EX-10.1



 Exhibit 10.1 
 UNITED COMMUNITY FINANCIAL CORP. & 
 THE HOME SAVINGS AND LOAN
COMPANY OF YOUNGSTOWN, OHIO 
 EXECUTIVE INCENTIVE PLAN 

ADOPTED: March 26, 2013 
 The United Community Financial Corp.’s (the “Company”) Executive Incentive Plan (“EIP”) provides incentive compensation awards to certain executive officers, which at the time of
adoption of the EIP included Patrick W. Bevack, President and CEO of the Company and the Company’s wholly-owned subsidiary, The Home Savings and Loan Company of Youngstown, Ohio (“Home Savings”), James R. Reske, Treasurer and Chief
Financial Officer of the Company and Executive Vice President of Home Savings, Jude J. Nohra, General Counsel and Secretary of the Company and Senior Vice President, General Counsel and Secretary of Home Savings, Gregory G. Krontiris, Senior Vice
President and Chief Lending Officer of Home Savings, Matthew T. Garrity, Senior Vice President and Chief Credit Officer of Home Savings and Timothy W. Esson, Senior Vice President, Chief Financial Officer and Treasurer of Home Savings. Executive
incentive awards are based upon the actual performance of the Company for a given year by comparing the 12 months ended September 30 to the actual performance of the peer group (see below) during the same 12 month period. See the
“Weightings” table below. 
 The Compensation Committee and the Board of Directors previously developed a peer group,
which it periodically reviews and revises as necessary. The peer group currently includes the following eighteen (18) organizations: 

Peer Group: 
  

			
	 Community Trust Bancorp, Inc. (CTBI)
	  	Macatawa Bank Corporation (MCBC)
	 BankFinancial Corp (BFIN)
	  	MainSource Financial Group, Inc. (MSFG)
	 CFS Bancorp (CITZ)
	  	Mercantile Bank Corporation (MBWM)
	 ESB Financial Corporation (ESBF)
	  	Metro Bancorp, Inc. (METR)
	 Farmers Capital Bank Corporation (FFKT)
	  	Old Second Bancorp, Inc. (OSBC)
	 First Defiance Financial Corp. (FDEF)
	  	Peoples Bancorp Inc. (PEBO)
	 First Financial Corporation (THFF)
	  	Porter Bancorp, Inc. (PBIB)
	 Independent Bank Corporation (IBCP)
	  	S. Y. Bancorp, Inc. (SYBT)
	 Lakeland Financial Corporation (LKFN)
	  	Univest Corporation of Pennsylvania (UVSP)

 In order for any awards to be made under the EIP for a calendar year’s performance, the Company must
report positive net income for that calendar year ended December 31, calculated in accordance with GAAP, but adjusted to exclude the effect of extraordinary items. If this threshold is met, incentive awards will be calculated based upon the
Company’s performance against its peers in five of the six weighted performance measures. Performance against the peer group is only measured against five of the six weighted performance measures because performance against budgeted net income
is intrinsic to UCFC. See the “Weightings” table below. 
 The target and maximum incentive awards,
respectively, measured as a percentage of base salary are as follows: Mr. Bevack—50%, 100%; and Messrs. Esson, Garrity, Krontiris, Nohra and Reske—40%, 80%. Once the award under the EIP is calculated, it is paid 60% in cash and
40% in restricted stock or stock options. The restricted stock or stock option awards will be awarded under the Amended and Restated United Community Financial Corp. 2007 Long-Term Incentive Plan and vest equally over three years, beginning on the
first anniversary of the award. 
 The calculation of the incentive awards under the EIP is as follows. First, it must be
determined where the Company’s actual performance falls in comparison to the peer group for each of the six performance measures. The comparison is based upon percentiles that correspond to a threshold level for that performance measure. See
the “Threshold Levels” table below. 







 Threshold Levels: 
  

													
	 	 	 Overall Profitability
	 	 Growth Rate
	 	 Asset Quality

	 Level
	 	 Core

ROAE
	 	 Core

ROAA
	 	 Net Income

Budget
	 	 Core Deposit

Growth
	 	 Texas

Ratio
	 	 NCOs/

Average

Loans

	 1
	 	<25th Pct	 	<25th Pct	 	70% of Budget	 	<25th Pct	 	<25th Pct	 	<25th Pct
	 2
	 	25th	 	25th	 	75%	 	25th	 	25th	 	25th
	 3
	 	30th	 	30th	 	80%	 	30th	 	30th	 	30th
	 4
	 	35th	 	35th	 	85%	 	35th	 	35th	 	35th
	 5
	 	40th	 	40th	 	95%	 	40th	 	40th	 	40th
	 6
	 	Median	 	Median	 	100%	 	Median	 	Median	 	Median
	 7
	 	55th	 	55th	 	105%	 	55th	 	55th	 	55th
	 8
	 	60th	 	60th	 	115%	 	60th	 	60th	 	60th
	 9
	 	65th	 	65th	 	120%	 	65th	 	65th	 	65th
	 10
	 	70th	 	70th	 	125%	 	70th	 	70th	 	70th
	 11
	 	>75th Pct	 	>75th Pct	 	130%	 	>75th Pct	 	>75th Pct	 	>75th Pct

 Definitions: 
  

	 	•	 	 Pct: Percentile Rank within defined Peer Group 


  

	 	•	 	 “Core” ROAE and ROAA: GAAP performance excluding extraordinary items; 



 

	 	•	 	 Core Deposit Growth: Total Deposits less time deposits; 



 

	 	•	 	 Texas Ratio: Nonperforming Assets divided by sum of Tangible Common Equity plus Loan Loss Reserve; and 



 

	 	•	 	 “NCOs”: means Net charge offs. 


 The Committee maintains flexibility and discretion to conduct the evaluation and measurement of “Core” ROAE and ROAA on either a pre- or post-tax basis, depending upon the Committee’s
determination as to which method provides the best comparison of the peer group and most appropriately reflects the goals of the EIP and the Board’s compensation philosophy. 

Then, the threshold level achieved is used to determine the bonus percentage for that performance measure based upon the executive
officer’s position. See the “Bonus Percentages” table below. 
 Bonus Percentages as Percent of Base Compensation:

  

											
	 Threshold

Level
	  	Pres/CEO
Group 1	 	 	EVP/SVP’s
Group 2	 	 	 Actual Performance versus Peers

	 1
	  	 	0.0	% 	 	 	0.0	% 	 	Below 25th Percentile
	 2
	  	 	10.0	% 	 	 	8.0	% 	 	Above 25th percentile
	 3
	  	 	20.0	% 	 	 	16.0	% 	 	Above 30th percentile
	 4
	  	 	30.0	% 	 	 	24.0	% 	 	Above 35th Percentile
	 5
	  	 	40.0	% 	 	 	32.0	% 	 	Above 40th Percentile
	 6
	  	 	50.0	% 	 	 	40.0	% 	 	At or Above Median
	 7
	  	 	60.0	% 	 	 	48.0	% 	 	Above 55th Percentile
	 8
	  	 	70.0	% 	 	 	56.0	% 	 	Above 60th Percentile
	 9
	  	 	80.0	% 	 	 	64.0	% 	 	Above 65th Percentile
	 10
	  	 	90.0	% 	 	 	72.0	% 	 	Above 70th Percentile
	 11
	  	 	100.0	% 	 	 	80.0	% 	 	At or Above
75th Percentile

 The bonus percentage is multiplied by the performance measure’s assigned weighting and by the
executive’s base salary to determine what amount, if any, is awarded for the Company’s actual performance for that 







 
performance measure. The amount earned for each performance measure is added together to determine the total incentive award under the EIP. 

Weightings for Performance Measures: 
  

					
	Profitability	  	Weight	 
		  	 	40.0	% 
		  	  
	  
	 
	 ROAE
	  	 	5.0	% 
	 ROAA
	  	 	25.0	% 
	 Budget Net Income
	  	 	10.0	% 
		
	 Growth
	  	 	10.0	% 
		  	  
	  
	 
	 Core Deposit Growth
	  	 	10.0	% 
		
	 Asset Quality
	  	 	50.0	% 
		  	  
	  
	 
	 Texas Ratio
	  	 	40.0	% 
	 NCOs/Average Loans
	  	 	10.0	% 
		
	 Total Weighting
	  	 	100.0	% 
		  	  
	  
	 

 For example, if the Company’s Core ROAE for a given year falls into the
40th percentile when compared to its peers,
Mr. Bevack’s incentive award for that performance measure would be as follows: 
  

											
	 Incentive Plan
	 		  	Bonus Percentage (based)	 		  		  	
						
	 Weighting
	 		  	on Threshold Level achieved	 		  	Base Salaryi	  	
	 5.0%     
	 	    X    	  	40%	 	    X    	  	$386,250	  	= $7,725.00

 The Plan further provides that a participant in the Plan must be employed with the Company on the date
the award is made; otherwise, the participant is not entitled to any award. 
 The Board maintains discretion to amend, modify,
terminate or otherwise adjust the Plan as necessary. 
  
  


	i 	 Based upon Mr. Bevack’s salary for the 2013 calendar year.