EX-10.1



 Exhibit 10.1 

UNITED COMMUNITY FINANCIAL CORP. & 

THE HOME SAVINGS AND LOAN COMPANY OF YOUNGSTOWN, OHIO 

AMENDED AND RESTATED EXECUTIVE INCENTIVE PLAN 

Adopted September 23, 2014 

The United Community Financial Corp.’s (the “Company”) Executive Incentive Plan (“EIP”) provides an annual incentive
compensation opportunity to certain executive officers, which at the time of adoption of the EIP included Gary M. Small, President and CEO of the Company and the Company’s wholly-owned subsidiary, The Home Savings and Loan Company of
Youngstown, Ohio (“Home Savings”), Jude J. Nohra, General Counsel and Secretary of the Company and Executive Vice President, Corporate Governance, General Counsel, and Secretary of Home Savings, Matthew T. Garrity, Executive Vice
President, Credit Administration and Commercial Lending of Home Savings and Timothy W. Esson, Principal Accounting Officer and Treasurer of the Company and Senior Vice President, Chief Financial Officer and Treasurer of Home Savings. This EIP shall
be deemed amended in the event any such officers are changed or in the event the Company adds an executive officer to the EIP. Executive incentive award payouts are based upon the actual performance of the Company for a given year by comparing the
12 months ended December 31 to the actual performance of the peer group (see below) during the same 12 month period, or by comparing actual performance results for the fiscal year to annual budget goals See the “Weightings”
table below. 
 Target Award Opportunities and Form of Payout: 

Each participant has a target EIP opportunity, defined as a percentage of base salary as follows: 50% of base salary for Mr. Small, and
40% for Messrs. Esson, Garrity and Nohra. Following the end of the calendar year, the Compensation Committee will certify performance results relative to goals and determine the earned EIP award. Eighty percent (80%) of the earned EIP
award will be paid in cash as soon as practicable, and the remaining twenty percent (20%) will be paid in restricted shares. The restricted stock 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. 
 Peer Group: 

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: 
  

			
	BankFinancial Corp (BFIN)	  	Horizon Bancorp. (HBNC)
	ESB Financial Corporation (ESBF)	  	Lakeland Financial Corporation (LKFN)
	Farmers National Banc Corp (FMNB)	  	LCNB Bancorp Inc. (LCNB)
	Farmers & Merchants Bancorp (FMAO)	  	LNB Bancorp Inc. (LNBB)
	First Busey (BUSE)	  	MainSource Financial Group, Inc. (MSFG)
	First Defiance Financial Corp. (FDEF)	  	Mutualfirst Financial Inc. (MFSF)
	First Financial Corporation (THFF)	  	Peoples Bancorp Inc. (PEBO)
	First Mid-Illinois Bancshares (FMBH)	  	QCR Holdings, Inc. (QCRH)
	German American Bancorp Inc. (GABC)	  	TriState Capital Holdings Inc. (TSC)

 Net Income Trigger: 

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 the
fiscal year, calculated in accordance with GAAP, but adjusted to exclude the effect of extraordinary items. If this trigger is met, incentive awards will be calculated as described below. 







 Performance Measures, Weightings, Goals, and Payout Calibration: 

The Compensation Committee has identified six financial performance measures that are aligned with the Company’s goals. Each of the six
performance measures has a weighting ranging from 10% to 30%. The Company’s results on four of the six measures will be evaluated relative to the peer group. The other measures (Net Income and Net Loan Growth) will be evaluated relative to the
Board-approved annual budget. 
 The Performance-Payout Table below describes the six performance measures, their respective weighting, how
performance on each measure will be evaluated (relative to peers or relative to budget) and the goals for threshold performance, target performance and superior performance. Achievement of the target performance goal will result in 100% of target
payout for the respective measure, while achievement of the superior performance goal will result in 200% of the target payout for the measure. Performance in between threshold and target, or between target and superior, will be interpolated. 

Performance-Payout Table: 
  

													
	 	  	 	 	 	Evaluated	  	 Performance Goals

	 Performance Measure
	  	Weight	 	 	Vs.	  	 Threshold
	  	 Target
	  	 Superior

	 Core ROAA
	  	 	30	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
	 Net Income ($MM)
	  	 	30	% 	 	Budget	  	75% of Budget	  	100% of Budget	  	125% of Budget
	 Net Loan Growth ($MM)
	  	 	10	% 	 	Budget	  	75% of Budget	  	100% of Budget	  	125% of Budget
	 Core Deposit Growth
	  	 	10	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
	 Efficiency Ratio
	  	 	10	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
	 Non-Performing Assets
	  	 	10	% 	 	Peers	  	25th %ile	  	50th %ile	  	75th %ile
	 Payout for Performance Level (% of Target
Opportunity)1:
	  	0%	  	100%	  	200%

  

	1 	Note that payouts will be interpolated for performance between discrete points. For example, performance at the 65th percentile of the Peer Group will result in a
payout of 160% of target; performance at the 30th percentile of peers will result in a payout of 20% of target. 


Definitions: 
  

	 	•	 	%ile: Percentile Rank within defined Peer Group 

  

	 	•	 	“Core” ROAA: GAAP performance excluding extraordinary items 

  

	 	•	 	Net Income: GAAP Net Income excluding extraordinary items 

  

	 	•	 	Net Loan Growth: Net loan growth projected in the budget compared to actual net loan growth from January 1 – December 31 


 

	 	•	 	Core Deposit Growth: Total Deposits less time deposits 

  

	 	•	 	Efficiency Ratio: Operating Expense divided by Operating Revenue 

  

	 	•	 	Non-Performing Assets: Total NPAs divided by Average Total Assets 

 The Committee maintains
flexibility and discretion to adjust measure definitions, if such adjustments ensure a better comparison relative to the peer group and most appropriately reflect the goals of the EIP and the Company’s compensation philosophy. 







 Example EIP calculation: 

For example, assume a participant has a base salary of $225,000 and a target EIP opportunity of 40% of salary, or $90,000. Further assume the
performance results in the table below. The calculated earned EIP award for this participant would be $95,400. 
  

																	
	 	  	 	 	 	Assumed	 	 	Implied	 	 	Weighted	 
	 Performance Measure
	  	Weight	 	 	Performance	 	 	Payout	 	 	Payout	 
	 Core ROAA
	  	 	30	% 	 	 	40th	  	 	 	60	% 	 	 	18.0	% 
	 Net Income ($MM)
	  	 	30	% 	 	 	90	% 	 	 	60	% 	 	 	18.0	% 
	 Net Loan Growth ($MM)
	  	 	10	% 	 	 	110	% 	 	 	140	% 	 	 	14.0	% 
	 Core Deposit Growth
	  	 	10	% 	 	 	70th	  	 	 	180	% 	 	 	18.0	% 
	 Efficiency Ratio
	  	 	10	% 	 	 	70th	  	 	 	180	% 	 	 	18.0	% 
	 Non-Performing Assets
	  	 	10	% 	 	 	80th	  	 	 	200	% 	 	 	20.0	% 
		  				 				 	 	Total Payout =	  	 	 	106.0	% 
		  				 				 	 	Target EIP =	  	 	$	90,000	  
		  				 				 				 	  
	  
	 
		  				 				 	 	Earned EIP =	  	 	$	95,400	  
		  				 				 				 	  
	  
	 
		  				 	 	80% paid in cash =	  	 	$	76,320	  
		  				 	 	20% paid in stock =	  	 	$	19,080	  

 Other Administrative Guidelines: 

The Plan provides that a participant in the Plan must be employed with the Company on the date the award is made (and when the equity portion
of the Award vests); otherwise, the participant is not entitled to any award or the unvested equity award. 
 The Board maintains discretion
to amend, modify, terminate or otherwise adjust the Plan as necessary.