First Federal Bank’s parent corporation, First Defiance Financial Corp., will buy United Community Financial Corp., of Youngstown, for about $473 million.
As part of the deal, Home Savings Bank, United Community’s subsidiary, will become part of First Federal Bank of the Midwest, the companies reported. The deal is expected to close in the first quarter of 2020.
Under the terms of the deal, United Community shareholders will receive 0.3715 shares of First Defiance common stock for each share of United Community stock. Upon closing, First Defiance shareholders will own about 52.5 percent of the combined company and United Community shareholders will own about 47.5 percent.
The combination of the companies will generate efficiencies, strengthen operating leverage and increase shareholder value, the companies reported.