 2013 Annual Meeting August 2013 Exhibit 99 |
 Patrick W. Bevack President and Chief Executive Officer |
 Forward-Looking Statement Disclosure 3 When used in this presentation the words or phrases “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 United Community’s market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in Home Savings’ market area, and competition, that could cause actual results to differ materially from results presently anticipated or projected. United Community cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. United Community advises readers that the factors listed above could affect United Community’s financial performance and could cause United Community’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. United Community undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made. Actual results may differ materially from our statements due to a number of risks and uncertainties, including those described in the Company’s Form 10-K for the year ended December 31, 2012 and subsequent filings. Please refer to these SEC documents for a complete list of risk factors. |
 Non-GAAP Financial Measures 4 This presentation contains financial information determined by methods other than those prescribed by accounting principles generally accepted in the United States of America ("GAAP"). Management uses these non-GAAP financial measures because it believes that they are useful for evaluating our operations and performance over periods of time, as well as in managing and evaluating our business and in discussions about our operations and performance. Management believes these non-GAAP financial measures provide users of our financial information with meaningful measures for assessing our financial results, as well as a comparison to financial results for prior periods. These non-GAAP financial measures should not be considered as a substitute for financial measures determined in accordance with GAAP and may not be comparable to other similarly titled financial measures used by other companies. A reconciliation of the differences between our non-GAAP financial measures and the most comparable GAAP measures accompanies the use of such non- GAAP financial measures within the body of this presentation. |
 Major Goals 5 Achieve termination of the Regulatory Orders at the Bank and Holding Company Establish a strong management team that works well together Improve asset quality and establish a strong credit culture Raise a sufficient amount of capital to strengthen the financials of the Company and to position us to take advantage of future opportunities Established upon being named CEO |
 Review of Financial Performance Asset Quality $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 Classified Assets ($000’s) 6 We reduced classified assets from $253.9 million to $44.9 million, a reduction of $209.0 million over the last eighteen months – Classified Assets is comprised of Classified Loans plus Real Estate Owned (REO) and repossessed assets – Classified Loans are loans that have a well-defined weakness |
 Review of Financial Performance (cont.) Asset Quality $0 $50,000 $100,000 $150,000 $200,000 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 Nonperforming Assets ($000’s) 7 We reduced nonperforming assets from $156.6 million to $40.5 million, a $116.1 million improvement over the last eighteen months – Nonperforming Assets includes Nonperforming Loans plus REO and repossessed assets – Nonperforming Loans include loans that are 90 days past due and nonaccrual loans |
 Review of Financial Performance (cont.) Stock Price Stock Price January 1, 2011 through June 30, 2013 8 The stock price improved from $1.27 per share at the end of the fourth quarter of 2011 to $4.65 at the end of the second quarter of 2013 UCFC’s market capitalization at the end of the fourth quarter of 2011 was $41.4 million, compared to $233.4 million at the end of the second quarter of 2013 $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 $5.00 1Q '11 2Q '11 3Q '11 4Q '11 1Q '12 2Q '12 3Q '12 4Q '12 1Q '13 2Q '13 |
 Review of Financial Performance (cont.) Stock Price % Price Change Compared to SNL U.S. Bank and Thrift January 1, 2011 through June 30, 2013 UCFC’s stock price performance was significantly better than the average of other banks and thrifts over the past two years |
 Top Performing Ohio Businesses Top Two-Year Returns Two-Year Return as of April 30, 2013 Source: S&P Capital IQ 0% 50% 100% 150% 200% |
 James R. Reske Chief Financial Officer and Treasurer |
 Operations 33 Branches and 9 Loan Production Offices Headquartered in Youngstown, Ohio, but its market area extends across northern Ohio and into western Pennsylvania Overview 12 |
 Major Accomplishments 2012 and 2013 YTD 13 Bulk sale of troubled assets – Home Savings successfully completed a bulk sale of a substantial amount of the Bank’s troubled loans, along with other assets, to an unrelated party on September 21, 2012 • The bulk sale lifted $92.7 million of classified assets off of the Bank’s books Completion of the capital raise – In the first half of 2013, the Company completed a $47.0 million capital raise Lifting of regulatory orders – The Bank’s Consent Order was lifted in January 2013 – The Holding Company’s Cease and Desist Order was lifted in July 2013 • Both the Bank and the Holding Company remain under informal memorandums of understanding with the regulators Overview |
 Capital Ratios Capital Adequacy at Home Savings C & D 8.0% “Well- Capitalized” 5.0% Tier 1 Leverage Ratio (Core Capital / Average Assets) Home Savings Notes: 1. The Bank C&D was issued in August 2008, and its capital requirements went into effect as of 12/31/08 2. On March 30, 2012, the C&D was terminated and the Bank was issued a Consent Order 3. On January 31, 2013, the Consent Order was lifted and the Bank entered into an MOU Total Risk-Based Capital to Risk-Weighted Assets Home Savings C & D / Consent Order/MOU 12.0% “Well- Capitalized” 10.0% 14 Capital Consent Order 9.0% MOU 8.5% Home Savings is now considered well-capitalized 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 7.49% 8.20% 8.33% 8.50% 8.68% 8.22% 8.47% 8.71% 8.23% 7.84% 8.44% 8.40% 8.13% 8.16% 8.96% 9.32% 8.37% 8.70% 9.84% 10.03% C&D (1) Consent Order (2) MOU (3) 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% 11.8% 12.1% 12.5% 12.8% 13.0% 12.8% 12.7% 13.2% 13.1% 12.5% 13.0% 13.5% 13.3% 14.6% 15.2% 16.4% 16.0% 16.2% 18.3% 19.4% C&D (1) Consent Order (2) MOU (3) |
 Review of Financial Performance UCFC Earnings Analysis (1) Earnings prior to tax, loan loss provision and other items Provision expense Goodwill charge Key Income tax UCFC’s ability to generate pre- tax, pre-provision earnings has helped to offset the effect of loan loss provision expense over the course of this credit cycle The wave of the credit cycle is demonstrated in UCFC’s provision expense Butler Wick Earnings Notes: 1. The table above contains certain financial information determined to be a presentation not in accordance with GAAP. We have provided information about significant events that occurred during the period because we believe this information is useful to both investors and management and aids in the overall understanding of their impact on the Company’s overall performance. Users should consider this financial information a supplementary tool for analysis purposes and not substitute it for GAAP net income 2. Total reflects $150,000 of AMT tax 15 ($MM): $24.1 $4.1 ($35.3) ($16.8) ($37.3) $0.2 ($20.4) $6.2 (2) 2006 2007 2008 Net Income 2009 2010 2011 2012 Bulk Sale Provision (25.3) (62.4) (9.9) (33.6) (29.4) (4.3) 39.7 31.4 26.2 24.9 9.5 (3.2) (24.7) (49.1) (28.8) 18.0 24.9 18.4 $0.9 $0.2 3.2 (0.9) (12.4) 1.2 $1.1 $2.4 $2.0 $4.9 ($70) ($60) ($50) ($40) ($30) ($20) ($10) $0 $10 $20 $30 $40 $50 2006 2007 2008 2009 2010 2011 2012 1H 2013 1H 2013 |
 Reductions in Real Estate Owned (REO) Real Estate Acquired through Foreclosure REO Inflows/Outflows: through June 30, 2013 ($MM) REO Inflows/Outflows: 2012 ($MM) 16 80 Properties 19 Properties 105 Properties 166 Properties 256 Properties 77 Properties 167 Properties 166 Properties $18.1 $0.9 ($7.8) $11.2 ($20) $0 $20 12/31/12 Balance Inflows Outflows 6/30/13 Balance $32.9 $6.0 ($20.8) $18.1 ($40) ($20) $0 $20 $40 12/31/11 Balance Inflows Outflows 12/31/12 Balance UCFC’s REO portfolio shrank from 256 properties worth $32.9 million at the end of 2011 to 166 properties worth $18.1 million at December 31, 2012 Since December 31, 2011, the Company took in 77 properties worth $6.0 million, but sold 167 properties worth $20.8 million As of December 31, 2012 ($MM): Bal. No. – Residential $6.3 75 – Construction 10.0 79 – Commercial 1.8 12 $18.1 166 UCFC’s REO portfolio shrank from 166 properties worth $18.1 million at the end of 2012 to 105 properties worth $11.2 million at June 30, 2013 Since December 31, 2012, the Company took in 19 properties worth $0.9 million, but sold 80 properties worth $7.8 million As of June 30, 2013 ($MM): Bal. No. – Residential $3.4 56 – Construction 6.9 41 – Commercial 0.9 8 $11.2 105 |
 Interest Rate Risk The Benefits of a Rising Rate Environment Impact of Immediate 200 bp Rate Increase on Next 12 Months Net Interest Income UCFC’s goal is to effectively manage interest rate risk Interest rate risk can be measured in many different ways, including the effect on net interest income due to a rise in interest rates UCFC is currently asset-sensitive As of June 30, 2013, if interest rates should suddenly rise (here, a hypothetical instantaneous 200 basis point positive parallel yield curve shift), UCFC’s projected net interest income would increase by approximately $3.2 million 17 ($000) |
 Earning Assets Reduction of Higher-Risk Asset Classes UCFC’s mix of earning assets has changed significantly over the course of the economic crisis – Higher-risk lending categories have declined – Securities make up a larger portion of earning assets UCFC’s Deferred Tax Asset (DTA) was $28.8 million at December 31, 2012 – The DTA is revalued annually – Updated valuations would take into account the tax effect of any unrealized loss in the securities portfolio 18 1-4 Family $922.3, 37% Consumer $343.9, 14% Comm’l RE $578.9, 23% Construction $279.9, 11% Commercial $94.5, 4% 1-4 Family $576.3, 34% Commercial $23.6, 1% Construction $35.3, 2% Consumer $195.4, 12% Comm’l RE $187.6, 11% Notes: 1. The loan segments are presented net of the allowance for loan losses. Loans available for sale are included in the 1-4 family segment along with all deferred fees 2. The securities segment is inclusive of AFS securities along with fed funds sold and FHLB stock Securities and Other (2) $666.8, 40% Securities and Other (2) $263.9, 11% Interest-earning Assets Total Earning Assets as of 12/31/2008 (1) Total: $2.5 billion Total Earning Assets as of 6/30/2013 (1) Total: $1.7 billion |
 UCFC has shifted its funding mix away from higher-cost time deposits in favor of lower-cost core deposits Total cost of deposits was 0.51% at June 30, 2013 Deposits & Borrowings as of 12/31/2008 Total Deposits: $1.9 billion Total Borrowings: $462.9 million Deposits & Borrowings as of 6/30/13 Total Deposits: $1.5 billion Total Borrowings: $140.6 million Interest-bearing Liabilities Note: 1. Includes term FHLB borrowings and term repos 19 Deposits and Borrowings Reduced Reliance on Time Deposits while Increasing Core Deposits Total Checking $205.7, 9% Money Market $273.4, 11% Savings $181.6, 8% CDs $1,225.3, 52% Term Borrowings (1) $281.2, 12% Overnight Borrowings $181.7, 8% Term Borrowings (1) $140.6, 9% CDs $526.1, 34% Savings $273.0, 17% Money Market $334.2, 21% Total Checking $300.5, 19% Rate Schedule Total Checking 0.39% Term Borrowings 4.28% Money Market 2.76% Overnight Borrowings 2.07% Savings 0.45% CDs 4.29% Cost of Deposits: 3.19% Cost of Funds: 3.27% Rate Schedule Cost of Deposits: 0.51% Cost of Funds: 0.86% Total Checking 0.05% Term Borrowings 4.28% Money Market 0.27% Savings 0.11% CDs 1.23% |
 United Community Financial Corp. NASDAQ: UCFC www.UCFCONLINE.com www.HOMESAVINGS.com Headquarters 275 West Federal Street Youngstown, Ohio 44503 20 Questions |