UCFC United Community Financial Corporation

Third quarter 2016 highlights compared with the third quarter of 2015:

• Net quarterly income of $5.2 million, up 24.4%
• Diluted earnings per share of $0.11, up 27.9%
• ROA of 0.98% — ROE of 8.38% compared to ROA of 0.85% — ROE of 6.87%
• Net interest margin improved to 3.25% compared to 3.18%
• Net loans increased 15.4%
• Efficiency ratio improved to 59.4% compared to 63.5%
• Dividend of $0.03 per common share declared

United Community Financial Corp. (Company) (Nasdaq: UCFC), parent company of The Home Savings and Loan Company (Home Savings), announced today that net income for the quarter ended September 30, 2016, was $5.2 million, up 24.4% from the $4.1 million reported for the quarter ended September 30, 2015. Third quarter diluted earnings per share increased 27.9% to $0.110 from $0.086 per share reported at the same time last year. Net income for the nine months ended September 30, 2016 totaled $13.8 million, up 15.5% from the $12.0 million reported for the nine months ended September 30, 2015. For the same time period, diluted earnings per share increased to $0.292, up 19.2% from the $0.245 per share previously reported.

Gary M. Small, President and Chief Executive Officer of the Company, commented, “We are very pleased to post another strong quarter with revenue up 14% and loan growth in excess 12% vs. the same period in 2015. Earnings momentum is excellent as reflected in our pre provision, pretax comparisons, up 6.3% on a linked quarter basis and 30% vs 2015. The entire Home Savings team remains focused on growth and has put the organization in a very good position as we prepare for the successful integration of Premier Bank & Trust in the first quarter of 2017.”

Balance Sheet Highlights

Total Loans

Total net loans, including loans held for sale, increased $218.7 million, or 16.6% to $1.5 billion at September 30, 2016, compared to September 30, 2015, and 18.0% on an annualized basis through the third quarter compared to December 31, 2015. This positive growth is being driven primarily by the commercial loan portfolio. Commercial loan balances grew over 44.2%, or $151.5 million when compared to the same time period last year. Commercial loan production totaled $232.8 million for the first nine months of the year and was approximately 43.1% higher than the first nine months of 2015. Unfunded commercial loan commitments increased $37.7 million, or 36.5%, to $141.2 million, during the first nine months of 2016.

Residential loans, including residential loans held for sale, grew as planned at a measured pace, increasing $49.5 million, or 6.2%, at September 30, 2016 compared to September 30, 2015. During the same time period, residential loan production grew by 18.5%, when comparing the third quarter of 2016 to the same time period in the previous year. Pipeline levels remain strong at the end of the third quarter.

Total Deposits

Total deposits increased $62.6 million, or 4.4% to $1.5 billion at September 30, 2016, compared to September 30, 2015, and 3.5% on an annualized basis during the first nine months of 2016 compared to December 31, 2015. The Company continues to see improvement in growing public funds, which grew $37.9 million, or 49.0%, to $115.3 million at September 30, 2016, compared to $77.4 million at September 30, 2015. Noninterest bearing deposit balances grew $44.3 million, or 21.2% at September 30, 2016, compared to September 30, 2015. Furthermore, the Company has seen an increase in the average balance of business deposits of $23.2 million, or 19.5%, during the first nine months of 2016. As the deposit mix changes, the Company has realized the benefit of lowering its overall cost of deposits to 38 basis points for the three months ended September 30, 2016.

Third Quarter and Year-to-date Results

Net Interest Income and Margin

Net interest income on a fully taxable equivalent basis was $15.9 million in the third quarter of 2016, up 11.3% from the $14.3 million recorded in the third quarter of 2015. The improvement in net interest income was primarily due to the growth in average net loan balances and a decline in funding costs, quarter versus quarter. Net interest income on a fully taxable equivalent basis was $46.4 million in the first nine months of 2016, up 10.4% from the $42.1 million recorded in the first nine months of 2015.

Net interest margin was 3.25% for the third quarter of 2016, an increase from 3.18% reported in the third quarter of 2015. This increase was due to the prepayment of high cost debt at the end of 2015 and the repricing of higher cost certificates of deposit during the year.

Net interest margin was 3.23% for the first nine months of 2016, an increase from 3.19% reported in the first nine months of 2015. The increase was also due to the prepayment of the high-cost debt and the reduction of the cost of deposits.

Provision for Loan Losses

The Company recognized a provision for loan loss expense of $1.3 million in the third quarter of 2016 compared to a provision of $395,000 in the second quarter of 2016. Net chargeoffs for the quarter totaled eight basis points. The majority of the provision expense was related to the growth of the loan portfolio.

The Company recognized a provision for loan loss expense of $3.9 million in the first nine months of 2016 compared to an expense of $1.2 million in the comparable period of 2015.

Non-Interest Income

Non-interest income increased 23.2% to $6.0 million in the third quarter of 2016 compared to $4.9 million in the third quarter of 2015. Favorably impacting the change was the benefit of insurance agency income of $451,000 coupled with a 14.5% increase in mortgage banking income. The Company also recognized security gains of $218,000 in the quarter as the investment portfolio is realigned to include higher-yielding municipal securities.

Non-interest income increased 15.2% to $16.4 million in the first nine months of 2016 compared to $14.3 million in the comparable period last year. Positively affecting the comparison was the benefit of insurance agency income totaling $1.3 million. Also contributing to the change was an increase of 7.7% of deposit related fees along with an increase of 29.3% in brokerage income and a 5.0% increase in debit/credit card fees, for a total of $668,000. The first nine months of 2016 also saw security gains totaling $604,000. These increases were partially offset by a $610,000 increase in the valuation adjustment of mortgage servicing rights.

Non-Interest Expense

Non-interest expense was $13.0 million for the third quarter of 2016, which represented an increase of $693,000, or 5.6%, from the third quarter of 2015. Included in this increase were expenses of $432,000 related to the operation of the insurance agency acquired in 2016. The efficiency ratio continues to show improvement at 59.4% for the third quarter of 2016 as compared to 63.5% in the same time period last year.

Non-interest expense was essentially flat, in comparison to the same period last year after giving consideration to the insurance company acquisition. Non-interest expense was $38.3 million for the nine months ended September 30, 2016, which represented an increase of $1.1 million, or 3.0%, from the nine months ended September 30, 2015. As in the quarter-to-quarter comparison, the acquisition of the insurance company and its operating expenses to date of $948,000 was the primary reason for the increase. The efficiency ratio was 61.3% for the first nine months of 2016 compared to 65.6% for the same period last year.

Pre-tax, Pre-provision Income

Pre-tax, pre-provision income was $8.8 million for the three months ended September 30, 2016, up $1.9 million, or 27.5%, from the $6.9 million recorded for the three months ended September 30, 2015. Pre-tax, pre-provision income was $24.1 million for the nine months ended September 30, 2016, up $5.0 million, or 26.1%, from the $19.1 million recorded for the nine months ended September 30, 2015. Pre-tax, pre-provision income is derived by adding provision for loan losses and income tax expense to net income. The Company believes this non-GAAP measure presentation removes volatility that can occur quarter to quarter due to changes in factors used in calculating the provision for loan losses.

Equity

Tangible book value per common share at September 30, 2016 improved to $5.48, as compared to $5.14 at December 31, 2015. This change was due to changes in accumulated other comprehensive income paralleling the drop in long-term interest rates which resulted in a higher valuation of the Company’s securities portfolio. Net income for the nine months ended September 30, 2016, along with purchases of treasury stock also contributed to the change.

Dividend to be Paid

On October 18, 2016, the Board of Directors declared a quarterly cash dividend of $0.03 per common share payable November 14, 2016 to shareholders of record at the close of business October 31, 2016.

Conference Call

United Community Financial Corp. will host an earnings conference call on Wednesday, October 19, 2016, at 10:00 a.m. ET., to provide an overview of the Company's third quarter 2016 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 ir.ucfconline.com. Click on 3rd Quarter 2016 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 retail banking offices and loan production centers in Ohio, western Pennsylvania and West Virginia. Additional information on the Company, Home Savings and James & Sons Insurance may be found on the Company’s web site: ir.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.

Important Information for Investors and Shareholders

This earnings release does not constitute an offer to sell or the solicitation of an offer to buy securities of United Community. United Community will file a registration statement on Form S-4 and other documents regarding the proposed merger with Ohio Legacy with the Securities and Exchange Commission (“SEC”) to register the shares of the Company’s common shares to be issued to the shareholders of Ohio Legacy. The registration statement will include a proxy statement/prospectus, which will be sent to the shareholders of Ohio Legacy in advance of its special meeting of shareholders to be held to consider the proposed merger. Investors and security holders are urged to read the proxy statement/prospectus and any other relevant documents to be filed with the SEC in connection with the proposed transaction because they contain important information about United Community, Ohio Legacy and the proposed transaction. Investors and security holders may obtain a free copy of these documents (when available) through the website maintained by the SEC at www.sec.gov, on the NASDAQ website at http://www.nasdaq.com and from either the United Community or Ohio Legacy websites at http://www.ucfconline.com or at http://www.ohiolegacycorp.com.

UNITED COMMUNITY FINANCIAL CORP. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)       September 30, December 31, 2016 2015 (Dollars in thousands) Assets: Cash and deposits with banks $ 23,861 $ 20,528 Federal funds sold   20,087     15,382   Total cash and cash equivalents 43,948 35,910 Securities: Available for sale, at fair value 354,469 357,670 Held to maturity (fair value of $105,209 and $109,664, respectively) 103,202 110,699 Loans held for sale, at lower of cost or market 378 9,085 Loans held for sale, at fair value 59,967 26,716 Loans, net of allowance for loan losses of $18,234 and $17,712 1,473,949 1,316,192 Federal Home Loan Bank stock, at cost 18,068 18,068 Premises and equipment, net 20,565 20,678 Accrued interest receivable 6,066 5,978 Real estate owned and other repossessed assets 1,793 2,727 Customer list intangible 1,538 — Core deposit intangible 6 30 Cash surrender value of life insurance 55,474 54,366 Other assets   20,811     29,870   Total assets $ 2,160,234   $ 1,987,989     Liabilities and Shareholders' Equity Liabilities: Deposits: Interest bearing $ 1,220,120 $ 1,208,238 Non-interest bearing   252,923     227,505   Total deposits 1,473,043 1,435,743 Borrowed funds: Federal Home Loan Bank advances Long-term advances 47,561 46,975 Short-term advances   358,000     232,000   Total Federal Home Loan Bank advances 405,561 278,975 Repurchase agreements and other   517     535  

Total borrowed funds

406,078 279,510 Advance payments by borrowers for taxes and insurance 14,758 21,174 Accrued interest payable 117 53 Accrued expenses and other liabilities   9,835     7,264   Total liabilities   1,903,831     1,743,744     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 46,542,388 and 47,517,644 shares, respectively, outstanding

173,383 174,304 Retained earnings 149,750 140,819 Accumulated other comprehensive loss (10,251 ) (19,220 ) Treasury stock, at cost, 7,596,522 and 6,621,266 shares, respectively   (56,479 )   (51,658 ) Total shareholders’ equity   256,403     244,245   Total liabilities and shareholders’ equity $ 2,160,234   $ 1,987,989     UNITED COMMUNITY FINANCIAL CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                 For the Three Months Ended For the Nine Months Ended September 30, June 30 September 30, September 30, September 30, 2016 2016 2015 2016 2015 (Dollars in thousands, except per share data) Interest income Loans $ 14,633 $ 14,184 $ 13,426 $ 42,618 $ 39,007 Loans held for sale 482 363 390 1,177 1,025 Securities: Available for sale, nontaxable 339 290 — 752 — Available for sale, taxable 1,630 1,781 2,599 5,346 8,139 Held to maturity, nontaxable 66 62 33 183 45 Held to maturity, taxable 466 524 17 1,567 17 Federal Home Loan Bank stock dividends 180 180 181 542 541 Other interest earning assets   19     15     8     49     25   Total interest income 17,815 17,399 16,654 52,234 48,799 Interest expense Deposits 1,389 1,496 1,690 4,497 4,862 Federal Home Loan Bank advances 661 563 340 1,754 947 Repurchase agreements and other   5     6     323     16     958   Total interest expense   2,055     2,065     2,353     6,267     6,767   Net interest income 15,760 15,334 14,301 45,967 42,032 Taxable equivalent adjustment   185     186     19     466     25   Net interest income (FTE) (1) 15,945 15,520 14,320 46,433 42,057 Provision for loan losses   1,344     395     673     3,894     1,242   Net interest income after provision for loan losses (FTE)   14,601     15,125     13,647     42,539     40,815   Non-interest income Insurance agency income 451 516 — 1,269 — Brokerage income 337 396 259 1,033 799 Service fees and other charges: Deposit related fees 1,418 1,362 1,405 4,106 3,811 Mortgage servicing fees 715 701 683 2,114 2,038 Mortgage servicing rights valuation 25 (292 ) (138 ) (702 ) (92 ) Mortgage servicing rights amortization (525 ) (567 ) (449 ) (1,560 ) (1,355 ) Other service fees 43 47 19 108 56 Net gains (losses): Securities available for sale 218 233 — 604 11 Mortgage banking income 1,957 1,869 1,709 5,208 5,303 Real estate owned and other repossessed assets charges, net — (63 ) (119 ) (76 ) (311 ) Debit/credit card fees 915 1,120 1,036 2,916 2,777 Other income   449     458     468     1,421     1,229   Total non-interest income   6,003     5,780     4,873     16,441     14,266   Non-interest expense Salaries and employee benefits 6,950 7,186 6,894 21,224 20,968 Occupancy 847 855 819 2,564 2,505 Equipment and data processing 1,926 1,887 1,714 5,648 5,105 Financial institutions tax 411 431 272 1,284 924 Advertising 290 221 183 638 546 Amortization of intangible assets 72 10 14 95 41 FDIC insurance premiums 155 287 313 768 946 Other insurance premiums 89 73 84 251 253 Professional fees: Legal and consulting fees 211 214 361 622 889 Other professional fees 341 351 469 762 1,231 Real estate owned and other repossessed asset expenses 41 77 134 190 293 Other expenses   1,645     1,268     1,028     4,256     3,473   Total non-interest expenses   12,978     12,860     12,285     38,302     37,174   Income before income taxes 7,626 8,045 6,235 20,678 17,907 Taxable equivalent adjustment 185 186 19 466 25 Income tax expense   2,288     2,529     2,073     6,409     5,928   Net income $ 5,153   $ 5,330   $ 4,143   $ 13,803   $ 11,954     Earnings per common share: Basic $ 0.111 $ 0.113 $ 0.087 $ 0.293 $ 0.246 Diluted 0.110 0.112 0.086 0.292 0.245   (1)

Net interest income is also presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item.

  UNITED COMMUNITY FINANCIAL CORP. CONSOLIDATED AVERAGE BALANCES (Unaudited)                     For the three months ended September 30, 2016 June 30, 2016 September 30, 2015 Average Interest Average Interest Average Interest outstanding earned/ Yield/ outstanding earned/ Yield/ outstanding earned/ Yield/ balance paid rate balance paid rate balance paid rate (Dollars in thousands) Interest earning assets: Net loans (1) $ 1,422,294 $ 14,634 4.12 % $ 1,369,683 $ 14,186 4.14 % $ 1,249,316 $ 13,426 4.30 % Loans held for sale 49,095 482 3.93 % 37,521 363 3.87 % 39,078 390 3.99 % Securities: Available for sale-taxable 300,522 1,630 2.17 % 315,583 1,781 2.26 % 469,049 2,599 2.22 % Available for sale-nontaxable (2) 49,489 489 3.95 % 42,394 440 4.15 % — — — % Held to maturity-taxable 92,077 466 2.02 % 95,933 524 2.18 % 2,256 17 3.01 % Held to maturity-nontaxable (2) 13,563 100 2.95 % 12,971 96 2.96 % 6,211 52 3.35 % Federal Home Loan Bank stock 18,068 180 3.98 % 18,068 180 3.98 % 18,068 181 4.01 % Other interest earning assets   20,028   19 0.38 %   18,978   15 0.32 %   17,779   8 0.18 % Total interest earning assets 1,965,136 18,000 3.66 % 1,911,131 17,585 3.68 % 1,801,757 16,673 3.70 % Non-interest earning assets   132,922   132,780   137,495 Total assets $ 2,098,058 $ 2,043,911 $ 1,939,252 Interest bearing liabilities: Deposits: Checking accounts $ 491,553 238 0.19 % $ 505,284 261 0.21 % $ 488,924 262 0.21 % Savings accounts 290,998 24 0.03 % 291,820 34 0.05 % 279,894 41 0.06 % Certificates of deposit 425,307 1,127 1.06 % 434,053 1,201 1.11 % 450,917 1,387 1.23 % Federal Home Loan Bank advances Long-term advances 47,432 319 2.69 % 47,237 307 2.60 % 46,651 266 2.28 % Short-term advances 326,250 342 0.42 % 246,967 256 0.41 % 164,489 74 0.18 % Repurchase agreements and other   520   5 3.85 %   527   6 4.55 %   30,544   323 4.23 % Total interest bearing liabilities $ 1,582,060   2,055 0.52 % $ 1,525,888   2,065 0.54 % $ 1,461,419   2,353 0.64 % Non-interest bearing liabilities Total noninterest bearing deposits 242,310 241,098 211,923 Other noninterest bearing liabilities   27,769   29,751   24,524 Total noninterest bearing liabilities   270,079   270,849   236,447 Total liabilities $ 1,852,139 $ 1,796,737 $ 1,697,866 Shareholders’ equity   245,919   247,174   241,386 Total liabilities and equity $ 2,098,058 $ 2,043,911 $ 1,939,252 Net interest income and interest rate spread $ 15,945 3.14 % $ 15,520 3.14 % $ 14,320 3.06 % Net interest margin 3.25 % 3.25 % 3.18 % Average interest earning assets to average interest bearing liabilities 124.21 % 125.25 % 123.29 %   Total interest bearing deposits $ 1,207,858 $ 1,389 $ 1,231,157 $ 1,496 $ 1,219,735 $ 1,690 Non-interest bearing deposits   242,310   —   241,098   —   211,923   — Total average deposits and cost of deposits 1,450,168 1,389 0.38 % 1,472,255 1,496 0.41 % 1,431,658 1,690 0.47 % Other interest bearing liabilities   374,202   666   294,731   569   241,684   663 Total average deposits and other interest bearing liabilities and total cost of funds $ 1,824,370 $ 2,055 0.45 % $ 1,766,986 $ 2,065 0.47 % $ 1,673,342 $ 2,353 0.56 %  

(1) Nonaccrual loans are included in the average balance at a yield of 0%.

(2) Yields are on a fully taxable equivalent basis.

  UNITED COMMUNITY FINANCIAL CORP. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)                 At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands, except per share data) Financial Data Total assets $ 2,160,234 $ 2,080,542 $ 2,036,430 $ 1,987,989 $ 1,970,887 Total loans, net 1,473,949 1,398,106 1,359,146 1,316,192 1,277,330 Total securities 457,671 474,707 473,207 468,369 479,817 Total deposits 1,473,043 1,455,746 1,466,614 1,435,743 1,410,484 Average interest-bearing deposits 1,207,858 1,231,157 1,212,701 1,209,063 1,219,735 Average noninterest-bearing deposits 242,310 241,098 228,308 219,379 211,923 Total shareholders' equity 256,403 254,075 251,804 244,245 243,929 Net interest income 15,760 15,334 14,873 14,490 14,301 Net interest income (FTE) (1) 15,945 15,520 14,967 14,535 14,320 Provision for loan losses 1,344 395 2,155 893 673 Noninterest income 6,003 5,780 4,658 5,451 4,873 Noninterest expense 12,978 12,860 12,464 12,755 12,285 Income tax expense 2,288 2,529 1,592 1,965 2,073 Net income 5,153 5,330 3,320 4,328 4,143   Share Data Basic earnings per common share $ 0.111 $ 0.113 $ 0.070 $ 0.091 $ 0.087 Diluted earnings per common share 0.110 0.112 0.069 0.090 0.086 Book value per common share 5.51 5.46 5.30 5.14 5.12 Tangible book value per common share 5.48 5.43 5.27 5.14 5.12 Market value per common share 7.11 6.08 5.87 5.90 5.00   Common shares outstanding at end of period 46,542 46,493 47,507 47,518 47,614 Weighted average shares outstanding--basic 46,167 46,869 47,272 47,356 47,480 Weighted average shares outstanding--diluted 46,392 47,117 47,551 47,636 47,744   Key Ratios Return on average assets (2) 0.98 % 1.04 % 0.66 % 0.88 % 0.85 % Return on average equity (3) 8.38 % 8.63 % 5.33 % 7.02 % 6.87 % Net interest margin 3.25 % 3.25 % 3.21 % 3.16 % 3.18 % Efficiency ratio (4) 59.40 % 60.81 % 63.90 % 63.74 % 63.54 % Nonperforming loans to net loans, end of period 1.32 % 1.45 % 1.48 % 1.27 % 1.20 % Nonperforming assets to total assets, end of period 0.98 % 1.06 % 1.08 % 0.98 % 0.95 % Allowance for loan loss as a percent of loans, end of period 1.22 % 1.21 % 1.23 % 1.33 % 1.35 % Delinquent loans to total net loans, end of period 1.48 % 1.49 % 1.50 % 1.70 % 1.62 %  

________________________

(1)

Net interest income is presented on a fully taxable equivalent (FTE) basis, the Company believes this non-GAAP measure is the preferred industry measurement for this item

(2)

Net income divided by average total assets

(3)

Net income divided by average total equity

(4)

Excludes penalty on the prepayment of repurchase agreements

  UNITED COMMUNITY FINANCIAL CORP. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)           At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands) Loan Portfolio Composition Commercial loans Multi-family $ 107,066 $ 81,022 $ 80,581 $ 80,170 $ 74,042 Owner/nonowner occupied commercial real estate 225,699 196,110 184,279 175,456 167,366 Land 9,401 9,748 8,938 9,301 9,709 Construction 45,137 61,744 49,858 38,812 26,545 Commercial and industrial   106,880     88,804     83,256     66,013     65,004   Total 494,183 437,428 406,912 369,752 342,666 Residential mortgage loans Real estate 755,893 747,530 741,401 733,685 723,619 Construction   35,875     35,275     38,994     40,898     40,723   Total 791,768 782,805 780,395 774,583 764,342 Consumer loans Consumer   203,851     193,272     187,323     188,258     186,661   Total   203,851     193,272     187,323     188,258     186,661   Total loans 1,489,802 1,413,505 1,374,630 1,332,593 1,293,669 Less: Allowance for loan losses 18,234 17,172 16,903 17,712 17,482 Deferred loan costs, net   (2,381 )   (1,773 )   (1,419 )   (1,311 )   (1,143 ) Total   15,853     15,399     15,484     16,401     16,339   Total loans, net 1,473,949 1,398,106 1,359,146 1,316,192 1,277,330 Loans held for sale, net   60,345     43,847     35,998     35,801     38,274   Total loans $ 1,534,294   $ 1,441,953   $ 1,395,144   $ 1,351,993   $ 1,315,604       At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands) Deposit Portfolio Composition Checking accounts Interest bearing checking accounts $ 170,348 $ 182,713 $ 194,586 $ 160,264 $ 168,025 Non-interest bearing checking accounts   252,923     236,173     230,831     227,505     208,598   Total checking accounts 423,271 418,886 425,417 387,769 376,623 Savings accounts 290,325 292,232 288,324 280,889 277,313 Money market accounts   312,124     314,081     312,577     312,125     309,004   Total non-time deposits 1,025,720 1,025,199 1,026,318 980,783 962,940 Retail certificates of deposit 422,370 430,547 440,296 454,960 447,544 Brokered certificates of deposit   24,953     —     —     —     —   Total certificates of deposit   447,323     430,547     440,296     454,960     447,544   Total deposits $ 1,473,043   $ 1,455,746   $ 1,466,614   $ 1,435,743   $ 1,410,484     Certificates of deposit as a percent of total deposits 30.37 % 29.58 % 30.02 % 31.69 % 31.73 %   UNITED COMMUNITY FINANCIAL CORP. SELECTED FINANCIAL HIGHLIGHTS (Unaudited)           At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands)   Allowance For Loan Losses Beginning balance $ 17,172 $ 16,903 $ 17,712 $ 17,482 $ 16,881 Provision 1,344 395 2,155 893 673 Net chargeoffs   (282 )   (126 )   (2,964 )   (663 )   (72 ) Ending balance $ 18,234   $ 17,172   $ 16,903   $ 17,712   $ 17,482     At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands) Net (Charge-offs) Recoveries Commercial loans Multi-family $ 35 $ 3 $ 7 $ 7 $ 9 Owner/nonowner occupied commercial real estate 17 (117 ) (2,213 ) (67 ) (109 ) Land (250 ) — — (100 ) (12 ) Construction — — — 21 (88 ) Commercial and industrial   192     62     (74 )   141     137   Total (6 ) (52 ) (2,280 ) 2 (63 ) Residential mortgage loans Real estate (146 ) (59 ) (300 ) (611 ) (17 ) Construction   —     —     —     —     —   Total (146 ) (59 ) (300 ) (611 ) (17 ) Consumer loans Consumer   (130 )   (15 )   (384 )   (54 )   8   Total   (130 )   (15 )   (384 )   (54 )   8   Total net chargeoffs $ (282 ) $ (126 ) $ (2,964 ) $ (663 ) $ (72 )     At or for the quarters ended

September 30,2016

June 30,2016

March 31,2016

December 31,2015

September 30,2015

(Dollars in thousands) Nonperforming Loans Commercial loans Multi-family $ — $ — $ — $ — $ — Owner/nonowner occupied commercial real estate 6,879 7,362 7,557 3,599 3,694 Land 134 384 384 384 484 Construction — — — — 415 Commercial and industrial   4,242     4,633     4,652     4,016     4,016   Total 11,255 12,379 12,593 7,999 8,609 Residential mortgage loans Real estate 5,835 5,713 5,312 6,181 4,845 Construction   —     —     —     —     —   Total 5,835 5,713 5,312 6,181 4,845 Consumer loans Consumer   2,358     2,249     2,200     2,567     1,887   Total   2,358     2,249     2,200     2,567     1,887   Total nonperforming loans $ 19,448   $ 20,341   $ 20,105   $ 16,747   $ 15,341       Total Nonperforming Loans and Nonperforming Assets Past due 90 days and on nonaccrual status $ 15,350 $ 15,819 $ 15,663 $ 16,279 $ 14,890 Past due 90 days and still accruing   —     —     —     —     —   Past due 90 days 15,350 15,819 15,663 16,279 14,890 Past due less than 90 days and on nonaccrual   4,098     4,522     4,442     468     451   Total nonperforming loans 19,448 20,341 20,105 16,747 15,341 Other real estate owned 1,790 1,613 1,832 2,651 3,262 Repossessed assets   3     3     14     76     54   Total nonperforming assets $ 21,241   $ 21,957   $ 21,951   $ 19,474   $ 18,657    

View source version on businesswire.com: http://www.businesswire.com/news/home/20161018006617/en/

Media Contact:Home SavingsKathy Bushway, 330-742-0638Senior Vice President, Marketingkbushway@homesavings.comorInvestor Contact:United Community Financial Corp.Gary M. Small, 330-742-0472President and Chief Executive Officer