Document:

Exhibit 10.2

Exhibit 10.2

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 
	In the Matter of

	 	 	)	 	 	Order No.: CN 10-34
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	UNITED COMMUNITY FINANCIAL

	 	 	)	 	 	Effective Date: November 5, 2010
	CORP

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Youngstown, Ohio

	 	 	)	 	 	 
	OTS Docket No. H3075

	 	 	)	 	 	 
	 

	 	 	)	 	 	 

AMENDED ORDER TO CEASE AND DESIST

WHEREAS, United Community Financial Corp, Youngstown, Ohio, OTS Docket No. H3075
(Holding Company), by and through its Board of Directors (Board), has executed a
Stipulation and Consent to Issuance of Amended Order to Cease and Desist (Stipulation); and

WHEREAS, the Holding Company, by executing the Stipulation, has consented and agreed to the
issuance of this Amended Order to Cease and Desist (Amended Order) by the Office of Thrift
Supervision (OTS) pursuant to 12 U.S.C. § 18l8(b); and

WHEREAS, pursuant to delegated
authority, the OTS Regional Director for the Central Region (Regional Director) is
authorized to amend issued orders to cease and desist where a savings and loan holding
company has consented to the amendment of an issued order.

NOW, THEREFORE, IT IS ORDERED that:

United Community Financial Corp

Amended Order to Cease and Desist

Page 1 of  4

 

 

 

Cease and Desist.

1. The Holding Company and its directors, officers, employees, and agents shall cease and
desist from all unsafe or unsound practices addressed in the OTS Report of Examination dated
February 25, 2008, which led to the issuance of an order to cease and desist against the Holding
Company by the OTS on August 12, 2008 (2008 Order).

Amendment of Existing Order.

2. This Amended Order amends the 2008 Order (OTS Order No. CN 08-09), which remains in full
force and effect. The 2008 Order is hereby amended by the deletion of Paragraph 2 and by the
addition of the following:

Capital Plan.

12. By December 31, 2010, the Holding Company shall submit to the Regional Director
for review and comment, a detailed written plan for enhancing the consolidated capital and
earnings of the Holding Company (Capital Plan). The Capital Plan shall cover the period
beginning with the quarter ending December 31, 2010 through the quarter ending December
31, 2012. At a minimum, the Capital Plan shall include:

(a) establishment of a minimum
tangible capital ratio of tangible equity capital to total tangible assets commensurate
with the Holding Company’s consolidated risk profile;

(b) operating strategies to achieve
net income levels that will result in profitability;

(c) quarterly cash flow projections
for the Holding Company on a consolidated basis through calendar year-end December 31, 2012
that identify both the sources of funds and the expected uses of funds;

United Community Financial Corp

Amended Order to Cease and Desist

Page 2 of 4

 

 

 

(d) detailed quarterly pro forma consolidated and unconsolidated Holding
Company balance sheets and income statements for the period covered by the
Capital Plan that reflect maintenance throughout the period of the Board
established minimum tangible equity capital ratio; and

(e) detailed descriptions of
all relevant assumptions and projections and the supporting documentation for all
relevant assumptions and projections.

13. Upon receipt of written notification from the Regional Director that the Capital
Plan is acceptable, the Holding Company shall implement and adhere to the Capital Plan. A
copy of the Capital Plan shall be provided to the Regional Director within seven (7) days
after Board approval.

14. The Holding Company shall notify the Regional Director regarding any material
negative event affecting or that may affect the balance sheet, capital, or the cash flow of
the Holding Company within five (5) days after such event.

15. Within forty-five (45) days after the end after quarter, after implementation of
the Capital Plan, the Board shall review written quarterly variance reports on the Holding
Company’s compliance with its Capital Plan (Variance Reports). The minutes of the Board
meeting shall fully document the Board’s review and discussion. The Variance Reports shall:

(a) identify variances in the Holding Company’s actual performance during the preceding
quarter as compared to the projections set forth in the Capital Plan;

(b) contain
an analysis and explanation of identified variances; and

(c) discuss the specific
measures taken or to be taken by the Holding Company to address identified variances.

United Community Financial Corp

Amended Order to Cease and Desist

Page 3 of 4

 

 

 

16. A copy of each Variance Report shall be provided to the Regional Director within
seven (7) days after Board approval.

Effective Date, Incorporation of Stipulation.

3. This Amended Order is effective on the Effective Date as shown on the first page. The
Stipulation is made a part hereof and is incorporated herein by this reference.

IT IS SO ORDERED.

	 	 	 	 	 
	 	OFFICE OF THRIFT SUPERVISION

 	 
	 	By:  	/s/ Daniel T. McKee 	 
	 	 	Daniel T. McKee 	 
	 	 	Regional Director, Central Region 	 
	 

United Community Financial Corp

Amended Order to Cease and Desist

Page 4 of 4Exhibit 10.3

Exhibit 10.3

UNITED STATES OF AMERICA

Before the

OFFICE OF THRIFT SUPERVISION

	 	 	 	 	 	 	 

	 

	 	 	)	 	 	 
	In the Matter of

	 	 	)	 	 	Order No.: CN 10-34
	 

	 	 	)

)	 	 	 
	UNITED COMMUNITY FINANCIAL CORP

	 	 	)	 	 	Effective Date: November 5, 2010
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	Youngstown, Ohio

	 	 	)	 	 	 
	OTS Docket No. H3075

	 	 	)	 	 	 
	

	 	 	)	 	 	 

STIPULATION AND CONSENT TO ISSUANCE OF

AMENDED ORDER TO CEASE AND DESIST

WHEREAS, the Office of Thrift Supervision (OTS), acting by and through its Regional
Director for the Central Region (Regional Director), issued an Order to Cease and Desist (OTS
Order No. CN 08-09) against United Community Financial Corp, Youngstown, Ohio, OTS Docket No.
H3075 (Holding Company) pursuant to 12 U.S.C. § 1818(b), that became effective on August 12,
2008 (2008 Order); and

WHEREAS, the Regional Director, pursuant to delegated authority, is authorized to amend
issued orders to cease and desist where a savings and loan holding company has consented to the
amendment of an existing order; and

WHEREAS, the Holding Company desires to cooperate with the OTS to avoid the time and
expense of such administrative cease and desist proceeding by entering into this Stipulation
and Consent to the Issuance of Amended Order to Cease and Desist (Stipulation) and, without
admitting or denying that such grounds exist, but only admitting the statements and conclusions
in Paragraphs 1 - 3 below concerning Jurisdiction, hereby stipulates and agrees to the
following terms:

United Community Financial Corp

Stipulation and Consent to Issuance of Amended Order to Cease and Desist

Page 1 of 5

 

 

 

Jurisdiction.

1. The Holding Company is a “savings and loan holding company” within the meaning of 12 U.S.C.
§ 1813(w)(3) and 12 U.S.C. § 1467a. Accordingly, the Holding Company is a “depository
institution holding company” as that term is defined in 12 U.S.C. § 1813(w)(1).

2. Pursuant to 12 U.S.C. § 1818(b)(9), the “appropriate Federal banking agency” may initiate
cease and desist proceedings against a savings and loan holding company in the same manner and
to the same extent as a savings association for regulatory violations and unsafe or unsound
acts or practices.

3. Pursuant to 12 U.S.C. § 1813(q), the Director of OTS is the “appropriate Federal banking
agency” with jurisdiction to maintain an administrative enforcement proceeding against a
savings and loan holding company. Therefore, the Holding Company is subject to the authority of
the OTS to initiate and maintain an administrative cease and desist proceeding against it
pursuant to 12 U.S.C. § 1818(b).

OTS Findings of Fact.

4. Based on its February 25, 2008 examination of the Holding Company, the OTS finds that the
Holding Company engaged in unsafe or unsound practices, which led to the issuance of the 2008
Order.

Consent.

5. The Holding Company consents to the issuance by the OTS of the accompanying Amended Order to
Cease and Desist (Amended Order). The Holding Company further agrees to comply with the terms of
the Amended Order upon the Effective Date of the Amended Order and stipulates that the Amended
Order complies with all requirements of law.

United Community Financial Corp

Stipulation and Consent to Issuance of Amended Order to Cease and Desist

Page 2 of 5

 

 

 

Finality.

6. The Amended Order is issued by the OTS under 12 U.S.C. § 1818(b). Upon the Effective Date, the
Amended Order shall be a final order, effective, and fully enforceable by the OTS under the
provisions of 12 U.S.C. § 1818(i).

Waivers.

7. The Holding Company waives the following:

(a) the right to be served with a written notice of the OTS’s charges against it as
provided by 12 U.S.C. § 1818(b) and 12 C.F.R. Part 509;

(b) the right to an administrative hearing of the OTS’s charges as provided by 12 U.S.C. §
1818(b) and 12 C.F.R. Part 509;

(c) the right to seek judicial review of the Amended Order, including, without limitation,
any such right provided by 12 U.S.C. § 1818(h), or otherwise to challenge the validity of
the Amended Order; and

(d) any and all claims against the OTS, including its employees and agents, and any other
governmental entity for the award of fees, costs, or expenses related to this OTS
enforcement matter and/or the Amended Order, whether arising under common law, federal
statutes, or otherwise.

OTS Authority Not Affected.

8. Nothing in this Stipulation or accompanying Amended Order shall inhibit, estop, bar, or
otherwise prevent the OTS from taking any other action affecting the Holding Company if, at any
time, the OTS deems it appropriate to do so to fulfill the responsibilities placed upon the OTS by
law.

United Community Financial Corp

Stipulation and Consent to Issuance of Amended Order to Cease and Desist

Page 3 of 5

 

 

 

Other Governmental Actions Not Affected.

9. The Holding Company acknowledges and agrees that its consent to the issuance of the
Amended Order is solely for the purpose of resolving the matters addressed herein,
consistent with Paragraph 8 above, and does not otherwise release, discharge, compromise, settle,
dismiss, resolve, or in any way affect any actions, charges against, or liability of the Holding
Company that arise pursuant to this action or otherwise, and that may be or have been brought by
any governmental entity other than the OTS.

Miscellaneous.

10. The laws of the United States of America shall govern the construction and validity of this
Stipulation and of the Amended Order.

11. If any provision of this Stipulation and/or the Amended Order is ruled to be invalid, illegal,
or unenforceable by the decision of any Court of competent jurisdiction, the validity, legality,
and enforceability of the remaining provisions hereof shall not in any way be affected or impaired
thereby, unless the Regional Director in his or her sole discretion determines otherwise.

12. All references to the OTS in this Stipulation and the Amended Order shall also mean any of the
OTS’s predecessors, successors, and assigns.

13. The section and paragraph headings in this Stipulation and the Amended Order are for
convenience only and shall not affect the interpretation of this Stipulation or the Amended Order.

14. The terms of this Stipulation and of the Amended Order represent the final agreement of the
parties with respect to the subject matters thereof, and constitute the sole agreement of the
parties with respect to such subject matters.

15. The Stipulation and Amended Order shall remain in effect until terminated, modified, or
suspended in writing by the OTS, acting through its Regional Director or other authorized
representative.

United Community Financial Corp

Stipulation and Consent to Issuance of Amended Order to Cease and Desist

Page 4 of 5

 

 

 

Signature of Directors/Board Resolution.

16. Each Director signing this Stipulation attests that he or she voted in favor of a Board
Resolution authorizing the consent of the Holding Company to the issuance of the Amended
Order and the execution of the Stipulation. This Stipulation may be executed in counterparts by the
directors after approval of the execution of the Stipulation at a duly called board meeting.

WHEREFORE, the Holding Company, by its directors, executes this Stipulation.

	 	 	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	Accepted by:	 	 
	 
	UNITED COMMUNITY FINANCIAL CORP 

Youngstown, Ohio	 	 	 	OFFICE OF THRIFT SUPERVISION
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard J. Schiraldi	 	 	 	By:	 	/s/ Daniel T. McKee	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Richard J. Schiraldi, Chairman
	 	 	 	 	 	Daniel T. McKee	 	 
	 

	 	 	 	 	 	 	 	Regional Director, Central Region	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	/s/ Eugenia C. Atkinson	 	 	 	Date: See Effective Date on page 1
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Eugenia C. Atkinson, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Patrick W. Bevack	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Patrick W. Bevack, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Richard J. Buoncore	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Richard J. Buoncore, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Scott N. Crewson	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Scott N. Crewson, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Scott D. Hunter	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Scott D. Hunter, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Douglas M. McKay	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Douglas M. McKay, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ David C. Sweet	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	David C. Sweet, Director	 	 	 	 	 	 	 	 
	 
	 
	 	/s/ Donald J. Varner	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Donald J. Varner, Director	 	 	 	 	 	 	 	 

United Community Financial Corp

Stipulation and Consent to Issuance of Amended Order to Cease and Desist

Page 5 of 5

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