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EXHIBIT 99
Contact: INVESTORS MEDIA
Pat Kelly David Windau
United Community Financial Corp. Industrial Bancorp Inc.
(330) 742-0592 (419) 483-3375
MEDIA MEDIA
Jim King Susan E. Stricklin
Edward Howard & Co. United Community Financial Corp.
(330) 730-8058 (330) 507-4773
(330) 781-2400 (330) 742-0638
UNITED COMMUNITY FINANCIAL CORP.
AGREES TO ACQUIRE INDUSTRIAL BANCORP INC.
YOUNGSTOWN, Ohio (December 9, 2000) - United Community Financial Corp. (Nasdaq:
UCFC), holding company for The Home Savings and Loan Company and Butler Wick
Corp., announced today it has signed a definitive agreement to acquire
Industrial Bancorp Inc. (Nasdaq: INBI). Industrial, based in Bellevue, Ohio, is
the holding company for Industrial Savings and Loan Association and operates 13
branches and one loan production office throughout north central Ohio.
In a deal valued at $91.8 million, United Community has agreed to pay $20.375
per share to Industrial shareholders. As an all cash transaction, the merger
will use purchase accounting. Industrial currently has assets of $416 million,
which will bring total assets of United Community to $1.7 billion. The
transaction is expected to be immediately accretive to earnings by approximately
$.04 per share in Fiscal 2001. Subject to regulatory and Industrial shareholder
approval, the transaction is anticipated to be completed during the second
quarter of 2001. At that time, Industrial Savings will become offices of The
Home Savings and Loan Company.
"This is an important step in implementing our strategic plan to grow our
company through product and geographic expansion," said Douglas M. McKay,
chairman and chief executive officer of United Community. "The acquisition of
Industrial, which is one of Ohio's most profitable thrifts, will give United
Community additional growth opportunities in new markets and will strongly
complement the expansion we have achieved in fiscal year 2000." McKay also
stated there are no present plans to close any Industrial Savings branches or
eliminate any of its personnel.
McKay emphasized that customers of Industrial Savings will not be adversely
impacted by the acquisition. Customer accounts will continue to be handled at
their current branch by the same bank employees they have come to know
throughout their relationship with Industrial Savings.
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David M. Windau, who currently serves as president and CEO of Industrial
Savings, will become senior vice president at Home Savings and will retain
supervisory responsibilities over the north central Ohio region. Windau will
also serve on the Home Savings board of directors.
"Home Savings is a tremendous partner for Industrial Savings and Loan, our
employees and our customers," said Windau. "Each institution has been committed
to community banking for more than 110 years and shares common business values
and beliefs. I believe our customers will benefit from this new relationship
with expanded products and services while our employees will be part of an
organization that is committed to growth and improvement. This combination truly
is a great fit for everyone - including the communities in which we serve."
McKay said Home Savings will be able to offer new services, such as online and
telephone banking, to Industrial Savings customers, as well as a broadened array
of new financial products. "Industrial has had good growth in recent years and
we believe we can accelerate that even further," McKay said, adding that
Industrial reported return on average assets of 1.39 percent and return on
average equity of 9.99 percent in 1999.
The pending acquisition is the latest effort by United Community to grow through
product and geographic diversification. In fiscal 2000, Home Savings hired
several new executives while opening three new branches and four loan
origination offices. The bank also enhanced its online and telephone banking
services and offered several new products to its customers. Meanwhile, Butler
Wick, a trust and securities brokerage firm, also opened a new office and
expanded its services as well.
United Community Financial Corp. is an Ohio-based unitary thrift holding
company. Its subsidiaries include The Home Savings and Loan Company and Butler
Wick Corp. Home Savings has 17 full-service branches and four loan production
offices located throughout Northeastern Ohio, while Butler Wick has 10 offices
located throughout Northeastern Ohio and Western Pennsylvania. Additional
information on United Community may be found on its web site: www.ucfcorp.com.
Industrial Bancorp is the holding company for Industrial Savings and Loan
Association headquartered in Bellevue, Ohio, serving seven counties in north
central Ohio.
THIS PRESS RELEASE INCLUDES STATEMENTS THAT MAY CONSTITUTE FORWARD-LOOKING
STATEMENTS MADE PURSUANT TO THE SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995. THE FOLLOWING STATEMENTS ARE FORWARD-LOOKING IN
NATURE: THE INDUSTRIAL ACQUISITION BEING ACCRETIVE TO EARNINGS; CONVERTING
INDUSTRIAL SAVINGS AND LOAN NAME TO THE HOME SAVINGS AND LOAN COMPANY NAME;
RETAINING ALL INDUSTRIAL SAVINGS BRANCHES AND EMPLOYEES; EXPANDING THE PRODUCT
LINE AT INDUSTRIAL SAVINGS; AND CREATING ACCELERATED GROWTH IN INDUSTRIAL'S
EXISTING MARKETS. THESE STATEMENTS ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT
COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THE FORWARD-LOOKING
STATEMENTS. SUCH RISKS INCLUDE, AMONG OTHER FACTORS, REGULATORY APPROVAL OF THE
TRANSACTION, ACCEPTANCE OF NEW PRODUCTS IN THE MARKETPLACE, ECONOMIC CONDITIONS
AND CHANGES IN INTEREST RATES. FOR A MORE COMPLETE LIST OF RISK FACTORS, READ
UNITED COMMUNITY'S FORM 10K FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.