United Community Financial (UCFC) 8-K Ucfc Announces Net Income of $3.7 Million

EXHIBIT 99

275 West Federal Street

Youngstown, Ohio 44503-1203

FOR IMMEDIATE RELEASE

Media Contact:	Investor Contact:
Colleen Scott	Gary M. Small
Vice President of Marketing	President and Chief Executive Officer
Home Savings	United Community Financial Corp.
(330) 742-0638	(330) 742-9823
cscott@homesavings.com

UCFC ANNOUNCES NET INCOME OF $3.7 MILLION

• Return on average assets was 0.80% and return on average equity was 5.99% for the quarter

• Annualized net loan growth, including loans held for sale, was 10.6% for the first quarter

• Annualized deposit growth was 17.5% for the first quarter

• Net interest margin increased to 3.24% for the first quarter of 2015 from 3.16% from the previous quarter

• Non-interest income increased 41.8%, or $1.2 million

• Efficiency ratio improved to 70.1%

• UCFC declares a dividend of $0.01 per common share

YOUNGSTOWN, Ohio (April 21, 2015) – United Community Financial Corp. (Company) (Nasdaq: UCFC), parent company of The Home Savings and Loan Company of Youngstown, Ohio (Home Savings), announced today that net income for the quarter ended March 31, 2015 totaled $3.7 million, or $.074 per diluted common share, compared to $2.1 million or $0.041 per common share for the quarter ended March 31, 2014.

Gary M. Small, President and Chief Executive Officer of United Community and Home Savings, commented that, “Performance for the first quarter was in line with our expectations and we were very pleased with the continued improvement in pre-tax earnings, topping $5.5 million for the quarter. The results were driven by a powerful combination of strong loan and deposit growth, meaningful improvement in fee income, and a continuous focus on expense management. I expect these themes to be sustained going forward as the entire Home Savings team is very focused on delivering a very strong 2015.”

1

Total Loans

Total loans, including loans held for sale, increased $30.9 million to $1.2 billion at March 31, 2015 compared to December 31, 2014. The increase was driven by a 7.8% increase, or $19.6 million, in commercial loans during the first quarter of 2015. Unfunded commercial loan commitments remain strong at approximately $60.0 million at the end of the first quarter of 2015. Residential loans, including residential loans held for sale, increased 1.4%, or $10.9 million.

Total Deposits

Total deposits increased $58.9 million to $1.4 billion at March 31, 2015 compared to $1.3 billion at December 31, 2014. Total non-time deposits increased 7.1% which can be substantially attributed to Home Savings’ planned expansion efforts in attracting public funds.

First Quarter Results

Net Interest Income and Margin

Net interest income was $13.9 million in the first quarter of 2015 up from the $12.6 million recorded in the first quarter of 2014 and $13.4 million recorded in the previous quarter. Net interest margin was 3.24% for the first quarter of 2015 compared to 3.07% in the first quarter of 2014, and increased from the 3.16% net interest margin recorded in the previous quarter. The net interest margin is being positively impacted by the 2014 modification of a FHLB advance and the prepayment of two repurchase agreements.

Provision for Loan Losses

The Company recognized a negative provision for loan losses of $184,000 in the first quarter of 2015 compared to $33,000 of provision expense in first quarter of 2014, and $194,000 of provision expense in the previous quarter. Home Savings continues to experience positive trends in the loan portfolio’s asset quality metrics. This, combined with positive economic conditions has led to the negative loan loss provision in the first quarter of 2015. The volume of net chargeoffs declined during the quarter as compared to the same quarter last year and the previous quarter. At the end of the first quarter, net chargeoffs to average outstanding loans was 10 basis points on an annualized basis. This compares favorably to an average of 20 basis points over the previous four quarters.

Non-Interest Income

Non-interest income was $4.1 million in the first quarter of 2015 compared to $3.2 million in the first quarter of 2014 and up from $2.9 million in the previous quarter. This change was primarily attributable to an increase in the volume of loans sold into the secondary market. Additionally, Home Savings was able to realize benefit from increased pricing related to 2015 production.

Non-Interest Expense

Total non-interest expense was $12.7 million in the first quarter of 2015, an increase of $755,000 over the fourth quarter of 2014 when adjusted for a $2.0 million prepayment penalty that occurred at that time. The $755,000 increase is primarily reflective of the cost of funding revenue-producing initiatives. Total non-interest expense also decreased $862,000 from the $13.5 million reported in the first quarter of 2014. All major expense categories declined as a result of the successful efforts in monitoring and managing expenses.

2

Asset Quality

For the first quarter of 2015, the allowance for loan loss as a percentage of total loans was 1.45% at March 31, 2015 compared with 1.52% at December 31, 2014 and 1.90% at March 31, 2014. Measures of asset quality continued to improve during the first quarter of 2015. Delinquencies continue to decline along with nonperforming assets and nonperforming loans.

Dividend to be Paid

The Board of Directors declared a quarterly cash dividend of $0.01 per common share payable May 15, 2015 to shareholders of record at the close of business May 1, 2015.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, April 22, 2015, at 10:00 a.m. ET., to provide an overview of the Company’s first quarter 2015 results and highlights. The conference call may be accessed by calling 1-877-272-7661 ten minutes prior to the start time. Please ask to be joined into the United Community Financial Corp. (UCFC) call. Additionally, a live webcast may be accessed from the Company’s website www.ucfconline.com. Click on1st Quarter 2015 Conference Call on our corporate profile page to join the webcast.

United Community Financial Corp.

Home Savings is a wholly-owned subsidiary of the Company and operates 32 full-service banking offices and nine 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”, “will have”, “can expect” 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.

3

UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	March 31,			December 31,
	2015			2014
	(Dollars in thousands)
Assets:
Cash and deposits with banks	$	22,197		$	21,152
Federal funds sold		19,468			11,828
Total cash and cash equivalents		41,665			32,980
Securities:
Available for sale, at fair value		492,412			499,790
Loans held for sale		31,243			20,730
Loans, net of allowance for loan losses of $17,221 and $17,687		1,168,434			1,148,093
Federal Home Loan Bank stock, at cost		18,068			18,068
Premises and equipment, net		20,790			21,002
Accrued interest receivable		5,208			5,763
Real estate owned and other repossessed assets		3,119			3,467
Core deposit intangible		70			84
Cash surrender value of life insurance		46,733			46,401
Other assets		32,878			37,172
Total assets	$	1,860,620		$	1,833,550
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Interest bearing	$	1,207,232		$	1,159,871
Non-interest bearing		199,512			187,965
Total deposits		1,406,744			1,347,836
Borrowed funds:
Federal Home Loan Bank advances		152,389			186,194
Repurchase agreements and other		30,552			30,558
Total borrowed funds		182,941			216,752
Advance payments by borrowers for taxes and insurance		14,529			19,904
Accrued interest payable		219			185
Accrued expenses and other liabilities		9,083			8,738
Total liabilities		1,613,516			1,593,415
Shareholders’ Equity:
Preferred stock-no par value; 1,000,000 shares authorized and no shares outstanding		—			—
Common stock-no par value; 499,000,000 shares authorized; 54,138,910 shares issued and 49,309,412 and 49,239,004 shares, respectively, outstanding		173,923			174,385
Retained earnings		131,238			128,512
Accumulated other comprehensive loss		(16,108	)		(19,998	)
Treasury stock, at cost, 4,829,498 and 4,899,906 shares, respectively		(41,949	)		(42,764	)
Total shareholders’ equity		247,104			240,135
Total liabilities and shareholders’ equity	$	1,860,620		$	1,833,550

4

UNITED COMMUNITY FINANCIAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	For the Three Months Ended
	March 31,			December 31,			March 31,
	2015			2014			2014
	(Dollars in thousands, except per share data)
Interest income
Loans	$	12,691		$	12,640		$	12,122
Loans held for sale		294			217			49
Securities:
Available for sale		2,861			2,946			3,241
Federal Home Loan Bank stock dividends		182			182			267
Other interest earning assets		6			7			26
Total interest income		16,034			15,992			15,705
Interest expense
Deposits		1,533			1,583			1,677
Federal Home Loan Bank advances		305			443			518
Repurchase agreements and other		316			615			908
Total interest expense		2,154			2,641			3,103
Net interest income		13,880			13,351			12,602
Provision for loan losses		(184	)		194			33
Net interest income after provision for loan losses		14,064			13,157			12,569
Non-interest income
Non-deposit investment income		292			259			341
Service fees and other charges
Mortgage servicing fees		674			684			689
Deposit related fees		1,065			1,051			1,198
Mortgage servicing rights valuation		(161	)		(54	)		(1	)
Mortgage servicing rights amortization		(443	)		(428	)		(392	)
Other service fees		17			17			—
Net gains (losses):
Securities available for sale		11			82			3
Mortgage banking income		1,553			(30	)		612
Real estate owned and other repossessed assets charges, net		(90	)		(172	)		(383	)
Card fees		816			893			772
Other income		384			603			385
Total non-interest income		4,118			2,905			3,224
Non-interest expense
Salaries and employee benefits		7,176			6,683			7,580
Occupancy		918			847			933
Equipment and data processing		1,672			1,918			1,798
Financial institutions tax		326			201			198
Advertising		142			221			189
Amortization of core deposit intangible		14			16			19
Prepayment penalty		—			2,013			—
FDIC assessment		326			341			253
Other insurance premiums		84			85			137
Professional fees
Legal and consulting fees		217			85			161
Other professional fees		376			381			392
Real estate owned and other repossessed asset expenses		141			92			213
Other expenses		1,289			1,056			1,670
Total non-interest expenses		12,681			13,939			13,543
Income before income taxes		5,501			2,123			2,250
Income tax expense (benefit)		1,815			(685	)		156
Net income	$	3,686		$	2,808		$	2,094
Earnings per common share
Basic	$	0.075		$	0.057		$	0.042
Diluted		0.074			0.056			0.041

5

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
				(Dollars in thousands, except per share data)
Financial Data
Total assets	$	1,860,620		$	1,833,550		$	1,801,540		$	1,789,939		$	1,749,144
Total loans, net		1,168,434			1,148,093			1,119,955			1,086,771			1,060,901
Total securities		492,412			499,790			507,125			516,637			517,388
Total deposits		1,406,744			1,347,836			1,346,377			1,375,474			1,398,067
Total shareholders’ equity		247,104			240,135			233,706			235,049			189,829
Net interest income		13,880			13,351			12,725			12,741			12,602
(Recovery) provision for loan losses		(184	)		194			116			(1,614	)		33
Noninterest income		4,118			2,905			4,174			3,438			3,224
Noninterest expense		12,681			13,939			14,252			14,226			13,543
Income tax expense (benefit)		1,815			(685	)		(369	)		(38,837	)		156
Net income		3,686			2,808			2,900			42,404			2,094
Share Data
Basic earnings per common share	$	0.075		$	0.057		$	0.058		$	0.839		$	0.042
Diluted earnings per common share		0.074			0.056			0.058			0.835			0.041
Book value per common share		5.01			4.88			4.70			4.66			3.76
Tangible book value per common share		5.01			4.88			4.70			4.66			3.76
Market value per common share		5.46			5.37			4.68			4.13			3.92
Common shares outstanding at end of period		49,309			49,239			49,682			50,452			50,422
Weighted average shares outstanding—basic		49,022			49,244			49,698			50,274			50,196
Weighted average shares outstanding—diluted		49,295			49,531			49,958			50,495			50,451
Key Ratios
Return on average assets(1)		0.80	%		0.62	%		0.66	%		9.67	%		0.48	%
Return on average equity(2)		5.99	%		4.70	%		4.99	%		84.84	%		4.52	%
Net interest margin		3.24	%		3.16	%		3.06	%		3.09	%		3.07	%
Efficiency ratio		70.07	%		72.85	%(3)		76.55	%(3)		87.77	%		83.45	%
Nonperforming loans to total loans, end of period		1.72	%		1.78	%		1.85	%		1.87	%		2.17	%
Nonperforming assets to total assets, end of period		1.25	%		1.30	%		1.40	%		1.39	%		1.58	%
Allowance for loan loss as a percent of loans, end of period		1.45	%		1.52	%		1.59	%		1.65	%		1.90	%
Delinquent loans to total loans, end of period		1.66	%		1.82	%		2.10	%		1.86	%		2.07	%

⁽¹⁾  Net income divided by average total assets

⁽²⁾  Net income divided by average total equity

⁽³⁾  Excludes penalty on the prepayment of repurchase agreements

6

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
	(Dollars in thousands)
Loan Portfolio Composition
Commercial loans
Multi-family	$	63,597		$	60,546		$	56,445		$	52,938		$	54,233
Owner/nonowner occupied commercial real estate		132,305			121,595			123,260			122,066			125,796
Land		9,437			9,484			9,487			9,635			9,829
Construction		11,030			16,064			4,667			1,010			207
Commercial and industrial		54,036			45,222			39,853			39,127			40,013
Total		270,405			252,911			233,712			224,776			230,078
Residential mortgage loans
Real estate		696,387			694,105			669,270			645,211			610,879
Construction		37,293			37,113			52,735			51,974			55,082
Total		733,680			731,218			722,005			697,185			665,961
Consumer loans
Consumer		180,735			180,754			181,474			182,027			184,409
Total		180,735			180,754			181,474			182,027			184,409
Total loans		1,184,820			1,164,883			1,137,191			1,103,988			1,080,448
Less:
Allowance for loan losses		17,221			17,687			18,132			18,264			20,554
Deferred loan costs, net		(835	)		(897	)		(896	)		(1,047	)		(1,007	)
Total		16,386			16,790			17,236			17,217			19,547
Total loans, net		1,168,434			1,148,093			1,119,955			1,086,771			1,060,901
Loans held for sale, net		31,243			20,730			10,567			9,290			4,230
Total loans	$	1,199,677		$	1,168,823		$	1,130,522		$	1,096,061		$	1,065,131
	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
	(Dollars in thousands)
Deposit Portfolio Composition
Checking accounts
Interest bearing checking accounts	$	184,029		$	137,511		$	131,266		$	133,999		$	136,031
Non-interest bearing checking accounts		199,512			187,965			181,631			185,411			185,620
Total checking accounts		383,541			325,476			312,897			319,410			321,651
Savings accounts		282,643			274,149			273,192			277,404			278,906
Money market accounts		310,983			312,911			313,513			326,738			329,163
Total non-time deposits		977,167			912,536			899,602			923,552			929,720
Retail certificates of deposit		429,576			435,300			446,774			451,922			468,347
Total certificates of deposit		429,576			435,300			446,774			451,922			468,347
Total deposits	$	1,406,743		$	1,347,836		$	1,346,376		$	1,375,474		$	1,398,067
Certificates of deposit as a percent of total deposits		30.54	%		32.30	%		33.18	%		32.86	%		33.50	%

7

UNITED COMMUNITY FINANCIAL CORP.

SELECTED FINANCIAL HIGHLIGHTS

(Unaudited)

	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
	(Dollars in thousands)
Allowance For Loan Losses
Beginning balance	$	17,687		$	18,132		$	18,264		$	20,554		$	21,116
(Recovery) provision		(184	)		194			116			(1,614	)		33
Net (chargeoffs) recoveries		(282	)		(639	)		(248	)		(676	)		(595	)
Ending balance	$	17,221		$	17,687		$	18,132		$	18,264		$	20,554
	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
	(Dollars in thousands)
Net (Charge-offs) Recoveries
Commercial loans
Multi-family	$	13		$	—		$	—		$	(135	)	$	(5	)
Owner/nonowner occupied commercial real estate		9			(25	)		(9	)		56			(252	)
Land		—			—			—			—			—
Construction		—			—			—			—			—
Commercial and industrial		75			199			158			218			137
Total		97			174			149			139			(120	)
Residential mortgage loans
Real estate		20			(141	)		(278	)		(181	)		(163	)
Construction		—			(488	)		(90	)		(330	)		(79	)
Total		20			(629	)		(368	)		(511	)		(242	)
Consumer loans
Consumer		(399	)		(184	)		(29	)		(304	)		(233	)
Total		(399	)		(184	)		(29	)		(304	)		(233	)
Total net (chargeoffs) recoveries	$	(282	)	$	(639	)	$	(248	)	$	(676	)	$	(595	)
	At or for the quarters ended
	March 31, 2015			December 31, 2014			September 30, 2014			June 30, 2014			March 31, 2014
	(Dollars in thousands)
Nonperforming Loans
Commercial loans
Multi-family	$	85		$	93		$	114		$	133		$	1,158
Owner/nonowner occupied commercial real estate		5,701			5,781			6,804			4,902			5,033
Land		531			531			531			532			532
Construction		1,050			1,051			2,453			2,553			2,884
Commercial and industrial		4,016			4,016			4,144			4,151			4,155
Total		11,383			11,472			14,046			12,271			13,762
Residential mortgage loans
Real estate		6,652			6,816			4,700			5,380			6,133
Construction		—			—			—			—			—
Total		6,652			6,816			4,700			5,380			6,133
Consumer loans
Consumer		2,061			2,163			1,960			2,663			3,089
Total		2,061			2,163			1,960			2,663			3,089
Total nonperforming loans	$	20,096		$	20,451		$	20,706		$	20,314		$	22,984
Total Nonperforming Loans and Nonperforming Assets
Past due 90 days and on nonaccrual status	$	15,357		$	16,017		$	18,114		$	16,636		$	18,708
Past due 90 days and still accruing		—			—			—			—			—
Past due 90 days		15,357			16,017			18,114			16,636			18,708
Past due less than 90 days and on nonaccrual		4,739			4,434			2,592			3,678			4,276
Total nonperforming loans		20,096			20,451			20,706			20,314			22,984
Other real estate owned		2,908			3,345			4,445			4,546			4,700
Repossessed assets		211			122			42			2			—
Total nonperforming assets	$	23,215		$	23,918		$	25,193		$	24,862		$	27,684

8