8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):       March 26, 2008     

UNITED COMMUNITY FINANCIAL CORP.

(Exact name of registrant as specified in its charter)

OHIO	0-024399	34-1856319
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer I.D. No.)

275 West Federal Street, Youngstown, Ohio 44503-1203

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code:       (330) 742-0500     

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

1

Section 2 — Financial Information

Item 2.02. Results of Operation and Financial Condition

     (a) On March 26 2008, United Community Financial Corp. issued a press release announcing that it had revised its results of operations for 2007. A copy of the press release is attached as Exhibit 99.

Section 9 — Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits.

      (d) Exhibits.

Exhibit
Number	Description
99	Press Release of United Community dated March 26, 2008.	Included herewith.

2

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

UNITED COMMUNITY FINANCIAL CORP.
By:	/s/ Patrick A. Kelly
	Patrick A. Kelly, Chief Financial Officer

Date: March 26, 2008

3

EX-99

EXHIBIT 99

UNITED COMMUNITY FINANCIAL CORP.
275 West Federal Street
Youngstown, Ohio 44503-1203

FOR IMMEDIATE RELEASE

Contact:
Patrick A. Kelly
Chief Financial Officer
(330) 742-2592

United Community Financial Corp. Announces Financial Results for 2007.

YOUNGSTOWN, Ohio (March 26, 2008) — United Community Financial Corp. (Company) (Nasdaq: UCFC), holding company of The Home Savings and Loan Company (Home Savings) and Butler Wick Corp. (Butler Wick), today reported revised unaudited financial results for 2007 to reflect additional loan loss reserves and a subsequent increase in the provision for loan losses.

Following a report to management by the Federal Deposit Insurance Corporation and the Ohio Division of Financial Institutions on the asset quality portion of the current regulatory examination, the Company has elected to establish an additional loan loss reserve of approximately $3.3 million, after tax, as of December 31, 2007. The examination process has not been completed, and a final report on asset quality and other aspects of the examination has not been presented.

UCFC previously reported a consolidated net loss for the quarter ended December 31, 2007, of $3.8 million, or $(0.13) per diluted share. After the additional reserves, consolidated net loss for the quarter ended December 31, 2007, was $7.1 million, or $(0.25) per diluted share. Previously reported net income for the year ended December 31, 2007, was $7.4 million, or $0.25 per diluted share. After the additional reserves, consolidated net income for the year ended December 31, 2007, was $4.1 million, or $0.14 per diluted share.

The Company expects to file its Annual Report on Form 10-K for the year ended December 31, 2007, including its audited financial statements, which will incorporate this revision on or about April 1, 2008.

Selected financial condition and earnings information revised to reflect these changes, is attached.

Home Savings and Butler Wick are wholly owned subsidiaries of the Company. Home Savings operates 39 full service banking offices and 6 loan production offices located throughout Northern and Central Ohio and Western Pennsylvania. Butler Wick has 23 offices providing full

4

service retail brokerage, capital markets and trust services throughout Ohio and Western Pennsylvania. Additional information on the Company, Home Savings and Butler Wick 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” 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 Home Savings’ market area, demand for investments in Butler Wick’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 publicly release 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.

5

UNITED COMMUNITY FINANCIAL CORP.

	As of			As of
	December 31, 2007			December 31, 2006
	(Dollars in thousands, except per share data)
SELECTED FINANCIAL CONDITION DATA (UNAUDITED):
ASSETS
Cash and cash equivalents	$	37,363		$	35,637
Securities		249,817			248,317
Federal Home Loan Bank stock, at cost		25,432			25,432
Loans held for sale		87,236			26,960
Loans:
Real estate		1,433,995			1,393,814
Construction		382,344			414,141
Consumer		349,447			345,607
Commercial		103,208			116,952
Allowance for loan losses		(32,006	)		(16,955	)
Net loans		2,236,988			2,253,559
Real estate owned and other repossessed assets		10,510			3,242
Goodwill		33,713			33,593
Core deposit intangible		1,169			1,534
Cash surrender value of life insurance		24,053			23,137
Other assets		53,758			52,134
Total assets	$	2,760,039		$	2,703,545
LIABILITIES
Deposits:
Interest-bearing	$	1,768,757		$	1,720,426
Noninterest-bearing		106,449			102,509
Deposits		1,875,206			1,822,935
Federal Home Loan Bank advances		437,253			465,253
Repurchase agreements and other		149,533			98,511
Other liabilities		28,333			35,513
Total liabilities		2,490,325			2,422,212
SHAREHOLDERS’ EQUITY
Preferred stock-no par value; 1,000,000 shares authorized and unissued Common stock-no par value; 499,000,000 shares authorized; 37,804,457 issued		146,683			145,834
Retained earnings		213,727			220,527
Accumulated other comprehensive income (loss)		661			(1,296	)
Unearned employee stock ownership plan shares		(9,465	)		(11,287	)
Treasury stock, at cost; 7,752,684 and 6,827,143 shares, respectively		(81,892	)		(72,445	)
Total shareholders’ equity		269,714			281,333
Total liabilities and shareholders’ equity	$	2,760,039		$	2,703,545
Book value per share	$	8.97		$	9.08
Tangible book value per share	$	7.81		$	7.95

UNITED COMMUNITY FINANCIAL CORP.

		Three Months Ended								Twelve Months Ended
	December 31,			September 30,			December 31,			December 31,
	2007			2007			2006			2007			2006
				(Dollars in thousands, except per share data)
SELECTED EARNINGS DATA (UNAUDITED):
Interest income	$	42,731		$	42,390		$	42,692		$	169,950		$	165,430
Interest expense		24,660			24,512			23,389			96,448			84,428
Net interest income		18,071			17,878			19,303			73,502			81,002
Provision for loan losses		18,318			5,363			1,322			28,750			4,347
Noninterest income:
Brokerage commissions		6,628			6,475			5,193			26,392			19,882
Service fees and other charges		3,009			3,705			2,979			14,057			12,546
Underwriting and investment banking		406			113			594			764			814
Net gains (losses):
Securities		(29	)		3			(14	)		22			56
Loans sold		545			892			1,044			2,624			2,943
Other		(515	)		(143	)		(45	)		(1,061	)		(63	)
Other income:		1,113			1,064			982			4,102			4,096
Total noninterest income		11,157			12,109			10,733			46,900			40,274
Noninterest expense:
Salaries and employee benefits		13,595			13,733			13,140			55,969			52,272
Occupancy		1,258			1,232			1,120			4,846			4,450
Equipment and data processing		2,240			2,156			2,298			9,017			8,998
Amortization of core deposit intangible		84			88			205			365			584
Other noninterest expense		4,677			3,523			3,208			15,131			13,514
Total noninterest expense		21,854			20,732			19,971			85,328			79,818
Income (loss) before taxes		(10,944	)		3,892			8,743			6,324			37,111
Income tax expense (benefit)		(3,894	)		1,309			3,074			2,191			13,000
Net income (loss)	$	(7,050	)	$	2,583		$	5,669		$	4,133		$	24,111
Basic earnings (loss) per share	$	(0.25	)	$	0.09		$	0.19		$	0.14		$	0.83
Diluted earnings (loss) per share	$	(0.25	)	$	0.09		$	0.19		$	0.14		$	0.82
Dividends paid per share	$	0.095		$	0.095		$	0.09		$	0.38		$	0.36

UNITED COMMUNITY FINANCIAL CORP.

	Three Months Ended		Three Months Ended		Three Months Ended
	December 31,		September 30,		December 31,
	2007		2007		2006
	(Dollars and share data in thousands)
AVERAGE DAILY BALANCE OF SELECTED FINANCIAL CONDITION DATA (UNAUDITED):
Net loans (including allowance for loan losses	$	2,308,157	$	2,263,546	$	2,247,958
of $32,006, $23,807 and $16,955, respectively)
Loans held for sale		16,327		18,605		28,649
Securities		245,250		251,585		227,943
Other interest-earning assets		35,809		34,601		32,224
Total interest-earning assets		2,605,543		2,568,337		2,536,790
Total assets		2,759,181		2,719,571		2,677,818
Certificates of deposit		1,142,379		1,096,056		1,140,926
Interest-bearing checking, demand and savings accounts		586,075		584,178		559,322
Other interest-bearing liabilities		598,339		615,891		557,785
Total interest-bearing liabilities		2,326,793		2,296,126		2,258,033
Noninterest-bearing deposits		105,548		103,757		97,116
Total noninterest-bearing liabilities		143,705		138,833		136,214
Total liabilities		2,470,498		2,434,959		2,394,247
Shareholders’ equity		288,683		284,612		283,571
Common shares outstanding for basic EPS calculation		28,339		28,489		29,096
Common shares outstanding for diluted EPS calculation		28,339		28,532		29,493
SUPPLEMENTAL LOAN DATA:
Loans originated	$	247,607	$	247,890	$	270,843
Loans purchased		59,777		61,476		54,384
Loans sold		49,002		52,737		57,469
Loan charge-offs		10,243		1,102		1,046
Recoveries on loans		124		151		98

	As of			As of			As of
	December 31,			September 30,			December 31,
	2007			2007			2006
		(Dollars in thousands)
SUPPLEMENTAL DATA:
Nonaccrual loans	$	97,499		$	97,253		$	52,646
Restructured loans		2,342			2,132			1,385
Real estate owned and other repossessed assets		10,510			11,671			3,242
Total nonperforming assets		111,565			112,491			58,069
Mortgage loans serviced for others		876,147			875,039			861,543
Securities trading, at fair value		5,064			4,964			10,786
Securities available for sale, at fair value		244,753			242,271			237,531
Federal Home Loan Bank stock, at cost		25,432			25,432			25,432
Number of full time equivalent employees		807			799			807
REGULATORY CAPITAL DATA:
Tier 1 leverage ratio		7.47	%		8.03	%		7.68	%
Tier 1 risk-based capital ratio		9.26	%		9.94	%		9.49	%
Total risk-based capital ratio		11.88	%		12.44	%		11.70	%