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 MARCH 31, 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)

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                     4,435,229
------------------------------------------    --------------------------------
                  Class                       Outstanding as of April 30, 2002













                         UNITED FINANCIAL HOLDINGS, INC.

                                      INDEX

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

     ITEM 1.     Financial Statements (unaudited)

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

  Condensed Consolidated Statements of Earnings -
  For the three months ended March 31, 2002 and 2001                     2

  Condensed Consolidated Statements of Comprehensive Income -
  For the three months ended March 31, 2002 and 2001                     3

  Condensed Consolidated Statement of Stockholders' Equity -
  For the three months ended March 31, 2002                              4

  Condensed Consolidated Statements of Cash Flows -
  For the three months ended March 31, 2002 and 2001                   5-6

  Notes to Condensed Consolidated Financial Statements                 7-8

     ITEM 2.     Management's Discussion and Analysis of Financial
                 Condition and Results of Operations                   9-13

PART II.  OTHER INFORMATION

     ITEM 1.     Legal Proceedings                                     14

     ITEM 2.     Changes in Securities and Use of Proceeds             14

     ITEM 3.     Defaults Upon Senior Securities                       14

     ITEM 4.     Submission of Matters to a Vote of Shareholders       14

     ITEM 5.     Other Information                                     14

     ITEM 6.     Exhibits and Reports on Form 8-K                      14


SIGNATURES                                                             15














PART I.  FINANCIAL INFORMATION
ITEM 1.  FINANCIAL STATEMENTS
                United Financial Holdings, Inc. and Subsidiaries
              CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
                                                  March 31,        December 31,
                                                      2002               2001
ASSETS                                           (unaudited)        (audited)
                                                 -----------     -  ---------
Cash and due from banks                        $    16,495        $    17,556
Federal funds sold                                  18,089             12,671
Securities held to maturity, market value
   of $21,327 and $19,907 respectively              21,306             19,643
Securities available for sale, at market            22,764             26,820
Loans, net                                         263,412            242,364
Premises and equipment, net                         12,484             11,732
Federal Home Loan Bank stock                           613                507
Federal Reserve Bank stock                             407                226
Accrued interest receivable                          1,700              1,466
Intangible assets                                    3,010              2,948
Other real estate owned                                139                141
Other assets                                         8,234              8,118
                                                ----------         ----------
       Total assets                            $   368,653        $   344,192
                                                ==========         ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
  Demand                                       $    53,851        $    55,994
  NOW and money market                             105,889             93,690
  Savings & Time Deposits                          146,792            132,884
                                                ----------         ----------
       Total deposits                              306,532            282,568

Securities sold under agreements
    to repurchase                                   14,196             15,523
Accrued interest payable                               949                642
Other liabilities                                    4,013              2,811
                                                ----------         ----------
       Total liabilities                           325,690            301,544

Company-obligated Mandatory
  Redeemable Capital Securities of
  Subsidiary Trusts                                 16,750             16,750
STOCKHOLDERS' EQUITY
  Series one convertible preferred stock             2,932              3,075
  7% convertible preferred stock                        67                 67
  Common stock                                          45                 45
  Paid-in capital                                   10,983             10,983
  Treasury shares                                     (177)              (177)
  Accumulated other comprehensive income                57                157
  Retained earnings                                 12,306             11,749
                                                ----------         ----------
       Total stockholders' equity                   26,213             25,899
                                                ----------         ----------
       Total liabilities and
        stockholders' equity                   $   368,653        $   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
                                                 March 31,         March 31,
                                                     2002              2001
                                               ------------      -------------
Interest income
  Loans and loan fees                          $      4,982      $      4,627
  Securities                                            553               410
  Federal funds sold and securities purchased
     under reverse repurchase agreements                 77                55
                                                -----------       -----------
       Total interest income                          5,612             5,092

Interest expense
  Deposits                                            1,750             1,960
  Long-term debt and other borrowings                     -               128
  Subordinated debentures issued to
     subsidiary trusts                                  343               159
                                                -----------       -----------
       Total interest expense                         2,093             2,247
                                                -----------       -----------
       Net interest income                            3,519             2,845
Provision for loan losses                               303               210
                                                -----------       -----------
       Net interest income after provision
         for loan losses                              3,216             2,635

Other income
  Service charges on deposit accounts                   386               274
  Trust and investment management
     income                                             835               843
  Gain on sales of loans                                134               140
  All other fees and income                             259               158
                                                -----------       -----------
       Total other income                             1,614             1,415

Other expense
   Salaries and employee benefits                     2,123             1,740
   Occupancy expense                                    262               187
   Furniture and equipment expense                      204               166
   Data Processing                                      208               190
   Marketing and business development                   100               113
   Other operating expenses                             575               500
                                                -----------       -----------
                                                      3,472             2,896
                                                -----------       -----------
       Earnings before income taxes                   1,358             1,154
Income tax expense                                      510               416
                                                -----------       -----------
       NET EARNINGS                            $        848      $        738
                                                ===========       ===========
Earnings Per Share:
   Basic                                       $        .19      $        .17
   Diluted                                     $        .18      $        .16

     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
                                                  March 31,         March 31,
                                                      2002              2001
                                              ----    -----      ----   ----

Net earnings                                   $       848        $       738
Other comprehensive income
   Unrealized holding gains (losses)                  (152)               141
   Income tax (expense) benefit related to
     items of other comprehensive income                52              (48)
                                                ----------         ---------

Comprehensive income                           $       748        $       831
                                                ==========         ==========






































     See accompanying notes to condensed consolidated financial statements.
                                     - 3 -  (Continued)

                United Financial Holdings, Inc. and Subsidiaries
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (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                           -            -           -          -
Accumulated other
   comprehensive income            -            -           -          -
Return of shares in
   settlement of
   acquisition                  (143)           -           -          -
   contingency             ---------    ---------    ---------   --------

Balance at March 31,
   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                     -               -          848        848
Dividends on Common
   Stock                         -               -         (267)      (267)
Dividends on Preferred
   Stock                         -               -          (24)       (24)
Accumulated other
   comprehensive income          -            (100)           -       (100)
Return of shares in
   settlement of
   acquisition                   -               -            -       (143)
   contingency            ---------   --------------   ---------  ---------

Balance at March 31,
   2002                   $   (177)     $       57     $ 12,306    $26,213
                          =========   ==============   =========  =========






     See accompanying notes to condensed consolidated financial statements.
                                     - 4 -  (continued)

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

                                                     Three Months Ended
                                                   March 31,      March 31,
                                                     2002           2001
                                                 -----------     -----------
Cash flows from operating activities:
 Net earnings                                         848     $       738
 Adjustments to reconcile net earnings
  to net cash (used in) provided
  by operating activities:
    Provision for loan losses                         303             210
    Provision for depreciation and
       amortization                                   221             221
    Accretion of securities discount                   (8)            (36)
    Amortization of unearned loan fees                (60)            (75)
    Amortization of securities premiums                36               5
    Gain on sales of loans                           (200)           (230)
    (Increase) decrease in accrued interest
       receivable                                    (235)             61
    Increase in accrued interest payable              307             180
    (Increase)decrease  in other assets              (112)            539
    (Increase) decrease in other liabilities        1,202          (1,956)
                                                ---------           -------
      Net cash provided by (used in)
          operating activities                      2,302             (343)


Cash flows from investing activities:
    Purchase of FRB and FHLB stock                   (288)               -
    Net (increase) in Federal funds sold           (5,418)          (9,674)
    Principal repayments of held to maturity
      securities                                    3,439              315
    Principal repayments of available for
      sale securities                               7,367              166
    Proceeds from maturities of available
      for sale securities                           1,000                -
    Proceeds from maturities of held to
      maturity securities                           1,000            2,950
    Purchases of held to maturity securities       (6,030)            (495)
    Purchases of available for sale securities     (4,511)               -
    Proceeds from sales of loans                    1,837            2,849
    Net (increase) in loans                       (23,132)          (8,630)
    Capital expenditures                             (973)            (656)
                                                ---------        ---------
     Net cash used in investing activities        (25,709)         (13,175)








 See accompanying notes to condensed consolidated financial statements.
                                     - 5 -  (Continued)

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

                                                         Three Months Ended
                                                     March 31,       March 31,
                                                       2002            2001
                                                   -----------      -----------
Cash flows from financing activities:
   Net increase (decrease) in demand
     deposits, NOW accounts, money market
     accounts and savings accounts                 $    10,314       $  (2,398)
   Net increase in certificates of deposit              13,646          14,812
   Net (decrease) increase in securities
     sold under agreements to repurchase                (1,327)          1,858
   Dividend paid on Preferred Stock                        (24)             (2)
   Dividend paid on Common Stock                          (267)           (222)
   Purchase of Treasury Shares                               -             (60)
                                                     ---------       ---------

         Net cash provided by financing activities      22,346          13,988
                                                     ----------      ----------

Net (decrease) increase in cash and due from banks      (1,061)            470

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

Cash and due from banks at end of period             $  16,495       $   9,890
                                                     ==========      ==========


Cash paid during the period for:
   Interest                                          $   1,786       $    2,066
   Income taxes                                      $     371       $      595

Supplemental Disclosure of Non-cash Activity
--------------------------------------------
Non-cash common stock issued                         $       -       $      932

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 -

                                                            15
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  months  ended  March  31,  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 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 March 31,
                                          ------------------------------------
                                                          2002
                                        ---------------------------------------
                                                        Weighted        Per
                                                        Average         Share
                                           Earnings      Shares         Amount
                                         -----------   ----------   -----------
Basic EPS
  Net earnings available to
    Common Stockholders                 $        824    4,440,421   $       .19
                                                                     ==========

Effect of  dilutive  securities
    Incremental shares from assumed
    exercise or conversion of:
       Convertible Debt                            -            -
       Preferred Stock                             2       56,233
       Stock Options                               -      139,104
                                          ----------    ---------

Diluted EPS
  Net earnings available to Common
    Stockholders and assumed
    conversions                          $       826    4,635,758   $       .18
                                          ==========    =========    ==========


                                          For the three months ended March 31,
                                          ------------------------------------
                                                          2001
                                          --------------------------------------
                                                        Weighted        Per
                                                        Average         Share
                                           Earnings      Shares         Amount
                                        ------------   ----------   ------------
Basic EPS
  Net earnings available to
    Common Stockholders                 $        736    4,406,890   $       .17
                                                                     ==========

Effect of  dilutive  securities
    Incremental shares from assumed
    exercise or conversion of:
       Convertible Debt                            1       27,162
       Preferred Stock                             2       56,233
       Stock Options                               -        3,025
                                          ----------    ---------

Diluted EPS
  Net earnings available to Common
    Stockholders and assumed
    conversions                          $       739    4,493,310   $       .16
                                          ==========    =========    ==========




                                   - 8a - (Continued on page 8b)

(Continued from page 8a)

NOTE 4 - BUSINESS SEGMENT INFORMATION

      United Financial has three reportable segments:  Commercial Banking, which
consists of the Bank and UBGC;Trust Services, which consists of United Trust;and
Investment  Management  Services, which consists of EPW Investment Management.
Corporate and Other  includes corporate expenses such as corporate overhead,
intercompany  transactions,  and certain  goodwill  amortization (in 2001 only).
The following table presents the Company's Business Segment Information for the
three months ended March 31, 2002 and 2001, respectively (dollars in thousands):

                                   For the three months ended March 31, 2002
                           Comm'l   Investment  Trust  Corp
                           Banking  Management  Svcs   & Other     Total
                           -------  ----------  -----  --------    --------
Net Interest Income        $ 3,788  $        -  $  40  $  (309)    $  3,519
Non Interest Income            856         390    455      (87)       1,614
                           -------  ----------  -----  -------     --------
Total Revenue                4,644         390    495     (396)       5,133
Loan Loss Provision            303           -      -        -          303
Non Interest Expense         2,733         322    399       18        3,472
                           -------  ----------  -----  ---------   --------
Pretax Income (Loss)         1,608          68     96     (414)       1,358
Income Taxes (Benefit)         606          25     34     (155)         510
                           -------  ----------  -----  --------    --------
Segment Net Income (Loss)  $ 1,002  $       43  $  62  $  (259)    $    848
                           =======  ==========  =====  =======     ========

                                 For the three months ended March 31, 2001
                           Comm'l   Investment  Trust  Corp
                           Banking  Management  Svcs   & Other     Total
                           -------  ----------  -----  --------    --------
Net Interest Income        $ 2,967  $        -  $  37  $  (159)    $  2,845
Non Interest Income            602         434    421      (42)       1,415
                           -------  ----------  -----  -------     --------
Total Revenue                3,569         434    458     (201)       4,260
Loan Loss Provision            210           -      -        -          210
Non Interest Expense         2,085         366    432       13        2,896
                           -------  ----------  -----  ---------   --------
Pretax Income (Loss)         1,274          68     26     (214)       1,154
Income Taxes (Benefit)         450          25     18      (77)         416
                           -------  ----------  -----  --------    --------
Segment Net Income (Loss)  $   824  $       43  $   8  $  (137)    $    738
                           =======  ==========  =====  =======     ========













                                     - 8b -

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 MARCH 31, 2002 AND DECEMBER 31, 2001

Overview

      Total  assets of the  Company  were  $368.7  million  at March  31,  2002,
compared to $344.2 million at December 31, 2001, an increase of $24.5 million or
7.1%. This increase was primarily the result of the Company's internal growth of
earning assets (primarily 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 $44.1 million at March 31, 2002, compared to
$46.5 million at December 31, 2001, a decrease of $2.4 million or 5.2%. Included
in  investment  securities  at March 31, 2002,  were $22.8 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  $268.8  million at March 31,  2002,  compared to $247.5
million at December 31, 2001, an increase of $21.3 million or 8.6%. For the same
period, real estate mortgage loans increased by $8.1 million or 5.0%, commercial
loans  increased  by $13.1  million  or  16.7%,  and all other  loans  including
consumer  loans  increased by $0.1 million or 1.6%.  Loans net of allowance  for
loan loss and unearned  fees were $263.4  million at March 31, 2002  compared to
$242.4 million at December 31, 2001.










                                   - 9 -

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

                                        March 31, 2002       December 31, 2001
Real estate mortgage loans:
  Commercial real estate                 $     121,612          $     116,081
  One-to-four family residential                12,776                 12,980
  Multifamily residential                       14,023                 14,911
  Construction and land development             20,447                 16,796
                                         -------------          -------------
      Total real estate mortgage loans         168,858                160,768

Commercial loans                                91,571                 78,459
Consumer loans                                   6,837                  6,486
Other loans                                      1,553                  1,773
                                         -------------          -------------
  Gross loans                                  268,819                247,486
Allowances for loan losses                      (3,939)                (3,790)
Unearned fees                                   (1,468)                (1,332)
                                         -------------            -----------
      Total loans net of allowance
         and unearned fees               $     263,412          $     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.


                                     - 10 -

      The following table sets forth information  concerning the activity in the
allowance for loan losses during the periods indicated (dollars in thousands):
                                        For the three months ended
                                   March 31, 2002         March 31, 2001
Allowance at beginning of period    $       3,790          $       2,761
Charge-offs:
  Real estate loans                             -                      -
  Commercial loans                            152                      5
  Consumer loans                                6                      2
                                    -------------          -------------
      Total charge-offs                       158                      7
Recoveries:
  Real estate loans                             -                     20
  Commercial loans                              3                     10
  Consumer loans                                1                      1
                                    -------------          -------------
      Total recoveries                          4                     31
Net charge-offs                              (154)                   (24)
Provision for loan losses                     303                    210
                                    -------------          -------------
Allowance at end of period          $       3,939          $       2,995
                                    =============          =============

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):
                                   March 31, 2002          December 31, 2001
                                   --------------          -----------------
Real estate loans                    $      1,791             $      2,377
Commercial loans                              129                      186
Consumer loans                                  -                        -
                                     ------------             ------------
   Total non-accrual loans                  1,920                    2,563
Other Real Estate                             139                      141
Accruing Loans 90 days past due..              51                      164
                                     ------------             ------------
   Total nonperforming assets        $      2,110             $      2,868
                                     ============             ============
Bank Premises and Equipment
      Bank premises and equipment was $12.5 million at March 31, 2002,  compared
to $11.7 million at December 31, 2001, an increase of $.8 million or 6.8%.  This
increase  was  primarily  due to the  acquisition  of office  equipment  and the
completion of the construction of a new branch office,  less the depreciation of
the buildings and equipment and amortization of leasehold improvements.
                                     - 11 -

Deposits

      Total deposits were $306.5  million at March 31, 2002,  compared to $282.6
million at December 31, 2001, an increase of $23.9  million or 8.5%.  During the
three months ended March 31, 2002 demand  deposits  decreased $2.1 million,  NOW
and money market deposits increased $12.2 million, and savings deposits and time
deposits increased $13.9 million.

Mandatory Redeemable Capital Securities of Subsidiary Trusts

UFH Capital Trust I

     In December 1998, the Company,  through a statutory  business trust created
and owned by the Company,  issued  $6,749,600  (including  an  overallotment  of
$749,600 that closed on January 14, 1999) of 9.40%  Cumulative  Trust  Preferred
Securities  that will mature on December 10, 2028.  The principal  assets of the
statutory  business 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  $10,000,000  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 $26.2  million at March 31,  2002,  or 7.11% of
total assets,  compared to $25.9  million,  or 7.52% of total assets at December
31, 2001.  At March 31, 2002,  the  Company's  Tier I (core)  Capital  ratio was
8.81%, its Tier I Risk-based  Capital ratio was 10.38%, and its Total Risk-based
Capital ratio was 14.22%.  Management  believes  that the capital  ratios of the
Company  and  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 first  quarter 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
MARCH 31, 2002 AND 2001

Overview

      Net income for the three months ended March 31, 2002 was $848  thousand or
$0.18 per share  diluted,  compared to $738  thousand or $0.16 per share diluted
for the same  period in 2001.  On a  pre-tax  basis,  United  Trust  earned  $96
thousand in 2002 versus $26 thousand in 2001,  EPW's pre-tax  operating  profits
remained  at $68  thousand,  equal to the same  period in 2001,  and  Commercial
Banking's  pre-tax  profits  increased to $1,608  thousand from $1,274  thousand
during this same period.



                                     - 12 -

Analysis of Net Interest Income

      Interest  income  for the  three  months  ended  March  31,  2002 was $5.6
million, compared to $5.1 million for the same period in 2001, a $0.5 million or
9.8% increase.  This increase in interest income is primarily due to an increase
in earning assets,  the majority of which were loans.  Interest expense was $2.1
million for the three months ended March 31, 2002,  compared to $2.2 million for
the same  period in 2001,  a $0.1  million or 4.5%  decrease.  This  decrease is
primarily  due to a general  reduction of interest  rates on deposits  partially
offset by an increase of deposits.

Provision for Loan Losses

      For the three months ended March 31, 2002,  the  provision for loan losses
charged to expense was $303  thousand,  compared to $210  thousand  for the same
period in 2001, an increase of $93 thousand or 44.3%.  The allowance of possible
loan losses was $3.9 million at March 31, 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  March 31,  2002 was $1.6
million  compared to $1.4  million  for the same period in 2001,  an increase of
$0.2 million or 14.1%. This increase was primarily due to an increase of service
charge income on deposit accounts.

Noninterest Expense

      Total  noninterest  expense for the three  months ended March 31, 2002 was
$3.5 million  compared to $2.9 million for the same period in 2001,  an increase
of $0.6  million or 19.8%.  This  increase  was due to  increases  in salary and
benefits  expense of $383  thousand,  occupancy  expense of $75  thousand,  data
processing  expense of $18 thousand,  and furniture and equipment expense of $38
thousand.  Included in these  categories are the expenses  associated with UBGC,
which was acquired effective April 1, 2001.

LIQUIDITY

       During the three  months  ended March 31,  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 March 31, 2002, the Company had commitments to originate
loans  totaling  $26.4  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 their total transaction  accounts and 8% of their total  nontransac
tion  accounts less those  deposits of certain  public funds.


                                     - 13 -

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 funds sold and United States  securities
or securities  guaranteed by the United States.  As of March 31, 2002,  the
Commercial Banking segment had liquidity of  approximately  $62.9 million, or
approximately 20% of total deposits.

      Management  believes  the  Commercial Manking segment was in  compliance
with  all  minimum liquidity requirements that it was subject to at March 31,
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
         None.

ITEM 5.  OTHER INFORMATION
         None.

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a) Exhibits

         None.

(b) Reports on Form 8-K

         There were no reports on Form 8-K filed during the period  ending March
31, 2002.
















                                     - 14 -

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



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


































                                     - 15 -