United Community Financial Corp. Receives Regulatory Approval for Acquisition of Potters...

Business Editors

YOUNGSTOWN, Ohio--(BUSINESS WIRE)--March 14, 2002

United Community Financial Corp. (Nasdaq:UCFC) has received approval from the Office of Thrift Supervision and the Ohio Department of Commerce to acquire the East Liverpool-based Potters Financial Corporation,

United Community is the holding company of The Home Savings and Loan Company and Butler Wick Corp.

United Community anticipates closing the transaction on April 1, 2002. In an all-cash deal valued at about $23.6 million, the acquisition is expected to be immediately accretive to earnings. Upon completion, Potters Bank will be merged into Home Savings, adding four full-service banking offices. Soon thereafter, outdoor branch signage will reflect the Home Savings name and later this year, the computer systems of the two organizations will be integrated.

"We believe Potters' customers will benefit from our expanded array of products and services coupled with the top quality, personalized customer service they have come to expect," said Douglas M. McKay, chairman and chief executive officer of United Community.

Potters operates branch offices in East Liverpool, Calcutta and Glenmoor, Ohio, as well as in Beaver, Pennsylvania. It also operates a loan origination office in Boardman, Ohio. After the transaction is complete, Home Savings will operate 33 full-service offices and five loan origination offices throughout northern Ohio and Pennsylvania. Home Savings will have assets of more than $2.1 billion. Currently, there are no plans to close any of the Potters branch locations and all Potters' personnel are expected to be retained.

McKay said the Potters acquisition fits into United Community's long-term strategic plan to grow through product and geographic expansion. In 1999, United Community acquired Butler Wick, which offers brokerage, trust and other investment products and services to consumers, businesses and public entities. Even more recent was United Community's acquisition of the Bellevue, Ohio-based Industrial Bancorp. which added 12 branches to the Home Savings name in 2001.

"The addition of Potters will strengthen our organization and help to enhance shareholder value," McKay said. "It is United Community's intent to continue to explore profitable growth opportunities that are beneficial to customers, employees, shareholders and the communities in which we operate."

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 29 full-service branches and four loan production offices located throughout Northern 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.ucfconline.com.

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. Statements that relate to the completion of the Potters acquisition, the name change to Home Savings and the integration of computer systems are forward-looking in nature. These statements are subject to risks and uncertainties that could cause actual results to differ materially from the forward-looking statements.