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: September 8, 2004
-----------------
United Community Financial Corp.
-----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Ohio 0-24399 34-1856319
---------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification Number)
275 Federal Plaza West
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 changes 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:
[ ] Written communications pursuant to Rule 425 under the Securities
Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.06 MATERIAL IMPAIRMENTS
On September 2, 2004, the Company determined that a material charge for
impairment to specific loans is required pursuant to generally accepted
accounting principles applicable to the Company. After a review of a commercial
line of credit and a group of specific consumer loans that have common
characteristics relating to the collateral given as security for the loans,
management concluded that some of these loans had become impaired because either
the Company may not have a valid perfected security interest in some of the
collateral or the borrowers may be unable to perform their obligations in
accordance with the terms and conditions of the loan documents.
The impaired loans, which have an aggregate principal balance of $14,125,516 as
of August 31, 2004, consist of two commercial loans and 21 consumer loans. The
Company has determined that an impairment charge presently is required with
respect to 13 of the consumer loans. The total principal amount of those 13
loans is $6,000,783, as of August 31, 2004. The Company estimates that the
specific charge for impairment applicable to these 13 consumer loans will be
$1,035,189; and the Company will record a specific provision for loan losses in
that amount for the month ended August 31, 2004.
The Company regularly reviews its allowance for loan losses at the end of each
month to determine the adequacy of the allowance. The charge described above
will be in addition to any other provision that may be required pursuant to this
regular monthly review.
At this time, the Company does not anticipate that this impairment charge of
$1,035,189 will result in any future material cash expenditures.
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.
--------------------------------
(Registrant)
Date: September 8, 2004
By: /s/ Patrick A. Kelly
--------------------------------
Patrick A. Kelly
Chief Financial Officer