U.S. SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                              --------------------

                                   FORM 10-QSB
                              --------------------


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

                       FOR THE QUARTER ENDED JUNE 30, 2002

                                       OR

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


                        COMMISSION FILE NUMBER 005-55641


                         UNITED FINANCIAL HOLDINGS, INC.
                 (Name of Small Business Issuer in its Charter)

               FLORIDA                               59-2156002
   (State or Other Jurisdiction of                  (IRS Employer
    Incorporation or Organization)                Identification No.)

                        333 THIRD AVENUE NORTH, SUITE 200
                       ST. PETERSBURG, FLORIDA 33701-3346
                    (Address of Principal Executive Offices)

                                 (727) 898-2265
                (Issuer's Telephone Number, Including Area Code)


Check whether the issuer:  (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or
for such shorter  period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days. Yes X
No ___

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

      Common Stock, $0.01 Par value                    4,434,352
------------------------------------------   --------------------------------
               Class                         Outstanding as of August 2, 2002








                         UNITED FINANCIAL HOLDINGS, INC.

                                      INDEX


                                                                      PAGE
                                                                    --------
PART I.  FINANCIAL INFORMATION

     ITEM 1.     Financial Statements (unaudited)

         Condensed Consolidated Balance Sheets -
         At June 30, 2002 and December 31, 2001                           1

         Condensed Consolidated Statements of Earnings -
         For the three and six months ended June 30, 2002 and 2001        2

         Condensed Consolidated Statements of Comprehensive Income -
         For the three and six months ended June 30, 2002 and 2001        3

         Condensed Consolidated Statement of Stockholders' Equity -
         For the six months ended June 30, 2002                           4

         Condensed Consolidated Statements of Cash Flows -
         For the six months ended June 30, 2002 and 2001                5-6

         Notes to Condensed Consolidated Financial Statements           7-9

     ITEM 2.     Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                  10-15


PART II.  OTHER INFORMATION

     ITEM 1.     Legal Proceedings                                       16

     ITEM 2.     Changes in Securities and Use of Proceeds               16

     ITEM 3.     Defaults upon Senior Securities                         16

     ITEM 4.     Submission of Matters to a Vote of Shareholders         16

     ITEM 5.     Other Information                                       17

     ITEM 6.     Exhibits and Reports on Form 8-K                        17


SIGNATURES                                                               18












PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
                United Financial Holdings, Inc. and Subsidiaries
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (in thousands)
                                                   June 30,         December 31,
                                                     2002               2001
ASSETS                                            (unaudited)        (audited)
                                                  -----------     -  ---------
Cash and due from banks                         $    20,854        $    17,556
Federal funds sold                                   29,748             12,671
Securities held to maturity, market value of
     $24,448 and $19,907 respectively                24,062             19,643
Securities available for sale, at market             20,406             26,820
Loans, net                                          286,220            242,364
Premises and equipment, net                          12,563             11,732
Federal Home Loan Bank stock                            632                507
Federal Reserve Bank stock                              430                226
Accrued interest receivable                           1,668              1,466
Intangible assets                                     3,010              2,948
Other real estate owned                                 175                141
Other assets                                          8,294              8,118
                                               ------------        -----------
   Total assets                                $    408,062        $   344,192
                                               ============        ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Demand                                        $    66,736        $    55,994
  NOW and money market                              120,959             93,690
  Savings and time deposits                         159,400            132,884
                                               ------------        -----------
   Total deposits                                   347,095            282,568

Securities sold under agreements to
     repurchase and fed funds purchased              13,955             15,523
Accrued interest payable                                805                642
Other liabilities                                     2,504              2,811
                                               ------------        -----------
   Total liabilities                                364,359            301,544

Company-obligated mandatory redeemable
     capital securities of subsidiary
     trust holding solely subordinated
     debentures of the company                       16,750             16,750
STOCKHOLDERS' EQUITY
  7% convertible preferred stock                         67                 67
  Series one convertible preferred stock              2,932               3075
  Common stock                                           45                 45
  Paid-in capital                                    10,983             10,983
  Treasury shares                                      (237)              (177)
  Accumulated other comprehensive income                174                157
  Retained earnings                                  12,989             11,749
                                               ------------       ------------
   Total stockholders' equity                        26,953             25,899
                                               ------------       ------------
   Total liabilities and stockholders' equity   $   408,062        $   344,192
                                               ============       ============
     See accompanying notes to condensed consolidated financial statements.
                                     - 1 -

                United Financial Holdings, Inc. and Subsidiaries
                  CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
                (unaudited)(in thousands, except per share data)
                                        Three Months Ended     Six Months Ended
                                       June 30,   June 30,    June 30,  June 30,
                                         2002       2001        2002      2001
                                       -------    -------     -------   -------
Interest income
  Loans and loan fees                  $ 5,363    $ 4,995     $10,345   $ 9,623
  Securities                               584        451       1,137       861
  Federal funds sold and securities
     purchased under reverse
     repurchase agreements                  72        344         149       399
                                       -------    -------     -------   -------
       Total interest income             6,019      5,790      11,631    10,883

Interest expense
  Deposits                               1,744      2,301       3,494     4,261
  Long-term debt and
    other borrowings                        53        125          98       254
  Subordinated debentures
    issued to subsidiary trust             300        159         598       317
                                       -------    -------     -------   -------
       Total interest expense            2,097      2,585       4,190     4,832
                                       -------    -------     -------   -------
       Net interest income               3,922      3,205       7,441     6,051
Provision for loan losses                  562        210         865       420
                                       -------    -------     -------   -------
       Net interest income after
         provision for loan losses       3,360      2,995       6,576     5,631

Other income
  Service charges on deposit accounts      386        324         772       598
  Trust and investment management          847        740       1,682     1,583
  Gain on sale of loans                    162        124         297       264
  All other fees and income                399        185         658       343
                                       -------    -------     -------   -------
       Total other income                1,794      1,373       3,409     2,788
Other expense
   Salaries and employee benefits        2,120      1,840       4,243     3,580
   Occupancy                               280        241         542       428
   Furniture and equipment                 197        196         401       362
   Data processing                         228        190         436       381
   Marketing and business development      120        119         221       232
   Other                                   627        572       1,202     1,072
                                       -------    -------     -------   -------
                                         3,572      3,158       7,045     6,055
                                       -------    -------     -------   -------
       Earnings before income taxes      1,582      1,210       2,940     2,364
Income tax expense                         611        444       1,121       860
                                       -------    -------     -------   -------
       NET EARNINGS                    $   971    $   766     $ 1,819   $ 1,504
                                       =======    =======     =======   =======
Earnings per share:
   Basic                               $   .21    $   .17     $   .40   $   .33
   Diluted                             $   .20    $   .17     $   .38   $   .33

     See accompanying notes to condensed consolidated financial statements.
                                     - 2 -

                United Financial Holdings, Inc. and Subsidiaries
            CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                   (unaudited)
                                 (in thousands)


                                        Three Months Ended     Six Months Ended
                                       June 30,   June 30,    June 30,  June 30,
                                         2002       2001        2002      2001
                                       -------    -------     -------   -------

Net earnings                           $   971    $   766     $ 1,819   $ 1,504
Other comprehensive income
   Unrealized holding gains
   (losses)                                177        102          26       243
Income tax (expense) benefit
   related to items of
   other comprehensive income              (60)       (35)         (9)      (83)
                                       -------    -------     -------   -------

Comprehensive income                   $ 1,088    $   833     $ 1,836   $ 1,664
                                       =======    =======     =======   =======



































     See accompanying notes to condensed consolidated financial statements.
                                     - 3 -

                United Financial Holdings, Inc. and Subsidiaries
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                           (unaudited) (in thousands)

                           Series One       7%
                           Convertible  Convertible
                           Preferred     Preferred     Common     Paid-In
                              Stock         Stock       Stock     Capital
                           -----------  -----------  ---------   --------

Balance at December 31,
   2001                    $   3,075    $      67    $     45    $10,983
Net Earnings                       -            -            -         -
Dividends on Common
   Stock                           -            -            -         -
Dividends on Preferred
   Stock                           -            -            -         -
Treasury Shares redeemed           -            -            -         -
Accumulated other
   comprehensive income            -            -            -         -
Return of shares in
   settlement of
   acquisition contingency      (143)           -            -         -
                           ---------    ---------    ---------   --------

Balance at June 30, 2002   $   2,932    $      67    $      45   $10,983
                           =========    =========    =========   ========



                                         Accumulated
                                            Other
                            Treasury    Comprehensive   Retained
                             Shares        Income       Earnings     Total
                           ----------    ------------   ---------   -------

Balance at December 31,
   2001                    $   (177)     $      157     $ 11,749    $25,899
Net Earnings                      -               -        1,819      1,819
Dividends on Common
   Stock                          -               -         (533)      (533)
Dividends on Preferred
   Stock                          -               -          (46)       (46)
Treasury Shares redeemed        (60)              -            -        (60)
Accumulated other
   comprehensive income           -              17            -         17
Return of shares in
   settlement of
   acquisition contingency        -               -            -       (143)
                           ---------     ----------     --------    -------

Balance at June 30, 2002   $   (237)     $      174     $ 12,989    $26,953
                           =========     ===========    ========    =======


     See accompanying notes to condensed consolidated financial statements.
                                     - 4 -

                United Financial Holdings, Inc. and Subsidiaries
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (unaudited)(in thousands)
                                                              Six Months Ended
                                                         June 30,      June 30,
                                                           2002          2001
                                                       -----------  ----------
Cash flows from operating activities:
    Net earnings                                       $   1,819    $    1,504
    Adjustments to reconcile net earnings
     to net cash provided by operating activities
       Provision for loan losses                             865           420
       Provision for depreciation and amortization           405           474
       Accretion of securities discount                      (14)          (36)
       Amortization of unearned loan fees                   (120)         (150)
       Amortization of securities premiums                    63            16
       Gain on sales of loans                               (481)         (423)
       (Increase) decrease in interest receivable           (203)          157
       Increase in interest payable                          163           170
       (Increase) decrease in other assets                  (208)          279
       (Decrease) in other liabilities                      (306)       (1,300)
                                                       ----------  ------------
         Net cash provided by operating activities         1,983         1,111

Cash flows from investing activities:
    Purchase of Federal Reserve Bank stock
       and FHLB stock                                       (328)            -
    Acquisition of First Security Bank, net
       of cash acquired                                        -        (1,752)
    Net (increase) in Federal funds sold                 (17,077)      (26,618)
    Principal repayments of held to maturity
       securities                                          5,477           585
    Principal repayments of available
       for sale securities                                 8,190           233
    Proceeds from maturities of available for
       sale securities                                     1,509             -
    Proceeds from maturities of held to
       maturity securities                                 1,545         7,050
    Purchases of available for sale securities            (8,729)       (1,992)
    Purchases of held to maturity securities              (6,030)       (5,077)
    Proceeds from sales of loans                           4,124         4,860
    Net (increase) in loans                              (48,450)      (15,265)
    Capital expenditures                                  (1,236)       (1,249)
                                                       ----------    ----------
          Net cash used in investing activities         (61,005)      (39,225)











                                  (Continued)

                                     - 5 -

                United Financial Holdings, Inc. and Subsidiaries
           CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED
                           (unaudited) (in thousands)

                                                           Six Months Ended
                                                         June 30,      June 30,
                                                           2002          2001
                                                         --------      --------
Cash flows from financing activities:
   Net increase in demand deposits, NOW accounts,
     money market accounts and savings accounts          $ 39,336      $ 19,869
   Net increase in certificates of deposit                 25,190        16,518
   Net (decrease) increase in securities sold
       under agreements to repurchase                      (1,567)        4,470
   Increase in borrowings                                       -           100
   Dividend paid on preferred stock                           (46)          (22)
   Dividend paid on common stock                             (533)         (444)
   Purchase of Treasury Shares                                (60)          (60)
                                                         --------      --------

         Net cash provided by financing activities         62,320        40,431
                                                         --------      --------

Net increase in cash and due from banks                     3,298         2,317

Cash and due from banks at beginning of period             17,556         9,420
                                                         --------      --------

Cash and due from banks at end of period                 $ 20,854      $ 11,737
                                                         ========      ========


Cash paid during the period for:
   Interest                                              $  4,027      $  4,662
   Income taxes                                          $  1,591      $  1,064

Supplemental Disclosure of Non-cash Activity
Non-cash common stock issued                             $      -      $    933

Other Information

      Related to the  acquisition  of First  Security Bank at April 1, 2001, the
Company made a final  purchase  accounting  adjustment to decrease loans by $206
thousand, decrease the Series One Preferred stock by $143 thousand, and increase
goodwill by $63 thousand.












     See accompanying notes to condensed consolidated financial statements.
                                     - 6 -

UNITED FINANCIAL HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 - HOLDING COMPANY AND SUBSIDIARIES BACKGROUND INFORMATION

      United  Financial  Holdings,  Inc. (the  "Company")  is a registered  bank
holding company formed in 1982, the principal subsidiary of which is United Bank
("Bank"),  a Florida-chartered  commercial bank headquartered in St. Petersburg,
Florida. The Bank was founded in 1979 and is a community-oriented,  full service
commercial bank with seven branch offices  serving  Pinellas County in the State
of Florida.

      The Company's other operating  subsidiaries are EPW Investment Management,
Inc., an investment  advisory firm registered under the Investment  Advisers Act
of 1940 ("EPW")  headquartered in Tampa, Florida with an office in Jacksonville,
Florida;  United Trust  Company,  a  Florida-chartered  trust company  ("Trust")
located  in St.  Petersburg,  Florida;  and  United  Bank of the Gulf Coast (the
"UBGC",  formerly known as First Security Bank), a Florida-chartered  commercial
bank with one office located in Sarasota, Florida. The Sarasota bank was started
by a group of local  investors  in February  1999 and acquired by the Company on
April 1, 2001. EPW offers investment management services to corporate, municipal
and high net worth individual  clients  throughout the State of Florida.  United
Trust is a wholesale provider of data processing,  administrative and accounting
support and asset  custody  services to  professionals  holding  assets in trust
(primarily legal and accounting firms). In addition,  United Trust also provides
retail trust and  investment  management  services to  individual  and corporate
clients.

NOTE 2 - BASIS OF PRESENTATION

      The accompanying  unaudited condensed  consolidated  financial  statements
have been prepared in accordance with accounting  principles  generally accepted
in the United  States of  America  for  interim  financial  information.  In the
opinion of management, all adjustments, consisting primarily of normal recurring
adjustments,  necessary for a fair  presentation  of the results for the interim
periods have been made to fairly state the results for the interim periods.  The
results of  operations  of the three and six months  ended June 30, 2002 are not
necessarily indicative of the results expected for the full year.

      The organization and business of the Company, accounting policies followed
by the Company and other information are contained in the Company's December 31,
2001 Form 10-KSB.  This quarterly report should be read in conjunction with such
annual report.

NOTE 3 - EARNINGS PER SHARE

      Basic  earnings  per  share are based on the  weighted  average  number of
common  shares  outstanding  during  the  periods.  Diluted  earnings  per share
includes the weighted  average  number of common shares  outstanding  during the
periods and the further dilution from the conversion of the convertible debt and
the preferred  stock and the exercise of stock options using the treasury  stock
method.  The following is a reconciliation of the numerators and denominators of
the basic and diluted earnings per share  computations for the periods presented
(dollars in thousands, except per share data):




                                     - 7 -

                                 For the three months ended June 30,
                                 -----------------------------------
                                                2002
                                   -----------------------------
                                              Weighted      Per
                                              Average      Share
                                   Earnings    Shares     Amount
                                  ---------  ---------  -----------
Basic EPS
  Net earnings available
    to common stockholders          $  949   4,436,085   $   .21
                                                         =======

Effect of  dilutive  securities
  Incremental shares from assumed
  exercise or conversion of:
       Preferred stock                   -      56,233
       Stock options                     -     226,207
                                     -----  ----------

Diluted EPS
  Net earnings available to common
    stockholders and assumed
    conversions                     $  949   4,718,525   $    .20
                                     =====   =========    =======


                                 For the three months ended June 30,
                                               2001
                                 -------------------------------
                                               Weighted     Per
                                               Average     Share
                                     Earnings  Shares     Amount
                                 ------------  ---------- ----------
Basic EPS
  Net earnings available
    to common stockholders           $  746    4,440,421    $  .17
                                                            ======

Effect of  dilutive  securities
  Incremental shares from assumed
  exercise or conversion of:
       Preferred stock                   20       56,233
       Stock options                      -       27,323
                                     ------    ---------

Diluted EPS
  Net earnings available to commo
    stockholders and assumed
    conversions                      $  766    4,523,977   $  .17
                                     ======    =========   ======






(Continued on 8b)
                                    - 8a -

(Continued from 8a)                 For the six months ended June 30, 2002
                                    --------------------------------------
                                                   Weighted      Per
                                                   Average      Share
                                        Earnings    Shares     Amount
                                       ---------  ---------  -----------
Basic EPS
  Net earnings available to
    common stockholders                $   1,773  4,438,241  $      .40
                                                             ==========

Effect of  dilutive  securities
  Incremental  shares  from  assumed
  exercise or conversion of:
       Convertible debt                        -          -
       Preferred stock                         2     56,233
       Stock options                           -    189,642
                                       ---------  ---------
Diluted EPS
  Net earnings available to common
    stockholders and assumed
    conversions                        $   1,775  4,684,116  $      .38
                                       =========  =========  ==========

                                      For the six months ended June 30, 2001
                                      --------------------------------------
                                                   Weighted      Per
                                                   Average      Share
                                        Earnings    Shares     Amount
                                       ---------  ---------  -----------
Basic EPS
  Net earnings available to
    common stockholders                $   1,481  4,423,748  $     .33
                                                             =========

Effect of  dilutive  securities
  Incremental shares from assumed
  exercise or conversion of:
       Convertible debt                        1     13,506
       Preferred stock                        23     56,233
       Stock options                           -      6,297
                                      ----------  ---------
Diluted EPS
  Net earnings available to common
    stockholders and assumed
    conversions                       $    1,505  4,499,784   $     .33
                                      ==========  =========   =========

NOTE 4 - BUSINESS SEGMENT INFORMATION

      United Financial has three reportable segments:  Commercial Banking, Trust
Services,  and Investment  Management Services.  Corporate and Overhead includes
corporate expenses such as corporate overhead,  intercompany  transactions,  and
certain  goodwill  amortization  in  2001.  The  following  table  presents  the
Company's  Business Segment  Information for the three and six months ended June
30, 2002 and 2001, respectively:

                                     - 8b -

                       For the three months ended June 30, 2002
                       Comm'l  Investmnt Trust   Corp &
                       Banking Managemnt Svcs   Overhead   Total
                       ------- --------- ------  -------- --------
Net interest income    $ 4,139  $    -  $    21  $ (238)  $  3,922
Non interest income      1,040     382      487    (115)     1,794
                       -------  ------  -------  ------   --------
Total revenue            5,179     382      508    (353)     5,716
Loan loss provision        562       -        -       -        562
Non interest expense     2,830     330      394      18      3,572
                       -------  ------  -------  ------   --------
Pretax income (loss)     1,787      52      114    (371)     1,582
Income taxes (benefit)     685      21       40    (135)       611
                       -------  ------  -------  ------   --------
Segment net income     $ 1,102  $   31  $    74  $ (236)  $    971
                       =======  ======  =======  ======   ========


                       For the three months ended June 30, 2001
                       Comm'l  Investmnt Trust   Corp &
                       Banking Managemnt Svcs    Overhead   Total
                       ------- --------- ------  -------- --------
Net interest income    $ 3,286  $    -  $    46  $ (127)  $  3,205
Non interest income        692     387      395    (101)     1,373
                       -------  ------  -------  ------   --------
Total revenue            3,978     387      441    (228)     4,578
Loan loss provision        210       -        -       -        210
Non interest expense     2,445     319      365      29      3,158
                       -------  ------  -------  ------   --------
Pretax income (loss)     1,323      68       76    (257)     1,210
Income taxes (benefit)     495      26       38    (115)       444
                       -------  ------  -------  ------   --------
Segment net income     $   828  $   42  $    38  $ (142)  $    766
                       =======  ======  =======  ======   ========























(Continued on 9b)
                                     - 9a -

(Continued from 9a)

                       For the six months ended June 30, 2002
                       Comm'l  Investmnt Trust   Corp &
                       Banking Managemnt Svcs    Overhead   Total
                       ------- --------- ------  -------- --------
Net interest income    $ 7,926  $    -  $    74  $ (559)  $  7,441
Non interest income      1,897     771      930    (189)     3,409
                       -------  ------  -------  -------  --------
Total revenue            9,823     771    1,004    (748)    10,850
Loan loss provision        865       -        -       -        865
Non interest expense     5,564     651      793      37      7,045
                       -------  ------  -------  ------   --------
Pretax income (loss)     3,394     120      211    (785)     2,940
Income taxes (benefit)   1,291      46       74    (290)     1,121
                       -------  ------  -------  ------   --------
Segment net income     $ 2,103  $   74  $   137  $ (495)  $  1,819
                       =======  ======  =======  ======   ========


                       For the six months ended June 30, 2001
                       Comm'l   Investmnt Trust  Corp &
                       Banking Managemnt Svcs   Overhead   Total
                       ------- --------- ------  -------- --------
Net interest income    $ 6,253  $    -  $   114  $ (316)  $  6,051
Non interest income      1,294     821      786    (113)     2,788
                       -------  ------  -------  -------  --------
Total revenue            7,547     821      900    (429)     8,839
Loan loss provision        420       -        -       -        420
Non interest expense     4,530     685      797      43      6,055
                       -------  ------  -------  ------   --------
Pretax income (loss)     2,597     136      103    (472)     2,364
Income taxes (benefit)     945      52       57    (194)       860
                       -------  ------  -------  ------   --------
Segment net income     $ 1,652  $   84  $    46  $ (278)  $  1,504
                       =======  ======  =======  ======   ========






















                                     - 9b -

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
         RESULTS OF OPERATIONS

      This  report  contains   statements   that   constitute   "forward-looking
statements"  within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The
words  "believe,"  "estimate,"  "expect,"  "intend,"  "anticipate,"  "plan"  and
similar   expressions   and  variations   thereof   identify   certain  of  such
forward-looking  statements  which speak only as of the dates on which they were
made.  The Company  undertakes no  obligation  to publicly  update or revise any
forward-looking  statements,  whether  as a result  of new  information,  future
events,  or  otherwise.  Readers  are  cautioned  that any such  forward-looking
statements  are not  guarantees  of future  performance  and  involve  risks and
uncertainties,  and  that  actual  results  may  differ  materially  from  those
indicated in the forward-looking statements as a result of various factors. Such
factors  include,   but  are  not  limited  to  competition,   general  economic
conditions,  potential  changes in interest  rates,  and changes in the value of
real estate securing loans made by the Company.

COMPARISON OF BALANCE SHEETS AT JUNE 30, 2002 AND DECEMBER 31, 2001

Overview

      Total assets of the Company were $408.1 million at June 30, 2002, compared
to $344.2  million at December 31, 2001,  an increase of $63.9 million or 18.6%.
This increase was the result of the Company's  internal growth of earning assets
(primarily federal funds sold and loans) funded by an increase in deposits.

Investment Securities

      Investment  securities,  consisting  of U.S.  Treasury and federal  agency
securities,  obligations of state and political subdivisions and mortgage-backed
and corporate debt securities,  were $44.5 million at June 30, 2002, compared to
$46.5 million at December 31, 2001, a decrease of $2.0 million or 4.3%. Included
in investment securities at June 30, 2002, were $20.4 million of securities held
as "available for sale" to provide the Company greater flexibility to respond to
changes in interest rates and liquidity.  These securities have been recorded at
market value.

Loans

      Total  loans were  $292.3  million at June 30,  2002,  compared  to $247.5
million at December 31,  2001,  an increase of $44.8  million or 18.1%.  For the
same period,  real estate  mortgage  loans  increased by $31.3 million or 19.5%,
commercial  loans  increased  by $14.1  million  or 18.0%,  and all other  loans
including  consumer  loans  decreased  by $0.8  million  or 9.6%.  Loans  net of
allowance for loan loss and unearned  fees were $286.2  million at June 30, 2002
compared to $242.4 million at December 31, 2001.










                                     - 10 -

      The following table sets forth  information  concerning the loan portfolio
by collateral types as of the dates indicated (dollars in thousands):

                                        June 30, 2002        December 31, 2001
                                       ---------------       -----------------
Real estate mortgage loans:
  Commercial real estate                 $     139,314          $     116,081
  One-to-four family residential                14,920                 12.980
  Multifamily residential                       14,981                 14,911
  Construction and land development             22,932                 16,796
                                         -------------          -------------
      Total real estate mortgage loans         192,147                160,768

Commercial loans                                92,606                 78,459
Consumer loans                                   6,440                  6,486
Other loans                                      1,068                  1,773
                                         -------------          -------------
      Gross loans                              292,261                247,486
Allowances for loan losses                      (4,385)                (3,790)
Unearned fees                                   (1,656)                (1,332)
                                         -------------           ------------
      Total loans net of allowance
      and unearned fees                  $     286,220          $     242,364
                                         =============          =============

Asset Quality and Allowance for Loan Losses

      The  allowance  for loan  losses  represents  management's  estimate of an
amount  adequate  to provide  for  potential  losses  within the  existing  loan
portfolio.  The allowance is based upon an ongoing  quarterly  assessment of the
probable  estimated  losses  inherent  in the  loan  portfolio,  and to a lesser
extent, unused commitments to provide financing.

      The  methodologies  for  assessing  the  appropriateness  of the allowance
consist of several key elements,  which include:  1) the formula  allowance;  2)
review of the underlying  collateral on specific  loans;  and 3) historical loan
losses.  The  formula  allowance  is  calculated  by  applying  loss  factors to
outstanding  loans and unused  commitments,  in each case based on the  internal
risk  grade of those  loans.  Changes  in risk  grades  of both  performing  and
non-performing  loans affect the amount of the formula allowance.  On the larger
criticized  or  classified  credits,  a review is  conducted  of the  underlying
collateral  that secures each credit.  A worse case scenario review is conducted
on  those  loans to  calculate  the  amount,  if any,  of  potential  loss.  The
historical  loan loss method is a review of the last six years of actual losses.
The loss percentage is calculated and applied to the current  outstanding  loans
in total.

     Various conditions that would affect the loan portfolio are also evaluated.
General economic and business  conditions that affect the portfolio are reviewed
including:   1)  credit  quality  trends   including  trends  in  past  due  and
non-performing  loans;  2)  collateral  values in general;  3) loan  volumes and
concentration;   4)  recent  loss  experience  in  particular  segments  of  the
portfolio;  5) duration  and  strength of the current  business  cycle;  6) bank
regulatory  examination  results;  and 7) findings of the  external  loan review
process.  Senior  management  and the Directors'  General Loan Committee  review
these conditions quarterly. If any of these conditions presents a problem to the
loan portfolio, an additional allocation may be recommended.

                                     - 11 -

      The following table sets forth information  concerning the activity in the
allowance for loan losses during the periods indicated (dollars in thousands):
                                            For the six months ended
                                      June 30, 2002          June 30, 2001
                                      -------------          -------------
Allowance at beginning of period       $       3,790          $       2,761
Charge-offs:
  Real estate loans                                -                      9
  Commercial loans                               255                     24
  Consumer loans                                  21                      8
                                       -------------          -------------
      Total charge-offs                          276                     41
Recoveries:
  Real estate loans                                1                     20
  Commercial loans                                 4                     46
  Consumer loans                                   1                      1
                                       -------------          -------------
      Total recoveries                             6                     67
Net charge-offs                                 (270)                    26
Allowance related to UBGC                          -                    256
Provision for loan losses                        865                    420
                                       -------------          -------------
Allowance at end of period             $       4,385          $       3,463
                                       =============          =============
Nonperforming Assets
      Nonperforming  assets  include 1) loans which are 90 days or more past due
and have been placed into non-accrual status; 2) accruing loans that are 90 days
or more delinquent that are deemed by management to be adequately secured and in
the  process of  collection;  and 3) ORE (i.e.,  real  estate  acquired  through
foreclosure or deed in lieu of  foreclosure).  All delinquent loans are reviewed
on a regular basis and are placed on non-accrual  status when, in the opinion of
management,   the  possibility  of  collecting  additional  interest  is  deemed
insufficient to warrant further accrual. As a matter of policy,  interest is not
accrued on loans past due 90 days or more  unless the loan is both well  secured
and in  process  of  collection.  When a loan is placed in  non-accrual  status,
interest accruals cease and uncollected accrued interest is reversed and charged
against current income.  Additional  interest income on such loans is recognized
only when received.

      The following  table sets forth  information  regarding the  components of
nonperforming assets at the dates indicated (dollars in thousands):
                                    June 30, 2002         December 31, 2001
Real estate loans                   $        2,119           $      2,377
Commercial loans                               222                    186
Consumer loans                                   -                      -
                                    --------------           ------------
     Total non-accrual loans                 2,341                  2,563
Other real estate                              175                    141
Accruing loans 90 days past due                925                    164
                                    --------------           ------------
     Total nonperforming assets     $        3,441           $      2,868
                                    ==============           ============
Bank Premises and Equipment
      Bank premises and equipment was $12.6 million at June 30, 2002 compared to
$11.7  million at December 31, 2001,  an increase of $0.9 million or 7.7%.  This
increase  was  primarily  due  to  the  acquisition  office  equipment  and  the
completion of the  construction of a new branch office,  partially offset by the
depreciation  of the  buildings  and  equipment  and  amortization  of leasehold
improvements.                        - 12 -

Deposits

      Total  deposits were $347.1  million at June 30, 2002,  compared to $282.6
million at December 31, 2001, an increase of $64.5 million or 22.8%.  During the
six months ended June 30, 2002, demand deposits increased $10.7 million, NOW and
money market  deposits  increased $27.3 million,  and savings  deposits and time
deposits increased $26.5 million.

Mandatory Redeemable Capital Securities of Subsidiary Trust

UFH Capital Trust I

      In December 1998, the Company,  through a statutory business trust created
and owned by the  Company,  issued  approximately  $6.7  million  (including  an
overallotment of approximately $750 thousand that closed on January 14, 1999) of
Trust Preferred  Securities that will mature on December 10, 2028. The principal
assets of the Trust are Debentures  issued to the Company in an aggregate amount
of $6.96 million, with an interest rate of 9.40% and a maturity date of December
10, 2028.

UFH Statutory Trust II

     In December 2001, the Company,  through a statutory  business trust created
and owned by the  Company,  issued $10  million of  Cumulative  Trust  Preferred
Securities with a floating rate of 3 month LIBOR plus 360 basis points that will
mature on December 18, 2031.  The  principal  assets of the  statutory  business
trust are  debentures  issued to the  Company in an  aggregate  amount of $10.31
million,  with a floating  interest  rate of 3 month LIBOR plus 360 basis points
and a maturity date of December 23, 2031.

Stockholders' Equity

      Stockholders' equity was $27.0 million at June 30, 2002, or 6.61% of total
assets,  compared to $25.9  million,  or 7.52% of total  assets at December  31,
2001. At June 30, 2002, the Company's Tier I (core) Capital ratio was 8.55%, its
Tier I Risk-based  Capital  ratio was 9.93%,  and its Total  Risk-based  Capital
ratio was 13.48%. Management  believes  that the capital  ratios of the Banks at
that date all exceeded the minimum  regulatory  guidelines for an institution to
be considered "well capitalized".  The increase in stockholders'  equity was due
to year to date net income,  less  dividends  declared and changes in the market
value of securities available for sale, net of deferred taxes.

COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED
JUNE 30, 2002 AND 2001

Overview

      Net income for the three months  ended June 30, 2002 was $971  thousand or
$0.20 per share  diluted,  compared to $766  thousand or $0.17 per share diluted
for the same  period in 2001.  On a pre-tax  basis,  United  Trust  earned  $114
thousand in 2002 versus $76 thousand in 2001, EPW earned $52 thousand versus $68
thousand and Commercial Banking's pre-tax profits increased to $1.8 million from
$1.3 million for the same period in 2001.





                                     - 13 -

Analysis of Net Interest Income

      Interest income for the three months ended June 30, 2002 was $6.0 million,
compared to $5.8  million for the same  period in 2001,  a $0.2  million or 3.4%
increase.  This  increase in interest  income is primarily due to an increase in
earning  assets,  consisting  mostly of loans and federal  funds sold.  Interest
expense was $2.1 million for the three  months ended June 30, 2002,  compared to
$2.6 million for the same period in 2001, a $0.5 million or 19.2% decrease. This
decrease is primarily due to a general  reduction of interest rates on deposits,
partially offset by an increase in deposits.

Provision for Loan Losses

      For the three months ended June 30, 2002,  the  provision  for loan losses
charged to expense was $562  thousand,  compared to $210  thousand  for the same
period in 2001,  an  increase  of $352  thousand  or 167.6%.  The  allowance  of
possible loan losses was $4.4 million at June 30, 2002. Management's judgment as
to the adequacy of the allowance is based upon a number of assumptions about the
future  events which it believes to be  reasonable,  but which may or may not be
accurate.  Because of the inherent  uncertainty of  assumptions  made during the
evaluation process, there can be no assurance that loan losses in future periods
will not exceed the allowance for loan losses or that additional provisions will
not be required.

Noninterest Income

      Noninterest  income  for the three  months  ended  June 30,  2002 was $1.8
million  compared to $1.4  million  for the same period in 2001,  an increase of
$0.4 million or 28.6%.  This  increase was primarily due to an increase in trust
and investment  management  fees and fees generated  from  residential  mortgage
operations.

Noninterest Expense

      Total noninterest expense for the three months ended June 30, 2002 was 3.6
million  compared to $3.2  million  for the same period in 2001,  an increase of
$0.4 million or 12.5%. This increase was due to increases in salary and benefits
expense of $280 thousand,  occupancy and equipment expense of $40 thousand,  and
data processing expense of $38 thousand.

COMPARISON OF RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED
JUNE 30, 2002 AND 2001

Overview

      Net  income for the six months  ended  June 30,  2002 was $1.8  million or
$0.38 per share diluted, compared to $1.5 million or $0.33 per share diluted for
the same period in 2001. On a pre-tax  basis,  United Trust earned $211 thousand
in 2002 versus $103 thousand in 2001, EPW's pre-tax  operating  profits declined
to $120 thousand versus $136 thousand in 2001 and Commercial  Banking's  pre-tax
profits increased to $3.4 million from $2.6 million for the same period in 2001.

Analysis of Net Interest Income

      Interest  income for the six months ended June 30, 2002 was $11.6 million,
compared to $10.9  million for the same period in 2001,  a $0.7  million or 6.4%
increase.  This  increase in interest  income is primarily due to an increase in

                                     - 14 -

earning  assets,  consisting  mostly of loans and federal loans sold,  partially
offset by a general  decrease  in  interest  rates.  Interest  expense  was $4.2
million for the six months ended June 30, 2002, compared to $4.8 million for the
same  period  in 2001,  a $0.6  million  or 12.5%  decrease.  This  decrease  is
primarily due to a general  decrease in interest rates,  partially  offset by an
increase in interest bearing liabilities.

Provision for Loan Losses

      For the six months  ended June 30,  2002,  the  provision  for loan losses
charged to expense was $865  thousand,  compared to $420  thousand  for the same
period in 2001,  an  increase  of $445  thousand  or 105.9%.  The  allowance  of
possible loan losses was $4.4 million at June 30, 2002. Management's judgment as
to the adequacy of the allowance is based upon a number of assumptions about the
future  events which it believes to be  reasonable,  but which may or may not be
accurate.  Because of the inherent  uncertainty of  assumptions  made during the
evaluation process, there can be no assurance that loan losses in future periods
will not exceed the allowance for loan losses or that additional provisions will
not be required.

Noninterest Income

      Noninterest income for the six months ended June 30, 2002 was $3.4 million
compared  to $2.8  million  for the same  period in 2001,  an  increase  of $0.6
million or 21.4%.  This  increase  was  primarily  due to an increase in service
charges on deposit  accounts of $174  thousand,  an increase of $99  thousand in
trust and investment management, and $315 thousand in all other fees and income,
mostly consisting of fees generated from residential mortgage operations.

Noninterest Expense

      Total noninterest  expense for the six months ended June 30, 2002 was $7.0
million  compared to $6.1  million  for the same period in 2001,  an increase of
$0.9 million or 14.8%. This increase was due to increases in salary and benefits
expense of $663 thousand, occupancy and equipment expense of $153 thousand, data
processing  expense  of $55  thousand,  and  other  operating  expense  of  $130
thousand.

LIQUIDITY

       During the six months ended June 30, 2002, the Company's  primary sources
of funds  consisted  of deposit  inflows  and  proceeds  from the  maturity  and
principal  repayment  of  securities  available  for sale.  The Company used its
capital resources  principally to fund existing and continuing loan commitments,
to purchase loan  participations  and to purchase  overnight  investments  (i.e.
federal funds sold).  At June 30, 2002, the Company had commitments to originate
loans  totaling  $35.0  million.  Management  believes  the Company has adequate
resources to fund all its  commitments.  Management  also  believes  that, if so
desired,  it can  adjust  the rates on time  deposits  to retain  deposits  in a
changing interest rate environment.  As Florida-chartered  commercial banks, the
Commercial  Banking  segment is required  to maintain a liquidity  reserve of at
least 15% of its total transaction  accounts and 8% of its total  nontransaction
accounts less those deposits of certain public funds. The liquidity  reserve may
consist of cash on hand, cash on demand with other correspondent banks and other
investments  and short-term  marketable  securities as defined,  such as federal



                                     - 15 -

funds sold and United States  securities or securities  guaranteed by the United
States.  As of June 30, 2002,  the Commercial  Banking  segment had liquidity of
approximately $80.9 million, or approximately 23% of total deposits.

      Management  believes the Commercial Banking segment was in compliance with
all minimum capital requirements that it was subject to at June 30, 2002.

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

         The  Company  and  the   subsidiaries  are  parties  to  various  legal
proceedings in the ordinary course of business. Management does not believe that
there is any  pending  or  threatened  proceeding  against  the  Company  or the
subsidiaries which, if determined adversely, would have a material effect on the
business,  results of  operations,  or financial  position of the Company or the
subsidiaries.

ITEM 2.  CHANGES IN SECURITIES AND USE OF PROCEEDS

         None

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

         None.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS

         The Annual  Meeting  of  Shareholders  (the  "Annual  Meeting")  of the
Company was held on April 23, 2002. At the Annual Meeting  3,161,189 shares were
present in person or by proxy. The following matters were submitted to a vote of
shareholders:

1.      To elect five persons as members of the Board of Directors.

       The following directors were elected with a summary of the votes cast for
each nominee:

                            FOR         AGAINST    ABSTAIN            TERM
   Ronald E. Clampitt    3,159,772       1,417        -              3 years
   William A. Eickhoff   3,159,772       1,417        -              3 years
   William B. McQueen    3,159,772       1,417        -              3 years
   John B. Norrie        3,158,572       2,617        -              3 years
   James U. Wade         3,159,772       1,417        -              3 years

       In addition to the foregoing,  the following individuals are directors of
       United Financial whose terms continued after the Annual Meeting:

      Robert J. Banks                              Jack A. MaCris, M.D.
      Ward J. Curtis                               Ronald R. Petrini
      David K. Davis, M.D.                         Neil W. Savage
      Edward D. Foreman                            John B. Wier, Jr.
      Ian F. Irwin                                 Harold J. Winner





                                     - 16 -


2.   To ratify the appointment of Grant Thornton L.L.P. as the Company's
     independent auditors for 2002.

          FOR                        AGAINST                      ABSTAIN
       3,156,979                      2,125                        2,085

Grant Thornton was retained as independent accountants for the Company.

ITEM 5.  OTHER INFORMATION

         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

     99.1 Certification of Chief Executive Officer.

     99.2 Certification of Principal Financial and Accounting Officer.

(b) Reports on Form 8-K

     There were no reports on Form 8-K filed  during the period  ending June 30,
2002.


































                                     - 17 -



                UNITED FINANCIAL HOLDINGS, INC. AND SUBSIDIARIES

                                   SIGNATURES

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


                          UNITED FINANCIAL HOLDINGS, INC.
                          (Registrant)

Date:   August 8, 2002    By:   /s/ NEIL W. SAVAGE
      ------------------       -------------------
                               Neil W. Savage
                               President and Chief Executive Officer



Date:   August 8, 2002    By:   /s/ C. PETER BARDIN
      ------------------       --------------------
                               C. Peter Bardin
                               Senior Vice President and Chief Financial Officer
                               (Principal Financial and Accounting Officer)
































                                     - 18 -