##### Table of Contents



UNITED
    STATES SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
    20549
  Form 10-K
  þ

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the fiscal year ended
    December 31, 2006ORo

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period
    from           to   Commission File Number: 0-024399
 UNITED COMMUNITY FINANCIAL
    CORP.
 (Exact name of registrant as
    specified in its charter)
  Ohio

34-1856319(State or other jurisdiction
    of

(I.R.S. Employerincorporation or
    organization)

Identification Number)275 West Federal
    Street,
    Youngstown, Ohio

44503(Zip Code)(Address of principal executive
    offices)   Registrants
    telephone number:
 (330)
    742-0500
  Securities registered pursuant to Section 12(b) of the
    Act:
  None

None(Title of Class)

(Name of each exchange on which
    registered)   Securities registered pursuant to Section 12(g) of the
    Act:
   Common
    shares, no par value per share (Title
    of Class)
  þ o
  o þ
  þ o
  Regulation S-K Form 10-K o
   o þ o
  Rule 12b-2 o þ
      DOCUMENTS
    INCORPORATED BY REFERENCE
  Form 10-K 




---



##### 



TABLE OF
    CONTENTS
  
  ItemNumber



PagePART I1.


Description of
    Business


1General


1Discussion
    of Forward-Looking Statements


2Lending
    Activities


2Investment
    Activities


11Sources
    of Funds


12Competition


14Employees


15Regulation


151A.


Risk
    Factors


161B.


Unresolved Staff
    Comments


182.


Properties


183.


Legal
    Proceedings


184.


Submission of
    Matters to a Vote of Security Holders


18PART II5.


Market for
    Registrants Common Equity and Related Shareholder
    Matters


196.


Selected Financial
    Data


217.


Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations


237A.


Quantitative and
    Qualitative Disclosures About Market Risk


328.


Financial
    Statements and Supplemental Data


359.


Changes in and
    Disagreements with Accountants on Accounting and Financial
    Disclosure


739A.


Controls and
    Procedures


739B.


Other
    Information


73PART III10.


Directors and
    Executive Officers and Corporate Governance


7311.


Executive
    Compensation


7312.


Security Ownership
    of Certain Beneficial Owners and Management and Related
    Shareholder Matters


7313.


Certain
    Relationships and Related Transactions and Director
    Independence


7414.


Principal
    Accountant Fees and Services


74PART IV15.


Exhibits, Financial
    Statement Schedules and Reports on
    Form 8-K


74Signatures


75Exhibit Index


76EX-21EX-23EX-31.1EX-31.2EX-32




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##### Table of Contents



PART I  Item 1.
    Description
    of Business GENERAL    http://www.ucfconline.com Form 10-K, Form 10-Q, Form 8-K,
           1




---



##### Table of Contents



DISCUSSION
    OF FORWARD-LOOKING STATEMENTS  Form 10-K
   LENDING
    ACTIVITIES  General.
 2




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##### Table of Contents



Loan Portfolio Composition.
  At December 31,2006


2005


2004


2003


2002Percent of





Percent of





Percent of





Percent of





Percent ofAmount


Total Loans


Amount


Total Loans


Amount


Total Loans


Amount


Total Loans


Amount


Total Loans(Dollars in thousands)Real estate loans:Permanent loans:One- to four-family residential

$
854,829



37.65
%

$
749,362



35.44
%

$
690,413



37.68
%

$
599,370



37.62
%

$
884,950



59.13
%Multifamily residential


163,541



7.20



154,702



7.32



153,011



8.35



148,362



9.31



78,298



5.23Non-residential


348,528



15.35



314,124



14.86



289,755



15.81



291,588



18.30



226,399



15.13Land


26,684



1.18



14,979



0.71



14,701



0.80



14,147



0.89



5,812



0.39Total permanent


1,393,582



61.38



1,233,167



58.33



1,147,880



62.64



1,053,467



66.12



1,195,459



79.88Construction loans:One- to four-family residential


388,926



17.13



389,558



18.43



301,193



16.44



244,837



15.37



73,047



4.88Multifamily and non-residential


25,215



1.11



66,788



3.16



47,230



2.58



27,586



1.73



27,625



1.85Total construction


414,141



18.24



456,346



21.59



348,423



19.01



272,423



17.10



100,672



6.73Total real estate loans


1,807,723



79.62



1,689,513



79.92



1,496,303



81.65



1,325,890



83.22



1,296,131



86.61Consumer loans:Home equity


220,679



9.72



196,986



9.32



133,441



7.28



134,053



8.41



109,671



7.33Auto


36,605



1.61



42,975



2.03



58,148



3.17



48,219



3.03



36,052



2.41Marine


19,218



0.85



23,434



1.11



31,622



1.73



22,987



1.44



63



0.00RV


59,642



2.63



48,108



2.27



27,330



1.49



15



0.00



25



0.00Other(1)


9,463



0.42



12,012



0.57



17,105



0.94



13,488



0.85



10,085



0.68Total consumer


345,607



15.23



323,515



15.30



267,646



14.61



218,762



13.73



155,896



10.42Commercial loans


116,952



5.15



100,977



4.78



68,523



3.74



48,570



3.05



44,470



2.97Total loans


2,270,282



100.00
%


2,114,005



100.00
%


1,832,472



100.00
%


1,593,222



100.00
%


1,496,497



100.00
%Less net items


16,723







16,572







16,496







16,728







18,284Total loans, net

$
2,253,559






$
2,097,433






$
1,815,976






$
1,576,494






$
1,478,213     (1)
    
    Consists primarily of overdraft protection loans and loans to
    individuals secured by demand accounts, deposits and other
    consumer assets.  Loan Maturity. due-on-sale
 3




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##### Table of Contents



Principal Repayments ContractuallyDue in the Years Ended December 31,2012 and2007


2008-2011


Thereafter


Total(Dollars in thousands)Construction loans:One- to four-family residential

$
357,736


$
537


$
30,653


$
388,926Multifamily and non-residential


7,233



9,693



8,289



25,215364,969



10,230



38,942



414,141Commercial loans


71,108



37,492



8,352



116,952Total

$
436,077


$
47,722


$
47,294


$
531,093     Due After December 31, 2007(Dollars in thousands)Fixed rate

$
53,839Adjustable rate


41,177$
95,016   Loans Secured by One- to Four-Family Real
    Estate.
  30-year
      time-to-time,
   4




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##### Table of Contents



Loans Secured by Multifamily Residences.
      Loans Secured by Nonresidential Real
    Estate.
      Loans Secured by Vacant Land.
  Construction Loans.
   5




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##### Table of Contents



Consumer Loans.
          Commercial Loans.
   6




---



##### Table of Contents



Loan Solicitation and Processing.
          Loan Originations, Purchases and Sales.
    tm
   7




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##### Table of Contents



Loans to One Borrower Limits.
    Delinquent Loans, Nonperforming Assets and Classified
    Assets.
    At December 31,2006


2005Percent of








Percent ofNet








NetNumber


Amount


Loans


Number


Amount


Loans(Dollars in thousands)Loans delinquent for:30-59 days


347


$
32,315



1.43
%


295


$
19,098



0.90
%60-89 days


93



9,413



0.42



81



14,193



0.6790 days or over


297



52,313



2.32



220



24,391



1.15Total delinquent loans


737


$
94,041



4.17
%


596


$
57,682



2.72
%   deed-in-lieu
   8




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##### Table of Contents



At December 31,2006


2005


2004


2003


2002(Dollars in thousands)Nonperforming loans:Nonaccrual loansReal estate loans:One- to four-family residential

$
8,977


$
6,795


$
6,511


$
7,121


$
7,567Multifamily and nonresidential


16,569



6,368



2,880



1,315



2,049Construction (net of loans in
    process) and land


20,858



4,732



1,350



1,724



3,141Total real estate loans


46,404



17,895



10,741



10,160



12,757Consumer


3,245



2,495



5,152



888



715Commercial


2,997



3,889



4,960



1,933



952Total nonaccrual loans


52,646



24,279



20,853



12,981



14,424Restructured loans


1,385



825



1,329



1,853



1,271Past due 90 days and still
    accruing


796



563



377



1,300



Total nonperforming loans


54,827



25,667



22,559



16,134



15,695Real estate acquired through
    foreclosure and other repossessed assets


3,243



2,514



1,682



1,299



1,150Total nonperforming assets

$
58,070


$
28,181


$
24,241


$
17,433


$
16,845Nonperforming loans as a percent
    of loans, net


2.43
%


1.22
%


1.24
%


1.02
%


1.06
%Nonperforming assets as a percent
    of total assets


2.15



1.11



1.06



0.84



0.85Allowance for loan losses as a
    percent of nonperforming loans


30.92



61.26



70.38



93.66



96.20Allowance for loan losses as a
    percent of loans, net


0.75



0.74



0.87



0.96



1.02          9




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##### Table of Contents



Allowance for Loan Losses.
    Year Ended December 31,2006


2005


2004


2003


2002(Dollars in thousands)Balance at beginning of period

$
15,723


$
15,877


$
15,111


$
15,099


$
11,480Provision for loan losses


4,347



3,028



9,370



3,179



3,578Charge-offs:Real estate


(1,057
)


(996
)


(1,016
)


(2,111
)


(347
)Consumer


(2,334
)


(2,848
)


(6,177
)


(650
)


(410
)Commercial


(47
)


(241
)


(1,867
)


(579
)


(1,210
)Total charge-offs


(3,438
)


(4,085
)


(9,060
)


(3,340
)


(1,967
)Recoveries:Real estate


35



53



325



94



71Consumer


283



848



72



41



65Commercial


5



2



59



38



3Total recoveries


323



903



456



173



139Net charge-offs


(3,115
)


(3,182
)


(8,604
)


(3,167
)


(1,828
)Acquisition of Potters Bank


















1,869Balance at end of year

$
16,955


$
15,723


$
15,877


$
15,111


$
15,099Ratio of net charge-offs to
    average net loans


(0.14
)%


(0.16
)%


(0.50
)%


(0.21
)%


(0.12
)%    10




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##### Table of Contents



At December 31,2006


2005


2004


2003


2002Percent of





Percent of





Percent of





Percent of





Percent ofLoans in Each





Loans in Each





Loans in Each





Loans in Each





Loans in EachCategory to





Category to





Category to





Category to





Category toAmount


Total Loans


Amount


Total Loans


Amount


Total Loans


Amount


Total Loans


Amount


Total Loans(Dollars in thousands)Real estate loans

$
8,780



79.63
%

$
9,683



79.92
%

$
10,559



81.65
%

$
10,796



83.22
%

$
11,017



86.61
%Consumer loans


5,147



15.22



3,378



15.30



3,615



14.61



2,670



13.73



1,947



10.42Commercial loans


3,028



5.15



2,662



4.78



1,703



3.74



1,645



3.05



2,135



2.97Total

$
16,955



100.00
%

$
15,723



100.00
%

$
15,877



100.00
%

$
15,111



100.00
%

$
15,099



100.00
%  INVESTMENT
    ACTIVITIES  General.
  Home Savings Investment Activities.
     11




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##### Table of Contents



Butler Wick Investment Activities.
    United Community Investment Activities.
    At December 31, 2006No Stated








Five YearsMaturity


One Year or Less


After One Year through Five Years


through Ten YearsAmortized


Average


Amortized


Average


Amortized


Average


Amortized


AverageCost


Yield


Cost


Yield


Cost


Yield


Cost


Yield(Dollars in thousands)Securities:U.S Government agencies and
    corporations

$





%

$
30,319



3.50
%

$
37,849



4.35
%

$
29,339



5.31
%Mortgage-related securities










42



7.41



546



8.02



17,323



4.56Other securities(a)


7,337



4.38























Total securities

$
7,337



4.38
%

$
30,361



3.51
%

$
38,395



4.40
%

$
46,662



5.03
%   At December 31, 2006After Ten Years


TotalAmortized


Average


Amortized


Average


FairCost


Yield


Cost


Yield


Value(Dollars in thousands)Securities:U.S. Government agencies and
    corporations

$





%

$
97,507



4.37
%

$
96,848Mortgage-related securities


116,646



4.96



134,557



4.92



132,818Other securities(a)










7,337



4.38



7,866Total securities

$
116,646



4.96
%

$
239,401



4.68
%

$
237,532     (a)
    
    Yield on equity securities only; mutual funds excluded SOURCES
    OF FUNDS  General.
 12




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##### Table of Contents



Deposits.
    At December 31, 2006


For the Year Ended December 31, 2006Percent


Weighted





Percent


Weightedof Total


Average


Average


of Average


AverageAmount


Deposits


Rate


Balance


Deposits


Rate(Dollars in thousands)Noninterest bearing demand

$
102,509



5.62
%



%

$
96,067



5.47
%



%Checking and money market accounts


370,980



20.35



3.37



330,856



18.83



3.04Savings accounts


195,331



10.72



0.41



218,590



12.44



0.41Certificates of deposit


1,154,115



63.31



4.66



1,111,602



63.26



4.29Total deposits

$
1,822,935



100.00
%


3.68
%

$
1,757,115



100.00
%


3.34
%   For the Year Ended December 31, 2005


For the Year Ended December 31, 2004Percent


Weighted





Percent


WeightedAverage


of Average


Average


Average


of Average


AverageBalance


Deposits


Rate


Balance


Deposits


Rate(Dollars in thousands)Noninterest bearing demand

$
89,483



5.64
%



%

$
75,157



5.13
%



%Checking and money market accounts


269,652



17.00



1.20



302,936



20.67



0.79Savings accounts


287,714



18.15



0.42



314,588



21.46



0.43Certificates of deposit


938,957



59.21



3.57



773,019



52.74



3.18Total deposits

$
1,585,806



100.00
%


2.39
%

$
1,465,700



100.00
%


1.93
%     Over


OverUp to


1 Year to


2 Years toRate

One Year


2 Years


3 Years


Thereafter


Total(Dollars in thousands)2.00% or less

$
6,480


$
1,721


$
2,143


$
234


$
10,5782.01% to 4.00%


92,453



55,163



7,850



6,279



161,7454.01% to 6.00%


787,242



53,990



34,285



106,226



981,743Greater than 6.00%


32



17











49Total certificates of deposit

$
886,207


$
110,891


$
44,278


$
112,739


$
1,154,115Percent of total certificates of
    deposit


76.79
%


9.61
%


3.83
%


9.77
%


100.00
%    13




---



##### Table of Contents



Maturity

Amount(Dollars in thousands)Three months or less

$
50,510Over 3 months to 6 months


67,618Over 6 months to
    12 months


90,141Over 12 months


67,600Total

$
275,869       Year Ended December 31,2006


2005(Dollars in thousands)Beginning balance

$
1,681,844


$
1,522,952Net increase in deposits


81,914



122,020Net deposits before interest
    credited


1,763,758



1,644,972Interest credited


59,177



36,872Ending balance

$
1,822,935


$
1,681,844Net increase

$
141,091


$
158,892Percent increase


8.39
%


10.43
%   Borrowings.
   COMPETITION   14




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##### Table of Contents



EMPLOYEES   REGULATION    truth-in-lending
       15




---



##### Table of Contents



1 3
    Item 1A.
    Risk
    Factors    Changes
    in interest rates could adversely affect our financial condition
    and results of operations.
       16




---



##### Table of Contents



Credit
    risks could adversely affect our results of
    operations.
    We
    operate in an extremely competitive market, and our business
    will suffer if we are unable to compete
    effectively.
    Legislative
    or regulatory changes or actions could adversely impact the
    financial services industry.
  10-K
  Our
    ability to pay cash dividends is limited.
    The
    preparation of financial statements requires management to make
    estimates about matters that are inherently
    uncertain.
   17




---



##### Table of Contents



We
    face risks with respect to future expansion.
      Item 1B.
    Unresolved
    Staff Comments    Item 2.
    Properties    Item 3.
    Legal
    Proceedings    Item 4.
    Submission
    of Matters to a Vote of Security Holders   18




---



##### Table of Contents



PART II  Item 5.
    Market
    for Registrants Common Equity, Related Shareholder Matters
    and Issuer Purchases of Equity Securities  ®
  First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter2006High

$
13.13


$
12.48


$
13.22


$
13.30Low


11.38



11.06



11.25



12.00Close


12.12



12.00



12.32



12.24Dividends declared and paid


.09



.09



.09



.092005High

$
11.53


$
11.75


$
11.75


$
12.50Low


10.00



10.05



10.53



10.28Close


11.09



10.94



11.22



11.81Dividends declared and paid


0.0825



0.0825



0.0825



0.0825      19




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##### Table of Contents



Performance
    Graph
    United
    Community Financial Corp.
    Total Return Performance
   
  Period EndingIndex

12/31/01

12/31/02

12/31/03

12/31/04

12/31/05

12/31/06United Community Financial
    Corp.


100.00



124.56



169.51



170.66



185.43



197.86NASDAQ Composite


100.00



68.76



103.67



113.16



115.57



127.58SNL Thrift


100.00



119.29



168.88



188.16



194.80



227.07  20




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##### Table of Contents



Item 6.
    Selected
    Financial Data  At December 31,2006


2005


2004


2003


2002(In thousands)Selected financial condition data:Total assets

$
2,703,545


$
2,528,850


$
2,287,788


$
2,073,833


$
1,990,131Cash and cash equivalents


35,637



37,545



40,281



81,155



110,936Securities:Trading, at fair value


10,786



10,812



32,316



15,600



5,060Available for sale, at fair value


237,531



201,870



198,404



227,525



237,268Loans held for sale


26,960



29,109



59,099



37,715



45,825Loans, net


2,253,559



2,097,433



1,815,976



1,576,494



1,478,213Federal Home Loan Bank stock,
    at cost


25,432



24,006



22,842



21,924



21,069Cash surrender value of life
    insurance


23,137



22,260



21,406



20,496



Deposits


1,822,935



1,681,844



1,522,952



1,423,698



1,481,901Borrowed funds


563,764



550,763



483,503



338,463



210,024Total shareholders equity


281,333



264,735



252,352



279,836



274,569   Year Ended December 31,2006


2005


2004


2003


2002(In thousands)Summary of earnings:Interest income

$
165,430


$
136,052


$
113,441


$
111,663


$
125,960Interest expense


84,428



57,296



40,378



40,252



54,236Net interest income


81,002



78,756



73,063



71,411



71,724Provision for loan losses


4,347



3,028



9,370



3,179



3,578Net interest income after
    provision for loan losses


76,655



75,728



63,693



68,232



68,146Non-interest income


40,274



38,260



36,109



40,845



31,806Non-interest expenses


79,818



78,881



72,834



73,572



68,359Income before income taxes


37,111



35,107



26,968



35,505



31,593Income taxes


13,000



11,910



9,103



12,565



10,776Net income

$
24,111


$
23,197


$
17,865


$
22,940


$
20,817   21




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##### Table of Contents



At or for the Year Ended December 31,2006


2005


2004


2003


2002Selected financial ratios and
    other data:Performance ratios:Return on average assets(1)


0.92
%


0.96
%


0.83
%


1.15
%


1.04
%Return on average
    shareholders equity(2)


8.72



8.89



7.01



8.27



7.74Interest rate spread(3)


2.83



3.15



3.34



3.51



3.36Net interest margin(4)


3.26



3.47



3.60



3.81



3.79Non-interest expense to average
    assets


3.04



3.27



3.37



3.70



3.74Efficiency ratio(5)


65.33



67.00



65.87



65.29



64.52Average interest earning assets to
    average interest bearing liabilities


112.41



112.41



113.16



114.24



114.98Capital ratios:Average equity to average assets


10.53



10.83



11.78



13.95



13.48Shareholders equity to
    assets at year end


10.41



10.47



11.03



13.49



13.80Tier 1 leverage ratio


7.68



8.36



8.36



8.22



8.05Tier 1 risk-based capital
    ratio


9.49



10.08



9.92



9.64



11.64Total risk-based capital ratio


11.70



10.86



10.79



10.56



12.61Asset quality ratios:Nonperforming loans to loans,
    net(6)


2.43



1.22



1.24



1.02



1.06Nonperforming assets to total
    assets at year end(7)


2.15



1.11



1.06



0.84



0.85Allowance for loan losses as a
    percent of loans


0.75



0.74



0.87



0.96



1.02Allowance for loan losses as a
    percent of nonperforming loans(6)


30.92



61.26



70.38



93.66



96.20Number of:Loans


46,333



43,630



41,690



37,668



37,872Deposits


189,588



183,565



173,997



169,920



173,528Per share data:Basic earnings(8)

$
0.83


$
0.81


$
0.61


$
0.73


$
0.65Diluted earnings(8)


0.82



0.80



0.60



0.72



0.65Book value(9)


9.08



8.52



8.09



8.21



7.79Dividend per share


0.36



0.33



0.30



0.30



0.30Dividend payout ratio(10)


43.90
%


41.25
%


50.00
%


41.67
%


46.15
%     (1)
    
    Net income divided by average total assets.(2)
    
    Net income divided by average total equity.(3)
    
    Difference between weighted average yield on interest earning
    assets and weighted average cost of interest bearing
    liabilities.(4)
    
    Net interest income as a percentage of average interest
    earning assets.(5)
    
    Non-interest expense, excluding the amortization of core
    deposit intangible, divided by the sum of net interest income
    and non-interest income, excluding gains and losses on
    securities and other.(6)
    
    Nonperforming loans consist of loans ninety days past due,
    loans less then ninety days past due and not accruing and
    restructured loans.(7)
    
    Nonperforming assets consist of nonperforming loans and real
    estate acquired in settlement of loans and other repossessed
    assets. 22




---



##### Table of Contents



(8)
    
    Net income divided by average number of basic or diluted
    shares outstanding.(9)
    
    Shareholders equity divided by number of shares
    outstanding.(10)
    
    Historical per share dividends declared and paid for the year
    divided by the diluted earnings per share for the year.  Item 7.
    Managements
    Discussion and Analysis of Financial Condition and Results of
    Operations  General
      Forward-Looking
    Statements
    Changes
    in Financial Condition
           23




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##### Table of Contents



24




---



##### Table of Contents



Employers
    Accounting for Defined Benefit Pension and Other Postretirement
    Plans  an amendment of FASB Statements No. 87,
    88, 106 and 132(R).
 25




---



##### Table of Contents



Comparison
    of Operating Results for the Years Ended December 31, 2006
    and December 31, 2005
  Net Income
  Net Interest Income
    Provision for Loan Losses
    Non-interest Income
     26




---



##### Table of Contents



Non-interest Expense
  Federal Income Taxes
  Comparison
    of Operating Results for the Years Ended December 31, 2005
    and December 31, 2004
  Net Income
  Net Interest Income
    Provision for Loan Losses
 27




---



##### Table of Contents



Non-interest Income
  other-than-temporary
      Non-interest Expense
  Federal Income Taxes
  Critical
    Accounting Policies and Estimates
    other-than-temporary
 28




---



##### Table of Contents



Allowance for loan losses.
      Mortgage servicing rights.
      Other-than-temporary
    impairment. other-than-temporary. other-than-temporary other-than-temporary
 29




---



##### Table of Contents



Yields
    Earned and Rates Paid
    Year Ended December 31,2006


2005


2004Average


Interest





Average


Interest





Average


InterestOutstanding


Earned/


Yield/


Outstanding


Earned/


Yield/


Outstanding


Earned/


Yield/Balance


Paid


Rate


Balance


Paid


Rate


Balance


Paid


Rate(Dollars in thousands)Interest earning assets:Net loans(1)

$
2,186,559


$
151,029



6.91
%

$
1,979,294


$
123,749



6.25
%

$
1,728,139


$
102,453



5.93
%Loans held for sale


37,549



1,894



5.04



33,845



1,651



4.88



30,814



1,449



4.70Securities:Trading


6,494



300



4.62



29,777



943



3.17



29,221



736



2.52Available for sale


214,679



9,408



4.38



186,404



7,227



3.88



200,069



7,022



3.51Margin accounts


11,443



1,069



9.34



15,659



1,219



7.78



14,117



802



5.68Federal Home Loan Bank stock


24,533



1,426



5.81



23,250



1,164



5.01



22,262



919



4.13Other interest earning assets


4,816



304



6.31



3,867



99



2.56



4,958



60



1.21Total interest earning assets

$
2,486,073


$
165,430



6.65
%

$
2,272,096


$
136,052



5.98
%

$
2,029,580


$
113,441



5.59
%Non-interest earning assets


138,218











136,728











132,972Total assets

$
2,624,291










$
2,408,824










$
2,162,552Interest bearing liabilities:Deposits:Checking accounts

$
330,856


$
10,060



3.04
%

$
269,652


$
3,231



1.20
%

$
302,936


$
2,386



0.79
%Savings accounts


218,590



899



0.41



287,714



1,201



0.42



314,588



1,361



0.43Certificates of deposit


1,111,602



47,681



4.29



938,957



33,488



3.57



773,019



24,614



3.18Federal Home Loan Bank advances


452,023



21,246



4.70



460,205



17,364



3.77



351,800



11,254



3.20Repurchase agreements and other


98,457



4,542



4.61



64,776



2,012



3.11



51,142



763



1.49Total interest bearing liabilities

$
2,211,528


$
84,428



3.82
%

$
2,021,304


$
57,296



2.83
%

$
1,793,485


$
40,378



2.25
%Non-interest bearing liabilities


136,349











126,673











114,277Total liabilities

$
2,347,877










$
2,147,977










$
1,907,762Shareholders equity


276,414











260,847











254,790Total liabilities and equity

$
2,624,291










$
2,408,824










$
2,162,552Net interest income and interest
    rate spread





$
81,002



2.83
%





$
78,756



3.15
%





$
73,063



3.34
%Net interest margin










3.26
%










3.47
%










3.60
%Average interest earning assets to
    average interest bearing liabilities










112.41
%










112.41
%










113.16
%     (1)
    
    Nonaccrual loans are included in the average balance. 30




---



##### Table of Contents



Year Ended December 31,2006 vs. 2005


2005 vs. 2004Increase


Total


Increase


Total(Decrease) Due to


Increase


(Decrease) due to


IncreaseRate


Volume


(Decrease)


Rate


Volume


(Decrease)(Dollars in thousands)Interest earning assets:Loans

$
13,643


$
13,637


$
27,280


$
5,815


$
15,481


$
21,296Loans held for sale


58



185



243



56



146



202Securities:Trading


913



(1,556
)


(643
)


193



14



207Available for sale


1,008



1,173



2,181



590



(385
)


205Margin accounts


434



(584
)


(150
)


322



95



417Federal Home Loan Bank stock


195



67



262



203



42



245Other interest earning assets


176



29



205



49



(10
)


39Total interest earning assets

$
16,427


$
12,951


$
29,378


$
7,228


$
15,383


$
22,611Interest bearing liabilities:Checking accounts

$
5,951


$
878


$
6,829


$
1,071


$
(226
)

$
845Savings accounts


(17
)


(285
)


(302
)


(47
)


(113
)


(160
)Certificates of deposit


7,442



6,751



14,193



3,183



5,691



8,874Federal Home Loan Bank
    advances


4,185



(303
)


3,882



2,249



3,861



6,110Repurchase agreements and other


1,220



1,309



2,530



1,002



247



1,249Total interest bearing liabilities

$
18,781


$
8,350


$
27,132


$
7,458


$
9,460


$
16,918Change in net interest income









$
2,246










$
5,693   Contractual
    Obligations, Commitments, Contingent Liabilities and Off-balance
    Sheet Arrangements
    Payments Due InNote


One Year


One to


Three to


OverReference


or Less


Three Years


Five Years


Five Years


Total(Dollars in thousands)Operating leases


6


$
1,539


$
2,668


$
2,156


$
629


$
6,992Deposits without a stated maturity


8



668,820















668,820Certificates of deposit


8



886,206



155,169



109,183



3,557



1,154,115Federal Home Loan Bank
    advances


9



391,957



53,364



8,258



11,674



465,253Repurchase agreements and other
    borrowings


10



38,511











60,000



98,511  31




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##### Table of Contents



Item 7A.
    Quantitative
    and Qualitative Disclosures About Market Risk  Qualitative Aspects of Market Risk.
  Quantitative Aspects of Market Risk.
      Year Ended December 31, 2006NPV as % of Portfolio Value of Assets


Next 12 Months Net Interest IncomeInternal








InternalPolicy








LimitationsChange in Rates (Basis Points)

NPV Ratio


Limitations


Change in %


$ Change


Policy


% Change(Dollars in thousands)+300


8.92
%


5.00
%


(2.27
)%

$
(10,078
)


(15.00
)%


(13.95
)%+200


9.81



6.00



(1.38
)


(6,455
)


(10.00
)


(8.94
)+100


10.60



6.00



(0.59
)


(2,972
)


(5.00
)


(4.12
)Static


11.19



7.00















(100)


11.19



6.00







2,651



(5.00
)


3.67(200)


10.62



6.00



(0.57
)


3,548



(15.00
)


4.91(300)


9.69



5.00



(1.50
)


2,254



(20.00
)


3.12   32




---



##### Table of Contents



Year Ended December 31, 2005NPV as % of Portfolio Value of Assets


Next 12 Months Net Interest IncomeInternal Policy








Internal PolicyChange in Rates (Basis Points)

NPV Ratio


Limitations


Change in %


$ Change


Limitations


% Change(Dollars in thousands)+300


11.90
%


5.00
%


(1.35
)%

$
322



(15.00
)%


0.43
%+200


12.45



6.00



(0.80
)


390



(10.00
)


0.52+100


12.88



6.00



(0.36
)


(276
)


(5.00
)


(0.37
)Static


13.24



7.00















(100)


13.08



6.00



(0.16
)


(649
)


(5.00
)


(0.87
)(200)


12.38



6.00



(0.86
)


(3,638
)


(15.00
)


(4.89
)(300)


10.98



5.00



(2.26
)


(10,678
)


(20.00
)


(14.37
)           Potential
    Impact of Changes in Interest Rates
    Liquidity
    and Capital
    Years Ended December 31,2006


2005


2004(Dollars in thousands)Net income

$
24,111


$
23,197


$
17,865Adjustments to reconcile net
    income to net cash from operating activities


29,513



92,222



10,230Net cash from operating activities


53,624



115,419



28,095Net cash from investing activities


(200,966
)


(335,345
)


(264,802
)Net cash from financing activities


145,434



217,190



195,833Net change in cash and cash
    equivalents


(1,908
)


(2,736
)


(40,874
)Cash and cash equivalents at
    beginning of year


37,545



40,281



81,155Cash and cash equivalents at end
    of year

$
35,637


$
37,545


$
40,281  33




---



##### Table of Contents



ApplicableActual Capital


Current Minimum Requirement


Excess of Actual Capital Over Current Requirement


Asset BaseAmount


Percent


Amount


Percent


Amount


Percent


Total(Dollars in thousands)Tangible capital

$
201,490



7.68
%

$
39,362



1.50
%

$
162,128



6.18
%

$
2,624,134Core capital


201,490



7.68



104,965



4.00



95,525



3.68



2,624,134Risk-based capital


248,445



11.70



169,879



8.00



78,566



3.70



2,123,486  34




---



##### Table of Contents



Item 8.
    Financial
    Statements and Supplementary Data  CONSOLIDATED
    STATEMENTS OF FINANCIAL CONDITION
  December 31,2006


2005(In thousands)ASSETSCash and deposits with banks

$
34,129


$
36,043Federal funds sold


1,508



1,502Total cash and cash equivalents


35,637



37,545Securities:Trading, at fair value


10,786



10,812Available for sale, at fair value


237,531



201,870Loans held for sale


26,960



29,109Loans, net of allowance for loan
    losses of $16,955 and $15,723


2,253,559



2,097,433Margin accounts






15,705Federal Home Loan Bank stock,
    at cost


25,432



24,006Premises and equipment, net


25,192



23,771Accrued interest receivable


13,703



12,053Real estate owned and other
    repossessed assets


3,242



2,514Goodwill


33,593



33,593Core deposit intangible


1,534



2,118Cash surrender value of life
    insurance


23,137



22,260Other assets


13,239



16,061Total assets

$
2,703,545


$
2,528,850LIABILITIES AND
    SHAREHOLDERS EQUITYLiabilitiesDeposits:Non-interest bearing

$
102,509


$
96,918Interest bearing


1,720,426



1,584,926Total deposits


1,822,935



1,681,844Borrowed funds:Federal Home Loan Bank
    advances


465,253



475,549Repurchase agreements and other


98,511



75,214Total borrowed funds


563,764



550,763Advance payments by borrowers for
    taxes and insurance


17,471



14,322Accrued interest payable


2,842



2,622Accrued expenses and other
    liabilities


15,200



14,564Total liabilities


2,422,212



2,264,115Commitments and contingent
    liabilities (Note 4 and Note 11)






Shareholders
    EquityPreferred stock-no par value;
    1,000,000 shares authorized and unissued






Common stock  no par
    value; 499,000,000 shares authorized;
    37,804,457 shares issued


145,834



143,896Retained earnings


220,527



207,120Accumulated other comprehensive
    income (loss)


(1,296
)


(1,845
)Unearned employee stock ownership
    plan shares


(11,287
)


(13,108
)Treasury stock, at cost,
    2006  6,827,143 shares and 2005 
    6,742,345 shares


(72,445
)


(71,328
)Total shareholders
    equity


281,333



264,735Total liabilities and
    shareholders equity

$
2,703,545


$
2,528,850    35




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF INCOME
  Year Ended December 31,2006


2005


2004(In thousands, except per share data)Interest incomeLoans

$
151,029


$
123,749


$
102,453Loans held for sale


1,894



1,651



1,449Securities:Trading


300



943



736Available for sale


9,408



7,227



7,022Margin accounts


1,069



1,219



802Federal Home Loan Bank stock
    dividends


1,426



1,164



919Other interest earning assets


304



99



60Total interest income


165,430



136,052



113,441Interest expenseDeposits


58,640



37,920



28,361Federal Home Loan Bank
    advances


21,246



17,364



11,254Repurchase agreements and other


4,542



2,012



763Total interest expense


84,428



57,296



40,378Net interest income


81,002



78,756



73,063Provision for loan losses


4,347



3,028



9,370Net interest income after
    provision for loan losses


76,655



75,728



63,693Non-interest incomeBrokerage commissions


19,882



18,508



17,189Service fees and other charges


12,546



12,471



11,780Underwriting and investment banking


814



876



1,029Net gains (losses):Securities available for sale






195



8Trading securities


56



268



(7
)Loans sold


2,943



2,250



3,192Other


(63
)


(22
)


(43
)Other income


4,096



3,714



2,961Total non-interest income


40,274



38,260



36,109Non-interest expenseSalaries and employee benefits


52,272



51,301



46,074Occupancy


4,450



4,115



3,757Equipment and data processing


8,998



9,067



9,086Franchise tax


2,091



1,894



1,583Advertising


1,567



1,570



1,853Amortization of core deposit
    intangible


584



769



900Other expenses


9,856



10,165



9,581Total non-interest expense


79,818



78,881



72,834Income before income
    taxes


37,111



35,107



26,968Income taxes


13,000



11,910



9,103Net income

$
24,111


$
23,197


$
17,865Earnings Per
    ShareBasic

$
0.83


$
0.81


$
0.61Diluted

$
0.82


$
0.80


$
0.60    36




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF SHAREHOLDERS EQUITY
  Accumulated


UnearnedOther


Employee StockShares


Common


Retained


Comprehensive


Ownership


TreasuryOutstanding


Stock


Earnings


Income (Loss)


Plan Shares


Stock


Total(In thousands, except per share data)Balance December 31,
    2003


34,086


$
139,526


$
185,495


$
1,124


$
(16,752
)

$
(29,557
)

$
279,836Comprehensive income:Net income










17,865















17,865Change in net unrealized gain
    (loss) on securities, net of taxes of $33














(61
)










(61
)Comprehensive income










17,865



(61
)










17,804Shares allocated to ESOP
    participants






1,682











1,822







3,504Purchase of treasury stock


(3,797
)


















(47,814
)


(47,814
)Exercise of stock options


913



1,129



(1,137
)










7,563



7,555Dividends paid, $0.30 per share










(8,533
)














(8,533
)Balance December 31,
    2004


31,202



142,337



193,690



1,063



(14,930
)


(69,808
)


252,352Comprehensive income:Net income










23,197















23,197Change in net unrealized gain
    (loss) on securities, net of taxes of $1,565














(2,908
)










(2,908
)Comprehensive income










23,197



(2,908
)










20,289Shares allocated to ESOP
    participants






1,432











1,822







3,254Purchase of treasury stock


(233
)


















(2,499
)


(2,499
)Exercise of stock options


93



127



(305
)










979



801Dividends paid, $0.33 per share










(9,462
)














(9,462
)Balance December 31,
    2005


31,062



143,896



207,120



(1,845
)


(13,108
)


(71,328
)


264,735Comprehensive income:Net income










24,111















24,111Change in net unrealized gain
    (loss) on securities, net of taxes of $367














681











681Comprehensive income










24,111



681











24,792Adjustment to initially apply
    SFAS 158, net of taxes of $72 (Note 15)














(132
)










(132
)Shares allocated to ESOP
    participants






1,797











1,821







3,618Purchase of treasury stock


(196
)


















(2,298
)


(2,298
)Exercise of stock options


111



141



(303
)










1,181



1,019Dividends paid, $0.36 per share










(10,401
)














(10,401
)Balance December 31,
    2006


30,977


$
145,834


$
220,527


$
(1,296
)

$
(11,287
)

$
(72,445
)

$
281,333    37




---



##### Table of Contents



CONSOLIDATED
    STATEMENTS OF CASH FLOWS
  Year Ended December 31,2006


2005


2004(In thousands)Cash Flows from Operating
    ActivitiesNet income

$
24,111


$
23,197


$
17,865Adjustments to reconcile net income
    to net cash provided by operating activities:Provision for loan losses


4,347



3,028



9,370Net gains on loans


(2,943
)


(2,250
)


(3,192
)Net gains on other assets






(173
)


35Amortization of premiums and
    accretion of discounts


3,105



2,139



4,608Depreciation and amortization


2,784



2,347



2,943Federal Home Loan Bank stock
    dividends


(1,426
)


(1,164
)


(919
)Increase in interest receivable


(1,650
)


(2,608
)


(1,002
)Increase in interest payable


220



1,533



119Decrease (increase) in prepaid and
    other assets


316



(4,273
)


(5,869
)Increase (decrease) in other
    liabilities


209



412



(3,133
)Decrease (increase) in trading
    securities


26



21,504



(16,716
)Decrease (increase) in margin
    accounts


15,705



(854
)


(463
)Net principal disbursed on loans
    held for sale


(219,924
)


(154,873
)


(155,664
)Proceeds from sale of loans held
    for sale


225,126



224,200



176,609ESOP compensation


3,618



3,254



3,504Net cash from operating activities


53,624



115,419



28,095Cash Flows from Investing
    ActivitiesProceeds from principal repayments
    and maturities of:Securities available for sale


44,766



51,100



76,282Proceeds from sale of:Securities available for sale






20,883



63,021Commercial loan participations






1,500



43,156Nonperforming loans


210



6,173



Premises and equipment


531



169



2Real estate owned and other
    repossessed assets


4,059



3,999



1,932Purchases of:Securities available for sale


(79,445
)


(80,301
)


(111,667
)Principal disbursed on loans, net
    of repayments


31,818



(46,836
)


(120,527
)Loans purchased


(198,229
)


(286,653
)


(213,802
)Purchases of premises and equipment


(4,676
)


(5,379
)


(3,199
)Net cash from investing activities


(200,966
)


(335,345
)


(264,802
)Cash Flows from Financing
    ActivitiesNet increase (decrease) in
    checking, savings and money market accounts


53,093



(82,940
)


17,174Net increase in certificates of
    deposit


88,012



241,883



82,219Net increase in advance payments by
    borrowers for taxes and insurance


3,149



2,274



1,327Proceeds from Federal Home
    Loan Bank advances


671,326



702,570



724,549Repayment of Federal Home
    Loan Bank advances


(681,622
)


(650,376
)


(599,771
)Net change in repurchase agreements
    and other


23,297



15,066



20,262Dividends paid


(10,401
)


(9,462
)


(8,533
)Proceeds from exercise of stock
    options


878



674



6,420Purchase of treasury stock


(2,298
)


(2,499
)


(47,814
)Net cash from financing activities


145,434



217,190



195,833Decrease in cash and cash
    equivalents


(1,908
)


(2,736
)


(40,874
)Cash and cash equivalents,
    beginning of year


37,545



40,281



81,155Cash and cash equivalents, end of
    year

$
35,637


$
37,545


$
40,281    38




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL STATEMENTS
  1.
    SUMMARY
    OF SIGNIFICANT ACCOUNTING POLICIES    Nature
    of Operations
  not-for-profit
  Basis
    of Presentation
    Use of
    Estimates in the Preparation of Financial
    Statements
    Securities
   39




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    other-than-temporary. other-than-temporary other-than-temporary
  Loans
    Held for Sale
    Loans
        Allowance
    for Loan Losses
       40




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  case-by-case loan-by-loan
  Servicing
    Assets
        Premises
    and Equipment
    Real
    Estate Owned and Other Repossessed Assets
   41




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   Goodwill
    and Core Deposit Intangible
      Cash
    Surrender Value of Life Insurance
    Long-term
    Assets
    Securitizations
    Loan Fees
    Commissions
    and Service Fees
    Stock
    Compensation
   42




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
        Accounting for Stock-Based Compensation
  2004(In thousands)Net income as reported

$
17,865Deduct: Stock-based compensation
    expense determined under fair value method


1,855Pro forma net income

$
16,010Basic earnings per share as
    reported


0.61Pro forma basic earnings per share


0.55Diluted earnings per share as
    reported


0.60Pro forma diluted earnings per
    share


0.54     2004Dividend yield


2.27
%Expected stock price volatility


22.73
%Risk-free interest rate


3.18
%Expected option life (in years)


7   Income
    Taxes
     43




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   Employee
    Stock Ownership Plan
    Earnings
    Per Share
    Statements
    of Cash Flows
    Loss
    Contingencies
    Fair
    Value of Financial Instruments
    Comprehensive
    Income
    Commission
    Revenue and Expense
    Off
    Balance Sheet Financial Instruments
    New
    Accounting Standards
  Share-based Payment.
 44




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   Employers
    Accounting for Defined Benefit Pension and Other Postretirement
    Plans  an amendment of FASB Statements No. 87,
    88, 106 and 132(R).
  Before





AfterApplication of





Application ofSFAS No. 158


Adjustments


SFAS No. 158Liability for postretirement
    benefits

$
3,811


$
204


$
4,015Deferred income taxes


1,645



71



1,716Total liabilities


2,422,008



204



2,422,212Accumulated other comprehensive
    income


1,164



132



1,296Total stockholders equity


281,201



132



281,333   Considering the Effects of Prior Year Misstatements when
    Quantifying Misstatements in Current Year Financial Statements
    (SAB 108)
  Newly
    Issued But Not Yet Effective Accounting Standards
       45




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    No. 06-04, No. 06-04.
  No. 06-5, Accounting for Purchases of Life Insurance 
    Determining the Amount That Could Be Realized in Accordance with
    FASB Technical
    Bulletin No. 85-4
    (Accounting for Purchases of Life Insurance).
  Operating
    Segments
    Dividend
    Restriction
    Reclassifications
    2.
    CASH AND
    CASH EQUIVALENTS  Rule 15c3-3
 46




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   3.
    SECURITIES    December 31, 2006


December 31, 2005Gross


Gross





Gross


GrossFair


Unrealized


Unrealized


Fair


Unrealized


UnrealizedValue


Gains


Losses


Value


Gains


Losses(In thousands)Available for SaleU.S. Treasury and government
    sponsored entities securities

$
96,847


$
63


$
(722
)

$
88,799


$



$
(1,493
)Tax exempt municipal obligation














3







Equity securities


7,866



641



(112
)


2,962



661



Mortgage-related securities


132,818



131



(1,870
)


110,106



73



(2,159
)Total

$
237,531


$
835


$
(2,704
)

$
201,870


$
734


$
(3,652
)     December 31, 2006Fair Value(In thousands)Due in one year or less

$
30,073Due after one year through five
    years


37,508Due after five years through ten
    years


29,266Mortgage-related securities


132,818Total

$
229,665       2006


2005


2004(In thousands)Proceeds

$



$
20,883


$
63,021Gross gains






239



1,425Gross losses






44



15Impairment charges










1,402    47




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
     2006


2005(In thousands)Debt Securities:Obligations of U.S. government

$
1,296


$
2,531State and municipal obligations


8,606



7,061Corporate bonds, debentures and
    notes


258



224Mutual funds


626



996Total trading securities

$
10,786


$
10,812     Less Than 12 Months


12 Months or More


TotalFair


Unrealized


Fair


Unrealized


Fair


UnrealizedValue


Loss


Value


Loss


Value


Loss(In thousands)Description of securities:U.S. Treasury and agencies

$
7,461


$
(44
)

$
65,621


$
(678
)

$
73,082


$
(722
)Equity securities


1,342



(112
)










1,342



(112
)Mortgage-related


15,205



(72
)


83,504



(1,798
)


98,709



(1,870
)Total temporarily impaired
    securities

$
24,008


$
(228
)

$
149,125


$
(2,476
)

$
173,133


$
(2,704
)     Less Than 12 Months


12 Months or More


TotalFair


Unrealized


Fair


Unrealized


Fair


UnrealizedValue


Loss


Value


Loss


Value


Loss(In thousands)Description of securities:U.S. Treasury and agencies

$
35,128


$
(499
)

$
53,671


$
(994
)

$
88,799


$
(1,493
)Mortgage-related


86,993



(1,383
)


19,887



(776
)


106,880



(2,159
)Total temporarily impaired
    securities

$
122,121


$
(1,882
)

$
73,558


$
(1,770
)

$
195,679


$
(3,652
)     other-than-temporary
 48




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   4.
    LOANS    December 31,2006


2005(In thousands)Real Estate:One- to four-family residential

$
854,829


$
749,362Multi-family residential


163,541



154,702Non-residential


348,528



314,124Land


26,684



14,979Construction:One- to four-family residential


388,926



389,558Multi-family and non-residential


25,215



66,788Total real estate


1,807,723



1,689,513Consumer


345,607



323,515Commercial


116,952



100,977Total loans


2,270,282



2,114,005Less:Allowance for loan losses


16,955



15,723Deferred loan fees, net


(232
)


849Total


16,723



16,572Loans, net

$
2,253,559


$
2,097,433   sixty-day case-by-case
  December 31,2006


2005Fixed Rate


Variable Rate


Fixed Rate


Variable Rate(In thousands)Commitments to make loans

$
49,317


$
47,412


$
40,290


$
56,322Undisbursed loans in process


18,729



204,981



36,059



228,054Unused lines of credit


59,740



102,727



29,896



112,632      49




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   tm
      Year Ended December 31,2006


2005


2004(In thousands)Balance, beginning of year

$
15,723


$
15,877


$
15,111Provision for loan losses


4,347



3,028



9,370Amounts charged off


(3,438
)


(4,085
)


(9,060
)Recoveries


323



903



456Balance, end of year

$
16,955


$
15,723


$
15,877     As of or For the Year Ended December 31,2006


2005


2004(In thousands)Impaired loans on which no
    specific valuation allowance was provided

$
28,329


$
13,119


$
7,898Impaired loans on which specific
    valuation allowance was provided


14,217



4,573



7,320Total impaired loans at year-end

$
42,546


$
17,692


$
15,218Specific valuation allowances on
    impaired loans at year-end


2,841



667



1,691Average impaired loans during year


23,617



15,209



10,683Interest income recognized on
    impaired loans during the year


372



386



134Interest income received on
    impaired loans during the year


373



403



307Interest income potential based on
    original contract terms of impaired loans


2,392



1,503



685   and/or
  (In thousands)Balance as of December 31,
    2005

$
2,028New loans to officers
    and/or
    directors


63Loan payments during 2006


(111
)Reductions due to changes in
    officers
    and/or
    directors


Balance as of December 31,
    2006

$
1,980  50




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  5.
    MORTGAGE
    BANKING ACTIVITIES      2006


2005


2004(In thousands)Balance, beginning of year

$
6,923


$
5,533


$
5,557Originations


1,917



2,961



1,629Sale of servicing


(323
)






Amortized to expense


(1,697
)


(1,571
)


(1,653
)Balance, end of year

$
6,820


$
6,923


$
5,533       2006


2005


2004(In thousands)Balance, beginning of year

$



$



$
(76
)Impairment charges


(435
)






Recoveries










76Balance, end of year

$
(435
)

$



$
     2006


2005Weighted average prepayment rate


261 PSA



278 PSAWeighted average life (in years)


4.50



5.11Weighted average discount rate


8
%


8
%     2007

$
1,5122008


1,5052009


1,4212010


1,0782011


747    51




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   6.
    PREMISES
    AND EQUIPMENT    December 31,Estimated life

2006


2005(In thousands)Land



$
7,691


$
7,498Buildings

up to 40 years


21,068



19,536Leasehold improvements

10 years


1,511



1,461Furniture and equipment

3-5 years


20,078



17,89150,348



46,386Less: Accumulated depreciation and
    amortization




25,156



22,615Total



$
25,192


$
23,771     (In thousands)2007

$
1,5392008


1,4092009


1,2592010


1,1862011


970Thereafter


629Total

$
6,992  52




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  7.
    GOODWILL
    AND INTANGIBLE ASSETS  Goodwill
    Acquired
    Intangible Assets
  As of December 31,2006


2005Gross





GrossCarrying


Accumulated


Carrying


AccumulatedAmount


Amortization


Amount


Amortization(In thousands)Amortized intangible assets:Core deposit intangibles

$
8,952


$
7,418


$
8,952


$
6,834Total

$
8,952


$
7,418


$
8,952


$
6,834Estimated amortization expense:For the year ended:December 31, 2007

$
365December 31, 2008


285December 31, 2009


223December 31, 2010


176December 31, 2011


139     8. DEPOSITS
    December 31,2006


2005(In thousands)Checking accounts:Interest bearing

$
94,577


$
114,565Non-interest bearing


102,509



96,918Savings accounts


195,331



259,811Money market accounts


276,403



144,433Certificates of deposit


1,154,115



1,066,117Total deposits

$
1,822,935


$
1,681,844  53




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    Year Ended December 31,2006


2005


2004(In thousands)Interest bearing demand deposits
    and money market accounts

$
10,060


$
3,231


$
2,386Savings accounts


900



1,201



1,361Certificates of deposit


47,680



33,488



24,614Total

$
58,640


$
37,920


$
28,361     December 31, 2006(In thousands)Within 12 months

$
886,20612 months to 24 months


110,891Over 24 months to
    36 months


44,278Over 36 months to
    48 months


67,499Over 48 months


45,241Total

$
1,154,115     December 31, 2006


December 31, 2005(In thousands)Three months or less

$
50,510


$
35,900Over three months to six months


67,618



34,033Over six months to twelve months


90,141



40,200Over twelve months


67,600



102,550Total

$
275,869


$
212,683     9.
    FEDERAL
    HOME LOAN BANK ADVANCES    December 31,2006


2005Weighted





WeightedYear of Maturity

Amount


Average Rate


Amount


Average Rate(In thousands)2006


n/a



n/a


$
360,752



4.21
%2007

$
391,957



4.98
%


66,501



3.802008


22,451



3.69



22,451



3.692009


30,913



4.66



10,913



3.562010


2,387



3.54



2,387



3.542011


5,871



4.93



871



3.86Thereafter


11,674



3.86



11,674



3.86Total Federal Home Loan Bank
    advances

$
465,253






$
475,549  54




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    10.
    SECURITIES
    SOLD UNDER AGREEMENT TO REPURCHASE AND OTHER
    BORROWINGS    December 31,2006


2005Weighted





WeightedAverage





AverageAmount


Rate


Amount


Rate(In thousands)Securities sold under agreement to
    repurchase-term

$
78,182



4.00
%

$
45,520



3.73
%Other borrowings


20,329



6.54



29,694



3.20Total repurchase agreements and
    other

$
98,511



4.52
%

$
75,214



3.52
%     11.
    LOSS
    CONTINGENCY    12.
    INCOME
    TAXES    Year Ended December 31,2006


2005


2004(In thousands)Current

$
13,132


$
12,396


$
9,914Deferred


(132
)


(486
)


(811
)Total

$
13,000


$
11,910


$
9,103  55




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    Year Ended December 31,2006


2005


2004Dollars


Rate


Dollars


Rate


Dollars


Rate(In thousands)Tax at statutory rate

$
12,989



35.0
%

$
12,287



35.0
%

$
9,439



35.0
%Increase (decrease) due to:Tax exempt income


(88
)


(0.2
)


(78
)


(0.2
)


(78
)


(0.3
)Life insurance


(298
)


(0.8
)


(288
)


(0.8
)


(308
)


(1.1
)State taxes


(143
)


(0.4
)


(4
)


(0.0
)


(27
)


(0.1
)Other


540



1.4



(7
)


(0.0
)


77



0.3Income tax provision

$
13,000



35.0
%

$
11,910



34.0
%

$
9,103



33.8
%     December 31,2006


2005(In thousands)Deferred tax assets:Loan loss reserves

$
5,934


$
5,503Postretirement benefits


1,334



1,428Deferred loan fees






363ESOP shares released


1,311



1,308Compensation accruals


196



348Unrealized loss on securities
    available for sale


626



993SFAS 158 pension accrual


71



Interest on non-accrual loans


1,795



883Other


225



716Deferred tax assets


11,492



11,542Deferred tax liabilities:Purchase accounting adjustments


385



622Deferred loan fees


113



Federal Home Loan Bank stock
    dividends


6,354



5,855Mortgage servicing rights


2,235



2,423Other


689



762Deferred tax liabilities


9,776



9,662Net deferred tax asset

$
1,716


$
1,880    56




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   13.
    SHAREHOLDERS
    EQUITY  Dividends
      Other
    Comprehensive Income
    Liquidation
    Account
    14.
    REGULATORY
    CAPITAL REQUIREMENTS      57




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  As of December 31, 2006MinimumCapitalActual


Requirements


To Be Well Capitalized Under Prompt Corrective Action
    ProvisionsAmount


Ratio


Amount


Ratio


Amount


Ratio(In thousands)Total capital (to risk-weighted
    assets)

$
248,445



11.70
%

$
169,879



8.00
%

$
212,349



10.00
%Tier 1 capital (to
    risk-weighted assets)


201,490



9.49



*



*



127,409



6.00Leverage
    (Tier 1) capital (to adjusted total assets)


201,490



7.68



104,196



4.00



131,207



5.00Tangible capital (to adjusted
    total assets)


201,490



7.68



39,362



1.50



*



*   As of December 31, 2005Minimum CapitalActual


Requirements


To Be Well Capitalized Under Prompt Corrective Action
    ProvisionsAmount


Ratio


Amount


Ratio


Amount


Ratio(In thousands)Total capital (to risk-weighted
    assets)

$
218,943



10.86
%

$
161,351



8.00
%

$
201,688



10.00
%Tier 1 capital (to
    risk-weighted assets)


203,220



10.08



*



*



121,013



6.00Leverage
    (Tier 1) capital (to adjusted total assets)


203,220



8.36



97,196



4.00



121,495



5.00Tangible capital (to adjusted
    total assets)


203,220



8.36



36,449



1.50



*



*     *
    
    Ratio is not required under regulations.          15.
    BENEFIT
    PLANS  Postretirement
    Benefit Plans
   58




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    Year Ended December 31,2006


2005(In thousands)Change in Benefit
    Obligation:Benefit obligation at beginning of
    year

$
4,158


$
3,742Service cost


2



1Interest cost


221



215Actuarial (gain)/loss


(89
)


471Benefits paid


(277
)


(271
)Benefit obligation at end of the
    year

$
4,015


$
4,158Funded status of the plan

$
(4,015
)

$
(4,158
)Unrecognized net (gain)/loss from
    past experience different from that assumed and effects of
    changes in assumptions






297Prior service cost not yet
    recognized in net periodic benefit cost






(5
)Accrued benefit cost

$
(4,015
)

$
(3,866
)     (In thousands)Prepaid benefit cost

$
Accrued benefit cost


3,866Intangible assets


Accumulated other comprehensive
    income


$
3,866     (In thousands)Net gains (losses)

$
(135
)Prior service credit (cost)


3$
(132
)  59




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    Year Ended December 31,2006


2005


2004(In thousands)Service cost

$
2


$
1


$
9Interest cost


221



215



245Expected return on plan assets










Net amortization of prior service
    cost


(1
)






(1
)Recognized net actuarial gain










Net periodic benefit cost/(gain)

$
222


$
216


$
253Assumptions used in the valuations
    were as follows:Weighted average discount rate


5.75
%


5.50
%


5.75
%     1 Percentage


1 PercentagePoint Increase


Point Decrease(In thousands)Effect on total of service and
    interest cost components

$
22


$
(19
)Effect on the postretirement
    benefit obligation


402



(352
)     In thousands2007

$
2912008


3012009


3142010


3242011


3292012-2016


1,686Total

$
3,245   401(k)
    Savings Plan
     60




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
    Employee
    Stock Ownership Plan
      Retention
    Plan
      Long-Term
    Incentive Plan
   61




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
      For the Year Ended December 31, 2006Weighted Average


Aggregate IntrinsicShares


Exercise Price


Value(In thousands)Outstanding at beginning of year


2,217,216


$
9.59Granted






Exercised


(111,502
)


7.80Forfeited


(37,156
)


12.73Outstanding at end of period


2,068,558


$
9.63


$
5,408Options exercisable at end of
    period


2,068,558


$
9.63


$
5,408     2006


2005


2004Intrinsic value of options
    exercised

$
512


$
381


$
4,745Cash received from option exercises


878



674



6,420Tax benefit realized from option
    exercises


141



127



1,129Weighted average fair value of
    options granted









$
3.13     Employee
    Stock Purchase Plan
    Deferred
    Compensation Plan
   62




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
   16.
    FAIR
    VALUE OF FINANCIAL INSTRUMENTS  and/or
  Cash and cash equivalents, margin accounts, accrued interest
    receivable and payable and advance payments by borrowers for
    taxes and insurance
  Securities
  Loans held for sale
  Loans
  Federal Home Loan Bank stock
  Deposits
  Borrowed funds
  Limitations
      63




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##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  December 31,


December 31,2006


2005Carrying


Fair


Carrying


FairValue


Value


Value


Value(In thousands)Assets:Cash and cash equivalents

$
35,637


$
35,637


$
37,545


$
37,545Securities:Trading


10,786



10,786



10,812



10,812Available for sale


237,531



237,531



201,870



201,870Loans held for sale


26,960



27,288



29,109



29,403Loans, net


2,253,559



2,256,796



2,097,433



2,100,474Margin accounts










15,705



15,705Federal Home Loan Bank stock


25,432



25,432



24,006



24,006Accrued interest receivable


13,703



13,703



12,053



12,053Liabilities:Deposits:Checking, savings and money market
    accounts


(668,820
)


(668,820
)


(615,726
)


(615,726
)Certificates of deposit


(1,154,115
)


(1,151,666
)


(1,066,117
)


(1,061,686Federal Home Loan Bank
    advances


(465,253
)


(462,302
)


(475,549
)


(472,012
)Repurchase agreements and other


(98,511
)


(98,550
)


(75,214
)


(75,263
)Advance payments by borrowers for
    taxes and insurance


(17,471
)


(17,471
)


(14,322
)


(14,322
)Accrued interest payable


(2,842
)


(2,842
)


(2,622
)


(2,622
)   17.
    STATEMENT
    OF CASH FLOWS SUPPLEMENTAL DISCLOSURE    Year Ended December 31,2006


2005


2004(In thousands)Supplemental disclosures of cash
    flow information:Cash paid during the year for:Interest on deposits and
    borrowings, net of amounts capitalized

$
84,208


$
55,764


$
40,259Interest capitalized on borrowings


19



42



19Income taxes


13,050



9,615



12,938Supplemental schedule of noncash
    activities:Loans transferred to held for sale






74,144



39,479Loans transferred from held for
    sale






37,075



Transfers from loans to real
    estate owned


4,814



4,935



2,356  64




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##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  18.
    PARENT
    COMPANY FINANCIAL STATEMENTS  Condensed
    Statements of Financial Condition
  December 31,2006


2005(In thousands)AssetsCash and deposits with banks

$
811


$
479Federal funds sold and other


27



21Total cash and cash equivalents


838



500Securities:Trading


559



992Available for sale


2,866



2,962Note receivable for ESOP


15,033



16,847Subordinated note receivable from
    Home Savings


30,000



Investment in subsidiary-Home
    Savings


235,058



236,621Investment in subsidiary-Butler
    Wick


16,448



15,174Other assets


149



158Total assets

$
300,951


$
273,254Liabilities and
    Shareholders EquityRepurchase agreements and other

$
18,300


$
6,600Accrued interest payable


101



51Accrued expenses and other
    liabilities


1,217



1,868Total liabilities


19,618



8,519Total shareholders
    equity


281,333



264,735Total liabilities and
    shareholders equity

$
300,951


$
273,254   Condensed
    Statements of Income
  Year Ended December 31,2006


2005


2004(In thousands)IncomeCash dividends from subsidiary

$
30,000


$
7,000


$
Interest income


1,411



1,530



1,680Non-interest income


60



166



1,086Total income


31,471



8,696



2,766ExpensesInterest expense


820



406



14Non-interest expenses


1,405



1,395



1,339Total expenses


2,225



1,801



1,353Income before income taxes


29,246



6,895



1,413Income tax (benefit) expense


(425
)


(49
)


558Income before equity in
    undistributed net earnings of subsidiaries


29,671



6,944



855Equity in undistributed net
    earnings of subsidiaries


(5,560
)


16,253



17,010Net income

$
24,111


$
23,197


$
17,865  65




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  Condensed
    Statements of Cash Flows
  Year Ended December 31,2006


2005


2004(In thousands)Cash Flows from Operating
    ActivitiesNet Income

$
24,111


$
23,197


$
17,865Adjustments to reconcile net
    income to net cash provided by operating activities:Equity in undistributed earnings
    of the subsidiaries


5,560



(16,253
)


(17,010
)Security gains






(62
)


(948
)Decrease in trading securities


433



998



2,081(Increase) decrease in interest
    receivable


(18
)






1Decrease (increase) in other assets


27



1,128



(751
)Increase in accrued interest
    payable


50



47



3Decrease in other liabilities


(712
)


(1,948
)


(1,228
)Net cash from operating activities


29,451



7,107



13Cash Flows from Investing
    ActivitiesProceeds from sale of:Securities available for sale






99



2,322Purchases of:Securities available for sale


(36
)


(227
)


(105
)Investment in subordinated debt
    issued by Home Savings


(30,000
)






ESOP loan repayment


1,044



875



735Net cash from investing activities


(28,992
)


747



2,952Cash Flows from Financing
    ActivitiesDividends paid


(10,401
)


(9,462
)


(8,533
)Net increase in borrowed funds


11,700



3,100



3,500Purchase of treasury stock


(2,298
)


(2,499
)


(47,814
)Exercise of stock options


878



674



6,420Net cash from financing activities


(121
)


(8,187
)


(46,427
)Increase (decrease) in cash and
    cash equivalents


338



(333
)


(43,462
)Cash and cash equivalents,
    beginning of year


500



833



44,295Cash and cash equivalents, end of
    year

$
838


$
500


$
833  66




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##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  19.
    SEGMENT
    INFORMATION    Banking


InvestmentServices


Services


Eliminations


Total(In thousands)2006Results of OperationsTotal interest income

$
163,763


$
1,667






$
165,430Total interest expense


83,953



475







84,428Provision for loan losses


4,347











4,347Net interest income after
    provision for loan losses


75,463



1,192







76,655Non-interest income


13,203



27,071







40,274Non-interest expense


53,310



26,508







79,818Income before income taxes


35,356



1,755







37,111Income taxes


12,393



607







13,000Net income

$
22,963


$
1,148






$
24,111Selected Financial
    InformationTotal assets

$
2,682,641


$
20,923


$
(19
)

$
2,703,545Capital expenditures


4,086



335







4,421Depreciation and amortization


2,503



281







2,7842005Results of OperationsTotal interest income

$
133,794


$
2,258






$
136,052Total interest expense


56,357



939







57,296Provision for loan losses


3,028











3,028Net interest income after
    provision for loan losses


74,409



1,319







75,728Non-interest income


12,184



26,076







38,260Non-interest expense


53,413



25,468







78,881Income before income taxes


33,180



1,927







35,107Income taxes


11,234



676







11,910Net income

$
21,946


$
1,251






$
23,197Selected Financial
    InformationTotal assets

$
2,488,771


$
40,122


$
(43
)

$
2,528,850Capital expenditures


5,029



320







5,349Depreciation and amortization


2,026



321







2,347 67




---



##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  Banking


InvestmentServices


Services


Eliminations


Total(In thousands)2004Results of OperationsTotal interest income

$
111,822


$
1,619






$
113,441Total interest expense


39,971



407







40,378Provision for loan losses


9,370











9,370Net interest income after
    provision for loan losses


62,481



1,212







63,693Non-interest income


11,629



24,480







36,109Non-interest expense


48,348



24,486







72,834Income (loss) before income taxes


25,762



1,206







26,968Income taxes


8,698



405







9,103Net income (loss)

$
17,064


$
801






$
17,865Selected Financial
    InformationTotal assets

$
2,229,705


$
58,089


$
(6
)

$
2,287,788Capital expenditures


2,928



271







3,199Depreciation and amortization


2,579



364







2,943   20.
    EARNINGS
    PER SHARE    2006


2005


2004(In thousands, except per share data)Basic Earnings Per
    Share:Net income applicable to common
    stock

$
24,111


$
23,197


$
17,865Weighted average common shares
    outstanding


29,029



28,809



29,185Basic earnings per share

$
0.83


$
0.81


$
0.61Diluted Earnings Per
    Share:Net income applicable to common
    stock

$
24,111


$
23,197


$
17,865Weighted average common shares
    outstanding


29,029



28,809



29,185Dilutive effect of stock options


375



330



420Weighted average common shares
    outstanding for dilutive computation


29,404



29,139



29,605Diluted earnings per share

$
0.82


$
0.80


$
0.60  68




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##### Table of Contents



NOTES TO
    CONSOLIDATED FINANCIAL
    STATEMENTS (Continued)
  21.
    QUARTERLY
    FINANCIAL INFORMATION (UNAUDITED)    First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter


Total(Unaudited)(In thousands, except per share data)2006:Total interest income

$
38,627


$
41,647


$
42,464


$
42,692


$
165,430Total interest expense


17,936



20,611



22,492



23,389



84,428Net interest income


20,691



21,036



19,972



19,303



81,002Provision for loan losses


738



812



1,475



1,322



4,347Non-interest income


9,809



9,533



10,199



10,733



40,274Non-interest expense


20,356



20,126



19,365



19,971



79,818Income taxes


3,273



3,381



3,272



3,074



13,000Net income

$
6,133


$
6,250


$
6,059


$
5,669


$
24,111Earnings per share:Basic

$
0.21


$
0.22


$
0.21


$
0.19


$
0.83Diluted


0.21



0.21



0.21



0.19



0.82     First


Second


Third


FourthQuarter


Quarter


Quarter


Quarter


Total(In thousands, except per share data)2005:Total interest income

$
30,763


$
32,853


$
35,106


$
37,330


$
136,052Total interest expense


12,011



13,518



15,044



16,723



57,296Net interest income


18,752



19,335



20,062



20,607



78,756Provision for loan losses


633



418



702



1,275



3,028Non-interest income


8,868



10,297



9,772



9,323



38,260Non-interest expense


19,657



19,399



19,437



20,388



78,881Income taxes


2,449



3,317



3,304



2,840



11,910Net income

$
4,881


$
6,498


$
6,391


$
5,427


$
23,197Earnings per share:Basic

$
0.17


$
0.23


$
0.22


$
0.19


$
0.81Diluted


0.17



0.22



0.22



0.19



0.80    69




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
 FINANCIAL STATEMENTS
              /s/  Crowe
    Chizek and Company LLC
      70




---



##### Table of Contents



MANAGEMENTS
    REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
  Rules 13a-15(f) 15d-15(f)
    Report of
    Independent Registered Public Accounting Firm on Internal
    Control Over Financial Reporting.
  /s/  Douglas
    M.
    McKay

/s/  Patrick
    A.
    KellyDouglas M. McKay, Chief Executive
    Officer

Patrick A. Kelly,  Chief Financial
    OfficerMarch 9, 2007

March 9, 2007  71




---



##### Table of Contents



REPORT OF
    INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON
 INTERNAL CONTROL OVER FINANCIAL REPORTING
              /s/  Crowe
    Chizek and Company LLC
      72




---



##### Table of Contents



Item 9.
    Changes
    in and Disagreements with Accountants on Accounting and
    Financial Disclosure    Item 9A.
    Controls
    and Procedures  Rules 13a-15(e) 15d-15(e) Form 10-K
  Item 9B.
    Other
    Information   PART III  Item 10.
    Directors
    and Executive Officers and Corporate Governance      Item 11.
    Executive
    Compensation    Item 12.
    Security
    Ownership of Certain Beneficial Owners and Management and
    Related Shareholder Matters     73




---



##### Table of Contents



Equity
    Compensation Plan Information
  (a)


(b)


(c)Number of SecuritiesRemaining Available forFuture Issuance UnderNumber of Securities





Equity Compensationto be Issued Upon


Weighted-Average


Plans (ExcludingExercise of


Exercise Price of


SecuritiesPlan Category

Outstanding Options


Outstanding Options


Reflected in Column (a))Equity compensation plans approved
    by security holders


2,068,558


$
9.63



37,156   Item 13.
    Certain
    Relationships and Related Transactions and Director
    Independence    Item 14.
    Principal
    Accountant Fees and Services   PART IV  Item 15.
    Exhibits
    and Financial Statement Schedules  (c)
    Exhibits  3.1

Articles of Incorporation3.2

Amended Code of Regulations10

Material Contracts11

Statement Regarding Computation of
    Per Share Earnings20

Proxy Statement for 2007 Annual
    Meeting of Shareholders21

Subsidiaries of Registrant23

Crowe Chizek and Company LLC
    Consent31.1

Section 302 Certification by
    Chief Executive Officer31.2

Section 302 Certification by
    Chief Financial Officer32

Certification of Financial
    Statements by Chief Executive Officer and Chief Financial
    Officer   Financial Statement Schedules.
 74




---



##### Table of Contents



SIGNATURES    UNITED COMMUNITY FINANCIAL CORP.
  /s/  Douglas
    M. McKay       /s/  Douglas
    M.
    McKay

/s/  Patrick
    A.
    KellyDouglas M. McKay, President and
    Director

Patrick A. Kelly, Treasurer
    (Principal Financial Officer)Date: March 15, 2007

Date:  March 15, 2007/s/  Richard
    J.
    Schiraldi

/s/  David
    C.
    SweetRichard J. Schiraldi, Director

David C. Sweet, DirectorDate: March 15, 2007

Date:  March 15, 2007/s/  Thomas
    J.
    Cavalier

/s/  David
    G.
    LodgeThomas J. Cavalier, Director

David G. Lodge, DirectorDate: March 15, 2007

Date:  March 15, 2007/s/  Eugenia
    C.
    Atkinson

/s/  Clarence
    R.
    SmithEugenia C. Atkinson, Director

Clarence R. Smith, DirectorDate: March 15, 2007

Date:  March 15, 2007  75




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##### Table of Contents



INDEX TO
    EXHIBITS  ExhibitNumber3.1

Articles of Incorporation

Incorporated by reference to the
    Registration Statement on Form S-1 filed by United Community on
    March 13, 1998 (S-1) with the Securities and Exchange Commission
    (SEC), Exhibit 3.13.2

Amended Code of Regulations

Incorporated by reference to the
    1998 10-K filed by United Community on March 31, 1999 via Edgar,
    film number 99582343, Exhibit 3.210.1

The Home Savings and Loan Company
    of Youngstown, Ohio Employee Stock Ownership Plan

Incorporated by reference to the
    2001 10-K filed by United Community on March 29, 2002 via Edgar,
    film number 02593161, Exhibit 10.110.2

Employment Agreement between The
    Home Savings and Loan Company of Youngstown, Ohio and Douglas M.
    McKay, dated December 31, 2004.

Incorporated by reference to the
    2004 10-K/A filed by United Community on May 2, 2005 via Edgar,
    film number 04666159 (2004 10K/A), Exhibit 10.210.3

Employment Agreement between The
    Home Savings and Loan Company of Youngstown, Ohio and Patrick W.
    Bevack, dated December 31, 2004.

Incorporated by reference to the
    2004 10-K/A, Exhibit 10.310.4

Employment Agreement between The
    Home Savings and Loan Company of Youngstown, Ohio and Patrick A.
    Kelly, dated December 31, 2004.

Incorporated by reference to the
    2004 10-K/A, Exhibit 10.410.5

Employment Agreement between
    Butler Wick Corp. and Thomas J. Cavalier, dated August 12,
    1999.

Incorporated by reference to the
    1999 10-K filed by United Community on March 29, 2000 via Edgar,
    film number 582478, Exhibit 10.510.6

Employment Agreement between The
    Home Savings and Loan Company of Youngstown, Ohio and David G.
    Lodge, dated December 31, 2004.

Incorporated by reference to the
    2004 10-K/A, Exhibit 10.610.7

United Community 1999 Long -Term
    Incentive Plan

Incorporated by reference to the
    Proxy Statement filed by United Community via Edgar on June 7,
    1999, file number 9964170 (1999 Proxy), Exhibit10.8

United Community Recognition and
    Retention Plan and Trust Agreement

Incorporated by reference to the
    1999 Proxy, Exhibit B11

Statement Regarding Computation of
    Per Share Earnings

Incorporated by reference to Note
    20 to the Financial Statements included in the Annual Report,
    Item 8.20

Proxy Statement for 2007 Annual
    Meeting of Shareholders

Incorporated by reference to the
    Proxy Statement, to be filed with the Securities and Exchange
    Commission on or about March 23, 2007.21

Subsidiaries of Registrant23

Crowe Chizek and Company LLC
    Consent31.1

Section 302 Certification by
    Chief Executive Officer31.2

Section 302 Certification by
    Chief Financial Officer32

Certification of Financial
    Statements by Chief Executive Officer and Chief Financial
    Officer  76