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<p align=center><font size=3
face=Courier>FORM 10-Q<br>
<br>
<br>
SECURITIES AND EXCHANGE COMMISSION<br>
WASHINGTON, D.C. 20549<br><br></font></p>

<p><font size=3 face=Courier>&nbsp; (X) QUARTERLY REPORT PURSUANT TO SECTION 13
  OR 15(d) OF THE SECURITIES<br>
  </font><font size=3 face=Courier>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;EXCHANGE ACT
  OF 1934</font></p>

<p align=center><font size=3
face=Courier><br>
  <br>
  For the quarterly period ended March 31, 2002</font></p>
<p align=center><font size=3 face=Courier> OR</font></p>
<p align=left><font size=3
face=Courier> &nbsp;&nbsp;( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
  OF THE SECURITIES <br>
  &nbsp;&nbsp;&nbsp;&nbsp; </font><font size=3 face=Courier>&nbsp;EXCHANGE ACT
  OF 1934</font></p>
<p align=left><font size=3 face=Courier>For the transition period from _______
  to _______</font></p>
<p align=left><font size=3 face=Courier>Commission File Number <u>&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  0-11242</u></font></p>

<p><u><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; First Commonwealth Financial Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;_&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></u><br>
  <font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Exact name
  of registrant as specified in its charter)<br>
  <br>
  </font></p>

<p><font size=3 face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp; Pennsylvania&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; 25-1428528&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; <br>
  </u></font><font size=3 face=Courier>(State or other jurisdiction of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (I.R.S. Employer <br>
  </font><font size=3 face=Courier>&nbsp;incorporation or organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Identification
  No.)<br>
  <br>
  </font></p>

<p><font size=3 face=Courier><br>
<u>&nbsp;&nbsp;&nbsp;&nbsp; 22 North Sixth Street&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Indiana,
PA&nbsp; 15701&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
(Address of principal executive offices)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)<br><br></font></p>

<p><font size=3 face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  724-349-7220&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; <br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant's telephone
number, including area code)<br><br></font></p>

<p><font size=3 face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; N/A&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </u><br>
(Former name, former address and former fiscal year, if changed since last<br>&nbsp;report.)<br>
<br><br></font></p>

<p><font size=3 face=Courier>Indicate
a check mark whether the registrant(1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>X&nbsp;&nbsp;&nbsp; </u>
No <u>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; </u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
May 3, 2002 was 58,704,143.</font></p>

<font size=3 face=Courier><br
clear=all>
</font>

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES</font></p>
<p align=center><font size=3 face=Courier> PART I - FINANCIAL INFORMATION</font></p>

<p><font size=3 face=Courier> <br>
  <u>ITEM 1</u>.&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Included in Part I of this
  report:&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp; PAGE<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; First Commonwealth Financial
  Corporation and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Subsidiaries Consolidated Balance Sheets . . .&nbsp;&nbsp;&nbsp;&nbsp; 3 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Income. . . . . . . &nbsp;&nbsp; &nbsp;4 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Changes in <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; Shareholders' Equity. . . . . . . . . . . &nbsp;&nbsp;
  &nbsp;5 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Cash Flows. . . . . &nbsp;&nbsp;&nbsp;&nbsp;6 <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Notes to Consolidated Financial Statements . . &nbsp;&nbsp;&nbsp;&nbsp;7 <br>
  <br>
  <u>ITEM 2</u>.&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;12 <br>
  <br>
  <u>ITEM 3</u>.&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; MARKET RISK . . . . . . .
  . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;27 <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; PART II - OTHER INFORMATION<br>
  <br>
  Other Information . . . . . . . . . . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;</font>28
</p>
<p><font face="Courier New, Courier, mono">Signatures. . . . . . . . . . . . .
  . . . . . .Signature Page </font><br>
  <br>
  <br>
</p>
<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  </font><font size=3
face=Courier>CONSOLIDATED BALANCE SHEETS (Unaudited)<br>
  </font><font size=3
face=Courier>(Dollars in thousands)<br>
  <br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>March 31,<br>
        2002</font></p>
    </td>
    <td width=115 valign=top>
      <p align=center><font size=1
  face=Courier>December 31,<br>
        2001</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=center><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h3><b><font size=1 face=Courier>ASSETS</font></b></h3>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and due from banks on demand .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>$&nbsp;&nbsp; 60,686&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $&nbsp;&nbsp;&nbsp; 98,130&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest-bearing deposits with banks.
        . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>1,279&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>4,250&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Federal funds sold. . . . . . . . .
        . . . . . . . . . . . . .</font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,150&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>-0-&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities available for sale, at market.
        . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>1,437,306&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>1,469,118&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities held to maturity, at cost,<br>
        &nbsp;&nbsp; (Market value $283,951 in 2002 <br>
        &nbsp;&nbsp;&nbsp; and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp; 279,595&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; 293,290&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,589,053&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;2,569,231&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Unearned income . . . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>(1,128)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (1,297)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Allowance for credit losses
        . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; (34,078)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (34,157)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top height="7">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loans .
        . . . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top height="7">
      <p align=right><font size=1
  face=Courier>2,553,847&nbsp;</font></p>
    </td>
    <td width=115 valign=top height="7">
      <p align=right><font size=1
  face=Courier>&nbsp;2,533,777&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Property and equipment. . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 46,563</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 46,418 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other real estate owned . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,106</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,619 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,141</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,539 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 112</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 232 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 141,848 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 130,157 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>$4,533,633 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>$4,583,530 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>========== </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>========== </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h3><b><font size=1 face=Courier>LIABILITIES</font></b></h3>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Deposits (all domestic):</font></p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Noninterest bearing . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $&nbsp; 373,405 </font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $&nbsp;&nbsp; 412,695
        </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest bearing. . . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,731,148 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;2,680,455 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits.
        . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>3,104,553 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;3,093,150 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Short-term borrowings . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 341,985 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 427,736 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other liabilities . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 36,989 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 28,358 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Company obligated mandatorily redeemable
        capital <br>
        &nbsp;&nbsp;&nbsp; securities of subsidiary trust. . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 35,000 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; 35,000 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other long-term debt. . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 646,858 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 629,220 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Total long-term
        debt. . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 681,858 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 664,220 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities
        . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>4,165,385 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;4,213,464 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h4><b><font size=1 face=Courier>SHAREHOLDERS' EQUITY</font></b></h4>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;Preferred stock, $1 par value per
        share,<br>
        &nbsp;&nbsp;&nbsp; 3,000,000 shares authorized, none issued . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0- </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0- </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Common stock, $1 par value per share,
        <br>
        &nbsp;&nbsp;&nbsp; 100,000,000 shares authorized, 62,525,412 <br>
        &nbsp;&nbsp;&nbsp; shares issued; 58,641,160 and 58,451,624 <br>
        &nbsp;&nbsp;&nbsp; shares outstanding at March 31, 2002 and <br>
        &nbsp;&nbsp;&nbsp; December 31, 2001 respectively. . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
        &nbsp;&nbsp; 62,525 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; 62,525 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Additional paid-in capital. . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 65,667 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 66,176 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Retained earnings . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 287,062 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 288,219 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Accumulated other comprehensive income.
        . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 5,890 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,703 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock (3,884,252 shares at
        March 31, 2002 and <br>
        &nbsp;&nbsp;&nbsp; 4,073,788 at December 31, 2001, at cost). . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp; (49,038)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; (51,431)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (3,858)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (4,126)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders'
        equity. . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 368,248 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 370,066 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________ </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>$4,533,633 </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>$4,583,530 </font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>========== </font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>========== </font></p>
    </td>
  </tr>
</table>

<p><font size=3 face=Courier><br>
  </font><font size="1" face="Courier">The accompanying notes are an integral
  part of these consolidated financial statements.</font></p>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>3</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  CONSOLIDATED STATEMENTS OF INCOME<br>
  </font><font size=3 face=Courier>&nbsp;(Unaudited)<br>
  </font><font size=3 face=Courier>(Dollars in thousands, except per share data)</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>For the
  Quarter<br>
  Ended March 31, </font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>________________</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>2002</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>2001</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>_____</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>_____</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h3><b><font size=1 face=Courier>Interest Income</font></b></h3>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest and fees on loans . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;$45,327</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;$52,222</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp; Interest
  and dividends on investments: </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Taxable interest . . . .
        . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 22,238</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 23,331</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest exempt from Federal
        income taxes. . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,392</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,371</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Dividends. . . . . . . .
        . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 552</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 854</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on Federal funds sold . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 282</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on bank deposits. . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        income. . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 70,523</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 79,080</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Interest
  Expense</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on deposits . . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 21,321</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 32,057</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on short-term borrowings. .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,765</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 3,524</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp; Interest
  on company obligated mandatorily redeemable capital<br>
        &nbsp;&nbsp;&nbsp; securities of subsidiary trust . . . . . . . . . .
        . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;<br>&nbsp;&nbsp;&nbsp;&nbsp; 831</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 831</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on other long-term debt . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 8,564</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 8,436</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        on long-term debt . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 9,395</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 9,267</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        expense . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 32,481</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 44,848</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Net Interest
  Income</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 38,042</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 34,232</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Provision for credit losses. . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,917</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,407</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top>
      <h5><b><font size=1 face=Courier>Net interest income after provision for
        credit losses. . . </font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 35,125</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 31,825</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Other Income</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities gains . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 39</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 205</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Trust income . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; &nbsp;1,213</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,294</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Service charges on deposit accounts.
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,693</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,581</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Insurance commissions. . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 856</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 655</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Income from bank owned life insurance.
        . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,069</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 949</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other income . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,519</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 3,583</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        income . . . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 8,389</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 9,267</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Other
  Expenses</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Salaries and employee benefits . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 14,643</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 13,669</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net occupancy expense&nbsp; . . . .
        . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,686</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,777</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Furniture and equipment expense. . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,398</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,126</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Data processing expense. . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 442</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 767</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Pennsylvania shares tax expense. . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 995</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 941</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill amortization. . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 230</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Intangible amortization. . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 120</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 123</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Litigation settlement. . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 8,000</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other operating expenses . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 7,159</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 5,823</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        expenses . . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 35,443</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 25,456</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
  <td width=103 valign=top>
      <p align=center><font size=1
  face=Courier> _______</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top>
      <h5><b><font size=1 face=Courier>Income before income taxes</font></b><font size=1 face=Courier>
        . . . . . . . . . . . . . . . .</font> </h5>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;8,071</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 15,636</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Applicable income taxes . . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 433</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 3,613</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top>
      <h5><b><font size=1 face=Courier>Net income. . . . . . . . . . . . . . .
        . . . . . .&nbsp;. . . </font></b></h5>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;$ 7,638</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;$12,023</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;=======</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;========</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding&nbsp; . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>58,142,359</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>57,721,959</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding Assuming Dilution
        . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>58,484,806</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>57,802,012</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><b><font size=1 face=Courier>Per Share Data: </font></b></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Basic earnings per share. . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>$ 0.13</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>$ 0.21</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Diluted earnings per share. . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>$ 0.13</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>$ 0.21</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top height="2">
      <p><font size=1 face=Courier>&nbsp; Cash dividends per share. . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
    <td width=108 valign=top height="2">
      <p align=center><font size=1
  face=Courier>$0.150</font></p>
  </td>
    <td width=103 valign=top height="2">
      <p align=center><font size=1
  face=Courier>$0.145</font></p>
  </td>
 </tr>
</table>

<p><font size=1 face=Courier>The accompanying notes are an integral part of these
consolidated financial statements.</font></p>

<p align=center><font size=1
face=Courier>4</font></p>
<p align=center><font size=1
face=Courier><br
clear=all>
  </font>FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  <font size=3 face=Courier>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
  EQUITY <br>
  </font><font size=3 face=Courier>(Unaudited)<br>
  </font><font size=3 face=Courier>(Dollars in thousands)<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0 width=845>
  <tr>
    <td width=236 valign=top>
      <h1>&nbsp;</h1>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Common<br>
  Stock<br>
  ______</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>
  Additional<br>
  Paid-In<br>
  Capital<br>
  _________</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Retained<br>
  Earnings<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  Income<br>
  _____________</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Treasury<br>
  Stock<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Unearned<br>
  ESOP<br>
  Shares<br>
  ______</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Total<br>
  Shareholders'<br>
  Equity<br>
  _____________</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1>&nbsp;</h1>
  </td>
    <td width=69 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=right>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1><b><font size=1 face=Courier>Balance at <br>
        &nbsp;December 31, 2000. . .</font></b></h1>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>$62,525</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>$67,223</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>$272,169</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$(7,808)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(54,666)</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(5,287)</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>$334,156</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;
  Comprehensive income </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net income. . . . . . .
        . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 12,023</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 12,023</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top height="64">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other comprehensive <br>
        &nbsp;&nbsp;&nbsp;&nbsp; income,net of tax:<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gains on&nbsp;securities <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; arising during<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the period. . . . .</font></p>
  </td>
    <td width=69 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top height="64" width="104">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;11,189</font></p>
  </td>
    <td width=72 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top height="64">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp; 11,189</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top height="47">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less:&nbsp;
        reclassification <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;on&nbsp;securities
        included<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in net&nbsp;income. . . . .</font></p>
  </td>
    <td width=69 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="104" height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=82 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; (109)<br>
  _______</font></p>
  </td>
    <td width=72 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; &nbsp;-0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=114 valign=top height="47">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp; (109)<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total
  other comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  11,080<br>
  _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; 11,080<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Total comprehensive income. </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 12,023</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>11,080</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 23,103</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash dividends declared. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>(8,443)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; (8,443)</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Decrease in unearned ESOP<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shares</font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 357</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 357</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend<br>
        &nbsp;&nbsp; reinvestment plan <br>
        &nbsp;&nbsp; purchases. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (153)</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; (153)</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top height="2">
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104" height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock reissued. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (91)</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0- </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 337 </font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 246</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
  _______</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>&nbsp; _______</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; <br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; <br>&nbsp;______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; <br>&nbsp;________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; <br>
  ________</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
  ________</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1><b><font size=1 face=Courier>Balance at March 31, 2001. </font></b></h1>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>$62,525<br>
  =======</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>$66,979<br>
  =======</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>$275,749<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$3,272<br>
  ======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(54,329)<br>
  =========</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(4,930)<br>
  ========</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>$349,266<br>
  ========</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1>&nbsp;</h1>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1><b><font size=1 face=Courier>Balance at December 31, <br>
        &nbsp;2001 . .</font></b></h1>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>$62,525</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>$66,176</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>$288,219</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$8,703</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(51,431)</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(4,126)</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>$370,066</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;
  Comprehensive income </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net income. . . . . . .
        . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 7,638</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 7,638</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top height="67">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other comprehensive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income,&nbsp;net
        of tax:<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; losses on&nbsp;<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities arising <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; during&nbsp;the period. . . </font></p>
  </td>
    <td width=69 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104" height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;(2,787)</font></p>
  </td>
    <td width=72 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top height="67">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        &nbsp; (2,787)</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top height="51">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less:&nbsp;
        reclassification<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; on&nbsp;securities included<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in net&nbsp;income. . . . . </font></p>
  </td>
    <td width=69 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="104" height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=82 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; (26)<br>&nbsp; _______</font></p>
  </td>
    <td width=72 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=114 valign=top height="51">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; (26)<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total
  other comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp; (2,813)<br>&nbsp; ______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp; (2,813)<br>
  _______</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Total comprehensive income. </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 7,638</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; &nbsp;(2,813) </font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 4,825</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash dividends declared. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (8,795)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (8,795)</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Decrease in unearned ESOP<br>
        &nbsp;&nbsp; shares</font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 268</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 268</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend<br>
        &nbsp;&nbsp; reinvestment plan <br>
        &nbsp;&nbsp; purchases. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (157)</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-&nbsp; </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (157)</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock reissued. . </font></p>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (352)</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 2,393</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 2,041</font></p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=69 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="104">
      <p align=center>&nbsp;</p>
  </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=114 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=236 valign=top>
      <h1><b><font size=1 face=Courier>Balance at March 31, 2002. </font></b></h1>
  </td>
    <td width=69 valign=top>
      <p align=center><font size=1
  face=Courier>$62,525<br>
  =======</font></p>
  </td>
    <td valign=top width="104">
      <p align=center><font size=1
  face=Courier>$65,667<br>
  =======</font></p>
  </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>$287,062<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$5,890<br>&nbsp;======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(49,038)<br>
  =========</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(3,858)<br>
  ========</font></p>
  </td>
    <td width=114 valign=top>
      <p align=center><font size=1
  face=Courier>$368,248<br>&nbsp;========</font></p>
  </td>
 </tr>
</table>

<p><font size=1 face=Courier><br>The accompanying notes are an integral
part of these consolidated financial statements.<br>
<br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=1
face=Courier>5</font><br
clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED STATEMENTS OF
  CASH FLOWS<br>
  <font size=3
face=Courier>(Unaudited)<br>
  </font><font size=3
face=Courier>(Dollars in thousands)</font></p>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<table border=1 cellspacing=0 cellpadding=0>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>For the
  3 Months<br>
  Ended March 31, </font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>________________</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>2002</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>2001</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>_____</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>_____</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h3><b><font size=1 face=Courier>Operating Activities</font></b></h3>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; $7,638</font></p>
  </td>
  <td width=103 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; $12,023</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Adjustments to reconcile net income to net <br>&nbsp;&nbsp;&nbsp; cash provided (used) by operating
  activities:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit
        losses. . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,917</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 2,407</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization.
        . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,836</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 1,824</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Net losses (gains)
        on sales of assets. . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 179</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (1,182)</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Income from increase
        in cash surrender value of bank owned<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; life insurance.</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,068)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (949)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        receivable. . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 838</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 1,040</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        payable . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,245)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(14,818)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Increase in income
        taxes payable . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 476</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 3,577</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred
        taxes . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (49)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 22</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,912</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (4,399)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided
        (used) by operating activities. . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 15,434</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (455)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Investing
  Activities</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Transactions with securities held to maturity:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 28,937</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;73,608</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (15,241)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;
  -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Transactions with securities available for sale:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,200</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;25,520</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; 114,941</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;97,663</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (90,617)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>(264,767)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sales of loans and other
        assets . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 5,037</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;24,791</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Acquisition of affiliate, net of cash
        received. . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Investment in bank owned life insurance
        . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (5,000)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(15,000)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net decrease (increase) in time deposits
        with banks . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,971</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (1,032)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase in loans . . . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (29,039)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(38,350)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Purchases of premises and equipment
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,776)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (1,584)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash provided (used)
        by investing activities. . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 13,421</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(99,151)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Financing
  Activities</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Repayments of other long-term debt.
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (306)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (130)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from issuance of other long-term
        debt. . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 18,200</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 2,000</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp; Proceeds
  from issuance of company obligated mandatorily<br>
        &nbsp;&nbsp;&nbsp; redeemable capital securities of subsidiary trust .
        . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend reinvestment plan
        purchased. . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (157)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (153)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (8,768)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (8,440)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net decrease in Federal funds purchased
        . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (65,579)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (6,150)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase (decrease) in other short-term
        borrowings. . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (20,171)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;20,893</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Sale of branch and deposits, net of
        cash received . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (9,591)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase in deposits. . . . . .
        . . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 11,403 </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;97,333</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sale of treasury stock.
        . . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,229</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 246</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash provided (used)
        by financing activities. . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (64,149)
  </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;96,008</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net increase (decrease)
        in cash and cash equivalents. . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (35,294)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (3,598)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at January
        1. . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; &nbsp;98,130</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>101,848</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at March 31.
        . . . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; $62,836</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>$98,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ========</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
 </tr>
</table>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=1 face=Courier>The accompanying notes are integral part of these
consolidated financial statements.<br>
<br>
<br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=1
face=Courier>6</font></p>
<p align=center><font size=1
face=Courier> <br
clear=all>
  </font>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  <font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>March 31, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)<br>
  </font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 1&nbsp;&nbsp;&nbsp;&nbsp; Management Representation<br>
</u><br>
In the opinion of management, the unaudited interim consolidated financial
statements include all adjustments (consisting of only normal recurring
adjustments) necessary for a fair statement of financial position as of March
31, 2002 and the results of operations for the three month periods ended March
31, 2002 and 2001, and statements of cash flows and changes in shareholders'
equity for the three month periods ended March 31, 2002 and 2001.&nbsp; The results of the three months ended March
31, 2002 and 2001 are not necessarily indicative of the results to be expected
for the entire year.&nbsp; The interim
consolidated financial statements should be read in conjunction with the annual
consolidated financial statements of First Commonwealth Financial Corporation
and Subsidiaries, including the notes thereto. <br>
<br>
<u>NOTE 2&nbsp;&nbsp;&nbsp;&nbsp; Cash Flow Disclosures
(dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=115 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Cash
  paid during the first three months of the year for:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Interest</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$33,726</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$44,847</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Income
  Taxes</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;
  -0-</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; ESOP loan reductions</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;
  268</font></p>
  </td>
    <td width=115 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp; $&nbsp;&nbsp; 357</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans transferred to other real estate
  owned and<br>&nbsp;&nbsp;&nbsp; repossessed assets</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier><br>&nbsp;$ 2,109</font></p>
  </td>
    <td width=115 valign=top>
      <p><font size=3 face=Courier><br>
        &nbsp;&nbsp; $ 1,020</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gross increase (decrease) in market value<br>&nbsp;&nbsp;&nbsp; adjustment to securities available
  for sale</font></p>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=3
  face=Courier><br>
        $(4,327)&nbsp;&nbsp;</font></p>
  </td>
    <td width=115 valign=top>
      <p align=center><font size=3
  face=Courier><br>
        &nbsp;&nbsp;$17,046&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Treasury stock reissued for acquisition</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;
  812</font></p>
  </td>
    <td width=115 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp; $&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br><br></font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>7</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>March 31, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

<p align=left><u><font size=3
face=Courier> NOTE 3&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive Income Disclosures<br>
<br></font></u>The following table identifies the related tax effects
allocated to each component of other comprehensive income in the Statements of
Changes in Shareholders' Equity: (dollar amounts in thousands)<br><br></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td colspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>March
  31, 2002<br>
  _______________</font></p>
  </td>
    <td colspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>March
  31, 2001<br>
  _______________</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  Amount<br>
  _______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  Benefit<br>
  _________</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  Amount<br>
  _______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  Amount<br>
  ________</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  Benefit<br>
  _________</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  Amount<br>
  _______</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=67 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=67 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p><font size=1 face=Courier>&nbsp;
  Unrealized holding gains (losses) arising<br>&nbsp;&nbsp;&nbsp; during the period . . . . . . . .
  . . . .</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  ($4,287)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $1,500</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  ($2,787)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $17,214</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  ($6,025)</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $11,189</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p><font size=1 face=Courier>&nbsp; Less:
  reclassification adjustment for gains<br>&nbsp;&nbsp;&nbsp; realized in net income. . . . . .
  . . . .</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (40)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; 14</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (26)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; (168)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; 59</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; (109)</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net
  unrealized gains (losses) . . . . . . .</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>(4,327)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>1,514</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>(2,813)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>17,046</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>(5,966)</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>11,080</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p><font size=1 face=Courier>Other comprehensive income. . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>($4,327)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>$1,514</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>($2,813)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>$17,046</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>($5,966)</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>$11,080</font></p>
  </td>
 </tr>
 <tr>
    <td width=368 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>======</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
  <td width=67 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
 </tr>
</table>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<p><u><font size=3 face=Courier>NOTE
4&nbsp;&nbsp;&nbsp;&nbsp; Business Combination</font></u><br>
<br>
Effective March 1, 2002, the Corporation acquired all of the outstanding shares
of Strategic Capital Concepts, Inc. (&quot;SCC&quot;) and Strategic Financial
Advisors, Inc. (&quot;SFA&quot;), each a Pennsylvania corporation headquartered
in Allison Park, Pennsylvania.&nbsp; As a
registered investment adviser, Strategic Capital Concepts provides financial
planning, asset management and consulting services to individuals, businesses,
retirement plans, trusts and estates.&nbsp;
Strategic Financial Advisors offers investment and insurance products as
well as employee benefit services.&nbsp; Each
of the outstanding shares of Strategic Capital Concepts, Inc. and Strategic
Financial Advisors, Inc. were exchanged for shares of the Corporation's common
stock.&nbsp; In addition, the shareholders of
SCC and SFA are entitled to receive additional shares of the Corporation's
common stock for each of the years 2002 through 2005 based on a formula defined
in the merger agreement which takes into consideration the financial
performance of SCC and SFA after the merger date.&nbsp; The merger was accounted for as a purchase transaction whereby
the identifiable tangible and intangible assets and liabilities of SCC and SFA
have been recorded at their fair values at the acquisition date.&nbsp; Goodwill in the amount of $1.6 million was
recorded as a result of the transaction.&nbsp;
As prescribed under the purchase method of accounting, the results of
operations of SCC and SFA from the date of acquisition are included in the
Corporation's financial statements for the first quarter of 2002.<br>
<u><br>
NOTE 5&nbsp;&nbsp;&nbsp;&nbsp; Subsequent Event</u><br>
<br>
On May 9, 2002, the Corporation reached final settlement with the plaintiffs in
a lender liability action filed in 1994 against one of its subsidiary banks
relating to lending activities occurring prior to the Corporation's acquisition
of that subsidiary.&nbsp; The decision to
settle followed an adverse pre-trial judgment by the trial judge on procedural
grounds.<br>
<br>&nbsp;</p>

<p align=center><font size=3
face=Courier>8</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>March 31, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

<p><u><font size=3 face=Courier>NOTE 5&nbsp;&nbsp;&nbsp;&nbsp; Subsequent Event</font></u>
  (continued)<br>
  <br>
  Under the settlement agreement, the Corporation will pay the plaintiffs $8.0
  million in cash.&nbsp; Management believes that liability insurance will cover
  a portion of the settlement, but the precise amount of insurance coverage has
  not yet been determined.&nbsp; In addition, the uninsured portion of the settlement
  will be tax-deductible.&nbsp; The settlement resulted in a one-time charge of
  $8.0 million ($5.2 million, net of tax effect) or $0.09 per share, after tax
  to the company's first quarter earnings, but the<br>
  settlement will not affect the company's ongoing operating results.&nbsp; The
  $8.0 million dollar litigation settlement is reflected as a separate line item
  in the Corporation's Consolidated Statements of Income for the first quarter
  of 2002 and a corresponding accrued liability is included in &quot;Other Liabilities&quot;
  on the Corporation's Consolidated Balance Sheet at March 31, 2002.<br>
  <br>
  <u><font size=3 face=Courier>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; New Accounting Pronouncements</font></u><br>
  <br>
  In July 2001, the Financial Accounting Standards Board (&quot;FASB&quot;) issued
  statement No. 141, &quot;Business Combinations&quot; (&quot;FAS No. 141&quot;)
  which supersedes APB Opinion No. 16 &quot;Business Combinations&quot; but carries
  forward the guidance in Opinion No. 16 related to the application of the purchase
  method of accounting.&nbsp; FAS No. 141 requires the purchase method of accounting
  for business combinations initiated after June 30, 2001 and eliminates the pooling-of-interest
  method.&nbsp; FAS No. 141 also specifies the types of acquired intangible assets
  that are required to be recognized and reported separately from goodwill.&nbsp;
  Intangible assets are recognized as assets apart from goodwill if the asset
  arises from contractual or other legal rights or the asset is capable of being
  separated from the acquired entity and sold or exchanged.&nbsp; In addition
  to the disclosure requirements in Opinion No. 16, FAS No. 141 requires disclosure
  of the primary reasons for the business combination and the allocation of the
  purchase price paid to the assets acquired and liabilities assumed by major
  balance sheet caption.&nbsp; After initial recognition, goodwill and other intangible
  assets acquired in a business combination are accounted for following the provisions
  of FASB statement No. 142, &quot;Goodwill and Other Intangible Assets.&quot;&nbsp;
  Implementation of FAS No. 141 did not have a material impact on the Corporation's
  financial condition or results of operations.<br>
  <br>
  In July 2001, the FASB issued statement No. 142, &quot;Goodwill and Other Intangible
  Assets&quot; (&quot;FAS No. 142&quot;), which supersedes APB Opinion No. 17,
  &quot;Intangible Assets&quot; and is effective for fiscal years beginning after
  December 15, 2001.&nbsp; FAS No. 142 addresses how intangible assets acquired
  other than by business combination should be accounted for in financial statements
  upon their acquisition.&nbsp; This statement also addresses financial accounting
  and reporting for goodwill and other intangible assets subsequent to their acquisition.&nbsp;
  Additional provisions of FAS No. 142 include the reclassification of certain
  existing recognized intangibles to goodwill and reclassification of certain
  intangibles out of previously reported goodwill upon adoption.&nbsp; FAS No.
  142 requires that goodwill and other intangible assets with indefinite useful
  lives, including goodwill recorded in past business combinations, no longer
  be amortized, but instead</p>

<p><font size=3 face=Courier><br>
<br>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>9</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>March 31, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

<p><u><font size=3 face=Courier>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; New Accounting
  Pronouncements</font></u> (continued)</p>

<p><font size=3 face=Courier>be tested for impairment at least annually and written
  down and charged to results of operations only in the periods in which the recorded
  value is more than the estimated fair value.&nbsp; Intangible assets that have
  finite useful lives will continue to be amortized over their useful lives.&nbsp;
  This statement also requires the Corporation to complete a transitional goodwill
  impairment test by June 30, 2002, including the identification of reporting
  units for the purpose of assessing potential future impairments of goodwill.&nbsp;
  After identifying its reporting units, the Corporation must determine the carrying
  value of each reporting unit by assigning the assets and liabilities, including
  the existing goodwill and intangible assets to those reporting units and then
  determine the carrying value of each reporting unit.&nbsp; If the carrying value
  of any reporting unit exceeds its fair value, then detailed fair values for
  each of the assigned assets (excluding goodwill) and liabilities will be determined
  to calculate the amount of goodwill impairment, if any.&nbsp; Any transitional
  impairment loss resulting from the adoption of FAS No. 142 will be recognized
  as the effect of a change in accounting principle in the Corporation's income
  statement.<br>
  &nbsp;<br>
  FAS No. 142 requires disclosure of information about goodwill and other intangible
  assets in years subsequent to their acquisition which was not previously required,
  including changes in the carrying amount of goodwill from period to period,
  the carrying amount of intangible assets, and for assets subject to amortization,
  the estimated amortization expense for the next five years.&nbsp; As of January
  1, 2002, the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million, which would be subject to the transitional assessment provisions
  of FAS No. 142.&nbsp; In addition, management has reclassified an intangible
  asset previously recorded by an insurance subsidiary when acquiring the expiring
  list of policy holders from their joint-venture partner to goodwill.&nbsp; The
  customer list intangible was recorded by the Corporation's insurance subsidiary
  in August 2000 and has been amortized to a carrying amount of $718 thousand.&nbsp;
  Goodwill amortization expense was $230 thousand during the first quarter of
  2001, including amortization related to the insurance agency intangible.&nbsp;
  Goodwill represented basic and diluted earnings per share of $0.004 for the
  first three months of 2001.&nbsp; The elimination of goodwill amortization is
  expected to reduce other operating expenses by $922 thousand for 2002.&nbsp;
  Although the Corporation has not yet completed its transitional goodwill impairment
  testing, management's preliminary determination is that no impairment loss will
  be recognized.<br>
  &nbsp;&nbsp;&nbsp;&nbsp; <br>
  In June 2001, the FASB, issued statement No. 143, &quot;Accounting for Asset
  Retirement Obligations&quot; (&quot;FAS No. 143&quot;) which is effective for
  financial statements issued for fiscal years beginning after June 15, 2002.&nbsp;
  The statement addresses financial accounting and reporting for obligations associated
  with the retirement of tangible long-lived assets and associated asset retirement
  costs.&nbsp; FAS No. 143 requires that the fair value of a liability for an
  asset retirement obligation be recognized in the period in which it is incurred
  if a reasonable estimate of fair value can be made.&nbsp; </font></p>

<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  10<br clear=all>
  </font></p>

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  March 31, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

<p><u><font size=3 face=Courier>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; New Accounting
  Pronouncements</font></u> (continued)</p>

<p><font size=3 face=Courier> The associated asset retirement costs are capitalized
  as part of the carrying amount of the long-lived asset and subsequently allocated
  to expense over the asset's useful life.&nbsp; Implementation of FAS No. 143
  is not expected to have a material impact on the Corporation's financial condition
  or results of operations.<br>
  <br>
  Effective January 1, 2002, the Corporation adopted FASB statement No. 144, &quot;Accounting
  for the Impairment or Disposal of Long-Lived Assets&quot; (&quot;FAS No. 144&quot;)
  which requires that long-lived assets be reviewed for impairment whenever events
  or changes in circumstances, such as a significant decrease in the market value
  of an asset or the extent or manner in which an asset is used indicate that
  the carrying amount of an asset may not be recoverable.&nbsp; If there is an
  indication that the carrying amount of an asset may not be recoverable, future
  undiscounted cash flows expected to result from the use and disposition of the
  asset are estimated.&nbsp; If the sum of the expected cash flows is less than
  the carrying value of the asset, a loss is recognized for the difference between
  the carrying value and the market value of the asset.&nbsp; This statement also
  requires measurement of long-lived assets classified as held for sale at the
  lower of their carrying amount or fair value less cost to sell and to cease
  depreciation or amortization on these assets.&nbsp; Implementation of FAS No.
  144 did not have a material impact on the Corporation's financial condition
  or results of operations.<br>
  <br>
  In April 2002, the FASB issued statement No. 145, &quot;Recission of FASB Statement
  No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections&quot;
  (&quot;FAS No. 145&quot;).&nbsp; FAS No. 145 rescinds Statement No. 4, which
  required all gains and losses from extinguishment of debt to be aggregated and,
  if material, classified as an extraordinary item, net of related income tax
  effect.&nbsp; As a result, the criteria in Opinion 30 will now be used to classify
  those gains and losses.&nbsp; This statement also amends FASB Statement No.
  13 to require that certain lease modifications that have economic effects similar
  to sale-leaseback transactions be accounted for in the same manner as sale-leaseback
  transactions.&nbsp; This statement also makes technical corrections to existing
  pronouncements, which are not substantive but in some cases may change accounting
  practice.&nbsp; Implementation of FAS No. 145 is not expected to have a material
  impact on the Corporation's financial condition or results of operations.</font></p>
<p align="center"><font size=3 face=Courier> </font><font size=3 face=Courier>11<br>
  <br>
  </font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>
<p><font size=3 face=Courier>RESULTS
OF OPERATIONS<br>
<br>
<b>First Three Months of 2002 as Compared to the
First Three Months of 2001</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation (the
&quot;Corporation&quot;) including its subsidiaries.&nbsp; In addition to historical information, this discussion and
analysis contains forward-looking statements.&nbsp;
The forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements.&nbsp; Important factors that might cause such a
difference include, but are not limited to, those discussed in this
&quot;Management's Discussion and Analysis of Financial Condition and Results
of Operations.&quot;&nbsp; Readers are cautioned
not to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof.&nbsp; The Corporation undertakes no obligation to publicly revise or
update these forward-looking statements to reflect events or circumstances that
arise after the date hereof.<br>
<br>
Net income for the first three months of 2002 was $7.6 million reflecting a
decrease of $4.4 million compared to 2001 results of $12.0 million.&nbsp; Diluted earnings per share were $0.13 for
the first quarter of 2002 compared to $0.21 for the first quarter of 2001.&nbsp; The decrease in net income for the 2002
period was primarily the result of the one-time charge for the litigation
settlement previously described in Note 5 to the Consolidated Financial
Statements.&nbsp; This settlement resulted
from a lender liability action filed in 1994 against one of the Corporation's
subsidiary banks relating to a loan made prior to the company's acquisition of
that subsidiary.&nbsp; Net income excluding
gains on asset sales and the litigation settlement was $12.8 million for the
three months of 2002, representing an increase of 14% compared to $11.2 million
for 2001.&nbsp; Gains on the sale of assets
includes securities gains of $39 thousand and $205 thousand in 2002 and 2001,
respectively, as well as a $989 thousand gain on the sale of a branch and a
block of mortgages in 2001.&nbsp; Diluted
earnings per share for core earnings (earnings excluding securities
transactions, gains on asset sales and the litigation settlement) were $0.22
for the three months of 2002 compared to diluted earnings per share of $0.20
for the three months of 2001.&nbsp; Return on
average assets was 0.68% and return on average equity was 8.09% during the 2002
period, compared to 1.11% and 14.14%, respectively during the same period of
2001.&nbsp; Return on average assets and
return on average equity based on core earnings were 1.14% and 13.57%,
respectively for the first quarter of 2002 compared to 1.03% and 13.22%,
respectively for the first quarter of 2001.</font></p>

<p><font size=3 face=Courier><br>
<br>
  <br>
  </font></p>

<p align=center><font size=3
face=Courier>12</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<p><b><font size=3 face=Courier>First Three Months of 2002 as Compared to the
  First Three Months of 2001<br>
  </font></b>(continued)<br>
</p>
<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=271 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>For the Quarter<br>
  Ended March 31,</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>2002</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>2001</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>____</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>____</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><b><font size=3 face=Courier>Reconciliation of Core Earnings</font></b></p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>________________________________</font></p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Net
  income as reported</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>$ 7,638</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$12,023</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Non-core
  items (net of tax):</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gains on sale of assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 25</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 783</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Litigation settlement</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  5,200</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  net income</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>$12,813</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$11,240</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  basic earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.22</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.19</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  diluted earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.22</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.19</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.14%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.03%</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average equity</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 13.57%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 13.22%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>Net interest income, the most significant component
  of earnings, is the amount by which interest income generated from earning assets
  exceeds interest expense on liabilities.&nbsp; Net interest income was $38.0
  million for the three months of 2002 compared to $34.2 million for the same
  period of 2001.&nbsp; Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) was 3.82% for the three months
  of 2002 compared to 3.55% for the three months of 2001.&nbsp; The increase in
  net interest margin for the 2002 period compared to 2001 resulted primarily
  from deposit rate decreases that were greater than loan yield decreases compared
  to the 2001 period.&nbsp; The cost of deposits decreased by 139 basis points
  (1.39%) for the first three months of 2002 compared to the first three months
  of 2001, while loan yields decreased by 129 basis points (1.29%) over the same
  time period.&nbsp; The Corporation continues to manage interest rate risk and
  to expand its fee-based services to offset persistent pressure on net interest
  income.</font></p>

<p align="center"><font size=3
face=Courier> <br>
  <br>
  <br>
  <br>
  13</font></p>
<p align="center"><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS OF OPERATIONS (continued)</font><font size=3
face=Courier>&nbsp;</font></p>

<p><b><font size=3 face=Courier>First Three Months of 2002 as Compared to the
  First Three Months of 2001</font></b> <br>
  (continued)</p>

<p><font size=3 face=Courier> The following table shows the effect of changes
  in volumes and rates on interest income and interest expense.<br>
  <br>
  </font><font size=3 face=Courier>Analysis of Changes in Net Interest Income<br>
  </font><font size=3 face=Courier>(dollar amounts in thousands)</font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=331 colspan=3 valign=top>
  <p align=center><font size=3
  face=Courier>2002 Change from 2001<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  Change<br>
  ______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  to Volume<br>
  __________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  to Rate<br>
  __________</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Time deposits with banks</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;($&nbsp;&nbsp;&nbsp; 9)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 9</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;($&nbsp;&nbsp;
  18)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Securities</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (1,374)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,130</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (2,504)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Federal funds sold</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; (279)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; (268)</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (11)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (6,895)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,380</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (8,275)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  ______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest income</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (8,557)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,251</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(10,808)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities: </font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Deposits</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(10,736)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 558</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(11,294)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Short-term borrowings</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (1,759)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,513</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (3,272)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp; Long-term debt</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 128</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 179</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (51)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest expense</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(12,367)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,250</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(14,617)</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income</font></p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>$ 3,810</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 3,809</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;=======</font></p>
  </td>
 </tr>
 <tr>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=106 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>Interest
and fees on loans decreased $6.9 million for 2002 over 2001 levels and included
decreases in interest income due to rate of $8.3 million which were partially
offset by increases in interest income due to volume of $1.4 million.&nbsp; The total yield on loans for the first three
months of 2002 was 7.31%, compared to loan yields of 8.61% for the first three
months of 2001.&nbsp; Average loans for the
three months of 2002 increased $65.7 million compared to averages for the three
months of 2001 as increases in commercial loans and municipal loans were
partially offset by decreases in average consumer loans.</font></p>

<p><font size=3 face=Courier><br>
Interest income on investments decreased $1.4 million for the three months of
2002 compared to the corresponding period of 2001 as decreases in interest
income due to rate were only partially offset by increases in interest income
due to volume.&nbsp; Total yield on
investments was 6.14% for the first quarter of 2002 compared to 6.70% for the
first quarter of 2001.&nbsp; Decreases in
interest income due to rate for U.S. government agency securities were $1.5
million as yields on U.S. government agency securities decreased 54 basis points
(0.54%) for the 2002 period compared to 2001.&nbsp;
Average investments for the three months of 2002 included an increase of
$68.2 million for corporate bonds compared to 2001 averages.<br><br></font></p>

<p align="center"><font size=3 face=Courier>14</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS OF OPERATIONS (continued)</font><font size=3
face=Courier>&nbsp;</font></p>

<p><b><font size=3 face=Courier>First Three Months of 2002 as Compared to the
  First Three Months of 2001</font></b> <br>
  (continued)</p>

<p align=left><font size=3
face=Courier> Interest on deposits decreased $10.7 million for the 2002 period
  compared to 2001, as interest on total savings deposits decreased by $2.9 million
  and interest on time deposits decreased by $7.8 million for the three months
  of 2002 compared to 2001.&nbsp; Interest expense on deposits for the first quarter
  of 2002 reflected decreases due to rate of $11.3 million as the cost of total
  savings deposits decreased 127 basis points (1.27%) and the cost of time deposits
  decreased 144 basis points (1.44%) compared to costs for the first quarter of
  2001.&nbsp; Average deposits for the first three months of 2002 included decreases
  in average time deposits of $147.3 million which were partially offset by increases
  in average total savings deposits of $88.1 million over 2001 averages.<br>
  <br>
  Interest expense on short-term borrowings decreased $1.8 million for the three
  months of 2002 compared to the three months of 2001 as decreases in interest
  expense due to rate of $3.3 million were partially offset by increases in interest
  expense due to volume of $1.5 million compared to 2001 levels.&nbsp; The cost
  of short-term borrowings for the 2002 period decreased by 348 basis pints (3.48%)
  compared to 2001 costs of 5.35%.&nbsp; The average balance of short-term borrowings
  for the first quarter of 2002 increased by $114.0 million over averages for
  the first quarter of 2001.<br>
  <br>
  Interest expense on long-term debt increased $128 thousand for the three months
  of 2002 compared to the corresponding period of 2001 as a result of volume increases.&nbsp;
  Average long-term debt for the three months of 2002 increased by $12.7 million
  compared to 2001 averages as maturities were extended for short term borrowings
  from the Federal Home Loan Bank, to take advantage of lower interest rates.<br>
  <br>
  The provision for credit losses was $2.9 million for the three months of 2002
  compared to $2.4 million for the three months of 2001.&nbsp; Net charge-offs
  against the allowance for credit losses were $3.0 million in the 2002 period,
  reflecting an increase of $1.3 million compared to 2001 levels.&nbsp; <br>
  The 2002 period included increases in net charge-offs for commercial loans not
  secured by real estate of $1.1 million and increases in net charge-offs for
  consumer real estate loans of $130 thousand compared to 2001 net charge-offs.&nbsp;
  Net charge-offs as a percent of average loans outstanding were 0.12% for the
  first quarter of 2002 compared to 0.07% for the first quarter of 2001.&nbsp;
  The provision for credit losses as a percent of net charge-offs was 97.36% at
  March 31, 2002 compared to 144.22% at March 31, 2001.&nbsp; See the &quot;Credit
  Review&quot; section for an analysis of the quality of the loan portfolio.<br>
  <br>
  <br>
  <br>
  </font><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>15</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS OF OPERATIONS (continued)</font><font size=3
face=Courier>&nbsp;</font></p>

<p><b><font size=3 face=Courier>First Three Months of 2002 as Compared to the
  First Three Months of 2001</font></b> <br>
  (continued)</p>
<p><font size=3 face=Courier> Below is an analysis of the consolidated allowance
  for credit losses for the three month periods ended March 31, 2002 and 2001.<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=center><font size=3
  face=Courier>2002<br>
        ____</font></p>
    </td>
    <td width=115 valign=top>
      <p align=center><font size=3
  face=Courier>2001<br>
        ____</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td colspan=2 valign=top>
      <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>Balance January 1,</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>$34,157</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$33,601</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>Loans charged off:</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp; 1,231</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 217</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-construction&nbsp; </font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 171</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 238</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-residential</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;434&nbsp; </font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 322</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans to individuals&nbsp; </font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 1,199</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 1,057</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 144</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 115</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp; ______</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total loans charged off</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>$ 3,180</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp; $1,949</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>Recoveries of previously charged off loans:</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 34</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        66</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-construction</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-residential&nbsp; </font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        21</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans to individuals</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 147</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 188</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        5</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total recoveries</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 184</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 280</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Net charge offs</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 2,996</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 1,669</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>Provision charged to operations</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 2,917</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 2,407</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p><font size=3 face=Courier>Balance March 31,</font></p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>$34,078</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$34,339</font></p>
    </td>
  </tr>
  <tr>
    <td width=516 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=103 valign=top>
      <p align=right><font size=3
  face=Courier>=======</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;=======</font></p>
    </td>
  </tr>
</table>

<p><font size=3 face=Courier><br>
Net securities gains were $39 thousand during the first three months of 2002
compared to $205 thousand for the first three months of 2001.&nbsp; Securities gains during the three months of
2002 resulted primarily from the sale of fixed rate corporate bonds classified
as securities &quot;available for sale&quot; with a book value of $3.0
million.&nbsp; The securities gains during
2001 resulted primarily from sales and calls of fixed rate U.S. government
agency securities classified as securities &quot;available for sale&quot; with
a book value of $39.9 million.<br>
<br>
<br>
  </font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>16</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><font size=3 face=Courier> <b>First Three Months of 2002 as Compared to the
  First Three Months of 2001</b><br>
  (continued)</font></p>

<p><font size=3 face=Courier> Trust income for the first quarter of 2002 decreased
  $81 thousand compared to the first quarter of 2001 and included decreases in
  income from employee benefit accounts and personal trusts as market values declined.&nbsp;
  Service charges on deposits for the first three months of 2002 increased $112
  thousand compared to the first three months of 2001.&nbsp; Insurance commissions
  increased $201 thousand for the first quarter of 2002 compared to the first
  quarter of 2001, primarily as a result of increased annuity sales.&nbsp; Income
  from bank owned life insurance was $1.1 million for the first three months of
  2002 compared to $949 thousand for the first three months of 2001.&nbsp; The
  2002 period included an additional investment in bank owned life insurance of
  $5.0 million compared to 2001 levels.<br>
<br>
Other income for the first three months of 2002 was $2.5 million representing a
decrease of $1.1 million compared to $3.6 million reported for the first three
months of 2001.&nbsp; The decrease in other
income for the first quarter of 2002 compared to the first quarter of 2001 was
due in part to gains on sale of assets included in the 2001 period.&nbsp; The Corporation sold one of its branches
during the first quarter of 2001 which resulted in a gain of $777
thousand.&nbsp; The 2001 period also included
a gain of $212 thousand from the sale of $12.9 million of 30 year residential
mortgage loans with significant prepayment exposure during falling interest
rates.&nbsp; Other income for 2002 included
decreases in ATM fees compared to the corresponding period of 2001.&nbsp; Fee based revenue, such as insurance
commissions, mutual fund sales fees and investment management fees are expected
to be positively impacted in future periods as the Corporation's newly acquired
subsidiaries, Strategic Capital Concepts and Strategic Financial Advisors are
incorporated into the integrated advisory sales model utilized to integrate
products between the Corporation's bank, insurance and trust subsidiaries.&nbsp; Certified financial planners from the new
subsidiaries will also be included on the employee team used to deliver
products and services to commercial customers through our &quot;Total Solutions
Financial Management&quot; approach.<br>
<br>
Noninterest expense was $35.4 million for the three months of 2002 reflecting
an increase of $10.0 million over the 2001 level of $25.4 million, primarily as
a result of the previously described litigation settlement of $8.0 million
included in the 2002 period.&nbsp; Employee
costs were $14.6 million for the first three months of 2002, representing 1.31%
of average assets on an annualized basis compared to $13.7 million or 1.26% of
average assets on an annualized basis for 2001.&nbsp; Salary costs for the first quarter of 2002 increased $514
thousand or 4.8% compared to 2001 levels of $10.7 million.&nbsp; Employee benefit costs for the first three
months of 2002 reflected increases of $461 thousand over the first three months
of 2001 and included increases in health insurance costs and increases in
expenses of the Corporation's employee stock ownership plan and 401(k) plan compared
to the first three months of 2001.<br>
<br>
<br>
  </font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>17</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier> First Three Months of 2002 as Compared to the
  First Three Months of 2001</font></b> <br>
  (continued)</p>

<p><font size=3 face=Courier> As a result of the merger of the Corporation's banking
  subsidiaries, Southwest Bank and First Commonwealth Bank, which is expected
  to occur later this year, banking operations will be consolidated under First
  Commonwealth Bank.&nbsp; This change will provide banking clients with greater
  flexibility, efficiency and seamless service throughout our market-area.&nbsp;
  As a result of this merger, there will be a consolidation of support functions
  with some staff positions being eliminated.&nbsp; The personnel within the branches
  and relationship managers in the corporate services will continue to serve in
  the same manner.&nbsp; This move will affect 50 employees at Southwest Bank.&nbsp;
  Employees were notified on April 25 and will continue to work in their current
  positions for at least 60 more days.&nbsp; During this time, they will also
  have the opportunity to seek other positions within the Corporation.&nbsp; Those
  employees who do leave after this period will receive liberal separation packages
  based on years of service.&nbsp; A one-time charge for the cost of the separation
  package is expected in 2002.&nbsp; In subsequent years a cost savings will be
  recognized.&nbsp; While the financial impact is not immediately determinable,
  it is expected to be positive and will be quantified during the next 90 days.<br>
<br>
Furniture and equipment expenses of $2.4 million for the first three months of
2002 reflected increases of $272 thousand over 2001 levels and included
increases in computer software depreciation and software maintenance of $231
thousand and $181 thousand, respectively, primarily related to the upgrade of
the core banking software.&nbsp; Increases in
computer software depreciation and maintenance costs for the 2002 period
compared to 2001 were partially offset by decreases in outside data processing
costs over the same time period.&nbsp;
Outside data processing expense decreased $325 thousand for the first
quarter of 2002 compared to the first quarter of 2001 and was positively
impacted by the conversion of Southwest Bank from outsourced processing to that
provided by a subsidiary of the Corporation. <br>
Accounting changes from the adoption of FAS No. 142 resulted in a decrease of
$230 thousand of goodwill amortization for the first three months of 2002 compared
to the first three months of 2001.&nbsp;
Under the new pronouncement goodwill amortization was discontinued
effective January 1, 2002.<br>
<br>
Other operating expenses for the 2002 period were $7.1 million reflecting an
increase of $1.3 million over the 2001 amount of $5.8 million.&nbsp; The first three months of 2002 included
increases in legal fees, loss on sale of assets, and telephone expenses of $106
thousand, $343 thousand and $120 thousand, respectively compared to 2001
levels.&nbsp; Other professional fees for the
first quarter of 2002 reflected increases of $372 thousand over the first
quarter of 2001 and included consulting fees related to implementation of the
Corporation's &quot;Balanced Scorecard&quot; performance measurement system,
enhancements to product and customer profitability systems and corporate
restructuring.&nbsp; Promotion expense for
the first three months of 2002 reflected an increase of $453 thousand compared
to the first three months of 2001, due in part to expenses incurred in the
successful marketing campaign for free checking products introduced during
2002.<br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>18</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align="center"><font size=3 face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier> First Three Months of 2002 as Compared to the
  First Three Months of 2001</font></b> <br>
  (continued)</p>

<p><font size=3 face=Courier> These products are expected to have a favorable
  impact on deposit costs and service charge revenue in future periods as well
  as providing potential add on sales of other financial products and services.<br>
<br>
Income tax expense was $433 thousand for the first three months of 2002
compared to $3.6 million for the first three months of 2001.&nbsp; The Corporation's effective tax rate was
5.4% for the 2002 period compared to 23.1% for the corresponding period of
2001.&nbsp; Income tax expense for the 2002
period included the $2.8 million tax benefit resulting from the previously
described litigation settlement.&nbsp; The
Corporation's effective tax rate for the 2002 period, excluding this one time charge
was 20.1%.<br>
<br>
<u>LIQUIDITY<br>
<br>
</u>Liquidity is a measure of the Corporation's ability to efficiently meet
normal cash flow requirements of both borrowers and depositors.&nbsp; In the ordinary course of business, funds
are generated from deposits (primary source) and the maturity or repayment of
earning assets, such as securities and loans.&nbsp;
As an additional secondary source, short-term liquidity needs may be
provided through the use of overnight Federal funds purchased, borrowings
through the use of lines available for repurchase agreements and borrowings
from the Federal Reserve Bank.&nbsp;
Additionally, the banking subsidiaries are members of the Federal Home
Loan Bank and may borrow under overnight and term borrowing arrangements.&nbsp; The sale of earning assets may also provide
an additional source of liquidity.<br>
<br>
The Corporation monitors liquidity through regular computations of prescribed
liquidity ratios.&nbsp; The Corporation
actively manages liquidity within a defined range and has developed liquidity
contingency plans, including ensuring availability of alternate funding sources
to maintain liquidity under a variety of business conditions.&nbsp; In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.<br>
<br>
Net loans increased $20.1 million in the first three months of 2002 as
increases in commercial loans, municipal loans and loans to individuals were
partially offset by decreases in residential real estate loans.&nbsp; Total deposits increased $11.4 million for
the first three months of 2002 as increases in time deposits of $42.7 million
and total savings deposits of $8.0 million were partially offset by decreases
in demand deposits of $39.3 million compared to year-end 2001.&nbsp; Time deposits for the first three months of
2002 were primarily in rising rate certificates of deposits offered for a
limited time during 2002.&nbsp; The
Corporation's commitment to competitive product offerings combined with greater
flexibility and enhanced delivery systems resulting from the replacement of the
deposit software during 2001 should continue to have a favorable impact on the
deposit base. <br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>19</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier>LIQUIDITY (continued)</font></p>

<p><font size=3 face=Courier>Marketable
securities that the Corporation holds in its investment portfolio are an
additional source of liquidity. These securities are classified as
&quot;securities available for sale&quot; and while the Corporation does not
have specific intentions to sell these securities, they have been designated as
&quot;available for sale&quot; because they may be sold for the purpose of
obtaining future liquidity, for management of interest rate risk or as part of
the implementation of tax management strategies.&nbsp; As of March 31, 2002, securities available for sale had an
amortized cost of $1,428.2 million and an approximate fair value of $1,437.3
million.<br>
<br>
<b>Interest Sensitivity</b><br>
<br>
The objective of interest rate sensitivity management is to maintain an appropriate
balance between the stable growth of income and the risks associated with
maximizing income through interest sensitivity imbalances.&nbsp; While no single number can accurately
describe the impact of changes in interest rates on net interest income, interest
rate sensitivity positions, or &quot;gaps&quot;, when measured over a variety
of time periods, may be helpful.<br>
<br>
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.&nbsp; If interest-sensitive assets
(&quot;ISA&quot;) exceed interest-sensitive liabilities (&quot;ISL&quot;)
during the prescribed time period, a positive gap results.&nbsp; Conversely, when ISL exceed ISA during a
time period, a negative gap results.<br>
<br>
A positive gap tends to indicate that earnings will be impacted favorably if
interest rates rise during the period and negatively when interest rates fall
during the time period.&nbsp; A negative gap
tends to indicate that earnings will be affected inversely to interest rate
changes.&nbsp; In other words, as interest
rates fall, a negative gap should tend to produce a positive effect on
earnings, and when interest rates rise, a negative gap should tend to affect
earnings negatively.<br>
<br>
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.&nbsp; The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.<br>&nbsp; </font></p>

<p align=center><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  20</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>LIQUIDITY
(continued)</font></p>

<p><font size=3 face=Courier> <b>Interest Sensitivity</b><br>
<br>
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of March 31,
2002 and December 31, 2001.<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center><font size=2
  face=Courier>March
  31, 2002<br>
  ______________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>0-90<br>
  Days<br>
  _____</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>91-180<br>
  Days<br>
  ______</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>181-365<br>
  Days<br>
  ________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>Cumulative<br>
  0-365 Days<br>
  ___________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=97 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Loans </font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;&nbsp;$886,824</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$160,749</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$289,173</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;$1,336,746</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Investments </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;136,679</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;114,686</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;145,643</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;397,008</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other interest-earning assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 3,429</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 3,429</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive assets</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,026,932</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;275,435</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;434,816</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,737,183</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Certificates of deposit </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 388,420</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;273,563</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;392,366</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,054,349</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other deposits</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>1,098,118</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,098,118</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Borrowings</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 341,800</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 750</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 342,550</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive<br>&nbsp;&nbsp; liabilities</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  1,828,338</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;273,563</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;393,116</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  2,495,017</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap. </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;($801,406)</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp; 1,872</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$
  41,700</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;($757,834)</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;==========</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>ISA/ISL </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; &nbsp;&nbsp;&nbsp;0.56</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.01</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.11</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.70</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap/Total Assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 17.68%</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.04%</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.92%</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 16.72%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier> <br>
  <br>
  <br>
  </font></p>

<p align=center><font size=3
face=Courier>21<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity </font></b>(continued)</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center><font size=2
  face=Courier>December
  31, 2001<br>
  __________________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>0-90<br>
  Days<br>
  _____</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>91-180<br>
  Days<br>
  ______</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>181-365<br>
  Days<br>
  ________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>Cumulative<br>
  0-365 Days<br>
  ___________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=97 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Loans</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;$&nbsp; 839,279</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$155,276</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$276,760</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;$1,271,315</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Investments</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 154,327</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 90,890</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;180,001</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;425,218</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 4,250</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 4,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 997,856</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;246,166</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;456,761</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,700,783</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Certificates of deposit</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 329,825</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;284,518</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;407,188</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,021,531</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other deposits </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>1,090,160</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,090,160</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Borrowings </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 430,189</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 350</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 750</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 431,289</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive<br>&nbsp;&nbsp; Liabilities </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  1,850,174</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;284,868</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;407,938</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  2,542,980</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;($852,318)</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$
  (38,702)</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$
  48,823</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;($842,197)</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;==========</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>ISA/ISL</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.54</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 0.86</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.12</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.67</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap/Total Assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 18.60%</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.84%</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.07%</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 18.37%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>Although
the periodic gap analysis provides management with a method of measuring
current interest rate risk, it only measures rate sensitivity at a specific
point in time.&nbsp; Therefore, to more
precisely measure the impact of interest rate changes on the Corporation's net
interest income, management simulates the potential effects of changing
interest rates through computer modeling.&nbsp;
The income simulation model used by the Corporation captures all assets,
liabilities and off-balance sheet financial instruments, accounting for
significant variables that are believed to be affected by interest rates.&nbsp; These variables include prepayment speeds on
mortgage loans and mortgage backed securities, cash flows from loans, deposits
and investments and balance sheet growth assumptions.&nbsp; The model also captures embedded options, such as interest rate
caps/floors or call options, and accounts for changes in rate relationships as
various rate indices lead or lag changes in market rates.&nbsp; The Corporation is then better able to
implement strategies which would include an acceleration of a deposit rate
reduction or lag in a deposit rate increase.&nbsp;
The repricing strategies for loans would be inversely related.<br>
<br>
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve month period.&nbsp; Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors.&nbsp;
Additional simulations are produced estimating the impact on net
interest income of a 300 basis point (3.00%) movement upward or downward from
the base case scenario.&nbsp; The
Corporation's</font></p>

<p align=center><font size=3
face=Courier><br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>22</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity </font></b>(continued)</p>

<p><font size=3 face=Courier>current asset/liability management policy indicated
  that a 300 basis point (3.00%) change in interest rates up or down cannot result
  in more than a 7.5% change in net interest income when compared to a base case,
  without Board approval and a strategy in place to reduce interest rate risk
  below the established maximum level.&nbsp; The analysis at March 31, 2002 indicated
  that a 300 basis point (3.00%) movement in interest rates in either direction
  over the next twelve months would not have a significant impact on the Corporation's
  anticipated net interest income over that time frame and the Corporation's position
  would remain well within current policy guidelines.<br>
  <br>
  The Corporation's &quot;Asset/Liability Management Committee&quot; (&quot;ALCO&quot;)
  is responsible for the identification, assessment and management of interest
  rate risk exposure, liquidity, capital adequacy and investment portfolio position.&nbsp;
  The primary objective of the ALCO process is to ensure that the Corporation's
  balance sheet structure maintains prudent levels of risk within the context
  of currently known and forecasted economic conditions and to establish strategies
  which provide the Corporation with appropriate compensation for the assumption
  of those risks.&nbsp; The ALCO attempts to mitigate interest rate risk through
  the use of strategies such as asset disposition, asset and liability pricing
  and matched maturity funding.&nbsp; The ALCO strategies are established by the
  Corporation's senior management and are approved by the Corporation's board
  of directors.<br>
  <br>
  <u>CREDIT REVIEW</u><br>
  <br>
  The following table identifies amounts of loan losses and nonperforming loans.&nbsp;
  Past due loans are those which were contractually past due 90 days or more as
  to interest or principal payments but are well secured and in the process of
  collection.&nbsp; Renegotiated loans are those which terms have been renegotiated
  to provide a reduction or deferral of principal or interest as a result of deteriorating
  financial position of the borrower and are in compliance with the restructured
  terms.<br>
  <br>
  </font></p>
<p>&nbsp;</p>
<p align="center"><font size=3 face=Courier> 23</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity </font></b>(continued)</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=238 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>At March 31,<br>
  _____________</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>2002<br>
  ____</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>2001<br>
  _____</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=238 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td width=110 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans on nonaccrual basis</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 24,589</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 9,447</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Past due loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 15,594</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 21,751</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Renegotiated loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 827</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; </font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>__________</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total Nonperforming Loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 41,010</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 33,448</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>==========</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Other real estate owned</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 2,106</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1,475</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans outstanding at end of period</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$2,587,925</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$2,502,629</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Average loans outstanding (year-to-date)</font></p>
  </td>
    <td width=110 valign=top>
      <p><font size=3 face=Courier>&nbsp;$2,568,911</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$2,503,187</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Nonperforming loans as percent of total
  loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.58%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.34%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Provision for credit losses</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 2,917</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 2,407</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Net charge-offs</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 2,996</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 1,669</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Net charge-offs as percent of average<br>&nbsp;&nbsp;&nbsp; loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 0.12%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 0.07%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Provision for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of net charge-offs</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 97.36%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;<br>&nbsp; 144.22%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent<br>&nbsp;&nbsp;&nbsp; of average loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.33%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 1.37%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of end-of-period loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.32%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 1.37%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of nonperforming loans </font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 83.10%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp; 102.66%</font></p>
  </td>
 </tr>
</table>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>The
Corporation considers a loan to be impaired when, based on current information
and events, it is probable that the Corporation will be unable to collect
principal or interest due according to the contractual terms of the loan.&nbsp; Loan impairment is measured based on the
present value of expected cash flows discounted at the loan's effective
interest rate or, as a practical expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral dependent.&nbsp; Payments received on impaired loans are
applied against the recorded investment in the loan.&nbsp; For loans other than those that the Corporation expects repayment
through liquidation of the collateral, when the remaining recorded investment
in the impaired loan is less than or equal to the present value of the expected
cash flows, income is recorded on a cash basis.&nbsp; Impaired loans include loans on a nonaccrual basis and
renegotiated loans.</font></p>

<p align=center><font size=3
face=Courier>24</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier> <u>CREDIT REVIEW</u> (continued)</font></p>

<p><font size=3 face=Courier>The following table identifies impaired loans, and
  information regarding the relationship of impaired loans to the reserve for
  credit losses at March 31, 2002 and March 31, 2001.</font><font size=3 face=Courier><br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>2002<br>
  ____</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>2001<br>
  _____</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=2
  face=Courier>(amounts
  in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Recorded investment in impaired loans at end of
  period</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$25,416</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$11,697</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date average balance of impaired loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$24,532</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$12,171</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Allowance for credit losses related to impaired
  loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$ 4,480</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$ 2,373</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with an allocation of the allowance
  for <br>&nbsp; credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $13,816</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 3,730</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with no allocation of the allowance
  for<br>&nbsp; credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $11,600</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 7,967</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date income recorded on impaired loans on
  a cash basis</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 134</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 194</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>Other
than those described above, there are no material credits that management has
serious doubts as to the borrower's ability to comply with the present loan
repayment terms.&nbsp; Additionally, the
portfolio is well diversified and as of March 31, 2002, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at March 31, 2002 increased $7.6 million compared to March
31, 2001 levels as increases in nonaccrual loans were only partially offset by
decreases in past due loans and renegotiated loans.&nbsp; The increase in nonaccrual loans compared to 2001 levels resulted
primarily because of the inclusion of two loans during the third quarter of
2001.&nbsp; One is a $6.5 million credit that
is not past due and carries an 80% guaranty of a U.S. governmental agency but
is experiencing cash flow difficulties and has therefore been placed in
nonaccrual status.&nbsp; A resolution of this
credit is expected in the third quarter of 2002.&nbsp; The second credit, which was $5.9 million at year-end 2001,
continues to be resolved through liquidation of collateral and other
remedies.&nbsp; The balance outstanding at
March 31, 2002 related to this credit is $4.6 million.&nbsp; The Corporation anticipates final resolution
of this credit during 2002 without additional losses in excess of amounts
currently reserved.&nbsp; Nonperforming loans
at March 31, 2002 reflected a decrease of $502 thousand compared to December
31, 2001 levels.&nbsp; Nonperforming loans as
a percent of total loans was 1.58% at March 31, 2002 compared to 1.62% at
December 31, 2001, and 1.34% at March 31, 2001, while the allowance for credit
losses as a percent of nonperforming loans was 83.10%, 82.28% and 102.66%,
respectively for the same periods.&nbsp; Past
due loans as of March 31, 2002 reflected decreases in all loan categories
compared to March 31, 2001 levels.<br>&nbsp;<br><br></font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>25</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier> <u>CREDIT REVIEW</u> (continued)</font></p>

<p><font size=3 face=Courier>The Corporation's loan portfolio continues to be
  monitored by senior management to identify potential portfolio risks and detect
  potential credit deterioration in the early stages.&nbsp; Committees formed
  during 2001 for the purpose of reviewing watchlist credits for workout progress
  or deterioration and monitoring loan loss adequacy and the status of significant
  nonperforming credits continue to provide additional internal monitoring and
  analysis in addition to that provided by the credit committees of the banks
  and parent company.&nbsp; Credit risk is mitigated during the loan origination
  process through the use of sound underwriting policies and collateral requirements.&nbsp;
  The Corporation also requires an additional level of approval for credit relationships
  between $500 thousand and $1.0 million.&nbsp; This procedure requires approval
  of those credits by a committee consisting of senior lenders of the Corporation.&nbsp;
  Management also attempts to minimize loan losses by analyzing and modifying
  collection techniques on a periodic basis.&nbsp; The Corporation feels that
  the allowance for credit losses is adequate at this time.&nbsp; The uncertain
  economic conditions present a risk to the industry, but management feels that
  its risk management process is thorough and serves as an early warning system
  so that an appropriate response will be promptly implemented.<br>
  <u><br>
  CAPITAL RESOURCES<br>
  </u><br>
  Equity capital decreased $1.8 million in the first three months of 2002.&nbsp;
  Dividends declared reduced equity by $8.8 million during the 2002 period.&nbsp;
  Dividends declared exceeded earnings for the first quarter of 2002, primarily
  as a result of the one-time litigation settlement included in earnings for the
  first quarter.&nbsp; The Corporation's capital base remains strong and the one-time
  charge will not impact the Corporation's ability to fund future growth and expansion.&nbsp;
  Payments by the Corporation's Employee Stock Ownership Plan (the &quot;ESOP&quot;)
  to reduce debt it incurred to acquire the Corporation's common stock for future
  distribution as employee compensation, net of fair value adjustments to Unearned
  ESOP shares, increased equity by $268 thousand.&nbsp; Amounts paid to fund the
  discount on reinvested dividends reduced equity by $157 thousand.&nbsp; The
  market value adjustment to securities available for sale decreased equity by
  $2.8 million.&nbsp; Proceeds from the reissuance of treasury shares to fund
  stock options exercised increased equity by $1.2 million during 2002.&nbsp;
  Equity capital during 2002 also reflected an increase of $812 thousand from
  the reissuance of treasury shares to fund first quarter acquisitions.<br>
  <br>
  A capital base can be considered adequate when it enables the Corporation to
  intermediate funds responsibly and provide related services, while protecting
  against future uncertainties.&nbsp; The evaluation of capital adequacy depends
  on a variety of factors, including asset quality, liquidity, earnings history
  and prospects, internal controls and management caliber.&nbsp; In consideration
  of these factors, management's primary emphasis with respect to the Corporation's
  capital position is to maintain an adequate and stable ratio of equity to assets.</font></p>

<p><font size=3 face=Courier><br>
  </font><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>26</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><u><font size=3 face=Courier>CAPITAL
RESOURCES</font></u> (continued)</p>

<p><font size=3 face=Courier>The Federal Reserve Board has issued risk-based capital
  adequacy guidelines which are designed principally as a measure of credit risk.&nbsp;
  These guidelines require:&nbsp; (1) at least 50% of a banking organization's
  total capital be common and other &quot;core&quot; equity capital (&quot;Tier
  I Capital&quot;); (2) assets and off-balance-sheet items be weighted according
  to risk; (3) the total capital to risk-weighted assets ratio be at least 8%;
  and (4) a minimum leverage ratio of Tier I capital to average total assets.&nbsp;
  The minimum leverage ratio is not specifically defined, but is generally expected
  to be 3-5 percent for all but the most highly rated banks, as determined by
  a regulatory rating system.<br>
  <br>
  The table below presents the Corporation's capital position at March 31, 2002:<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>Amount<br>
  (in thousands)</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>Percent<br>
  of Adjusted<br>
  Assets</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>$389,010</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;12.9%</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
    <td width=156 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;120,459 </font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;4.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;423,088</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>14.1</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;240,918</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;389,010</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.6</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement </font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;135,957</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;3.0</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>At March 31, 2002, the Corporation's banking subsidiaries
  are considered well capitalized as defined by the Federal Deposit Insurance
  Corporation Improvement Act of 1991.</font></p>

<p>&nbsp;</p>
<p><font size=3 face=Courier>ITEM 3.&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK</font></p>

<p><font size=3 face=Courier>Information appearing in Item 2 of this report under
  the caption &quot;Interest Sensitivity&quot; is incorporated by reference in
  response to this item.</font></p>

<p><font size=3 face=Courier> <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>

<p align=center><font size=3
face=Courier>27</font></p>

<font size=3 face=Courier><br
clear=all>
</font>
<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>PART II - OTHER INFORMATION<br>
  </font></p>

<p><font size=3 face=Courier>&nbsp;</font><font size=3 face=Courier>ITEM 1.&nbsp;&nbsp;LEGAL
  PROCEEDINGS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; There were no material legal
  proceedings to which the Corporation<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or its subsidiaries are a
  party, or of which any of their<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; property is the subject, except
  proceedings which arise in the<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; normal course of business
  and, in the opinion of management, will<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; not have a material adverse
  effect on the consolidated operations<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or financial position of the
  Corporation and its subsidiaries.<br>
  &nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; See NOTE 5 to the consolidated
  financial statements for<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; additional information related
  to the litigation settlement<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; included in results of operations
  for the first quarter of 2002.</font></p>

<p><font size=3 face=Courier>ITEM 2.&nbsp;&nbsp;&nbsp;CHANGES IN SECURITIES</font></p>

<p><font size=3 face=Courier> &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 3.&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 4.&nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO
  A VOTE OF SECURITY HOLDERS</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 5.&nbsp;&nbsp;&nbsp;OTHER INFORMATION</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 6.&nbsp;&nbsp;&nbsp;EXHIBITS AND REPORTS ON
  FORM 8-K</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=3 face=Courier>(a)&nbsp;Exhibits<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </font><font size=3 face=Courier>None</font></p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=3 face=Courier>(b)&nbsp;Reports
  on Form 8-K<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=3 face=Courier>None<br>
  <br>
  </font></p>

<p align=center><font size=3
face=Courier> <br>
  <br></font></p>

<p align=center><font size=3
face=Courier>28</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  SIGNATURES</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.<br>
<br>
  <br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION<br>
  </font><font size=3
face=Courier>(Registrant)</font></p>

<p><font size=3 face=Courier><br>
  DATED:&nbsp; MAY 14, 2002&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;/S/Joseph E. O'Dell</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  ____________________________________<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Joseph E. O'Dell, President and<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Chief Executive Officer</font></p>

<p><font size=3 face=Courier>DATED:&nbsp; May 14, 2002&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;/S/John J. Dolan</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  _____________________________________<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  John J. Dolan, Executive Vice<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  President and Chief Financial Officer</font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier><br>
  <br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>29</font></p>

<p align=center><font size=3
face=Courier>&nbsp;</font></p>



</body>

</html>
[{"type": "10-Q", "sequence": "1", "filename": "final10q302.htm", "description": "MARCH 31, 2002 10Q", "secsgml_size_bytes": 244433}]
{"company-data": {"conformed-name": "FIRST COMMONWEALTH FINANCIAL CORP /PA/", "cik": "0000712537", "assigned-sic": "6021", "irs-number": "251428528", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-11138", "film-number": "02652956"}, "business-address": {"street1": "OLD COURTHOUSE SQUARE", "street2": "22 N SIXTH ST", "city": "INDIANA", "state": "PA", "zip": "15701", "phone": "7243497220"}, "mail-address": {"street1": "22 NORTH SIXTH STREET", "street2": "P.O. BOX 400", "city": "INDIANA", "state": "PA", "zip": "15701"}}
Common
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13
  OR 15(d) OF THE SECURITIES
EXCHANGE ACT
  OF 1934
For the quarterly period ended March 31, 2002
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
  OF THE SECURITIES
EXCHANGE ACT
  OF 1934
For the transition period from _______
  to _______
Commission File Number
0-11242
First Commonwealth Financial Corporation         
    _
(Exact name
  of registrant as specified in its charter)
Pennsylvania              
                       
       25-1428528
(State or other jurisdiction of       
            (I.R.S. Employer
incorporation or organization)       
             Identification
  No.)
22 North Sixth Street                          Indiana,
PA  15701
(Address of principal executive offices)                        (Zip Code)
724-349-7220
(Registrant's telephone
number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate
a check mark whether the registrant(1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
May 3, 2002 was 58,704,143.
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1
.   FINANCIAL STATEMENTS
Included in Part I of this
  report:              
         PAGE
First Commonwealth Financial
  Corporation and
Subsidiaries Consolidated Balance Sheets . . .     3
Consolidated Statements of Income. . . . . . .     4
Consolidated Statements of Changes in
Shareholders' Equity. . . . . . . . . . .   
   5
Consolidated Statements of Cash Flows. . . . .     6
Notes to Consolidated Financial Statements . .     7
ITEM 2
.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . .     12
ITEM 3
.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK . . . . . . .
  . . . . . . . . . . . . .     27
PART II - OTHER INFORMATION
Other Information . . . . . . . . . . . . . . . . . . . . . .
28
Signatures. . . . . . . . . . . . .
  . . . . . .Signature Page
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
March 31,
2002
December 31,
2001
________
__________
ASSETS
Cash and due from banks on demand .
        . . . . . . . . . . . . .
$   60,686
$    98,130
Interest-bearing deposits with banks.
        . . . . . . . . . . . .
1,279
4,250
Federal funds sold. . . . . . . . .
        . . . . . . . . . . . . .
2,150
-0-
Securities available for sale, at market.
        . . . . . . . . . .
1,437,306
1,469,118
Securities held to maturity, at cost,
(Market value $283,951 in 2002
and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . .
279,595
293,290
Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . .
2,589,053
2,569,231
Unearned income . . . .
        . . . . . . . . . . . . . . . . . .
(1,128)
(1,297)
Allowance for credit losses
        . . . . . . . . . . . . . . . .
(34,078)
(34,157)
__________
__________
Net loans .
        . . . . . . . . . . . . . . . . . . . . . . .
2,553,847
2,533,777
Property and equipment. . . . . . .
        . . . . . . . . . . . . .
46,563
46,418
Other real estate owned . . . . . .
        . . . . . . . . . . . . .
2,106
1,619
Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . .
8,141
6,539
Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . .
112
232
Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . .
141,848
130,157
__________
__________
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .
$4,533,633
$4,583,530
==========
==========
LIABILITIES
Deposits (all domestic):
Noninterest bearing . .
        . . . . . . . . . . . . . . . . . .
$  373,405
$   412,695
Interest bearing. . . .
        . . . . . . . . . . . . . . . . . .
2,731,148
2,680,455
__________
__________
Total deposits.
        . . . . . . . . . . . . . . . . . . . . .
3,104,553
3,093,150
Short-term borrowings . . . . . . .
        . . . . . . . . . . . . .
341,985
427,736
Other liabilities . . . . . . . . .
        . . . . . . . . . . . . .
36,989
28,358
Company obligated mandatorily redeemable
        capital
securities of subsidiary trust. . . . . . . . . . .
        . . . .
35,000
35,000
Other long-term debt. . . . . . . .
        . . . . . . . . . . . . .
646,858
629,220
__________
__________
Total long-term
        debt. . . . . . . . . . . . . . . . . . .
681,858
664,220
__________
__________
Total liabilities
        . . . . . . . . . . . . . . . . . . . .
4,165,385
4,213,464
SHAREHOLDERS' EQUITY
Preferred stock, $1 par value per
        share,
3,000,000 shares authorized, none issued . . . . .
        . . . .
-0-
-0-
Common stock, $1 par value per share,
100,000,000 shares authorized, 62,525,412
shares issued; 58,641,160 and 58,451,624
shares outstanding at March 31, 2002 and
December 31, 2001 respectively. . . . . . . . . . .
        . . . .
62,525
62,525
Additional paid-in capital. . . . .
        . . . . . . . . . . . . .
65,667
66,176
Retained earnings . . . . . . . . .
        . . . . . . . . . . . . .
287,062
288,219
Accumulated other comprehensive income.
        . . . . . . . . . . .
5,890
8,703
Treasury stock (3,884,252 shares at
        March 31, 2002 and
4,073,788 at December 31, 2001, at cost). . . . . .
        . . . .
(49,038)
(51,431)
Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . .
(3,858)
(4,126)
__________
__________
Total shareholders'
        equity. . . . . . . . . . . . . . . .
368,248
370,066
__________
__________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . .
$4,533,633
$4,583,530
==========
==========
The accompanying notes are an integral
  part of these consolidated financial statements.
3
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
For the
  Quarter
Ended March 31,
________________
2002
2001
_____
_____
Interest Income
Interest and fees on loans . . . . .
        . . . . . . . . . . . . .
$45,327
$52,222
Interest
  and dividends on investments:
Taxable interest . . . .
        . . . . . . . . . . . . . . . . . .
22,238
23,331
Interest exempt from Federal
        income taxes. . . . . . . . . .
2,392
2,371
Dividends. . . . . . . .
        . . . . . . . . . . . . . . . . . .
552
854
Interest on Federal funds sold . . .
        . . . . . . . . . . . . .
3
282
Interest on bank deposits. . . . . .
        . . . . . . . . . . . . .
11
20
_______
______
Total interest
        income. . . . . . . . . . . . . . . . . . .
70,523
79,080
Interest
  Expense
Interest on deposits . . . . . . . .
        . . . . . . . . . . . . .
21,321
32,057
Interest on short-term borrowings. .
        . . . . . . . . . . . . .
1,765
3,524
Interest
  on company obligated mandatorily redeemable capital
securities of subsidiary trust . . . . . . . . . .
        . . . . .
831
831
Interest on other long-term debt . .
        . . . . . . . . . . . . .
8,564
8,436
______
______
Total interest
        on long-term debt . . . . . . . . . . . . .
9,395
9,267
______
______
Total interest
        expense . . . . . . . . . . . . . . . . . .
32,481
44,848
______
_______
Net Interest
  Income
38,042
34,232
Provision for credit losses. . . . .
        . . . . . . . . . . . . .
2,917
2,407
______
_______
Net interest income after provision for
        credit losses. . .
35,125
31,825
Other Income
Securities gains . . . . . . . . . .
        . . . . . . . . . . . . .
39
205
Trust income . . . . . . . . . . . .
        . . . . . . . . . . . . .
1,213
1,294
Service charges on deposit accounts.
        . . . . . . . . . . . . .
2,693
2,581
Insurance commissions. . . . . . . .
        . . . . . . . . . . . . .
856
655
Income from bank owned life insurance.
        . . . . . . . . . . . .
1,069
949
Other income . . . . . . . . . . . .
        . . . . . . . . . . . . .
2,519
3,583
______
______
Total other
        income . . . . . . . . . . . . . . . . . . . .
8,389
9,267
Other
  Expenses
Salaries and employee benefits . . .
        . . . . . . . . . . . . .
14,643
13,669
Net occupancy expense  . . . .
        . . . . . . . . . . . . . . . .
1,686
1,777
Furniture and equipment expense. . .
        . . . . . . . . . . . . .
2,398
2,126
Data processing expense. . . . . . .
        . . . . . . . . . . . . .
442
767
Pennsylvania shares tax expense. . .
        . . . . . . . . . . . . .
995
941
Goodwill amortization. . . . . . . .
        . . . . . . . . . . . . .
-0-
230
Intangible amortization. . . . . . .
        . . . . . . . . . . . . .
120
123
Litigation settlement. . . . . . . .
        . . . . . . . . . . . . .
8,000
-0-
Other operating expenses . . . . . .
        . . . . . . . . . . . . .
7,159
5,823
_______
_______
Total other
        expenses . . . . . . . . . . . . . . . . . . .
35,443
25,456
_______
_______
Income before income taxes
. . . . . . . . . . . . . . . .
8,071
15,636
Applicable income taxes . . . . . .
        . . . . . . . . . . . . . .
433
3,613
_______
________
Net income. . . . . . . . . . . . . . .
        . . . . . . . . .
$ 7,638
$12,023
=======
========
Average Shares Outstanding  . . . . .
        . . . . . . . . . . . . . .
58,142,359
57,721,959
Average Shares Outstanding Assuming Dilution
        . . . . . . . . . .
58,484,806
57,802,012
Per Share Data:
Basic earnings per share. . . . . .
        . . . . . . . . . . . . . .
$ 0.13
$ 0.21
Diluted earnings per share. . . . .
        . . . . . . . . . . . . . .
$ 0.13
$ 0.21
Cash dividends per share. . . . . .
        . . . . . . . . . . . . . .
$0.150
$0.145
The accompanying notes are an integral part of these
consolidated financial statements.
4
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
  EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
______
Additional
Paid-In
Capital
_________
Retained
Earnings
________
Accumulated
Other
Comprehensive
Income
_____________
Treasury
Stock
________
Unearned
ESOP
Shares
______
Total
Shareholders'
Equity
_____________
Balance at
December 31, 2000. . .
$62,525
$67,223
$272,169
$(7,808)
$(54,666)
$(5,287)
$334,156
Comprehensive income
Net income. . . . . . .
        .
-0-
-0-
12,023
-0-
-0-
-0-
12,023
Other comprehensive
income,net of tax:
Unrealized holding
gains on securities
arising during
the period. . . . .
-0-
-0-
-0-
11,189
-0-
-0-
11,189
Less: 
        reclassification
adjustment for gains        on securities
        included
in net income. . . . .
-0-
_______
-0-
_______
-0-
________
(109)
_______
-0-
________
-0-
________
(109)
_________
Total
  other comprehensive
income. . . . . . . . .
-0-
_______
-0-
_______
-0-
________
11,080
_______
-0-
________
-0-
________
11,080
_________
Total comprehensive income.
-0-
-0-
12,023
11,080
-0-
-0-
23,103
Cash dividends declared. .
-0-
-0-
(8,443)
-0-
-0-
-0-
(8,443)
Decrease in unearned ESOP
shares
-0-
-0-
-0-
-0-
-0-
357
357
Discount on dividend
reinvestment plan
purchases. .
-0-
(153)
-0-
-0-
-0-
-0-
(153)
Treasury stock reissued. .
-0-
(91)
-0-
-0-
337
-0-
246
_______
_______
________
______
________
________
________
Balance at March 31, 2001.
$62,525
=======
$66,979
=======
$275,749
========
$3,272
======
$(54,329)
=========
$(4,930)
========
$349,266
========
Balance at December 31,
2001 . .
$62,525
$66,176
$288,219
$8,703
$(51,431)
$(4,126)
$370,066
Comprehensive income
Net income. . . . . . .
        .
-0-
-0-
7,638
-0-
-0-
-0-
7,638
Other comprehensive      income, net
        of tax:
Unrealized holding
losses on
securities arising
during the period. . .
-0-
-0-
-0-
(2,787)
-0-
-0-
(2,787)
Less: 
        reclassification
adjustment for gains
on securities included
in net income. . . . .
-0-
_______
-0-
_______
-0-
________
(26)
_______
-0-
________
-0-
________
(26)
_________
Total
  other comprehensive
income. . . . . . . . .
-0-
_______
-0-
_______
-0-
________
(2,813)
______
-0-
________
-0-
________
(2,813)
_______
Total comprehensive income.
-0-
-0-
7,638
(2,813)
-0-
-0-
4,825
Cash dividends declared. .
-0-
-0-
(8,795)
-0-
-0-
-0-
(8,795)
Decrease in unearned ESOP
shares
-0-
-0-
-0-
-0-
-0-
268
268
Discount on dividend
reinvestment plan
purchases. .
-0-
(157)
-0-
-0-
-0-
-0-
(157)
Treasury stock reissued. .
-0-
(352)
-0-
-0-
2,393
-0-
2,041
Balance at March 31, 2002.
$62,525
=======
$65,667
=======
$287,062
========
$5,890
======
$(49,038)
=========
$(3,858)
========
$368,248
========
The accompanying notes are an integral
part of these consolidated financial statements.
5
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
  CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the
  3 Months
Ended March 31,
________________
2002
2001
_____
_____
Operating Activities
Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . .
$7,638
$12,023
Adjustments to reconcile net income to net
cash provided (used) by operating
  activities:
Provision for credit
        losses. . . . . . . . . . . . . . . . .
2,917
2,407
Depreciation and amortization.
        . . . . . . . . . . . . . . .
1,836
1,824
Net losses (gains)
        on sales of assets. . . . . . . . . . . .
179
(1,182)
Income from increase
        in cash surrender value of bank owned
life insurance.
(1,068)
(949)
Decrease in interest
        receivable. . . . . . . . . . . . . . .
838
1,040
Decrease in interest
        payable . . . . . . . . . . . . . . . .
(1,245)
(14,818)
Increase in income
        taxes payable . . . . . . . . . . . . . .
476
3,577
Change in deferred
        taxes . . . . . . . . . . . . . . . . . .
(49)
22
Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . .
3,912
(4,399)
______
_______
Net cash provided
        (used) by operating activities. . . . . .
15,434
(455)
Investing
  Activities
Transactions with securities held to maturity:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .
-0-
-0-
Proceeds from maturities and redemptions
        . . . . . . . . . . .
28,937
73,608
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .
(15,241)
-0-
Transactions with securities available for sale:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .
3,200
25,520
Proceeds from maturities and redemptions
        . . . . . . . . . . .
114,941
97,663
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .
(90,617)
(264,767)
Proceeds from sales of loans and other
        assets . . . . . . . . .
5,037
24,791
Acquisition of affiliate, net of cash
        received. . . . . . . . .
8
-0-
Investment in bank owned life insurance
        . . . . . . . . . . . .
(5,000)
(15,000)
Net decrease (increase) in time deposits
        with banks . . . . . .
2,971
(1,032)
Net increase in loans . . . . . . .
        . . . . . . . . . . . . . .
(29,039)
(38,350)
Purchases of premises and equipment
        . . . . . . . . . . . . . .
(1,776)
(1,584)
________
_______
Net cash provided (used)
        by investing activities. . . . . . .
13,421
(99,151)
Financing
  Activities
Repayments of other long-term debt.
        . . . . . . . . . . . . . .
(306)
(130)
Proceeds from issuance of other long-term
        debt. . . . . . . . .
18,200
2,000
Proceeds
  from issuance of company obligated mandatorily
redeemable capital securities of subsidiary trust .
        . . . . .
-0-
-0-
Discount on dividend reinvestment plan
        purchased. . . . . . . .
(157)
(153)
Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . .
(8,768)
(8,440)
Net decrease in Federal funds purchased
        . . . . . . . . . . . .
(65,579)
(6,150)
Net increase (decrease) in other short-term
        borrowings. . . . .
(20,171)
20,893
Sale of branch and deposits, net of
        cash received . . . . . . .
-0-
(9,591)
Net increase in deposits. . . . . .
        . . . . . . . . . . . . . .
11,403
97,333
Proceeds from sale of treasury stock.
        . . . . . . . . . . . . .
1,229
246
________
_______
Net cash provided (used)
        by financing activities. . . . . . .
(64,149)
96,008
________
_______
Net increase (decrease)
        in cash and cash equivalents. . . . .
(35,294)
(3,598)
Cash and cash equivalents at January
        1. . . . . . . . . . . . .
98,130
101,848
________
_______
Cash and cash equivalents at March 31.
        . . . . . . . . . . . .
$62,836
$98,250
========
=======
The accompanying notes are integral part of these
consolidated financial statements.
6
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
(Unaudited)
NOTE 1     Management Representation
In the opinion of management, the unaudited interim consolidated financial
statements include all adjustments (consisting of only normal recurring
adjustments) necessary for a fair statement of financial position as of March
31, 2002 and the results of operations for the three month periods ended March
31, 2002 and 2001, and statements of cash flows and changes in shareholders'
equity for the three month periods ended March 31, 2002 and 2001.  The results of the three months ended March
31, 2002 and 2001 are not necessarily indicative of the results to be expected
for the entire year.  The interim
consolidated financial statements should be read in conjunction with the annual
consolidated financial statements of First Commonwealth Financial Corporation
and Subsidiaries, including the notes thereto.
NOTE 2     Cash Flow Disclosures
(dollar amounts in thousands)
2002
2001
Cash
  paid during the first three months of the year for:
Interest
$33,726
$44,847
Income
  Taxes
$  
  -0-
$   -0-
Noncash
  investing and financing activities:
ESOP loan reductions
$  
  268
$   357
Loans transferred to other real estate
  owned and
repossessed assets
$ 2,109
$ 1,020
Gross increase (decrease) in market value
adjustment to securities available
  for sale
$(4,327)
$17,046
Treasury stock reissued for acquisition
$  
  812
$   -0-
7
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
(Unaudited)
NOTE 3     Comprehensive Income Disclosures
The following table identifies the related tax effects
allocated to each component of other comprehensive income in the Statements of
Changes in Shareholders' Equity: (dollar amounts in thousands)
March
  31, 2002
_______________
March
  31, 2001
_______________
Pre-tax
Amount
_______
Tax
(Expense)
Benefit
_________
Net of
Tax
Amount
_______
Pre-tax
Amount
________
Tax
(Expense)
Benefit
_________
Net of
Tax
Amount
_______
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising
during the period . . . . . . . .
  . . . .
($4,287)
$1,500
($2,787)
$17,214
($6,025)
$11,189
Less:
  reclassification adjustment for gains
realized in net income. . . . . .
  . . . .
(40)
14
(26)
(168)
59
(109)
_______
______
_______
_______
_______
_______
Net
  unrealized gains (losses) . . . . . . .
(4,327)
1,514
(2,813)
17,046
(5,966)
11,080
_______
______
_______
_______
_______
_______
Other comprehensive income. . . . . . . . . .
($4,327)
$1,514
($2,813)
$17,046
($5,966)
$11,080
=======
======
========
========
=======
========
NOTE
4     Business Combination
Effective March 1, 2002, the Corporation acquired all of the outstanding shares
of Strategic Capital Concepts, Inc. ("SCC") and Strategic Financial
Advisors, Inc. ("SFA"), each a Pennsylvania corporation headquartered
in Allison Park, Pennsylvania.  As a
registered investment adviser, Strategic Capital Concepts provides financial
planning, asset management and consulting services to individuals, businesses,
retirement plans, trusts and estates. 
Strategic Financial Advisors offers investment and insurance products as
well as employee benefit services.  Each
of the outstanding shares of Strategic Capital Concepts, Inc. and Strategic
Financial Advisors, Inc. were exchanged for shares of the Corporation's common
stock.  In addition, the shareholders of
SCC and SFA are entitled to receive additional shares of the Corporation's
common stock for each of the years 2002 through 2005 based on a formula defined
in the merger agreement which takes into consideration the financial
performance of SCC and SFA after the merger date.  The merger was accounted for as a purchase transaction whereby
the identifiable tangible and intangible assets and liabilities of SCC and SFA
have been recorded at their fair values at the acquisition date.  Goodwill in the amount of $1.6 million was
recorded as a result of the transaction. 
As prescribed under the purchase method of accounting, the results of
operations of SCC and SFA from the date of acquisition are included in the
Corporation's financial statements for the first quarter of 2002.
NOTE 5     Subsequent Event
On May 9, 2002, the Corporation reached final settlement with the plaintiffs in
a lender liability action filed in 1994 against one of its subsidiary banks
relating to lending activities occurring prior to the Corporation's acquisition
of that subsidiary.  The decision to
settle followed an adverse pre-trial judgment by the trial judge on procedural
grounds.
8
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
(Unaudited)
NOTE 5     Subsequent Event
(continued)
Under the settlement agreement, the Corporation will pay the plaintiffs $8.0
  million in cash.  Management believes that liability insurance will cover
  a portion of the settlement, but the precise amount of insurance coverage has
  not yet been determined.  In addition, the uninsured portion of the settlement
  will be tax-deductible.  The settlement resulted in a one-time charge of
  $8.0 million ($5.2 million, net of tax effect) or $0.09 per share, after tax
  to the company's first quarter earnings, but the
settlement will not affect the company's ongoing operating results.  The
  $8.0 million dollar litigation settlement is reflected as a separate line item
  in the Corporation's Consolidated Statements of Income for the first quarter
  of 2002 and a corresponding accrued liability is included in "Other Liabilities"
  on the Corporation's Consolidated Balance Sheet at March 31, 2002.
NOTE 6     New Accounting Pronouncements
In July 2001, the Financial Accounting Standards Board ("FASB") issued
  statement No. 141, "Business Combinations" ("FAS No. 141")
  which supersedes APB Opinion No. 16 "Business Combinations" but carries
  forward the guidance in Opinion No. 16 related to the application of the purchase
  method of accounting.  FAS No. 141 requires the purchase method of accounting
  for business combinations initiated after June 30, 2001 and eliminates the pooling-of-interest
  method.  FAS No. 141 also specifies the types of acquired intangible assets
  that are required to be recognized and reported separately from goodwill. 
  Intangible assets are recognized as assets apart from goodwill if the asset
  arises from contractual or other legal rights or the asset is capable of being
  separated from the acquired entity and sold or exchanged.  In addition
  to the disclosure requirements in Opinion No. 16, FAS No. 141 requires disclosure
  of the primary reasons for the business combination and the allocation of the
  purchase price paid to the assets acquired and liabilities assumed by major
  balance sheet caption.  After initial recognition, goodwill and other intangible
  assets acquired in a business combination are accounted for following the provisions
  of FASB statement No. 142, "Goodwill and Other Intangible Assets." 
  Implementation of FAS No. 141 did not have a material impact on the Corporation's
  financial condition or results of operations.
In July 2001, the FASB issued statement No. 142, "Goodwill and Other Intangible
  Assets" ("FAS No. 142"), which supersedes APB Opinion No. 17,
  "Intangible Assets" and is effective for fiscal years beginning after
  December 15, 2001.  FAS No. 142 addresses how intangible assets acquired
  other than by business combination should be accounted for in financial statements
  upon their acquisition.  This statement also addresses financial accounting
  and reporting for goodwill and other intangible assets subsequent to their acquisition. 
  Additional provisions of FAS No. 142 include the reclassification of certain
  existing recognized intangibles to goodwill and reclassification of certain
  intangibles out of previously reported goodwill upon adoption.  FAS No.
  142 requires that goodwill and other intangible assets with indefinite useful
  lives, including goodwill recorded in past business combinations, no longer
  be amortized, but instead
9
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
(Unaudited)
NOTE 6     New Accounting
  Pronouncements
(continued)
be tested for impairment at least annually and written
  down and charged to results of operations only in the periods in which the recorded
  value is more than the estimated fair value.  Intangible assets that have
  finite useful lives will continue to be amortized over their useful lives. 
  This statement also requires the Corporation to complete a transitional goodwill
  impairment test by June 30, 2002, including the identification of reporting
  units for the purpose of assessing potential future impairments of goodwill. 
  After identifying its reporting units, the Corporation must determine the carrying
  value of each reporting unit by assigning the assets and liabilities, including
  the existing goodwill and intangible assets to those reporting units and then
  determine the carrying value of each reporting unit.  If the carrying value
  of any reporting unit exceeds its fair value, then detailed fair values for
  each of the assigned assets (excluding goodwill) and liabilities will be determined
  to calculate the amount of goodwill impairment, if any.  Any transitional
  impairment loss resulting from the adoption of FAS No. 142 will be recognized
  as the effect of a change in accounting principle in the Corporation's income
  statement.
FAS No. 142 requires disclosure of information about goodwill and other intangible
  assets in years subsequent to their acquisition which was not previously required,
  including changes in the carrying amount of goodwill from period to period,
  the carrying amount of intangible assets, and for assets subject to amortization,
  the estimated amortization expense for the next five years.  As of January
  1, 2002, the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million, which would be subject to the transitional assessment provisions
  of FAS No. 142.  In addition, management has reclassified an intangible
  asset previously recorded by an insurance subsidiary when acquiring the expiring
  list of policy holders from their joint-venture partner to goodwill.  The
  customer list intangible was recorded by the Corporation's insurance subsidiary
  in August 2000 and has been amortized to a carrying amount of $718 thousand. 
  Goodwill amortization expense was $230 thousand during the first quarter of
  2001, including amortization related to the insurance agency intangible. 
  Goodwill represented basic and diluted earnings per share of $0.004 for the
  first three months of 2001.  The elimination of goodwill amortization is
  expected to reduce other operating expenses by $922 thousand for 2002. 
  Although the Corporation has not yet completed its transitional goodwill impairment
  testing, management's preliminary determination is that no impairment loss will
  be recognized.
In June 2001, the FASB, issued statement No. 143, "Accounting for Asset
  Retirement Obligations" ("FAS No. 143") which is effective for
  financial statements issued for fiscal years beginning after June 15, 2002. 
  The statement addresses financial accounting and reporting for obligations associated
  with the retirement of tangible long-lived assets and associated asset retirement
  costs.  FAS No. 143 requires that the fair value of a liability for an
  asset retirement obligation be recognized in the period in which it is incurred
  if a reasonable estimate of fair value can be made.
10
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2002
(Unaudited)
NOTE 6     New Accounting
  Pronouncements
(continued)
The associated asset retirement costs are capitalized
  as part of the carrying amount of the long-lived asset and subsequently allocated
  to expense over the asset's useful life.  Implementation of FAS No. 143
  is not expected to have a material impact on the Corporation's financial condition
  or results of operations.
Effective January 1, 2002, the Corporation adopted FASB statement No. 144, "Accounting
  for the Impairment or Disposal of Long-Lived Assets" ("FAS No. 144")
  which requires that long-lived assets be reviewed for impairment whenever events
  or changes in circumstances, such as a significant decrease in the market value
  of an asset or the extent or manner in which an asset is used indicate that
  the carrying amount of an asset may not be recoverable.  If there is an
  indication that the carrying amount of an asset may not be recoverable, future
  undiscounted cash flows expected to result from the use and disposition of the
  asset are estimated.  If the sum of the expected cash flows is less than
  the carrying value of the asset, a loss is recognized for the difference between
  the carrying value and the market value of the asset.  This statement also
  requires measurement of long-lived assets classified as held for sale at the
  lower of their carrying amount or fair value less cost to sell and to cease
  depreciation or amortization on these assets.  Implementation of FAS No.
  144 did not have a material impact on the Corporation's financial condition
  or results of operations.
In April 2002, the FASB issued statement No. 145, "Recission of FASB Statement
  No. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections"
  ("FAS No. 145").  FAS No. 145 rescinds Statement No. 4, which
  required all gains and losses from extinguishment of debt to be aggregated and,
  if material, classified as an extraordinary item, net of related income tax
  effect.  As a result, the criteria in Opinion 30 will now be used to classify
  those gains and losses.  This statement also amends FASB Statement No.
  13 to require that certain lease modifications that have economic effects similar
  to sale-leaseback transactions be accounted for in the same manner as sale-leaseback
  transactions.  This statement also makes technical corrections to existing
  pronouncements, which are not substantive but in some cases may change accounting
  practice.  Implementation of FAS No. 145 is not expected to have a material
  impact on the Corporation's financial condition or results of operations.
11
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS
First Three Months of 2002 as Compared to the
First Three Months of 2001
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation (the
"Corporation") including its subsidiaries.  In addition to historical information, this discussion and
analysis contains forward-looking statements. 
The forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements.  Important factors that might cause such a
difference include, but are not limited to, those discussed in this
"Management's Discussion and Analysis of Financial Condition and Results
of Operations."  Readers are cautioned
not to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof.  The Corporation undertakes no obligation to publicly revise or
update these forward-looking statements to reflect events or circumstances that
arise after the date hereof.
Net income for the first three months of 2002 was $7.6 million reflecting a
decrease of $4.4 million compared to 2001 results of $12.0 million.  Diluted earnings per share were $0.13 for
the first quarter of 2002 compared to $0.21 for the first quarter of 2001.  The decrease in net income for the 2002
period was primarily the result of the one-time charge for the litigation
settlement previously described in Note 5 to the Consolidated Financial
Statements.  This settlement resulted
from a lender liability action filed in 1994 against one of the Corporation's
subsidiary banks relating to a loan made prior to the company's acquisition of
that subsidiary.  Net income excluding
gains on asset sales and the litigation settlement was $12.8 million for the
three months of 2002, representing an increase of 14% compared to $11.2 million
for 2001.  Gains on the sale of assets
includes securities gains of $39 thousand and $205 thousand in 2002 and 2001,
respectively, as well as a $989 thousand gain on the sale of a branch and a
block of mortgages in 2001.  Diluted
earnings per share for core earnings (earnings excluding securities
transactions, gains on asset sales and the litigation settlement) were $0.22
for the three months of 2002 compared to diluted earnings per share of $0.20
for the three months of 2001.  Return on
average assets was 0.68% and return on average equity was 8.09% during the 2002
period, compared to 1.11% and 14.14%, respectively during the same period of
2001.  Return on average assets and
return on average equity based on core earnings were 1.14% and 13.57%,
respectively for the first quarter of 2002 compared to 1.03% and 13.22%,
respectively for the first quarter of 2001.
12
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
For the Quarter
Ended March 31,
2002
2001
____
____
Reconciliation of Core Earnings
________________________________
Net
  income as reported
$ 7,638
$12,023
Non-core
  items (net of tax):
Gains on sale of assets
25
783
Litigation settlement
5,200
-0-
_______
_______
Core
  net income
$12,813
$11,240
=======
=======
Core
  basic earnings per share
$0.22
$0.19
Core
  diluted earnings per share
$0.22
$0.19
Core
  return on average assets
1.14%
1.03%
Core
  return on average equity
13.57%
13.22%
Net interest income, the most significant component
  of earnings, is the amount by which interest income generated from earning assets
  exceeds interest expense on liabilities.  Net interest income was $38.0
  million for the three months of 2002 compared to $34.2 million for the same
  period of 2001.  Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) was 3.82% for the three months
  of 2002 compared to 3.55% for the three months of 2001.  The increase in
  net interest margin for the 2002 period compared to 2001 resulted primarily
  from deposit rate decreases that were greater than loan yield decreases compared
  to the 2001 period.  The cost of deposits decreased by 139 basis points
  (1.39%) for the first three months of 2002 compared to the first three months
  of 2001, while loan yields decreased by 129 basis points (1.29%) over the same
  time period.  The Corporation continues to manage interest rate risk and
  to expand its fee-based services to offset persistent pressure on net interest
  income.
13
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
The following table shows the effect of changes
  in volumes and rates on interest income and interest expense.
Analysis of Changes in Net Interest Income
(dollar amounts in thousands)
2002 Change from 2001
Total
Change
______
Change Due
to Volume
__________
Change Due
to Rate
__________
Interest-earning
  assets:
Time deposits with banks
($    9)
$    9
($  
  18)
Securities
(1,374)
1,130
(2,504)
Federal funds sold
(279)
(268)
(11)
Loans
(6,895)
1,380
(8,275)
______
______
_______
Total interest income
(8,557)
2,251
(10,808)
Interest-bearing
  liabilities:
_______
______
_______
Deposits
(10,736)
558
(11,294)
Short-term borrowings
(1,759)
1,513
(3,272)
Long-term debt
128
179
(51)
_______
_______
_______
Total interest expense
(12,367)
2,250
(14,617)
_______
_______
_______
Net interest income
$ 3,810
$    1
$ 3,809
=======
=======
=======
Interest
and fees on loans decreased $6.9 million for 2002 over 2001 levels and included
decreases in interest income due to rate of $8.3 million which were partially
offset by increases in interest income due to volume of $1.4 million.  The total yield on loans for the first three
months of 2002 was 7.31%, compared to loan yields of 8.61% for the first three
months of 2001.  Average loans for the
three months of 2002 increased $65.7 million compared to averages for the three
months of 2001 as increases in commercial loans and municipal loans were
partially offset by decreases in average consumer loans.
Interest income on investments decreased $1.4 million for the three months of
2002 compared to the corresponding period of 2001 as decreases in interest
income due to rate were only partially offset by increases in interest income
due to volume.  Total yield on
investments was 6.14% for the first quarter of 2002 compared to 6.70% for the
first quarter of 2001.  Decreases in
interest income due to rate for U.S. government agency securities were $1.5
million as yields on U.S. government agency securities decreased 54 basis points
(0.54%) for the 2002 period compared to 2001. 
Average investments for the three months of 2002 included an increase of
$68.2 million for corporate bonds compared to 2001 averages.
14
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
Interest on deposits decreased $10.7 million for the 2002 period
  compared to 2001, as interest on total savings deposits decreased by $2.9 million
  and interest on time deposits decreased by $7.8 million for the three months
  of 2002 compared to 2001.  Interest expense on deposits for the first quarter
  of 2002 reflected decreases due to rate of $11.3 million as the cost of total
  savings deposits decreased 127 basis points (1.27%) and the cost of time deposits
  decreased 144 basis points (1.44%) compared to costs for the first quarter of
  2001.  Average deposits for the first three months of 2002 included decreases
  in average time deposits of $147.3 million which were partially offset by increases
  in average total savings deposits of $88.1 million over 2001 averages.
Interest expense on short-term borrowings decreased $1.8 million for the three
  months of 2002 compared to the three months of 2001 as decreases in interest
  expense due to rate of $3.3 million were partially offset by increases in interest
  expense due to volume of $1.5 million compared to 2001 levels.  The cost
  of short-term borrowings for the 2002 period decreased by 348 basis pints (3.48%)
  compared to 2001 costs of 5.35%.  The average balance of short-term borrowings
  for the first quarter of 2002 increased by $114.0 million over averages for
  the first quarter of 2001.
Interest expense on long-term debt increased $128 thousand for the three months
  of 2002 compared to the corresponding period of 2001 as a result of volume increases. 
  Average long-term debt for the three months of 2002 increased by $12.7 million
  compared to 2001 averages as maturities were extended for short term borrowings
  from the Federal Home Loan Bank, to take advantage of lower interest rates.
The provision for credit losses was $2.9 million for the three months of 2002
  compared to $2.4 million for the three months of 2001.  Net charge-offs
  against the allowance for credit losses were $3.0 million in the 2002 period,
  reflecting an increase of $1.3 million compared to 2001 levels.
The 2002 period included increases in net charge-offs for commercial loans not
  secured by real estate of $1.1 million and increases in net charge-offs for
  consumer real estate loans of $130 thousand compared to 2001 net charge-offs. 
  Net charge-offs as a percent of average loans outstanding were 0.12% for the
  first quarter of 2002 compared to 0.07% for the first quarter of 2001. 
  The provision for credit losses as a percent of net charge-offs was 97.36% at
  March 31, 2002 compared to 144.22% at March 31, 2001.  See the "Credit
  Review" section for an analysis of the quality of the loan portfolio.
15
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
Below is an analysis of the consolidated allowance
  for credit losses for the three month periods ended March 31, 2002 and 2001.
2002
____
2001
____
(amounts in thousands)
Balance January 1,
$34,157
$33,601
Loans charged off:
Commercial, financial and agricultural
1,231
217
Real estate-construction
1
-0-
Real estate-commercial
171
238
Real estate-residential
434
322
Loans to individuals
1,199
1,057
Lease financing receivables
144
115
_______
______
Total loans charged off
$ 3,180
$1,949
Recoveries of previously charged off loans:
Commercial, financial and agricultural
34
66
Real estate-construction
-0-
-0-
Real estate-commercial
-0-
-0-
Real estate-residential
3
21
Loans to individuals
147
188
Lease financing receivables
-0-
5
______
_______
Total recoveries
184
280
_______
_______
Net charge offs
2,996
1,669
_______
_______
Provision charged to operations
2,917
2,407
_______
_______
Balance March 31,
$34,078
$34,339
=======
=======
Net securities gains were $39 thousand during the first three months of 2002
compared to $205 thousand for the first three months of 2001.  Securities gains during the three months of
2002 resulted primarily from the sale of fixed rate corporate bonds classified
as securities "available for sale" with a book value of $3.0
million.  The securities gains during
2001 resulted primarily from sales and calls of fixed rate U.S. government
agency securities classified as securities "available for sale" with
a book value of $39.9 million.
16
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
Trust income for the first quarter of 2002 decreased
  $81 thousand compared to the first quarter of 2001 and included decreases in
  income from employee benefit accounts and personal trusts as market values declined. 
  Service charges on deposits for the first three months of 2002 increased $112
  thousand compared to the first three months of 2001.  Insurance commissions
  increased $201 thousand for the first quarter of 2002 compared to the first
  quarter of 2001, primarily as a result of increased annuity sales.  Income
  from bank owned life insurance was $1.1 million for the first three months of
  2002 compared to $949 thousand for the first three months of 2001.  The
  2002 period included an additional investment in bank owned life insurance of
  $5.0 million compared to 2001 levels.
Other income for the first three months of 2002 was $2.5 million representing a
decrease of $1.1 million compared to $3.6 million reported for the first three
months of 2001.  The decrease in other
income for the first quarter of 2002 compared to the first quarter of 2001 was
due in part to gains on sale of assets included in the 2001 period.  The Corporation sold one of its branches
during the first quarter of 2001 which resulted in a gain of $777
thousand.  The 2001 period also included
a gain of $212 thousand from the sale of $12.9 million of 30 year residential
mortgage loans with significant prepayment exposure during falling interest
rates.  Other income for 2002 included
decreases in ATM fees compared to the corresponding period of 2001.  Fee based revenue, such as insurance
commissions, mutual fund sales fees and investment management fees are expected
to be positively impacted in future periods as the Corporation's newly acquired
subsidiaries, Strategic Capital Concepts and Strategic Financial Advisors are
incorporated into the integrated advisory sales model utilized to integrate
products between the Corporation's bank, insurance and trust subsidiaries.  Certified financial planners from the new
subsidiaries will also be included on the employee team used to deliver
products and services to commercial customers through our "Total Solutions
Financial Management" approach.
Noninterest expense was $35.4 million for the three months of 2002 reflecting
an increase of $10.0 million over the 2001 level of $25.4 million, primarily as
a result of the previously described litigation settlement of $8.0 million
included in the 2002 period.  Employee
costs were $14.6 million for the first three months of 2002, representing 1.31%
of average assets on an annualized basis compared to $13.7 million or 1.26% of
average assets on an annualized basis for 2001.  Salary costs for the first quarter of 2002 increased $514
thousand or 4.8% compared to 2001 levels of $10.7 million.  Employee benefit costs for the first three
months of 2002 reflected increases of $461 thousand over the first three months
of 2001 and included increases in health insurance costs and increases in
expenses of the Corporation's employee stock ownership plan and 401(k) plan compared
to the first three months of 2001.
17
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
As a result of the merger of the Corporation's banking
  subsidiaries, Southwest Bank and First Commonwealth Bank, which is expected
  to occur later this year, banking operations will be consolidated under First
  Commonwealth Bank.  This change will provide banking clients with greater
  flexibility, efficiency and seamless service throughout our market-area. 
  As a result of this merger, there will be a consolidation of support functions
  with some staff positions being eliminated.  The personnel within the branches
  and relationship managers in the corporate services will continue to serve in
  the same manner.  This move will affect 50 employees at Southwest Bank. 
  Employees were notified on April 25 and will continue to work in their current
  positions for at least 60 more days.  During this time, they will also
  have the opportunity to seek other positions within the Corporation.  Those
  employees who do leave after this period will receive liberal separation packages
  based on years of service.  A one-time charge for the cost of the separation
  package is expected in 2002.  In subsequent years a cost savings will be
  recognized.  While the financial impact is not immediately determinable,
  it is expected to be positive and will be quantified during the next 90 days.
Furniture and equipment expenses of $2.4 million for the first three months of
2002 reflected increases of $272 thousand over 2001 levels and included
increases in computer software depreciation and software maintenance of $231
thousand and $181 thousand, respectively, primarily related to the upgrade of
the core banking software.  Increases in
computer software depreciation and maintenance costs for the 2002 period
compared to 2001 were partially offset by decreases in outside data processing
costs over the same time period. 
Outside data processing expense decreased $325 thousand for the first
quarter of 2002 compared to the first quarter of 2001 and was positively
impacted by the conversion of Southwest Bank from outsourced processing to that
provided by a subsidiary of the Corporation.
Accounting changes from the adoption of FAS No. 142 resulted in a decrease of
$230 thousand of goodwill amortization for the first three months of 2002 compared
to the first three months of 2001. 
Under the new pronouncement goodwill amortization was discontinued
effective January 1, 2002.
Other operating expenses for the 2002 period were $7.1 million reflecting an
increase of $1.3 million over the 2001 amount of $5.8 million.  The first three months of 2002 included
increases in legal fees, loss on sale of assets, and telephone expenses of $106
thousand, $343 thousand and $120 thousand, respectively compared to 2001
levels.  Other professional fees for the
first quarter of 2002 reflected increases of $372 thousand over the first
quarter of 2001 and included consulting fees related to implementation of the
Corporation's "Balanced Scorecard" performance measurement system,
enhancements to product and customer profitability systems and corporate
restructuring.  Promotion expense for
the first three months of 2002 reflected an increase of $453 thousand compared
to the first three months of 2001, due in part to expenses incurred in the
successful marketing campaign for free checking products introduced during
2002.
18
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Three Months of 2002 as Compared to the
  First Three Months of 2001
(continued)
These products are expected to have a favorable
  impact on deposit costs and service charge revenue in future periods as well
  as providing potential add on sales of other financial products and services.
Income tax expense was $433 thousand for the first three months of 2002
compared to $3.6 million for the first three months of 2001.  The Corporation's effective tax rate was
5.4% for the 2002 period compared to 23.1% for the corresponding period of
2001.  Income tax expense for the 2002
period included the $2.8 million tax benefit resulting from the previously
described litigation settlement.  The
Corporation's effective tax rate for the 2002 period, excluding this one time charge
was 20.1%.
LIQUIDITY
Liquidity is a measure of the Corporation's ability to efficiently meet
normal cash flow requirements of both borrowers and depositors.  In the ordinary course of business, funds
are generated from deposits (primary source) and the maturity or repayment of
earning assets, such as securities and loans. 
As an additional secondary source, short-term liquidity needs may be
provided through the use of overnight Federal funds purchased, borrowings
through the use of lines available for repurchase agreements and borrowings
from the Federal Reserve Bank. 
Additionally, the banking subsidiaries are members of the Federal Home
Loan Bank and may borrow under overnight and term borrowing arrangements.  The sale of earning assets may also provide
an additional source of liquidity.
The Corporation monitors liquidity through regular computations of prescribed
liquidity ratios.  The Corporation
actively manages liquidity within a defined range and has developed liquidity
contingency plans, including ensuring availability of alternate funding sources
to maintain liquidity under a variety of business conditions.  In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.
Net loans increased $20.1 million in the first three months of 2002 as
increases in commercial loans, municipal loans and loans to individuals were
partially offset by decreases in residential real estate loans.  Total deposits increased $11.4 million for
the first three months of 2002 as increases in time deposits of $42.7 million
and total savings deposits of $8.0 million were partially offset by decreases
in demand deposits of $39.3 million compared to year-end 2001.  Time deposits for the first three months of
2002 were primarily in rising rate certificates of deposits offered for a
limited time during 2002.  The
Corporation's commitment to competitive product offerings combined with greater
flexibility and enhanced delivery systems resulting from the replacement of the
deposit software during 2001 should continue to have a favorable impact on the
deposit base.
19
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY (continued)
Marketable
securities that the Corporation holds in its investment portfolio are an
additional source of liquidity. These securities are classified as
"securities available for sale" and while the Corporation does not
have specific intentions to sell these securities, they have been designated as
"available for sale" because they may be sold for the purpose of
obtaining future liquidity, for management of interest rate risk or as part of
the implementation of tax management strategies.  As of March 31, 2002, securities available for sale had an
amortized cost of $1,428.2 million and an approximate fair value of $1,437.3
million.
Interest Sensitivity
The objective of interest rate sensitivity management is to maintain an appropriate
balance between the stable growth of income and the risks associated with
maximizing income through interest sensitivity imbalances.  While no single number can accurately
describe the impact of changes in interest rates on net interest income, interest
rate sensitivity positions, or "gaps", when measured over a variety
of time periods, may be helpful.
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.  If interest-sensitive assets
("ISA") exceed interest-sensitive liabilities ("ISL")
during the prescribed time period, a positive gap results.  Conversely, when ISL exceed ISA during a
time period, a negative gap results.
A positive gap tends to indicate that earnings will be impacted favorably if
interest rates rise during the period and negatively when interest rates fall
during the time period.  A negative gap
tends to indicate that earnings will be affected inversely to interest rate
changes.  In other words, as interest
rates fall, a negative gap should tend to produce a positive effect on
earnings, and when interest rates rise, a negative gap should tend to affect
earnings negatively.
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.  The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.
20
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
Interest Sensitivity
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of March 31,
2002 and December 31, 2001.
March
  31, 2002
______________
0-90
Days
_____
91-180
Days
______
181-365
Days
________
Cumulative
0-365 Days
___________
Loans
$886,824
$160,749
$289,173
$1,336,746
Investments
136,679
114,686
145,643
397,008
Other interest-earning assets
3,429
-0-
-0-
3,429
_________
________
________
_________
Total
  interest-sensitive assets
1,026,932
275,435
434,816
1,737,183
_________
________
________
_________
Certificates of deposit
388,420
273,563
392,366
1,054,349
Other deposits
1,098,118
-0-
-0-
1,098,118
Borrowings
341,800
-0-
750
342,550
_________
________
________
_________
Total
  interest-sensitive
liabilities
1,828,338
273,563
393,116
2,495,017
_________
________
________
_________
Gap.
($801,406)
$  1,872
$
  41,700
($757,834)
==========
========
========
==========
ISA/ISL
0.56
1.01
1.11
0.70
Gap/Total Assets
17.68%
0.04%
0.92%
16.72%
21
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
December
  31, 2001
__________________
0-90
Days
_____
91-180
Days
______
181-365
Days
________
Cumulative
0-365 Days
___________
Loans
$  839,279
$155,276
$276,760
$1,271,315
Investments
154,327
90,890
180,001
425,218
Other interest-earning assets
4,250
-0-
-0-
4,250
_________
________
________
_________
Total
  interest-sensitive assets
997,856
246,166
456,761
1,700,783
_________
________
________
_________
Certificates of deposit
329,825
284,518
407,188
1,021,531
Other deposits
1,090,160
-0-
-0-
1,090,160
Borrowings
430,189
350
750
431,289
_________
________
________
_________
Total
  interest-sensitive
Liabilities
1,850,174
284,868
407,938
2,542,980
_________
________
________
_________
Gap
($852,318)
$
  (38,702)
$
  48,823
($842,197)
==========
========
========
==========
ISA/ISL
0.54
0.86
1.12
0.67
Gap/Total Assets
18.60%
0.84%
1.07%
18.37%
Although
the periodic gap analysis provides management with a method of measuring
current interest rate risk, it only measures rate sensitivity at a specific
point in time.  Therefore, to more
precisely measure the impact of interest rate changes on the Corporation's net
interest income, management simulates the potential effects of changing
interest rates through computer modeling. 
The income simulation model used by the Corporation captures all assets,
liabilities and off-balance sheet financial instruments, accounting for
significant variables that are believed to be affected by interest rates.  These variables include prepayment speeds on
mortgage loans and mortgage backed securities, cash flows from loans, deposits
and investments and balance sheet growth assumptions.  The model also captures embedded options, such as interest rate
caps/floors or call options, and accounts for changes in rate relationships as
various rate indices lead or lag changes in market rates.  The Corporation is then better able to
implement strategies which would include an acceleration of a deposit rate
reduction or lag in a deposit rate increase. 
The repricing strategies for loans would be inversely related.
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve month period.  Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors. 
Additional simulations are produced estimating the impact on net
interest income of a 300 basis point (3.00%) movement upward or downward from
the base case scenario.  The
Corporation's
22
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
current asset/liability management policy indicated
  that a 300 basis point (3.00%) change in interest rates up or down cannot result
  in more than a 7.5% change in net interest income when compared to a base case,
  without Board approval and a strategy in place to reduce interest rate risk
  below the established maximum level.  The analysis at March 31, 2002 indicated
  that a 300 basis point (3.00%) movement in interest rates in either direction
  over the next twelve months would not have a significant impact on the Corporation's
  anticipated net interest income over that time frame and the Corporation's position
  would remain well within current policy guidelines.
The Corporation's "Asset/Liability Management Committee" ("ALCO")
  is responsible for the identification, assessment and management of interest
  rate risk exposure, liquidity, capital adequacy and investment portfolio position. 
  The primary objective of the ALCO process is to ensure that the Corporation's
  balance sheet structure maintains prudent levels of risk within the context
  of currently known and forecasted economic conditions and to establish strategies
  which provide the Corporation with appropriate compensation for the assumption
  of those risks.  The ALCO attempts to mitigate interest rate risk through
  the use of strategies such as asset disposition, asset and liability pricing
  and matched maturity funding.  The ALCO strategies are established by the
  Corporation's senior management and are approved by the Corporation's board
  of directors.
CREDIT REVIEW
The following table identifies amounts of loan losses and nonperforming loans. 
  Past due loans are those which were contractually past due 90 days or more as
  to interest or principal payments but are well secured and in the process of
  collection.  Renegotiated loans are those which terms have been renegotiated
  to provide a reduction or deferral of principal or interest as a result of deteriorating
  financial position of the borrower and are in compliance with the restructured
  terms.
23
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
At March 31,
_____________
2002
____
2001
_____
(amounts in thousands)
Nonperforming
  Loans
:
Loans on nonaccrual basis
$   24,589
$    9,447
Past due loans
15,594
21,751
Renegotiated loans
827
2,250
__________
__________
Total Nonperforming Loans
$   41,010
$   33,448
==========
==========
Other real estate owned
$    2,106
$    1,475
Loans outstanding at end of period
$2,587,925
$2,502,629
Average loans outstanding (year-to-date)
$2,568,911
$2,503,187
Nonperforming loans as percent of total
  loans
1.58%
1.34%
Provision for credit losses
$    2,917
$   2,407
Net charge-offs
$    2,996
$   1,669
Net charge-offs as percent of average
loans outstanding
0.12%
0.07%
Provision for credit losses as percent
of net charge-offs
97.36%
144.22%
Allowance for credit losses as percent
of average loans outstanding
1.33%
1.37%
Allowance for credit losses as percent
of end-of-period loans outstanding
1.32%
1.37%
Allowance for credit losses as percent
of nonperforming loans
83.10%
102.66%
The
Corporation considers a loan to be impaired when, based on current information
and events, it is probable that the Corporation will be unable to collect
principal or interest due according to the contractual terms of the loan.  Loan impairment is measured based on the
present value of expected cash flows discounted at the loan's effective
interest rate or, as a practical expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral dependent.  Payments received on impaired loans are
applied against the recorded investment in the loan.  For loans other than those that the Corporation expects repayment
through liquidation of the collateral, when the remaining recorded investment
in the impaired loan is less than or equal to the present value of the expected
cash flows, income is recorded on a cash basis.  Impaired loans include loans on a nonaccrual basis and
renegotiated loans.
24
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The following table identifies impaired loans, and
  information regarding the relationship of impaired loans to the reserve for
  credit losses at March 31, 2002 and March 31, 2001.
2002
____
2001
_____
(amounts
  in thousands)
Recorded investment in impaired loans at end of
  period
$25,416
$11,697
Year to date average balance of impaired loans
$24,532
$12,171
Allowance for credit losses related to impaired
  loans
$ 4,480
$ 2,373
Impaired loans with an allocation of the allowance
  for
credit losses
$13,816
$ 3,730
Impaired loans with no allocation of the allowance
  for
credit losses
$11,600
$ 7,967
Year to date income recorded on impaired loans on
  a cash basis
$   134
$   194
Other
than those described above, there are no material credits that management has
serious doubts as to the borrower's ability to comply with the present loan
repayment terms.  Additionally, the
portfolio is well diversified and as of March 31, 2002, there were no
significant concentrations of credit.
Nonperforming loans at March 31, 2002 increased $7.6 million compared to March
31, 2001 levels as increases in nonaccrual loans were only partially offset by
decreases in past due loans and renegotiated loans.  The increase in nonaccrual loans compared to 2001 levels resulted
primarily because of the inclusion of two loans during the third quarter of
2001.  One is a $6.5 million credit that
is not past due and carries an 80% guaranty of a U.S. governmental agency but
is experiencing cash flow difficulties and has therefore been placed in
nonaccrual status.  A resolution of this
credit is expected in the third quarter of 2002.  The second credit, which was $5.9 million at year-end 2001,
continues to be resolved through liquidation of collateral and other
remedies.  The balance outstanding at
March 31, 2002 related to this credit is $4.6 million.  The Corporation anticipates final resolution
of this credit during 2002 without additional losses in excess of amounts
currently reserved.  Nonperforming loans
at March 31, 2002 reflected a decrease of $502 thousand compared to December
31, 2001 levels.  Nonperforming loans as
a percent of total loans was 1.58% at March 31, 2002 compared to 1.62% at
December 31, 2001, and 1.34% at March 31, 2001, while the allowance for credit
losses as a percent of nonperforming loans was 83.10%, 82.28% and 102.66%,
respectively for the same periods.  Past
due loans as of March 31, 2002 reflected decreases in all loan categories
compared to March 31, 2001 levels.
25
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation's loan portfolio continues to be
  monitored by senior management to identify potential portfolio risks and detect
  potential credit deterioration in the early stages.  Committees formed
  during 2001 for the purpose of reviewing watchlist credits for workout progress
  or deterioration and monitoring loan loss adequacy and the status of significant
  nonperforming credits continue to provide additional internal monitoring and
  analysis in addition to that provided by the credit committees of the banks
  and parent company.  Credit risk is mitigated during the loan origination
  process through the use of sound underwriting policies and collateral requirements. 
  The Corporation also requires an additional level of approval for credit relationships
  between $500 thousand and $1.0 million.  This procedure requires approval
  of those credits by a committee consisting of senior lenders of the Corporation. 
  Management also attempts to minimize loan losses by analyzing and modifying
  collection techniques on a periodic basis.  The Corporation feels that
  the allowance for credit losses is adequate at this time.  The uncertain
  economic conditions present a risk to the industry, but management feels that
  its risk management process is thorough and serves as an early warning system
  so that an appropriate response will be promptly implemented.
CAPITAL RESOURCES
Equity capital decreased $1.8 million in the first three months of 2002. 
  Dividends declared reduced equity by $8.8 million during the 2002 period. 
  Dividends declared exceeded earnings for the first quarter of 2002, primarily
  as a result of the one-time litigation settlement included in earnings for the
  first quarter.  The Corporation's capital base remains strong and the one-time
  charge will not impact the Corporation's ability to fund future growth and expansion. 
  Payments by the Corporation's Employee Stock Ownership Plan (the "ESOP")
  to reduce debt it incurred to acquire the Corporation's common stock for future
  distribution as employee compensation, net of fair value adjustments to Unearned
  ESOP shares, increased equity by $268 thousand.  Amounts paid to fund the
  discount on reinvested dividends reduced equity by $157 thousand.  The
  market value adjustment to securities available for sale decreased equity by
  $2.8 million.  Proceeds from the reissuance of treasury shares to fund
  stock options exercised increased equity by $1.2 million during 2002. 
  Equity capital during 2002 also reflected an increase of $812 thousand from
  the reissuance of treasury shares to fund first quarter acquisitions.
A capital base can be considered adequate when it enables the Corporation to
  intermediate funds responsibly and provide related services, while protecting
  against future uncertainties.  The evaluation of capital adequacy depends
  on a variety of factors, including asset quality, liquidity, earnings history
  and prospects, internal controls and management caliber.  In consideration
  of these factors, management's primary emphasis with respect to the Corporation's
  capital position is to maintain an adequate and stable ratio of equity to assets.
26
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL
RESOURCES
(continued)
The Federal Reserve Board has issued risk-based capital
  adequacy guidelines which are designed principally as a measure of credit risk. 
  These guidelines require:  (1) at least 50% of a banking organization's
  total capital be common and other "core" equity capital ("Tier
  I Capital"); (2) assets and off-balance-sheet items be weighted according
  to risk; (3) the total capital to risk-weighted assets ratio be at least 8%;
  and (4) a minimum leverage ratio of Tier I capital to average total assets. 
  The minimum leverage ratio is not specifically defined, but is generally expected
  to be 3-5 percent for all but the most highly rated banks, as determined by
  a regulatory rating system.
The table below presents the Corporation's capital position at March 31, 2002:
Amount
(in thousands)
Percent
of Adjusted
Assets
Tier
  I Capital
$389,010
12.9%
Risk-Based
  Requirement
120,459
4.0
Total
  Capital
423,088
14.1
Risk-Based
  Requirement
240,918
8.0
Minimum
  Leverage Capital
389,010
8.6
Minimum
  Leverage Requirement
135,957
3.0
At March 31, 2002, the Corporation's banking subsidiaries
  are considered well capitalized as defined by the Federal Deposit Insurance
  Corporation Improvement Act of 1991.
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK
Information appearing in Item 2 of this report under
  the caption "Interest Sensitivity" is incorporated by reference in
  response to this item.
27
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1.  LEGAL
  PROCEEDINGS
There were no material legal
  proceedings to which the Corporation
or its subsidiaries are a
  party, or of which any of their
property is the subject, except
  proceedings which arise in the
normal course of business
  and, in the opinion of management, will
not have a material adverse
  effect on the consolidated operations
or financial position of the
  Corporation and its subsidiaries.
See NOTE 5 to the consolidated
  financial statements for
additional information related
  to the litigation settlement
included in results of operations
  for the first quarter of 2002.
ITEM 2.   CHANGES IN SECURITIES
Not applicable
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 4.   SUBMISSION OF MATTERS TO
  A VOTE OF SECURITY HOLDERS
Not applicable
ITEM 5.   OTHER INFORMATION
Not applicable
ITEM 6.   EXHIBITS AND REPORTS ON
  FORM 8-K
(a) Exhibits
None
(b) Reports
  on Form 8-K
None
28
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
FIRST COMMONWEALTH FINANCIAL CORPORATION
(Registrant)
DATED:  MAY 14, 2002       /S/Joseph E. O'Dell
____________________________________
Joseph E. O'Dell, President and
Chief Executive Officer
DATED:  May 14, 2002    
    /S/John J. Dolan
_____________________________________
John J. Dolan, Executive Vice
President and Chief Financial Officer
29