First Defiance Financial (FDEF - Get Report) definitively agreed to acquire United Community Financial (UCFC - Get Report) for $473 million of stock, the Ohio financial holding companies said Monday.

First Defiance, the Defiance, Ohio, parent of First Federal Bank of the Midwest and First Insurance Group, agreed to pay 0.3715 share for each of United Community's shares. United Community is the Youngstown, Ohio, parent of Home Savings Bank and HSB Insurance.

Based on First Defiance's closing price of $26.32 on Friday, the deal values United Community at $9.78 a share. United Community shares rose 5.1% to $10.10. First Defiance shares were up 3.5% at $27.23.

The deal terms would give First Defiance holders 52.5% of the combined company and United Community holders 47.5%, the companies said. The combined company, serving Ohio, Michigan, Indiana, Pennsylvania and West Virginia. would have about $6.1 billion of assets.

Subject to conditions including regulatory clearances and approval by both companies' shareholders, the deal should close in the first quarter.

In July Raymond James analyst Daniel Cardenas affirmed United Community shares at outperform and raised his target price to $11 from $10 after what he called a "solid" second quarter for the company.

Shares of First Defiance rose 80 cents, or 3%, to $27.12. Shares of United Community Rose 44 cents, or 4.6%, to $10.05.