United Community Financial Corp.
Announces Earnings for Fourth Quarter,
Year End and an Increase in Core Earnings

Youngstown, Ohio &endash; January 26, 1999 - United Community Financial Corp. (NASDAQ: UCFC), holding company for The Home Savings and Loan Company of Youngstown, Ohio, (the "Company"), announced net income for the three months ended December 31, 1998 of $4.6 million or $.14 per share. Net income for the comparable period in the prior year was $1.9 million. Effective July 8, 1998, the Company converted from a mutual association to a stock company and formed United Community Financial Corp.

Due to the contribution of $11.8 million to The Home Savings and Loan Company Charitable Foundation (Foundation) in 1998 and a large loan loss recovery in 1997, a more direct comparison of operating results is to compare pre-tax core earnings for the two periods. Core earnings are defined as pre-tax earnings adjusted for securities sales transactions and unusual or nonrecurring expense or income items. Core earnings for the three months ended December 31, 1998 were $7.3 million compared to $3.1 million in the prior year period. The increase of $4.2 million in core earnings was due primarily to an increase in net interest income as a result of the investment of proceeds from the stock offering of United Community Financial Corp. and a decrease in overall costs of interest bearing liabilities.

Net income for the year ended December 31, 1998 was $8.7 million, compared to $13.0 million for the year ended December 31, 1997. The decline in net income is primarily due to an $11.8 million contribution to the Foundation. United Community Financial Corp. believes that the contribution of common shares to the Foundation will benefit the long-term value of the Company's community banking franchise by enabling the communities it serves to share in the potential growth and success of the Company and the Holding Company. Also contributing to the decline in the current year, when compared to the previous year, was a recovery in 1997 of three loans that had previously been charged off, resulting in a recovery of $3.3 million of interest and a loan loss recovery of $2.8 million. Earnings per share, since the conversion, for the six-month period ended December 31, 1998 was $ 0.08. Earnings per share for the same period would have been $ 0.32 if there was no contribution to the Foundation. There are no comparable per share earnings in the prior year as the Company was a mutual association.

Core earnings, as defined above, for the year ended December 31, 1998 were $25.2 million compared to $15.1 million in the prior year ended December 31, 1997. The increase of $10.1 million in core earnings was due to an increase in net interest income.

Douglas M. McKay, President of United Community Financial Corp., said "Fourth quarter and calendar year earnings, particularly when viewed on the basis of pre-tax core earnings, reflects a substantial increase in net interest income. This increase in net interest income is primarily due to a reduction in our overall cost of interest bearing liabilities combined with an increase of interest earning assets. The reduction in earnings for 1998, due to the contribution to the Charitable Foundation, was fully anticipated and addressed at the time of our stock conversion. This contribution positions Home Savings to support worthwhile causes well into the future without affecting future earnings, and we expect to realize tax benefits from the contribution for several more years."

Total equity increased $323.2 million to $464.6 million at December 31, 1998 from $141.4 million at December 31, 1997. Book value per share was $14.46 as of December 31, 1998. Total assets increased $212.3 million from December 31, 1997 to December 31, 1998. The increase in equity and assets was primarily attributable to funds received from the sale of United Community Financial Corp.'s stock in connection with the mutual-to-stock conversion of Home Savings and Loan which was completed on July 8, 1998.

The Company has 14 offices located throughout Mahoning, Columbiana and Trumbull Counties in Northeastern Ohio. The Holding Company paid its first quarterly dividend of $0.075 per share in December 1998. Additional information may be found on the Company's web site: www.homesavingsandloan.com.

 United Community Financial Corp.
Selected Financial Data
(In thousands)

		December 31,
	1998	1997
Selected Financial Condition Data:
Total assets	$1,257,305	$1,044,993
Allowance for loan losses	6,398	5,982
Total deposits	777,583	886,808
Total equity	464,645	141,353
		Three months ended December 31,
	1998	1997
Summary of Earnings:
Net interest income	$14,197	$9,565
Provision for loan losses	150	100
Total noninterest income	482	503
Total noninterest expense	7,246	6,972
Income taxes	2,726	1,097
Net income	4,557	1,899
		Three months ended December 31,
	1998	1997
Summary of Core Earnings:
Net interest income	$14,197	$9,565
Provision for loan losses	150	100
Total noninterest income	492	437
Total noninterest expense	7,246	6,822
Pre-tax Core Earnings	7,293	3,080
		Year ended December 31,
	1998	1997
Summary of Earnings:
Net interest income	$50,126	$42,222
Provision for loan losses	650	(1,546)
Total noninterest income	2,289	1,564
Total noninterest expense	38,217	25,303
Income taxes	4,849	6,982
Net income	8,699	13,047
		Year ended December 31,
	1998	1997
Summary of Core Earnings:
Net interest income	$50,126	$38,914
Provision for loan losses	650	700
Total noninterest income	2,104	1,518
Total noninterest expense	26,383	24,703
Pre-tax Core Earnings	25,197	15,029