First Defiance Financial Corp. and United Community Financial Corp. announced the signing of a definitive merger agreement under which United Community will merge into First Defiance in a stock-for-stock transaction.

Home Savings Bank, a wholly owned subsidiary of United Community, will merge into First Federal Bank of the Midwest, a wholly owned subsidiary of First Defiance. The combined company will operate under a name to be jointly determined prior to closing with the holding company headquartered in Defiance, Ohio, and the bank headquartered in Youngstown, Ohio. As part of the merger, both CEOs will play critical roles in leading the integration of the companies.

Once the merger is complete, Donald P. Hileman will serve as the Chief Executive Officer of the holding company and the bank before transitioning to an Executive Chairman role in early 2021. Gary M. Small will assume the role of President of the holding company and the bank before transitioning to the Chief Executive Officer role when Mr. Hileman becomes Executive Chairman. Together they will lead the company and partner on overall strategy, management and performance of the company.

In addition to these roles, the executive management team and employees of the combined company will continue to provide an unsurpassed customer-focused culture. The Board of Directors of the combined company will be comprised of seven members designated by First Defiance (including Mr. Hileman and its current Chairman, John Bookmyer) and six members designated by United Community (including Mr. Small and its current Chairman, Richard Schiraldi who will be named Vice Chairman). The directors of the combined company will be determined in the coming months and identified prior to the closing of the transaction.