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| Pennsylvania                                                                                                   |   | 23-2802415                          |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------|
| (State of other jurisdiction ofincorporation or organization)                                                  |   | (I.R.S. EmployerIdentification No.) |
|                                                                                                           |   |                                |
| The Graham Building, 30 South 15th Street,     Suite 1200, Philadelphia, Pennsylvania |   | 19102                               |
| (Address of principal executive offices)                                                                       |   | (Zip Code)                          |

|                      |                                           |
|---------------------------|------------------------------------------------|
| Title of each class  | Name of each exchange onwhich registered  |
| NONE                      | NONE                                           |

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|   | Document | Parts Into Which Incorporated |
|--------|----------|-------------------------------|
|   | None     |                          |

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FORM 10-K

| Item No.                                                                |                                                                                                               | Page   |
|-------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                                                                    |                                                                                                               |   |
| PART I                                                                  |
|                                                                    |                                                                                                               |   |
| 1.                                                                      | Business                                                                                                           | 4      |
|                                                                    |                                                                                                               |   |
| 1A.                                                                     | Risk Factors                                                                                                       | 15     |
|                                                                    |                                                                                                               |   |
| 1B.                                                                     | Unresolved Staff Comments                                                                                          | 19     |
|                                                                    |                                                                                                               |   |
| 2.                                                                      | Properties                                                                                                         | 19     |
|                                                                    |                                                                                                               |   |
| 3.                                                                      | Legal Proceedings                                                                                                  | 20     |
|                                                                    |                                                                                                               |   |
| 4                                                                       | Mine Safety Disclosures                                                                                            | 20     |
| PART II                                                                 |
|                                                                    |                                                                                                               |   |
| 5.                                                                      | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 20     |
|                                                                    |                                                                                                               |   |
| 6.                                                                      | Selected Financial Data                                                                                            | 21     |
|                                                                    |                                                                                                               |   |
| 7.                                                                      | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 21     |
|                                                                    |                                                                                                               |   |
| 7A.                                                                     | Quantitative and Qualitative Disclosures about Market Risk                                                         | 40     |
|                                                                    |                                                                                                               |   |
| 8.                                                                      | Financial Statements and Supplementary Data                                                                        | 40     |
|                                                                    |                                                                                                               |   |
| 9.                                                                      | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure                               | 40     |
|                                                                    |                                                                                                               |   |
| 9A.                                                                     | Controls and Procedures                                                                                            | 40     |
|                                                                    |                                                                                                               |   |
| 9B.                                                                     | Other Information                                                                                                  | 41     |
| PART III                                                                |
|                                                                    |                                                                                                               |   |
| 10.                                                                     | Directors, Executive Officers, and Corporate Governance                                                            | 42     |
|                                                                    |                                                                                                               |   |
| 11.                                                                     | Executive Compensation                                                                                             | 49     |
|                                                                    |                                                                                                               |   |
| 12.                                                                     | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 52     |
|                                                                    |                                                                                                               |   |
| 13.                                                                     | Certain Relationships and Related Transactions, and Director Independence                                          | 53     |
|                                                                    |                                                                                                               |   |
| 14.                                                                     | Principal Accountant Fees and Services                                                                             | 54     |
| PART IV                                                                 |
|                                                                    |                                                                                                               |   |
| 15.                                                                     | Exhibits and Financial Statement Schedules                                                                         | 55     |
|                                                                    |                                                                                                               |   |
| UNLESS OTHERWISE INDICATED, ALL INFORMATION IS AS OF FEBRUARY 24, 2014. |                                                                                                               |

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ITEM 1 — BUSINESS

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|   | · | Banks under $15 billion in assets can continue to count trust-preferred securities—known as TRuPS—as Tier 1 capital. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | Banks can continue to risk-weight residential mortgages as they had under the original Basel I regime. The final rule abandons a proposal to institute a complicated formula of risk weights for residential mortgages. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | All but the largest banks (above $250 billion in assets) can keep available-for-sale securities on the balance sheet without having to adjust regulatory capital levels based on the current market value of those securities. Banks have a one-time opportunity to opt-out on their first regulatory call report after Jan. 1, 2015 from what’s called the accumulated other comprehensive income (AOCI) filter. If they miss doing so, they can’t opt-out later. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | a new common equity Tier 1 capital ratio of 4.5%; |
|--------|-----|---------------------------------------------------|

|   | (ii) | a Tier 1 capital ratio of 6% (increased from 4%); |
|--------|------|---------------------------------------------------|

|   | (iii) | a total capital ratio of 8% (unchanged from current rules); and |
|--------|-------|-----------------------------------------------------------------|

|   | (iv) | a Tier 1 leverage ratio of 4% for all institutions. |
|--------|------|-----------------------------------------------------|

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|   | (i) | a common equity Tier 1 capital ratio of 7.0%; |
|--------|-----|-----------------------------------------------|

|   | (ii) | a Tier 1 capital ratio of 8.5%; and |
|--------|------|-------------------------------------|

|   | (iii) | a total capital ratio of 10.5%. |
|--------|-------|---------------------------------|

|   | (i) | a new common equity Tier 1 capital ratio of 6.5%; |
|--------|-----|---------------------------------------------------|

|   | (ii) | a Tier 1 capital ratio of 8% (increased from 6%); |
|--------|------|---------------------------------------------------|

|   | (iii) | a total capital ratio of 10% (unchanged from current rules); and |
|--------|-------|------------------------------------------------------------------|

|   | (iv) | a Tier 1 leverage ratio of 5% (increased from 4%). |
|--------|------|----------------------------------------------------|

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|   | · | Centralize responsibility for consumer financial protection by creating a new agency, the Bureau of Consumer Financial Protection, responsible for implementing, examining, and enforcing compliance with federal consumer financial laws, but depository institutions such as the bank with less than $10 billion in assets will continue to be examined and supervised by its current regulators. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Create the Financial Stability Oversight Council that will recommend to the Federal Reserve increasingly strict rules for capital, leverage, liquidity, risk management, and other requirements as companies grow in size and complexity. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide mortgage reform provisions regarding a customer’s ability to repay, restricting variable-rate lending by requiring that the ability to repay variable-rate loans be determined by using the maximum rate that will apply during the first five years of a variable-rate loan term, and making more loans subject to provisions for higher cost loans and new disclosures. In addition, certain compensation for mortgage brokers based on certain loan terms will be restricted. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Require financial institutions to make a reasonable and good faith determination that borrowers have the ability to repay loans for which they apply. If a financial institution fails to make such a determination, a borrower can assert this failure as a defense to foreclosure. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Require financial institutions to retain a specified percentage (5% or more) of certain non-traditional mortgage loans and other assets in the event that they seek to securitize such assets. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Change the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminate the ceiling on the size of the Deposit Insurance Fund (“DIF”), and increase the floor on the size of the DIF, which generally will result in a decrease in the level of assessments for institutions with assets less than $10 billion. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Make permanent the $250,000 limit for federal deposit insurance and provide unlimited federal deposit insurance for noninterest-bearing demand transaction accounts at all insured depository institutions. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Implement corporate governance revisions, including with regard to executive compensation, say on pay votes, proxy access by shareholders, and clawback policies which apply to all public companies, not just financial institutions. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Repeal the federal prohibitions on the payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transactions and other accounts. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Amend the Electronic Funds Transfer Act (EFTA) to, among other things, give the Federal Reserve the authority to establish rules regarding interchange fees charged for electronic debit transactions by payment card issuers having assets over $10 billion and to enforce a new statutory requirement that such fees be reasonable and proportional to the actual cost of a transaction to the issuer. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Apply the same leverage and risk based capital requirements that apply to insured depository institutions and holding companies. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

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| Requirement                                                                                                                                                                                                                                                                                                                                                 | Status                                                                                                                                                                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Increase participation of the Bank’s board of directors in the Bank’s affairs by having the board assume full responsibility for approving the Bank’s policies and objectives and for supervising the Bank’s management;                                                                                                            | Board participation has been improved with attendance at board and committee meetings.                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Have and retain qualified management, and notify the FDIC and the Department of any changes in the Bank’s board of directors or senior executive officers;                                                                                                                                                                                            | A management assessment was completed in June 2012 in conjunction with the required management review and written management plan with benchmarks for recommended enhancements.                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Retain a bank consultant acceptable to the FDIC and the Department to develop a written analysis and assessment of the Bank’s management needs and thereafter formulate a written management plan;                                                                                                                                                    | An engagement letter from a qualified consultant was received and approved by the Bank’s regulators.  Upon acceptance, the review commenced in May 2012 and was completed in June 2012.  A written management plan was submitted based on the results of the review. |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Formulate and implement written profit and budget plans for each year during which the orders are in effect;                                                                                                                                                                                                                                                | A three year profit and budget plan was prepared and submitted to regulators as required.                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Develop and implement a strategic plan for each year during which the orders are in effect, to be revised annually;                                                                                                                                                                                                                                         | A comprehensive strategic plan was prepared and submitted to regulators as required.                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Develop a written capital plan detailing the manner in which the Bank will meet and maintain a ratio of Tier 1 capital to total assets (“leverage ratio”) of at least 8.5% and a ratio of qualifying total capital to risk-weighted assets (total risk-based capital ratio) of at least 12.5%, within a reasonable but unspecified time period; | A capital plan with quarterly benchmarks was prepared and submitted to regulators as required.                                                                                                                                                                                                 |
| Formulate a written plan to reduce the Bank’s risk positions in each asset or loan in excess of $100,000 classified as “Doubtful” or “Substandard” at its regulatory examination;                                                                                                                                             | A classified asset reduction plan with quarterly benchmarks measured against capital was prepared and submitted as required.                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Eliminate all assets classified as “Loss” at its current regulatory examination;                                                                                                                                                                                                                                                                | All assets classified as “Loss” have been eliminated.                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Revise the Bank’s loan policy to establish and monitor procedures for adherence to the loan policy and to eliminate credit administration and underwriting deficiencies identified at its current regulatory examination;                                                                                                                             | The Bank’s loan policy has been revised to include enhanced monitoring procedures and submitted to regulators as required.                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Develop a comprehensive policy and methodology for determining the allowance for loan and lease losses;                                                                                                                                                                                                                                                     | The ALLL policy and methodology for determining the allowance for loan losses were submitted to regulators as required.                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                           |
| Develop an interest rate risk policy and procedures to identify, measure, monitor and control the nature and amount of interest rate risk the Bank takes;                                                                                                                                                                                                   | The Bank’s interest rate risk policy and procedures were submitted to regulators as required.                                                                                                                                                                                            |

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| Requirement                                                                                                                                               | Status                                                                                                                                                            |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |                                                                                                                                                              |
| Refrain from accepting any brokered deposits;                                                                                                             | The Bank did not accept brokered deposits.                                                                                                                        |
|                                                                                                                                                      |                                                                                                                                                              |
| Refrain from paying cash dividends without prior approval of the FDIC and the Department;                                                                 | The Bank did not pay cash dividends.                                                                                                                              |
|                                                                                                                                                      |                                                                                                                                                              |
| Establish an oversight committee of the board of directors of the Bank with the responsibility to ensure the Bank’s compliance with the orders, and | An oversight committee consisting of three outside directors and one inside director was established and meets periodically to ensure compliance with the orders. |
|                                                                                                                                                      |                                                                                                                                                              |
| Prepare and submit quarterly reports to the FDIC and the Department detailing the actions taken to secure compliance with the orders.                     | Quarterly reports have been prepared and submitted as required.                                                                                                   |

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ITEM 1A — RISK FACTORS

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|   | · | our ability to originate loans and obtain deposits; |
|--------|--------|-----------------------------------------------------|

|   | · | the fair value of our financial assets and liabilities; and |
|--------|--------|-------------------------------------------------------------|

|   | · | the average duration of our investment securities portfolio. |
|--------|--------|--------------------------------------------------------------|

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|   | o | New developments in the banking industry |
|--------|---|------------------------------------------|

|   | o | Variations in quarterly or annual operating results |
|--------|---|-----------------------------------------------------|

|   | o | Revision of or the issuance of additional regulatory actions affecting UBS or the Bank |
|--------|---|----------------------------------------------------------------------------------------|

|   | o | Litigation involving UBS or the Bank |
|--------|---|--------------------------------------|

|   | o | Changes in accounting policies or procedures |
|--------|---|----------------------------------------------|

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ITEM B — UNRESOLVED STAFF COMMENTS

ITEM 2 — PROPERTIES

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ITEM 3 — LEGAL PROCEEDINGS

ITEM 4 – MINE SAFETY DISCLOSURES

PART II

ITEM 5 — MARKET FOR THE REGISTRANT’S COMMON EQUITY,

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ITEM 6 — SELECTED FINANCIAL DATA

|                                            | Year ended |
|-------------------------------------------------|------------|
| (Dollars in thousands, except per share data)   | 2013       | 2012 | 2011 | 2010 | 2009 |     2008 |
|                                            |       |   |   |   |   |   |
| Net interest income                             | $2,815     | $2,946 | $3,068 | $3,094 | $3,124 | $3,291 |
| Provision for loan losses                       | 75         | 453 | 170 | 747 |    235 |  368 |
| Noninterest income                              | 1,407      | 1,525 | 1,071 | 1,465 | 1,313 | 1,209 |
| Noninterest expense                             | 4,816      | 5,034 | 5,000 | 5,040 | 4,747 | 4,785 |
| Net loss                                        | (669)      | (1,016) | (1,031) | (1,228) | (545) | (653) |
| Net loss per share – basic                | (0.63)     | (0.95) | (0.97) | (1.15) | (0.51) | (0.61) |
| Net loss income per share – fully diluted | (0.63)     | (0.95) | (0.97) | (1.15) | (0.51) | (0.61) |
|                                            |       |   |   |   |   |   |
| Balance sheet totals:                           |       |   |   |   |   |   |
| Total assets                                    | $60,751    | $65,616 | $77,017 | $73,966 | $68,318 | $69,435 |
| Net loans                                       | 41,871     | 40,298 | 40,635 |   44,686 |  46,860 | 48,077 |
| Investment securities                           | 9,580      | 12,922 | 18,490 |   16,477 |  11,834 | 12,562 |
| Deposits                                        | 57,110     | 60,977 | 71,300 |   67,211 | 60,307 | 60,904 |
| Shareholders’ equity                      | 3,210      | 4,240 | 5,261 |     6,297 |  7,531 | 8,050 |
| Ratios:                                         |       |   |   |   |   |   |
| Tier 1 Leverage ratio                           | 5.67%      | 6.00% | 6.29% | 7.63% |   10.08% | 10.41% |
| Tangible common equity ratio                    | 1.04%      | 2.52% | 3.48% | 5.02% | 7.25% | 7.87% |
| Equity to assets ratio                          | 6.50%      | 7.37% | 8.05% | 8.51% | 11.02% | 11.59% |
| Return on assets                                | (1.06)%    | (1.44)% | (1.32)% | (1.68)% | (0.79)% | (0.87)% |
| Return on equity                                | (16.26)%   | (19.53)% | (18.92)% | (17.49)% | (7.66)% | (8.21)% |

ITEM 7 — MANAGEMENT’S DISCUSSION AND ANALYSIS

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

|   | · | External equity investments—Potential investors will be sought in 2014 to generate a minimum investment of $1 million. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------|

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|   | 1. | Review and re-negotiation of significant contracts (i.e. data processing, credit card, EFT services, etc.)-The Bank’s EFT contract expires in August 2014.  At expiration, EFT services will be consolidated with the Bank’s core vendor to achieve operational and cost efficiencies. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Sale and/or other disposition of other real estate properties to reduce ongoing carrying costs— The Bank has gradually reduced the level of other real estate and related expenses. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                        | 2013    | 2012            | 2011                    |
|---------------------------------------------|---------|-----------------|-------------------------|
|                                        | Average |            | Yield/                  | Average |   | Yield/ | Average | Average | Yield/ |
| (Dollars in thousands)                      | Balance | Interest        | Rate                    | Balance | Interest | Rate | balance | Balance | rate |
| Assets:                                     |    |            |                    |   |   |   |   |   |   |
| Interest-earning assets:                    |    |            |                    |   |   |   |   |   |   |
| Loans                                       | $42,201 | $2,610          | 6.18%                   | $41,732 | $2,628 | 6.30% | $42,238 | $2,666 | 6.31% |
| Investment securities                       | 10,903  | 274             | 2.51                    | 15,464 | 439 | 2.84 | 18,329 | 616 | 3.36 |
| Interest bearing balances with other banks  | 307     | 1               | 0.33                    | 305 | 1 | 0.33 | 305 | 1 | 0.33 |
| Federal funds sold                          | 6,768   | 14              | 0.21                    | 8,907 | 17 | 0.19 | 10,958 | 20 | 0.18 |
| Total interest-earning assets               | 60,179  | 2,899           | 4.82                    | 66,408 | 3,085 | 4.65 | 71,830 | 3,303 | 4.60 |
| Noninterest-earning assets:                 |    |            |                    |   |   |   |   |   |   |
| Cash and due from banks                     | 1,826   |            |                    | 1,743 |   |   | 1,687 |   |   |
| Premises and equipment, net                 | 621     |            |                    | 921 |   |   | 1,079 |   |   |
| Other assets                                | 1,479   |            |                    | 2,351 |   |   | 3,082 |   |   |
| Less allowance for loan losses              | (870)   |            |                    | (884) |   |   | (814) |   |   |
| Total                                       | $63,235 |            |                    | $70,539 |   |   | $76,864 |   |   |
| Liabilities and shareholders’ equity: |    |            |                    |   |   |   |   |   |   |
| Interest-bearing liabilities:               |    |            |                    |   |   |   |   |   |   |
| Demand deposits                             | $14,302 | $  28 |    0.20% | $16,196 | $  49 | 0.30% | $15,948 | 73 | 0.46% |
| Savings deposits                            | 13,604  | 7               | 0.05                    | 14,397 | 7 | 0.05 | 14,236 | 11 | 0.08 |
| Time deposits                               | 16,078  | 49              | 0.30                    | 19,417 | 83 | 0.43 | 26,019 | 151 | 0.58 |
| Total interest-bearing liabilities          | 43,984  | 84              | 0.19                    | 50,010 | 139 | 0.28 | 56,203 | 235 | 0.42 |
| Noninterest-bearing liabilities:            |    |            |                    |   |   |   |   |   |   |
| Demand deposits                             | 15,047  |            |                    | 15,327 |   |   | 14,458 |   |   |
| Other                                       | 91      |            |                    | - |   |   | - |   |   |
| Shareholders’ equity                  | 4,113   |            |                    | 5,202 |   |   | 6,203 |   |   |
| Total                                       | $63,235 |            |                    | $70,539 |   |   | $76,864 |   |   |
| Net interest income                         |    | $ 2,815         |                    |   | $2,946 |   |   | $3,068 |   |
| Spread                                      |    |            | 4.63%                   |   |   | 4.37% |   |   | 4.18% |
| Net yield on interest-earning assets        |    |            | 4.68%                   |   |   | 4.45% |   |   | 4.27% |

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|                                       | 2013 compared to 2012      | 2012 compared to 2011      |
|--------------------------------------------|----------------------------|----------------------------|
|                                       | Increase (decrease) due to | Increase (decrease) due to |
| (Dollars in thousands)                     | Volume                     | Rate                       | Net | Volume | Rate | Net |
| Interest earned on:                        |                       |                       |   |   |   |   |
| Loans                                      | $  29            | $ (47)                     | $ (18) | $(32) | $(6) | $(38) |
| Investment securities                      | (140)                      | (25)                       | (165) |         (108) | (69) | (177) |
| Interest-bearing deposits with other banks | -                          | -                          | - | - | - | - |
|     Federal funds sold | (4)                        | 1                          | (3) | (4) | 1 | (3) |
| Total Interest-earning assets              | (115)                      | (71)                       | (186) | (144) | (74) | (218) |
| Interest paid on:                          |                       |                       |   |   |   |   |
| Demand deposits                            | (5)                        | (16)                       | (21) | 1 | (25) | (24) |
| Savings deposits                           | -                          | -                          | - | - | (4) | (4) |
| Time deposits                              | (16)                       | (18)                       | (34) | (43) | (25) | (68) |
| Total interest-bearing liabilities         | (21)                       | (34)                       | (55) | (42) | (54) | (96) |
| Net interest income                        | $ (94)                     | $ (37)                     | $(131) | $(102) | $(20) | $ (122) |

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|                   |                                       |    | 2013      | 2012                     |
|------------------------|--------------------------------------------|---------|-----------|--------------------------|
|                   |                                       |    |      | Increase                 |   |   | Increase |   |
|                   |                                       |    | Average   | (decrease)               |   | Average | (decrease) |   |
| (Dollars in thousands) |                                       | Balance | amount    | Percent                  | balance | Amount | Percent |
| Funding uses:          |                                       |    |      |                     |   |   |   |
|                   | Loans                                      |    | $42,201   | $   469   | 1.12% | $41,732 | $(506) | (1.20)% |
|                   | Investment securities                      |    | 10,903    | (4,561)                  | (29.49) | 15,464 | (2,867) | (18.54) |
|                   | Interest-bearing balances with other banks |    |  307 |  2                  |  0.66 |  305 |  - |  - |
|                   | Federal funds sold                         |    | 6,768     | (2,139)                  | (24.01) | 8,907 | (2,051) | (18.72) |
|                   | Total uses                                 |    | $60,179   | $(6,229)                 |   | $66,408 | $(5,422) |   |
| Funding sources:       |                                       |    |      |                     |   |   |   |
|                   | Demand deposits:                           |    |      |                     |   |   |   |   |
|                   | Noninterest-bearing                        |    | $15,047   | $   (280) |      (1.86)% | $15,327 | $  869 | 6.01% |
|                   | Interest-bearing                           |    | 14,302    | (1,894)                  | (11.69) | 16,196 | 248 | 1.56 |
|                   | Savings deposits                           |    | 13,604    | (793)                    | (5.51) | 14,397 | 161 | 1.13 |
|                   | Time deposits                              |    | 16,078    | (3,339)                  | (17.20) | 19,417 | (6,602) | (25.37) |
|                   | Total sources                              |    | $59,031   | $(6,306)                 |   | $65,337 | $(5,324) |   |

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|                        | Within one year      | After one butwithin five years | After five butwithin ten years | After ten years |                                                          |
|-----------------------------|----------------------|--------------------------------|--------------------------------|-----------------|---------------------------------------------------------------|
| (Dollars in thousands)      | Amount               | Yield                          | Amount                         | Yield           | Amount                                                        | Yield | Amount | Yield | Total |
| Other government securities | $   - |  -%                       | $   -           | -%              | $3,802                                                        | 2.50% | $        - | -    % | $3,802 |
| Money market funds          |                 |                           | -                              |            |                                                          |   | - |   | 129 |
| Mortgage-backed securities  | -                    |                           | -                              |            |           - |   | - |   | 5,649 |
| Total securities            | $   - |                           | $   -           |            | $3,802                                                        |   | $       - |   | $9,580 |
| Average maturity            |                 |                           |                           |            |                                                          |   |   |   | 4.7 years |

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|                                                                          | December 31, |
|-------------------------------------------------------------------------------|--------------|
| (Dollars in thousands)                                                        |   2013  |   2012 | 2011 | 2010 | 2009 |
| Commercial and industrial                                                     | $4,310       | $3,734 | $3,730 | $5,729 | $4,353 |
| Commercial real estate                                                        | 32,962       | 31,381 | 30,197 | 30,738 | 32,294 |
| Residential mortgage loans                                                    | 2,709        | 3,140 | 3,356 | 4,432 | 5,313 |
| Consumer loans                                                                | 2,730        | 3,247 | 4,219 | 4,713 | 5,626 |
|            Total loans | $42,711      | $41,502 | $41,502 | $45,612 | $47,587 |
|                                                                          |         |   |   |   |   |

| Table 6—Loan Maturities and Repricing                                         |
|-------------------------------------------------------------------------------------|
|                                                                                |   |   |   |   |
|                                                                                |   |   |   |   |
| (Dollars in thousands)                                                              | Withinone year | After one butwithin five years | Afterfive years |  Total |
| Commercial and industrial                                                           | $2,292 | $1,542 | $ 476 | $4,310 |
| Commercial real estate                                                              | 9,723 | 17,109 | 6,130 | 32,962 |
| Residential mortgage loans                                                          | 1,671 | 72 | 966 | 2,709 |
| Consumer loans                                                                      | 166 | 130 | 2,434 | 2,730 |
|             Total loans | $13,852 | $18,853 | $10,006 | $42,711 |
| Loans maturing after one year with:                                                 |   |   |   |   |
| Fixed interest rates                                                                | $26,552 |   |   |   |
| Variable interest rates                                                             | $2,307 |   |   |   |

| (Dollars in thousands)                                                  | 2013      | 2012      | 2011      | 2010   | 2009   |
|-------------------------------------------------------------------------|-----------|-----------|-----------|--------|--------|
|                                                                    |      |      |      |   |   |
| Nonaccrual loans                                                        | $2,190    | $2,584    | $2,132    | $2,781 | $3,783 |
| Impaired loans                                                          | 1,882     | 2,344     | 1,687     | 2,516  | 3,553  |
| Interest income on nonaccrual loans included in net income for the year |  12  |  39  |  144 | 110    | 219    |
| Interest income that would have been recorded under original terms      |  144 |  169 |  165 | 186    | 195    |
| Interest income recognized on impaired loans                            | 3         | 39        | 5         | 63     | 34     |
| Loans past due 90 days and still accruing                               | 730       | 211       | 471       | 205    | 776    |
| Troubled Debt Restructured loans                                        | -         | -         | -         | -      | -      |

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

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

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

|                                | 2013   | 2012                             | 2011   | 2010                              | 2009   |
|-------------------------------------|--------|----------------------------------|--------|-----------------------------------|--------|
|                                |   | Percentof loansin eachcategoryto |   | Percentof loansin eachcategory to |   | Percentof loansin eachcategory to |   | Percentof loansin eachcategory to |   | Percentof loansin eachcategory to |
|                                | Amount | Total loans                      | Amount | total loans                       | Amount | total loans | Amount | total loans | Amount | total loans |
| (Dollars in thousands)              |   |                             |   |                              |   |   |   |   |   |   |
|                                |   |                             |   |                              |   |   |   |   |   |   |
| Commercial and industrial           | $483   | 10.09%                           | $835   | 9.00%                             | $387   | 8.99% | $301 | 12.56% | $324 | 8.54% |
| Commercial real estate              | 280    | 77.18                            | 364    | 75.62                             | 412    | 72.76 | 553 | 67.39 | 298 | 68.47 |
| Consumer real estate                | 59     | 9.15                             | -      | 11.12                             | 40     | 13.46 | 36 | 10.33 | 38 | 11.17 |
| Consumer and other  loans | 17     | 3.58                             | 5      | 4.26                              | 28     | 4.79 | 36 | 9.72 | 65 | 11.82 |
| Unallocated                         | -      | -                                | -      | -                                 | -      | - | - | - | 2 | - |
|                                | $839   | 100.00%                          | $1,204 | 100.00%                           | $867   | 100.00% | $926 | 100.00% | $727 | 100.00% |

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|                                                  | Year ended December 31, |
|-------------------------------------------------------|-------------------------|
| (Dollars in thousands)                                | 2013                    | 2012 | 2011 | 2010 | 2009 |
| Balance at January 1                                  | $1,204                  | $867 | $926 | $727 | $587 |
|                                                  |                    |   |   |   |   |
| Charge-offs:                                          |                    |   |   |   |   |
| Commercial and industrial                             | (524)                   | (56) | (65) | (189) | (22) |
| Commercial real estate                                | -                       | - | (150) | (227) | (62) |
| Consumer real estate                                  | (5)                     | (80) | (4) | (8) | - |
| Consumer and other loans                              | (10)                    | (21) | (46) | (177) | (57) |
|                                                  | (539)                   | (157) | (265) | (601) | (141) |
| Recoveries:                                           |                    |   |   |   |   |
| Commercial loans                                      | 3                       | - | 10 | 7 | 2 |
| Commercial real estate                                | 78                      | 8 | - | 1 | - |
| Consumer real estate                                  | 9                       | 17 | 6 |   |   |
| Consumer and other loans                              | 9                       | 16 | 21 | 45 | 44 |
|                                                  | 99                      | 41 | 37 | 53 | 46 |
| Net charge-offs                                       | (440)                   | (116) | (228) | (548) | (95) |
| Provisions charged to operations                      | 75                      | 453 | 170 | 747 | 235 |
|                                                  |                    |   |   |   |   |
| Balance at December 31                                | $839                    | $1,204 | $867 | $926 | $727 |
| Ratio of net charge-offs to average loans outstanding |  1.04%             |  0.28% |  0.54% |  1.17% |  0.20% |
|                                                  |                    |   |   |   |   |

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|                                | 2013    | 2012   | 2011    |
|-------------------------------------|---------|--------|---------|
| (Dollars in thousands)              | Amount  | Rate   | Amount  | Rate | Amount | Rate |
|                                |    |   |    |   |   |   |
| Noninterest-bearing demand deposits | $15,047 | -%     | $15,327 | -% | $14,458 | -% |
| Interest-bearing demand deposits    | 14,302  | 0.20   | 16,196  | 0.30 | 15,948 | 0.46 |
| Savings deposits                    | 13,604  | .05    | 14,397  | 0.05 | 14,236 | 0.08 |
| Time deposits                       | 16,078  | 0.30   | 19,417  | 0.43 | 26,019 | 0.58 |

|                                  |   | 2013   |   |   | 2012   |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|
|                                  |   |   |   |   |   |   |
| Commitments to extend credit          |   | $      | 10,279 |   |   | $      | 9,484 |   |
| Outstanding standby letters of credit |   |   | 1,051  |   |   |   | 1,173 |   |

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|   | o | Seek additional non-public deposits from new and existing private sector customers |
|--------|---|------------------------------------------------------------------------------------|

|   | o | Sell participations of existing commercial credits to other financial institutions |
|--------|---|------------------------------------------------------------------------------------|

| (Dollars in thousands)       |   | December 31, 2013 Contractual Terms |   |
|------------------------------|--------|-------------------------------------|--------|
|                         |   |                                |   |
| 3 months or less             |   | $                                   | 849    |   |
| Over 3 through 6 months      |   |                                | 5,602  |   |
| Over 6 months through 1 year |   |                                | 2,074  |   |
| Over 1 through five years    |   |                                | 255    |   |
| Over five years              |   |                                | -      |   |
| Total                        |   | $                                   | 8,780  |   |

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| (Dollars in thousands)      |   | Total  |   |   | Less than one year |   |   | One to three years |   |   | Four to five years |   |   | After five years |   |
|-----------------------------|--------|--------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|--------------------|--------|--------|------------------|--------|
| Certificates of Deposit     |   | $      | 15,463 |   |               | $      | 14,383 |               |   | $      | 930                |   |   | $                | 107    |   |   | $ | 43 |   |
| Operating Lease Obligations |   |   | 3,794  |   |               |   | 454    |               |   |   | 906                |   |   |             | 803    |   |   |   | 1,631 |   |
| Total                       |   | $      | 19,257 |   |               | $      | 14,837 |               |   | $      | 1,836              |   |   | $                | 910    |   |   | $ | 1,674 |   |

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|                                                                  |   | Interest rate sensitivity gaps as of December 31, 2013 |   |
|-----------------------------------------------------------------------|--------|--------------------------------------------------------|--------|
|                                                                  |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Dollars in thousands)                                                |   | 3 months or less                                       |   |   | Over 3Through12months |   |   | Over 1 year through3 years |   |   | Over 3 through 5 years |   |   |  Over5 years |   |   | Cumulative |   |
| Interest-sensitive assets:                                            |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing deposits with banks                                  |   | $                                                      | -      |   |   | $ | 307 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 307 |   |
| Investment securities                                                 |   |                                                   | 2,322  |   |   |   | 1,149 |   |   |   | 496 |   |   |   | 402 |   |   |   | 5,082 |   |   |   | 9,451 |   |
| Federal funds sold                                                    |   |                                                   | 3,143  |   |   |   | - |   |   |   | - |   |   |   | -- |   |   |   | - |   |   |   | 3,143 |   |
| Loans                                                                 |   |                                                   | 15,791 |   |   |   | 10,759 |   |   |   | 7,970 |   |   |   | 3,635 |   |   |   | 4,011 |   |   |   | 42,166 |   |
| Total interest-sensitive assets                                       |   |                                                   | 21,256 |   |   |   | 12,215 |   |   |   | 8,466 |   |   |   | 4,037 |   |   |   | 9,093 |   |   |   | 55,067 |   |
| Interest-sensitive liabilities:                                       |   |                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing checking accounts                                    |   | $                                                      | 1,677  |   |   |   | - |   |   | $ | 1,677 |   |   |   | - |   |   |   | - |   |   | $ | 3,354 |   |
| Savings and money market accounts                                     |   |                                                   | 12,134 |   |   |   | - |   |   |   | 12,134 |   |   |   | - |   |   |   | - |   |   |   | 24,258 |   |
| Certificates  $100,000 or more                              |   |                                                   | 1,950  |   |   |   | 6,574 |   |   |   | 256 |   |   |   | - |   |   |   | - |   |   |   | 8,780 |   |
| Certificates of less than $100,000                                    |   |                                                   | 2,264  |   |   |   | 3,595 |   |   |   | 565 |   |   |   | 259 |   |   |   | - |   |   |   | 6,683 |   |
| Total interest-sensitive liabilities                                  |   |                                                   | 18,025 |   |   |   | 10,169 |   |   |   | 14,632 |   |   |   | 259 |   |   |   | -- |   |   |   | 43,085 |   |
| Interest sensitivity gap                                              |   | $                                                      | 3,231  |   |   | $ | 2,046 |   |   | $ | (6,166 | ) |   | $ | 3,778 |   |   | $ | 9,093 |   |   | $ | 11,982 |   |
| Cumulative gap                                                        |   | $                                                      | 3,231  |   |   | $ | 5,277 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative gap/total earning assets                                   |   |                                                   | 5.87   | % |   |   | 9.58 | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Interest-sensitive assetsto interest-sensitive Liabilities |   |                                                   | 1.17   |   |   |   | 1.19 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | Year 1                                              |             |                  |
|--------|-----------------------------------------------------|------------------|-----------------------|
|   |                                                | Net interest     | Percent of            |
|   | Changes in rate                                     | Income           | Risk                  |
|   | (Dollars in thousands)                              |             |                  |
|   | +400 basis points+300 basis points+200 basis points | $3,1063,0533,000 | 8.78%6.915.04         |
|   | +100 basis points                                   | 2,925            | 2.42                  |
|   | Flat rate                                           | 2,856            | -                     |
|   | -100 basis points                                   | 2,700            | (5.45)                |
|   | -200 basis points-300 basis points-400 basis points | 2,4922,2962,104  | (12.72)(19.58)(26.32) |

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|   | Year 2                                              |             |                  |
|--------|-----------------------------------------------------|------------------|-----------------------|
|   |                                                | Net interest     | Percent of            |
|   | Changes in rate                                     | Income           | Risk                  |
|   | (Dollars in thousands)                              |             |                  |
|   | +400 basis points+300 basis points+200 basis points | $6,4266,2656,104 | 12.70% 9.887.07  |
|   | +100 basis points                                   | 5,897            | 3.43                  |
|   | Flat rate                                           | 5,701            | -                     |
|   | -100 basis points                                   | 5,303            | (6.99)                |
|   | -200 basis points-300 basis points-400 basis points | 4,7724,2763,791  | (16.30)(25.00)(33.50) |

|   | MV of equity                                        |             |                   |
|--------|-----------------------------------------------------|------------------|------------------------|
|   | Changes in rate                                     | MV equity        | Risk change            |
|   | (Dollars in thousands)                              |             |                   |
|   | +400 basis points+300 basis points+200 basis points | $1,3801,6252,127 | (63.50)%(57.10)(43.80) |
|   | +100 basis points                                   | 2,693            | (28.80)                |
|   | Flat rate                                           | 3,783            | -                      |
|   | -100 basis points                                   | 4,349            | 14.90                  |
|   | -200 basis points-300 basis points-400 basis points | 4,8325,4106,020  | 27.7043.0059.10        |

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

ITEM 7A — QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 8 — FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

ITEM 9 — CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS

ITEM 9A—CONTROLS AND PROCEDURES

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ITEM 9B—OTHER INFORMATION

|    53.29% Shares Voted |    465,677 of 873,725 Shares |
|----------------------------------|----------------------------------------|

| Question                                                                                          | FOR           | AGAINST      | WITHHOLD/ABSTAIN |
|---------------------------------------------------------------------------------------------------|---------------|--------------|------------------|
| Ratify McGladrey LLP                                                                              |  458,794 | 5,833        | 1,050            |
| Non-binding advisory vote onexecutive compensation                                                |  410,574 |  6,820  |  48,283     |
|                                                                                              | ONE YEAR      | TWO YEARS    | THREE YEARS      |
| Non-binding advisory vote on frequency of advisory vote on executive compensation in future years |  182,053 |  52,700 |  182,091    |

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PART III

ITEM 10 — DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

|                          |   | Principal occupation and                                                                     | Year first      | Term        |
|-------------------------------|--------|----------------------------------------------------------------------------------------------|-----------------|-------------|
| Name                          | Age    | other directorships                                                                          | became director | Will expire |
| Bernard E. Anderson           | 76     | EconomistWhitney M. Young, Jr. Professor EmeritiusWharton School, University of Pennsylvania | 2002            | 2014        |
|                          |   | Philadelphia, PA                                                                             |            |        |
|                          |   |                                                                                         |            |        |
| David R. Bright               | 74     | Retired, Executive Vice President                                                            |            |        |
|                          |   | Meridian Bancorp                                                                             | 2002            | 2014        |
|                          |   | Philadelphia, PA                                                                             |            |        |
|                          |   |                                                                                         |            |        |
| Joseph T. Drennan             | 69     | Former Chief Financial Officer                                                               | 2004            | 2014        |
|                          |   | Universal Capital Management, Inc.                                                           |            |        |
|                          |   | Wilmington, DE                                                                               |            |        |
|                          |   |                                                                                         |            |        |
| L. Armstead Edwards           | 71     | Chairman of the Board,                                                                       | 1993            | 2016        |
|                          |   | United Bancshares, Inc.                                                                      |            |        |
|                          |   | Owner and President,                                                                         |            |        |
|                          |   | Edwards Entertainment., Inc.                                                                 |            |        |
|                          |   | Philadelphia, Pennsylvania                                                                   |            |        |
|                          |   |                                                                                         |            |        |
| Marionette Y. Wilson(Frazier) | 68     | Retired as co-Founder,                                                                       | 1996            | 2016        |
|                          |   | John Frazier, Inc.                                                                           |            |        |
|                          |   | Philadelphia, Pennsylvania                                                                   |            |        |

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|             |   | Principal occupation and        | Year first      | Term        |
|------------------|--------|---------------------------------|-----------------|-------------|
| Name             | Age    | other directorships             | became director | Will expire |
|             |   |                            |            |        |
| William B. Moore | 71     | Vice Chairman of the Board,     |            |        |
|             |   | United Bancshares, Inc.         |            |        |
|             |   | Pastor, Tenth Memorial          | 1993            | 2015        |
|             |   | Baptist Church                  |            |        |
|             |   | Philadelphia, Pennsylvania      |            |        |
|             |   |                            |            |        |
| Evelyn F. Smalls | 68     | President and CEO of Registrant | 2000            | 2015        |
|             |   | and United Bank of Philadelphia |            |        |
|             |   |                            |            |        |
| Ernest L. Wright | 85     | Founder, President and          | 1993            | 2016        |
|             |   | CEO of Ernest L. Wright         |            |        |
|             |   | Construction Company            |            |        |
|             |   | Philadelphia, Pennsylvania      |            |        |

| Name                    | Age    | Office                                           |
|-------------------------|--------|--------------------------------------------------|
|                    |   |                                             |
| Evelyn F. Smalls        | 68     | President and Chief Executive Officer            |
| Brenda M. Hudson-Nelson | 52     | Executive Vice President/Chief Financial Officer |

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|   | Respectfully submitted:Joseph T. Drennan (Chairman), |
|--------|------------------------------------------------------|

|   | William B. Moore |
|--------|------------------|

|   | L. Armstead Edwards, |
|--------|----------------------|

|   | Marionette Y. Wilson (Frazier) |
|--------|--------------------------------|

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|  Name, Principal Occupation andBusiness Experience For Past 5 Years |  Age as ofFebruary 24, 2014 |   Office with the UBS and/or Bank                         | UBS StockBeneficiallyOwned |
|--------------------------------------------------------------------------|----------------------------------|---------------------------------------------------------------------|----------------------------|
| Evelyn F. Smalls(1)(2)                                                   | 68                               | President and Chief Executive Officer andDirector of UBS and Bank   | 500                        |
| Brenda M. Hudson-Nelson (3)                                              | 52                               | Executive Vice President and Chief Financial Officerof UBS and Bank | 50                         |

----

|   | (1) | Ms. Smalls was elected as a director and was appointed as President and Chief Executive Officer in June 2000. Prior to that, Ms. Smalls was Senior Vice President of Human Resources and Compliance from October 1993 to May 2000. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The President and Chief Executive Officer, currently Evelyn F. Smalls, acts as Trustee of certain voting trust agreements (the “Voting Trusts”) pursuant to which Fahnstock, Inc deposited 5,209 shares of Common Stock of UBS. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Ms. Hudson-Nelson was appointed Senior Vice President and Chief Financial Officer in June 2000. Prior to that, Ms. Hudson-Nelson was Vice President and Controller from January 1992 to May 2000.  In May 2002, Ms. Hudson-Nelson was promoted to Executive Vice President and Chief Financial Officer. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

ITEM 11 — EXECUTIVE COMPENSATION

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|   |  • | Salary; |
|--------|---------------|---------|

|   |  • | Life Insurance in the amount of two times salary; and |
|--------|---------------|-------------------------------------------------------|

|   |  • | Automobile Allowance. |
|--------|---------------|-----------------------|

|                                         |   |       |           |   |                  |    |                       |              |   |          |                    |   |   |                     |     |   |                                          |          |     |                                                                          |   |          |                              |   |   |           |     |
|----------------------------------------------|--------|------------|----------------|--------|-----------------------|---------|----------------------------|-------------------|--------|---------------|-------------------------|--------|--------|--------------------------|----------|--------|-----------------------------------------------|---------------|----------|-------------------------------------------------------------------------------|--------|---------------|-----------------------------------|--------|--------|----------------|----------|
| Name and PrincipalPosition         |   | Year  |           |   | Salary ($)  |    |                       | Bonus($)(1)  |   |          | StockAwards($)(1)  |   |   | OptionAwards($)(1)  |     |   | Non-EquityIncentive PlanCompensation(1)  |          |     | Change inPensionValue andNonqualifiedDeferredCompensationEarnings($)(1)  |   |          | All OtherCompensation($)(2)  |   |   | Total($)  |     |
| Evelyn F. SmallsChief Executive Officer      |   |       | 2013 2012 |   |                  | $  | 168,000  168,000 |              |   | $        | 0 0                |   |   | $                   | 00       |   |                                          | $        | 0 0 |                                                                          |   | $        | 00                                |   |   | $         | 0 0 |   |   | $  | 9,2096,209 |   |   | $  | 177,209 174,209 |   |
|                                         |   |       |           |   |                  |    |                       |              |   |          |                    |   |   |                     |     |   |                                          |          |     |                                                                          |   |          |                              |   |   |           |     |   |   |   |   |   |   |   |   |   |
| Brenda Hudson-Nelson,Chief Financial Officer |   |       | 2013 2012 |   |                  | $  | 121,000  121,000 |              |   |  $  | 0 0                |   |   |  $             | 0 0 |   |                                          |  $  | 00       |                                                                          |   |  $  | 00                                |   |   |  $   | 00       |   |   |  $  | 6,0956,095 |   |   |  $  | 127,095  127,095 |   |

| (1) | Amounts are not included in the Bonus, Stock Awards, Option Awards, Non-equity Incentive Plan Compensation, Change in Pension and Nonqualified Deferred Compensation Earnings and All Other Compensation columns of the table because no compensation of this nature was paid by UBS or the Bank and the restricted stock awards and long term incentive payouts columns are not included in the Compensation Table since these benefits are not made available by UBS or the Bank. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The President/Chief Executive Officer receives a $750 per month automobile allowance and the Executive Vice President /Chief Financial Officer receives a $500 per month automobile allowance. UBS’ executives are provided with life insurance policies equivalent to two times their annual salary for which the cost is $209/annually for Evelyn Smalls and $95/annually for Brenda Hudson-Nelson                                                                               |

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ITEM 12 — SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

| Name and Addressof Beneficial Owner            | Amount and Nature ofBeneficial Ownershipof CorporationCommon Stock | Percentage ofOutstandingCorporationCommon StockOwned |
|------------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------|
| Philadelphia Municipal                         | 71,667                                                             | 8.20%                                                |
| Retirement System                              |                                                               |                                                 |
| 2000 Two Penn Center                           |                                                               |                                                 |
| Philadelphia, Pennsylvania 19102          |                                                               |                                                 |
| Wells Fargo, (formerly, Wachovia Corporation)2 | 50,000                                                             | 5.72%                                                |
| 301 S College Street, Floor 27                 |                                                               |                                                 |
| Charlotte, NC 28288                            |                                                               |                                                 |
|                                           |                                                               |                                                 |
| Greater Philadelphia Urban Affairs Coalition   | 47,500                                                             | 5.44%                                                |
| 1207 Chestnut Street, Floor 7                  |                                                               |                                                 |
| Philadelphia, PA  19107              |                                                               |                                                 |
|                                           |                                                               |                                                 |
| The Estate of James F. Bodine                  | 44,583                                                             | 5.10%                                                |
| 401 Cypress Street                             |                                                               |                                                 |
| Philadelphia, PA  19106              |                                                               |                                                 |

| (1) | As of February 24, 2014, there were 876,921 shares of UBS’ voting Common Stock outstanding. |
|-----|---------------------------------------------------------------------------------------------------|

| (2) | Wells Fargo (formerly Wachovia Corporation) owns 241,666 shares of UBS Common Stock of which 50,000 are voting shares. |
|-----|------------------------------------------------------------------------------------------------------------------------|

| (3) | UBS does not know of any person having or sharing voting power and/or investment power with respect to more than 5% of the UBS’ Common Stock other than Wachovia Corporation (formerly First Union Corporation), Philadelphia Municipal Retirement System, Greater Philadelphia Urban Affairs Coalition, and the Estate of James F. Bodine. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|  Name                     | CommonStock1,2,3 | Percent ofOutstanding Stock |
|--------------------------------|------------------|-----------------------------|
| Current Directors              |             |                        |
| L. Armstead Edwards            | 10,833           | 1.24%                       |
| Marionette Y. Wilson (Frazier) | 17,900           | 2.05%                       |
| Ernest L. Wright               | 7,084            | *                           |
| Bernard E. Anderson            | 850              | *                           |
| David R. Bright                | 850              | *                           |
| Joseph T. Drennan              | 783              | *                           |
| William B. Moore               | 1,834            | *                           |
| Evelyn F. Smalls               | 500              | *                           |

| Certain Executive Officers                              |   |   |
|---------------------------------------------------------|--------|--------|
| Evelyn F. Smalls                                        | 500**  | *      |
| Brenda M. Hudson-Nelson                                 | 50     | *      |
| All Current Directors and Executive Officers as a Group | 40,684 | 4.64%  |

| *      | Less than one percent.                                                                                                                                                                                                                                                                                                                                                                               |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **     | Ms. Smalls is also a Director; see listing above.                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                 |
| (1)    | Stock ownership information is given as of February 24, 2014, and includes shares that the individual has the right to acquire (other than by exercise of stock options) within sixty (60) days of February 24, 2014. Unless otherwise indicated, each director and each such named executive officer holds sole voting and investment power over the shares listed.                                 |
| (2)    | The number of shares “beneficially owned” in each case includes, when applicable, shares owned beneficially, directly or indirectly, by the spouse or minor children of the director, and shares owned by any other relatives of the director residing with the director. None of the directors holds title to any shares of UBS of record that such director does not own beneficially. |
| (3)    | None of the common stock of directors and executive officers is pledged to secure a debt.                                                                                                                                                                                                                                                                                                            |

ITEM 13 — CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

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|               |   | 2013   |    |   | 2012   |   |
|--------------------|--------|--------|---------|--------|--------|--------|
|               |   |   |    |   |   |   |
| Audit Fees         |   | $      | 154,812 |   |   | $      | 150,004 |   |
| Audit-related fees |   |   | 1,319   |   |   |   | 945 |   |
| Tax fees           |   |   | 11,000  |   |   |   | 11,000 |   |
| All other fees     |   |   | -       |   |   |   | - |   |
| Total fees         |   | $      | 167,131 |   |   | $      | 161,949 |   |

| 1)           | Audit Fees—These are fees for professional services performed by McGladrey LLP in 2013 and 2012 for the audit, including an audit of consolidated  financial statements reporting, and review of financial statements included in our Form 10-Q and Form 10-K filings. |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    |                                                                                                                                                                                                                                                                                   |
| 2)           | Tax Fees—These are fees for professional services performed by McGladrey LLP with respect to tax compliance and tax advice. This includes preparation of our tax returns, tax research and tax advice.                                                                           |

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PART IV

ITEM 15 — EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

|   |   |                                                                                                                                                                                          | Page     |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|   |   |                                                                                                                                                                                          |     |
| (a)    | 1.     | Financial Reports of United Bancshares, Inc.                                                                                                                                                  |     |
|   |   |                                                                                                                                                                                          |     |
|   |   | Report of Independent Registered Public Accounting Firm.                                                                                                                                      | 59       |
|   |   |                                                                                                                                                                                          |     |
|   |   | Consolidated Balance Sheets at December 31, 2013 and 2012.                                                                                                                                    | 60       |
|   |   |  Consolidated Statements of Operations and Comprehensive Loss for the two years ended December 31, 2013.                                                                                 |  61 |
|   |   |  Consolidated Statements of Changes in Shareholders’ Equity for the two years ended December 31, 2013.                                                                             |  62 |
|   |   |                                                                                                                                                                                          |     |
|   |   |  Consolidated Statements of Cash Flows for the two years ended December 31, 2013.                                                                                                        |  63 |
|   |   |                                                                                                                                                                                          |     |
|   |   | Notes to Consolidated Financial Statements                                                                                                                                                    | 64       |
|   |   |                                                                                                                                                                                          |     |
|   |   |                                                                                                                                                                                          |     |
|   | 2.     | Financial Statement Schedules                                                                                                                                                                 |     |
|   |   |                                                                                                                                                                                          |     |
|   |   | Financial Statement Schedules are omitted because the required information is either not applicable, not required or is shown in the respective financial statements or in the notes thereto. |     |
|   |   |                                                                                                                                                                                          |     |
|   | 3.     | The following Exhibits are filed herewith or incorporated by reference as a part of this Annual Report:                                                                                       |     |

|   | Exhibit Number | Item                                                                                                      |
|--------|----------------|-----------------------------------------------------------------------------------------------------------|
|   |           |                                                                                                      |
|   | (3(i))         | Articles of Incorporation (Incorporated by reference to Registrant’s 1998 Form 10-K).               |
|   |           |                                                                                                      |
|   | (3(ii))        | Bylaws (Incorporated by reference to Registrant’s 1997 Form 10-K).                                  |
|   |           |                                                                                                      |
|   | (9.1)          | Voting Trust Agreement with NationsBank (Incorporated by reference to Registrant’s 1997 Form 10-K). |
|   |           |                                                                                                      |
|   | (9.2)          | Voting Trust Agreement with Fahnstock (Incorporated by reference to Registrant’s 1997 Form 10-K).   |
|   |           |                                                                                                      |

|   | (10) | Material Contracts |
|--------|------|--------------------|

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| a)  | Lease for corporate headquarters office located at The Graham Building, 30 S. 15th Street, Suite 1200, Philadelphia, PA (Incorporated by reference to Registrant’s 2004 Form 10-K) |
|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b)  | Lease for branch office located at 1620 Wadsworth Avenue(Incorporated by reference to Registrant’s 2002 Form 10-K)                                                                 |
| c)  | Lease for branch office located at 1015 North Broad Street(Incorporated by reference to Registrant’s 2002 Form 10-K)                                                               |
| d)  | Evelyn F. Smalls’ Employment Agreement, dated November 1, 2004, (Incorporated by reference to Registrant’s 2005 Form 10-K)                                                   |
| e)  | Brenda Hudson-Nelson’s Employment Agreement, dated November 1, 2004, , (Incorporated by reference to Registrant’s 2005 Form 10-K)                                            |

| g)  | Lease for Retail office located at The Graham Building, 30 S. 15th Street, Philadelphia, PA, , (Incorporated by reference to Registrant’s 2005 Form 10-K)                                                                                                                                                                                                       |
|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| f)  | Lease for branch office located at 1520 North Broad Street (Incorporated by reference to Registrant’s 2005 Form 10-K)                                                                                                                                                                                                                                           |
| g)  | First Amendment to lease for corporate headquarters office located at The Graham Building, 30 S. 15th Street, Suite 1200, Philadelphia, PA(incorporated by reference to Registrant’s 2009 Form 10-K)                                                                                                                                                       |
| h)  | FDIC Stipulation and Consent to Issuance of a Consent Order(incorporated by reference to Registrant’s January 31, 2012 Form 8-K)                                                                                                                                                                                                                           |
| i)  | FDIC Consent Order(incorporated by reference to Registrant’s January 31, 2012 Form 8-K)                                                                                                                                                                                                                                                                    |
| j)  | Pennsylvania Department of Banking Stipulation and Consent to Entry of Order(incorporated by reference to Registrant’s January 31, 2012 Form 8-K)                                                                                                                                                                                                          |
| k)  | Pennsylvania Department of Banking Consent Order(incorporated by reference to Registrant’s March 5, 2012 Form 8-K/A) l)Second Amendment to the lease for the corporate and retail offices located at The Graham Building, 30 S. 15th Street, Suite 1200, Philadelphia, PA(incorporated by reference to Registrant’s August 14, 2013 Form 10-Q)  |

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|   | (11)   | Statement of Computation of Earnings Per Share.  Included at Note 16 of the Financial Statements hereof. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                               |   |
|   | (12)   | Statement of Computation of Ratios.  Included at Note 17 of the Financial Statements hereof.             |
|   |   |                                                                                                               |
|   | (14)   | Code of Conduct and Ethics (Incorporated by reference to Registrant’s 2004 10-K)                             |
|   |   |                                                                                                               |   |
|   | (21)   | Subsidiaries of Registrant                                                                                         |
|   |   |                                                                                                               |   |
|   |   | Name                                                                                                               | State of Incorporation |
|   |   | United Bank of Philadelphia                                                                                        | Pennsylvania |
|   |   |                                                                                                               |   |
|   | (31)   | Certification of the Annual Report                                                                                 |
|   |   | (31.1) Certification of the Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.     |
|   |   | (31.2) Certification of the Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.     |
|   |   |                                                                                                               |   |
|   | (32)   | Certification Pursuant to issue of Section 1350                                                                    |
|   |   | (A)                                                                                                                | Exhibit 32.1 |
|   |   |                                                                                                               | Certification Pursuant to 18U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Chief Executive Officer attached hereto as Exhibit 99.1. |
|   |   | (B)                                                                                                                | Exhibit 32.2 |
|   |   |                                                                                                               | Certification Pursuant to 18U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Chief Financial Officer attached hereto as Exhibit 99.2. |
|   |   |                                                                                                               |   |
|   | (99)   | Supplemental Information                                                                                           |
|   |   | (A)                                                                                                                | The Annual Report to Shareholders and Proxy material will be furnished after the filing of Form 10-K.  Copies of these materials will be submitted to the Commission when they are sent to the shareholders. |

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SIGNATURES

| UNITED BANCSHARES, INC.                              | DATE                 |
|------------------------------------------------------|----------------------|
|                                                 |                 |
| /s/ Evelyn F. Smalls                                 | March 31, 2014       |
| Evelyn F. Smalls, President & CEO, Director      |                 |
|                                                 |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ Brenda M. Hudson-Nelson                          | March 31, 2014       |
| Brenda M. Hudson-Nelson, EVP, CFO                    |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ L. Armstead Edwards                              | March 31, 2014       |
| L. Armstead Edwards, Chairman, Director              |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ Marionette Y. Wilson (Frazier)                   |  March 31, 2014 |
| Marionette Y. Wilson (Frazier), Secretary, Director  |                 |
|                                                 |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ William B. Moore                                 | March 31, 2014       |
| William B. Moore, Secretary, Vice Chairman, Director |                 |
|                                                 |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ Bernard E. Anderson                              | March 31, 2014       |
| Bernard E. Anderson, Director                        |                 |
|                                                 |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ David R. Bright                                  | March 31, 2014       |
| David R. Bright, Director                            |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ Joseph T. Drennan                                | March 31, 2014       |
| Joseph T. Drennan, Treasurer, Director               |                 |
|                                                 |                 |
|                                                 |                 |
|                                                 |                 |
| /s/ Ernest L. Wright                                 | March 31, 2014       |
| Ernest L. Wright, Director                           |                 |

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UNITED BANCSHARES, INC. AND SUBSIDIARY

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

----

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

----

|                                                              |   |                     |    |   |         |   |   |    |   |   |        |   |   |          |   |   |                |   |       | Accumulated   |   |   |        |   |
|-------------------------------------------------------------------|--------|--------------------------|---------|--------|--------------|--------|--------|---------|--------|--------|-------------|--------|--------|---------------|--------|--------|---------------------|--------|------------|---------------|--------|--------|-------------|--------|
|                                                              |   |                     |    |   |         |   |   |    |   |   |        |   |   | Additional    |   |   |                |   |       | other         |   |   | Total       |   |
|                                                              |   | Series A preferred stock |    |   | Common stock |   |   | paid-in |   |   | Accumulated |   |   | comprehensive |   |   | shareholders’ |   |
|                                                              |   | Shares                   |    |   | Amount       |   |   | Shares  |   |   | Amount      |   |   | capital       |   |   | deficit             |   |       | income (loss) |   |   | equity      |   |
|                                                              |   |                     |    |   |         |   |   |    |   |   |        |   |   |          |   |   |                |   |       |          |   |   |        |   |
| Balance at December 31, 2011                                      |   |                     | 136,842 |   |         |   | 1,368  |    |   |   | 1,068,588   |   |   |          | 10,686 |   |                |   | 14,749,852 |          |   |   | (9,539,831  | )      |   |   | 38,841 |   |   |   | 5,260,916 |   |
|  Net loss                                                    |   |                     | -       |   |         |   | -      |    |   |   | -           |   |   |          | -      |   |                |   | -          |          |   |   | (1,016,247  | )      |   |   | - |   |   |   | (1,016,247 | ) |
| Other comprehensive loss,     net of tax |   |                     | -       |   |         |   | -      |    |   |   | -           |   |   |          | -      |   |                |   | -          |          |   |   |        |   |   |   | (4,684 | ) |   |   | (4,684 | ) |
| Balance at December 31, 2012                                      |   |                     | 136,842 |   |         | $      | 1,368  |    |   |   | 1,068,588   |   |   | $             | 10,686 |   |                | $      | 14,749,852 |          |   | $      | (10,556,078 | )      |   | $ | 34,157 |   |   | $ | 4,239,985 |   |
|  Net loss                                                    |   |                     | -       |   |         |   | -      |    |   |   | -           |   |   |          | -      |   |                |   | -          |          |   |   | (668,898    | )      |   |   | - |   |   |   | (668,898 | ) |
| Other comprehensive loss,     net of tax |   |                     | -       |   |         |   | -      |    |   |   | -           |   |   |          | -      |   |                |   | -          |          |   |   |        |   |   |   | (361,203 | ) |   |   | (361,203 | ) |
| Balance at December 31, 2013                                      |   |                     | 136,842 |   |         | $      | 1,368  |    |   |   | 1,068,588   |   |   | $             | 10,686 |   |                | $      | 14,749,852 |          |   | $      | (11,224,976 | )      |   | $ | (327,046 | ) |   | $ | 3,209,884 |   |

----

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

----

----

----

----

----

----

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

----

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

----

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

|                                                                         |   | 2012      |   |
|------------------------------------------------------------------------------|--------|-----------|--------|
|                                                                         |   |      |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                         |   | Amortized |   |   | Unrealized |   |   | unrealized |   |   | Fair |   |
|                                                                         |   | Cost      |   |   | Gains |   |   | losses |   |   | Value |   |
| Available-for-sale:                                                          |   |      |   |   |   |   |   |   |   |   |   |   |
| Government Sponsored Enterprises residential mortgage-backed securities |   | $         | 847    |   |   | $ | 51 |   |   | $ | - |   |   | $ | 898 |   |
| Investments in money market funds                                            |   |      | 129    |   |   |   | - |   |   |   | - |   |   |   | 129 |   |
|                                                                         |   | $         | 976    |   |   | $ | 51 |   |   | $ | - |   |   | $ | 1,027 |   |
|                                                                         |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-maturity:                                                            |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government agency securities                                            |   | $         | 3,605  |   |   | $ | 159 |   |   | $ | (4 | ) |   | $ | 3,760 |   |
| Government Sponsored Enterprises residential mortgage-backed securities      |   |      | 8,290  |   |   |   | 437 |   |   |   | (1 | ) |   |   | 8,726 |   |
|                                                                         |   | $         | 11,895 |   |   | $ | 596 |   |   | $ | (5 | ) |   | $ | 12,486 |   |

----

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

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

----

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

----

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

----

----

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

----

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

----

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

----

|   |   |
|--------|--------|

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

|   | · | 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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

|   | · | 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. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

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

----

    -  Specific Loan Evaluation Component – Includes the specific evaluation of impaired loans.   
    -  Historical Charge-Off Component – Applies a rolling, eight-quarter historical charge-off rate to all pools of non-classified loans. 
    -  Qualitative Factors Component – The loan portfolio is broken down into multiple homogenous sub classifications, upon which multiple factors (such as delinquency trends, economic conditions, concentrations, growth/volume trends, and management/staff ability) are evaluated, resulting in an allowance amount for each of the sub classifications. The sum of these amounts comprises the Qualitative Factors Component. 

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

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

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

|                                            |   | December 31, |       |
|-------------------------------------------------|--------|--------------|------------|
|                                            |   | 2013         |       |   | 2012 |   |
|                                            |   |         |       |   |   |   |
| Deferred tax assets(liabilities):               |   |         |       |   |   |   |
| Provision for loan losses                       |   | $            | 191,387    |   |   | $ | 333,853 |   |
| Unrealized (loss) gain on investment securities |   |         | 161,082    |   |   |   | (16,824 | ) |
| Depreciation                                    |   |         | 31,199     |   |   |   | 94,393 |   |
| Net operating carryforwards                     |   |         | 3,198,011  |   |   |   | 2,897,243 |   |
| Other, net                                      |   |         | 258,692    |   |   |   | 134,614 |   |
| Valuation allowance for deferred tax assets     |   |         | (3,679,289 | ) |   |   | (3,460,203 | ) |
| Net deferred tax assets (liabilities)           |   | $            | 161,082    |   |   | $ | (16,824 | ) |

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

|   | Condensed Balance Sheets |
|--------|--------------------------|

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

|   | Condensed Statements of Operations |
|--------|------------------------------------|

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

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

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

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

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

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

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

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

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

|   | · | refrain from accepting any brokered deposits; |
|--------|--------|-----------------------------------------------|

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

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

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

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

----

|   | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED |
|--------|--------------------------------------------------------|

|   | December 31, 2013 and 2012 |
|--------|----------------------------|

|   |       (Dollars in thousands) |
|--------|------------------------------------------------------------|

|                                         |   | 2013    |   |
|----------------------------------------------|--------|---------|--------|
|                                         |   | Fourth  |   |   | Third |   |   | Second |   |   | First |   |
|                                         |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |
| Interest income                              |   | $       | 741    |   |   | $ | 738 |   |   | $ | 700 |   |   | $ | 719 |   |
| Interest expense                             |   |    | 19     |   |   |   | 19 |   |   |   | 20 |   |   |   | 26 |   |
| Net interest income                          |   |    | 722    |   |   |   | 719 |   |   |   | 680 |   |   |   | 693 |   |
| Provision for loan losses                    |   |    | 30     |   |   |   | 30 |   |   |   | (55 | ) |   |   | 70 |   |
| Net interest after provision for loan losses |   |    | 692    |   |   |   | 689 |   |   |   | 735 |   |   |   | 623 |   |
| Noninterest income                           |   |    | 382    |   |   |   | 176 |   |   |   | 654 |   |   |   | 195 |   |
| Noninterest expense                          |   |    | 1,167  |   |   |   | 1,198 |   |   |   | 1,293 |   |   |   | 1,157 |   |
| Net loss                                     |   | $       | (93    | ) |   | $ | (333 | ) |   | $ | 96 |   |   | $ | (339 | ) |
| Basic loss per common share                  |   | $       | (0.09  | ) |   | $ | (0.31 | ) |   | $ | 0.09 |   |   | $ | (0.32 | ) |
| Diluted loss per common share                |   | $       | (0.09  | ) |   | $ | (0.31 | ) |   | $ | 0.09 |   |   | $ | (0.32 | ) |

|   |       (Dollars in thousands) |
|--------|------------------------------------------------------------|

|                                         |   | 2012    |   |
|----------------------------------------------|--------|---------|--------|
|                                         |   | Fourth  |   |   | Third |   |   | Second |   |   | First |   |
|                                         |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |
| Interest income                              |   | $       | 736    |   |   | $ | 768 |   |   | $ | 779 |   |   | $ | 802 |   |
| Interest expense                             |   |    | 31     |   |   |   | 32 |   |   |   | 33 |   |   |   | 43 |   |
| Net interest income                          |   |    | 705    |   |   |   | 736 |   |   |   | 746 |   |   |   | 759 |   |
| Provision for loan losses                    |   |    | 332    |   |   |   | 61 |   |   |   | 30 |   |   |   | 30 |   |
| Net interest after provision for loan losses |   |    | 373    |   |   |   | 675 |   |   |   | 716 |   |   |   | 729 |   |
| Noninterest income                           |   |    | 792    |   |   |   | 260 |   |   |   | 279 |   |   |   | 194 |   |
| Noninterest expense                          |   |    | 1,299  |   |   |   | 1,343 |   |   |   | 1,231 |   |   |   | 1,161 |   |
| Net loss                                     |   | $       | (134   | ) |   | $ | (408 | ) |   | $ | (236 | ) |   | $ | (238 | ) |
| Basic loss per common share                  |   | $       | (0.13  | ) |   | $ | (0.38 | ) |   | $ | (0.22 | ) |   | $ | (0.22 | ) |
| Diluted loss per common share                |   | $       | (0.13  | ) |   | $ | (0.38 | ) |   | $ | (0.22 | ) |   | $ | (0.22 | ) |

----