United Community Financial (UCFC) 8-K Results of Operations and Financial Condition

Exhibit 99

275 West Federal Street

Youngstown, Ohio 44503-1203

FOR IMMEDIATE RELEASE

Media Contact:	Investor Contact:
Colleen Scott	James R. Reske
Vice President of Marketing	Chief Financial Officer
Home Savings	United Community Financial Corp.
(330) 742-0638	(330) 742-0592
cscott@homesavings.com	jreske@ucfconline.com

United Community Financial Corp.

Announces Fourth Quarter Income of $7.9 million;

Improvements in Capital Ratios and Asset Quality

YOUNGSTOWN, Ohio (March 15, 2012) – United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), today reported consolidated net income of $7.9 million, or $0.25 per diluted share, for the three months ended December 31, 2011. This compares to a net loss of $17.3 million, or $(0.56) per diluted share, for the three months ended December 31, 2010. Current earnings have been positively impacted by the successful completion of the sale of four branches and gains recognized on the sale of securities. Fourth quarter earnings also benefited from the need for only $2.4 million in loan loss provision expense, down from $22.6 million in the fourth quarter of 2010. The Company also reported net income of $230,000, or $0.01 per diluted share, for the year ended December 31, 2011, as compared to a net loss of $37.3 million, or $(1.22) per diluted share, for the year ended December 31, 2010.

Selected fourth quarter results:

• Delinquent loans declined $4.0 million from the prior quarter to $126.9 million

• Nonperforming loans declined $11.0 million from the prior quarter to $123.1 million

• Nonperforming assets declined $15.8 million from the prior quarter to $156.6 million

4

• Home Savings’ Tier 1 leverage ratio of 8.61% and the total risk based capital ratio of 14.57% both reflected increases from the prior quarter

• Tangible book value per share at December 31, 2011 was $5.78

Patrick W. Bevack, President and Chief Executive Officer of UCFC and Home Savings, commented that, “The year 2011 was a year of progress. During the year, not only did UCFC return to profitability, but more significantly, Home Savings has positioned itself for the future with very positive improvement in asset quality measures. Delinquent loans, nonperforming loans and nonperforming assets are all headed in the right direction.” Bevack further commented, “I was also pleased that the Company was successful in attracting additional capital from an investor in the fourth quarter.”

Asset Quality

Delinquent loans declined to $126.9 million at December 31, 2011, down $68.3 million, or 35.0%, from their high point of $195.2 million at March 31, 2010. Nonperforming loans at December 31, 2011 fell to $123.1 million, down $32.0 million, or 20.7%, from their high point of $155.1 million at June 30, 2010. Nonperforming assets dropped to $156.6 million at December 31, 2011, down $40.6 million, or 20.6%, from their high point of $197.2 million at June 30, 2010.

The provision for loan losses was $2.4 million for the fourth quarter of 2011, as compared to $22.6 million for the same quarter in 2010. For the year ending December 31, 2011, the provision for loan losses was $24.7 million, as compared to $62.4 million for the year ended December 31, 2010. The overall improvement in provision expense is the result of a reduced level of outstanding loans as well as a lower level of charge-offs in the fourth quarter and all of 2011.

Net Interest Income and Margin

The average net interest margin was 3.04% for the fourth quarter of 2011 compared with 3.17% for the fourth quarter of 2010. The average net interest margin was 3.28% for the year ended 2011 compared with 3.30% for 2010.

Net interest income for the three months ended December 31, 2011 was $14.8 million compared to $16.9 million for the three months ended December 31, 2010. Total interest income decreased $3.0 million in the fourth quarter of 2011 compared to the fourth quarter of 2010. The decrease is a result of Home Savings recognizing $3.3 million less in interest on net loans due to a $280.0 million decline in the average balance of outstanding loans.

Total interest expense decreased $997,000 for the quarter ended December 31, 2011, as compared to the same quarter last year. The change was primarily attributable to a reduction of $851,000 in interest paid on deposits, which is a result of a shift in deposit balances from certificates of deposit to relatively lower cost non-time deposits.

5

Net interest income for the twelve months ended December 31, 2011, was $65.2 million, compared to $71.4 million for the twelve months ended December 31, 2010. Total interest income decreased $14.4 million in 2011 compared to 2010. The decrease is primarily a result of Home Savings recognizing $13.2 million less in interest on net loans because of a $244.6 million reduction in the average balance of outstanding loans. Home Savings also experienced a decrease in interest income on net loans of $2.0 million due to lower rates.

Total interest expense decreased $8.2 million for the twelve months ended December 31, 2011, as compared to the same period last year. This change was due primarily to reductions of $7.7 million in interest paid on deposits.

Noninterest Income

Noninterest income increased in the fourth quarter of 2011 to $12.0 million, as compared to $6.5 million in the fourth quarter of 2010. The largest impact on the comparison was the sale of four northwest branches (as previously disclosed), which closed in the fourth quarter of 2011. Home Savings recognized a $4.2 million gain on that sale. Additionally, Home Savings also sold available for sale securities in the fourth quarter of 2011, producing a gain of $5.1 million. The gains recognized were offset partially by lower service fees and by a valuation allowance established on Home Savings’ mortgage servicing rights, both in the fourth quarter of 2011. A similar valuation allowance was not required in 2010.

Noninterest income increased in 2011 to $23.2 million, as compared to $21.9 million in 2010. Two large transactions affect the comparison of noninterest income year over year. First, the branch sale mentioned above generated a net gain of $4.2 million. Secondly, Home Savings sold $70.4 million in mortgage loans in the second quarter of 2011. This transaction produced a gain of $2.7 million for the Bank. Both of these transactions were partially offset by lower service fees and other charges recognized in 2011.

Noninterest Expense

Noninterest expense was $16.5 million in the fourth quarter of 2011, compared to $18.4 million in the fourth quarter of 2010. The change was driven by lower expenses associated with the maintenance of real estate owned and other repossessed assets during the fourth quarter of 2011, compared to the same quarter last year. Also positively affecting the comparison, Home Savings recognized fewer expenses associated with deposit insurance premiums. Regulatory changes revised the method for calculating deposit insurance premiums and caused those expenses to decline.

Noninterest expense was $63.5 million in 2011, compared to $68.3 million in 2010. The decline was caused primarily by the recognition of lower expenses associated with real estate owned and other repossessed assets acquired in the settlement of loans. Lower salaries and benefits paid to employees along with lower deposit insurance premiums also contributed to the change.

6

Capital and Book Value

Home Savings’ Tier 1 leverage ratio was 8.61% as of December 31, 2011, compared to 8.13% at September 30, 2011. The Bank’s total risk-based capital ratio was 14.57% at December 31, 2011, as compared to 13.25% at September 30, 2011. Tangible book value per share at December 31, 2011 was $5.78, down from $5.88 at September 30, 2011.

Home Savings is a wholly-owned subsidiary of the Company and operates 34 full-service banking offices and eight loan production offices located throughout Ohio and western Pennsylvania. Additional information on the Company and Home Savings may be found on the Company’s web site: www.ucfconline.com.

###

When used in this press release, the words or phrases “believes,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties, including changes in economic conditions in the Company’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company’s market area, and competition that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. The Company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

7

UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	December 31, 2011			December 31, 2010
	(Dollars in thousands)
Assets:
Cash and deposits with banks	$	26,573		$	18,627
Federal funds sold and other		27,563			18,480
Total cash and cash equivalents		54,136			37,107
Securities:
Available for sale, at fair value		459,598			362,042
Loans held for sale		12,727			10,870
Loans, net of allowance for loan losses of $42,271 and $50,883, respectively		1,379,276			1,649,486
Federal Home Loan Bank stock, at cost		26,464			26,464
Premises and equipment, net		19,175			22,076
Accrued interest receivable		6,741			7,720
Real estate owned and other repossessed assets		33,486			40,336
Core deposit intangible		346			485
Cash surrender value of life insurance		28,354			27,303
Other assets		10,384			13,409
Total assets	$	2,030,687		$	2,197,298
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Interest bearing	$	1,440,448		$	1,551,210
Non-interest bearing		148,049			138,571
Total deposits		1,588,497			1,689,781
Borrowed funds:
Federal Home Loan Bank advances		128,155			202,818
Repurchase agreements and other		90,618			97,797
Total borrowed funds		218,773			300,615
Advance payments by borrowers for taxes and insurance		23,282			20,668
Accrued interest payable		610			809
Accrued expenses and other liabilities		10,780			9,370
Total liabilities		1,841,942			2,021,243
Shareholders’ Equity:
Preferred stock-no par value; 1,000,000 shares authorized and unissued		—			—
Common stock-no par value; 499,000,000 shares authorized; 37,804,457 shares issued and 32,597,762 and 30,937,704 shares, respectively, outstanding		128,031			142,318
Retained earnings		110,681			111,049
Accumulated other comprehensive income (loss)		5,032			(4,778	)
Treasury stock, at cost, 5,206,695 and 6,866,753 shares, respectively		(54,999	)		(72,534	)
Total shareholders’ equity		188,745			176,055
Total liabilities and shareholders’ equity	$	2,030,687		$	2,197,298

UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended December 31,						For the Twelve Months Ended December 31,
	2011			2010			2011			2010
	(Dollars in thousands, except per share data)
Interest income
Loans	$	18,801		$	22,063		$	82,290		$	97,413
Loans held for sale		272			167			542			415
Securities:
Available for sale		3,102			3,011			12,366			11,727
Federal Home Loan Bank stock dividends		267			267			1,125			1,158
Other interest earning assets		29			10			64			35
Total interest income		22,471			25,518			96,387			110,748
Interest expense
Deposits		5,957			6,808			24,341			32,062
Federal Home Loan Bank advances		748			881			3,162			3,588
Repurchase agreements and other		928			941			3,709			3,737
Total interest expense		7,633			8,630			31,212			39,387
Net interest income		14,838			16,888			65,175			71,361
Provision for loan losses		2,386			22,551			24,658			62,427
Net interest income after provision for loan losses		12,452			(5,663	)		40,517			8,934
Non-interest income
Non-deposit investment income		348			319			1,398			1,619
Service fees and other charges		1,172			2,631			4,416			6,369
Net gains (losses):
Securities available for sale		5,133			1,508			8,633			8,803
Other -than-temporary loss on equity securities
Total impairment loss		(16	)		(14	)		(89	)		(58	)
Loss recognized in other comprehensive income		—			—			—			—
Net impairment loss recognized in earnings		(16	)		(14	)		(89	)		(58	)
Mortgage banking income		1,243			1,909			5,675			4,365
Real estate owned and other repossessed assets		(1,184	)		(1,611	)		(6,165	)		(6,123	)
Gain on retail branch sale		4,154			—			4,154			1,387
Other income		1,171			1,731			5,203			5,531
Total non-interest income		12,021			6,473			23,225			21,893
Non-interest expense
Salaries and employee benefits		7,863			7,852			31,160			32,699
Occupancy		794			890			3,409			3,583
Equipment and data processing		1,680			1,678			6,590			6,627
Franchise tax		254			499			1,495			2,011
Advertising		354			286			820			860
Amortization of core deposit intangible		33			40			139			176
Deposit insurance premiums		1,282			1,375			4,855			5,686
Professional fees		1,132			1,185			3,677			4,106
Real estate owned and other repossessed asset expenses		766			2,313			2,891			4,971
Other expenses		2,387			2,254			8,476			7,612
Total non-interest expenses		16,545			18,372			63,512			68,331
Income (loss) before income taxes		7,928			(17,562	)		230			(37,504	)
Income tax expense (benefit)		—			(231	)		—			(231	)
Net income (loss)	$	7,928		$	(17,331	)	$	230		$	(37,273	)
Earnings (loss) per share
Basic	$	0.25		$	(0.56	)	$	0.01		$	(1.22	)
Diluted		0.25			(0.56	)		0.01			(1.22	)

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
	(In thousands, except per share data)
Financial Data
Total assets	$	2,030,687		$	2,071,001		$	2,102,419		$	2,115,080		$	2,197,298
Total loans, net		1,379,276			1,437,575			1,509,399			1,620,094			1,649,486
Total securities		459,598			416,460			392,749			289,388			362,042
Total deposits		1,588,497			1,687,941			1,697,797			1,712,523			1,689,781
Total shareholders’ equity		188,745			182,697			183,142			177,371			176,055
Net interest income		14,838			15,625			17,058			17,654			16,888
Provision for loan losses		2,386			11,836			8,244			2,192			22,551
Noninterest income, excluding other-than-temporary impairment losses		12,037			1,951			5,328			3,998			6,487
Net impairment losses recognized in earnings		16			35			28			10			14
Noninterest expense		16,545			14,569			15,910			16,488			18,372
Income tax expense (benefit)		—			—			—			—			(231	)
Net income (loss)		7,928			(8,864	)		(1,796	)		2,962			(17,331	)
Share Data
Basic earnings (loss) per share	$	0.25		$	(0.29	)	$	(0.06	)	$	0.10		$	(0.56	)
Diluted earnings (loss) per share		0.25			(0.29	)		(0.06	)		0.10			(0.56	)
Book value per share		5.79			5.90			5.91			5.73			5.69
Tangible book value per share		5.78			5.88			5.90			5.72			5.67
Market value per share		1.27			1.35			1.27			1.33			1.34
Shares outstanding at end of period		32,598			30,984			30,969			30,951			30,938
Weighted average shares outstanding—basic		31,295			30,953			30,932			30,917			30,906
Weighted average shares outstanding—diluted		31,295			30,953			30,932			30,919			30,906
Key Ratios
Return on average assets		1.53	%		-1.69	%		-0.34	%		0.55	%		-3.06	%
Return on average equity		16.97	%		-18.98	%		-3.95	%		6.56	%		-33.91	%
Net interest margin		3.04	%		3.18	%		3.39	%		3.49	%		3.17	%
Efficiency ratio		87.96	%		79.67	%		67.49	%		77.12	%		78.08	%
Capital Ratios
Tier 1 leverage ratio		8.61	%		8.13	%		8.40	%		8.44	%		7.84	%
Tier 1 risk-based capital ratio		13.30	%		11.98	%		12.20	%		11.74	%		11.26	%
Total risk-based capital ratio		14.57	%		13.25	%		13.47	%		13.02	%		12.54	%
Equity to assets		9.29	%		8.82	%		8.71	%		8.39	%		8.01	%
Tangible common equity to tangible assets		9.28	%		8.80	%		8.69	%		8.37	%		7.99	%

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
	(Dollars in thousands)
Loan Portfolio Composition
Real Estate Loans
One-to four-family residential	$	667,375		$	677,708		$	693,435		$	762,065		$	757,426
Multi-family residential*		120,991			125,370			129,767			131,246			135,771
Nonresidential*		276,198			303,165			307,702			328,772			331,390
Land*		23,222			22,172			25,515			25,624			25,138
Construction Loans
One-to four-family residential and land development		59,339			66,761			87,827			88,075			108,583
Multi-family and nonresidential*		4,528			4,528			5,524			11,201			15,077
Total real estate loans		1,151,653			1,199,704			1,249,770			1,346,983			1,373,385
Consumer Loans		238,397			245,367			266,075			272,478			279,453
Commercial Loans		30,146			35,277			38,354			45,772			46,304
Total Loans		1,420,196			1,480,348			1,554,199			1,665,233			1,699,142
Less:
Allowance for loan losses		42,271			44,162			46,223			46,415			50,883
Deferred loan costs, net		(1,351	)		(1,389	)		(1,423	)		(1,276	)		(1,227	)
Total		40,920			42,773			44,800			45,139			49,656
Loans, net	$	1,379,276		$	1,437,575		$	1,509,399		$	1,620,094		$	1,649,486

* Such categories are considered commercial real estate

	At or for the quarters ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
	(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts	$	119,298		$	120,115		$	112,412		$	110,711		$	110,092
Non-interest bearing checking accounts		148,049			152,577			138,752			144,362			138,571
Total checking accounts		267,347			272,692			251,164			255,073			248,663
Savings accounts		234,828			249,426			245,838			234,295			218,946
Money market accounts		314,907			327,751			322,955			318,395			311,692
Total non-time deposits		817,082			849,869			819,957			807,763			779,301
Retail certificates of deposit		771,415			838,073			877,840			904,760			910,480
Total certificates of deposit		771,415			838,073			877,840			904,760			910,480
Total deposits	$	1,588,497		$	1,687,942		$	1,697,797		$	1,712,523		$	1,689,781
Certificates of deposit as a percent of total deposits		48.56	%		49.65	%		51.70	%		52.83	%		53.88	%

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
	(Dollars in thousands)
Allowance For Loan Losses
Beginning balance	$	44,162		$	46,223		$	46,415		$	50,883		$	40,884
Provision		2,386			11,836			8,244			2,192			22,551
Net chargeoffs		(4,277	)		(13,897	)		(8,436	)		(6,660	)		(12,552	)
Ending balance	$	42,271		$	44,162		$	46,223		$	46,415		$	50,883
Net Charge-offs
Real Estate Loans
One-to four-family	$	366		$	1,380		$	501		$	924		$	1,483
Multi-family		203			14			1,451			163			1,819
Nonresidential		975			3,693			1,873			1,038			6,923
Land		217			281			233			504			284
Construction Loans
One-to four-family residential and land development		1,874			6,737			1,159			2,295			669
Multi-family and nonresidential		—			—			101			—			(1	)
Total real estate loans		3,635			12,105			5,318			4,924			11,177
Consumer Loans		493			864			642			856			639
Commercial Loans		149			928			2,476			880			736
Total	$	4,277		$	13,897		$	8,436		$	6,660		$	12,552
	At or for the quarters ended
	December 31, 2011			September 30, 2011			June 30, 2011			March 31, 2011			December 31, 2010
	(Dollars in thousands)
Nonperforming Loans
Real Estate Loans
One-to four family residential	$	26,637		$	27,250		$	28,776		$	29,062		$	27,417
Multi-family residential		5,860			6,517			6,414			8,239			10,983
Nonresidential		42,902			44,243			36,382			37,353			39,838
Land		11,142			11,655			8,316			6,722			5,188
Construction Loans
One-to four-family residential and land development		27,104			31,166			43,389			46,139			44,021
Multi-family and nonresidential		—			—			382			382			2,414
Total real estate loans		113,645			120,831			123,659			127,897			129,861
Consumer Loans		6,620			5,890			5,781			4,224			3,725
Commercial Loans		2,830			7,361			9,650			13,735			5,944
Total Loans	$	123,095		$	134,082		$	139,090		$	145,856		$	139,530
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status	$	104,812		$	102,890		$	122,856		$	112,705		$	117,498
Past due 90 days and still accruing		39			3			1,121			2,868			6,330
Past due 90 days		104,851			102,893			123,977			115,573			123,828
Past due less than 90 days and on nonaccrual		18,244			31,189			15,112			30,283			15,702
Total Nonperforming Loans		123,095			134,082			139,089			145,856			139,530
Other Real Estate Owned		32,946			37,697			43,009			42,386			39,914
Repossessed Assets		540			619			676			487			422
Total Nonperforming Assets	$	156,581		$	172,398		$	182,774		$	188,729		$	179,866
Total Troubled Debt Restructured Loans
Accruing	$	33,146		$	30,784		$	30,546		$	30,129		$	33,331
Non-accruing		17,752			16,932			28,066			24,420			11,240
Total	$	50,898		$	47,716		$	58,612		$	54,549		$	44,571