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United Community Financial Corp. (“United Community”) (Nasdaq: UCFC), the holding company of The Home Savings and Loan Company (“Home Savings”), announced today that the Federal Deposit Insurance Corporation (the “FDIC”) and the Ohio Division of Financial Institutions (the “Ohio Division,” and together with the FDIC, “Home Savings’ Regulators”) have terminated Home Savings’ Consent Order, which was issued by Home Savings’ Regulators on March 30, 2012.
Patrick W. Bevack, President and CEO of United Community and Home Savings said, “We are very pleased that Home Savings’ Regulators have continued to acknowledge the progress and significant efforts we’ve made over the last several years and most importantly during 2012. We have worked, and continue to work, tirelessly to strengthen Home Savings and restore United Community back to profitability. By completing the bulk sale we announced in September 2012, we substantially improved asset quality and achieved a dramatic reduction in our risk profile.”
Bevack added: “The termination of the Consent Order means that Home Savings is now considered well capitalized and no longer in troubled condition, and we can once again take deposits from public institutions.”
As contemplated by United Community’s and Home Savings’ capital plans, which had been filed with regulators, United Community announced earlier this month that it had entered into securities purchase agreements with several accredited investors and subscription agreements with certain of United Community’s directors, officers, consultants and their affiliates to raise capital. The majority of any capital raised by United Community will be contributed to Home Savings, with the remainder to be used for general corporate purposes.
Bevack also added: “Over the last four years, we have established a very good working relationship with our Regulators. As a result, we will continue to work closely with our Regulators to ensure that we remain focused on resolving Home Savings’ remaining asset quality issues and that Home Savings maintains capital levels that are commensurate with its risk profile.”