerServiceFeesMember2018-04-012018-06-300000944792uboh:CustomerServiceFeesMember2018-01-012018-06-300000944792uboh:CustomerServiceFeesMember2019-01-012019-06-300000944792uboh:CustomerServiceFeesMember2019-04-012019-06-300000944792us-gaap:OtherIncomeMember2018-04-012018-06-300000944792us-gaap:OtherIncomeMember2018-01-012018-06-300000944792us-gaap:OtherIncomeMember2019-01-012019-06-300000944792us-gaap:OtherIncomeMember2019-04-012019-06-300000944792us-gaap:FairValueInputsLevel2Memberuboh:FairValueMember2018-12-310000944792us-gaap:FairValueInputsLevel2Memberuboh:CarryingAmountsMember2018-12-310000944792us-gaap:FairValueInputsLevel2Memberuboh:FairValueMember2019-06-300000944792us-gaap:FairValueInputsLevel2Memberuboh:CarryingAmountsMember2019-06-300000944792us-gaap:FairValueInputsLevel1Memberuboh:FairValueMember2018-12-310000944792us-gaap:FairValueInputsLevel1Memberuboh:FairValueMember2019-06-300000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Member2018-12-310000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Member2018-12-310000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Member2018-12-310000944792uboh:OtherRealEstateOwnedMember2018-12-310000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Member2018-12-310000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel2Member2018-12-310000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel1Member2018-12-310000944792uboh:ImpairedLoansMember2018-12-310000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel3Member2019-06-300000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel2Member2019-06-300000944792uboh:OtherRealEstateOwnedMemberus-gaap:FairValueInputsLevel1Member2019-06-300000944792uboh:OtherRealEstateOwnedMember2019-06-300000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel3Member2019-06-300000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel2Member2019-06-300000944792uboh:ImpairedLoansMemberus-gaap:FairValueInputsLevel1Member2019-06-300000944792uboh:ImpairedLoansMember2019-06-300000944792uboh:ServicingAsset1Member2018-06-300000944792uboh:ServicingAsset1Member2019-06-300000944792uboh:ServicingAsset1Member2017-12-310000944792uboh:ServicingAsset1Member2018-12-310000944792uboh:LoanHeldAtFairValueMember2017-12-310000944792uboh:LoanHeldAtFairValueMember2018-06-300000944792uboh:LoanHeldAtFairValueMember2019-06-300000944792uboh:LoanHeldAtFairValueMember2018-12-310000944792uboh:ServicingAsset1Member2019-01-012019-06-300000944792uboh:ServicingAsset1Member2018-01-012018-06-300000944792uboh:LoanHeldAtFairValueMember2019-01-012019-06-300000944792uboh:LoanHeldAtFairValueMember2018-01-012018-06-300000944792srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-01-012018-12-310000944792srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-01-012019-06-300000944792srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2018-01-012018-12-310000944792srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-01-012019-06-300000944792srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberuboh:LoanHeldAtFairValueMember2018-01-012018-12-310000944792srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberuboh:LoansHeldAtFairValueMember2018-01-012018-12-310000944792srt:MaximumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberuboh:LoanHeldAtFairValueMember2019-01-012019-06-300000944792srt:MinimumMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberuboh:LoansHeldAtFairValueMember2019-01-012019-06-300000944792us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2019-01-012019-06-300000944792us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberuboh:LoansHeldAtFairValueMember2019-01-012019-06-300000944792uboh:ThousandMemberuboh:LoansHeldAtFairValueMember2018-12-310000944792uboh:ThousandMemberuboh:LoansHeldAtFairValueMember2019-06-300000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel3Member2018-12-310000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel2Member2018-12-310000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel1Member2018-12-310000944792uboh:ThousandMember2018-12-310000944792us-gaap:FairValueInputsLevel3Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentsSponsoredEnterprisesMember2018-12-310000944792us-gaap:FairValueInputsLevel2Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentsSponsoredEnterprisesMember2018-12-310000944792us-gaap:FairValueInputsLevel1Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentSponsoredEnterprisesMember2018-12-310000944792uboh:MortgageBackedSecuritiesIssuedByUsGovernmentSponsoredEnterprisesMember2018-12-310000944792us-gaap:FairValueInputsLevel3Memberuboh:UsGovernmentAgenciesDebtSecuriitiesMember2018-12-310000944792us-gaap:FairValueInputsLevel2Memberuboh:UsGovernmentAgenciesDebtsSecuriitiesMember2018-12-310000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel1Memberuboh:UsGovernmentAgenciesDebtsSecuriitiesMember2018-12-310000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel3Member2019-06-300000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel2Member2019-06-300000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel1Member2019-06-300000944792uboh:ThousandMember2019-06-300000944792us-gaap:FairValueInputsLevel3Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentsSponsoredEnterprisesMember2019-06-300000944792us-gaap:FairValueInputsLevel2Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentsSponsoredEnterprisesMember2019-06-300000944792us-gaap:FairValueInputsLevel1Memberuboh:MortgageBackedSecuritiesIssuedByUsGovernmentSponsoredEnterprisesMember2019-06-300000944792uboh:MortgageBackedSecuritiesIssuedByUsGovernmentSponsoredEnterprisesMember2019-06-300000944792us-gaap:FairValueInputsLevel3Memberuboh:UsGovernmentAgenciesDebtSecuriitiesMember2019-06-300000944792us-gaap:FairValueInputsLevel2Memberuboh:UsGovernmentAgenciesDebtsSecuriitiesMember2019-06-300000944792uboh:ThousandMemberus-gaap:FairValueInputsLevel1Memberuboh:UsGovernmentAgenciesDebtsSecuriitiesMember2019-06-300000944792us-gaap:ResidentialRealEstateMember2019-06-300000944792us-gaap:ResidentialRealEstateMember2018-12-310000944792uboh:ConsumerRealEstateSectorMember2018-06-300000944792uboh:ConsumerRealEstateSectorMember2019-01-012019-06-300000944792uboh:ConsumerRealEstateSectorMember2018-01-012018-06-300000944792uboh:ConsumerRealEstateSectorMember2017-12-310000944792uboh:UnallocatedMember2018-06-300000944792uboh:UnallocatedMember2019-06-300000944792uboh:UnallocatedMember2019-01-012019-06-300000944792uboh:UnallocatedMember2018-01-012018-06-300000944792uboh:UnallocatedMember2017-12-310000944792uboh:UnallocatedMember2018-12-310000944792uboh:ConsumerAndOtherSectorMember2018-06-300000944792uboh:ConsumerAndOtherSectorMember2019-01-012019-06-300000944792uboh:ConsumerAndOtherSectorMember2018-01-012018-06-300000944792uboh:ConsumerAndOtherSectorMember2017-12-310000944792uboh:CommercialAndIndustrialSectorsMember2019-01-012019-06-300000944792uboh:CommercialAndIndustrialSectorsMember2018-01-012018-06-300000944792uboh:CommercialAndIndustrialSectorsMember2017-12-310000944792uboh:CommercialRealEstatesMember2019-01-012019-06-300000944792uboh:CommercialRealEstatesMember2018-01-012018-06-300000944792uboh:CommercialRealEstatesMember2017-12-310000944792uboh:CommercialRealEstatesMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2018-01-012018-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Member2019-01-012019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-01-012019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-01-012019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-01-012019-06-300000944792uboh:CommercialAndIndustrialMember2019-01-012019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2019-01-012019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2019-01-012019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2019-04-012019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2018-04-012018-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Member2018-04-012018-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Member2019-04-012019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Member2018-01-012018-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-04-012018-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-04-012019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-01-012018-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-04-012018-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-04-012019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-01-012018-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-04-012018-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-04-012019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-01-012018-06-300000944792uboh:CommercialAndIndustrialMember2018-04-012018-06-300000944792uboh:CommercialAndIndustrialMember2019-04-012019-06-300000944792uboh:CommercialAndIndustrialMember2018-01-012018-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2018-04-012018-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2019-04-012019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2018-01-012018-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2018-04-012018-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2019-01-012019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2019-04-012019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2018-01-012018-06-300000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:SubtotalMember2018-12-310000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:NonperformingMember2018-12-310000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:PerformingMember2018-12-310000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:SubtotalMember2018-12-310000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:NonperformingMember2018-12-310000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:PerformingMember2018-12-310000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:SubtotalMember2019-06-300000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:NonperformingMember2019-06-300000944792uboh:Other1Memberuboh:ConsumerAndOtherLoansMemberuboh:PerformingMember2019-06-300000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:SubtotalMember2019-06-300000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:NonperformingMember2019-06-300000944792uboh:StudentLoansMemberuboh:ConsumerAndOtherLoansMemberuboh:PerformingMember2019-06-300000944792uboh:SubtotalMember2018-12-310000944792uboh:NonperformingMember2018-12-310000944792uboh:PerformingMember2018-12-310000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2018-12-310000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2018-12-310000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:PerformingMember2018-12-310000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2018-12-310000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2018-12-310000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:PerformingMember2018-12-310000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2018-12-310000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2018-12-310000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:PerformingMember2018-12-310000944792uboh:SubtotalMember2019-06-300000944792uboh:NonperformingMember2019-06-300000944792uboh:PerformingMember2019-06-300000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2019-06-300000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2019-06-300000944792uboh:N14FamilyResidentialMortgagesMemberuboh:ConsumerRealEstateMemberuboh:PerformingMember2019-06-300000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2019-06-300000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2019-06-300000944792uboh:HomeEquityLineOfCreditMemberuboh:ConsumerRealEstateMemberuboh:PerformingMember2019-06-300000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:SubtotalMember2019-06-300000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:NonperformingMember2019-06-300000944792uboh:HomeEquity1Memberuboh:ConsumerRealEstateMemberuboh:PerformingMember2019-06-300000944792us-gaap:DoubtfulMember2018-12-310000944792us-gaap:SubstandardMember2018-12-310000944792us-gaap:SpecialMentionMember2018-12-310000944792uboh:Pass1Member2018-12-310000944792uboh:SatisfactoryMember2018-12-310000944792uboh:GoodExcellentMember2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Member2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2018-12-310000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2018-12-310000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2018-12-310000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2018-12-310000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2018-12-310000944792uboh:CommercialAndIndustrialMember2018-12-310000944792uboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2018-12-310000944792uboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2018-12-310000944792uboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2018-12-310000944792uboh:CommercialAndIndustrialMemberuboh:Pass1Member2018-12-310000944792uboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2018-12-310000944792uboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2018-12-310000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2018-12-310000944792us-gaap:DoubtfulMember2019-06-300000944792us-gaap:SubstandardMember2019-06-300000944792us-gaap:SpecialMentionMember2019-06-300000944792uboh:Pass1Member2019-06-300000944792uboh:SatisfactoryMember2019-06-300000944792uboh:GoodExcellentMember2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Member2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2019-06-300000944792uboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2019-06-300000944792uboh:ReligiousOrganizationsMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2019-06-300000944792us-gaap:ConstructionMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Member2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:DoubtfulMember2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SubstandardMember2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberus-gaap:SpecialMentionMember2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:Pass1Member2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:SatisfactoryMember2019-06-300000944792uboh:CommercialMortgagesMemberuboh:CommercialRealEstatePortfolioSegment1Memberuboh:GoodExcellentMember2019-06-300000944792uboh:CommercialAndIndustrialMember2019-06-300000944792uboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2019-06-300000944792uboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2019-06-300000944792uboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2019-06-300000944792uboh:CommercialAndIndustrialMemberuboh:Pass1Member2019-06-300000944792uboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2019-06-300000944792uboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:DoubtfulMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:SubstandardMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberus-gaap:SpecialMentionMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:Pass1Member2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:SatisfactoryMember2019-06-300000944792uboh:CommercialMemberuboh:CommercialAndIndustrialMemberuboh:GoodExcellentMember2019-06-300000944792uboh:TotalLoanMember2019-06-300000944792uboh:TotalLoanMember2018-12-310000944792uboh:CurrentLoansMember2019-06-300000944792uboh:CurrentLoansMember2018-12-310000944792us-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:NonaccrualMember2019-06-300000944792uboh:NonaccrualMember2018-12-310000944792us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:CurrentLoansMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:CurrentLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:NonaccrualMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:NonaccrualMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CurrentLoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CurrentLoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:NonaccrualMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:NonaccrualMember2018-12-310000944792us-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:CurrentLoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:CurrentLoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:NonaccrualMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:NonaccrualMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:CurrentLoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:CurrentLoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:NonaccrualMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:NonaccrualMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:CurrentLoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:CurrentLoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:NonaccrualMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:NonaccrualMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:CurrentLoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:CurrentLoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberus-gaap:FinancialAssetPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberus-gaap:FinancialAssetPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:NonaccrualMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:NonaccrualMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:FinancingReceivables30To89DaysPastDueMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMemberuboh:FinancingReceivables30To89DaysPastDueMember2018-12-310000944792uboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:TotalsMemberuboh:AssetBasedMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:TotalsMemberuboh:AssetBasedMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:AssetBasedMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:AssetBasedMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:AssetBasedMemberuboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberuboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:AssetBasedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:AssetBasedMemberuboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberuboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:SBALoansMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:SBALoansMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:SBALoansMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:SBALoansMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:SBALoansMemberuboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:SBALoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberuboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberuboh:FinancingReceivables30To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:CommercialPortfolioSegmentMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberuboh:CurrentLoansMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:CommercialPortfolioSegmentMemberuboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberuboh:NonaccrualMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:SBALoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:SBALoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:OtherMember2018-12-310000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMember2019-06-300000944792uboh:ConsumerAndOtherSectorMemberuboh:StudentLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:OneToFourFamilyResidentialMortgagesMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberuboh:HomeEquityLinesOfCreditMember2018-12-310000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMember2019-06-300000944792uboh:ConsumerRealEstateSectorMemberus-gaap:HomeEquityLoanMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ReligiousOrganizationsMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:ConstructionsPortfolioMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:SBALoansMember2018-12-310000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMember2019-06-300000944792us-gaap:CommercialRealEstateMemberuboh:CommercialMortgagesMember2018-12-310000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:AssetBasedMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:SBALoansMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792us-gaap:CommercialPortfolioSegmentMemberuboh:CommercialAndIndustrialSectorsMember2019-06-300000944792us-gaap:CommercialPortfolioSegmentMemberuboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:UnallocatedLoansMember2019-06-300000944792uboh:UnallocatedLoansMember2018-12-310000944792uboh:ConsumerLoansOtherLoanMember2019-06-300000944792uboh:ConsumerLoansOtherLoanMember2018-12-310000944792uboh:ConsumerRealEstateLoanMember2019-06-300000944792uboh:ConsumerRealEstateLoanMember2018-12-310000944792uboh:CommercialRealEstateLoanMember2019-06-300000944792uboh:CommercialRealEstateLoanMember2018-12-310000944792uboh:CommercialAndIndustrialLoansMember2019-06-300000944792uboh:CommercialAndIndustrialLoansMember2018-12-310000944792uboh:ConsumerRealEstateSectorsMember2018-06-300000944792uboh:ConsumerRealEstateSectorsMember2019-06-300000944792uboh:ConsumerRealEstateSectorsMember2019-04-012019-06-300000944792uboh:ConsumerRealEstateSectorsMember2018-04-012018-06-300000944792uboh:ConsumerRealEstateSectorsMember2018-03-310000944792uboh:ConsumerRealEstateSectorsMember2019-03-310000944792uboh:UnallocateddMember2018-06-300000944792uboh:UnallocateddMember2019-06-300000944792uboh:UnallocateddMember2019-04-012019-06-300000944792uboh:UnallocateddMember2018-04-012018-06-300000944792uboh:UnallocateddMember2018-03-310000944792uboh:UnallocateddMember2019-03-310000944792uboh:ConsumerAndOtherSectorsMember2018-06-300000944792uboh:ConsumerAndOtherSectorsMember2019-06-300000944792uboh:ConsumerAndOtherSectorsMember2019-04-012019-06-300000944792uboh:ConsumerAndOtherSectorsMember2018-04-012018-06-300000944792uboh:ConsumerAndOtherSectorsMember2018-03-310000944792uboh:ConsumerAndOtherSectorsMember2019-03-310000944792uboh:CommercialRealEstatesMember2018-06-300000944792uboh:CommercialRealEstatesMember2019-06-300000944792uboh:CommercialRealEstatesMember2019-04-012019-06-300000944792uboh:CommercialRealEstatesMember2018-04-012018-06-300000944792uboh:CommercialRealEstatesMember2018-03-310000944792uboh:CommercialRealEstatesMember2019-03-310000944792uboh:CommercialAndIndustrialSectorsMember2018-06-300000944792uboh:CommercialAndIndustrialSectorsMember2019-04-012019-06-300000944792uboh:CommercialAndIndustrialSectorsMember2018-04-012018-06-300000944792uboh:CommercialAndIndustrialSectorsMember2019-03-310000944792uboh:CommercialAndIndustrialSectorsMember2018-03-310000944792uboh:ConsumerAndOtherSectorMember2019-06-300000944792uboh:ConsumerAndOtherSectorMember2018-12-310000944792uboh:ConsumerRealEstateSectorMember2019-06-300000944792uboh:ConsumerRealEstateSectorMember2018-12-310000944792us-gaap:CommercialRealEstateMember2019-06-300000944792us-gaap:CommercialRealEstateMember2018-12-310000944792uboh:CommercialAndIndustrialSectorsMember2019-06-300000944792uboh:CommercialAndIndustrialSectorsMember2018-12-310000944792uboh:OtherDebtObligationMember2019-06-300000944792uboh:MortgageBackedSecurityMember2019-06-300000944792uboh:OtherDebtObligationMember2018-12-310000944792uboh:MortgageBackedSecurityMember2018-12-310000944792uboh:AmortizedCostMember2018-06-300000944792uboh:FairValueMember2018-06-300000944792us-gaap:OtherDebtSecuritiesMember2019-06-300000944792uboh:GovernmentSponsoredEnterprisesResidentialMortgageBackedSecuritiesMember2019-06-300000944792uboh:USGovernmentAgencySecuritiesMember2019-06-300000944792us-gaap:OtherDebtSecuritiesMember2018-12-310000944792uboh:GovernmentSponsoredEnterprisesResidentialMortgageBackedSecuritiesMember2018-12-310000944792uboh:USGovernmentAgencySecuritiesMember2018-12-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000944792us-gaap:RetainedEarningsMember2019-06-300000944792us-gaap:AdditionalPaidInCapitalMember2019-06-300000944792us-gaap:CommonStockMember2019-06-300000944792uboh:SeriesBPreferredStocksMember2019-06-300000944792uboh:SeriesAPreferredStocksMember2019-06-300000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300000944792us-gaap:RetainedEarningsMember2019-04-012019-06-300000944792us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300000944792us-gaap:CommonStockMember2019-04-012019-06-300000944792uboh:SeriesBPreferredStocksMember2019-04-012019-06-300000944792uboh:SeriesAPreferredStocksMember2019-04-012019-06-3000009447922019-03-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310000944792us-gaap:RetainedEarningsMember2019-03-310000944792us-gaap:AdditionalPaidInCapitalMember2019-03-310000944792us-gaap:CommonStockMember2019-03-310000944792uboh:SeriesBPreferredStocksMember2019-03-310000944792uboh:SeriesAPreferredStocksMember2019-03-3100009447922019-01-012019-03-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000944792us-gaap:RetainedEarningsMember2019-01-012019-03-310000944792us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310000944792us-gaap:CommonStockMember2019-01-012019-03-310000944792uboh:SeriesBPreferredStocksMember2019-01-012019-03-310000944792uboh:SeriesAPreferredStocksMember2019-01-012019-03-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310000944792us-gaap:RetainedEarningsMember2018-12-310000944792us-gaap:AdditionalPaidInCapitalMember2018-12-310000944792us-gaap:CommonStockMember2018-12-310000944792uboh:SeriesBPreferredStocksMember2018-12-310000944792uboh:SeriesAPreferredStocksMember2018-12-3100009447922018-06-300000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300000944792us-gaap:RetainedEarningsMember2018-06-300000944792us-gaap:AdditionalPaidInCapitalMember2018-06-300000944792us-gaap:CommonStockMember2018-06-300000944792uboh:SeriesBPreferredStocksMember2018-06-300000944792uboh:SeriesAPreferredStocksMember2018-06-300000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-04-012018-06-300000944792us-gaap:RetainedEarningsMember2018-04-012018-06-300000944792us-gaap:AdditionalPaidInCapitalMember2018-04-012018-06-300000944792us-gaap:CommonStockMember2018-04-012018-06-300000944792uboh:SeriesBPreferredStocksMember2018-04-012018-06-300000944792uboh:SeriesAPreferredStocksMember2018-04-012018-06-3000009447922018-03-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-03-310000944792us-gaap:RetainedEarningsMember2018-03-310000944792us-gaap:AdditionalPaidInCapitalMember2018-03-310000944792us-gaap:CommonStockMember2018-03-310000944792uboh:SeriesBPreferredStocksMember2018-03-310000944792uboh:SeriesAPreferredStocksMember2018-03-3100009447922018-01-012018-03-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-01-012018-03-310000944792us-gaap:RetainedEarningsMember2018-01-012018-03-310000944792us-gaap:AdditionalPaidInCapitalMember2018-01-012018-03-310000944792us-gaap:CommonStockMember2018-01-012018-03-310000944792uboh:SeriesBPreferredStocksMember2018-01-012018-03-310000944792uboh:SeriesAPreferredStocksMember2018-01-012018-03-3100009447922017-12-310000944792us-gaap:AccumulatedOtherComprehensiveIncomeMember2017-12-310000944792us-gaap:RetainedEarningsMember2017-12-310000944792us-gaap:AdditionalPaidInCapitalMember2017-12-310000944792us-gaap:CommonStockMember2017-12-310000944792uboh:SeriesBPreferredStocksMember2017-12-310000944792uboh:SeriesAPreferredStocksMember2017-12-3100009447922018-01-012018-06-3000009447922018-04-012018-06-3000009447922019-04-012019-06-300000944792us-gaap:SeriesBPreferredStockMember2018-12-310000944792us-gaap:SeriesBPreferredStockMember2019-06-300000944792us-gaap:SeriesAPreferredStockMember2018-12-310000944792us-gaap:SeriesAPreferredStockMember2019-06-3000009447922018-12-3100009447922019-06-3000009447922022-10-24iso4217:USDxbrli:sharesiso4217:USDxbrli:sharesxbrli:pure

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTER ENDED JUNE 30, 2019

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______________ TO _____________

UNITED BANCSHARES INC /PA

(Exact name of registrant as specified in its charter)

0-25976

Commission File Number

Pennsylvania		23-2802415
(State or other jurisdiction of		(I.R.S. Employer
Incorporation or organization)		Identification No.)

30 S. 15th Street, Suite 1200, Philadelphia, PA		19102
(Address of principal executive office)		(Zip Code)

(215) 351-4600

(Registrant's telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or such shorter period that the registrant was required to filed such reports), and (2) has been subject to such filing requirements for the past 90 day. Yes ☐ No ☒

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Registration S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one)

Large accelerated filer ☐

Accelerated filer ☐

Non-accelerated filer ☐

Smaller Reporting Company ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13, or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes ☐ No ☐ Not Applicable.

Applicable only to corporate issuers:

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

United Bancshares, Inc. (sometimes herein also referred to as the “Company” or “UBS”) has two classes of capital stock authorized 2,000,000 shares of $0.01 par value Common Stock and 500,000 shares of $0.01 par value Series Preferred Stock. The Preferred Stock consists of 500,000 authorized shares of stock of which 250,000 have been designated as Series A, 7,000 as Series B, and 1,100 as Series C for which there were 99,442, 1,850, 1,100 shares are issued, respectively as of October 24, 2022.

The Board of Directors designated a subclass of the common stock, Class B Common Stock, by filing of Articles of Amendment to its Articles of Incorporation on September 30, 1998. This Class B Common Stock has all of the rights and privileges of Common Stock with the exception of voting rights. Of the 2,000,000 shares of authorized Common Stock, 250,000 have been designated Class B Common Stock. There is no market for the Common Stock. As of October 24, 2022, the aggregate number of the shares of the Registrant’s Common Stock issued was 843,050.

FORM 10-Q

Index

Item No.		Page
PART I - OTHER INFORMATION		3

Item 1. Financial Statements (unaudited)		3

Item 2. Management Discussion and Analysis of Financial Condition and Results of Operations		30

Item 3. Quantitative and Qualitative Disclosures about Market Risk		40

Item 4. Controls and Procedures		40

PART II - OTHER INFORMATION		41

Item 1. Legal Proceedings.		41

Item 1A. Risk Factors.		41

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.		41

Item 3. Defaults Upon Senior Securities.		41

Item 4. Mine Safety Disclosures.		41

Item 5. Other Information.		41

Item 6. Exhibits.		42

Table of Contents

PART I - OTHER INFORMATION

Item 1. Financial Statements (unaudited)

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

Assets:	June 30, 2019			December 31, 2018
Cash and due from banks	$	1,370,241		$	2,003,085
Interest-bearing deposits with banks		3,414,513			3,360,937
Federal funds sold		4,632,747			3,074,021
Cash and cash equivalents		9,417,501			8,438,043

Investment securities available-for-sale, at fair value		4,516,551			4,580,610

Loans held for sale		7,512,219			10,072,777

Loans held at fair value		6,115,603			5,420,004

Loans, net of unearned discounts and deferred fees		18,394,364			20,542,863
Less allowance for loan losses		(236,415	)		(278,095	)
Net loans		18,157,949			20,264,768

Operating lease right of use asset		1,735,163			-
Bank premises and equipment, net		124,848			163,124
Accrued interest receivable		162,170			152,953
Other real estate owned		235,571			391,571
Servicing asset		297,140			313,489
Prepaid expenses and other assets		411,172			397,284
Total assets	$	48,685,884		$	50,194,623
Liabilities and Shareholders’ Equity
Liabilities:
Demand deposits, noninterest-bearing	$	15,620,626		$	16,216,607
Demand deposits, interest-bearing		12,116,366			13,599,641
Savings deposits		10,490,588			10,589,054
Time deposits, under $250,000		3,198,312			3,467,732
Time deposits, $250,000 and over		2,148,411			4,399,159
Total deposits		43,574,303			48,272,193

Operating lease liability		1,841,199			-
Accrued interest payable		7,599			17,376
Accrued expenses and other liabilities		93,762			145,308
Total liabilities		45,516,863			48,434,877

Shareholders’ equity:
Series A preferred stock, noncumulative, 6%, $0.01 par value, 500,000 shares authorized; 99,342 issued and outstanding		993			993
Series B preferred stock, noncumulative, 7%, $0.01 par value, 7,000 shares authorized; 1,850 issued and outstanding		18			18
Common stock, $0.01 par value; 2,000,000 shares authorized; 826,921 issued and outstanding		8,269			8,269
Additional paid-in-capital		15,677,626			15,677,626
Accumulated deficit		(12,524,145	)		(13,834,625	)
Accumulated other comprehensive income (loss)		6,260			(92,535	)
Total shareholders’ equity		3,169,021			1,759,746
Total liabilities and shareholders’ equity	$	48,685,884		$	50,194,623

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months ended June 30, 2019			Three Months ended June 30, 2018			Six Months ended June 30, 2019			Six Months ended June 30, 2018
Interest income:
Interest and fees on loans	$	552,152		$	598,378		$	1,038,243		$	1,144,840
Interest on investment securities		27,155			28,815			55,915			58,349
Interest on federal funds sold		34,494			47,139			62,086			88,449
Interest on interest bearing deposits with other banks		27,276			284			54,024			740
Total interest income		641,077			674,616			1,210,268			1,292,378

Interest expense:
Interest on time deposits		7,233			12,356			18,100			24,277
Interest on demand deposits		5,727			6,531			11,577			13,033
Interest on savings deposits		1,292			1,427			2,586			2,839
Total interest expense		14,252			20,314			32,263			40,149
Net interest income		626,825			654,302			1,178,005			1,252,229
Provision (credit) for loan losses		30,000			5,000			(22,000	)		25,000

Net interest income after provision (credit) for loan losses		596,825			649,302			1,200,005			1,227,229

Noninterest income:
Customer service fees		92,834			102,851			185,908			202,940
ATM fee income		24,888			26,635			48,660			51,357
Gain on sale of loans		-			67,271			81,475			223,818
Net change in fair value of financial instruments		(656,516	)		11,423			(709,425	)		20,516
Gain (loss) on sale of other real estate		1,488			(9,522	)		(18,723	)		(11,604	)
Grant income		2,500,000			-			2,500,000			-
Servicing fees on loans		35,964			15,495			68,123			28,170
Other income		10,524			7,305			22,675			19,926
Total noninterest income		2,009,182			221,458			2,178,693			535,123

Noninterest expense:
Salaries, wages and employee benefits		334,935			381,826			663,757			781,880
Occupancy and equipment		244,374			246,093			460,850			501,135
Office operations and supplies		48,984			61,713			99,603			138,623
Marketing and public relations		1,987			6,765			4,319			25,327
Professional services		34,460			35,293			110,628			72,272
Data processing		107,113			107,422			213,894			208,857
Other real estate expense		5,578			10,944			15,408			24,779
Loan and collection costs		104,504			36,414			180,080			64,994
Deposit insurance assessments		23,000			24,000			32,353			49,000
Other operating		113,624			112,336			237,865			245,557
Total noninterest expense		1,018,559			1,022,806			2,018,757			2,112,424
Net income (loss) before income taxes		1,587,448			(152,046	)		1,243,737			(350,072	)
Provision for income taxes		-			-			-			-
Net income (loss)	$	1,587,448		$	(152,046	)	$	1,359,941		$	(350,072	)
Net income (loss) per common share—basic and diluted	$	1.92		$	(0.18	)	$	1.64		$	(0.42	)
Weighted average number of common shares outstanding		826,921			826,921			826,921			826,921
Comprehensive income (loss):
Net income (loss)	$	1,587,448		$	(152,046	)	$	1,359,941		$	(350,072	)
Unrealized gains (losses) on available for sale securities, net of taxes		40,905			(16,259	)		98,795			(70,138	)
Total comprehensive income (loss)	$	1,628,353		$	(168,305	)	$	1,458,736		$	(420,210	)

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Six Months Ended June 30, 2019

	Series A Preferred stock				Series B Preferred stock				Common stock				Additional paid-in		Accumulated			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Shares		Amount		Shares		Amount		capital		Deficit			Income (Loss)			Equity
Balance at December 31, 2018		99,342	$	993		1,850	$	18		826,921	$	8,269	$	15,677,626	$	(13,834,625	)	$	(92,535	)	$	1,759,746
Net loss		-		-		-		-		-		-		-		(227,508	)		-			(227,508	)
Cumulative effect of adoption of ASU 2016-02, Leases (Topic 842)																(49,460	)					(49,460	)
Other comprehensive income, net of tax		-		-		-		-		-		-		-		-			57,890			57,890
Balance at March 31, 2019		99,342	$	993		1,850	$	18		826,921	$	8,269	$	15,677,626	$	(14,111,593	)	$	(34,645	)	$	1,540,668
Net income		-		-		-		-		-		-		-		1,587,448			-			1,587,448
Other comprehensive income, net of tax		-		-		-		-		-		-		-		-			40,905			40,905
Balance at June 30, 2019		99,342	$	993		1,850	$	18		826,921	$	8,269	$	15,677,626	$	(12,524,145	)	$	6,260		$	3,169,021

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

Six Months Ended June 30, 2018

	Series A Preferred stock				Series B Preferred stock				Common stock				Additional paid-in		Accumulated			Accumulated Other Comprehensive			Total Shareholders’
	Shares		Amount		Shares		Amount		Shares		Amount		capital		Deficit			Loss			Equity
Balance at December 31, 2017		99,342	$	993		1,850	$	18		826,921	$	8,269	$	15,677,626	$	(12,348,988	)	$	(57,396	)	$	3,280,522
Net loss		-		-		-		-		-		-		-		(198,026	)		-			(198,026	)
Other comprehensive loss, net of tax		-		-		-		-		-		-		-		-			(53,879	)		(53,879	)
Balance at March 31, 2018		99,342		993		1,850		18		826,921		8,269		15,677,626		(12,547,014	)		(111,275	)		3,028,617
Net loss		-		-		-		-		-		-		-		(152,046	)		-			(152,046	)
Other comprehensive loss, net of tax		-		-		-		-		-		-		-		-			(16,259	)		(16,259	)
Balance at June 30, 2018		99,342	$	993		1,850	$	18		826,921	$	8,269	$	15,677,626	$	(12,699,060	)	$	(127,534	)	$	2,860,312

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

UNITED BANCSHARES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

	2019			2018

Cash flows from operating activities:
Net income (loss)	$	1,359,941		$	(350,072	)
Adjustments to reconcile net income (loss) to net cash
Provided by(used in) operating activities:
(Credit) provision for loan losses		(22,000	)		25,000
Amortization of premiums on investments		2,858			3,792
Loss on disposition of other real estate		18,723			11,604
Write-down of other real estate		-			5,000
Amortization of servicing asset		24,198			55,141
Depreciation on fixed assets		41,557			96,845
Net change in fair value of financial instruments		709,425			(20,516	)
Gain on sale of loans		(81,475	)		(223,818	)
Proceeds from the sale of loans held-for-sale		1,144,073			2,412,827
Loans originated for sale, net of payments		92,938			(3,328,794	)
Increase in accrued interest receivable and other assets		(30,952	)		(123,798	)
Decrease in accrued interest payable and other liabilities		(4,747	)		(45,345	)
Net cash provided by (used in) operating activities		3,254,539			(1,482,134	)

Cash flows from investing activities:
Proceeds from maturity and principal reductions of
available-for-sale investment securities		159,994			360,821
Purchase of securities available-for-sale		-			(1,083	)
Net decrease in loans		2,128,819			2,417,898
Proceeds from sale of other real estate		137,277			207,096
Purchase of bank premises and equipment		(3,281	)		(8,033	)
Net cash provided by investing activities		2,422,809			2,976,599

Cash flows from financing activities:
Net decrease in deposits		(4,697,890	)		(3,080,718	)
Net cash used in financing activities		(4,697,890	)		(3,080,718	)
Net increase (decrease) in cash and cash equivalents		979,458			(1,586,253	)
Cash and cash equivalents at beginning of period		8,438,043			11,671,253
Cash and cash equivalents at end of period	$	9,417,501		$	10,085,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	$	42,040		$	30,315
Transfer of investments to other cash equivalents	$	-		$	132,614
Transfer of loans from held for sale to held at fair value	$	1,475,873		$	538,309
Non-cash addition of operating lease right of use asset	$	(1,735,163	)	$	-
Non-cash addition of operating lease liability	$	1,841,199		$	-

See accompanying notes to the unaudited consolidated financial statements.

Table of Contents

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, 2018 when reviewing this Form 10-Q. Because this report is based on an interim period, certain information and footnote disclosures normally included in the Annual Report on Form 10-K have been condensed or omitted. 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, 2019 and December 31, 2018 and the consolidated results of its operations and its cash flows for the three and six months ended June 30, 2019 and 2018.

Management’s Use of Estimates

The preparation of the financial statements has 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 for sale and 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

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 fair value based on a loan-by-loan valuation using actual market bids. Any change in the balance of the loan and its fair value is recorded as income or expense in each reporting period. When the guaranteed portion of the loan is sold, the gain on the sale is reduced by the income previously recognized as part of the fair value adjustment. SBA loans that are held for sale that fail to meet the criteria for SBA sale in the secondary market are transferred to 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 in accordance with the irrevocable option permitted under Accounting Standards Codification (“ASC”) 825-10-25 Financial Instruments. Fair value of these loans is estimated based on the present value of future cash flows 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. When a SBA loan held at fair value becomes nonperforming, the fair value estimate is based on the net liquidation value of collateral or the present value of future cashflows.

Table of Contents

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.

Table of Contents

Non-accrual and Past Due Loans.

Loans are considered past due if the required principal and interest payments have not been received within 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, other than the asset/liability related to the available for sale investment, 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 Income (Loss) Per Share

The calculation of net loss per share follows:

	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018			Six Months Ended June 30, 2019		Six Months Ended June 30, 2018
Basic:
Net income (loss) available to common shareholders	$	1,587,448	$	(152,046	)	$	1,359,941	$	(350,072	)
Average common shares outstanding-basic		826,921		826,921			826,921		826,921
Net income (loss) per share-basic	$	1.92	$	(0.18	)	$	1.64	$	(0.42	)
Diluted:
Average common shares-diluted		826,921		826,921			826,921		826,921
Net income (loss) per share-diluted	$	1.92	$	(0.18	)	$	1.64	$	(0.42	)

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.

Table of Contents

3.Changes in Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive income (loss), which is solely comprised of the unrealized gain or loss of available for sale investment securities:

	Three Months Ended June 30, 2019
	Before tax			Deferred			Net of tax
(in (000’s)	Amount			Taxes			Amount
Beginning balance	$	(44	)	$	10		$	(34	)
Unrealized gain on securities:
Unrealized holding gain arising during period		52			(12	)		40
Other comprehensive income, net		52			(12	)		40
Ending balance	$	8		$	(2	)	$	6

	Three Months Ended June 30, 2018
	Before tax			Deferred			Net of tax
(in (000’s)	Amount			Taxes			Amount
Beginning balance	$	(141	)	$	30		$	(111	)
Unrealized loss on securities:
Unrealized holding loss arising during period		(20	)		4			(16	)
Other comprehensive loss, net		(20	)		4			(16	)
Ending balance	$	(161	)	$	34		$	(127	)

	Six Months Ended June 30, 2019
	Before tax			Deferred			Net of tax
(in (000’s)	Amount			Taxes			Amount
Beginning balance	$	(117	)	$	25		$	(92	)
Unrealized gain on securities:
Unrealized holding gain arising during period		125			(27	)		98
Other comprehensive income, net		125			(27	)		98
Ending balance	$	8		$	(2	)	$	6

	Six Months Ended June 30, 2018
	Before tax			Deferred			Net of tax
(in (000’s)	Amount			Taxes			Amount
Beginning balance	$	(73	)	$	16		$	(57	)
Unrealized loss on securities:
Unrealized holding loss arising during period		(88	)		18			(70	)
Other comprehensive loss, net		(88	)		18			(70	)
Ending balance	$	(161	)	$	34		$	(127	)

4. New Authoritative Accounting Guidance

Adoption of Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) — Targeted Improvements , which, among other things, provides an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of operating right-of-use assets totaling $1,824,729, as well as operating lease liabilities totaling $1,931,239 estimate of credit losses that are expected to occur over the remaining life of a financial asset. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. The related policy elections made by the Company and the additional lease disclosures can be found in Note 8. The cumulative effect adjustment to retained earnings was a reduction of $49,460.

Table of Contents

Effect of Upcoming Accounting Standards

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments, which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is currently evaluating the impact the adoption of the standard will have on the Company’s financial position or results of operations.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements. The Update removes the requirement to disclose the amount of and reasons for transfers between Level I and Level II of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level III fair value measurements. The Update requires disclosure of changes in unrealized gains and losses for the period included in other comprehensive income (loss) for recurring Level III fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level III fair value measurements. This Update is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2020, the FASB issued ASU 2020-4, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, March 2020, to provide temporary optional expedients and exceptions to the U.S. GAAP guidance on contract modifications to ease the financial reporting burdens of the expected market transition from LIBOR to alternative reference rates, such as Secured Overnight Financing Rate. Entities can elect not to apply certain modification accounting requirements to contracts affected by what the guidance calls reference rate reform, if certain criteria are met. An entity that makes this election would not have to remeasure the contracts at the modification date or reassess a previous accounting determination. The amendments in this ASU are effective for all entities upon issuance through December 31, 2022. The Company has identified its LIBOR exposure across product categories and is analyzing the risks associated with the LIBOR transition. However, it is too early to predict whether a new rate index replacement and the adoption of this ASU will have a material impact on the Company’s financial statements.

5. Investment Securities

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

(in 000’s)	June 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-sale:
U.S. Government agency securities	$	2,349	$	-	$	(7	)	$	2,342
Government Sponsored Enterprises residential mortgage-backed securities		2,159		19		(4	)		2,174
	$	4,508	$	19	$	(11	)	$	4,516

	December 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
Available-for-sale:
U.S. Government agency securities	$	2,349	$	-	$	(72	)	$	2,277
Government Sponsored Enterprises residential mortgage-backed securities		2,349		9		(54	)		2,304
	$	4,698	$	9	$	(126	)	$	4,581

The amortized cost and fair value of debt securities classified as available-for-sale by contractual maturity as of June 30, 2019, 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	$	2,349	$	2,342
Government Sponsored Enterprises residential mortgage-backed securities	$	2,159	$	2,174
	$	4,508	$	4,516

Table of Contents

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.

There were no sales of securities during the three and six months ended June 30, 2019 and 2018.

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at June 30, 2019:

(in 000’s)	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		4	$	249	$	(1	)	$	1,243	$	(6	)	$	1,492	$	(7	)

Government Sponsored Enterprises residential mortgage-backed securities		4		190		(1	)		315		(3	)		505		(4	)

Total temporarily impaired investment Securities		8	$	439	$	(2	)	$	1,558	$	(9	)	$	1,997	$	(11	)

The table below indicates the length of time individual securities have been in a continuous unrealized loss position at December 31, 2018:

(in 000’s)	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		7	$	-	$	-		$	2,277	$	(72	)	$	2,277	$	(72	)

Government Sponsored Enterprises residential mortgage-backed securities		14		718		(10	)		1,299		(44	)		2,017		(54	)

Total temporarily impaired investment Securities		21	$	718	$	(10	)	$	3,576	$	(116	)	$	4,294	$	(126	)

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.

As of June 30, 2019, and December 31, 2018, investment securities with a carrying value of $1,184,000 and $3,668,000, respectively, were pledged as collateral to secure public deposits and contingent borrowing at the Federal Reserve Discount Window.

Table of Contents

6. Loans and Allowance for Loan Losses

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

(in 000’s)	June 30, 2019		December 31, 2018
Commercial and industrial	$	1,385	$	1,545
Commercial real estate		15,192		17,038
Consumer real estate		1,120		1,226
Consumer loans other		697		734
Total loans	$	18,394	$	20,543

There was no unearned discount at June 30, 2019 and December 31, 2018.

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 portfolio segments of non-classified loans.

	·	Qualitative Factors Component – The loan portfolio is broken down into portfolio segments, 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, 2019, the Bank did not change any of its qualitative factors in any segment of the loan portfolio; however, the average historical loss factor increased significantly for commercial and industrial loans because of net charge-offs that resulted in an increase in general reserves. Credits to the provision for the six months ended June 30, 2019 were primarily related to decreases in the balance of loans as well as the origination of SBA loans that are accounted for at fair value and are not included in the calculation of the allowance for loan losses. During the six months ended June 30, 2019, there was an increase in the commercial real estate reserve allocation because of the modification of an impaired commercial industrial loan to become secured by real estate. Specific reserves allocated to this loan were reclassified to commercial real estate. 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, 2019
	Commercial and industrial			Commercial real estate			Consumer real estate			Consumer loans Other			Unallocated			Total
Beginning balance	$	85		$	101		$	4		$	-		$	33		$	223
(Credit) provision for loan losses		(32	)		97			(3	)		1			(33	)		30

Charge-offs		(5	)		(21	)		(12	)		(6	)		-			(44	)
Recoveries		1			8			13			5			-			27
Net (charge-offs) recoveries		(4	)		(13	)		1			(1	)		-			(17	)

Ending balance	$	49		$	185		$	2		$	-		$	-		$	236

Table of Contents

(in 000's)	For the Three months ended June 30, 2018
	Commercial and industrial			Commercial real Estate			Consumer real estate			Consumer loans Other			Unallocated			Total
Beginning balance	$	8		$	158		$	6		$	10		$	20		$	202
Provision (credit) for loan losses		4			8			(2	)		-			(5	)		5

Charge-offs		(10	)		(18	)		-			(2	)		-			(30	)
Recoveries		1			2			-			-			-			3
Net charge-offs		(9	)		(16	)		-			(2	)		-			(27	)

Ending balance	$	3		$	150		$	4		$	8		$	15		$	180

(in 000's)	For the Six months ended June 30, 2019
	Commercial and industrial			Commercial real estate			Consumer real estate			Consumer loans Other			Unallocated			Total
Beginning balance	$	102		$	139		$	4		$	-		$	33		$	278
(Credit) provision for loan losses		(37	)		59			(10	)		(1	)		(33	)		(22	)

Charge-offs		(19	)		(21	)		(12	)		(6	)		-			(58	)
Recoveries		3			8			20			7			-			38
Net (charge-offs) recoveries		(16	)		(13	)		8			1			-			(20	)

Ending balance	$	49		$	185		$	2		$	-		$	-		$	236

(in 000's)	For the Six months ended June 30, 2018
	Commercial and industrial			Commercial real estate			Consumer real estate			Consumer loans Other			Unallocated		Total
Beginning balance	$	7		$	155		$	10		$	8		$	-	$	180
Provision (credit) for loan losses		4			11			(6	)		1			15		25

Charge-offs		(10	)		(18	)		-			(7	)		-		(35	)
Recoveries		2			2			-			6			-		10
Net charge-offs		(8	)		(16	)		-			(1	)		-		(25	)

Ending balance	$	3		$	150		$	4		$	8		$	15	$	180

(in 000's)			June 30, 2019
	Commercial and industrial		Commercial real Estate		Consumer real estate		Consumer loans Other		Unallocated		Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$	-	$	99	$	-	$	-	$	-	$	99
Loans collectively evaluated for impairment		49		86		2		-		-		137
	$	49	$	185	$	2	$	-	$	-	$	236

Loans, ending balance:
Loans individually evaluated for impairment	$	76	$	1,141	$	-	$	-	$	-	$	1,217
Loans collectively evaluated for impairment		1,309		14,051		1,120		697		-		17,177
Total	$	1,385	$	15,192	$	1,120	$	697	$	-	$	18,394

Table of Contents

(in 000's)	December 31, 2018
	Commercial and industrial		Commercial real Estate		Consumer real estate		Consumer loans Other		Unallocated		Total

Period-end amount allocated to:

Loans individually evaluated for impairment	$	95	$	44	$	-	$	-	$	-	$	139
Loans collectively evaluated for impairment		7		95		4		-		33		139
	$	102	$	139	$	4	$	-	$	33	$	278

Loans, ending balance:
Loans individually evaluated for impairment	$	289	$	1,148	$	-	$	-	$	-	$	1,437
Loans collectively evaluated for impairment		1,256		15,890		1,226		734		-		19,106
Total	$	1,545	$	17,038	$	1,226	$	734	$	-	$	20,543

Nonperforming and Nonaccrual and Past Due Loans

An age analysis of past due loans, segregated by class of loans, as of June 30, 2019 is as follows:

			Accruing		Nonaccrual
	Loans		Loans 90 or		Loans 90 or
(in 000's)	30-89 Days		More Days		More Days		Total Past		Current
	Past Due		Past Due		Past Due		Due Loans		Loans		Total Loans
Commercial and industrial:
Commercial	$	-	$	-	$	-	$	-	$	1,050	$	1,050
SBA loans		-		-		-		-		-		-
Asset-based		-		-		76		76		259		335
Total Commercial and industrial		-		-		76		76		1,309		1,385

Commercial real estate:
Commercial mortgages		212		-		839		1,051		6,920		7,971
SBA loans		-		-		63		-		172		235
Construction		-		-		-		-		-		-
Religious organizations		289		-		179		468		6,518		6,986
Total Commercial real estate		501		-		1,081		1,519		13,610		15,192

Consumer real estate:
Home equity loans		-		149		250		399		160		559
Home equity lines of credit		-		-		-		-		14		14
1-4 family residential mortgages		-		-		-		-		547		547
Total consumer real estate		-		149		250		399		721		1,120

Total real estate		501		149		1,331		1,918		14,331		16,312

Consumer and other:
Student loans		19		31		-		50		566		616
Other		-		2		-		2		79		81
Total consumer and other		19		33		-		52		645		697

Total loans	$	520	$	182	$	1,407	$	2,109	$	16,285	$	18,394

Table of Contents

An age analysis of past due loans, segregated by class of loans, as of December 31, 2018 is as follows:

			Accruing		Nonaccrual
	Loans		Loans 90 or		Loans 90 or
	30-89 Days		More Days		More Days		Total Past		Current
(in 000's)	Past Due		Past Due		Past Due		Due Loans		Loans		Total Loans
Commercial and industrial:
Commercial	$	-	$	-	$	-	$	-	$	1,055	$	1,055
SBA Loans		-		-		18		18		-		18
Asset-based		-		-		76		76		396		472
Total Commercial and industrial		-		-		94		94		1,451		1,545

Commercial real estate:
Commercial mortgages		-		45		902		947		8,585		9,532
SBA loans		-		-		69		69		179		248
Construction		-		-		-		-		-		-
Religious organizations		-		-		179		179		7,078		7,257
Total Commercial real estate		-		45		1,150		1,195		15,843		17,038

Consumer real estate:
Home equity loans		-		150		281		431		197		628
Home equity lines of credit		-		-		-		-		15		15
1-4 family residential mortgages		-		-		85		85		498		583
Total consumer real estate		-		150		366		516		710		1,226

Total real estate		-		195		647		1,711		16,553		18,264

Consumer and other:
Student loans		14		57		-		71		551		622
Other		1		-		-		1		111		112
Total consumer and other		15		57		-		72		662		734

Total loans	$	15	$	252	$	1,661	$	1,928	$	18,615	$	20,543

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.

Table of Contents

	·	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 as well as loans that are 90 days or more past due and have not been placed on nonaccrual. These credit quality indicators are updated on an ongoing basis. A loan is placed on nonaccrual status as soon as management believes there is doubt as to the ultimate ability to collect interest on a loan.

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

(in 000's)	Commercial Loans June 30, 2019
	Good/ Excellent		Satisfactory		Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial:
Commercial	$	250	$	586	$	-	$	2	$	212	$	-	$	1,050
SBA loans		-		-		-		-		-		-		-
Asset-based		-		259		-		-		-		76		335
		250		845		-		2		212		76		1,385

Commercial real estate:
Commercial mortgages		-		5,551		1,733		-		489		198		7,971
SBA Loans		-		172		-		-		63		-		235
Construction		-		-		-		-		-		-		-
Religious organizations		13		4,587		2,055		-		331		-		6,986
		13		10,310		3,788		-		883		198		15,192

Total commercial loans	$	263	$	11,155	$	3,788	$	2	$	1,095	$	274	$	16,577

	Residential Mortgage and Consumer Loans June 30, 2019
	Performing		Nonperforming		Total

Consumer Real Estate:
Home equity	$	160	$	399	$	559
Home equity line of credit		14		-		14
1-4 family residential mortgages		547		-		547
		721		399		1,120

Consumer Other:
Student loans		585		31		616
Other		81		-		81
		666		31		697

Total consumer loans	$	1,387	$	430	$	1,817

Table of Contents

(In 000's)	Commercial Loans, December 31, 2018
	Good/ Excellent		Satisfactory		Pass		Special Mention		Substandard		Doubtful		Total

Commercial and industrial:
Commercial	$	250	$	592	$	-	$	-	$	213	$	-	$	1,055
SBA loans		-		-		-		-		-		-		18
Asset-based		-		272		124		-		18		76		472
		250		964		124		-		231		76		1,545

Commercial real estate:
Commercial mortgages		-		5,814		2,759		52		703		204		9,532
SBA Loans		-		179		-		-		69		-		248
Construction		-		-		-		-		-		-		-
Religious organizations		24		5,041		2,013		-		180		-		7,258
		24		11,034		4,772		52		952		204		17,038

Total commercial loans	$	274	$	11,898	$	4,896	$	52	$	1,183	$	280	$	18,583

	Residential Mortgage and Consumer Loans December 31, 2018
	Performing		Nonperforming		Total

Consumer Real Estate:
Home equity	$	197	$	431	$	628
Home equity line of credit		15		-		15
1-4 family residential mortgages		498		85		583
		710		516		1,226

Consumer Other:
Student loans		565		57		622
Other		112		-		112
		677		57		734

Total consumer loans	$	1,387	$	573	$	1,960

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 for the six months ended June 30, 2019.

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

Table of Contents

Impaired loans as of June 30, 2019 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	$	-	$	-	$	-	$	-	$	-
SBA loans		-		-		-		-		-
Asset-based		76		-		76		76		-
Total commercial and industrial		76		-		76		76		-

Commercial real estate:
Commercial mortgages		899		533		366		899		99
SBA Loans		63		63		-		63		-
Religious organizations		179		179		-		179		-
Total commercial real estate		1,141		775		366		1,141		99

Total loans	$	1,217	$	775	$	442	$	1,217	$	99

Impaired loans as of December 31, 2018 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	$	213	$	-	$	213	$	213	$	81
SBA		-		-		-		-		-
Asset based		76		-		76		76		14
Total Commercial and industrial		289		-		289		289		95

Commercial real estate:
Commercial mortgages		898		739		159		898		13
SBA Loans		71		71		-		71		-
Religious Organizations		179		-		179		179		31
Total Commercial real estate		1,148		810		338		1,148		44
Total loans	$	1,437	$	810	$	627	$	1,437	$	139

Table of Contents

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, 2019				Three Months Ended June 30, 2018
	Average		Interest recognized		Average		Interest recognized
	Recorded		on impaired		Recorded		on impaired
	Investment		Loans		Investment		Loans

Commercial and industrial:
Commercial	$	-	$	-	$	-	$	-
SBA loans		-		-		-		-
Asset-based	76			-		76		-
Total commercial and industrial		76				76		-

Commercial real estate:
Commercial mortgages		921		2		958		-
SBA loans		64		-		76		-
Religious organizations		179		-		182		-
Total commercial real estate		1,164		2		1,216		-

Total loans	$	1,240	$	2	$	1,292	$	-

(In 000's)	Six Months Ended June 30, 2019				Six Months Ended June 30, 2018
	Average		Interest recognized		Average		Interest recognized
	Recorded		on impaired		Recorded		on impaired
	Investment		Loans		Investment		Loans

Commercial and industrial:
Commercial	$	-	$	-	$	-	$	-
SBA loans		-		-				-
Asset-based		76		-		76		-
Total commercial and industrial		76		-		76		-

Commercial real estate:
Commercial mortgages		921		5		951		-
SBA loans		64		-		77		-
Religious organizations		179		-		184		-
Total commercial real estate		1,164		5		1,212		-

Total loans	$	1,240	$	5	$	1,288	$	-

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 not 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, 2019 and December 31, 2018.

Table of Contents

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, 2019		June 30, 2018			June 30, 2019			June 30, 2018

Beginning balance	$	236	$	569		$	392		$	626
Additions, transfers from loans		-		-			-			-
Sales		-		(162	)		(156	)		(219	)
		236		407			236			407
Write-ups (downs)		-		(5	)		-			(5	)
Ending Balance	$	236	$	402		$	236		$	402

There were no loans in the process of foreclosure at June 30, 2019 and December 31, 2018.

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

(in 000's)	June 30, 2019		December 31, 2018
Commercial real estate	$	161	$	168
Residential real estate		75		224
Total	$	236	$	392

8. Lease Commitments

Due to the adoption of ASU 2016-02, Leases (Topic 842) , the Company completed a comprehensive review and analysis of all its property contracts. As a result of this review, it was determined that the Company leases two office locations and office equipment under operating leases. Several assumptions and judgments were made when applying the requirements of Topic 842 to the Company’s existing lease commitments, including the allocation of consideration in the contracts between lease and non-lease components, determination of the lease term, and determination of the discount rate used in calculating the present value of the lease payments.

The Company has elected to account for the variable non-lease components, such as common area maintenance charges, utilities, real estate taxes, and insurance, separately from the lease component. Such variable non-lease components are reported in net occupancy expense on the Consolidated Statements of Operations when paid. These variable non-lease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. The following table presents the lease cost associated with both operating and financing leases for the three-month period ending March 31, 2019 (in thousands). Total operating rent expense recorded during the three-month period ended June 30, 2019 and 2018 was $120,000 and $119,000, respectively. Total operating rent expense recorded during the six-month period ended June 30, 2019 and 2018 was $251,000 and $236,000, respectively.

Certain of the Company’s leases contain options to renew the lease after the initial term. Management considers the Company’s historical pattern of exercising renewal options on leases and the positive performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease as of January 1, 2019. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at June 30, 2019.

	Operating
Weighted-average remaining term (years)		4.87
Weighted-average discount rate		3.50	%

Table of Contents

The following table presents the undiscounted cash flows due related to operating and financing leases as of June 30, 2019, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets.

	Operating
Undiscounted cash flows due:
Within 1 year	$	433
After 1 year but within 2 years		438
After 2 years but within 3 years		447
After 3 years but within 4 years		455
After 4 years but within 5 years		128
After 5 years		155
Total undiscounted cash flows		2,056
Discount on cash flows		(215	)
Total lease liabilities	$	1,841

Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. As of June 30, 2019, the Company had one lease for its Mount Airy branch that had a term of twelve months or less that did not include a purchase option. This lease is excluded from total lease liabilities.

9. 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

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.”

Table of Contents

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. 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.

Loans Held for Sale. Fair values are estimated by using actual indicative 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.

Servicing Assets. Fair values for servicing assets related to 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, 2019		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	$	2,342	$	-	$	2,342	$	-
Government Sponsored Enterprises residential mortgage-backed securities		2,174		-		2,174		-
Total	$	4,516	$	-	$	4,516	$	-
Loans held for sale	$	7,512	$	-	$	7,512	$	-
Loans held at fair value	$	6,116	$	-	$	-	$	6,116
Servicing asset	$	297	$	-	$	-	$	297

(in 000’s)	Fair Value Measurements at Reporting Date Using:
	Assets Measured at Fair Value at December 31, 2018		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	$	2,277	$	-	$	2,277	$	-
Government Sponsored Enterprises residential mortgage-backed securities		2,304		-		2,304		-
Total	$	4,581	$	-	$	4,581	$	-
Loans held for sale	$	10,073	$	-	$	10,073	$	-
Loans held at fair value	$	5,420	$	-	$	-	$	5,420
Servicing asset	$	313	$	-	$	-	$	313

Table of Contents

The fair value of the Bank’s AFS securities portfolio was approximately $4,516,000 and $4,581,000 at June 30, 2019 and December 31, 2018, 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, 2019 and December 31, 2018.

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

UNITED BANCSHARES INC /PA 10-Q