1. Community Bank Investor Conference
KBW
Community Bank Investor Conference
August 3, 2016
Presenter:
Gary Small - President and Chief Executive Officer
Matt Garrity – Executive Vice President - Chief Lending Officer

2. Forward-Looking Statement Disclosure
This presentation may contain “forward-looking” statements. Such forward-looking statements are subject to risks that could cause actual results or outcomes to differ materially from those currently anticipated. United Community has no duty to, and does not intend to, update or revise forward-looking statements after the date on which they are made. For further information about the factors that could affect United Community’s future results, please see the company’s most recent annual and quarterly reports filed on Form 10-K and Form 10-Q.

3. Company Profile Loan Offices Branch Locations
Size of circle corresponds to relative size of the bank’s lending business in that market

4. Earnings per Share (1) 40% compound annual growth rate
* Excludes the recognition of a $39.7 million income tax benefit from the reversal of a deferred tax asset valuation reserve
**Based on consensus estimates for 2016 EPS from three
analysts
(1) Diluted earnings per share

5. Share Price and Price to Tangible Book

6. UCFC Investment Thesis
Strong EPS and dividend growth at below peer valuation
Rapid and successful balance sheet transformation
Talent
Tangible capital of 12.2%, high EPS growth and low price/TBV

7. 2016 YTD Highlights Net income of $8.7 million, up 11%
EPS of $0.18 per share, up 15%
ROA of 1.04% in 2nd quarter
Loan growth of 13%, earning asset growth of 9%
Net interest margin increased to 3.23%
Announced a 20% increase to dividend in July

8. Earning Asset Composition
Gov’t Agency
43%
Yield 2.2%
Duration 6.6
Loans, net and Loans AFS
Securities and Other
*Percentages based on average balances for the period

9. Net Interest Income and Margin
Dollars in thousands
12% growth
Net Interest Income
Net Interest Margin

10. Funding Cost
Total funding cost
Cost of deposits

11. Non Interest Income 8% average annual growth $21,500 $19,575 $17,172
Dollars in thousands, excludes security gains
$21,500
$19,575
$17,172
$13,297
Mortgage Banking and Servicing
Deposit Fees
Card/Interchange Fees
Other
Insurance

12. Non Interest Expense and Efficiency Ratio
3% average annual decline
Dollars in thousands
Non Interest Expense - LHS
Efficiency Ratio – RHS

13. Executive Vice President
United Community Financial Corp.
Matt Garrity
Executive Vice President
Chief Lending Officer

14. Loan Composition (including AFS)
15% average annual growth
Balance in millions
$1,457
$1,369
$1,186
$1,054
4.47%
Residential, residential construction and AFS
CRE, Commercial and Commercial Construction
Consumer

15. Commercial Lending
Growth of commercial balances averaged over 50% for last three years
Team expansion
Regional bank experience
Mezzanine lending – niche product, real estate based
Disciplined growth without sacrificing credit quality

16. Commercial Loan Growth
Balance in millions
56% average annual growth
$577
$473
$311
$241
Unfunded Commercial Commitments
Commercial Balances

17. Commercial Loan Origination Growth
Balance in millions
$227
$145
$123
$55
C&I
CRE and Commercial Construction

18. Mortgage Banking Controlled balance growth
Fee income growth in mortgage banking/servicing
Market expansion – Pittsburgh and Morgantown
Servicing over $1.1 billion in mortgage loans

19. Residential Mortgage Portfolio (inc. AFS)
Balance in millions
$827
$811
$752
$639
Construction Perm including AFS
ARMs
15 Year
30 Year

20. Capital Management Tangible common equity to total assets 12.2%
Organic balance sheet growth – 15% loan growth since 2013
M&A opportunities
Dividends – 30% payout target
Share repurchases – 4.7 million repurchased since 2014
Share repurchases – 1.7 million shares still authorized

21. Strategic Drivers Continued Balance Sheet Migration
Continued Expansion of Commercial Lending
Diversification of Revenue Streams
New Loan Products
Geographic Diversity
Fee Business Expansion
Improving ROE through Deployment of Excess Capital
Talent

22. United Community Financial Corp.
Appendix

23. Executive Management Team
Gary M. Small, President and CEO
Joined Formerly with S&T Bank as a Senior Executive Vice President – Chief Banking Officer
Served as Executive Vice President – Head of Regional Banking for Sky Financial Group and it’s successor, Huntington Bank
Spent 20 years with National City Corporation in a number of senior operating and financial roles
Matthew T. Garrity, EVP, Chief Lending Officer & Credit Administration
Six years with Home Savings, served as Senior Vice President for National City Capital Markets and National City Corporation’s Deputy Chief Credit Officer – Northern Ohio Credit
Garrity has been in the banking industry for 24 years
Barbara J. Radis, EVP, Retail Banking
Six years with Home Savings, served in retail executive roles with Lorain National Bank, AmTrust and US Bank (Greater Cleveland)
Radis has been in the banking industry for 26 years
Timothy W. Esson, CPA — CFO
Prior to joining Home Savings, he served as President for Premier Bank in Elyria, Ohio
Esson has been in the community banking industry for 35 years

24. Income Statements

25. Balance Sheets

26. Reconciliation of Non-GAAP Financial Measures to GAAP

27. Investor Relations Contact:
Troy Adair