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<title>FORM 10-Q</title>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>(X)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>QUARTERLY
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the quarterly period ended March 31, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  OR<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>(&nbsp;)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
  </td>
 </tr>
</table>

<p align=center><font size=3
face=Courier><br>
Commission File Number <u>&nbsp;&nbsp;0-11242&nbsp;&nbsp;<br>
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Commonwealth Financial
Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>(Exact name of registrant as specified in its charter)</font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=355 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;</font></p>
  <p align=center><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pennsylvania&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=336 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;</font></p>
  <p align=center><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25-1428528&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=355 valign=top>
  <p align=center><font size=3
  face=Courier>(State or other jurisdiction of</font></p>
  </td>
  <td width=336 valign=top>
  <p align=center><font size=3
  face=Courier>(I.R.S. Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width=355 valign=top>
  <p align=center><font size=3
  face=Courier>incorporation or organization)</font></p>
  </td>
  <td width=336 valign=top>
  <p align=center><font size=3
  face=Courier>Identification No.)</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=415 valign=top>
  <p align=center><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22
  North Sixth Street&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=276 valign=top>
  <p align=center><u><font size=3
  face=Courier>Indiana, PA&nbsp; 15701</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=415 valign=top>
  <p align=center><font size=3
  face=Courier>(Address of principal executive
  offices)</font></p>
  </td>
  <td width=276 valign=top>
  <p align=center><font size=3
  face=Courier>(Zip Code)</font></p>
  </td>
 </tr>
</table>

<p align=center><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;724-349-7220&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
(Registrant's telephone number, including area code)<br>
<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;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, <br>
if changed since last report)</font></p>

<p><font size=3 face=Courier><br>
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>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; 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 12, 2003, was 59,004,133.</font></p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><u><font size=3
  face=Courier>ITEM 1.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>FINANCIAL STATEMENTS</font></p>
  </td>
  <td width=55 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>PAGE</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>Included in Part I of this report:</font></p>
  </td>
  <td width=55 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>First Commonwealth Financial Corporation and</font></p>
  </td>
  <td width=55 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Subsidiaries Consolidated Balance Sheets.................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Income......................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>4</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Changes in</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' Equity.................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>5</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Cash Flows..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>6</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Notes to Consolidated Financial
  Statements................ </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>7</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 2.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>12</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  MARKET RISK.. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  28</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 4.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>CONTROLS AND PROCEDURES..................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>29</font></p>
  </td>
 </tr>
</table>

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

<p align=center><font size=3
face=Courier>PART II - OTHER INFORMATION</font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=679 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>Other Information...................................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>30</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p><font size=3 face=Courier>Signatures............................................................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>31</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p><font size=3 face=Courier>Certification of Chief Executive Officer............................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>32</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p><font size=3 face=Courier>Certification of Chief Financial Officer............................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>34</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=top>
  <p><font size=3 face=Courier>Exhibits and Reports on Form 8K</font></p>
  </td>
  <td width=55 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;</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<br>
CONSOLIDATED BALANCE SHEETS (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>March
  31,<br>
  <u>2003</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>December
  31,<br>
  <u>2002</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>ASSETS</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and due
  from banks on demand........................ </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>82,252&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>81,114&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest-bearing
  bank deposits........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,880&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,973&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities
  available for sale, at market................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,517,975&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,482,771&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities held
  to maturity, at cost,(Market value $177,643 in<br>
  &nbsp;&nbsp;&nbsp;&nbsp;2003 and $204,887 in 2002)............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  170,648&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  197,838&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Loans.................................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>2,650,597&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>2,609,440&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unearned
  income........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(725)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(806)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Allowance
  for credit losses............................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(35,321)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(34,496)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  loans.......................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>2,614,551&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>2,574,138&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Premises and
  equipment................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>44,877&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>45,730&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other real
  estate owned.................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,862&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,651&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Goodwill................................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>8,131&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>8,131&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Amortizing
  intangibles, net.............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>22&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>29&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other assets............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;133,259&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;131,368&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  assets........................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>4,575,457&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>LIABILITIES</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Deposits (all
  domestic):</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>364,495&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>377,466&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>2,782,640&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>2,666,658&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  deposits....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>3,147,135&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>3,044,124&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Short-term
  borrowings.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>408,725&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>469,065&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other
  liabilities........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>33,699&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>30,230&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Company
  obligated mandatorily redeemable capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other long-term
  debt..................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;544,230&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;544,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  long-term debt................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;579,230&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;579,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>4,168,789&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>4,123,353&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>SHAREHOLDERS' EQUITY</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Preferred
  stock, $1 par value per share, 3,000,000 shares<br>
  &nbsp;&nbsp;&nbsp;&nbsp;authorized, none issued................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Common stock $1
  par value per share, 100,000,000 shares authorized,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;62,525,408 shares issued; 58,997,787 and 58,962,543
  shares outstanding<br>
  &nbsp;&nbsp;&nbsp;&nbsp;at March 31, 2003 and December 31, 2002 respectively... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  62,525&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  62,525&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Additional
  paid-in capital............................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>64,683&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Retained earnings........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>300,324&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Accumulated
  other comprehensive income................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>26,459&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Treasury stock
  (3,527,621 shares at March 31, 2003 and 3,562,869 at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2002, at cost)............................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  (44,536)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  (44,981)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Unearned ESOP
  shares..................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(2,787)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(3,055)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  shareholders' equity............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;406,668&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;401,390&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities and shareholders' equity............. </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>4,575,457&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;&nbsp;The
accompanying notes are an integral part of these consolidated financial
statements.<br>
<br>
<br>
3</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<br>
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=515 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=220 colspan=4 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the Quarter<br>
  <u>Ended March 31,</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=105 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=115 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Income</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest and
  fees on loans............................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>42,029&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>45,327&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest and
  dividends on investments:</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Taxable
  interest....................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>17,156&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>22,238&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest
  exempt from Federal income taxes.............. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 2,523&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 2,392&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Dividends.............................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>602&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>552&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  Federal funds sold........................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  bank deposits................................ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income.................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 62,317&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 70,523&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Expense</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  deposits..................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;15,797&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;21,321&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  short-term borrowings........................ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>1,552&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>1,765&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  company obligated mandatorily redeemable capital<br>
  &nbsp;&nbsp;&nbsp;&nbsp;securities of subsidiary trust......................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 831&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  831&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest on
  other long-term debt......................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,291&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,564&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest on long-term debt....................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,122&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;
  9,395&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;25,471&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;32,481&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Net Interest Income................................. </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 36,846&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 38,042&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Provision for
  credit losses.............................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,460&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,917&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Net interest income after provision for credit losses</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;33,386&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;35,125&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Other Income</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities
  gains......................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>2,234&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>39&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Trust income............................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp; 1,185&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp; 1,213&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Service charges
  on deposit accounts...................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;2,849&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;2,693&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Insurance
  commissions.................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>797&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>856&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Income from
  bank owned life insurance.................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>1,046&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>1,069&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other income............................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,960&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,519&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other income..................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;11,071&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,389&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Other Expenses</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Salaries and
  employee benefits........................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>15,335&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>14,643&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net occupancy
  expense.................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>1,974&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>1,686&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Furniture and
  equipment expense.......................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;2,552&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;2,398&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Data processing
  expense.................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 527&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 442&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Pennsylvania
  shares tax expense.......................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp; 1,060&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 995&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Intangible
  amortization.................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 7&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 120&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Litigation
  settlement (recovery)......................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp; (610)</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp; 8,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other operating
  expenses................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,927&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,159&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other expenses................................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;27,772&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;35,443&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Income before income taxes.......................... </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>16,685&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 8,071&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Applicable
  income taxes.................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,381&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;433&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Net income.......................................... </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,304&nbsp;</font></u></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=91 valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,638&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>Average Shares Outstanding................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>58,703,260&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>58,142,359&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>Average Shares Outstanding
  Assuming Dilution............... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>58,934,248&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>58,484,806&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><b><font size=1
  face=Courier>Per Share Data:</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Basic earnings
  per share................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>0.13&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Diluted
  earnings per share............................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>0.13&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash dividends
  per share................................. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=top>
  <p align=right><font
  size=1 face=Courier>0.155&nbsp;</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=91 valign=top>
  <p align=right><font
  size=1 face=Courier>0.150&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=515 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;&nbsp;The
accompanying notes are an integral part of these consolidated financial
statements.<br>
4<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 SUBSIDIARIES<br>
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY<br>
(Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Unearned<br>
  ESOP<br>&nbsp;<u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Balance
  December 31, 2001.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>66,176&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>288,219&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>8,703&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(51,431)</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(4,126)</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>370,066&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>7,638&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>7,638&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding (losses) on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  (2,787)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  (2,787)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;(26)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;(26)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(2,813)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(2,813)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Total
  comprehensive income......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&#8209;0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>7,638&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(2,813)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>4,825&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Cash
  dividends declared............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(8,795)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(8,795)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>268&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>268&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(157)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(157)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Treasury
  stock reissued............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(352)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;2,393&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;2,041&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Balance
  at March 31, 2002.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>62,525&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>65,667&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>287,062&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;5,890&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(49,038)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(3,858)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>368,248&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Balance
  December 31, 2002.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(44,981)</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(3,055)</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>401,390&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,304&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,304&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  2,045&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier><br>&nbsp;2,045&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  (1,437)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;(1,437)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;608&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;608&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Total
  comprehensive income......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&#8209;0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,304&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>608&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,912&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Cash
  dividends declared............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(9,145)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(9,145)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>268&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>268&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(167)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(167)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Treasury
  stock reissued............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(35)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;445&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;410&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1
  face=Courier>Balance
  at March 31, 2003.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>62,525&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>64,683&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>300,324&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>26,459&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(44,536)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(2,787)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>406,668&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>5</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<br>
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td colspan=3 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the 3 Months<br>
  <u>Ended March 31,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>Operating Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net income............................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,304&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>7,638&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Adjustments to
  reconcile net income to net cash provided by operating<br>
  &nbsp;&nbsp;&nbsp;&nbsp;activities:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Provision
  for credit losses&nbsp;........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>3,460&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>2,917&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  and amortization.......................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,810&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,836&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  losses (gains) on sales of assets.................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(2,213)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>179&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Income
  from increase in cash surrender value of bank owned life insurance</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(1,046)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(1,068)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest receivable........................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,925&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>838&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest payable........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(1,263)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(1,245)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Increase
  in income taxes payable....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>4,111&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>476&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Change
  in deferred taxes............................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(731)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(49)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Other-net.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(1,572)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;3,912&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by operating activities............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>17,785&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>15,434&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>Investing Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities held to maturity:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>27,216&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>28,937&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(15,241)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities available for sale:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>37,753&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>3,200&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>240,971&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>114,941&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(310,785)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(90,617)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sales of loans and other assets............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>29,922&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>5,037&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Acquisition of
  affiliate, net of cash received........... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>8&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Investment in
  bank owned life insurance.................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(5,000)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net decrease in
  time deposits with banks................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>93&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>2,971&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  loans.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(74,061)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(29,039)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Purchases of
  premises and equipment...................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(892)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(1,776)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by investing activities....... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(49,783)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>13,421&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><b><font size=1
  face=Courier>Financing Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  other long-term debt....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(10,436)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;(306)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of other long-term debt........... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>10,000&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;18,200&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Discount on
  dividend reinvestment plan purchases......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(167)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(157)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Dividends paid........................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(9,139)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>&nbsp;(8,768)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase
  (decrease) in Federal funds purchased....... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>16,100&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(65,579)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net (decrease)
  in other short-term borrowings............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(76,440)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(20,171)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  deposits................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>103,011&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>11,403&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sale of treasury stock..................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;207&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;1,229&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by financing activities....... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;33,136&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>(64,149)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  increase (decrease) in cash and cash equivalents... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>1,138&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>(35,294)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at January 1................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;81,114&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;98,130&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at March 31.................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;82,252&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;62,836&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;&nbsp;The
accompanying notes are an integral part of these consolidated financial
statements.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
6</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 1 Management Representation</u><br>
<br>
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries (&quot;the
Corporation&quot;).&nbsp; All significant
intercompany transactions and balances have been eliminated.&nbsp; The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.&nbsp; The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates, assumptions and judgments that affect
the amounts reported in the financial statements and accompanying notes.&nbsp; Actual realized amounts could differ from
those estimates.&nbsp; 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, 2003 and the results of
operations for the three month periods ended March 31, 2003 and 2002, and
statements of cash flows and changes in shareholders' equity for the three
month periods ended March 31, 2003 and 2002.&nbsp;
The results of operations for the three months ended March 31, 2003 and
2002 are not necessarily indicative of the results that may be expected for the
full year or any other interim period.&nbsp;
These interim financial statements should be read in conjunction with
the Corporation's 2002 Annual Report on Form 10-K which is available on the
Corporation's website at http://www.fcbanking.com.&nbsp; The Corporation's website also provides additional information of
interest to investors and clients, including other regulatory filings made to
the Securities and Exchange Commission, press releases, historical stock
prices, dividend declarations and corporate governance, as well as information
about products and services offered through the Corporation's banking,
insurance, trust and financial management subsidiaries.<br>
<br>
<u>NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Cash
  paid during the first three months of the year for:</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Interest</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier>26,734&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>33,726&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Income
  Taxes</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>-0-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;ESOP
  loan reductions</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier>268&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>268&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  transferred to other real estate owned and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;repossessed assets</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier><br>
  1,247&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  2,109&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=516 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase (decrease) in market value<br>
  &nbsp;&nbsp;&nbsp;&nbsp;adjustment&nbsp;to securities available for sale</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier><br>
  935&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  (4,327)</font></p>
  </td>
 </tr>
 <tr>
  <td width=516 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Treasury
  stock reissued for business combination</font></p>
  </td>
  <td width=24 valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=top>
  <p align=right><font size=3
  face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>812&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<br>
<br>
<br>
7</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2003<br>
(Unaudited)</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>March
  31, 2003</font></u></p>
  </td>
  <td colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>March
  31, 2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<u><br>
  Benefit</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;Unrealized holding gains<br>
  &nbsp;&nbsp;(losses) arising during<br>
  &nbsp;&nbsp;the period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  3,145&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (1,100)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  2,045&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (4,287)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  1,500</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (2,787)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;Less: reclassification<br>
  &nbsp;&nbsp;adjustment for gains realized<br>
  &nbsp;&nbsp;in net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>(2,210)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;773&nbsp;</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  (1,437)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;(40)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  &nbsp;&nbsp;&nbsp;14</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  &nbsp;&nbsp;&nbsp;(26)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;Net unrealized gains (losses)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;935&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(327)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;608&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(4,327)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,514</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(2,813)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Other comprehensive income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;935&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(327)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;608&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(4,327)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,514</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(2,813)</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<u>NOTE 4 Accounting for Stock Options Granted</u><br>
<br>
In December 2002, the Financial Accounting Standards Board (&quot;FASB&quot;)
issued Statement No. 148, &quot;Accounting for Stock-Based
Compensation-Transition and Disclosure&quot; (&quot;FAS No. 148&quot;).&nbsp; FAS No. 148 amended FASB Statement No. 123
&quot;Accounting for Stock-Based Compensation&quot; (&quot;FAS No. 123&quot;)
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.&nbsp; FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, &quot;Interim Financial
Reporting&quot; (&quot;APB 28&quot;), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.&nbsp; FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 &quot;Accounting for Stock Issued to
Employees&quot; (&quot;APB 25&quot;).&nbsp;
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.&nbsp; Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.<br>
<br>
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.&nbsp; As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.&nbsp; No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.<br>
8</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 4 Accounting for Stock Options Granted</u> (continued)<br>
<br>
The following table illustrates the effect on net income and earnings per share
if the Corporation had applied the fair value recognition provisions of FAS No.
123 to stock-based employee compensation:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>(Dollar
  amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>Three months ended<br>
  March 31,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Net
  Income, as reported</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>13,304&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>7,638&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Deduct:
  Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  $</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(338)</u></font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  $</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(570)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Pro
  forma net income</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>12,966&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,068&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Earnings
  per share:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Basic
  - as reported</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.13&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Basic
  - pro forma</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.12&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - as reported</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.13&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - pro forma</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.12&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<u>Note 5 Restructuring Charges</u><br>
<br>
The Corporation incurred restructuring charges of $6,140 thousand during the
second, third and fourth quarters of 2002 in accordance with EITF 94-3.&nbsp; These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.&nbsp; The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.&nbsp; Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies.&nbsp;
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.<br>
<br>
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.&nbsp; During the first quarter of 2003, monthly
severance payments totaling $929 thousand were made, reducing the outstanding
severance liability to $2,460 thousand at March 31, 2003.&nbsp; No additional severance accruals or
adjustments were recorded during the first quarter of 2003. <br>
<br>
<br>
<br>
<br>
<br>
9</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 6 New Accounting Pronouncements</u> <br>
<br>
In July 2002, the FASB issued statement No. 146, &quot;Accounting for Costs
Associated with Exit or Disposal Activities&quot; (&quot;FAS No.
146&quot;).&nbsp; FAS No. 146 replaced EITF
Issue No. 94-3, &quot;Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring).&quot;&nbsp; The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.&nbsp; Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.&nbsp; Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations. <br>
<br>
In November 2002, the FASB issued FASB Interpretation No. 45 (&quot;FIN
45&quot;), &quot;Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others&quot;.&nbsp;
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee, and
the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.&nbsp; The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.&nbsp; This
interpretation expands the disclosures to be made by the guarantor in its
financial statements about its obligation under certain guarantees and requires
the guarantor to recognize a liability for the fair value of an obligation
assumed under a guarantee.&nbsp; FIN 45
clarifies the requirements of FASB Statement No. 5 (&quot;FAS No. 5&quot;)
&quot;Accounting for Contingencies&quot;, relating to guarantees.&nbsp; In general, FIN 45 applies to contracts or
indemnification agreements that contingently require the guarantor to make
payments to the guaranteed party based on changes in an underlying that is
related to an asset, liability, or equity security of the guaranteed
party.&nbsp; Certain guarantee contracts are
excluded from both the disclosure and recognition requirements of this
interpretation, including, but not limited to, guarantees related to employee
compensation, residual value guarantees under capital lease arrangements,
commercial letters of credit, loan commitments, subordinated interests in
special purpose entities and guarantees of a company's own future
performance.&nbsp; Other guarantees are
subject to the disclosure requirements of FIN 45 but not the recognition
provisions and include, among others, a guarantee accounted for as a derivative
instrument under FAS No. 133, a parent's guarantee of debt owed to a third
party by its subsidiary or vice versa and a guarantee which is based on
performance not price.&nbsp; Guarantees that
have been entered into by the Corporation are disclosed in NOTE 7.&nbsp; The adoption of FIN 45 did not have a
material impact on the Corporation's financial condition or results of
operations.<br>
<br>
In January 2003, the FASB issued FASB Interpretation No. 46 (&quot;FIN
46&quot;), &quot;Consolidation of Variable Interest Entities&quot;, the
provisions of which became effective upon issuance.&nbsp; As defined by FIN 46 a variable interest entity (&quot;VIE&quot;)
is a corporation, partnership, trust or any other legal structure used for
business purposes that either (a) does not have equity</font></p>

<p><font size=3 face=Courier><br>
10</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
March 31, 2003<br>
(Unaudited)</font></p>

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

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

<p><font size=3 face=Courier><br>
investors with voting rights or (b) has equity investors that do not provide
sufficient financial resources for the entity to support its activities.&nbsp; This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.&nbsp; Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur.&nbsp;
The Corporation has reviewed its current business interests in order to
determine the impact of FIN 46 and has determined that no additional business
interests require consolidation in the Corporation's financial statements.&nbsp; The adoption of FIN 46 therefore did not
have any impact on the Corporation's financial condition or results of
operations.<br>
<br>
In April 2003, the FASB issued Statement No. 149 &quot;Amendment of Statement
133 on Derivative Instruments and Hedging Activities&quot; (&quot;FAS No.
149&quot;).&nbsp; FAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under
Statement 133.&nbsp; In particular, FAS No.
149 clarifies under what circumstances a contract with an initial net
investment meets the characteristic of a derivative and when a derivative
contains a financing component that warrants special reporting in the statement
of cash flows.&nbsp; This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.&nbsp; The adoption of FAS No. 149 is not expected to have a material
impact on the Corporation's financial condition or results of operations.<br>
<br>
<u>NOTE 7 Guarantees</u><br>
<br>
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.&nbsp; The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.&nbsp; In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.&nbsp; The table
below identifies the notional amounts of these guarantees at March 31, 2003:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Financial
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>24,363</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Performance
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>6,862</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
The current notional amounts outstanding above include financial standby
letters of credit of $565 thousand and performance standby letters of credit of
$123 thousand issued during the first quarter of 2003.&nbsp; There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.<br>
<br>
<br>
11</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>
AND RESULTS OF OPERATIONS (continued)</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</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 including its
subsidiaries (the &quot;Corporation&quot;).&nbsp;
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and expectations
based on information currently available and may contain the words
&quot;expect,&quot; &quot;estimate,&quot; &quot;project,&quot;
&quot;anticipate,&quot; &quot;should,&quot; &quot;intend,&quot;
&quot;probability,&quot; &quot;risk,&quot; &quot;target,&quot; and similar
expressions.&nbsp; These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:&nbsp; changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.&nbsp; Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.&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.</font></p>

<p><font size=3 face=Courier><br>
Net income for the first three months of 2003 was $13.3 million reflecting an
increase of $5.7 million compared to 2002 results of $7.6 million.&nbsp; Net income for the 2002 period included an
$8.0 million litigation settlement ($5.2 million net of tax) while the 2003
period includes a partial recovery from insurance for that claim in the amount
of $610 thousand ($397 thousand net of tax).&nbsp;
This settlement related to a lender liability action filed in 1994
against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.&nbsp; The first quarter of 2003 includes
securities gains of $2.2 million compared to securities gains of $39 thousand
for the first quarter of 2002.&nbsp; Diluted
earnings per share were $0.23 for the first quarter of 2003 compared to $0.13
for the first quarter of 2002.&nbsp; </font></p>

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

<p><font size=3 face=Courier>The
following is an analysis of the impact of changes in net income on diluted
earnings per share:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Net
  income per share, prior year</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0.13&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Increase
  (decrease) from changes in:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Provision
  for credit losses</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Security
  transactions</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0.04&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Other
  income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0.01&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Salaries
  and employee benefits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Litigation
  settlement</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0.15&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;Applicable
  income taxes</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(0.05)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Net
  income per share</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>12</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Return on average assets was 1.19% and return on average equity was 13.15% for
the first quarter of 2003 compared to 0.68% and 8.09%, respectively, for the
first quarter of 2002.<br>
<br>
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
declined $1.2 million for the first quarter of 2003 compared to the first
quarter of 2002, primarily as earning asset yields declined faster than funding
costs.&nbsp; Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) was 3.78% for the three months of 2003 compared to 3.82% for the three
months of 2002.&nbsp; Continued low or
declining interest rates would tend to further strain net interest income due
to low reinvestment rates and accelerated prepayments of certain loans and
investments.<br>
<br>
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=top>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003 Change From 2002<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(5)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(4,901)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(1,475)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3,426)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(3,298)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;253&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(3,551)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(8,206)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,226)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(6,980)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(5,524)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(465)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(5,059)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(213)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>278&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(491)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,273)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,263)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;(10)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(7,010)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,450)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(5,560)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,196)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;224&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,420)</font></u></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans declined $3.3 million for the first quarter of 2003 compared
to 2002 levels as loan yields declined in the lower interest rate
environment.&nbsp; The total yield on loans
for the first quarter of 2003 was 6.70%, compared to loan yields of 7.30% for
the first quarter of 2002.&nbsp; Average
loans for the first three months of 2003 rose $64.1 million compared to
averages for the first three months of 2002 as increases in commercial loans,
municipal loans and indirect installment loans were partially offset by
decreases in average mortgage loans.&nbsp;
The Corporation<br>
<br>
<br>
13</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration (&quot;SBA&quot;) lender status.&nbsp; The Corporation was one of the top small
business lenders in Pennsylvania during the past two years.&nbsp; The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.&nbsp; Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.&nbsp; The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.<br>
<br>
Interest income on investments declined $4.9 million for the first quarter of
2003 compared to the first quarter of 2002 reflecting decreases due to interest
rates of $3.4 million combined with decreases due to investment volumes of $1.5
million.&nbsp; Total yield on investments was
5.29% for the first three months of 2003 compared to 6.14% for the same period
of 2002.&nbsp; Declines in interest income
due to rate for U.S. government agency securities were $2.9 million as yields
on U.S. government agency securities decreased 112 basis points (1.12%) for the
2003 period compared to the corresponding period of 2002.&nbsp; Average investments for the first quarter of
2003 included decreases in average U.S. government agencies of $51.2 million
and average asset backed securities of $73.3 million which reduced interest
income for the first quarter of 2003 by $760 thousand and $1.1 million compared
to 2002 levels.<br>
<br>
Interest on deposits dropped $5.5 million for the 2003 period compared to 2002
primarily due to decreases in interest expense due to interest rates of $5.1
million.&nbsp; Deposit costs were 2.09% for
the first quarter of 2003 compared to 2.80% for the first quarter of 2002.&nbsp; The rate on savings deposits fell 48 basis
points (0.48%) resulting in a decrease to interest expense of $1.3 million for
the first three months of 2003 compared to the first three months of 2002.&nbsp; The rate on time deposits for 2003 also
declined, down 94 basis points (0.94%) compared to 2002 levels, resulting in a
decrease to interest expense of $3.7 million for the first quarter of
2003.&nbsp; Interest on deposits also
reflected decreases due to volumes for 2003 as average deposits for the first
quarter of 2003 declined $19.7 million compared to the first quarter of
2002.&nbsp; The Corporation's deposit mix
also changed for the first quarter of 2003 as clients registered a preference
for savings deposits during continuing economic uncertainties.&nbsp; Average savings deposits increased $73.2
million for 2003 compared to 2002 averages while average time deposits dropped
$70.9 million over the same time frame.&nbsp;
During its management of deposit levels and mix the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.</font></p>

<p><font size=3 face=Courier><br>
<br>
<br>
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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Interest expense on short-term borrowings decreased $213 thousand for the three
months of 2003 compared to the three months of 2002 as decreases in interest
expense due to rate of $491 thousand were partially offset by increases in
interest expense due to volume of $278 thousand compared to 2002 levels.&nbsp; The cost of short-term borrowings for the
2003 period decreased by 47 basis points (0.47%) compared to 2002 costs of
1.87%.&nbsp; The average balance of
short-term borrowings for the first quarter of 2003 increased by $66.2 million
over averages for the prior year, primarily as a result of increased
utilization of short-term borrowing from the Federal Home Loan Bank.<br>
<br>
Interest expense on long-term debt decreased $1.3 million for the first quarter
of 2003 compared to the corresponding period of 2002, primarily as a result of
volume decreases. &nbsp;Average long-term
debt for the three months of 2003 decreased by $90.0 million compared to 2002
averages.<br>
<br>
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.&nbsp; The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.&nbsp; The provision for credit losses was $3.5
million for the three months of 2003 compared to $2.9 million for the three
months of 2002.&nbsp; Net charge-offs against
the allowance for credit losses were $2.6 million, reflecting a decrease of
$361 thousand compared to net charge-offs for the 2002 period.&nbsp; The most significant components of this
year-to-year change were decreases in the following categories: residential
mortgages (down $95 thousand), commercial loans not secured by real estate
(down $411 thousand) and loans to individuals (down $408 thousand.)&nbsp; These decreases in net charge-offs for the
first quarter of 2003 were partially offset by increases in net charge-offs for
construction loans and commercial real estate loans of $377 thousand and $248
thousand, respectively compared to the corresponding period of 2002.&nbsp; Net charge-offs as a percent of average
loans outstanding were 0.10% for the first quarter of 2003 compared to 0.12%
for the first quarter of 2002.&nbsp; The
provision for credit losses as a percent of net charge-offs was 131.31% at
March 31, 2003 compared to 102.85% at December 31, 2002 and 97.36% at March 31,
2002.&nbsp; See the &quot;Credit Review&quot;
section for any analysis of the quality of the loan portfolio.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
15</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Below is an analysis of the consolidated allowance for credit losses for the
three month periods ended March 31, 2003 and 2002:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=right><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=right><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,496</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,157</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,268</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,231</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>378</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>419</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>171</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>336</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>434</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>659</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,199</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;114</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;144</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  loans charged off</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;3,174</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;3,180</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>368</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>171</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>147</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  recoveries</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;539</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;184</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  charge offs</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;2,635</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;2,996</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;3,460</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;2,917</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  March 31,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>35,321</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>34,078</font></u></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Net
securities gains were $2.2 million during the first three months of 2003
compared to $39 thousand for the first three months of 2002.&nbsp; Securities gains during the 2003 period
resulted primarily from the sale of fixed rate corporate bonds classified as
securities &quot;available for sale&quot; with book values of $34.5 million and
Pennsylvania bank stocks with book values of $1.1 million.&nbsp; The corporate bonds sold during 2003 had an
average remaining life of one year and the proceeds were reinvested in
adjustable rate trust preferred securities with maturities of 30 years and
mortgage backed securities with an average life of 3.6 years.&nbsp; This reinvestment strategy was initiated to
partially mitigate the Corporation's exposure to low and declining interest
rates.<br>
<br>
<br>
<br>
<br>
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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>&nbsp;<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Trust income for the first quarter of 2003 was relatively stable when compared
to the first quarter of 2002 and although fee revenue continues to be
negatively impacted by low market values, the enhanced referral programs and
integrated growth plans for financial affiliates that have been initiated have
helped to offset this trend.&nbsp; The
Corporation's continued success in building relationships with commercial
clients provides fee based affiliates with additional sales opportunities
through the &quot;Total Solutions Financial Management&quot; (&quot;TSFM&quot;)
process.&nbsp; This strategy combines products,
services and professional staff from the Corporation's trust, insurance,
financial advisory and banking affiliates and partners them in providing
comprehensive financial services offerings.<br>
<br>
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $156 thousand for the first three months of
2003 compared to the corresponding period of 2002.&nbsp; Increases in insufficient funds fees &quot;NSF&quot; of $353 thousand
for the first quarter of 2003 were partially offset by decreases in selected
fees related to certain transaction accounts compared to 2002 levels.&nbsp; Management strives to implement reasonable
fees for services and closely monitors collection of those fees.<br>
<br>
Insurance commissions fell $59 thousand for the 2003 period as decreases in
annuity and credit insurance revenues were larger than the increases that were
generated in all other insurance categories.&nbsp;
As part of the previously discussed TSFM process the Corporation's
insurance subsidiary will continue to have expanded opportunities to meet the
insurance needs of commercial clients.&nbsp;
In addition, the Corporation has developed &quot;FOCUS&quot; a financial
planning tool designed to help clients prioritize and assess their financial
needs.&nbsp; The &quot;FOCUS&quot; concept results
in a systematic approach covering a wide range of personal financial goals
including appropriate insurance coverage.<br>
<br>
Other income for the first three months of 2003 rose $441 thousand from the
$2.5 million reported for the first three months of 2002.&nbsp; Other income for the first quarter of 2003
included increases in STAR interchange fees, merchant discount and gains on
sale of mortgages of $387 thousand, $198 thousand and $109 thousand,
respectively versus 2002 results.&nbsp; Other
income for the 2003 period included decreases in debit card interchange fees,
and gains on sale of foreclosed property.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
17</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Noninterest expense was $27.8 million for the three months of 2003 reflecting a
decrease of $7.6 million from the 2002 level of $35.4 million, primarily
reflecting the effects of the previously mentioned litigation settlement.&nbsp; The 2002 period includes the $8.0 million
litigation charge while the 2003 period includes a $610 thousand recovery from
insurance coverage related to the settlement.&nbsp;
Employee costs were $15.3 million for the first three months of 2003,
representing an increase of $692 thousand&nbsp;
over 2002 levels.&nbsp; Salary costs
for the first quarter of 2003 increased $302 thousand or 2.7% compared to 2002
levels of $11.2 million.&nbsp; Salary costs
for 2003 include on-going savings resulting from the merger of the
Corporation's banking subsidiaries under one charter and the consolidation of
support functions which caused some staff positions to be eliminated during
2002.&nbsp; These staffing reductions were
part of the corporate restructuring initiative which also provided severance
benefits to affected employees.&nbsp;
Severance costs were expensed as incurred during 2002 while monthly cash
payments for some individuals continue during 2003.&nbsp; Employee benefit costs rose $390 thousand or 11.4% for the first
quarter of 2003 with the largest increase being hospitalization costs, which
were up $257 thousand or 21.7%.&nbsp; The
Corporation continues to evaluate its current menu of employee benefits to
provide a competitive benefits package while also managing costs.&nbsp; Current benefit options include coverages
fully paid for by the employer, as well as voluntary benefits whereby employees
have the option of purchasing additional benefits at reduced group rates.<br>
<br>
Net occupancy expense increased $288 thousand for the first quarter of 2003 and
included increases in building repairs and maintenance, utilities and net
rental expense compared to 2002 costs.&nbsp;
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.&nbsp; The Corporation is actively evaluating its branch delivery
network to optimize client service in existing branches and to continue
expansion into growth markets.&nbsp; The
execution of these initiatives may impact occupancy and other expenses in
future periods.&nbsp; Increases in furniture
and equipment expenses of $154 thousand for the first quarter of 2003 resulted
primarily from increases in computer software depreciation and software
maintenance combined with increases in depreciation on furniture and equipment<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Three Months of 2003 as Compared to the
First Three Months of 2002</b><br>
(continued)<br>
<br>
Other operating expenses for the 2003 period were $6.9 million reflecting a
decrease of $232 thousand (3.2%) from the 2002 amount of $7.2 million.&nbsp; The first three months of 2003 included
decreases in loss on sale of assets (primary lease vehicles), other
professional fees and telephone expenses of $144 thousand, $191 thousand and
$160 thousand, respectively compared to 2003 costs.&nbsp; Directors' fees for the 2003 period reflected decreases of $118
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002.&nbsp;
The first quarter of 2003 included an increase in charge card
interchange charges of $174 thousand compared to the first quarter of
2002.&nbsp; Advertising and promotion costs
for 2003 reflected increases totaling $189 thousand, primarily as a result of
continued promotion of the Corporation's brand and identity launched during the
fourth quarter of 2002, as well as on-going marketing campaigns for free
checking products introduced during 2002.&nbsp;
These free checking 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 increased $2.9 million for the first quarter of 2003
compared to the first quarter of 2002.&nbsp;
The 2002 period included a $2.8 million tax effect related to the $8.0
million litigation settlement recorded during 2002.&nbsp; The Corporation's effective tax rate was 20.3% for the first
three months of 2003 compared to 5.4% for the corresponding period of 2002.<br>
<br>
<u>LIQUIDITY</u><br>
<br>
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 the banking subsidiary's core deposit base 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 use of lines available for repurchase
agreements, and borrowings from the Federal Reserve Bank.&nbsp; Additionally, the banking subsidiary is a
member 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.&nbsp; In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.<br>
<br>
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources.&nbsp;
The Corporation maintains a liquidity management policy to manage this
risk.&nbsp; This policy identifies the
primary sources of liquidity, establishes procedures for</font></p>

<p><font size=3 face=Courier><br>
<br>
<br>
19</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<u>LIQUIDITY</u> (continued)<br>
<br>
monitoring and measuring liquidity and quantifies minimum liquidity
requirements which comply with regulatory requirements.&nbsp; The policy also includes a liquidity
contingency plan to address funding needs to maintain liquidity under a variety
of business conditions.&nbsp; The
Corporation's liquidity position is monitored by the Asset/Liability Management
Committee (&quot;ALCO&quot;).<br>
<br>
At March 31, 2003 total earning assets were $4,340.4 million, up from the
$4,291.2 million recorded at December 31, 2002.&nbsp; Net loans increased $40.4 million for the first three months of
2003 as commercial loans increased by $38.2 million and municipal loans
increased by $25.1 million compared to year-end 2002, while loans to
individuals increased by $8.2 million over the same time frame.&nbsp; The first quarter of 2003 reflected
decreases of $31.1 million in residential real estate loans, due in part to the
continued run-off of the existing portfolio and sale of new loan production as
the Corporation continues to change its loan mix.&nbsp; The Corporation's auto lease portfolio also continues to decline
as focus shifts from indirect leasing to indirect lending activities.&nbsp; Total deposits increased $103.0 million for
the first three months of 2003 as increases in time deposits of $112.9 million
and total savings deposits of $3.1 million were partially offset by decreases
in demand deposits of $13.0 million compared to year-end 2002.&nbsp; Included in time deposits for the first
quarter of 2003 were $100 million of brokered deposits with a weighted average
term of 27 months.&nbsp; Proceeds from the
issuance of brokered deposits were utilized to pay down short-term borrowings,
which declined $60.3 million during the first quarter of 2003 to $408.7 million
at March 31, 2003.<br>
<br>
Marketable securities that the Corporation holds in its investment portfolio
are an additional source of liquidity.&nbsp;
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,
2003, securities available for sale had an amortized cost of $1,477.3 million
and an approximate fair value of $1,518.0 million.<br>
<br>
<b>Interest Sensitivity</b><br>
<br>
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.&nbsp; The
Corporation's market risk is composed primarily of interest rate risk.&nbsp; Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.<br>
<br>
<br>
<br>
<br>
<br>
<br>
20</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<b><br></b><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>
The cumulative gap at the 365 day repricing period was negative in the amount
of $156.4 million or 3.42% of total assets at March 31, 2003.&nbsp; 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
maturity certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
21</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<b>&nbsp;<br></b>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, 2003, and December 31, 2002 (dollar amounts in thousands):<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=top>
  <p align=center><u><font size=1
  face=Courier>March
  31, 2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,015,538&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>150,085&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>305,799&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,471,422&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>329,697&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>155,524&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>243,269&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>728,490&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,880&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,880&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>1,347,115&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>305,609&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>549,068&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>2,201,792&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Certificates of deposit</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>255,812&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>160,025&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>355,135&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>770,972&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,175,628&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,175,628&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;409,572&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;562&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;1,499&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;411,633&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>1,841,012&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>160,587&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>356,634&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>2,358,233&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(493,897)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>145,022&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>192,434&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(156,441)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0.73&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1.90&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1.54&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0.93&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>10.79%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>3.17%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>4.21%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>3.42%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=top>
  <p align=center><u><font size=1
  face=Courier>December
  31, 2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>962,398&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>157,172&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>295,273&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,414,843&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>292,206&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>162,578&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>262,287&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>717,071&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,973&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,973&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>1,256,577&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>319,750&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>557,560&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>2,133,887&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Certificates of deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>354,625&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>170,687&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>263,882&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>789,194&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,172,538&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1,172,538&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;469,735&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;905&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;1,483&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;472,123&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>1,996,898&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>171,592&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>265,365&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>2,433,855&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(740,321)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>148,158&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>292,195&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(299,968)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0.63&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>1.86&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>2.10&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>0.88&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>16.36%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>3.27%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>6.46%</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=1
  face=Courier>6.63%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
22</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
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, and as a result may not accurately predict the impact
of changes in general levels of interest rates or net interest income.&nbsp; This is exemplified as the gap analysis
shows the Corporation's earnings to be negatively impacted by rising rates, but
computer modeling indicates that rising rates would have a favorable impact on earnings.&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 a 100 basis
point movement downward which cannot result in more than a 7.5% change or 5.0%
change, respectively, in net interest income when compared to the 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, 2003 indicated that a 300 basis point (3.00%)
increase in interest rates would increase net interest income 318 basis points
(3.18%) above the base case scenario and a 100 basis point (1.00%) decline in
interest rates would decrease net interest income by 315 basis points (3.15%)
below the base case scenario, over the next twelve months, both within policy
limits.<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 sales,
asset and liability pricing and matched maturity funding.&nbsp; The ALCO<br>
<br>
<br>
<br>
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>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
strategies are established by the Corporation's senior management.&nbsp; The ALCO continues to evaluate the use of
derivative instruments to protect against the risk of adverse price or interest
rate movements on the values of certain assets and liabilities, although none
are being utilized currently.&nbsp; <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 loans which
terms have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><u><font size=3
  face=Courier>At March 31,</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  on nonaccrual basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>22,982&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>24,589&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Past
  due loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,007&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>15,594&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Renegotiated
  loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;205&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;827&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  Nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;36,194&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;41,010&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Other
  real estate owned</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,862&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,106&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  outstanding at end of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,649,872&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,587,925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  loans outstanding (year-to-date)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,633,040&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,568,911&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Nonperforming
  loans as percent of total loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.37%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.58%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,460&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,917&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,635&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,996&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.10%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.12%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses as a percent of net charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  131.31%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  97.36%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.34%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.33%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of end-of-period loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.33%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.32%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  97.59%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  83.10%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><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>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
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.<br>
<br>
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at March 31,
2003 and March 31, 2002:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recorded
  investment in impaired loans at end <br>
  &nbsp;of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>23,187</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>25,416</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date average balance of impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>23,266</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>24,532</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses related to <br>
  &nbsp;impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,791</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,480</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with an allocation of the<br>
  &nbsp;allowance for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  15,675</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  13,816</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with no allocation of the&nbsp;allowance<br>
  &nbsp;for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  7,512</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  11,600</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date income recorded on impaired loans <br>
  &nbsp;on a cash basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  140</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  134</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
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, 2003, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at March 31, 2003 decreased $4.8 million compared to 2002
levels as nonaccrual loans, past due loans and renegotiated loans decreased
compared to March 31, 2002.&nbsp; The
decrease in nonaccrual loan levels of $1.6 million included decreases in
nonaccrual commercial loans which were partially offset by increases in
nonaccrual commercial loans secured by residential real estate.&nbsp; Nonaccrual loans include two <br>
<br>
25</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
significant credits in both periods.&nbsp;
The largest credit ($6.1 million) carries an 80% guaranty of a U.S.
government agency.&nbsp; While a sale of the
underlying assets is pending, delays with the bankruptcy court would result in
the final sale and resolution of the remaining balance occurring in the third
quarter of 2003.&nbsp; The second credit
which was $3.1 million at March 31, 2003, continues to be resolved through the
liquidation of collateral and exercising other remedies.&nbsp; While final resolution of this credit is
uncertain, management's estimate of the potential loss on this credit is
reserved.<br>
<br>
Past due loans for the 2003 period decreased $2.6 million compared to the
corresponding period of 2002 and included decreases in all major
categories.&nbsp; Renegotiated loans also
fell, decreasing by $622 thousand for the 2003 period.&nbsp; Nonperforming loans as a percent of total
loans was 1.37% at March 31, 2003 compared to 1.47% at December 31, 2002, and
1.58% at March 31, 2002, while the allowance for credit losses as a percent of
nonperforming loans was 97.59%, 89.76% and 83.10%, respectively for the same
periods.<br>
<br>
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; This process
includes close monitoring of watchlist credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.&nbsp; Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.<br>
<br>
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses which are inherent in the loan and lease portfolios
at each balance sheet date.&nbsp; Management
reviews the adequacy of the allowance on a quarterly basis to ensure that the
provision for credit losses has been charged against earnings in an amount
necessary to maintain the allowance at a level that is appropriate based on
management's assessment of probable estimated losses.&nbsp; The Corporation's methodology for assessing the appropriateness
of the allowance for credit losses consists of several key elements.&nbsp; These elements include a specific allowance
for primary watch list classified loans, a formula allowance based on
historical trends, an additional allowance for special circumstances and an
unallocated allowance.<br>
<br>
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits.&nbsp;
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss&nbsp; provisions may be necessary
due to changes in management estimates and assumptions about asset impairment,
information about borrowers that<br>
<br>
<br>
<br>
<br>
<br>
26</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>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
indicate changes in the expected future cash flows or changes in economic
conditions.&nbsp; The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.&nbsp; In addition, the Corporation maintains a
system of internal controls which are independently monitored and tested by
internal audit and loan review staff to ensure that the loss estimation model
is maintained in accordance with internal policies and procedures, as well as
generally accepted accounting principles. <br>
<br>
<u>CAPITAL RESOURCES</u><br>
<br>
Equity capital stood at $406.7 million at March 31, 2003, an increase of $5.3
million compared to December 31, 2002.&nbsp;
Dividends declared reduced equity by $9.1 million during the first three
months of 2003.&nbsp; The retained net income
of $4.2 million remained in permanent capital to fund future growth and
expansion.&nbsp; Payment by the Corporation's
Employee Stock Ownership Plan (&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 $167 thousand
during the first three months of 2003.&nbsp;
The market value adjustment to securities available for sale increased
equity by $608 thousand for the period.&nbsp;
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $207 thousand during 2003.&nbsp; Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.&nbsp; This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.<br>
<br>
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth 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 ability.&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.<br>
<br>
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.<br>
<br>
<br>
<br>
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>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></p>

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

<p><font size=3 face=Courier><br>
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, 2003:</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=center><font size=3
  face=Courier>Amount<br>
  <u>(in thousands)</u><br><br></font></p>
  </td>
  <td valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=center><font size=3
  face=Courier>Percent of<br>
  <u>Adjusted Assets</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;407,038</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>12.7%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>127,787</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>4.0&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>442,359</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>13.9&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>255,574</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>8.0&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>407,038</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>9.0&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>135,636</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3.0&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.&nbsp; At March 31, 2003,
the Corporation's banking and trust subsidiaries exceeded those requirements.<br>
<br>
ITEM 3.&nbsp; QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK<br>
<br>
Information appearing in Item 2 of this report under the caption &quot;Interest
Sensitivity&quot; is incorporated herein by reference in response to this item.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
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<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
28</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</font></p>

<p><font size=3 face=Courier><br>
ITEM 4. CONTROLS AND PROCEDURES<br>
<br>
(a) Disclosure controls and procedures.&nbsp;
Within 90 days before filing this report, we evaluated the effectiveness
of the design and operation of our disclosure controls and procedures.&nbsp; Our disclosure controls and procedures are
the controls and other procedures that we designed to ensure that we record,
process, summarize and report in a timely manner the information we must
disclose in reports that we file with or submit to the SEC.&nbsp; Joseph E. O'Dell, our President and Chief
Executive Officer, and John J. Dolan, our Executive Vice President and Chief
Financial Officer, reviewed and participated in this evaluation.&nbsp; Based on this evaluation, Messrs. O'Dell and
Dolan concluded that, as of the date of their evaluation, our disclosure
controls were effective.<br>
<br>
(b) Internal controls.&nbsp; Since the date
of evaluation described above, there have not been any significant changes in
our internal accounting controls or in other factors that could significantly
affect those controls.<br>
<br>
<br>
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<br>
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29</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>
PART II - OTHER INFORMATION</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  1.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>LEGAL
  PROCEEDINGS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>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.</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  2.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>CHANGES
  IN SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  3.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>DEFAULTS
  UPON SENIOR SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  4.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  5.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>OTHER
  INFORMATION</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>The
  Corporation's Chief Executive Officer and Chief Financial Officer have
  furnished to the SEC the certification with respect to this Form 10-Q that is
  required by Section 906 of the Sarbanes-Oxley Act of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  6.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>EXHIBITS
  AND REPORTS ON FORM 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(a)
  Exhibits</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.1 Employment Contract of Johnston A. Glass</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.2 Change of Control Agreement of Johnston A.<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Glass</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.3 Change of Control Agreement of Thaddeus J. <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Clements</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  99.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to 18 U.S.C. Section 1350 as adopted
  pursuant to Section<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 906 of the Sarbanes-Oxley Act of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  99.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to 18 U.S.C. Section 1350 as adopted
  pursuant to Section<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 906 of the Sarbanes-Oxley Act of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(b)
  Reports on Form 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Form
  8-K dated April 17, 2003 reporting the Corporation's <br>
  &nbsp;&nbsp;&nbsp;&nbsp;press release announcing its earnings for the three
  month<br>
  &nbsp;&nbsp;&nbsp; period ended March 31, 2003</font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; May 13, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Joseph
  E. O'Dell, President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; May 13, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>John
  J. Dolan, Executive Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

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

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

<p align=center><b><font size=3
face=Courier>CHIEF EXECUTIVE
OFFICER CERTIFICATION</font></b></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=734 colspan=2 valign=top>
  <p><font size=3 face=Courier>I,
  Joseph E. O'Dell, President and Chief Executive Officer, certify that:</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>1.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>I
  have reviewed this quarterly report on Form 10-Q of First Commonwealth
  Financial Corporation; </font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>2.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>Based
  on my knowledge, this quarterly report does not contain any untrue statement
  of a material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements
  were made, not misleading with respect to the period covered by this
  quarterly report;</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>3.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>Based
  on my knowledge, the financial statements, and other financial information
  included in this quarterly report, fairly present in all material respects
  the financial condition, results of operations and cash flows of the
  registrant as of, and for, the periods presented in this quarterly report;</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>4.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I are responsible for establishing
  and maintaining disclosure controls and procedures (as defined in Exchange
  Act Rules 13a-14 and 15d-14) for the registrant and we have:</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>a)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>designed
  such disclosure controls and procedures to ensure that material information
  relating to the registrant, including its consolidated subsidiaries, is made
  known to us by others within those entities, particularly during the period
  in which this quarterly report is being prepared;</font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>b)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>evaluated
  the effectiveness of the registrant's disclosure controls and procedures as
  of a date within 90 days prior to the filing date of this quarterly report
  (the &quot;Evaluation Date&quot;); and</font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>c)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>presented
  in this quarterly report our conclusions about the effectiveness of the
  disclosure controls and procedures based on our evaluation as of the
  Evaluation Date;</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>5.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
  of registrant's board of directors (or persons performing the equivalent
  function):</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>a)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>all
  significant deficiencies in the design or operation of internal controls
  which could adversely affect the registrant's ability to record, process,
  summarize and report financial data and have identified for the registrant's
  auditors any material weaknesses in internal controls; and </font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>b)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>any
  fraud, whether or not material, that involves management or other employees
  who have a significant role in the registrant's internal controls; and</font></p>
  </td>
 </tr>
</table>

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

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

<p>&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>6.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I have indicated in this quarterly
  report whether or not there were significant changes in internal controls or
  in other factors that could significantly affect internal controls subsequent
  to the date of our most recent evaluation, including any corrective actions
  with regard to significant deficiencies and material weaknesses. </font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=295 valign=top>
  <p><u><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May
  13, 2003&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=439 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=295 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p>
  </td>
  <td width=439 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signature</font></p>
  </td>
 </tr>
 <tr>
  <td width=295 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=439 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=295 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=439 valign=top>
  <p><u><font size=3 face=Courier>President
  and Chief Executive Officer</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=295 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=439 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title</font></p>
  </td>
 </tr>
</table>

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

<p align=center><b><font size=3
face=Courier>CHIEF FINANCIAL
OFFICER CERTIFICATION</font></b></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=734 colspan=2 valign=top>
  <p><font size=3 face=Courier>I,
  John J. Dolan, Executive Vice President and Chief Financial Officer, certify
  that:</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>1.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>I
  have reviewed this quarterly report on Form 10-Q of First Commonwealth
  Financial Corporation; </font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>2.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>Based
  on my knowledge, this quarterly report does not contain any untrue statement
  of a material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements
  were made, not misleading with respect to the period covered by this
  quarterly report;</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>3.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>Based
  on my knowledge, the financial statements, and other financial information
  included in this quarterly report, fairly present in all material respects
  the financial condition, results of operations and cash flows of the
  registrant as of, and for, the periods presented in this quarterly report;</font></p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=701 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>4.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I are responsible for establishing
  and maintaining disclosure controls and procedures (as defined in Exchange
  Act Rules 13a-14 and 15d-14) for the registrant and we have:</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>a)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>designed
  such disclosure controls and procedures to ensure that material information
  relating to the registrant, including its consolidated subsidiaries, is made
  known to us by others within those entities, particularly during the period
  in which this quarterly report is being prepared;</font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>b)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>evaluated
  the effectiveness of the registrant's disclosure controls and procedures as
  of a date within 90 days prior to the filing date of this quarterly report
  (the &quot;Evaluation Date&quot;); and</font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>c)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>presented
  in this quarterly report our conclusions about the effectiveness of the
  disclosure controls and procedures based on our evaluation as of the
  Evaluation Date;</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>5.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
  of registrant's board of directors (or persons performing the equivalent
  function):</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>a)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>all
  significant deficiencies in the design or operation of internal controls
  which could adversely affect the registrant's ability to record, process,
  summarize and report financial data and have identified for the registrant's
  auditors any material weaknesses in internal controls; and </font></p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=667 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=36 valign=top>
  <p><font size=3 face=Courier>b)</font></p>
  </td>
  <td width=667 valign=top>
  <p><font size=3 face=Courier>any
  fraud, whether or not material, that involves management or other employees
  who have a significant role in the registrant's internal controls; and</font></p>
  </td>
 </tr>
</table>

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

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

<p>&nbsp;</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=34 valign=top>
  <p><font size=3 face=Courier>6.</font></p>
  </td>
  <td width=701 valign=top>
  <p><font size=3 face=Courier>The
  registrant's other certifying officers and I have indicated in this quarterly
  report whether or not there were significant changes in internal controls or
  in other factors that could significantly affect internal controls subsequent
  to the date of our most recent evaluation, including any corrective actions
  with regard to significant deficiencies and material weaknesses. </font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=211 valign=top>
  <p><u><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;May
  13, 2003&nbsp;&nbsp;</font></u></p>
  </td>
  <td width=523 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&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;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=211 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date</font></p>
  </td>
  <td width=523 valign=top>
  <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;Signature</font></p>
  </td>
 </tr>
 <tr>
  <td width=211 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=211 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=523 valign=top>
  <p><u><font size=3 face=Courier>Executive
  Vice President and Chief Financial Officer</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=211 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=523 valign=top>
  <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;Title</font></p>
  </td>
 </tr>
</table>

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35</font></p>

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</html>
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{"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": "03698034"}, "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"}}
FORM 10-Q
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, 2003
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 12, 2003, was 59,004,133.
FIRST COMMONWEALTH FINANCIAL CORPORATION AND
SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
PAGE
Included in Part I of this report:
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..
28
ITEM 4.
CONTROLS AND PROCEDURES.....................................
29
PART II - OTHER INFORMATION
Other Information......................................................
30
Signatures.............................................................
31
Certification of Chief Executive Officer...............................
32
Certification of Chief Financial Officer...............................
34
Exhibits and Reports on Form 8K
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
March
  31,
2003
December
  31,
2002
ASSETS
Cash and due
  from banks on demand........................
$
82,252
$
81,114
Interest-bearing
  bank deposits...........................
1,880
1,973
Securities
  available for sale, at market.................
1,517,975
1,482,771
Securities held
  to maturity, at cost,(Market value $177,643 in
2003 and $204,887 in 2002).............................
170,648
197,838
Loans....................................................
2,650,597
2,609,440
Unearned
  income........................................
(725)
(806)
Allowance
  for credit losses............................
(35,321)
(34,496)
Net
  loans..........................................
2,614,551
2,574,138
Premises and
  equipment...................................
44,877
45,730
Other real
  estate owned..................................
1,862
1,651
Goodwill.................................................
8,131
8,131
Amortizing
  intangibles, net..............................
22
29
Other assets.............................................
133,259
131,368
Total
  assets...........................................
$
4,575,457
$
4,524,743
LIABILITIES
Deposits (all
  domestic):
Noninterest-bearing....................................
$
364,495
$
377,466
Interest-bearing.......................................
2,782,640
2,666,658
Total
  deposits.......................................
3,147,135
3,044,124
Short-term
  borrowings....................................
408,725
469,065
Other
  liabilities........................................
33,699
30,230
Company
  obligated mandatorily redeemable capital securities of
subsidiary trust.......................................
35,000
35,000
Other long-term
  debt.....................................
544,230
544,934
Total
  long-term debt.................................
579,230
579,934
Total
  liabilities....................................
4,168,789
4,123,353
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,
62,525,408 shares issued; 58,997,787 and 58,962,543
  shares outstanding
at March 31, 2003 and December 31, 2002 respectively...
62,525
62,525
Additional
  paid-in capital...............................
64,683
64,885
Retained earnings........................................
300,324
296,165
Accumulated
  other comprehensive income...................
26,459
25,851
Treasury stock
  (3,527,621 shares at March 31, 2003 and 3,562,869 at
December 31, 2002, at cost)............................
(44,536)
(44,981)
Unearned ESOP
  shares.....................................
(2,787)
(3,055)
Total
  shareholders' equity.............................
406,668
401,390
Total
  liabilities and shareholders' equity.............
$
4,575,457
$
4,524,743
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)
For
  the Quarter
Ended March 31,
2003
2002
Interest Income
Interest and
  fees on loans...............................
$
42,029
$
45,327
Interest and
  dividends on investments:
Taxable
  interest.......................................
17,156
22,238
Interest
  exempt from Federal income taxes..............
2,523
2,392
Dividends..............................................
602
552
Interest on
  Federal funds sold...........................
1
3
Interest on
  bank deposits................................
6
11
Total
  interest income..................................
62,317
70,523
Interest Expense
Interest on
  deposits.....................................
15,797
21,321
Interest on
  short-term borrowings........................
1,552
1,765
Interest on
  company obligated mandatorily redeemable capital
securities of subsidiary trust.........................
831
831
Interest on
  other long-term debt.........................
7,291
8,564
Total
  interest on long-term debt.......................
8,122
9,395
Total
  interest expense.................................
25,471
32,481
Net Interest Income.................................
36,846
38,042
Provision for
  credit losses..............................
3,460
2,917
Net interest income after provision for credit losses
33,386
35,125
Other Income
Securities
  gains.........................................
2,234
39
Trust income.............................................
1,185
1,213
Service charges
  on deposit accounts......................
2,849
2,693
Insurance
  commissions....................................
797
856
Income from
  bank owned life insurance....................
1,046
1,069
Other income.............................................
2,960
2,519
Total
  other income.....................................
11,071
8,389
Other Expenses
Salaries and
  employee benefits...........................
15,335
14,643
Net occupancy
  expense....................................
1,974
1,686
Furniture and
  equipment expense..........................
2,552
2,398
Data processing
  expense..................................
527
442
Pennsylvania
  shares tax expense..........................
1,060
995
Intangible
  amortization..................................
7
120
Litigation
  settlement (recovery).........................
(610)
8,000
Other operating
  expenses.................................
6,927
7,159
Total
  other expenses...................................
27,772
35,443
Income before income taxes..........................
16,685
8,071
Applicable
  income taxes..................................
3,381
433
Net income..........................................
$
13,304
$
7,638
Average Shares Outstanding.................................
58,703,260
58,142,359
Average Shares Outstanding
  Assuming Dilution...............
58,934,248
58,484,806
Per Share Data:
Basic earnings
  per share.................................
$
0.23
$
0.13
Diluted
  earnings per share...............................
$
0.23
$
0.13
Cash dividends
  per share.................................
$
0.155
$
0.150
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
  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
Balance
  December 31, 2002..........
$
62,525
$
64,885
$
296,165
$
25,851
$
(44,981)
$
(3,055)
$
401,390
Comprehensive
  income
Net
  income.......................
-0-
-0-
13,304
-0-
-0-
-0-
13,304
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.....
-0-
-0-
-0-
2,045
-0-
-0-
2,045
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(1,437)
-0-
-0-
(1,437)
Total
  other comprehensive income.
-0-
-0-
-0-
608
-0-
-0-
608
Total
  comprehensive income.........
‑0-
-0-
13,304
608
-0-
-0-
13,912
Cash
  dividends declared............
-0-
-0-
(9,145)
-0-
-0-
-0-
(9,145)
Decrease
  in unearned ESOP shares...
-0-
-0-
-0-
-0-
-0-
268
268
Discount
  on dividend reinvestment plan purchases
-0-
(167)
-0-
-0-
-0-
-0-
(167)
Treasury
  stock reissued............
-0-
(35)
-0-
-0-
445
-0-
410
Balance
  at March 31, 2003..........
$
62,525
$
64,683
$
300,324
$
26,459
$
(44,536)
$
(2,787)
$
406,668
5
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For
  the 3 Months
Ended March 31,
2003
2002
Operating Activities
Net income...............................................
$
13,304
$
7,638
Adjustments to
  reconcile net income to net cash provided by operating
activities:
Provision
  for credit losses ...........................
3,460
2,917
Depreciation
  and amortization..........................
1,810
1,836
Net
  losses (gains) on sales of assets..................
(2,213)
179
Income
  from increase in cash surrender value of bank owned life insurance
(1,046)
(1,068)
Decrease
  in interest receivable........................
1,925
838
Decrease
  in interest payable...........................
(1,263)
(1,245)
Increase
  in income taxes payable.......................
4,111
476
Change
  in deferred taxes...............................
(731)
(49)
Other-net..............................................
(1,572)
3,912
Net
  cash provided by operating activities............
17,785
15,434
Investing Activities
Transactions
  with securities held to maturity:
Proceeds
  from sales....................................
-0-
-0-
Proceeds
  from maturities and redemptions...............
27,216
28,937
Purchases..............................................
-0-
(15,241)
Transactions
  with securities available for sale:
Proceeds
  from sales....................................
37,753
3,200
Proceeds
  from maturities and redemptions...............
240,971
114,941
Purchases..............................................
(310,785)
(90,617)
Proceeds from
  sales of loans and other assets............
29,922
5,037
Acquisition of
  affiliate, net of cash received...........
-0-
8
Investment in
  bank owned life insurance..................
-0-
(5,000)
Net decrease in
  time deposits with banks.................
93
2,971
Net increase in
  loans....................................
(74,061)
(29,039)
Purchases of
  premises and equipment......................
(892)
(1,776)
Net
  cash provided (used) by investing activities.......
(49,783)
13,421
Financing Activities
Repayments of
  other long-term debt.......................
(10,436)
(306)
Proceeds from
  issuance of other long-term debt...........
10,000
18,200
Discount on
  dividend reinvestment plan purchases.........
(167)
(157)
Dividends paid...........................................
(9,139)
(8,768)
Net increase
  (decrease) in Federal funds purchased.......
16,100
(65,579)
Net (decrease)
  in other short-term borrowings............
(76,440)
(20,171)
Net increase in
  deposits.................................
103,011
11,403
Proceeds from
  sale of treasury stock.....................
207
1,229
Net
  cash provided (used) by financing activities.......
33,136
(64,149)
Net
  increase (decrease) in cash and cash equivalents...
1,138
(35,294)
Cash and cash
  equivalents at January 1...................
81,114
98,130
Cash and cash
  equivalents at March 31....................
$
82,252
$
62,836
The
accompanying notes are an integral part of these consolidated financial
statements.
6
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003
(Unaudited)
NOTE 1 Management Representation
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries ("the
Corporation").  All significant
intercompany transactions and balances have been eliminated.  The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.  The preparation of
financial statements in conformity with generally accepted accounting principles
requires management to make estimates, assumptions and judgments that affect
the amounts reported in the financial statements and accompanying notes.  Actual realized amounts could differ from
those estimates.  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, 2003 and the results of
operations for the three month periods ended March 31, 2003 and 2002, and
statements of cash flows and changes in shareholders' equity for the three
month periods ended March 31, 2003 and 2002. 
The results of operations for the three months ended March 31, 2003 and
2002 are not necessarily indicative of the results that may be expected for the
full year or any other interim period. 
These interim financial statements should be read in conjunction with
the Corporation's 2002 Annual Report on Form 10-K which is available on the
Corporation's website at http://www.fcbanking.com.  The Corporation's website also provides additional information of
interest to investors and clients, including other regulatory filings made to
the Securities and Exchange Commission, press releases, historical stock
prices, dividend declarations and corporate governance, as well as information
about products and services offered through the Corporation's banking,
insurance, trust and financial management subsidiaries.
NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)
2003
2002
Cash
  paid during the first three months of the year for:
Interest
$
26,734
$
33,726
Income
  Taxes
-0-
-0-
Noncash
  investing and financing activities:
ESOP
  loan reductions
$
268
$
268
Loans
  transferred to other real estate owned and
repossessed assets
$
1,247
$
2,109
Gross
  increase (decrease) in market value
adjustment to securities available for sale
$
935
$
(4,327)
Treasury
  stock reissued for business combination
$
-0-
$
812
7
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003
(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
Shareholder's Equity: (dollar amounts in thousands)
March
  31, 2003
March
  31, 2002
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
$
3,145
$
(1,100)
$
2,045
$
(4,287)
$
1,500
$
(2,787)
Less: reclassification
adjustment for gains realized
in net income
(2,210)
773
(1,437)
(40)
14
(26)
Net unrealized gains (losses)
935
(327)
608
(4,327)
1,514
(2,813)
Other comprehensive income
$
935
$
(327)
$
608
$
(4,327)
$
1,514
$
(2,813)
NOTE 4 Accounting for Stock Options Granted
In December 2002, the Financial Accounting Standards Board ("FASB")
issued Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure" ("FAS No. 148").  FAS No. 148 amended FASB Statement No. 123
"Accounting for Stock-Based Compensation" ("FAS No. 123")
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.  FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, "Interim Financial
Reporting" ("APB 28"), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.  FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 "Accounting for Stock Issued to
Employees" ("APB 25"). 
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.  Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.  As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.  No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.
8
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003
(Unaudited)
NOTE 4 Accounting for Stock Options Granted
(continued)
The following table illustrates the effect on net income and earnings per share
if the Corporation had applied the fair value recognition provisions of FAS No.
123 to stock-based employee compensation:
(Dollar
  amounts in thousands,
except per share data)
Three months ended
March 31,
2003
2002
Net
  Income, as reported
$
13,304
$
7,638
Deduct:
  Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects
$
(338)
$
(570)
Pro
  forma net income
$
12,966
$
7,068
Earnings
  per share:
Basic
  - as reported
$
0.23
$
0.13
Basic
  - pro forma
$
0.22
$
0.12
Diluted
  - as reported
$
0.23
$
0.13
Diluted
  - pro forma
$
0.22
$
0.12
Note 5 Restructuring Charges
The Corporation incurred restructuring charges of $6,140 thousand during the
second, third and fourth quarters of 2002 in accordance with EITF 94-3.  These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.  The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.  Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies. 
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.  During the first quarter of 2003, monthly
severance payments totaling $929 thousand were made, reducing the outstanding
severance liability to $2,460 thousand at March 31, 2003.  No additional severance accruals or
adjustments were recorded during the first quarter of 2003.
9
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003
(Unaudited)
NOTE 6 New Accounting Pronouncements
In July 2002, the FASB issued statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities" ("FAS No.
146").  FAS No. 146 replaced EITF
Issue No. 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring)."  The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.  Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.  Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations.
In November 2002, the FASB issued FASB Interpretation No. 45 ("FIN
45"), "Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others". 
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee, and
the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.  The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.  This
interpretation expands the disclosures to be made by the guarantor in its
financial statements about its obligation under certain guarantees and requires
the guarantor to recognize a liability for the fair value of an obligation
assumed under a guarantee.  FIN 45
clarifies the requirements of FASB Statement No. 5 ("FAS No. 5")
"Accounting for Contingencies", relating to guarantees.  In general, FIN 45 applies to contracts or
indemnification agreements that contingently require the guarantor to make
payments to the guaranteed party based on changes in an underlying that is
related to an asset, liability, or equity security of the guaranteed
party.  Certain guarantee contracts are
excluded from both the disclosure and recognition requirements of this
interpretation, including, but not limited to, guarantees related to employee
compensation, residual value guarantees under capital lease arrangements,
commercial letters of credit, loan commitments, subordinated interests in
special purpose entities and guarantees of a company's own future
performance.  Other guarantees are
subject to the disclosure requirements of FIN 45 but not the recognition
provisions and include, among others, a guarantee accounted for as a derivative
instrument under FAS No. 133, a parent's guarantee of debt owed to a third
party by its subsidiary or vice versa and a guarantee which is based on
performance not price.  Guarantees that
have been entered into by the Corporation are disclosed in NOTE 7.  The adoption of FIN 45 did not have a
material impact on the Corporation's financial condition or results of
operations.
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46"), "Consolidation of Variable Interest Entities", the
provisions of which became effective upon issuance.  As defined by FIN 46 a variable interest entity ("VIE")
is a corporation, partnership, trust or any other legal structure used for
business purposes that either (a) does not have equity
10
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2003
(Unaudited)
NOTE
6 New Accounting Pronouncements
(continued)
investors with voting rights or (b) has equity investors that do not provide
sufficient financial resources for the entity to support its activities.  This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.  Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur. 
The Corporation has reviewed its current business interests in order to
determine the impact of FIN 46 and has determined that no additional business
interests require consolidation in the Corporation's financial statements.  The adoption of FIN 46 therefore did not
have any impact on the Corporation's financial condition or results of
operations.
In April 2003, the FASB issued Statement No. 149 "Amendment of Statement
133 on Derivative Instruments and Hedging Activities" ("FAS No.
149").  FAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under
Statement 133.  In particular, FAS No.
149 clarifies under what circumstances a contract with an initial net
investment meets the characteristic of a derivative and when a derivative
contains a financing component that warrants special reporting in the statement
of cash flows.  This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.  The adoption of FAS No. 149 is not expected to have a material
impact on the Corporation's financial condition or results of operations.
NOTE 7 Guarantees
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.  The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.  In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.  The table
below identifies the notional amounts of these guarantees at March 31, 2003:
Financial
  standby letters of credit
$
24,363
Performance
  standby letters of credit
$
6,862
The current notional amounts outstanding above include financial standby
letters of credit of $565 thousand and performance standby letters of credit of
$123 thousand issued during the first quarter of 2003.  There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.
11
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS (continued)
RESULTS OF OPERATIONS
First Three Months of 2003 as Compared to the
First Three Months of 2002
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 including its
subsidiaries (the "Corporation"). 
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and expectations
based on information currently available and may contain the words
"expect," "estimate," "project,"
"anticipate," "should," "intend,"
"probability," "risk," "target," and similar
expressions.  These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:  changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.  Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.  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 2003 was $13.3 million reflecting an
increase of $5.7 million compared to 2002 results of $7.6 million.  Net income for the 2002 period included an
$8.0 million litigation settlement ($5.2 million net of tax) while the 2003
period includes a partial recovery from insurance for that claim in the amount
of $610 thousand ($397 thousand net of tax). 
This settlement related to a lender liability action filed in 1994
against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.  The first quarter of 2003 includes
securities gains of $2.2 million compared to securities gains of $39 thousand
for the first quarter of 2002.  Diluted
earnings per share were $0.23 for the first quarter of 2003 compared to $0.13
for the first quarter of 2002.
The
following is an analysis of the impact of changes in net income on diluted
earnings per share:
Net
  income per share, prior year
$
0.13
Increase
  (decrease) from changes in:
Net
  interest income
(0.03)
Provision
  for credit losses
(0.01)
Security
  transactions
0.04
Other
  income
0.01
Salaries
  and employee benefits
(0.01)
Litigation
  settlement
0.15
Applicable
  income taxes
(0.05)
Net
  income per share
$
0.23
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 2003 as Compared to the
First Three Months of 2002
(continued)
Return on average assets was 1.19% and return on average equity was 13.15% for
the first quarter of 2003 compared to 0.68% and 8.09%, respectively, for the
first quarter of 2002.
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
declined $1.2 million for the first quarter of 2003 compared to the first
quarter of 2002, primarily as earning asset yields declined faster than funding
costs.  Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) was 3.78% for the three months of 2003 compared to 3.82% for the three
months of 2002.  Continued low or
declining interest rates would tend to further strain net interest income due
to low reinvestment rates and accelerated prepayments of certain loans and
investments.
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)
2003 Change From 2002
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
(5)
$
(2)
$
(3)
Securities
(4,901)
(1,475)
(3,426)
Federal
  funds sold
(2)
(2)
-0-
Loans
(3,298)
253
(3,551)
Total
  interest income
(8,206)
(1,226)
(6,980)
Interest-bearing
  liabilities:
Deposits
(5,524)
(465)
(5,059)
Short-term
  borrowings
(213)
278
(491)
Long-term
  debt
(1,273)
(1,263)
(10)
Total
  interest expense
(7,010)
(1,450)
(5,560)
Net
  interest income
$
(1,196)
$
224
$
(1,420)
Interest
and fees on loans declined $3.3 million for the first quarter of 2003 compared
to 2002 levels as loan yields declined in the lower interest rate
environment.  The total yield on loans
for the first quarter of 2003 was 6.70%, compared to loan yields of 7.30% for
the first quarter of 2002.  Average
loans for the first three months of 2003 rose $64.1 million compared to
averages for the first three months of 2002 as increases in commercial loans,
municipal loans and indirect installment loans were partially offset by
decreases in average mortgage loans. 
The Corporation
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 2003 as Compared to the
First Three Months of 2002
(continued)
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration ("SBA") lender status.  The Corporation was one of the top small
business lenders in Pennsylvania during the past two years.  The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.  Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.  The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.
Interest income on investments declined $4.9 million for the first quarter of
2003 compared to the first quarter of 2002 reflecting decreases due to interest
rates of $3.4 million combined with decreases due to investment volumes of $1.5
million.  Total yield on investments was
5.29% for the first three months of 2003 compared to 6.14% for the same period
of 2002.  Declines in interest income
due to rate for U.S. government agency securities were $2.9 million as yields
on U.S. government agency securities decreased 112 basis points (1.12%) for the
2003 period compared to the corresponding period of 2002.  Average investments for the first quarter of
2003 included decreases in average U.S. government agencies of $51.2 million
and average asset backed securities of $73.3 million which reduced interest
income for the first quarter of 2003 by $760 thousand and $1.1 million compared
to 2002 levels.
Interest on deposits dropped $5.5 million for the 2003 period compared to 2002
primarily due to decreases in interest expense due to interest rates of $5.1
million.  Deposit costs were 2.09% for
the first quarter of 2003 compared to 2.80% for the first quarter of 2002.  The rate on savings deposits fell 48 basis
points (0.48%) resulting in a decrease to interest expense of $1.3 million for
the first three months of 2003 compared to the first three months of 2002.  The rate on time deposits for 2003 also
declined, down 94 basis points (0.94%) compared to 2002 levels, resulting in a
decrease to interest expense of $3.7 million for the first quarter of
2003.  Interest on deposits also
reflected decreases due to volumes for 2003 as average deposits for the first
quarter of 2003 declined $19.7 million compared to the first quarter of
2002.  The Corporation's deposit mix
also changed for the first quarter of 2003 as clients registered a preference
for savings deposits during continuing economic uncertainties.  Average savings deposits increased $73.2
million for 2003 compared to 2002 averages while average time deposits dropped
$70.9 million over the same time frame. 
During its management of deposit levels and mix the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.
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 2003 as Compared to the
First Three Months of 2002
(continued)
Interest expense on short-term borrowings decreased $213 thousand for the three
months of 2003 compared to the three months of 2002 as decreases in interest
expense due to rate of $491 thousand were partially offset by increases in
interest expense due to volume of $278 thousand compared to 2002 levels.  The cost of short-term borrowings for the
2003 period decreased by 47 basis points (0.47%) compared to 2002 costs of
1.87%.  The average balance of
short-term borrowings for the first quarter of 2003 increased by $66.2 million
over averages for the prior year, primarily as a result of increased
utilization of short-term borrowing from the Federal Home Loan Bank.
Interest expense on long-term debt decreased $1.3 million for the first quarter
of 2003 compared to the corresponding period of 2002, primarily as a result of
volume decreases.  Average long-term
debt for the three months of 2003 decreased by $90.0 million compared to 2002
averages.
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.  The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.  The provision for credit losses was $3.5
million for the three months of 2003 compared to $2.9 million for the three
months of 2002.  Net charge-offs against
the allowance for credit losses were $2.6 million, reflecting a decrease of
$361 thousand compared to net charge-offs for the 2002 period.  The most significant components of this
year-to-year change were decreases in the following categories: residential
mortgages (down $95 thousand), commercial loans not secured by real estate
(down $411 thousand) and loans to individuals (down $408 thousand.)  These decreases in net charge-offs for the
first quarter of 2003 were partially offset by increases in net charge-offs for
construction loans and commercial real estate loans of $377 thousand and $248
thousand, respectively compared to the corresponding period of 2002.  Net charge-offs as a percent of average
loans outstanding were 0.10% for the first quarter of 2003 compared to 0.12%
for the first quarter of 2002.  The
provision for credit losses as a percent of net charge-offs was 131.31% at
March 31, 2003 compared to 102.85% at December 31, 2002 and 97.36% at March 31,
2002.  See the "Credit Review"
section for any 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 2003 as Compared to the
First Three Months of 2002
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
three month periods ended March 31, 2003 and 2002:
2003
2002
(amounts in thousands)
Balance
  January 1,
$
34,496
$
34,157
Loans
  charged off:
Commercial,
  financial and agricultural
1,268
1,231
Real
  estate-construction
378
1
Real
  estate-commercial
419
171
Real
  estate-residential
336
434
Loans
  to individuals
659
1,199
Lease
  financing receivables
114
144
Total
  loans charged off
3,174
3,180
Recoveries
  of previously charged off loans:
Commercial,
  financial and agricultural
368
34
Real
  estate-construction
0
0
Real
  estate-commercial
0
0
Real
  estate-residential
0
3
Loans
  to individuals
171
147
Lease
  financing receivables
0
0
Total
  recoveries
539
184
Net
  charge offs
2,635
2,996
Provision
  charged to operations
3,460
2,917
Balance
  March 31,
$
35,321
$
34,078
Net
securities gains were $2.2 million during the first three months of 2003
compared to $39 thousand for the first three months of 2002.  Securities gains during the 2003 period
resulted primarily from the sale of fixed rate corporate bonds classified as
securities "available for sale" with book values of $34.5 million and
Pennsylvania bank stocks with book values of $1.1 million.  The corporate bonds sold during 2003 had an
average remaining life of one year and the proceeds were reinvested in
adjustable rate trust preferred securities with maturities of 30 years and
mortgage backed securities with an average life of 3.6 years.  This reinvestment strategy was initiated to
partially mitigate the Corporation's exposure to low and declining interest
rates.
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 2003 as Compared to the
First Three Months of 2002
(continued)
Trust income for the first quarter of 2003 was relatively stable when compared
to the first quarter of 2002 and although fee revenue continues to be
negatively impacted by low market values, the enhanced referral programs and
integrated growth plans for financial affiliates that have been initiated have
helped to offset this trend.  The
Corporation's continued success in building relationships with commercial
clients provides fee based affiliates with additional sales opportunities
through the "Total Solutions Financial Management" ("TSFM")
process.  This strategy combines products,
services and professional staff from the Corporation's trust, insurance,
financial advisory and banking affiliates and partners them in providing
comprehensive financial services offerings.
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $156 thousand for the first three months of
2003 compared to the corresponding period of 2002.  Increases in insufficient funds fees "NSF" of $353 thousand
for the first quarter of 2003 were partially offset by decreases in selected
fees related to certain transaction accounts compared to 2002 levels.  Management strives to implement reasonable
fees for services and closely monitors collection of those fees.
Insurance commissions fell $59 thousand for the 2003 period as decreases in
annuity and credit insurance revenues were larger than the increases that were
generated in all other insurance categories. 
As part of the previously discussed TSFM process the Corporation's
insurance subsidiary will continue to have expanded opportunities to meet the
insurance needs of commercial clients. 
In addition, the Corporation has developed "FOCUS" a financial
planning tool designed to help clients prioritize and assess their financial
needs.  The "FOCUS" concept results
in a systematic approach covering a wide range of personal financial goals
including appropriate insurance coverage.
Other income for the first three months of 2003 rose $441 thousand from the
$2.5 million reported for the first three months of 2002.  Other income for the first quarter of 2003
included increases in STAR interchange fees, merchant discount and gains on
sale of mortgages of $387 thousand, $198 thousand and $109 thousand,
respectively versus 2002 results.  Other
income for the 2003 period included decreases in debit card interchange fees,
and gains on sale of foreclosed property.
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 2003 as Compared to the
First Three Months of 2002
(continued)
Noninterest expense was $27.8 million for the three months of 2003 reflecting a
decrease of $7.6 million from the 2002 level of $35.4 million, primarily
reflecting the effects of the previously mentioned litigation settlement.  The 2002 period includes the $8.0 million
litigation charge while the 2003 period includes a $610 thousand recovery from
insurance coverage related to the settlement. 
Employee costs were $15.3 million for the first three months of 2003,
representing an increase of $692 thousand 
over 2002 levels.  Salary costs
for the first quarter of 2003 increased $302 thousand or 2.7% compared to 2002
levels of $11.2 million.  Salary costs
for 2003 include on-going savings resulting from the merger of the
Corporation's banking subsidiaries under one charter and the consolidation of
support functions which caused some staff positions to be eliminated during
2002.  These staffing reductions were
part of the corporate restructuring initiative which also provided severance
benefits to affected employees. 
Severance costs were expensed as incurred during 2002 while monthly cash
payments for some individuals continue during 2003.  Employee benefit costs rose $390 thousand or 11.4% for the first
quarter of 2003 with the largest increase being hospitalization costs, which
were up $257 thousand or 21.7%.  The
Corporation continues to evaluate its current menu of employee benefits to
provide a competitive benefits package while also managing costs.  Current benefit options include coverages
fully paid for by the employer, as well as voluntary benefits whereby employees
have the option of purchasing additional benefits at reduced group rates.
Net occupancy expense increased $288 thousand for the first quarter of 2003 and
included increases in building repairs and maintenance, utilities and net
rental expense compared to 2002 costs. 
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.  The Corporation is actively evaluating its branch delivery
network to optimize client service in existing branches and to continue
expansion into growth markets.  The
execution of these initiatives may impact occupancy and other expenses in
future periods.  Increases in furniture
and equipment expenses of $154 thousand for the first quarter of 2003 resulted
primarily from increases in computer software depreciation and software
maintenance combined with increases in depreciation on furniture and equipment
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 2003 as Compared to the
First Three Months of 2002
(continued)
Other operating expenses for the 2003 period were $6.9 million reflecting a
decrease of $232 thousand (3.2%) from the 2002 amount of $7.2 million.  The first three months of 2003 included
decreases in loss on sale of assets (primary lease vehicles), other
professional fees and telephone expenses of $144 thousand, $191 thousand and
$160 thousand, respectively compared to 2003 costs.  Directors' fees for the 2003 period reflected decreases of $118
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002. 
The first quarter of 2003 included an increase in charge card
interchange charges of $174 thousand compared to the first quarter of
2002.  Advertising and promotion costs
for 2003 reflected increases totaling $189 thousand, primarily as a result of
continued promotion of the Corporation's brand and identity launched during the
fourth quarter of 2002, as well as on-going marketing campaigns for free
checking products introduced during 2002. 
These free checking 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 increased $2.9 million for the first quarter of 2003
compared to the first quarter of 2002. 
The 2002 period included a $2.8 million tax effect related to the $8.0
million litigation settlement recorded during 2002.  The Corporation's effective tax rate was 20.3% for the first
three months of 2003 compared to 5.4% for the corresponding period of 2002.
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 the banking subsidiary's core deposit base 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 use of lines available for repurchase
agreements, and borrowings from the Federal Reserve Bank.  Additionally, the banking subsidiary is a
member 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.  In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources. 
The Corporation maintains a liquidity management policy to manage this
risk.  This policy identifies the
primary sources of liquidity, establishes procedures for
19
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
monitoring and measuring liquidity and quantifies minimum liquidity
requirements which comply with regulatory requirements.  The policy also includes a liquidity
contingency plan to address funding needs to maintain liquidity under a variety
of business conditions.  The
Corporation's liquidity position is monitored by the Asset/Liability Management
Committee ("ALCO").
At March 31, 2003 total earning assets were $4,340.4 million, up from the
$4,291.2 million recorded at December 31, 2002.  Net loans increased $40.4 million for the first three months of
2003 as commercial loans increased by $38.2 million and municipal loans
increased by $25.1 million compared to year-end 2002, while loans to
individuals increased by $8.2 million over the same time frame.  The first quarter of 2003 reflected
decreases of $31.1 million in residential real estate loans, due in part to the
continued run-off of the existing portfolio and sale of new loan production as
the Corporation continues to change its loan mix.  The Corporation's auto lease portfolio also continues to decline
as focus shifts from indirect leasing to indirect lending activities.  Total deposits increased $103.0 million for
the first three months of 2003 as increases in time deposits of $112.9 million
and total savings deposits of $3.1 million were partially offset by decreases
in demand deposits of $13.0 million compared to year-end 2002.  Included in time deposits for the first
quarter of 2003 were $100 million of brokered deposits with a weighted average
term of 27 months.  Proceeds from the
issuance of brokered deposits were utilized to pay down short-term borrowings,
which declined $60.3 million during the first quarter of 2003 to $408.7 million
at March 31, 2003.
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,
2003, securities available for sale had an amortized cost of $1,477.3 million
and an approximate fair value of $1,518.0 million.
Interest Sensitivity
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.  The
Corporation's market risk is composed primarily of interest rate risk.  Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.
20
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
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.
The cumulative gap at the 365 day repricing period was negative in the amount
of $156.4 million or 3.42% of total assets at March 31, 2003.  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
maturity certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.
21
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
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, 2003, and December 31, 2002 (dollar amounts in thousands):
March
  31, 2003
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,015,538
$
150,085
$
305,799
$
1,471,422
Investments
329,697
155,524
243,269
728,490
Other interest-earning assets
1,880
0
0
1,880
Total interest-sensitive assets
1,347,115
305,609
549,068
2,201,792
Certificates of deposit
255,812
160,025
355,135
770,972
Other deposits
1,175,628
0
0
1,175,628
Borrowings
409,572
562
1,499
411,633
Total interest-sensitive liabilities
1,841,012
160,587
356,634
2,358,233
Gap
$
(493,897)
$
145,022
$
192,434
$
(156,441)
ISA/ISL
0.73
1.90
1.54
0.93
Gap/Total assets
10.79%
3.17%
4.21%
3.42%
December
  31, 2002
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
962,398
$
157,172
$
295,273
$
1,414,843
Investments
292,206
162,578
262,287
717,071
Other interest-earning assets
1,973
0
0
1,973
Total interest-sensitive assets
1,256,577
319,750
557,560
2,133,887
Certificates of deposits
354,625
170,687
263,882
789,194
Other deposits
1,172,538
0
0
1,172,538
Borrowings
469,735
905
1,483
472,123
Total interest-sensitive liabilities
1,996,898
171,592
265,365
2,433,855
Gap
$
(740,321)
$
148,158
$
292,195
$
(299,968)
ISA/ISL
0.63
1.86
2.10
0.88
Gap/Total assets
16.36%
3.27%
6.46%
6.63%
22
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
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, and as a result may not accurately predict the impact
of changes in general levels of interest rates or net interest income.  This is exemplified as the gap analysis
shows the Corporation's earnings to be negatively impacted by rising rates, but
computer modeling indicates that rising rates would have a favorable impact on earnings.  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 a 100 basis
point movement downward which cannot result in more than a 7.5% change or 5.0%
change, respectively, in net interest income when compared to the 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, 2003 indicated that a 300 basis point (3.00%)
increase in interest rates would increase net interest income 318 basis points
(3.18%) above the base case scenario and a 100 basis point (1.00%) decline in
interest rates would decrease net interest income by 315 basis points (3.15%)
below the base case scenario, over the next twelve months, both within policy
limits.
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 sales,
asset and liability pricing and matched maturity funding.  The ALCO
23
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
strategies are established by the Corporation's senior management.  The ALCO continues to evaluate the use of
derivative instruments to protect against the risk of adverse price or interest
rate movements on the values of certain assets and liabilities, although none
are being utilized currently.
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 loans which
terms have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.
At March 31,
2003
2002
(amounts in thousands)
Nonperforming
  Loans
:
Loans
  on nonaccrual basis
$
22,982
$
24,589
Past
  due loans
13,007
15,594
Renegotiated
  loans
205
827
Total
  Nonperforming loans
$
36,194
$
41,010
Other
  real estate owned
$
1,862
$
2,106
Loans
  outstanding at end of period
$
2,649,872
$
2,587,925
Average
  loans outstanding (year-to-date)
$
2,633,040
$
2,568,911
Nonperforming
  loans as percent of total loans
1.37%
1.58%
Provision
  for credit losses
$
3,460
$
2,917
Net
  charge-offs
$
2,635
$
2,996
Net
  charge-offs as a percent of average loans outstanding
0.10%
0.12%
Provision
  for credit losses as a percent of net charge-offs
131.31%
97.36%
Allowance
  for credit losses as a percent of average loans outstanding
1.34%
1.33%
Allowance
  for credit losses as a percent of end-of-period loans outstanding
1.33%
1.32%
Allowance
  for credit losses as a percent of nonperforming loans
97.59%
83.10%
24
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
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.
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at March 31,
2003 and March 31, 2002:
2003
2002
(amounts in thousands)
Recorded
  investment in impaired loans at end
of period
$
23,187
$
25,416
Year
  to date average balance of impaired loans
$
23,266
$
24,532
Allowance
  for credit losses related to
impaired loans
$
5,791
$
4,480
Impaired
  loans with an allocation of the
allowance for credit losses
$
15,675
$
13,816
Impaired
  loans with no allocation of the allowance
for credit losses
$
7,512
$
11,600
Year
  to date income recorded on impaired loans
on a cash basis
$
140
$
134
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, 2003, there were no
significant concentrations of credit.
Nonperforming loans at March 31, 2003 decreased $4.8 million compared to 2002
levels as nonaccrual loans, past due loans and renegotiated loans decreased
compared to March 31, 2002.  The
decrease in nonaccrual loan levels of $1.6 million included decreases in
nonaccrual commercial loans which were partially offset by increases in
nonaccrual commercial loans secured by residential real estate.  Nonaccrual loans include two
25
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
significant credits in both periods. 
The largest credit ($6.1 million) carries an 80% guaranty of a U.S.
government agency.  While a sale of the
underlying assets is pending, delays with the bankruptcy court would result in
the final sale and resolution of the remaining balance occurring in the third
quarter of 2003.  The second credit
which was $3.1 million at March 31, 2003, continues to be resolved through the
liquidation of collateral and exercising other remedies.  While final resolution of this credit is
uncertain, management's estimate of the potential loss on this credit is
reserved.
Past due loans for the 2003 period decreased $2.6 million compared to the
corresponding period of 2002 and included decreases in all major
categories.  Renegotiated loans also
fell, decreasing by $622 thousand for the 2003 period.  Nonperforming loans as a percent of total
loans was 1.37% at March 31, 2003 compared to 1.47% at December 31, 2002, and
1.58% at March 31, 2002, while the allowance for credit losses as a percent of
nonperforming loans was 97.59%, 89.76% and 83.10%, respectively for the same
periods.
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.  This process
includes close monitoring of watchlist credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.  Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses which are inherent in the loan and lease portfolios
at each balance sheet date.  Management
reviews the adequacy of the allowance on a quarterly basis to ensure that the
provision for credit losses has been charged against earnings in an amount
necessary to maintain the allowance at a level that is appropriate based on
management's assessment of probable estimated losses.  The Corporation's methodology for assessing the appropriateness
of the allowance for credit losses consists of several key elements.  These elements include a specific allowance
for primary watch list classified loans, a formula allowance based on
historical trends, an additional allowance for special circumstances and an
unallocated allowance.
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits. 
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss  provisions may be necessary
due to changes in management estimates and assumptions about asset impairment,
information about borrowers that
26
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
indicate changes in the expected future cash flows or changes in economic
conditions.  The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.  In addition, the Corporation maintains a
system of internal controls which are independently monitored and tested by
internal audit and loan review staff to ensure that the loss estimation model
is maintained in accordance with internal policies and procedures, as well as
generally accepted accounting principles.
CAPITAL RESOURCES
Equity capital stood at $406.7 million at March 31, 2003, an increase of $5.3
million compared to December 31, 2002. 
Dividends declared reduced equity by $9.1 million during the first three
months of 2003.  The retained net income
of $4.2 million remained in permanent capital to fund future growth and
expansion.  Payment by the Corporation's
Employee Stock Ownership Plan ("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 $167 thousand
during the first three months of 2003. 
The market value adjustment to securities available for sale increased
equity by $608 thousand for the period. 
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $207 thousand during 2003.  Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.  This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth 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 ability.  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.
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.
27
FIRST COMMONWEALTH FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL RESOURCES
(continued)
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, 2003:
Amount
(in thousands)
Percent of
Adjusted Assets
Tier
  I Capital
$  407,038
12.7%
Risk-Based
  Requirement
127,787
4.0
Total
  Capital
442,359
13.9
Risk-Based
  Requirement
255,574
8.0
Minimum
  Leverage Capital
407,038
9.0
Minimum
  Leverage Requirement
135,636
3.0
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.  At March 31, 2003,
the Corporation's banking and trust subsidiaries exceeded those requirements.
ITEM 3.  QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Information appearing in Item 2 of this report under the caption "Interest
Sensitivity" is incorporated herein by reference in response to this item.
28
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
ITEM 4. CONTROLS AND PROCEDURES
(a) Disclosure controls and procedures. 
Within 90 days before filing this report, we evaluated the effectiveness
of the design and operation of our disclosure controls and procedures.  Our disclosure controls and procedures are
the controls and other procedures that we designed to ensure that we record,
process, summarize and report in a timely manner the information we must
disclose in reports that we file with or submit to the SEC.  Joseph E. O'Dell, our President and Chief
Executive Officer, and John J. Dolan, our Executive Vice President and Chief
Financial Officer, reviewed and participated in this evaluation.  Based on this evaluation, Messrs. O'Dell and
Dolan concluded that, as of the date of their evaluation, our disclosure
controls were effective.
(b) Internal controls.  Since the date
of evaluation described above, there have not been any significant changes in
our internal accounting controls or in other factors that could significantly
affect those controls.
29
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.
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
The
  Corporation's Chief Executive Officer and Chief Financial Officer have
  furnished to the SEC the certification with respect to this Form 10-Q that is
  required by Section 906 of the Sarbanes-Oxley Act of 2002
ITEM
  6.
EXHIBITS
  AND REPORTS ON FORM 8-K
(a)
  Exhibits
Exhibit
  10.1 Employment Contract of Johnston A. Glass
Exhibit
  10.2 Change of Control Agreement of Johnston A.
Glass
Exhibit
  10.3 Change of Control Agreement of Thaddeus J.
Clements
Exhibit
  99.1 Chief Executive Officer Certification pursuant
to 18 U.S.C. Section 1350 as adopted
  pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
Exhibit
  99.2 Chief Financial Officer Certification pursuant
to 18 U.S.C. Section 1350 as adopted
  pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
(b)
  Reports on Form 8-K
Form
  8-K dated April 17, 2003 reporting the Corporation's
press release announcing its earnings for the three
  month
period ended March 31, 2003
30
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 13, 2003
/s/Joseph
  E.
  O'Dell
Joseph
  E. O'Dell, President and Chief Executive Officer
DATED:  May 13, 2003
/s/John
  J.
  Dolan
John
  J. Dolan, Executive Vice President and Chief Financial Officer
31
CHIEF EXECUTIVE
OFFICER CERTIFICATION
I,
  Joseph E. O'Dell, President and Chief Executive Officer, certify that:
1.
I
  have reviewed this quarterly report on Form 10-Q of First Commonwealth
  Financial Corporation;
2.
Based
  on my knowledge, this quarterly report does not contain any untrue statement
  of a material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements
  were made, not misleading with respect to the period covered by this
  quarterly report;
3.
Based
  on my knowledge, the financial statements, and other financial information
  included in this quarterly report, fairly present in all material respects
  the financial condition, results of operations and cash flows of the
  registrant as of, and for, the periods presented in this quarterly report;
4.
The
  registrant's other certifying officers and I are responsible for establishing
  and maintaining disclosure controls and procedures (as defined in Exchange
  Act Rules 13a-14 and 15d-14) for the registrant and we have:
a)
designed
  such disclosure controls and procedures to ensure that material information
  relating to the registrant, including its consolidated subsidiaries, is made
  known to us by others within those entities, particularly during the period
  in which this quarterly report is being prepared;
b)
evaluated
  the effectiveness of the registrant's disclosure controls and procedures as
  of a date within 90 days prior to the filing date of this quarterly report
  (the "Evaluation Date"); and
c)
presented
  in this quarterly report our conclusions about the effectiveness of the
  disclosure controls and procedures based on our evaluation as of the
  Evaluation Date;
5.
The
  registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
  of registrant's board of directors (or persons performing the equivalent
  function):
a)
all
  significant deficiencies in the design or operation of internal controls
  which could adversely affect the registrant's ability to record, process,
  summarize and report financial data and have identified for the registrant's
  auditors any material weaknesses in internal controls; and
b)
any
  fraud, whether or not material, that involves management or other employees
  who have a significant role in the registrant's internal controls; and
32
6.
The
  registrant's other certifying officers and I have indicated in this quarterly
  report whether or not there were significant changes in internal controls or
  in other factors that could significantly affect internal controls subsequent
  to the date of our most recent evaluation, including any corrective actions
  with regard to significant deficiencies and material weaknesses.
May
  13, 2003
/s/Joseph
  E.
  O'Dell
Date
Signature
President
  and Chief Executive Officer
Title
33
CHIEF FINANCIAL
OFFICER CERTIFICATION
I,
  John J. Dolan, Executive Vice President and Chief Financial Officer, certify
  that:
1.
I
  have reviewed this quarterly report on Form 10-Q of First Commonwealth
  Financial Corporation;
2.
Based
  on my knowledge, this quarterly report does not contain any untrue statement
  of a material fact or omit to state a material fact necessary to make the
  statements made, in light of the circumstances under which such statements
  were made, not misleading with respect to the period covered by this
  quarterly report;
3.
Based
  on my knowledge, the financial statements, and other financial information
  included in this quarterly report, fairly present in all material respects
  the financial condition, results of operations and cash flows of the
  registrant as of, and for, the periods presented in this quarterly report;
4.
The
  registrant's other certifying officers and I are responsible for establishing
  and maintaining disclosure controls and procedures (as defined in Exchange
  Act Rules 13a-14 and 15d-14) for the registrant and we have:
a)
designed
  such disclosure controls and procedures to ensure that material information
  relating to the registrant, including its consolidated subsidiaries, is made
  known to us by others within those entities, particularly during the period
  in which this quarterly report is being prepared;
b)
evaluated
  the effectiveness of the registrant's disclosure controls and procedures as
  of a date within 90 days prior to the filing date of this quarterly report
  (the "Evaluation Date"); and
c)
presented
  in this quarterly report our conclusions about the effectiveness of the
  disclosure controls and procedures based on our evaluation as of the
  Evaluation Date;
5.
The
  registrant's other certifying officers and I have disclosed, based on our
  most recent evaluation, to the registrant's auditors and the audit committee
  of registrant's board of directors (or persons performing the equivalent
  function):
a)
all
  significant deficiencies in the design or operation of internal controls
  which could adversely affect the registrant's ability to record, process,
  summarize and report financial data and have identified for the registrant's
  auditors any material weaknesses in internal controls; and
b)
any
  fraud, whether or not material, that involves management or other employees
  who have a significant role in the registrant's internal controls; and
34
6.
The
  registrant's other certifying officers and I have indicated in this quarterly
  report whether or not there were significant changes in internal controls or
  in other factors that could significantly affect internal controls subsequent
  to the date of our most recent evaluation, including any corrective actions
  with regard to significant deficiencies and material weaknesses.
May
  13, 2003
/s/John
  J.
  Dolan
Date
Signature
Executive
  Vice President and Chief Financial Officer
Title
35