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<p align=center><font size=3
face=Courier>FORM 10-Q<br>
  <br>
  <br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  WASHINGTON, D.C. 20549<br>
  <br>
  &nbsp; (X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<br>
  &nbsp;EXCHANGE ACT OF 1934<br>
  <br>
  <br>
  For the quarterly period ended September 30, 2002<br>
  <br>
  OR<br>
  <br>
  ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<br>
  &nbsp;EXCHANGE ACT OF 1934<br>
  <br>
  <br>
  For the transition period from _______ to _______<br>
  <br>
  <br>
  Commission File Number <u>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; 0-11242</u><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  First Commonwealth Financial Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  <br>
  (Exact name of registrant as specified in its charter)<br>
  <br>
  <br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp; Pennsylvania&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; 25-1428528&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </u><br>
  (State or other jurisdiction of&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; (I.R.S. Employer <br>
  &nbsp;incorporation or organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Identification No.)<br>
  <br>
  <br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp; 22 North Sixth Street&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Indiana, PA&nbsp; 15701&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; </u><br>
  (Address of principal executive offices)&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)<br>
  <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;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; 724-349-7220&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  <br>
  </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant's
  telephone number, including area code)<br>
  <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;&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;&nbsp;&nbsp;
  </u><br>
  (Former name, former address and former fiscal year, if changed since last<br>
  &nbsp;report.)<br>
  <br>
  <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>X&nbsp;&nbsp;&nbsp; </u> No <u>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; </u>.<br>
  </font></p>
<p><font size=3
face=Courier>Number of shares outstanding of issuer's common stock, $1.00 Par
  Value as of October 25, 2002 was 58,847,898.</font></p>
<p align=center><font size=3
face=Courier> FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  <br>
  PART I - FINANCIAL INFORMATION</font></p>
<p align=left><font size=3
face=Courier><br>
  <u>ITEM 1</u>.&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Included in Part I of this
  report:&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; PAGE<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; First Commonwealth Financial
  Corporation and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Subsidiaries Consolidated Balance Sheets . . .&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;3
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Income. . . . . . . &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;4
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Changes in <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; Shareholders' Equity. . . . . . . . . . . &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;5
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Cash Flows. . . . . &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;6
  <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Notes to Consolidated Financial Statements . . &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;7
  <br>
  <br>
  <u>ITEM 2</u>.&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp; 11 <br>
  <br>
  <u>ITEM 3</u>.&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; MARKET RISK . . . . . . .
  . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp; 31 <br>
  <br>
  <u>ITEM 4</u>.&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES . . . . . . . . . .
  . . . .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; PART II - OTHER INFORMATION<br>
  <br>
  Other Information . . . . . . . . . . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;
  33 <br>
  <br>
  Signatures. . . . . . . . . . . . . . . . . . . . . . . . . .&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;34 <br>
  <br>
  Certification of Chief Executive Officer. . . . . . . . . . .&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;35<br>
  <br>
  Certification of Chief Financial Officer. . . . . . . . . . .&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  37<br>
  <br>
  Exhibits and Reports on Form 8K&nbsp;&nbsp;&nbsp;&nbsp; <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  CONSOLIDATED BALANCE SHEETS <br>
  (Unaudited)<br>
  (Dollars in thousands)</font></p>
<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>September
  30,<br>
  <u>2002</u></font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>December
  31,<br>
  <u>2001</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <h3><b><font size=1 face=Courier>ASSETS</font></b></h3>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and due from banks on demand .
        . . . . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p><font size=1 face=Courier> $&nbsp;&nbsp;&nbsp;&nbsp;97,071</font></p>
  </td>
    <td width=115 valign=top>
      <p><font size=1 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;98,130</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest-bearing deposits with banks.
        . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,611</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Federal funds sold&nbsp; . . . . . .
        . . . . . . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities available for sale, at market.
        . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;1,467,113 </font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;1,469,118</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Securities held to maturity, at cost,<br>&nbsp;&nbsp; (Market value $252,980 in 2002 <br>
        &nbsp;&nbsp;&nbsp; and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  <br>&nbsp; 243,849</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  <br>&nbsp;&nbsp; 293,290</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>2,618,369</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;2,569,231</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Unearned income . . . .
        . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (904)</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (1,297)</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Allowance for credit losses
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; (34,794)</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (34,157)</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>___________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loans .
        . . . . . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;2,582,671</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;2,533,777</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Property and equipment. . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 45,940</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 46,418</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other real estate owned . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,661</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,619</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,132</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,539</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 36</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 232</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 127,361</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 130,157</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>$4,576,445</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>$4,583,530</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>==========</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <h3><b><font size=1 face=Courier>LIABILITIES</font></b></h3>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp; Deposits
  (all domestic):</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Noninterest bearing . .
        . . . . . . . . . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p><font size=1 face=Courier>&nbsp;$&nbsp; &nbsp;393,092</font></p>
  </td>
    <td width=115 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;$&nbsp;&nbsp; 412,695</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest bearing. . . .
        . . . . . . . . . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;2,740,976</font></p>
  </td>
    <td width=115 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;2,680,455</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits.
        . . . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>3,134,068</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;3,093,150</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Short-term borrowings . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 334,580</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 427,736</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other liabilities . . . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 28,160</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 28,358</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp; Company
  obligated mandatorily redeemable capital <br>
        &nbsp;&nbsp;&nbsp; securities of subsidiary trust. . . . . . . . . . .
        . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; 35,000</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; 35,000</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other long-term debt. . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 645,577</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 629,220</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term
        debt. . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 680,577</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 664,220</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities
        . . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;4,177,385</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;4,213,464</font></p>
  </td>
 </tr>
 <tr>
    <td width=511 valign=top height="2">
      <p>&nbsp;</p>
  </td>
    <td width=108 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=115 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <h4><b><font size=1 face=Courier>SHAREHOLDERS' EQUITY</font></b></h4>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp; Preferred
  stock, $1 par value per share,<br>
        &nbsp;&nbsp;&nbsp; 3,000,000 shares authorized, none issued . . . . .
        . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp; Common
  stock, $1 par value per share, <br>&nbsp;&nbsp;&nbsp; 100,000,000 shares authorized,
  62,525,412 <br>&nbsp;&nbsp;&nbsp; shares issued; 58,847,898 and
  58,451,624 <br>&nbsp;&nbsp; &nbsp;shares outstanding at September 30, 2002 and <br>
        &nbsp;&nbsp;&nbsp; December 31, 2001 respectively. . . . . . . . . . .
        . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>&nbsp;&nbsp; 62,525</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; 62,525</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Additional paid-in capital. . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 64,929</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 66,176</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Retained earnings . . . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 292,560</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 288,219</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Accumulated other comprehensive income.
        . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 28,797</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,703</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=1 face=Courier>&nbsp; Treasury
  stock (3,677,514 shares at September 30, 2002 and <br>
        &nbsp;&nbsp;&nbsp; 4,073,788 at December 31, 2001, at cost). . . . . .
        . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; (46,429)</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (51,431)</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (3,322)</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (4,126)</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders'
        equity. . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 399,060</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 370,066</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
      <p><font size=1 face=Courier>&nbsp;$4,576,445</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=1
  face=Courier>$4,583,530</font></p>
  </td>
 </tr>
 <tr>
    <td width=511 valign=top height="2">
      <p>&nbsp;</p>
  </td>
    <td width=108 valign=top height="2">
      <p align=center><font size=1
  face=Courier>==========</font></p>
  </td>
    <td width=115 valign=top height="2">
      <p align=center><font size=1
  face=Courier>==========</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
  </font><font size="2" face="Courier New, Courier, mono">The accompanying notes
  are an integral part of these consolidated financial statements.</font></p>
<p align="center"><font size=1> </font><br>
  3</p>
<p align="center"><br clear=all>
  <font face="Courier New, Courier, mono">FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND SUBSIDIARIES<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED STATEMENTS OF
  INCOME<br>
  &nbsp;(Unaudited)<br>
  (Dollars in thousands, except per share data)</font><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</p>

<table border=0 cellspacing=0 cellpadding=0 width=777>
  <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td colspan=2 rowspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>For the
  Quarter<br>
  <u>Ended September 30,</u></font></p>
  </td>
    <td colspan=2 rowspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>For the
  9 Months<br>
  <u>Ended September 30,</u></font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><u><font size=1
  face=Courier>__
  2002__</font></u></p>
  </td>
    <td width=91 valign=top>
      <p align=center><u><font size=1
  face=Courier>__
  2001__</font></u></p>
  </td>
    <td width=100 valign=top>
      <p align=center><u><font size=1
  face=Courier>__2002__</font></u></p>
  </td>
    <td width=104 valign=top>
      <p align=center><u><font size=1
  face=Courier>&nbsp;&nbsp; 2001_</font></u></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h3><b><font size=1 face=Courier>Interest Income</font></b></h3>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest and fees on loans . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; $ 44,943</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp;
  50,847</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>$135,490</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$
  153,824</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest
  and dividends on investments: </font></p>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Taxable interest . . . .
        . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 21,005</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 23,639</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 65,034</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 70,413</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest exempt from Federal
        income taxes. .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,363</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,432</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 7,172</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 7,177</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Dividends. . . . . . . .
        . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 464</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 615</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,457</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,044</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on Federal funds sold . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 491</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on bank deposits. . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 21</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 59</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        income. . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 68,784</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 77,557</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 209,185</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;234,008</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Interest
  Expense</font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on deposits . . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 19,409</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; &nbsp;&nbsp;29,723</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 61,512</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;93,023</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on short-term borrowings. .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,305</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,742</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 4,572</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,975</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on company obligated mandatorily<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;redeemable capital securities of subsidiary<br>
        &nbsp;&nbsp;&nbsp;&nbsp; trust . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; 2,494</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; 2,494</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on other long-term debt . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,911</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,703</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 26,305</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 25,769</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        on long-term debt . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; &nbsp;9,743</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 9,535</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 28,799</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 28,263</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        expense . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 30,457</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 42,000</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 94,883</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;130,261</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Net Interest
  Income</font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 38,327</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 35,557</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 114,302</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;103,747</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Provision for credit losses. . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,103</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,542</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 9,028</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,506</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Net interest income after provision for
        <br>
        &nbsp;&nbsp;&nbsp;credit losses . . . . . . . . . . . . . </font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 35,224</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; 32,015</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 105,274</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 95,241</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top height="2">
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top height="2">
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Other Income</font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities gains . . . . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 26</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,330</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 641</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,325</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Trust income . . . . . . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,227</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,265</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,782</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; &nbsp;3,815</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Service charges on deposit accounts.
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,010</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,804</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,449</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,092</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Insurance commissions. . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,055</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,111</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,862</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,399</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Income from bank owned life insurance.
        . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,186</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,096</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,428</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,156</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other income . . . . . . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,897</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,153</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,565</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 9,612</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        income . . . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 9,401</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 10,759</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 27,727</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;30,399</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Other
  Expenses</font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Salaries and employee benefits . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 14,505</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 13,588</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;43,915</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;40,658</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net occupancy expense&nbsp; . . . .
        . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,668</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,577</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 4,967</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 4,977</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Furniture and equipment expense. . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,391</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,168</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 7,357</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 6,548</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Data processing expense. . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 558</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 795</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,484</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,383</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Pennsylvania shares tax expense. . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 969</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 944</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,960</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,855</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill amortization. . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 230</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 691</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Intangible amortization. . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 196</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 368</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Litigation settlement. . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,000</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Restructuring charges. . . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,473</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;5,589</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other operating expenses . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 6,919</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,609</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;22,081</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;19,012</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;_______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        expenses . . . . . . . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 29,491</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 26,033</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 96,549</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 77,492</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;_______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Income before income taxes</font></b>.
        <font size=1 face=Courier> . . . . . </font><font size=1 face=Courier>
        . . .</font></h5>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 15,134</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 16,741</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 36,452</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 48,148</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Applicable income taxes . . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,947</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,023</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 5,670</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 11,373</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; ________</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <h5><b><font size=1 face=Courier>Net income . . . . . . . . . . . . . .
        . .</font></b></h5>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$ 12,187</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 12,718</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$ 30,782</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$ 36,775</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; =======</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; =======</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; =======</font></p>
  </td>
    <td width=104 valign=top>
      <p><font size=1 face=Courier>&nbsp; &nbsp;&nbsp;=======</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p>&nbsp;</p>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding . . . . . . . .
        . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p><font size=1 face=Courier>&nbsp;58,521,562</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>57,975,650</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>58,342,470&nbsp;</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>57,833,280&nbsp;</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding Assuming Dilution
        . .</font></p>
  </td>
    <td width=97 valign=top>
      <p><font size=1 face=Courier>&nbsp;58,862,215</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>58,342,525</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>58,734,144&nbsp;</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>58,062,021&nbsp;</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><b><font size=1 face=Courier>Per Share Data: </font></b></p>
  </td>
    <td width=97 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=100 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Basic earnings per share. . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$ 0.21</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.22</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp;
  0.53</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;$
  0.64</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top>
      <p><font size=1 face=Courier>&nbsp; Diluted earnings per share. . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$ 0.21</font></p>
  </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.22</font></p>
  </td>
    <td width=100 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp;
  0.52</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.63</font></p>
  </td>
 </tr>
 <tr>
    <td width=385 valign=top height="2">
      <p><font size=1 face=Courier>&nbsp; Cash dividends per share. . . . . .
        . . . . .</font></p>
  </td>
    <td width=97 valign=top height="2">
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.150</font></p>
  </td>
    <td width=91 valign=top height="2">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; $ 0.145</font></p>
  </td>
    <td width=100 valign=top height="2">
      <p align=center><font size=1
  face=Courier>&nbsp; $&nbsp;
  0.450</font></p>
  </td>
    <td width=104 valign=top height="2">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; $ 0.435</font></p>
  </td>
 </tr>
</table>

<p><font size=1 face=Courier><br>
  The accompanying notes are an integral part of these consolidated financial
  statements.</font></p>
<p align="center"><font size=1 face=Courier><br>
  <font face="Courier New, Courier, mono" size="3">4<br>
  </font><font face="Courier New, Courier, mono"><br clear=all>
  </font></font><font size="3" face="Courier New, Courier, mono">FIRST COMMONWEALTH
  FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY <br>
  (Unaudited)<br>
  (Dollars in thousands)</font></p>

<table border=0 cellspacing=0 cellpadding=0 width=795>
  <tr>
    <td width=188 valign=top>
      <h1>&nbsp;</h1>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        Common<br>
        Stock<br>
        ______</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        Additional<br>
        Paid-In<br>
        Capital<br>
        _________</font></p>
    </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        Retained<br>
        Earnings<br>
        ________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>Accumulated<br>
        Other<br>
        Comprehensive<br>
        Income<br>
        _____________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        Treasury<br>
        Stock<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        Unearned<br>
        ESOP<br>
        Shares<br>
        ______</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        Total<br>
        Shareholders'<br>
        Equity<br>
        _____________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <h1>&nbsp;</h1>
    </td>
    <td width=64 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=right>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top height="27">
      <h1><b><font size=1 face=Courier>Balance at <br>
        December 31, 2000. .</font></b></h1>
    </td>
    <td width=64 valign=top height="27">
      <p align=center><font size=1
  face=Courier><br>
        $62,525</font></p>
    </td>
    <td valign=top height="27" width="80">
      <p align=center><font size=1
  face=Courier><br>
        $67,223</font></p>
    </td>
    <td width=72 valign=top height="27">
      <p align=right><font size=1
  face=Courier><br>
        $272,169&nbsp;</font></p>
    </td>
    <td width=104 valign=top height="27">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;$(7,808)</font></p>
    </td>
    <td width=82 valign=top height="27">
      <p align=center><font size=1
  face=Courier><br>
        $(54,666)</font></p>
    </td>
    <td width=82 valign=top height="27">
      <p align=center><font size=1
  face=Courier><br>
        $(5,287)</font></p>
    </td>
    <td width=123 valign=top height="27">
      <p align=center><font size=1
  face=Courier><br>
        $334,156</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Comprehensive income </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net income. . . . </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 36,775&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 36,775</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income, net of <br>
        &nbsp;&nbsp;&nbsp;&nbsp; tax:<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; holding gains on<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; arising during<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the period . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;34,287</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp; 34,287</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less:&nbsp;
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reclassification<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gains on<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income . . . . </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;-0- <br>
        ________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp; (2,127)<br>
        &nbsp; _______</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; (2,127)<br>
        _________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top height="38">
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total other <br>
        &nbsp;&nbsp;&nbsp;&nbsp; comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income . . . . . .</font></p>
    </td>
    <td width=64 valign=top height="38">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td valign=top height="38" width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td width=72 valign=top height="38">
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp; &nbsp;&nbsp;-0- <br>
        ________</font></p>
    </td>
    <td width=104 valign=top height="38">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;32,160<br>
        _______</font></p>
    </td>
    <td width=82 valign=top height="38">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=82 valign=top height="38">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=123 valign=top height="38">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 32,160<br>
        _________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Total comprehensive <br>
        &nbsp;&nbsp; income. . . . . . . </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;36,775&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;32,160</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 68,935</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash dividends <br>
        &nbsp;&nbsp; declared . . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; (25,372)</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; &nbsp;-0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;(25,372)</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Decrease in unearned <br>
        &nbsp;&nbsp; ESOP shares&nbsp; . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 893</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 893</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend<br>
        &nbsp;&nbsp; reinvestment plan <br>
        &nbsp;&nbsp; purchases . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; (460)</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; (460)</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock <br>
        &nbsp;&nbsp; reissued. . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; (725)<br>
        _______</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0- <br>
        ________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-<br>
        ______</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 3,126<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 2,401<br>
        ________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <h1><b><font size=1 face=Courier>Balance at <br>
        September&nbsp;30, 2001. </font></b></h1>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$62,525<br>
        =======</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier>$66,038<br>
        =======</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier>$283,572 <br>
        ========&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$24,352<br>
        =======</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>$(51,540)<br>
        =========</font></p>
    </td>
    <td width=82 valign=top>
      <p><font size=1 face=Courier>$(4,394)<br>
        ========</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier>$380,553<br>
        ========</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <h1>&nbsp;</h1>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top height="2">
      <h1><b><font size=1 face=Courier>Balance at <br>
        December 31, 2001 . .</font></b></h1>
    </td>
    <td width=64 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $62,525</font></p>
    </td>
    <td valign=top height="2" width="80">
      <p align=center><font size=1
  face=Courier><br>
        $66,176</font></p>
    </td>
    <td width=72 valign=top height="2">
      <p align=right><font size=1
  face=Courier><br>
        $288,219 </font></p>
    </td>
    <td width=104 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $ 8,703</font></p>
    </td>
    <td width=82 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $(51,431)</font></p>
    </td>
    <td width=82 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $(4,126)</font></p>
    </td>
    <td width=123 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $370,066</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Comprehensive income </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net income. . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; &nbsp;&nbsp;-0- </font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 30,782&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp; </font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 30,782</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income,net of tax:<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; holding gains on<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; arising during<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the period . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        20,490</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp; 20,490</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Less:&nbsp;
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; reclassification<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; gains on<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; included in net<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-&nbsp;<br>
        ________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; (396)<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; (396)<br>
        _________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total other <br>
        &nbsp;&nbsp;&nbsp;&nbsp; comprehensive<br>
        &nbsp;&nbsp;&nbsp;&nbsp; income. . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        _______</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-&nbsp;<br>
        ________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        20,094<br>
        _______</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-<br>
        ________</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp; 20,094<br>
        _________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Total comprehensive <br>
        &nbsp;&nbsp; income. . . . . .&nbsp;&nbsp; </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;30,782&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        20,094</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 50,876</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash dividends <br>
        &nbsp;&nbsp; declared . . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; &nbsp;-0- </font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;(26,441)</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; &nbsp;-0-&nbsp; </font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (26,441)</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Decrease in unearned<br>
        &nbsp;&nbsp; ESOP&nbsp;shares. . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 804</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 804</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend<br>
        &nbsp;&nbsp; reinvestment plan <br>
        &nbsp;&nbsp; purchases . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; (476)</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; (476)</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock <br>
        &nbsp;&nbsp; reissued. . . . . .</font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; (771)</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp; </font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 5,002</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 4,231</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top>
      <p><font size=1 face=Courier>&nbsp; </font></p>
    </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>______</font></p>
    </td>
    <td valign=top width="80">
      <p align=center><font size=1
  face=Courier>______</font></p>
    </td>
    <td width=72 valign=top>
      <p align=right><font size=1
  face=Courier>________</font></p>
    </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>_________</font></p>
    </td>
    <td width=82 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
    </td>
    <td width=123 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top height="3">&nbsp; </td>
    <td width=64 valign=top height="3">
      <p align=center>&nbsp;</p>
    </td>
    <td valign=top height="3" width="80">
      <p align=center>&nbsp;</p>
    </td>
    <td width=72 valign=top height="3">
      <p align=right>&nbsp;</p>
    </td>
    <td width=104 valign=top height="3">
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top height="3">
      <p align=center>&nbsp;</p>
    </td>
    <td width=82 valign=top height="3">
      <p align=center>&nbsp;</p>
    </td>
    <td width=123 valign=top height="3">
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=188 valign=top height="2">
      <h1><b><font size=1 face=Courier>Balance at <br>
        September 30,2002. .</font></b></h1>
    </td>
    <td width=64 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $62,525<br>
        =======</font></p>
    </td>
    <td valign=top height="2" width="80">
      <p align=center><font size=1
  face=Courier><br>
        $64,929<br>
        =======</font></p>
    </td>
    <td width=72 valign=top height="2">
      <p align=right><font size=1
  face=Courier><br>
        $292,560&nbsp;<br>
        ========&nbsp;</font></p>
    </td>
    <td width=104 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;$28,797<br>
        &nbsp;=======</font></p>
    </td>
    <td width=82 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $(46,429)<br>
        =========</font></p>
    </td>
    <td width=82 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $(3,322)<br>
        ========</font></p>
    </td>
    <td width=123 valign=top height="2">
      <p align=center><font size=1
  face=Courier><br>
        $399,060<br>
        &nbsp;========</font></p>
    </td>
  </tr>
</table>

<p align=center><font size=3
face=Courier><br>
  The accompanying notes are an integral part of these consolidated financial
  statements.<br>
  <br>
  <br>
  5</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  </font><font size="3" face="Courier New, Courier, mono">FIRST COMMONWEALTH FINANCIAL
  CORPORATION AND SUBSIDIARIES<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED STATEMENTS
  OF CASH FLOWS<br>
  (Unaudited)<br>
  &nbsp;&nbsp;&nbsp;&nbsp; (Dollars in thousands)&nbsp;&nbsp;&nbsp;</font><font face="Courier New, Courier, mono">
  <br>
  </font><br>
</p>

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>For the
  Nine Months<br>
  <u>Ended September 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=1
  face=Courier>2002</font></u></p>
  </td>
  <td width=103 valign=top>
  <p align=center><u><font size=1
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h3><b><font size=1 face=Courier>Operating Activities</font></b></h3>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;$&nbsp; 30,782</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>$&nbsp;&nbsp;36,775&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Adjustments to reconcile net income to net <br>&nbsp;&nbsp;&nbsp; cash provided by operating
  activities:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit
        losses. . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 9,028</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;8,506</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization.
        . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 5,364</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;5,625</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Net gains on sales
        of assets . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (680)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(4,456)</font></p>
  </td>
 </tr>
 <tr>
    <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Income from increase
        in cash surrender value of bank owned<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; life insurance. . . . . . . . . . . . .
        . . . . . . . . . .</font></p>
  </td>
    <td width=108 valign=top>
      <p><font size=1 face=Courier><br>
        &nbsp;&nbsp;&nbsp; (3,428)</font></p>
  </td>
    <td width=103 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp;(3,156)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        receivable. . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2 322</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 999</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        payable . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (3,124)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>(18,841)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease)
        in income taxes payable .&nbsp; . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (2,705)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 945</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred
        taxes . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (374)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (74)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,595</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(3,083)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided
        by operating activities . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 40,782</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>23,240</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Investing
  Activities</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Transactions with securities held to maturity:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 64,723</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>&nbsp; 109,057&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (15,241)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>(18,629)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;
  Transactions with securities available for sale:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 12,602</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>85,657</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; 363,974</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>342,071&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp; (343,056)</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>(653,693)&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sales of loans and other
        assets . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 71,698</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>69,219</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Acquisition of affiliate, net of cash
        received. . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (4)</font></p>
  </td>
  <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Investment in bank owned life insurance
        . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (5,000)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>(15,000)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net decrease (increase) in time deposits
        with banks . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,639</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(2,719)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase in loans . . . . . . .
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp; (129,917)</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier>(181,388)&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Purchases of premises and equipment
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (4,717)</font></p>
  </td>
    <td width=103 valign=top>
      <p align="center"><font size=1 face=Courier> &nbsp;(5,379)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash provided (used)
        by investing activities. . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 16,701</font></p>
  </td>
    <td width=103 valign=top>
      <p align=center><font size=1
  face=Courier>(270,804)&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <h5><b><font size=1 face=Courier>Financing
  Activities</font></b></h5>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Repayments of other long-term debt.
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,050)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (673)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from issuance of other long-term
        debt. . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 18,200</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 9,500</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend reinvestment plan
        purchases. . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (476)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (460)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (26,381)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(25,335)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase (decrease) in Federal funds
        purchased . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (30,525)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;67,525</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase (decrease) in other short-term
        borrowings. . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (62,630)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;32,238</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Sale of branch and deposits, net of
        cash received . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; (9,591)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net increase in deposits. . . . . .
        . . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 40,918 </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>153,947</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sale of treasury stock.
        . . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,402</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp; 2,401</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash provided (used)
        by financing activities. . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; (58,542)
  </font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>229,552</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net decrease in cash and
        cash equivalents . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,059)</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(18,012)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at January
        1. . . . . . . . . . . . .</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 98,130</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>101,848</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ________</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at September
        30. . . . . . . . . . . </font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;$&nbsp; 97,071</font></p>
  </td>
  <td width=103 valign=top>
  <p><font size=1 face=Courier>&nbsp;$&nbsp; 83,836</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p><font size=1 face=Courier>&nbsp;&nbsp; ========</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
  </font><font size="2" face="Courier New, Courier, mono">The accompanying notes
  are an integral part of these consolidated financial statements.</font></p>
<p align="center"><font size=1> <br>
  <br>
  <br>
  <br>
  <br>
  <font size="3" face="Courier New, Courier, mono">6</font></font></p>
<p align="center"><font size="3" face="Courier New, Courier, mono"><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  September 30, 2002<br>
  (Unaudited)</font></p>
<p><font size="3" face="Courier New, Courier, mono"><br>
  </font><br>
  <br>
  <u><font face="Courier New, Courier, mono">NOTE 1&nbsp;&nbsp;&nbsp;&nbsp; Management
  Representation<br>
  </font></u><font face="Courier New, Courier, mono"><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;
  Certain prior period amounts have been reclassified to conform with the current
  period presentation.&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. 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 September 30, 2002, and the
  results of operations for the three month and nine month periods ended September
  30, 2002 and 2001, and statements of cash flows and changes in shareholders'
  equity for the nine month periods ended September 30, 2002 and 2001.&nbsp; The
  results of operations for the interim periods 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
  2001 Annual Report on Form 10-K.<br>
  <br>
  <u>NOTE 2&nbsp;&nbsp;&nbsp;&nbsp; Cash Flow Disclosures (dollar amounts in thousands)</u><br>
  </font><br>
  <br>
</p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=115 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Cash
  paid during the first nine months of the year for:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Interest</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 98,007</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$149,102</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Income taxes</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;
  9,010</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$ 10,206</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; ESOP loan reductions</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp;
  804</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 893</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans transferred to other real estate
  owned and<br>&nbsp;&nbsp;&nbsp; repossessed assets</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier><br>&nbsp;$&nbsp;
  4,568</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  $&nbsp; 3,743</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gross increase in market value adjustment
  to<br>&nbsp;&nbsp;&nbsp; securities available for sale</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier><br>&nbsp;$ 30,913</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  $ 49,477</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Treasury stock reissued for acquisition</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp;
  830</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>

<p align=left><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=left>&nbsp;</p>
<p align=center><font size=3
face=Courier> <br>
  <br>
  7</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  September 30, 2002<br>
  (Unaudited)</font></p>
<p align=left><font size=3
face=Courier><br>
  <u><br>
  NOTE 3&nbsp;&nbsp;&nbsp;&nbsp; Comprehensive Income Disclosures<br>
  <br>
  </u>The following table identifies the related tax effects allocated to each
  component of other comprehensive income in the Statements of Changes in Shareholders'
  Equity: (dollar amounts in thousands)<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0 width=739>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=216 colspan=3 valign=top>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2002</font></u></p>
  </td>
  <td width=216 colspan=3 valign=top>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=216 colspan=3 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=216 colspan=3 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=307 valign=top>
      <p><font size=1 face=Courier>&nbsp; Unrealized holding gains (losses) <br>
        &nbsp;&nbsp;&nbsp; arising&nbsp;during the period . . . .</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $31,523</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $(11,033)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $20,490</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $52,750</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $(18,463)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $34,287</font></p>
  </td>
 </tr>
 <tr>
    <td width=307 valign=top>
      <p><font size=1 face=Courier>&nbsp; Less: reclassification adjustment <br>
        &nbsp;&nbsp;&nbsp; for gains&nbsp;realized in net income. </font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (610)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; 214</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (396)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp; (3,273)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp; 1,146</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>&nbsp; (2,127)</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized
        gains (losses) .</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;30,913</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(10,819)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;20,094</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;49,477</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;(17,317)</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;32,160</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr height=8>
  <td width=307 height=8 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Other comprehensive income. .</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p><font size=1 face=Courier>&nbsp;$30,913</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p align=center><font size=1
  face=Courier>$(10,819)</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p align=center><font size=1
  face=Courier>$20,094</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p align=center><font size=1
  face=Courier>$49,477</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p align=center><font size=1
  face=Courier>$(17,317)</font></p>
  </td>
  <td width=72 height=8 valign=top>
  <p align=center><font size=1
  face=Courier>$32,160</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
  <u>NOTE 4&nbsp;&nbsp;&nbsp;&nbsp; Business Combination</u><br>
  <br>
  Effective March 1, 2002, the Corporation acquired all of the outstanding shares
  of Strategic Capital Concepts, Inc. (&quot;SCC&quot;) and Strategic Financial
  Advisors, Inc. (&quot;SFA&quot;), each a Pennsylvania corporation headquartered
  in Allison Park, Pennsylvania.&nbsp; As a registered investment adviser, Strategic
  Capital Concepts provides financial planning, asset management and consulting
  services to individuals, businesses, retirement plans, trusts and estates.&nbsp;
  Strategic Financial Advisors offers investment and insurance products as well
  as employee benefit services.&nbsp; Each of the outstanding shares of Strategic
  Capital Concepts, Inc. and Strategic Financial Advisors, Inc. were exchanged
  for shares of the Corporation's common stock.&nbsp; In addition, the shareholders
  of SCC and SFA are entitled to receive additional shares of the Corporation's
  common stock for each of the years 2002 through 2005 based on a formula defined
  in the merger agreement which takes into consideration the financial performance
  of SCC and SFA after the merger date.&nbsp; The merger was accounted for as
  a purchase transaction whereby the identifiable tangible and intangible assets
  and liabilities of SCC and SFA have been recorded at their fair values at the
  acquisition date.&nbsp; Goodwill in the amount of $1.6 million was recorded
  as a result of the transaction.&nbsp; As prescribed under the purchase method
  of accounting, the results of operations of SCC and SFA from the date of acquisition
  are included in the Corporation's financial statements for 2002.&nbsp; In October,
  2002 SFA was merged into SCC and the name was changed to First Commonwealth
  Financial Advisors Inc.&nbsp; This acquisition should expand the Corporation's
  product offerings and positively impact fee based revenue, which is a continuing
  priority.<br>
  <br>
  <u>NOTE 5&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and Other Intangible Assets</u><br>
  <br>
  On January 1, 2002, the Corporation adopted FASB Statement No. 142, &quot;Goodwill
  and Other Intangible Assets&quot; (&quot;FAS No. 142&quot;), which addresses
  the accounting and reporting for acquired goodwill and other intangible assets
  which supersedes APB Opinion No. 17, &quot;Intangible Assets&quot;. FAS No.
  142 includes requirements to test goodwill and indefinite-lived intangible<br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  8<br>
  <br clear=all>
  <br>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  September 30, 2002<br>
  (Unaudited)</font></p>
<p><font size=3 face=Courier><br>
  <u><br>
  NOTE 5&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and Other Intangible Assets</u> (continued)<br>
  <u><br>
  </u>assets for impairment rather than amortize them.&nbsp; As of January 1,
  2002, the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million subject to the transitional testing provisions of FAS No. 142.&nbsp;
  Also, management reclassified an intangible asset previously recorded by an
  insurance subsidiary when acquiring the expiring list of policy holders from
  their joint-venture partner to goodwill with a net carrying amount of $718 thousand.<br>
  <br>
  As of January 1, 2002, the Corporation discontinued the amortization of goodwill
  which is expected to reduce other operating expense by $922 thousand in 2002.&nbsp;
  Goodwill amortization expense was $230 thousand and $691 thousand for the third
  quarter and first nine months of 2001 respectively.&nbsp; Goodwill represented
  basic and diluted earnings per share of $0.004 and $0.012 for the three and
  nine month periods ending September 30, 2001.&nbsp; Upon implementation of the
  standard, the Corporation determined no impairment existed on its outstanding
  goodwill.<br>
  <br>
  <u>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; Restructuring Charges</u><br>
  <br>
  The Corporation incurred restructuring charges during the first nine months
  of 2002 of $5.6 million which included $3.1 million recognized in the second
  quarter of 2002 and an additional $2.5 million recognized in the third quarter
  of 2002 as additional activities were identified for inclusion in restructuring.&nbsp;
  The restructuring charges were comprised of $4.2 million related to employee
  separation costs, $1.1 million related to realignment of the various Boards
  of Directors and Board committees and $324 thousand resulting from the write
  off of obsolete signage and supplies.&nbsp; These amounts are included as restructuring
  charges, as a component of Other Expenses on the Consolidated Statements of
  Income.&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; (Further information on these activities is included
  in the Management's Discussion and Analysis of Financial Condition and Results
  of Operation section of this document.)<br>
  <br>
  Employee separation costs consists of the severance packages for 95 employees,
  70 in the second quarter of 2002 and 25 in the third quarter of 2002, from various
  affiliates of the Corporation including all levels of staff from the executive
  management level to back office support staff.&nbsp; The amounts of employee
  separation costs accrued and charged to expense were $2.8 million and $1.4 million
  in the second and third quarters of 2002, respectively, for a total of $4.2
  million for the nine month period.&nbsp; The write off of the signage and supplies
  occurred in the second quarter of 2002 and the charges related to the Board
  realignment occurred in the third quarter of 2002.<br>
  <br>
  The actual termination benefits paid and charged against the total restructuring
  liability through September 30, 2002 were $317 thousand.&nbsp; Net adjustments
  to the liability through September 30, 2002 were $36 thousand and the actual
  number of employees terminated were 84 as 11 employees took other positions
  with the Corporation.</font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  9</font></p>
<p align="center"><font size=3 face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  September 30, 2002<br>
  (Unaudited)</font></p>
<p><font size=3 face=Courier><br>
  <u><br>
  NOTE 7&nbsp;&nbsp;&nbsp;&nbsp; New Accounting Pronouncements</u><br>
  <br>
  Effective January 1, 2002, the Corporation adopted FASB Statement No. 144, &quot;Accounting
  for the Impairment or Disposal of Long-Lived Assets&quot; (&quot;FAS No. 144&quot;)
  which requires that long-lived assets be reviewed for impairment whenever events
  or changes in circumstances, such as a significant decrease in the market value
  of an asset or the extent or manner in which an asset is used indicate that
  the carrying amount of an asset may not be recoverable.&nbsp; If there is an
  indication that the carrying amount of an asset may not be recoverable, future
  undiscounted cash flows expected to&nbsp; result from the use and disposition
  of the asset are estimated.&nbsp; If the sum of the expected cash flows is less
  than the carrying value of the asset a&nbsp;loss is recognized for the difference
  between the carrying value and the market value of the asset.&nbsp; This statement
  also requires measurement of long-lived assets classified as held for sale at
  the lower of their carrying amount or fair value less cost to sell and to cease
  depreciation or amortization on these assets.&nbsp; Implementation of FAS No.
  144 did not have a material impact on the Corporation's financial condition
  or results of operations.<br>
  <br>
  In April 2002, the FASB issued Statement No. 145, &quot;Rescission of FASB Statements
  No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections&quot;
  (&quot;FAS No. 145&quot;).&nbsp; FAS No. 145 rescinds Statement 4, which required
  all gains and losses from extinguishment of debt to be aggregated and, if material,
  classified as an extraordinary item, net of related income tax effect.&nbsp;
  As a result, the criteria in Opinion 30 will now be used to classify those gains
  and losses.&nbsp; This statement also amends FASB Statement No. 13 to require
  that certain lease modifications that have economic effects similar to sale-leaseback
  transactions be accounted for in the same manner as sale-leaseback transactions.&nbsp;
  This statement also makes technical corrections to existing pronouncements,
  which are not substantive but in some cases may change accounting practice.&nbsp;
  FAS No.145 was effective for transactions occurring after May 15, 2002.&nbsp;
  Implementation of FAS No. 145 did not have a material impact on the Corporation's
  financial condition or results of operations.<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 replaces 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 prospectively to exit or disposal
  activities initiated after December 31, 2002. Upon adoption, FAS No. 146 is
  not expected to have a material impact on the Corporation's financial condition
  or results of operations. <br>
  <br>
  In October 2002, the FASB issued Statement No. 147, &quot;Acquisitions of Certain
  Financial Institutions, an amendment of FASB Statements No. 72 and 144 and FASB
  No. 9&quot; (&quot;FAS No. 147&quot;).&nbsp; FAS No. 147 removes acquisitions
  of financial institutions, except for transactions between two or more mutual
  enterprises, from the scope of both FASB Statement 72 and Interpretation 9 and
  requires that those transactions be accounted for in accordance with<br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  10<br>
  <br clear=all>
  <br>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  September 30, 2002<br>
  (Unaudited)</font></p>
<p><font size=3 face=Courier><br>
  <u><br>
  NOTE 7&nbsp;&nbsp;&nbsp;&nbsp; New Accounting Pronouncements</u> (continued)<br>
  <br>
  FASB Statements No. 141 and No. 142.&nbsp; As a result, the requirement in FASB
  Statement 72 to recognize, and subsequently amortize, any excess of the fair
  value of liabilities assumed over the fair value of tangible and identifiable
  assets acquired as an unidentifiable asset no longer applies to acquisitions
  within the scope of this statement.&nbsp; In addition, this statement amends
  FASB Statement No. 144 to include in its scope long-term customer relationship
  intangible assets of financial institutions such as depositor and borrower-relationship
  intangible assets and credit cardholder assets.&nbsp; Consequently, those intangible
  assets are subject to the same undiscounted cash flow recoverability test and
  impairment loss recognition and measurement provisions that FASB Statement 144
  requires for other long-lived assets that are held and used.&nbsp; The provisions
  of FAS No. 147 were effective October 1, 2002.&nbsp; Implementation of FAS No.
  147 did not have a material impact on the Corporation's financial condition
  or results of operations.&nbsp;&nbsp; </font></p>
<p align="center"><font size=3 face=Courier> ITEM 2. MANAGEMENT'S DISCUSSION AND
  ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS<br>
  <br>
  <b>First Nine Months of 2002 as Compared to the First Nine Months of 2001</b><br>
  <br>
  This discussion and the related financial data are presented to assist in the
  understanding and evaluation of the consolidated financial condition and results
  of operations of First Commonwealth Financial Corporation (the &quot;Corporation&quot;)
  including its subsidiaries.&nbsp; In addition to historical information, this
  discussion and analysis contains forward-looking statements.&nbsp; The forward-looking
  statements contained herein are subject to certain risks and uncertainties that
  could cause actual results to differ materially from those projected in the
  forward-looking statements.&nbsp; Important factors that might cause such a
  difference include, but are not limited to, those discussed in this &quot;Management's
  Discussion and Analysis of Financial Condition and Results of Operations.&quot;&nbsp;
  Readers are cautioned not to place undue reliance on these forward-looking statements,
  which reflect management's analysis only as of the date hereof.&nbsp; The Corporation
  undertakes no obligation to publicly revise or update these forward-looking
  statements to reflect events or circumstances that arise after the date hereof.<br>
  <br>
  Net income for the first nine months of 2002 was $30.8 million which decreased
  $6.0 million when compared to $36.8 million earned in the comparable period
  of 2001.&nbsp; Basic and diluted earnings per share were $0.53 and $0.52 per
  share respectively for the first nine months of 2002 compared to $0.64 per share
  and $0.63 per share respectively for the same period of 2001.&nbsp; The 2002
  period included $5.6 million ($3.6 million after-tax) of nonrecurring restructuring
  charges related to 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; These
  restructuring charges included $4.2<br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  11 <br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES 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 Nine Months of 2002 as Compared to the First Nine Months of 2001 </b>(continued)<br>
  <br>
  million related to separation compensation for those employees whose positions
  were eliminated or chose not to relocate as a result of the merger of the subsidiary
  banks which took place on October 15, 2002. Additional restructuring charges
  of $1.1 million stemmed from the consolidation of various boards and committees
  to provide more efficient and effective corporate governance.&nbsp; Ongoing
  savings from these restructuring charges are anticipated to be $3.6 million
  per year.&nbsp; The fourth quarter will also include additional charges related
  to the implementation of the new common brand and identity.&nbsp; Net income
  for the first nine months of 2002 was also negatively impacted by the $8.0 million
  litigation settlement ($5.2 million, net of tax effect) recorded in the first
  quarter.&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; <br>
  <br>
  Core net income (excluding securities transactions, gains on asset sales and
  nonrecurring charges) was $39.2 million for the nine months of 2002, representing
  an increase of 15.3% compared to $34.0 million for the nine months of 2001.&nbsp;
  Gains on the sale of assets includes securities gains of $641 thousand and $3.3
  million in 2002 and 2001, respectively, as well as a $989 thousand gain on the
  sale of a branch and a group of mortgages in 2001.&nbsp; Diluted earnings per
  share for core earnings was $0.67 for the first nine months of 2002 compared
  to diluted earnings per share of $0.59 for the first nine months of 2001.&nbsp;
  Return on average assets was 0.90% and return on average equity was 10.58% during
  the 2002 period, compared to 1.09% and 13.84%, respectively during the same
  period of 2001.&nbsp; Return on average assets and return on average equity
  based on core earnings were 1.15% and 13.47%, respectively for the first nine
  months of 2002 compared to 1.01% and 12.79%, respectively for the year-to-date
  period of 2001.<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=271 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>For the Nine Months<br>
  Ended September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=151 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <h6><b><u><font size=3 face=Courier>Reconciliation of Core Earnings</font></u></b></h6>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Net
  income as reported</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$30,782</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$36,775</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Non-core
  items (net of tax):</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gains on sale of assets</font></p>
  </td>
    <td width=120 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(417)</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (2,804)</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Restructuring charges</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 3,633</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Litigation settlement</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 5,200</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  net income</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$39,198</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$33,971</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;=======</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  basic earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.67</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.59</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  diluted earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.67</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.59</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.15%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.01%</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average equity</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 13.47%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 12.79%</font></p>
  </td>
 </tr>
</table>

<p>&nbsp;</p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  12<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>First Nine Months of 2002 as Compared to the First Nine Months of 2001 </b>(continued)<br>
  <br>
  The fundamental source of First Commonwealth's earnings, net interest income,
  is defined as the difference between income on earning assets and the cost of
  funds supporting those assets.&nbsp; Net interest income was $114.3 million
  for the first nine months of 2002 compared to $103.7 million for the same period
  of 2001.&nbsp; Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) improved to 3.79% for the
  nine months of 2002 compared to 3.49% for the same period of 2001 as the cost
  of funds declined more than asset yields and interest rates fell to near historic
  lows. The cost of deposits dipped 129 basis points (1.29%) for the nine-month
  period of 2002 while loan yields declined 111 basis points (1.11%) over the
  same period.&nbsp; Continued pressure on net interest income is anticipated
  by the Corporation despite active management of interest rate risk.&nbsp; Significant
  initiatives have been undertaken by the Corporation to expand its fee based
  services to minimize shrinkage of the net interest margin.<br>
  <br>
  The following table shows the effect of changes in volumes and rates on interest
  income and interest expense.<br>
  <br>
  Analysis of Changes in Net Interest Income<br>
  (dollar amounts in thousands)<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=343 colspan=3 valign=top>
  <p align=center><font size=3
  face=Courier>2002 Change from 2001<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>to Volume</u></font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>to Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Time deposits with banks</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$(&nbsp;&nbsp; 33)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 7</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$(&nbsp;&nbsp;
  40)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Securities</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (5,971)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 215</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (6,186)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Federal funds sold</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; (485)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; (468)</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (17)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(18,334)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,933</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(21,267)</font></p>
  </td>
 </tr>
 <tr height=5>
  <td width=391 height=5 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 height=5 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 height=5 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 height=5 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest income</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(24,823)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,687</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(27,510)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities: </font></p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Deposits</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(31,511)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(1,697)</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(29,814)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Short-term borrowings</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (4,403)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,780</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (6,183)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Long-term debt</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 536</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 637</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; (101)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest expense</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(35,378)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 720</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(36,098)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>$10,555</font></p>
  </td>
    <td width=110 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;$ 1,967</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 8,588</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
    <td width=110 valign=top>
      <p align=center><font size=3
  face=Courier>=======&nbsp;</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;=======</font></p>
  </td>
 </tr>
</table>

<p align=left><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  13<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p align=left><font size=3
face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>First Nine Months of 2002 as Compared to the First Nine Months of 2001 </b>(continued)<br>
  <br>
  Interest and fees on loans declined $18.3 million for 2002 compared to 2001
  levels.&nbsp; The decrease in interest income included decreases in interest
  income due to rate of $21.3 million which were partially offset by increases
  in interest income due to volume of $2.9 million.&nbsp; The total yield on loans
  for the first nine months of 2002 was 7.17%, compared to loan yields of 8.28%
  for the first nine months of 2001.&nbsp; Average loans for the first nine months
  of 2002 rose $58.9 million compared to the first nine months of 2001 as increases
  in commercial loans, municipal loans and indirect installment loans were partially
  offset by decreases in average mortgage loans.&nbsp; During 2002 the Corporation
  continued to offer competitive fixed rate mortgages to customers wanting to
  lock in rates during the current low interest rate environment.&nbsp; The Corporation
  has reduced interest rate risk related to new mortgage loan production through
  utilization of various lending programs whereby loans originated by subsidiary
  banks are immediately sold along with the right to service these loans.<br>
  <br>
  Interest income on investments declined $6.0 million for the nine months of
  2002 compared to the corresponding period of 2001 as decreases in interest income
  due to rate were only slightly offset by increases in interest income due to
  volume.&nbsp; Total yield on investments was 6.06% for the first nine months
  of 2002 compared to 6.54% for the same period of 2001.&nbsp; Declines in interest
  income due to rate for U.S. government agency securities were $3.9 million as
  yields on U.S. government agency securities decreased 48 basis points (0.48%)
  for the 2002 period compared to 2001.&nbsp; Average investments for the nine
  months of 2002 included an increase of $38.7 million for corporate bonds compared
  to 2001 generating an increase in interest income of $2.0 million.<br>
  <br>
  Interest on deposits decreased $31.5 million for the 2002 period compared to
  2001, as interest on total savings deposits decreased by $8.5 million and interest
  on time deposits dropped by $23.0 million.&nbsp; Interest expense on deposits
  for the first nine months of 2002 reflected decreases due to rate of $19.5 million
  as the cost of total savings deposits decreased 115 basis points (1.15%) and
  the cost of time deposits fell 142 basis points (1.42%) compared to costs for
  the same period of 2001.&nbsp; Average deposits for the first nine months of
  2002 included decreases in average time deposits of $138.2 million which were
  partially offset by increases in average total savings deposits of $76.7 million
  over 2001 averages.<br>
  <br>
  Interest expense on short-term borrowings decreased $4.4 million for the nine
  months of 2002 compared to the corresponding period of 2001 as decreases in
  interest expense due to rate of $6.2 million were partially offset by increases
  in interest expense due to volume of $1.8 million compared to 2001 levels.&nbsp;
  The cost of short-term borrowings for the 2002 period decreased by 253 basis
  points (2.53%) compared to 2001 costs of 4.37%.&nbsp; The average balance of
  short-term borrowings for the first nine months of 2002 increased by $57.0 million
  compared to 2001 averages.<br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  14<br clear=all>
  <br>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p align=left><font size=3
face=Courier>RESULTS OF OPERATIONS (continued)<br>
  <b><br>
  First Nine Months of 2002 as Compared to the First Nine Months of 2001</b> (continued)<br>
  <br>
  Interest expense on long-term debt rose $536 thousand for the nine months of
  2002 compared to the corresponding period of 2001 as a result of volume increases.&nbsp;
  Average long-term debt for the nine months of 2002 increased by $14.9 million
  compared to 2001 averages as maturities were extended for short term borrowings
  from the Federal Home Loan Bank, to take advantage of the lower interest rate
  environment.<br>
  <br>
  The provision for credit losses was $9.0 million for the nine months of 2002
  compared to $8.5 million for the nine months of 2001.&nbsp; Net charge-offs
  against the allowance for credit losses were $8.4 million in the 2002 period,
  reflecting a decrease of $544 thousand compared to 2001 levels.&nbsp; The most
  significant components of this period to period change were a decline of $1.6
  million in net charge-offs for commercial real estate loans partially offset
  by an increase in net charge-offs for commercial loans not secured by real estate
  of $1.3 million.&nbsp; Net charge-offs as a percent of average loans outstanding
  were 0.32% for the nine months of 2002 compared to 0.35% for the same period
  of 2001.&nbsp; The provision for credit losses as a percent of net charge-offs
  was 107.59% at September 30, 2002 compared to 95.20% at September 30, 2001.&nbsp;
  See the &quot;Credit Review&quot; section for an analysis of the credit quality
  of the loan portfolio.<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier> <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  15<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p align=left><font size=3
face=Courier><br>
  <br>
  RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>First Nine Months of 2002 as Compared to the First Nine Months of 2001</b>
  (continued)<br>
  <br>
  Below is an analysis of the consolidated allowance for credit losses for the
  nine month periods ended September 30, 2002 and 2001.<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=115 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=235 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>$34,157</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$33,601</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
  </td>
  <td width=120 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp; 4,633</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 2,413</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-construction&nbsp; </font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 349</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 1,963</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-residential</font></p>
  </td>
  <td width=120 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp; 1,627</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 1,616</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans to individuals&nbsp; </font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  3,081</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 3,406</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 307</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 392</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; ______</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total loans charged off</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>$10,000</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 9,790</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  1,086</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 217</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-construction</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; &nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Real estate-residential&nbsp; </font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 16</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans to individuals</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 502</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 585</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
      <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total recoveries</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  1,609</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 855</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net charge offs</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  8,391</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 8,935</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  9,028</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp; 8,506</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p><font size=3 face=Courier>Balance
  September 30,</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>$34,794</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$33,172</font></p>
  </td>
 </tr>
 <tr>
  <td width=499 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;=======</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
  Net securities gains were $641 thousand during the first nine months of 2002
  compared to $3.3 million for the same period of 2001.&nbsp; Securities gains
  during the 2002 period resulted primarily from the sale of Pennsylvania bank
  stocks, U.S. Treasury securities and fixed rate corporate bonds classified as
  securities &quot;available for sale&quot; with book values of $1.1 million,
  $1.5 million, and $3.0 million, respectively.&nbsp; The bank stocks sold were
  related to merger activity while the other securities sold were related to asset
  sector shift strategies.&nbsp; Activity during the first nine months of 2001
  activity focused on the same strategies.&nbsp; Asset sector shift strategies
  generated securities gains of $1.7 million resulting from the sale fixed rate
  corporate bonds with book values of $37.4 million.&nbsp; Additional securities
  gains during the first nine months of 2001 resulted from the sale of fully valued
  Pennsylvania bank stocks with book values totaling $12.7 million. <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  16<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>First Nine Months of 2002 as Compared to the First Nine Months of 2001</b>
  (continued)<br>
  <br>
  Service charges on deposits are the most significant component of non-interest
  income amounting to 30.5% of the total.&nbsp; This category rose $357 thousand
  over the comparable period of 2001, primarily as a result of increases in bank
  club and account analysis fees.&nbsp; Insurance commissions rose $463 thousand
  for the nine-month period of 2002.&nbsp; Increases included personal lines,
  commercial lines and annuities.&nbsp; Insurance commissions were also positively
  impacted by inclusion of First Commonwealth Financial Advisors insurance production
  since March 1, 2002.&nbsp; <br>
  <br>
  Other income for the first nine months of 2002 fell to $8.6 million representing
  a decline of $1.0 million compared to $9.6 million reported for the first nine
  months of 2001. This decrease was due in part to gains on sale of assets included
  in the 2001 period.&nbsp; The Corporation sold one of its branches during the
  first quarter of 2001 which resulted in a gain of $777 thousand.&nbsp; The 2001
  period also included a gain of $212 thousand from the sale of $12.9 million
  of 30 year residential mortgage loans with significant prepayment exposure during
  the falling interest rate environment.&nbsp; <br>
  <br>
  Fee based revenue, such as insurance commissions, mutual fund sales fees and
  investment management fees are expected to be positively impacted in future
  periods as First Commonwealth Financial Advisors is incorporated into the integrated
  advisory sales model utilized to integrate products between the Corporation's
  bank, insurance and trust subsidiaries.&nbsp; Certified financial planners from
  the new subsidiaries will be included on the employee team used to deliver products
  and services to commercial clients through our &quot;Total Solutions Financial
  Management&quot; approach.<br>
  <br>
  Noninterest expense was $96.6 million for the nine months of 2002 reflecting
  an increase of $19.1 million over the 2001 level of $77.5 million.&nbsp; The
  increase in noninterest expense for 2002 was primarily the result of nonrecurring
  charges for the previously described litigation settlement and corporate restructuring
  of $8.0 million and $5.6 million, respectively.&nbsp;&nbsp; Employee costs were
  $43.9 million for the nine months of 2002, representing 1.29% of average assets
  on an annualized basis for 2002.&nbsp; Salary costs for the 2002 period increased
  $1.9 million or 5.9% compared to 2001 levels of $32.1 million.&nbsp; Employee
  benefit costs for the first nine months of 2002 reflected increases of $1.4
  million over the first nine months of 2001 and included increases in health
  insurance costs, expenses of the Corporation's employee stock ownership plan
  and 401(k) plan compared to the first nine months of 2001.<br>
  <br>
  As a result of the merger of the Corporation's banking subsidiaries, Southwest
  Bank and First Commonwealth Bank, which occurred on October 15, 2002 as scheduled,
  banking operations are being consolidated under First Commonwealth Bank.&nbsp;
  This change will provide banking clients with greater flexibility, efficiency
  and seamless service throughout our market-area.&nbsp; As a result of this merger,
  there was a consolidation of support functions with some staff positions being
  eliminated. The personnel within the branches and relationship managers in corporate
  services will</font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  17<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS </font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<b><br>
  <br>
  First Nine Months of 2002 as Compared to the First Nine Months of 2001</b> (continued)<br>
  <br>
  continue to serve in the same manner.&nbsp; Employees whose positions were being
  eliminated were notified and continued to work in their positions for at least
  60 days.&nbsp; Notified employees had the opportunity to seek other positions
  within the Corporation or to receive a separation package based on years of
  service.&nbsp; Also, related to the merger, the structure of all of the Boards
  of Directors and Board committees for the Corporation was realigned.&nbsp; As
  the result of these activities, restructuring charges of $5.6 million are reported
  on the income statement for the first nine months of 2002.&nbsp; Ongoing savings
  from the restructuring are anticipated to be $3.6 million per year.&nbsp; Other
  charges included during 2002 as part of the restructuring related to writing
  off obsolete signs and supplies due to the name change under one charter and
  amounted to $324 thousand.<br>
  <br>
  Occupancy expenses for the first nine months of 2002 was flat compared to the
  first nine months of 2001.&nbsp; Furniture and equipment expenses of $7.4 million
  reflected increases of $809 thousand over 2001 levels and included increases
  in computer software depreciation and software maintenance of $1.3 million,
  primarily related to the upgrade of core banking software.<br>
  <br>
  Outside data processing expense declined $899 thousand for the nine-month period
  of 2002 compared to the first nine months of 2001 and was positively impacted
  by the conversion of Southwest Bank from outsourced processing to that provided
  by a subsidiary of the Corporation.&nbsp; Accounting changes from the adoption
  of FAS No. 142 resulted in a decrease of $691 thousand of goodwill amortization
  for the first nine months of 2002 compared to the first nine months of 2001.&nbsp;
  Under the new pronouncement, goodwill amortization was discontinued effective
  January 1, 2002.&nbsp; <br>
  <br>
  Other operating expenses for the 2002 period were $22.1 million reflecting a
  rise of $3.1 million over the 2001 amount of $19.0 million.&nbsp; The first
  nine months of 2002 included increases in loss on sale of assets, primarily
  the loss on sale of vehicles previously leased, of $549 thousand compared to
  2001 levels.&nbsp; Other professional fees for the 2002 period reflected increases
  of $1.3 million over the first nine months of 2001 and included consulting fees
  related to implementation of the Corporation's &quot;Balanced Scorecard&quot;
  performance measurement system, enhancements to product and customer profitability
  systems, corporate restructuring and common branding and identity.&nbsp; Consultants
  are also being utilized to assist in the ongoing efforts to develop a world
  class sales culture and to generate new deposit dollars and relationships.&nbsp;
  Corporate restructuring and movement towards a sales culture also impacted the
  decision to have employee benefit plans reviewed by outside specialists during
  2002.&nbsp; Promotions expense for the first nine months of 2002 reflected an
  increase of $1.5 million compared to the first nine months of 2001, due in part
  to expenses incurred in the successful marketing campaign for free checking
  products introduced during 2002.&nbsp; These products are expected to have a
  favorable impact on deposit growth, costs and service charge revenue in future
  periods as well as providing potential add on sales of other financial products
  and services.&nbsp; </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  18<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS </font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<b><br>
  <br>
  First Nine Months of 2002 as Compared to the First Nine Months of 2001</b> (continued)<br>
  <br>
  Also impacting this category were expenditures related to the launch of the
  new Corporate brand and identity.&nbsp; This exciting campaign is designed to
  educate and build enthusiasm among current and potential clients.&nbsp; Additional
  expenditures for this campaign will be incurred in the fourth quarter of 2002.<br>
  <br>
  Income tax expense was $5.7 million for the first nine months of 2002 compared
  to $11.4 million for the first nine months of 2001.&nbsp; The Corporation's
  effective tax rate was 15.6% for the 2002 period compared to 23.6% for the corresponding
  period of 2001.&nbsp; Income tax expense for the 2002 period included $2.8 million
  and $2.0 million of tax benefits resulting from the previously described litigation
  settlement and restructuring charges, respectively.&nbsp; The Corporation's
  effective tax rate for the 2002 period, excluding these one time charges was
  18.1%.<br>
  <br>
  <b>Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001</b><br>
  <br>
  Net income was $12.2 million for the third quarter of 2002 a decline of $531
  thousand, compared to 2001 results of $12.7 million.&nbsp; The 2002 period included
  a $2.5 million ($1.6 million after-tax) one-time restructuring charge related
  to employee separation pay and costs related to realignment of all Boards of
  Directors and Board committees.&nbsp; Core earnings (excluding securities transactions,
  nonrecurring gains on sale of assets and nonrecurring charges) increased $1.9
  million or 16.2% in the 2002 period.&nbsp; Basic and diluted earnings per share
  were $0.21 during the 2002 quarter compared to $0.22 for the same period of
  2001.&nbsp; Diluted core earnings per share was $0.23 for the third quarter
  of 2002 compared to $0.20 for the third quarter of 2001.&nbsp; Return on average
  assets was 1.06% and return on average equity was 12.11% during the 2002 quarter,
  compared to 1.10% and 13.72%, respectively during the 2001 quarter.&nbsp; Core
  return on average assets and core return on average equity were 1.20% and 13.69%
  for the third quarter of 2002.<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=271 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>For the Quarter,<br>
  Ended September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=151 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <h6><b><u><font size=3 face=Courier>Reconciliation of Core Earnings</font></u></b></h6>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Net
  income as reported</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$12,187</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$12,718</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Non-core
  items (net of tax):</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gains on sale of assets </font></p>
  </td>
    <td width=120 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(17) </font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; (865)</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Restructuring charges</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 1,608</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Core net income</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$13,778</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$11,853</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;=======</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  basic earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.24</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.20</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  diluted earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.23</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.20</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.20%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.03%</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average equity</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 13.69%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 12.78%</font></p>
  </td>
 </tr>
</table>

<p>&nbsp;</p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  19<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  &nbsp;RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001 </b>(continued)<b><br>
  </b><br>
  Net interest income for the third quarter of 2002 of $38.3 million represented
  a rise of $2.8 million compared to the third quarter of 2001.&nbsp; Net interest
  margin (net interest income, on a tax-equivalent basis, as a percentage of average
  earning assets) for the 2002 period was 3.78%, reflecting an increase of 30
  basis points (0.30%) from 3.48% reported in 2001 since the cost of funds declined
  more than asset yields, as interest rates fell throughout 2001 and remained
  at low levels during the 2002 period.<br>
  <br>
  Interest and fees on loans for the three months ended September 30, 2002 decreased
  $5.9 million compared to the three months ended September 30, 2001, primarily
  as a result of rates dropping, most notably for variable rate commercial loans.&nbsp;
  The total yield on loans for the third quarter of 2002 was 7.05% representing
  a decrease of 97 basis points (0.97%) compared to yields for the third quarter
  of 2001.&nbsp; Declines in interest and fees on loans due to rate for the third
  quarter of 2002 compared to the third quarter of 2001 were only slightly offset
  by increases in interest income due to volume for commercial loans.&nbsp; Average
  loans for the third quarter of 2002 increased $31.4 million compared to averages
  for the third quarter of 2001 and included increases in commercial loans and
  indirect installment loans which were partially offset by decreases in residential
  mortgage loans.<br>
  <br>
  Interest income on investments for the three months ended September 30, 2002
  was $23.8 million, reflecting a dip of $2.9 million compared to the three months
  ended September 30, 2001.&nbsp; Decreases in interest income due to rate for
  government agency securities were $1.2 million as yields on government agency
  securities declined 44 basis points (0.44%) compared to yields for 2001.&nbsp;
  Total yield on investments was 5.94% for the third quarter of 2002 compared
  to 6.37% for the third quarter of 2001.&nbsp; Changes in investment income due
  to rate totaled $1.8 million for the 2002 period as the overall level of interest
  rates were lower than in the prior year.&nbsp; Volume decreases also reduced
  investment income in the 2002 period by $1.1 million as average investment volume
  fell by $68.0 million, primarily in the government agency and asset backed securities
  categories. <br>
  <br>
  Interest on deposits for the third quarter of 2002 was $19.4 million, reflecting
  a drop of $10.3 million compared to the third quarter of 2001 as both rates
  and volumes declined for the 2002 period.&nbsp; Interest expense on savings
  decreased due to rate of $3.1 million for the 2002 period as savings costs fell
  from 2.15% in 2001 to 1.06% in 2002.&nbsp; Interest on time deposits reflected
  decreases due to rate of $6.1 million and decreases due to volume of $1.2 million
  for the third quarter of 2002 compared to the third quarter of 2001.&nbsp; Average
  time deposits were $1,607.6 million for 2002 compared to $1,731.4 million for
  the corresponding period of 2001.&nbsp; The cost of time deposits continued
  to decline as the 2002 period cost of 4.02% compared favorably to the 2001 cost
  of 5.42%.<br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  20<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001</b> (continued)<b><br>
  </b><br>
  Interest on short-term borrowings for the third quarter of 2002 decreased $1.4
  million compared to the third quarter of 2001 due to both rate and volume decreases.&nbsp;
  Short-term borrowing costs were 1.79% for the 2002 period compared to 3.57%
  for the 2001 period resulting from declines in rate of $1.3 million and volume
  of $116 thousand.&nbsp; Average short-term borrowings decreased $14.8 million
  for the third quarter of 2002 compared to the corresponding period of 2001.&nbsp;
  Interest on long term debt for the three months ended September 30, 2002 increased
  by $208 thousand over the three months ended September 30, 2001.&nbsp; Average
  long term debt rose $15.8 million for the 2002 quarter as maturities were extended
  for short term borrowings from the Federal Home Loan Bank taking advantage of
  the lower rate environment.<br>
  <br>
  The provision for credit losses was $3.1 million for the three months ended
  September 30, 2002 compared to $3.5 million for the three months ended September
  30, 2001.&nbsp; Net charge-offs for the third quarter of 2002 were $2.6 million,
  compared to net charge-offs of $4.3 million for the third quarter of 2001.&nbsp;
  Net charge-offs for the third quarter of 2002 included decreases in charge-offs
  of commercial loans secured by real estate and commercial loans not secured
  by real estate of $1.3 million and $204 thousand respectively, compared to 2001
  levels.<br>
  <br>
  Net securities gains were $26 thousand for the third quarter of 2002 compared
  to securities gains of $1.3 million for the third quarter of 2001.&nbsp; The
  2002 period included gains from the call of municipal securities classified
  as &quot;held to maturity&quot; with book values of $3.4 million.&nbsp; Securities
  gains for the third quarter of 2001 resulted primarily from sale of Pennsylvania
  bank stocks with a book value of $12.7 million.<br>
  <br>
  Service charges on deposits rose $206 thousand for the third quarter of 2002
  compared to the same period of 2001 and were favorably impacted by the Corporation's
  &quot;High Performance&quot; checking product launched in 2002.&nbsp; This product
  should continue to favorably impact future periods.&nbsp; Income from bank owned
  life insurance rose $90 thousand and insurance commissions slipped $56 thousand
  for the third quarter of 2002 compared to the third quarter of 2001.<br>
  <br>
  Other income for the three months ended September 30, 2002 was $2.9 million,
  $256 thousand below the $3.2 million reported for the third quarter of 2001.&nbsp;
  Period to period changes included decreased gains on sales of assets, bank club
  income and debit card interchange income offset in part by increased MAC income.<br>
  <br>
  Total noninterest expense for the three months ended September 30, 2002 was
  $29.5 million reflecting an increase of $3.5 million over the $26.0 million
  that was reported for the prior year period.&nbsp; The increase for 2002 includes
  $2.5 million of expense related to separation pay for additional employees as
  well as amounts paid to retiring directors.&nbsp; As part of the <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  21<br>
  <br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> RESULTS OF OPERATIONS (continued)<br>
  <br>
  <b>Three Months Ended September 30, 2002 as Compared to the Three Months Ended<br>
  September 30, 2001 </b>(continued)<br>
  <br>
  plan for the organization reflecting the consolidation of the multiple bank
  charters into one, the renaming and branding of First Commonwealth Bank, as
  well as realigning for its new vision on corporate governance, all of the Board
  of Directors and Board committees for the corporation and its subsidiaries have
  been restructured.&nbsp; Most of the retiring directors were from boards of
  previously acquired banks.&nbsp; Employee costs were $14.5 million during the
  third quarter of 2002 which reflects an increase of $917 thousand over 2001
  levels.&nbsp; Salaries rose by $506 thousand and employee benefit costs increased
  by $411 thousand compared to prior period levels.&nbsp; Employee benefit costs
  rose primarily due to increased health insurance costs of $237 thousand compared
  to 2001 levels. <br>
  <u><br>
  </u>Occupancy expense rose $91 thousand for the third quarter of 2002 compared
  to the same period of 2001.&nbsp; Higher building rental expense was the principal
  factor in the period to period increase.&nbsp; Furniture and equipment expense
  increased $223 thousand for the third quarter of 2002 primarily due to a rise
  in software depreciation and software maintenance costs.&nbsp; Outside data
  processing expenses declined $237 thousand for the third quarter of 2002 due
  to the conversion of one of the Corporation's subsidiary banks to in-house data
  processing in the fourth quarter of 2001.&nbsp; The three months ended September
  30, 2002 also included a decrease of $230 thousand related to the implementation
  of FAS No. 142 during 2002 which changed the accounting treatment for goodwill
  from an amortizing intangible to a non-amortizing intangible.<br>
  <br>
  Other operating expenses for the third quarter of 2002 increased $310 thousand
  and included increased other professional fees ($346 thousand) and promotion
  expense ($430 thousand) offset in part by reductions in Pennsylvania sales tax
  expense ($253 thousand) and printing expense ($106 thousand).&nbsp; As previously
  discussed, these charges resulted from various restructuring and marketing initiatives
  including sales and common branding, as well as performance measurement system
  enhancements.<br>
  <br>
  Income taxes were $2.9 million for the 2002 period compared to $4.0 million
  for the corresponding period of 2001.&nbsp; The Corporation's effective tax
  rate was 19.5% for the third quarter of 2002 compared to 24.0% for the third
  quarter of 2001.&nbsp; The 2002 period included the tax benefit of $900 thousand
  related to the nonrecurring expenses for restructuring.&nbsp; The Corporation's
  effective tax rate excluding nonrecurring expenses was 21.7% for the three months
  ended September 30, 2002.&nbsp; <br>
  <br>
  <u>LIQUIDITY<br>
  <br>
  </u>Liquidity is a measure of the Corporation's ability to efficiently meet
  normal cash flow requirements of both borrowers and depositors.&nbsp; In the
  ordinary course of business, funds are generated from the banking subsidiaries
  core deposit base and the maturity or repayment of earning assets such as securities
  and loans.&nbsp; As an additional secondary source,<br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  22</font></p>
<p align="center"><font size=3 face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier> <u>LIQUIDITY</u> (continued)<u><br>
  </u><br>
  short-term liquidity needs may be provided through the use of overnight Federal
  funds purchased, borrowings through the use of lines available for repurchase
  agreements and borrowings from the Federal Reserve Bank.&nbsp; Additionally,
  the banking subsidiaries are members of the Federal Home Loan Bank and may borrow
  under overnight and term borrowing arrangements.&nbsp; The sale of earning assets
  may also provide an additional source of liquidity.<br>
  <br>
  The Corporation monitors liquidity through regular computations of prescribed
  liquidity ratios.&nbsp; The Corporation actively manages liquidity within a
  defined range and has developed liquidity contingency plans, including ensuring
  availability of alternate funding sources to maintain liquidity under a variety
  of business conditions.&nbsp; In addition to the previously described funding
  sources, the Corporation also has the ability to access the capital markets.<br>
  <br>
  At September 30, 2002 total earning assets were $4,331.0 million, down slightly
  from the $4,334.6 million recorded at December 31, 2001.&nbsp; Net loans rose
  $48.9 million for the first nine months of 2002 fueled by increases in the commercial,
  municipal and installment categories offset in part by decreases in mortgage
  loans.&nbsp; Interest bearing liabilities were $3,756.1 million at September
  30, 2002, a decline of $16.3 million compared to year-end 2001.&nbsp; Total
  deposits rose by $40.9 million as declines in demand deposits of $19.6 million
  and time deposits of $17.8 million were more than offset by increased savings
  deposits of $78.4 million over the same period.&nbsp; The growth in savings
  deposits was focused primarily in the MMDA category, as clients registered a
  preference for this product due to economic uncertainties.&nbsp; The Corporation
  has launched a program (&quot;High Performance Checking&quot;) which focuses
  on growing deposits, principally in the low cost categories, that is expected
  to favorably impact deposit growth and mix.&nbsp; Total borrowings dipped by
  $76.8 million for the first nine months of 2002 primarily due to the rise in
  deposits and maturities of investment securities.&nbsp; <br>
  <br>
  Marketable securities that the Corporation holds in its investment portfolio
  are an additional source of liquidity. These securities are classified as &quot;securities
  available for sale&quot; and while the Corporation does not have specific intentions
  to sell these securities, they have been designated as &quot;available for sale&quot;
  because they may be sold for the purpose of obtaining future liquidity, for
  management of interest rate risk or as part of the implementation of tax management
  strategies.&nbsp; As of September 30, 2002, securities available for sale had
  an amortized cost of $1,422.8 million and an approximate fair value of $1,467.1
  million.<br>
  <br>
  <b>Interest Sensitivity</b><br>
  <br>
  The objective of interest rate sensitivity management is to maintain an appropriate
  balance between the stable growth of income and the risks associated with maximizing
  income through interest sensitivity imbalances.&nbsp; While no single number
  can accurately describe the impact of changes in interest rates on net interest
  income, interest rate sensitivity positions, or &quot;gaps&quot;, when measured
  over a variety of time periods, may be helpful.<br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  23<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier><b> Interest Sensitivity </b>(continued)<br>
  <b><br>
  </b>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 $376.2 million or 8.22% of total assets as of September 30, 2002.&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 maturing 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>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  24<br>
  <br clear=all>
  <br>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  AND RESULTS OF OPERATIONS</font></p>
<p><font size=3 face=Courier><b> Interest Sensitivity </b>(continued)<br>
  <br>
  The following table lists the amounts and ratios of assets and liabilities with
  rates or yields subject to change within the periods indicated as of September
  30, 2002 and December 31, 2001 (Dollar amounts in thousands).<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center><u><font size=2
  face=Courier>September
  30, 2002</font></u><font size=2><br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>0-90<br>
  <u>Days</u></font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>91-180<br>
  <u>Days</u></font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>181-365<br>
  <u>Days</u></font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=97 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Loans </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>$
  950,194</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$154,182</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$(233,829)</font></p>
  </td>
    <td width=109 valign=top>
      <p align="center"><font size=2 face=Courier>$ &nbsp;870,547&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Investments </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 236,435</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;139,057</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;273,353</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;648,845</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other interest-earning assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 2,611</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;543 812</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;546 423</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive assets</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,189,240</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;293,239</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;583,336</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;2,065,815</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Certificates of deposit </font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;&nbsp; 151,811</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;423,657</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;260,500</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;835,968</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other deposits</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,168,516</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,168,516</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Borrowings</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;&nbsp; 435,635</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 436</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 1,467</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;437,538</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive<br>&nbsp;&nbsp; liabilities</font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2 face=Courier><br>
        &nbsp;&nbsp;1,755,962</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;424,093</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;261,967</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  2,442,022</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap </font></p>
  </td>
    <td width=107 valign=top>
      <p><font size=2
  face=Courier>$&nbsp; (566,722)</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$(130,854)</font></p>
  </td>
    <td width=96 valign=top>
      <p><font size=2 face=Courier>&nbsp;$ 321,369</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;$(376,207)</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;==========</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>ISA/ISL </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.68</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 0.69</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 2.23</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.85</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap/Total Assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 12.38%</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2.86%</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 7.02%</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8.22%</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=3 face=Courier><br><br></font></p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center><u><font size=2
  face=Courier>December
  31, 2001</font></u><font size=2><br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>0-90<br>
  <u>Days</u></font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>91-180<br>
  <u>Days</u></font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>181-365<br>
  <u>Days</u></font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=97 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Loans</font></p>
  </td>
    <td width=107 valign=top>
      <p align="center"><font size=2 face=Courier>$&nbsp;839,279</font></p>
  </td>
    <td width=97 valign=top>
      <p align="center"><font size=2 face=Courier>$ 155,276&nbsp;</font></p>
  </td>
    <td width=96 valign=top>
      <p align="center"><font size=2 face=Courier>$ 276,760&nbsp;</font></p>
  </td>
    <td width=109 valign=top>
      <p align="center"><font size=2 face=Courier>$1,271,315&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Investments</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 154,327</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 90,890</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;180,001</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;425,218</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 4,250</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 4,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p><font size=2 face=Courier>&nbsp;_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 997,856</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;246,166</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;456,761</font></p>
  </td>
    <td width=109 valign=top>
      <p align="center"><font size=2 face=Courier>&nbsp;1,700,783&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Certificates of deposit</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 329,825</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;284,518</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;407,188</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>1,021,531&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other deposits </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>1,090,160</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>1,090,160&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Borrowings </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 430,189</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 350</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 750</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp; 431,289&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>_________&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive<br>&nbsp;&nbsp; Liabilities </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  1,850,174</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;284,868</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;407,938</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier><br>
        2,542,980&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>_________&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>$
  (852,318)</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$
  (38,702)</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$
  48,823</font></p>
  </td>
    <td width=109 valign=top>
      <p align="center"><font size=2 face=Courier>$ (842,197)&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;==========</font></p>
  </td>
    <td width=97 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp;=========</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>ISA/ISL</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.54</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 0.86</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.12</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.67&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap/Total Assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 18.60%</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.84%</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.07%</font></p>
  </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 18.37%&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  25<br clear=all>
  <br>
  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> <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.&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 dynamic 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 the most
  likely case where interest rates are defined using projections of economic factors.&nbsp;
  Additional simulations are produced estimating the impact on net interest income
  of a 300 basis point (3.00%) movement upward or downward from the base case
  scenario.&nbsp; The Corporation's current asset/liability management policy
  indicates that a 300 basis point (3.00%) change in interest rates up or down
  cannot result in more than a 7.5% change in net interest income when compared
  to a base case, without Board approval and a strategy in place to reduce interest
  rate risk below the established maximum level.&nbsp; The analysis at September
  30, 2002 indicated that a 300 basis point (3.00%) increase in interest rates
  would increase net interest income 116 points (1.16%) above the base case scenario
  and a 300 basis point (3.00%) decline in interest rates would decrease net interest
  income by 979 basis points (9.79%) below the base case scenario, over the next
  twelve months.&nbsp; Assuming a 300 basis point (3.00%) decrease in interest
  rates, the Corporation is currently out of compliance with the asset/liability
  management policy.&nbsp; Management believes the probability of a 300 basis
  point decrease in interest rates is not likely and no action is warranted at
  this time.&nbsp; Additional simulation decreasing interest rates 100 basis points
  (1.00%) would result in a decrease in net interest income of 290 basis points
  (2.90%), within policy limits.<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  26<br clear=all>
  <br>
  &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> <b>Interest Sensitivity </b>(continued)<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 maximize the Corporation's net interest income based on 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 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.<br>
  <br>
  <u>CREDIT REVIEW</u><br>
  <br>
  The following table identifies amounts of loan losses and nonperforming loans.&nbsp;
  Past due loans are those which were contractually past due 90 days or more as
  to interest or principal payments but are well secured and in the process of
  collection.&nbsp; Renegotiated loans are those which terms have been renegotiated
  to provide a reduction or deferral of principal or interest as a result of the
  deteriorating financial position of the borrower and are in compliance with
  the restructured terms.<br>
  <br>
  &nbsp;<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  27<br>
  <br clear=all>
  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> <u>CREDIT REVIEW</u>(continued)<u><br>
  <br>
  </u></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=238 colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>At September 30,</font></u></p>
  </td>
 </tr>
 <tr height=16>
  <td width=497 height=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 height=16 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=127 height=16 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=238 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td width=110 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans on nonaccrual basis</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 24,463</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 23,068</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Past due loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 14,385</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 20,449</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Renegotiated loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 209</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 835</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; </font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>__________</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>__________</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total nonperforming loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 39,057</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 44,352</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>==========</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Other real estate owned</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1,661</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1,716</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans outstanding at end of period</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$2,617,465</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$2,594,029</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Average loans outstanding (year-to-date)</font></p>
  </td>
  <td width=110 valign=top>
      <p align="center"><font size=3 face=Courier>$2,596,081</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$2,537,192</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Nonperforming loans as percent of total
  loans</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.49%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.71%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Provision for credit losses</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 9,028</font></p>
  </td>
    <td width=127 valign=top>
      <p align="center"><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp; 8,506&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Net charge-offs</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 8,391</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 8,935</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Net charge-offs as percent of average<br>&nbsp;&nbsp;&nbsp; loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 0.32%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 0.35%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Provision for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of net charge-offs</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp; 107.59% </font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;<br>&nbsp;&nbsp;&nbsp; 95.20%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent<br>&nbsp;&nbsp;&nbsp; of average loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.34%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.31%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of end-of-period loans outstanding</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.33%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 1.28%</font></p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=497 valign=top>
  <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent <br>&nbsp;&nbsp;&nbsp; of nonperforming loans </font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 89.09%</font></p>
  </td>
  <td width=127 valign=top>
  <p align=center><font size=3
  face=Courier><br>&nbsp;&nbsp;&nbsp; 74.79%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><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>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  28<br>
  <br clear=all>
  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> <u>CREDIT REVIEW</u> (continued)<br>
  <br>
  The following table identifies impaired loans, and information regarding the
  relationship of impaired loans to the reserve for credit losses at September
  30, 2002 and September 30, 2001.<br>
  <br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=2
  face=Courier>2002</font></u></p>
  </td>
  <td width=103 valign=top>
  <p align=center><u><font size=2
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=2
  face=Courier>(amounts
  in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Recorded investment in impaired loans at end of
  period</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$24,672</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$23,903</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date average balance of impaired loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$25,009</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$13,332</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Allowance for credit losses related to impaired
  loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$ 6,113</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$ 3,242</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with an allocation of the allowance
  for <br>&nbsp; credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $15,640</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $15,683</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with no allocation of the allowance
  for<br>&nbsp;&nbsp;credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 9,032</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 8,220</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date income recorded on impaired loans on
  a cash basis</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 220</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 379</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 September 30, 2002, there were no significant concentrations of credit.<br>
  <br>
  Nonperforming loans at September 30, 2002 decreased $5.3 million compared to
  2001 levels as reductions in past due loans and renegotiated loans were slightly
  offset by an increase in nonaccrual loans.&nbsp; Past due loans improved both
  when compared to year-end 2001 and September 30, 2001. Nonaccrual loans include
  two significant credits in both periods.&nbsp; The largest credit ($6.3 million)
  is not past due and carries an 80% guaranty of a U.S. government agency.&nbsp;
  While a sale of the underlying assets is pending, final settlement may not occur
  until the second quarter of 2003.&nbsp; The expected loss on this credit is
  fully reserved.&nbsp; The second credit, which was $5.9 million at year-end
  2001, continues to be resolved through liquidation of collateral and exercising
  other remedies.&nbsp; The balance outstanding at September 30, 2002, related
  to this credit is $3.3 million.&nbsp; The Corporation anticipates final resolution
  of this credit by the second quarter of 2003 without additional losses in excess
  of amounts currently reserved.&nbsp; Nonperforming loans at September 30, 2002,
  compared favorably to the balance at December 31, 2001 as past due loans and
  renegotiated loans declined offset in part by higher nonaccrual loan balances.&nbsp;
  Nonperforming loans as a percent of total loans was 1.49% at September 30, 2002,
  compared to 1.62% at December 31, 2001, and 1.71% at September 30, 2001, while
  the allowance for credit losses as a percent of nonperforming loans was 89.09%,
  82.28% and 74.79%, respectively for the same periods.&nbsp;&nbsp; <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  29<br>
  <br clear=all>
  &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> <u>CREDIT REVIEW</u> (continued)<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; Committees formed during 2001 for the purpose of
  reviewing watchlist credits for workout progress or deterioration and monitoring
  loan loss adequacy and the status of significant nonperforming credits continue
  to provide additional internal monitoring and analysis in addition to that provided
  by the credit committees of the banks and parent company.&nbsp; Credit risk
  is mitigated during the loan origination process through the use of sound underwriting
  policies and collateral requirements.&nbsp; Management also attempts to minimize
  loan losses by analyzing and modifying collection techniques on a periodic basis.<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.&nbsp;
  Management and the Corporation's Board of Directors review 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.<br>
  <u><br>
  </u>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.&nbsp; The Corporation believes that the allowance
  for credit losses is adequate at this time.&nbsp; Uncertain economic conditions
  pose a risk to the banking industry but management believes that its risk management
  process serves as an early warning system so that appropriate responses will
  be implemented, as required. <br>
  <u><br>
  CAPITAL RESOURCES<br>
  <br>
  </u>Shareholders' equity stood at $399.1 million at September 30, 2002, a $29.0
  million or 7.8% rise compared to December 31, 2001.&nbsp; Dividends declared
  reduced equity by $26.4 million and $25.4 million for the first nine months
  of 2002 and 2001, respectively.&nbsp; Payments by the Corporation's Employee
  Stock Ownership Plan (the &quot;ESOP&quot;) to reduce debt it incurred to acquire
  the Corporation's common stock for future distribution as employee compensation,
  net of fair value adjustments to ESOP shares, increased equity by $804 thousand.&nbsp;
  Amounts paid to fund the discount on reinvested dividends reduced equity by
  $476 thousand.&nbsp; The market value adjustment for available for sale securities
  net increased equity by $20.1 million for the period.&nbsp; Proceeds from the
  reissuance of treasury shares to provide for stock options exercised increased
  equity by $3.4 million during 2002.&nbsp; Equity capital was also impacted during
  2002 by an increase of $830 thousand from the reissuance of treasury shares
  to fund an acquisition.<br>
  <br>
  &nbsp;<br>
  <br>
  </font></p>
<p align="center"><font size=3 face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  30<br>
  <br clear=all>
  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> CAPITAL RESOURCES</u> (continued)<br>
  <br>
  A strong capital base provides the Corporation with a foundation to expand lending,
  to protect depositors and 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.&nbsp; The minimum
  leverage ratio is not specifically defined, but is generally expected to be
  3-5 percent for all but the most highly rated banks, as determined by a regulatory
  rating system.<br>
  <br>
  The table below presents the Corporation's capital position at <br>
  September 30, 2002:<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  Amount<br>
  (in thousands)</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>Percent<br>
  of Adjusted<br>
  Assets</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>$397,060</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;12.8%</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td width=156 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;123,976</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;4.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;431,854</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>13.9</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;247,952</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;397,060</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.8</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement </font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;136,094</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;3.0</font></p>
  </td>
 </tr>
</table>

<p><font size=3
face=Courier><br>
  <br>
  For an institution to qualify as well capitalized under regulatory guidelines,
  Tier 1, Total and Leverage Capital ratios must be at least 6.0%, 10.0% and 5.0%,
  respectively.&nbsp; At September 30, 2002, the Corporation's banking subsidiaries
  exceeded those requirements. <br>
  <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>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  31<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES</font></p>
<p><font size=3
face=Courier> ITEM 4.&nbsp; 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>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  <br>
  32<br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES</font></p>
<p><font size=3
face=Courier>PART II - OTHER INFORMATION<br>
  <br>
  ITEM 1.&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; There were no material legal
  proceedings to which the Corporation<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or its subsidiaries are a
  party, or of which any of their<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; property is the subject, except
  proceedings which arise in the<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;normal course of business
  and, in the opinion of management, will<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; not have a material adverse
  effect on the consolidated operations<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or financial position of the
  Corporation and its subsidiaries.<br>
  &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
  ITEM 2.&nbsp;&nbsp; CHANGES IN SECURITIES<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable<br>
  <br>
  ITEM 3.&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Not applicable<br>
  <br>
  ITEM 4.&nbsp;&nbsp; SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Not applicable<br>
  <br>
  ITEM 5.&nbsp;&nbsp;&nbsp;OTHER INFORMATION<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; The Corporation's Chief Executive
  Officer and Chief Financial<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Officer have furnished to
  the SEC the certification with respect<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; to this Form 10-Q that is
  required by Section 906 of the <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Sarbanes-Oxley Act of 2002.
  <br>
  <br>
  ITEM 6.&nbsp;&nbsp;&nbsp;EXHIBITS AND REPORTS ON FORM 8-K<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;
  Exhibits<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.1 Form of Separation Agreement and General<br>
  &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Release
  of Robert F. Koslow<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.2 Form of Separation Agreement and General<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Release of David S. Dahlmann<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  99.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  to 18 U.S.C. Section 1350 as adopted pursuant to Section<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  906 of the Sarbanes-Oxley Act of 2002<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  99.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  to 18 U.S.C. Section 1350 as adopted pursuant to Section<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  906 of the Sarbanes-Oxley Act of 2002<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;
  Reports on Form 8-K<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  None<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  33<br>
  <br clear=all>
  SIGNATURES</font></p>
<p align=center><font size=3
face=Courier> Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned thereunto duly authorized.<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  FIRST COMMONWEALTH FINANCIAL CORPORATION<br>
  (Registrant)</font></p>
<p><font size=3
face=Courier> DATED: NOVEMBER 8, 2002&nbsp;&nbsp;&nbsp;&nbsp; /S/Joseph E. O'Dell<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ____________________________________<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Joseph E. O'Dell, President and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;Chief Executive Officer<br>
  <br>
  <br>
  DATED: NOVEMBER 8, 2002&nbsp;&nbsp;&nbsp;&nbsp; /S/John J. Dolan&nbsp;&nbsp;&nbsp;&nbsp;
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; _____________________________________<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; John J. Dolan, Executive Vice<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; President and Chief Financial Officer<br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  34<br>
  <br clear=all>
  <b>CHIEF EXECUTIVE OFFICER CERTIFICATION</b></font></p>
<p><font size=3
face=Courier><b> </b><br>
  I, Joseph E. O'Dell, President and Chief Executive Officer, certify that: </font></p>
<table width="100%" border="0">
  <tr>
    <td valign="top"><font size=3
face=Courier>1.<br>
      </font></td>
    <td><font size=3
face=Courier>I have reviewed this quarterly report on Form 10-Q of First Commonwealth
      Financial Corporation;</font></td>
  </tr>
  <tr>
    <td height="33" valign="top"><font size=3
face=Courier>2. </font><br>
    </td>
    <td height="33"><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></td>
  </tr>
  <tr>
    <td valign="top"><font size=3
face=Courier>3. <br>
      </font></td>
    <td><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></td>
  </tr>
  <tr>
    <td height="157" valign="top"><font size=3
face=Courier>4. <br>
      </font></td>
    <td height="157"><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:<br>
      <br>
      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;<br>
      <br>
      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 &quot;Evaluation Date&quot;); and<br>
      <br>
      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; </font></td>
  </tr>
  <tr>
    <td valign="top" height="144"><font size=3
face=Courier>5. <br>
      </font></td>
    <td height="144">
      <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>
      <p><font size=3
face=Courier>a)&nbsp;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>
      <p><font size=3
face=Courier>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 </font></p>
    </td>
  </tr>
</table>
<p><font size=3
face=Courier><br>
  <br>
  <br>
  <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; <br>
  </font></p>
<p align=center><font size=3
face=Courier> &nbsp;&nbsp; <br>
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  35</font></p>
<p><font size=3
face=Courier> <br>
  </font></p>
<table width="100%" border="0">
  <tr>
    <td valign="top"><font size=3
face=Courier>6.&nbsp;</font></td>
    <td><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></td>
  </tr>
</table>
<p><font size=3
face=Courier> <br>
  <br>
  <br>
  &nbsp; <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  November 8, 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>&nbsp;&nbsp;&nbsp;&nbsp;
  <u>/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;&nbsp; &nbsp; <br>
  </u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp; Date&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;Signature<br>
  <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>President and Chief Executive Officer</u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;Title<br>
  <br>
  <br>
  <br>
  <br>
  <br>
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  <br>
  <br>
  <br>
  <br>
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  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  36</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  <b>CHIEF FINANCIAL OFFICER CERTIFICATION<br>
  </b></font></p>
<p><font size=3
face=Courier> I, John Dolan, Executive Vice President and Chief Financial Officer,
  certify that:<br>
  <br>
  </font></p>
<table width="100%" border="0">
  <tr>
    <td valign="top"><font size=3
face=Courier>1.</font></td>
    <td><font size=3
face=Courier>I have reviewed this quarterly report on Form 10-Q of First Commonwealth
      Financial Corporation;</font></td>
  </tr>
  <tr>
    <td valign="top"><font size=3
face=Courier>2.</font></td>
    <td><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></td>
  </tr>
  <tr>
    <td valign="top"><font size=3
face=Courier>3.</font></td>
    <td><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></td>
  </tr>
  <tr>
    <td valign="top" height="243"><font size=3
face=Courier>4.</font></td>
    <td height="243">
      <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>
      <p><font size=3
face=Courier>a)&nbsp;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>
      <p><font size=3
face=Courier>b)&nbsp;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>
      <p><font size=3
face=Courier>c)&nbsp;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>
  <tr>
    <td valign="top" height="170"><font size=3
face=Courier>5.</font></td>
    <td height="170"><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):<br>
      <br>
      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<br>
      <br>
      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 </font></td>
  </tr>
</table>
<p><font size=3
face=Courier>&nbsp;&nbsp; <br>
  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  &nbsp;&nbsp; <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  <br>
  37</font></p>
<p><font size=3
face=Courier><br>
  <br clear=all>
  </font></p>
<table width="100%" border="0">
  <tr>
    <td valign="top"><font size=3
face=Courier>6.</font></td>
    <td><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></td>
  </tr>
</table>
<p><font size=3
face=Courier><br>
  &nbsp;&nbsp; <br>
  <br>
  <br>
  <br>
  &nbsp;&nbsp; <u>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; November 8, 2002&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  </u>&nbsp;&nbsp;&nbsp;&nbsp; <u>/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;
  </u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp; Date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp; Signature<br>
  <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
  Vice President and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <u>Chief Financial Officer&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; </u><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Title<br>
  <br>
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  <br>
  <br>
  </font></p>
<p align=center><font size=3
face=Courier><br>
  <br>
  38<br>
  <br>
  </font></p>



</body>

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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": "02814038"}, "business-address": {"street1": "OLD COURTHOUSE SQUARE", "street2": "22 N SIXTH ST", "city": "INDIANA", "state": "PA", "zip": "15701", "phone": "7243497220"}, "mail-address": {"street1": "22 NORTH SIXTH STREET", "street2": "P.O. BOX 400", "city": "INDIANA", "state": "PA", "zip": "15701"}}
Common
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number
0-11242
First Commonwealth Financial Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania           
                     
       25-1428528
(State or other jurisdiction of             
       (I.R.S. Employer
incorporation or organization)               
  Identification No.)
22 North Sixth Street             
            Indiana, PA  15701
(Address of principal executive offices)           
            (Zip Code)
724-349-7220
(Registrant's
  telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate a check mark whether the registrant(1) has filed all reports required
  to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
  the preceding 12 months (or for such shorter period that the registrant was
  required to file such reports), and (2) has been subject to such filing requirements
  for the past 90 days.
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par
  Value as of October 25, 2002 was 58,847,898.
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1
.   FINANCIAL STATEMENTS
Included in Part I of this
  report:                 
       PAGE
First Commonwealth Financial
  Corporation and
Subsidiaries Consolidated Balance Sheets . . .       3
Consolidated Statements of Income. . . . . . .       4
Consolidated Statements of Changes in
Shareholders' Equity. . . . . . . . . . .       5
Consolidated Statements of Cash Flows. . . . .       6
Notes to Consolidated Financial Statements . .       7
ITEM 2
.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . .      11
ITEM 3
.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK . . . . . . .
  . . . . . . . . . . . . .      31
ITEM 4
.   CONTROLS AND PROCEDURES . . . . . . . . . .
  . . . .      32
PART II - OTHER INFORMATION
Other Information . . . . . . . . . . . . . . . . . . . . . .     
  33
Signatures. . . . . . . . . . . . . . . . . . . . . . . . . .   
    34
Certification of Chief Executive Officer. . . . . . . . . . .    
   35
Certification of Chief Financial Officer. . . . . . . . . . .     
  37
Exhibits and Reports on Form 8K
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September
  30,
2002
December
  31,
2001
ASSETS
Cash and due from banks on demand .
        . . . . . . . . . . . . .
$    97,071
$    98,130
Interest-bearing deposits with banks.
        . . . . . . . . . . . .
2,611
4,250
Federal funds sold  . . . . . .
        . . . . . . . . . . . . . . .
-0-
-0-
Securities available for sale, at market.
        . . . . . . . . . .
1,467,113
1,469,118
Securities held to maturity, at cost,
(Market value $252,980 in 2002
and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . .
243,849
293,290
Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . .
2,618,369
2,569,231
Unearned income . . . .
        . . . . . . . . . . . . . . . . . .
(904)
(1,297)
Allowance for credit losses
        . . . . . . . . . . . . . . . .
(34,794)
(34,157)
__________
___________
Net loans .
        . . . . . . . . . . . . . . . . . . . . . . .
2,582,671
2,533,777
Property and equipment. . . . . . .
        . . . . . . . . . . . . .
45,940
46,418
Other real estate owned . . . . . .
        . . . . . . . . . . . . .
1,661
1,619
Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . .
8,132
6,539
Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . .
36
232
Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . .
127,361
130,157
__________
_________
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .
$4,576,445
$4,583,530
==========
==========
LIABILITIES
Deposits
  (all domestic):
Noninterest bearing . .
        . . . . . . . . . . . . . . . . . .
$   393,092
$   412,695
Interest bearing. . . .
        . . . . . . . . . . . . . . . . . .
2,740,976
2,680,455
__________
__________
Total deposits.
        . . . . . . . . . . . . . . . . . . . . .
3,134,068
3,093,150
Short-term borrowings . . . . . . .
        . . . . . . . . . . . . .
334,580
427,736
Other liabilities . . . . . . . . .
        . . . . . . . . . . . . .
28,160
28,358
Company
  obligated mandatorily redeemable capital
securities of subsidiary trust. . . . . . . . . . .
        . . . .
35,000
35,000
Other long-term debt. . . . . . . .
        . . . . . . . . . . . . .
645,577
629,220
__________
__________
Total long-term
        debt. . . . . . . . . . . . . . . . . . .
680,577
664,220
__________
__________
Total liabilities
        . . . . . . . . . . . . . . . . . . . .
4,177,385
4,213,464
SHAREHOLDERS' EQUITY
Preferred
  stock, $1 par value per share,
3,000,000 shares authorized, none issued . . . . .
        . . . .
-0-
-0-
Common
  stock, $1 par value per share,
100,000,000 shares authorized,
  62,525,412
shares issued; 58,847,898 and
  58,451,624
shares outstanding at September 30, 2002 and
December 31, 2001 respectively. . . . . . . . . . .
        . . . .
62,525
62,525
Additional paid-in capital. . . . .
        . . . . . . . . . . . . .
64,929
66,176
Retained earnings . . . . . . . . .
        . . . . . . . . . . . . .
292,560
288,219
Accumulated other comprehensive income.
        . . . . . . . . . . .
28,797
8,703
Treasury
  stock (3,677,514 shares at September 30, 2002 and
4,073,788 at December 31, 2001, at cost). . . . . .
        . . . .
(46,429)
(51,431)
Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . .
(3,322)
(4,126)
__________
__________
Total shareholders'
        equity. . . . . . . . . . . . . . . .
399,060
370,066
__________
__________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . .
$4,576,445
$4,583,530
==========
==========
The accompanying notes
  are an integral part of these consolidated financial statements.
3
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
  INCOME
(Unaudited)
(Dollars in thousands, except per share data)
For the
  Quarter
Ended September 30,
For the
  9 Months
Ended September 30,
__
  2002__
__
  2001__
__2002__
2001_
Interest Income
Interest and fees on loans . . . . .
        . . . . .
$ 44,943
$ 
  50,847
$135,490
$
  153,824
Interest
  and dividends on investments:
Taxable interest . . . .
        . . . . . . . . . .
21,005
23,639
65,034
70,413
Interest exempt from Federal
        income taxes. .
2,363
2,432
7,172
7,177
Dividends. . . . . . . .
        . . . . . . . . . .
464
615
1,457
2,044
Interest on Federal funds sold . . .
        . . . . .
2
3
6
491
Interest on bank deposits. . . . . .
        . . . . .
7
21
26
59
_______
_______
________
________
Total interest
        income. . . . . . . . . . .
68,784
77,557
209,185
234,008
Interest
  Expense
Interest on deposits . . . . . . . .
        . . . . .
19,409
29,723
61,512
93,023
Interest on short-term borrowings. .
        . . . . .
1,305
2,742
4,572
8,975
Interest on company obligated mandatorily
redeemable capital securities of subsidiary
trust . . . . . . . . . . . . . . . . . . .
832
832
2,494
2,494
Interest on other long-term debt . .
        . . . . .
8,911
8,703
26,305
25,769
______
______
______
______
Total interest
        on long-term debt . . . . .
9,743
9,535
28,799
28,263
______
______
______
______
Total interest
        expense . . . . . . . . . .
30,457
42,000
94,883
130,261
______
______
______
______
Net Interest
  Income
38,327
35,557
114,302
103,747
Provision for credit losses. . . . .
        . . . . .
3,103
3,542
9,028
8,506
______
______
______
______
Net interest income after provision for
credit losses . . . . . . . . . . . . .
35,224
32,015
105,274
95,241
Other Income
Securities gains . . . . . . . . . .
        . . . . .
26
1,330
641
3,325
Trust income . . . . . . . . . . . .
        . . . . .
1,227
1,265
3,782
3,815
Service charges on deposit accounts.
        . . . . .
3,010
2,804
8,449
8,092
Insurance commissions. . . . . . . .
        . . . . .
1,055
1,111
2,862
2,399
Income from bank owned life insurance.
        . . . .
1,186
1,096
3,428
3,156
Other income . . . . . . . . . . . .
        . . . . .
2,897
3,153
8,565
9,612
______
_______
_______
_______
Total other
        income . . . . . . . . . . . .
9,401
10,759
27,727
30,399
Other
  Expenses
Salaries and employee benefits . . .
        . . . . .
14,505
13,588
43,915
40,658
Net occupancy expense  . . . .
        . . . . . . . .
1,668
1,577
4,967
4,977
Furniture and equipment expense. . .
        . . . . .
2,391
2,168
7,357
6,548
Data processing expense. . . . . . .
        . . . . .
558
795
1,484
2,383
Pennsylvania shares tax expense. . .
        . . . . .
969
944
2,960
2,855
Goodwill amortization. . . . . . . .
        . . . . .
0
230
0
691
Intangible amortization. . . . . . .
        . . . . .
8
122
196
368
Litigation settlement. . . . . . . .
        . . . . .
0
0
8,000
0
Restructuring charges. . . . . . . .
        . . . . .
2,473
0
5,589
0
Other operating expenses . . . . . .
        . . . . .
6,919
6,609
22,081
19,012
_______
_______
_______
_______
Total other
        expenses . . . . . . . . . . .
29,491
26,033
96,549
77,492
_______
_______
_______
_______
Income before income taxes
.
. . . . .
. . .
15,134
16,741
36,452
48,148
Applicable income taxes . . . . . .
        . . . . .
2,947
4,023
5,670
11,373
________
________
________
________
Net income . . . . . . . . . . . . . .
        . .
$ 12,187
$ 12,718
$ 30,782
$ 36,775
=======
=======
=======
=======
Average Shares Outstanding . . . . . . . .
        . . .
58,521,562
57,975,650
58,342,470
57,833,280
Average Shares Outstanding Assuming Dilution
        . .
58,862,215
58,342,525
58,734,144
58,062,021
Per Share Data:
Basic earnings per share. . . . . .
        . . . . .
$ 0.21
$ 0.22
$ 
  0.53
$
  0.64
Diluted earnings per share. . . . .
        . . . . .
$ 0.21
$ 0.22
$ 
  0.52
$ 0.63
Cash dividends per share. . . . . .
        . . . . .
$ 0.150
$ 0.145
$ 
  0.450
$ 0.435
The accompanying notes are an integral part of these consolidated financial
  statements.
4
FIRST COMMONWEALTH
  FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
______
Additional
Paid-In
Capital
_________
Retained
Earnings
________
Accumulated
Other
Comprehensive
Income
_____________
Treasury
Stock
________
Unearned
ESOP
Shares
______
Total
Shareholders'
Equity
_____________
Balance at
December 31, 2000. .
$62,525
$67,223
$272,169
$(7,808)
$(54,666)
$(5,287)
$334,156
Comprehensive income
Net income. . . .
-0-
-0-
36,775
-0-
-0-
-0-
36,775
Other comprehensive
income, net of
tax:
Unrealized
holding gains on
securities
arising during
the period . . .
-0-
-0-
-0-
34,287
-0-
-0-
34,287
Less:
reclassification
adjustment for
gains on
securities
included in net
income . . . .
-0-
_______
-0-
_______
-0-
________
(2,127)
_______
-0-
________
-0-
________
(2,127)
_________
Total other
comprehensive
income . . . . . .
-0-
_______
-0-
_______
-0-
________
32,160
_______
-0-
________
-0-
________
32,160
_________
Total comprehensive
income. . . . . . .
-0-
-0-
36,775
32,160
-0-
-0-
68,935
Cash dividends
declared . . . . . .
-0-
-0-
(25,372)
-0-
-0-
-0-
(25,372)
Decrease in unearned
ESOP shares  . . . .
-0-
-0-
-0-
-0-
-0-
893
893
Discount on dividend
reinvestment plan
purchases . . . . .
-0-
(460)
-0-
-0-
-0-
-0-
(460)
Treasury stock
reissued. . . . . .
-0-
________
(725)
_______
-0-
________
-0-
______
3,126
________
-0-
_______
2,401
________
Balance at
September 30, 2001.
$62,525
=======
$66,038
=======
$283,572
========
$24,352
=======
$(51,540)
=========
$(4,394)
========
$380,553
========
Balance at
December 31, 2001 . .
$62,525
$66,176
$288,219
$ 8,703
$(51,431)
$(4,126)
$370,066
Comprehensive income
Net income. . . . .
-0-
-0-
30,782
-0-
-0-
-0-
30,782
Other comprehensive
income,net of tax:
Unrealized
holding gains on
securities
arising during
the period . . .
-0-
-0-
-0-
20,490
-0-
-0-
20,490
Less:
reclassification
adjustment for
gains on
securities
included in net
income . . . . .
-0-
_______
-0-
_______
-0-
________
(396)
________
-0-
________
-0-
________
(396)
_________
Total other
comprehensive
income. . . . . .
-0-
_______
-0-
_______
-0-
________
20,094
_______
-0-
________
-0-
________
20,094
_________
Total comprehensive
income. . . . . .
-0-
-0-
30,782
20,094
-0-
-0-
50,876
Cash dividends
declared . . . . . .
-0-
-0-
(26,441)
-0-
-0-
-0-
(26,441)
Decrease in unearned
ESOP shares. . . . .
-0-
-0-
-0-
-0-
-0-
804
804
Discount on dividend
reinvestment plan
purchases . . . . .
-0-
(476)
-0-
-0-
-0-
-0-
(476)
Treasury stock
reissued. . . . . .
-0-
(771)
-0-
-0-
5,002
-0-
4,231
______
______
________
_______
_________
________
________
Balance at
September 30,2002. .
$62,525
=======
$64,929
=======
$292,560
========
$28,797
=======
$(46,429)
=========
$(3,322)
========
$399,060
========
The accompanying notes are an integral part of these consolidated financial
  statements.
5
FIRST COMMONWEALTH FINANCIAL
  CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
  OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the
  Nine Months
Ended September 30,
2002
2001
Operating Activities
Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . . .
$  30,782
$  36,775
Adjustments to reconcile net income to net
cash provided by operating
  activities:
Provision for credit
        losses. . . . . . . . . . . . . . . . .
9,028
8,506
Depreciation and amortization.
        . . . . . . . . . . . . . . .
5,364
5,625
Net gains on sales
        of assets . . . . . . . . . . . . . . . .
(680)
(4,456)
Income from increase
        in cash surrender value of bank owned
life insurance. . . . . . . . . . . . .
        . . . . . . . . . .
(3,428)
(3,156)
Decrease in interest
        receivable. . . . . . . . . . . . . . .
2 322
999
Decrease in interest
        payable . . . . . . . . . . . . . . . .
(3,124)
(18,841)
Increase (decrease)
        in income taxes payable .  . . . . . . .
(2,705)
945
Change in deferred
        taxes . . . . . . . . . . . . . . . . . .
(374)
(74)
Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . .
3,595
(3,083)
______
_______
Net cash provided
        by operating activities . . . . . . . . .
40,782
23,240
Investing
  Activities
Transactions with securities held to maturity:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .
-0-
-0-
Proceeds from maturities and redemptions
        . . . . . . . . . . .
64,723
109,057
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .
(15,241)
(18,629)
Transactions with securities available for sale:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . .
12,602
85,657
Proceeds from maturities and redemptions
        . . . . . . . . . . .
363,974
342,071
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . .
(343,056)
(653,693)
Proceeds from sales of loans and other
        assets . . . . . . . . .
71,698
69,219
Acquisition of affiliate, net of cash
        received. . . . . . . . .
(4)
-0-
Investment in bank owned life insurance
        . . . . . . . . . . . .
(5,000)
(15,000)
Net decrease (increase) in time deposits
        with banks . . . . . .
1,639
(2,719)
Net increase in loans . . . . . . .
        . . . . . . . . . . . . . .
(129,917)
(181,388)
Purchases of premises and equipment
        . . . . . . . . . . . . . .
(4,717)
(5,379)
________
________
Net cash provided (used)
        by investing activities. . . . . . .
16,701
(270,804)
Financing
  Activities
Repayments of other long-term debt.
        . . . . . . . . . . . . . .
(1,050)
(673)
Proceeds from issuance of other long-term
        debt. . . . . . . . .
18,200
9,500
Discount on dividend reinvestment plan
        purchases. . . . . . . .
(476)
(460)
Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . .
(26,381)
(25,335)
Net increase (decrease) in Federal funds
        purchased . . . . . .
(30,525)
67,525
Net increase (decrease) in other short-term
        borrowings. . . . .
(62,630)
32,238
Sale of branch and deposits, net of
        cash received . . . . . . .
-0-
(9,591)
Net increase in deposits. . . . . .
        . . . . . . . . . . . . . .
40,918
153,947
Proceeds from sale of treasury stock.
        . . . . . . . . . . . . .
3,402
2,401
________
_______
Net cash provided (used)
        by financing activities. . . . . . .
(58,542)
229,552
________
_______
Net decrease in cash and
        cash equivalents . . . . . . . . . .
(1,059)
(18,012)
Cash and cash equivalents at January
        1. . . . . . . . . . . . .
98,130
101,848
________
_______
Cash and cash equivalents at September
        30. . . . . . . . . . .
$  97,071
$  83,836
========
=======
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
September 30, 2002
(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. 
  Certain prior period amounts have been reclassified to conform with the current
  period presentation.  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 September 30, 2002, and the
  results of operations for the three month and nine month periods ended September
  30, 2002 and 2001, and statements of cash flows and changes in shareholders'
  equity for the nine month periods ended September 30, 2002 and 2001.  The
  results of operations for the interim periods 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
  2001 Annual Report on Form 10-K.
NOTE 2     Cash Flow Disclosures (dollar amounts in thousands)
2002
2001
Cash
  paid during the first nine months of the year for:
Interest
$ 98,007
$149,102
Income taxes
$ 
  9,010
$ 10,206
Noncash
  investing and financing activities:
ESOP loan reductions
$   
  804
$    893
Loans transferred to other real estate
  owned and
repossessed assets
$ 
  4,568
$  3,743
Gross increase in market value adjustment
  to
securities available for sale
$ 30,913
$ 49,477
Treasury stock reissued for acquisition
$   
  830
$    -0-
7
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE 3     Comprehensive Income Disclosures
The following table identifies the related tax effects allocated to each
  component of other comprehensive income in the Statements of Changes in Shareholders'
  Equity: (dollar amounts in thousands)
September
  30, 2002
September
  30, 2001
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Unrealized gains (losses) on securities:
Unrealized holding gains (losses)
arising during the period . . . .
$31,523
$(11,033)
$20,490
$52,750
$(18,463)
$34,287
Less: reclassification adjustment
for gains realized in net income.
(610)
214
(396)
(3,273)
1,146
(2,127)
_______
______
_______
_______
_______
_______
Net unrealized
        gains (losses) .
30,913
(10,819)
20,094
49,477
(17,317)
32,160
_______
______
_______
_______
_______
_______
Other comprehensive income. .
$30,913
$(10,819)
$20,094
$49,477
$(17,317)
$32,160
=======
=======
========
========
=======
========
NOTE 4     Business Combination
Effective March 1, 2002, the Corporation acquired all of the outstanding shares
  of Strategic Capital Concepts, Inc. ("SCC") and Strategic Financial
  Advisors, Inc. ("SFA"), each a Pennsylvania corporation headquartered
  in Allison Park, Pennsylvania.  As a registered investment adviser, Strategic
  Capital Concepts provides financial planning, asset management and consulting
  services to individuals, businesses, retirement plans, trusts and estates. 
  Strategic Financial Advisors offers investment and insurance products as well
  as employee benefit services.  Each of the outstanding shares of Strategic
  Capital Concepts, Inc. and Strategic Financial Advisors, Inc. were exchanged
  for shares of the Corporation's common stock.  In addition, the shareholders
  of SCC and SFA are entitled to receive additional shares of the Corporation's
  common stock for each of the years 2002 through 2005 based on a formula defined
  in the merger agreement which takes into consideration the financial performance
  of SCC and SFA after the merger date.  The merger was accounted for as
  a purchase transaction whereby the identifiable tangible and intangible assets
  and liabilities of SCC and SFA have been recorded at their fair values at the
  acquisition date.  Goodwill in the amount of $1.6 million was recorded
  as a result of the transaction.  As prescribed under the purchase method
  of accounting, the results of operations of SCC and SFA from the date of acquisition
  are included in the Corporation's financial statements for 2002.  In October,
  2002 SFA was merged into SCC and the name was changed to First Commonwealth
  Financial Advisors Inc.  This acquisition should expand the Corporation's
  product offerings and positively impact fee based revenue, which is a continuing
  priority.
NOTE 5     Goodwill and Other Intangible Assets
On January 1, 2002, the Corporation adopted FASB Statement No. 142, "Goodwill
  and Other Intangible Assets" ("FAS No. 142"), which addresses
  the accounting and reporting for acquired goodwill and other intangible assets
  which supersedes APB Opinion No. 17, "Intangible Assets". FAS No.
  142 includes requirements to test goodwill and indefinite-lived intangible
8
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE 5     Goodwill and Other Intangible Assets
(continued)
assets for impairment rather than amortize them.  As of January 1,
  2002, the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million subject to the transitional testing provisions of FAS No. 142. 
  Also, management reclassified an intangible asset previously recorded by an
  insurance subsidiary when acquiring the expiring list of policy holders from
  their joint-venture partner to goodwill with a net carrying amount of $718 thousand.
As of January 1, 2002, the Corporation discontinued the amortization of goodwill
  which is expected to reduce other operating expense by $922 thousand in 2002. 
  Goodwill amortization expense was $230 thousand and $691 thousand for the third
  quarter and first nine months of 2001 respectively.  Goodwill represented
  basic and diluted earnings per share of $0.004 and $0.012 for the three and
  nine month periods ending September 30, 2001.  Upon implementation of the
  standard, the Corporation determined no impairment existed on its outstanding
  goodwill.
NOTE 6     Restructuring Charges
The Corporation incurred restructuring charges during the first nine months
  of 2002 of $5.6 million which included $3.1 million recognized in the second
  quarter of 2002 and an additional $2.5 million recognized in the third quarter
  of 2002 as additional activities were identified for inclusion in restructuring. 
  The restructuring charges were comprised of $4.2 million related to employee
  separation costs, $1.1 million related to realignment of the various Boards
  of Directors and Board committees and $324 thousand resulting from the write
  off of obsolete signage and supplies.  These amounts are included as restructuring
  charges, as a component of Other Expenses on the Consolidated Statements of
  Income.  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.  (Further information on these activities is included
  in the Management's Discussion and Analysis of Financial Condition and Results
  of Operation section of this document.)
Employee separation costs consists of the severance packages for 95 employees,
  70 in the second quarter of 2002 and 25 in the third quarter of 2002, from various
  affiliates of the Corporation including all levels of staff from the executive
  management level to back office support staff.  The amounts of employee
  separation costs accrued and charged to expense were $2.8 million and $1.4 million
  in the second and third quarters of 2002, respectively, for a total of $4.2
  million for the nine month period.  The write off of the signage and supplies
  occurred in the second quarter of 2002 and the charges related to the Board
  realignment occurred in the third quarter of 2002.
The actual termination benefits paid and charged against the total restructuring
  liability through September 30, 2002 were $317 thousand.  Net adjustments
  to the liability through September 30, 2002 were $36 thousand and the actual
  number of employees terminated were 84 as 11 employees took other positions
  with the Corporation.
9
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE 7     New Accounting Pronouncements
Effective January 1, 2002, the Corporation adopted FASB Statement No. 144, "Accounting
  for the Impairment or Disposal of Long-Lived Assets" ("FAS No. 144")
  which requires that long-lived assets be reviewed for impairment whenever events
  or changes in circumstances, such as a significant decrease in the market value
  of an asset or the extent or manner in which an asset is used indicate that
  the carrying amount of an asset may not be recoverable.  If there is an
  indication that the carrying amount of an asset may not be recoverable, future
  undiscounted cash flows expected to  result from the use and disposition
  of the asset are estimated.  If the sum of the expected cash flows is less
  than the carrying value of the asset a loss is recognized for the difference
  between the carrying value and the market value of the asset.  This statement
  also requires measurement of long-lived assets classified as held for sale at
  the lower of their carrying amount or fair value less cost to sell and to cease
  depreciation or amortization on these assets.  Implementation of FAS No.
  144 did not have a material impact on the Corporation's financial condition
  or results of operations.
In April 2002, the FASB issued Statement No. 145, "Rescission of FASB Statements
  No. 4, 44, and 64, Amendment of FASB Statement No. 13, and Technical Corrections"
  ("FAS No. 145").  FAS No. 145 rescinds Statement 4, which required
  all gains and losses from extinguishment of debt to be aggregated and, if material,
  classified as an extraordinary item, net of related income tax effect. 
  As a result, the criteria in Opinion 30 will now be used to classify those gains
  and losses.  This statement also amends FASB Statement No. 13 to require
  that certain lease modifications that have economic effects similar to sale-leaseback
  transactions be accounted for in the same manner as sale-leaseback transactions. 
  This statement also makes technical corrections to existing pronouncements,
  which are not substantive but in some cases may change accounting practice. 
  FAS No.145 was effective for transactions occurring after May 15, 2002. 
  Implementation of FAS No. 145 did not have a material impact on the Corporation's
  financial condition or results of operations.
In July 2002, the FASB issued Statement No. 146, "Accounting for Costs
  Associated with Exit or Disposal Activities" ("FAS No. 146"). 
  FAS No. 146 replaces 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 prospectively to exit or disposal
  activities initiated after December 31, 2002. Upon adoption, FAS No. 146 is
  not expected to have a material impact on the Corporation's financial condition
  or results of operations.
In October 2002, the FASB issued Statement No. 147, "Acquisitions of Certain
  Financial Institutions, an amendment of FASB Statements No. 72 and 144 and FASB
  No. 9" ("FAS No. 147").  FAS No. 147 removes acquisitions
  of financial institutions, except for transactions between two or more mutual
  enterprises, from the scope of both FASB Statement 72 and Interpretation 9 and
  requires that those transactions be accounted for in accordance with
10
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE 7     New Accounting Pronouncements
(continued)
FASB Statements No. 141 and No. 142.  As a result, the requirement in FASB
  Statement 72 to recognize, and subsequently amortize, any excess of the fair
  value of liabilities assumed over the fair value of tangible and identifiable
  assets acquired as an unidentifiable asset no longer applies to acquisitions
  within the scope of this statement.  In addition, this statement amends
  FASB Statement No. 144 to include in its scope long-term customer relationship
  intangible assets of financial institutions such as depositor and borrower-relationship
  intangible assets and credit cardholder assets.  Consequently, those intangible
  assets are subject to the same undiscounted cash flow recoverability test and
  impairment loss recognition and measurement provisions that FASB Statement 144
  requires for other long-lived assets that are held and used.  The provisions
  of FAS No. 147 were effective October 1, 2002.  Implementation of FAS No.
  147 did not have a material impact on the Corporation's financial condition
  or results of operations.
ITEM 2. MANAGEMENT'S DISCUSSION AND
  ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
First Nine Months of 2002 as Compared to the First Nine Months of 2001
This discussion and the related financial data are presented to assist in the
  understanding and evaluation of the consolidated financial condition and results
  of operations of First Commonwealth Financial Corporation (the "Corporation")
  including its subsidiaries.  In addition to historical information, this
  discussion and analysis contains forward-looking statements.  The forward-looking
  statements contained herein are subject to certain risks and uncertainties that
  could cause actual results to differ materially from those projected in the
  forward-looking statements.  Important factors that might cause such a
  difference include, but are not limited to, those discussed in this "Management's
  Discussion and Analysis of Financial Condition and Results of Operations." 
  Readers are cautioned not to place undue reliance on these forward-looking statements,
  which reflect management's analysis only as of the date hereof.  The Corporation
  undertakes no obligation to publicly revise or update these forward-looking
  statements to reflect events or circumstances that arise after the date hereof.
Net income for the first nine months of 2002 was $30.8 million which decreased
  $6.0 million when compared to $36.8 million earned in the comparable period
  of 2001.  Basic and diluted earnings per share were $0.53 and $0.52 per
  share respectively for the first nine months of 2002 compared to $0.64 per share
  and $0.63 per share respectively for the same period of 2001.  The 2002
  period included $5.6 million ($3.6 million after-tax) of nonrecurring restructuring
  charges related to 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.  These
  restructuring charges included $4.2
11
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
million related to separation compensation for those employees whose positions
  were eliminated or chose not to relocate as a result of the merger of the subsidiary
  banks which took place on October 15, 2002. Additional restructuring charges
  of $1.1 million stemmed from the consolidation of various boards and committees
  to provide more efficient and effective corporate governance.  Ongoing
  savings from these restructuring charges are anticipated to be $3.6 million
  per year.  The fourth quarter will also include additional charges related
  to the implementation of the new common brand and identity.  Net income
  for the first nine months of 2002 was also negatively impacted by the $8.0 million
  litigation settlement ($5.2 million, net of tax effect) recorded in the first
  quarter.  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.
Core net income (excluding securities transactions, gains on asset sales and
  nonrecurring charges) was $39.2 million for the nine months of 2002, representing
  an increase of 15.3% compared to $34.0 million for the nine months of 2001. 
  Gains on the sale of assets includes securities gains of $641 thousand and $3.3
  million in 2002 and 2001, respectively, as well as a $989 thousand gain on the
  sale of a branch and a group of mortgages in 2001.  Diluted earnings per
  share for core earnings was $0.67 for the first nine months of 2002 compared
  to diluted earnings per share of $0.59 for the first nine months of 2001. 
  Return on average assets was 0.90% and return on average equity was 10.58% during
  the 2002 period, compared to 1.09% and 13.84%, respectively during the same
  period of 2001.  Return on average assets and return on average equity
  based on core earnings were 1.15% and 13.47%, respectively for the first nine
  months of 2002 compared to 1.01% and 12.79%, respectively for the year-to-date
  period of 2001.
For the Nine Months
Ended September 30,
2002
2001
Reconciliation of Core Earnings
Net
  income as reported
$30,782
$36,775
Non-core
  items (net of tax):
Gains on sale of assets
(417)
(2,804)
Restructuring charges
3,633
-0-
Litigation settlement
5,200
-0-
_______
_______
Core
  net income
$39,198
$33,971
=======
=======
Core
  basic earnings per share
$0.67
$0.59
Core
  diluted earnings per share
$0.67
$0.59
Core
  return on average assets
1.15%
1.01%
Core
  return on average equity
13.47%
12.79%
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 Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
The fundamental source of First Commonwealth's earnings, net interest income,
  is defined as the difference between income on earning assets and the cost of
  funds supporting those assets.  Net interest income was $114.3 million
  for the first nine months of 2002 compared to $103.7 million for the same period
  of 2001.  Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) improved to 3.79% for the
  nine months of 2002 compared to 3.49% for the same period of 2001 as the cost
  of funds declined more than asset yields and interest rates fell to near historic
  lows. The cost of deposits dipped 129 basis points (1.29%) for the nine-month
  period of 2002 while loan yields declined 111 basis points (1.11%) over the
  same period.  Continued pressure on net interest income is anticipated
  by the Corporation despite active management of interest rate risk.  Significant
  initiatives have been undertaken by the Corporation to expand its fee based
  services to minimize shrinkage of the net interest margin.
The following table shows the effect of changes in volumes and rates on interest
  income and interest expense.
Analysis of Changes in Net Interest Income
(dollar amounts in thousands)
2002 Change from 2001
Total
Change
Change Due
to Volume
Change Due
to Rate
Interest-earning
  assets:
Time deposits with banks
$(   33)
$    7
$(  
  40)
Securities
(5,971)
215
(6,186)
Federal funds sold
(485)
(468)
(17)
Loans
(18,334)
2,933
(21,267)
_______
_______
________
Total interest income
(24,823)
2,687
(27,510)
_______
_______
________
Interest-bearing
  liabilities:
Deposits
(31,511)
(1,697)
(29,814)
Short-term borrowings
(4,403)
1,780
(6,183)
Long-term debt
536
637
(101)
_______
_______
________
Total interest expense
(35,378)
720
(36,098)
_______
_______
_______
Net interest income
$10,555
$ 1,967
$ 8,588
=======
=======
=======
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 Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
Interest and fees on loans declined $18.3 million for 2002 compared to 2001
  levels.  The decrease in interest income included decreases in interest
  income due to rate of $21.3 million which were partially offset by increases
  in interest income due to volume of $2.9 million.  The total yield on loans
  for the first nine months of 2002 was 7.17%, compared to loan yields of 8.28%
  for the first nine months of 2001.  Average loans for the first nine months
  of 2002 rose $58.9 million compared to the first nine months of 2001 as increases
  in commercial loans, municipal loans and indirect installment loans were partially
  offset by decreases in average mortgage loans.  During 2002 the Corporation
  continued to offer competitive fixed rate mortgages to customers wanting to
  lock in rates during the current low interest rate environment.  The Corporation
  has reduced interest rate risk related to new mortgage loan production through
  utilization of various lending programs whereby loans originated by subsidiary
  banks are immediately sold along with the right to service these loans.
Interest income on investments declined $6.0 million for the nine months of
  2002 compared to the corresponding period of 2001 as decreases in interest income
  due to rate were only slightly offset by increases in interest income due to
  volume.  Total yield on investments was 6.06% for the first nine months
  of 2002 compared to 6.54% for the same period of 2001.  Declines in interest
  income due to rate for U.S. government agency securities were $3.9 million as
  yields on U.S. government agency securities decreased 48 basis points (0.48%)
  for the 2002 period compared to 2001.  Average investments for the nine
  months of 2002 included an increase of $38.7 million for corporate bonds compared
  to 2001 generating an increase in interest income of $2.0 million.
Interest on deposits decreased $31.5 million for the 2002 period compared to
  2001, as interest on total savings deposits decreased by $8.5 million and interest
  on time deposits dropped by $23.0 million.  Interest expense on deposits
  for the first nine months of 2002 reflected decreases due to rate of $19.5 million
  as the cost of total savings deposits decreased 115 basis points (1.15%) and
  the cost of time deposits fell 142 basis points (1.42%) compared to costs for
  the same period of 2001.  Average deposits for the first nine months of
  2002 included decreases in average time deposits of $138.2 million which were
  partially offset by increases in average total savings deposits of $76.7 million
  over 2001 averages.
Interest expense on short-term borrowings decreased $4.4 million for the nine
  months of 2002 compared to the corresponding period of 2001 as decreases in
  interest expense due to rate of $6.2 million were partially offset by increases
  in interest expense due to volume of $1.8 million compared to 2001 levels. 
  The cost of short-term borrowings for the 2002 period decreased by 253 basis
  points (2.53%) compared to 2001 costs of 4.37%.  The average balance of
  short-term borrowings for the first nine months of 2002 increased by $57.0 million
  compared to 2001 averages.
14
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
Interest expense on long-term debt rose $536 thousand for the nine months of
  2002 compared to the corresponding period of 2001 as a result of volume increases. 
  Average long-term debt for the nine months of 2002 increased by $14.9 million
  compared to 2001 averages as maturities were extended for short term borrowings
  from the Federal Home Loan Bank, to take advantage of the lower interest rate
  environment.
The provision for credit losses was $9.0 million for the nine months of 2002
  compared to $8.5 million for the nine months of 2001.  Net charge-offs
  against the allowance for credit losses were $8.4 million in the 2002 period,
  reflecting a decrease of $544 thousand compared to 2001 levels.  The most
  significant components of this period to period change were a decline of $1.6
  million in net charge-offs for commercial real estate loans partially offset
  by an increase in net charge-offs for commercial loans not secured by real estate
  of $1.3 million.  Net charge-offs as a percent of average loans outstanding
  were 0.32% for the nine months of 2002 compared to 0.35% for the same period
  of 2001.  The provision for credit losses as a percent of net charge-offs
  was 107.59% at September 30, 2002 compared to 95.20% at September 30, 2001. 
  See the "Credit Review" section for an analysis of the credit 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 Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
  nine month periods ended September 30, 2002 and 2001.
2002
2001
(amounts in thousands)
Balance
  January 1,
$34,157
$33,601
Loans
  charged off:
Commercial, financial and agricultural
4,633
2,413
Real estate-construction
3
-0-
Real estate-commercial
349
1,963
Real estate-residential
1,627
1,616
Loans to individuals
3,081
3,406
Lease financing receivables
307
392
_______
______
Total loans charged off
$10,000
$ 9,790
Recoveries
  of previously charged off loans:
Commercial, financial and agricultural
1,086
217
Real estate-construction
-0-
-0-
Real estate-commercial
-0-
-0-
Real estate-residential
16
48
Loans to individuals
502
585
Lease financing receivables
5
5
_______
_______
Total recoveries
1,609
855
_______
_______
Net charge offs
8,391
8,935
_______
_______
Provision
  charged to operations
9,028
8,506
_______
_______
Balance
  September 30,
$34,794
$33,172
=======
=======
Net securities gains were $641 thousand during the first nine months of 2002
  compared to $3.3 million for the same period of 2001.  Securities gains
  during the 2002 period resulted primarily from the sale of Pennsylvania bank
  stocks, U.S. Treasury securities and fixed rate corporate bonds classified as
  securities "available for sale" with book values of $1.1 million,
  $1.5 million, and $3.0 million, respectively.  The bank stocks sold were
  related to merger activity while the other securities sold were related to asset
  sector shift strategies.  Activity during the first nine months of 2001
  activity focused on the same strategies.  Asset sector shift strategies
  generated securities gains of $1.7 million resulting from the sale fixed rate
  corporate bonds with book values of $37.4 million.  Additional securities
  gains during the first nine months of 2001 resulted from the sale of fully valued
  Pennsylvania bank stocks with book values totaling $12.7 million.
16
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
Service charges on deposits are the most significant component of non-interest
  income amounting to 30.5% of the total.  This category rose $357 thousand
  over the comparable period of 2001, primarily as a result of increases in bank
  club and account analysis fees.  Insurance commissions rose $463 thousand
  for the nine-month period of 2002.  Increases included personal lines,
  commercial lines and annuities.  Insurance commissions were also positively
  impacted by inclusion of First Commonwealth Financial Advisors insurance production
  since March 1, 2002.
Other income for the first nine months of 2002 fell to $8.6 million representing
  a decline of $1.0 million compared to $9.6 million reported for the first nine
  months of 2001. This decrease was due in part to gains on sale of assets included
  in the 2001 period.  The Corporation sold one of its branches during the
  first quarter of 2001 which resulted in a gain of $777 thousand.  The 2001
  period also included a gain of $212 thousand from the sale of $12.9 million
  of 30 year residential mortgage loans with significant prepayment exposure during
  the falling interest rate environment.
Fee based revenue, such as insurance commissions, mutual fund sales fees and
  investment management fees are expected to be positively impacted in future
  periods as First Commonwealth Financial Advisors is incorporated into the integrated
  advisory sales model utilized to integrate products between the Corporation's
  bank, insurance and trust subsidiaries.  Certified financial planners from
  the new subsidiaries will be included on the employee team used to deliver products
  and services to commercial clients through our "Total Solutions Financial
  Management" approach.
Noninterest expense was $96.6 million for the nine months of 2002 reflecting
  an increase of $19.1 million over the 2001 level of $77.5 million.  The
  increase in noninterest expense for 2002 was primarily the result of nonrecurring
  charges for the previously described litigation settlement and corporate restructuring
  of $8.0 million and $5.6 million, respectively.   Employee costs were
  $43.9 million for the nine months of 2002, representing 1.29% of average assets
  on an annualized basis for 2002.  Salary costs for the 2002 period increased
  $1.9 million or 5.9% compared to 2001 levels of $32.1 million.  Employee
  benefit costs for the first nine months of 2002 reflected increases of $1.4
  million over the first nine months of 2001 and included increases in health
  insurance costs, expenses of the Corporation's employee stock ownership plan
  and 401(k) plan compared to the first nine months of 2001.
As a result of the merger of the Corporation's banking subsidiaries, Southwest
  Bank and First Commonwealth Bank, which occurred on October 15, 2002 as scheduled,
  banking operations are being consolidated under First Commonwealth Bank. 
  This change will provide banking clients with greater flexibility, efficiency
  and seamless service throughout our market-area.  As a result of this merger,
  there was a consolidation of support functions with some staff positions being
  eliminated. The personnel within the branches and relationship managers in corporate
  services will
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 Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
continue to serve in the same manner.  Employees whose positions were being
  eliminated were notified and continued to work in their positions for at least
  60 days.  Notified employees had the opportunity to seek other positions
  within the Corporation or to receive a separation package based on years of
  service.  Also, related to the merger, the structure of all of the Boards
  of Directors and Board committees for the Corporation was realigned.  As
  the result of these activities, restructuring charges of $5.6 million are reported
  on the income statement for the first nine months of 2002.  Ongoing savings
  from the restructuring are anticipated to be $3.6 million per year.  Other
  charges included during 2002 as part of the restructuring related to writing
  off obsolete signs and supplies due to the name change under one charter and
  amounted to $324 thousand.
Occupancy expenses for the first nine months of 2002 was flat compared to the
  first nine months of 2001.  Furniture and equipment expenses of $7.4 million
  reflected increases of $809 thousand over 2001 levels and included increases
  in computer software depreciation and software maintenance of $1.3 million,
  primarily related to the upgrade of core banking software.
Outside data processing expense declined $899 thousand for the nine-month period
  of 2002 compared to the first nine months of 2001 and was positively impacted
  by the conversion of Southwest Bank from outsourced processing to that provided
  by a subsidiary of the Corporation.  Accounting changes from the adoption
  of FAS No. 142 resulted in a decrease of $691 thousand of goodwill amortization
  for the first nine months of 2002 compared to the first nine months of 2001. 
  Under the new pronouncement, goodwill amortization was discontinued effective
  January 1, 2002.
Other operating expenses for the 2002 period were $22.1 million reflecting a
  rise of $3.1 million over the 2001 amount of $19.0 million.  The first
  nine months of 2002 included increases in loss on sale of assets, primarily
  the loss on sale of vehicles previously leased, of $549 thousand compared to
  2001 levels.  Other professional fees for the 2002 period reflected increases
  of $1.3 million over the first nine months of 2001 and included consulting fees
  related to implementation of the Corporation's "Balanced Scorecard"
  performance measurement system, enhancements to product and customer profitability
  systems, corporate restructuring and common branding and identity.  Consultants
  are also being utilized to assist in the ongoing efforts to develop a world
  class sales culture and to generate new deposit dollars and relationships. 
  Corporate restructuring and movement towards a sales culture also impacted the
  decision to have employee benefit plans reviewed by outside specialists during
  2002.  Promotions expense for the first nine months of 2002 reflected an
  increase of $1.5 million compared to the first nine months of 2001, due in part
  to expenses incurred in the successful marketing campaign for free checking
  products introduced during 2002.  These products are expected to have a
  favorable impact on deposit growth, costs and service charge revenue in future
  periods as well as providing potential add on sales of other financial products
  and services.
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 Nine Months of 2002 as Compared to the First Nine Months of 2001
(continued)
Also impacting this category were expenditures related to the launch of the
  new Corporate brand and identity.  This exciting campaign is designed to
  educate and build enthusiasm among current and potential clients.  Additional
  expenditures for this campaign will be incurred in the fourth quarter of 2002.
Income tax expense was $5.7 million for the first nine months of 2002 compared
  to $11.4 million for the first nine months of 2001.  The Corporation's
  effective tax rate was 15.6% for the 2002 period compared to 23.6% for the corresponding
  period of 2001.  Income tax expense for the 2002 period included $2.8 million
  and $2.0 million of tax benefits resulting from the previously described litigation
  settlement and restructuring charges, respectively.  The Corporation's
  effective tax rate for the 2002 period, excluding these one time charges was
  18.1%.
Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001
Net income was $12.2 million for the third quarter of 2002 a decline of $531
  thousand, compared to 2001 results of $12.7 million.  The 2002 period included
  a $2.5 million ($1.6 million after-tax) one-time restructuring charge related
  to employee separation pay and costs related to realignment of all Boards of
  Directors and Board committees.  Core earnings (excluding securities transactions,
  nonrecurring gains on sale of assets and nonrecurring charges) increased $1.9
  million or 16.2% in the 2002 period.  Basic and diluted earnings per share
  were $0.21 during the 2002 quarter compared to $0.22 for the same period of
  2001.  Diluted core earnings per share was $0.23 for the third quarter
  of 2002 compared to $0.20 for the third quarter of 2001.  Return on average
  assets was 1.06% and return on average equity was 12.11% during the 2002 quarter,
  compared to 1.10% and 13.72%, respectively during the 2001 quarter.  Core
  return on average assets and core return on average equity were 1.20% and 13.69%
  for the third quarter of 2002.
For the Quarter,
Ended September 30,
2002
2001
Reconciliation of Core Earnings
Net
  income as reported
$12,187
$12,718
Non-core
  items (net of tax):
Gains on sale of assets
(17)
(865)
Restructuring charges
1,608
-0-
_______
_______
Core net income
$13,778
$11,853
=======
=======
Core
  basic earnings per share
$0.24
$0.20
Core
  diluted earnings per share
$0.23
$0.20
Core
  return on average assets
1.20%
1.03%
Core
  return on average equity
13.69%
12.78%
19
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001
(continued)
Net interest income for the third quarter of 2002 of $38.3 million represented
  a rise of $2.8 million compared to the third quarter of 2001.  Net interest
  margin (net interest income, on a tax-equivalent basis, as a percentage of average
  earning assets) for the 2002 period was 3.78%, reflecting an increase of 30
  basis points (0.30%) from 3.48% reported in 2001 since the cost of funds declined
  more than asset yields, as interest rates fell throughout 2001 and remained
  at low levels during the 2002 period.
Interest and fees on loans for the three months ended September 30, 2002 decreased
  $5.9 million compared to the three months ended September 30, 2001, primarily
  as a result of rates dropping, most notably for variable rate commercial loans. 
  The total yield on loans for the third quarter of 2002 was 7.05% representing
  a decrease of 97 basis points (0.97%) compared to yields for the third quarter
  of 2001.  Declines in interest and fees on loans due to rate for the third
  quarter of 2002 compared to the third quarter of 2001 were only slightly offset
  by increases in interest income due to volume for commercial loans.  Average
  loans for the third quarter of 2002 increased $31.4 million compared to averages
  for the third quarter of 2001 and included increases in commercial loans and
  indirect installment loans which were partially offset by decreases in residential
  mortgage loans.
Interest income on investments for the three months ended September 30, 2002
  was $23.8 million, reflecting a dip of $2.9 million compared to the three months
  ended September 30, 2001.  Decreases in interest income due to rate for
  government agency securities were $1.2 million as yields on government agency
  securities declined 44 basis points (0.44%) compared to yields for 2001. 
  Total yield on investments was 5.94% for the third quarter of 2002 compared
  to 6.37% for the third quarter of 2001.  Changes in investment income due
  to rate totaled $1.8 million for the 2002 period as the overall level of interest
  rates were lower than in the prior year.  Volume decreases also reduced
  investment income in the 2002 period by $1.1 million as average investment volume
  fell by $68.0 million, primarily in the government agency and asset backed securities
  categories.
Interest on deposits for the third quarter of 2002 was $19.4 million, reflecting
  a drop of $10.3 million compared to the third quarter of 2001 as both rates
  and volumes declined for the 2002 period.  Interest expense on savings
  decreased due to rate of $3.1 million for the 2002 period as savings costs fell
  from 2.15% in 2001 to 1.06% in 2002.  Interest on time deposits reflected
  decreases due to rate of $6.1 million and decreases due to volume of $1.2 million
  for the third quarter of 2002 compared to the third quarter of 2001.  Average
  time deposits were $1,607.6 million for 2002 compared to $1,731.4 million for
  the corresponding period of 2001.  The cost of time deposits continued
  to decline as the 2002 period cost of 4.02% compared favorably to the 2001 cost
  of 5.42%.
20
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
Three Months ended September 30, 2002 as Compared to the Three Months Ended
  September 30, 2001
(continued)
Interest on short-term borrowings for the third quarter of 2002 decreased $1.4
  million compared to the third quarter of 2001 due to both rate and volume decreases. 
  Short-term borrowing costs were 1.79% for the 2002 period compared to 3.57%
  for the 2001 period resulting from declines in rate of $1.3 million and volume
  of $116 thousand.  Average short-term borrowings decreased $14.8 million
  for the third quarter of 2002 compared to the corresponding period of 2001. 
  Interest on long term debt for the three months ended September 30, 2002 increased
  by $208 thousand over the three months ended September 30, 2001.  Average
  long term debt rose $15.8 million for the 2002 quarter as maturities were extended
  for short term borrowings from the Federal Home Loan Bank taking advantage of
  the lower rate environment.
The provision for credit losses was $3.1 million for the three months ended
  September 30, 2002 compared to $3.5 million for the three months ended September
  30, 2001.  Net charge-offs for the third quarter of 2002 were $2.6 million,
  compared to net charge-offs of $4.3 million for the third quarter of 2001. 
  Net charge-offs for the third quarter of 2002 included decreases in charge-offs
  of commercial loans secured by real estate and commercial loans not secured
  by real estate of $1.3 million and $204 thousand respectively, compared to 2001
  levels.
Net securities gains were $26 thousand for the third quarter of 2002 compared
  to securities gains of $1.3 million for the third quarter of 2001.  The
  2002 period included gains from the call of municipal securities classified
  as "held to maturity" with book values of $3.4 million.  Securities
  gains for the third quarter of 2001 resulted primarily from sale of Pennsylvania
  bank stocks with a book value of $12.7 million.
Service charges on deposits rose $206 thousand for the third quarter of 2002
  compared to the same period of 2001 and were favorably impacted by the Corporation's
  "High Performance" checking product launched in 2002.  This product
  should continue to favorably impact future periods.  Income from bank owned
  life insurance rose $90 thousand and insurance commissions slipped $56 thousand
  for the third quarter of 2002 compared to the third quarter of 2001.
Other income for the three months ended September 30, 2002 was $2.9 million,
  $256 thousand below the $3.2 million reported for the third quarter of 2001. 
  Period to period changes included decreased gains on sales of assets, bank club
  income and debit card interchange income offset in part by increased MAC income.
Total noninterest expense for the three months ended September 30, 2002 was
  $29.5 million reflecting an increase of $3.5 million over the $26.0 million
  that was reported for the prior year period.  The increase for 2002 includes
  $2.5 million of expense related to separation pay for additional employees as
  well as amounts paid to retiring directors.  As part of the
21
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
Three Months Ended September 30, 2002 as Compared to the Three Months Ended
September 30, 2001
(continued)
plan for the organization reflecting the consolidation of the multiple bank
  charters into one, the renaming and branding of First Commonwealth Bank, as
  well as realigning for its new vision on corporate governance, all of the Board
  of Directors and Board committees for the corporation and its subsidiaries have
  been restructured.  Most of the retiring directors were from boards of
  previously acquired banks.  Employee costs were $14.5 million during the
  third quarter of 2002 which reflects an increase of $917 thousand over 2001
  levels.  Salaries rose by $506 thousand and employee benefit costs increased
  by $411 thousand compared to prior period levels.  Employee benefit costs
  rose primarily due to increased health insurance costs of $237 thousand compared
  to 2001 levels.
Occupancy expense rose $91 thousand for the third quarter of 2002 compared
  to the same period of 2001.  Higher building rental expense was the principal
  factor in the period to period increase.  Furniture and equipment expense
  increased $223 thousand for the third quarter of 2002 primarily due to a rise
  in software depreciation and software maintenance costs.  Outside data
  processing expenses declined $237 thousand for the third quarter of 2002 due
  to the conversion of one of the Corporation's subsidiary banks to in-house data
  processing in the fourth quarter of 2001.  The three months ended September
  30, 2002 also included a decrease of $230 thousand related to the implementation
  of FAS No. 142 during 2002 which changed the accounting treatment for goodwill
  from an amortizing intangible to a non-amortizing intangible.
Other operating expenses for the third quarter of 2002 increased $310 thousand
  and included increased other professional fees ($346 thousand) and promotion
  expense ($430 thousand) offset in part by reductions in Pennsylvania sales tax
  expense ($253 thousand) and printing expense ($106 thousand).  As previously
  discussed, these charges resulted from various restructuring and marketing initiatives
  including sales and common branding, as well as performance measurement system
  enhancements.
Income taxes were $2.9 million for the 2002 period compared to $4.0 million
  for the corresponding period of 2001.  The Corporation's effective tax
  rate was 19.5% for the third quarter of 2002 compared to 24.0% for the third
  quarter of 2001.  The 2002 period included the tax benefit of $900 thousand
  related to the nonrecurring expenses for restructuring.  The Corporation's
  effective tax rate excluding nonrecurring expenses was 21.7% for the three months
  ended September 30, 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 subsidiaries
  core deposit base and the maturity or repayment of earning assets such as securities
  and loans.  As an additional secondary source,
22
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
short-term liquidity needs may be provided through the use of overnight Federal
  funds purchased, borrowings through the use of lines available for repurchase
  agreements and borrowings from the Federal Reserve Bank.  Additionally,
  the banking subsidiaries are members of the Federal Home Loan Bank and may borrow
  under overnight and term borrowing arrangements.  The sale of earning assets
  may also provide an additional source of liquidity.
The Corporation monitors liquidity through regular computations of prescribed
  liquidity ratios.  The Corporation actively manages liquidity within a
  defined range and has developed liquidity contingency plans, including ensuring
  availability of alternate funding sources to maintain liquidity under a variety
  of business conditions.  In addition to the previously described funding
  sources, the Corporation also has the ability to access the capital markets.
At September 30, 2002 total earning assets were $4,331.0 million, down slightly
  from the $4,334.6 million recorded at December 31, 2001.  Net loans rose
  $48.9 million for the first nine months of 2002 fueled by increases in the commercial,
  municipal and installment categories offset in part by decreases in mortgage
  loans.  Interest bearing liabilities were $3,756.1 million at September
  30, 2002, a decline of $16.3 million compared to year-end 2001.  Total
  deposits rose by $40.9 million as declines in demand deposits of $19.6 million
  and time deposits of $17.8 million were more than offset by increased savings
  deposits of $78.4 million over the same period.  The growth in savings
  deposits was focused primarily in the MMDA category, as clients registered a
  preference for this product due to economic uncertainties.  The Corporation
  has launched a program ("High Performance Checking") which focuses
  on growing deposits, principally in the low cost categories, that is expected
  to favorably impact deposit growth and mix.  Total borrowings dipped by
  $76.8 million for the first nine months of 2002 primarily due to the rise in
  deposits and maturities of investment securities.
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 September 30, 2002, securities available for sale had
  an amortized cost of $1,422.8 million and an approximate fair value of $1,467.1
  million.
Interest Sensitivity
The objective of interest rate sensitivity management is to maintain an appropriate
  balance between the stable growth of income and the risks associated with maximizing
  income through interest sensitivity imbalances.  While no single number
  can accurately describe the impact of changes in interest rates on net interest
  income, interest rate sensitivity positions, or "gaps", when measured
  over a variety of time periods, may be helpful.
23
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES MANAGEMENT'S
  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
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 $376.2 million or 8.22% of total assets as of September 30, 2002.  A
  positive gap tends to indicate that earnings will be impacted favorably if interest
  rates rise during the period and negatively when interest rates fall during
  the time period.  A negative gap tends to indicate that earnings will be
  affected inversely to interest rate changes.  In other words, as interest
  rates fall, a negative gap should tend to produce a positive effect on earnings,
  and when interest rates rise, a negative gap should tend to affect earnings
  negatively.
The primary components of ISA include adjustable rate loans and investments,
  loan repayments, investment maturities and money market investments.  The
  primary components of ISL include maturing certificates of deposit, money market
  deposits, savings deposits, NOW accounts and short-term borrowings.
24
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 September
  30, 2002 and December 31, 2001 (Dollar amounts in thousands).
September
  30, 2002
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
  950,194
$154,182
$(233,829)
$  870,547
Investments
236,435
139,057
273,353
648,845
Other interest-earning assets
2,611
-0-
543 812
546 423
_________
________
________
_________
Total
  interest-sensitive assets
1,189,240
293,239
583,336
2,065,815
_________
________
________
_________
Certificates of deposit
151,811
423,657
260,500
835,968
Other deposits
1,168,516
-0-
-0-
1,168,516
Borrowings
435,635
436
1,467
437,538
_________
________
________
_________
Total
  interest-sensitive
liabilities
1,755,962
424,093
261,967
2,442,022
_________
________
________
_________
Gap
$  (566,722)
$(130,854)
$ 321,369
$(376,207)
==========
========
========
==========
ISA/ISL
0.68
0.69
2.23
0.85
Gap/Total Assets
12.38%
2.86%
7.02%
8.22%
December
  31, 2001
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$ 839,279
$ 155,276
$ 276,760
$1,271,315
Investments
154,327
90,890
180,001
425,218
Other interest-earning assets
4,250
-0-
-0-
4,250
_________
________
________
_________
Total
  interest-sensitive assets
997,856
246,166
456,761
1,700,783
_________
________
________
_________
Certificates of deposit
329,825
284,518
407,188
1,021,531
Other deposits
1,090,160
-0-
-0-
1,090,160
Borrowings
430,189
350
750
431,289
_________
________
________
_________
Total
  interest-sensitive
Liabilities
1,850,174
284,868
407,938
2,542,980
_________
________
________
_________
Gap
$
  (852,318)
$
  (38,702)
$
  48,823
$ (842,197)
==========
=========
========
==========
ISA/ISL
0.54
0.86
1.12
0.67
Gap/Total Assets
18.60%
0.84%
1.07%
18.37%
25
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.  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 dynamic 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 the most
  likely case where interest rates are defined using projections of economic factors. 
  Additional simulations are produced estimating the impact on net interest income
  of a 300 basis point (3.00%) movement upward or downward from the base case
  scenario.  The Corporation's current asset/liability management policy
  indicates that a 300 basis point (3.00%) change in interest rates up or down
  cannot result in more than a 7.5% change in net interest income when compared
  to a base case, without Board approval and a strategy in place to reduce interest
  rate risk below the established maximum level.  The analysis at September
  30, 2002 indicated that a 300 basis point (3.00%) increase in interest rates
  would increase net interest income 116 points (1.16%) above the base case scenario
  and a 300 basis point (3.00%) decline in interest rates would decrease net interest
  income by 979 basis points (9.79%) below the base case scenario, over the next
  twelve months.  Assuming a 300 basis point (3.00%) decrease in interest
  rates, the Corporation is currently out of compliance with the asset/liability
  management policy.  Management believes the probability of a 300 basis
  point decrease in interest rates is not likely and no action is warranted at
  this time.  Additional simulation decreasing interest rates 100 basis points
  (1.00%) would result in a decrease in net interest income of 290 basis points
  (2.90%), within policy limits.
26
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
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 maximize the Corporation's net interest income based on 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 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 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.
27
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
At September 30,
2002
2001
(amounts in thousands)
Nonperforming
  Loans
:
Loans on nonaccrual basis
$   24,463
$   23,068
Past due loans
14,385
20,449
Renegotiated loans
209
835
__________
__________
Total nonperforming loans
$   39,057
$   44,352
==========
==========
Other real estate owned
$    1,661
$    1,716
Loans outstanding at end of period
$2,617,465
$2,594,029
Average loans outstanding (year-to-date)
$2,596,081
$2,537,192
Nonperforming loans as percent of total
  loans
1.49%
1.71%
Provision for credit losses
$    9,028
$    8,506
Net charge-offs
$    8,391
$    8,935
Net charge-offs as percent of average
loans outstanding
0.32%
0.35%
Provision for credit losses as percent
of net charge-offs
107.59%
95.20%
Allowance for credit losses as percent
of average loans outstanding
1.34%
1.31%
Allowance for credit losses as percent
of end-of-period loans outstanding
1.33%
1.28%
Allowance for credit losses as percent
of nonperforming loans
89.09%
74.79%
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.
28
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The following table identifies impaired loans, and information regarding the
  relationship of impaired loans to the reserve for credit losses at September
  30, 2002 and September 30, 2001.
2002
2001
(amounts
  in thousands)
Recorded investment in impaired loans at end of
  period
$24,672
$23,903
Year to date average balance of impaired loans
$25,009
$13,332
Allowance for credit losses related to impaired
  loans
$ 6,113
$ 3,242
Impaired loans with an allocation of the allowance
  for
credit losses
$15,640
$15,683
Impaired loans with no allocation of the allowance
  for
credit losses
$ 9,032
$ 8,220
Year to date income recorded on impaired loans on
  a cash basis
$   220
$   379
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 September 30, 2002, there were no significant concentrations of credit.
Nonperforming loans at September 30, 2002 decreased $5.3 million compared to
  2001 levels as reductions in past due loans and renegotiated loans were slightly
  offset by an increase in nonaccrual loans.  Past due loans improved both
  when compared to year-end 2001 and September 30, 2001. Nonaccrual loans include
  two significant credits in both periods.  The largest credit ($6.3 million)
  is not past due and carries an 80% guaranty of a U.S. government agency. 
  While a sale of the underlying assets is pending, final settlement may not occur
  until the second quarter of 2003.  The expected loss on this credit is
  fully reserved.  The second credit, which was $5.9 million at year-end
  2001, continues to be resolved through liquidation of collateral and exercising
  other remedies.  The balance outstanding at September 30, 2002, related
  to this credit is $3.3 million.  The Corporation anticipates final resolution
  of this credit by the second quarter of 2003 without additional losses in excess
  of amounts currently reserved.  Nonperforming loans at September 30, 2002,
  compared favorably to the balance at December 31, 2001 as past due loans and
  renegotiated loans declined offset in part by higher nonaccrual loan balances. 
  Nonperforming loans as a percent of total loans was 1.49% at September 30, 2002,
  compared to 1.62% at December 31, 2001, and 1.71% at September 30, 2001, while
  the allowance for credit losses as a percent of nonperforming loans was 89.09%,
  82.28% and 74.79%, respectively for the same periods.
29
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation's loan portfolio continues to be monitored by senior management
  to identify potential portfolio risks and detect potential credit deterioration
  in the early stages.  Committees formed during 2001 for the purpose of
  reviewing watchlist credits for workout progress or deterioration and monitoring
  loan loss adequacy and the status of significant nonperforming credits continue
  to provide additional internal monitoring and analysis in addition to that provided
  by the credit committees of the banks and parent company.  Credit risk
  is mitigated during the loan origination process through the use of sound underwriting
  policies and collateral requirements.  Management also attempts to minimize
  loan losses by analyzing and modifying collection techniques on a periodic basis.
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. 
  Management and the Corporation's Board of Directors review 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.  The Corporation believes that the allowance
  for credit losses is adequate at this time.  Uncertain economic conditions
  pose a risk to the banking industry but management believes that its risk management
  process serves as an early warning system so that appropriate responses will
  be implemented, as required.
CAPITAL RESOURCES
Shareholders' equity stood at $399.1 million at September 30, 2002, a $29.0
  million or 7.8% rise compared to December 31, 2001.  Dividends declared
  reduced equity by $26.4 million and $25.4 million for the first nine months
  of 2002 and 2001, respectively.  Payments by the Corporation's Employee
  Stock Ownership Plan (the "ESOP") to reduce debt it incurred to acquire
  the Corporation's common stock for future distribution as employee compensation,
  net of fair value adjustments to ESOP shares, increased equity by $804 thousand. 
  Amounts paid to fund the discount on reinvested dividends reduced equity by
  $476 thousand.  The market value adjustment for available for sale securities
  net increased equity by $20.1 million for the period.  Proceeds from the
  reissuance of treasury shares to provide for stock options exercised increased
  equity by $3.4 million during 2002.  Equity capital was also impacted during
  2002 by an increase of $830 thousand from the reissuance of treasury shares
  to fund an acquisition.
30
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL RESOURCES
(continued)
A strong capital base provides the Corporation with a foundation to expand lending,
  to protect depositors and 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.  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
September 30, 2002:
Amount
(in thousands)
Percent
of Adjusted
Assets
Tier
  I Capital
$397,060
12.8%
Risk-Based
  Requirement
123,976
4.0
Total
  Capital
431,854
13.9
Risk-Based
  Requirement
247,952
8.0
Minimum
  Leverage Capital
397,060
8.8
Minimum
  Leverage Requirement
136,094
3.0
For an institution to qualify as well capitalized under regulatory guidelines,
  Tier 1, Total and Leverage Capital ratios must be at least 6.0%, 10.0% and 5.0%,
  respectively.  At September 30, 2002, the Corporation's banking 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.
31
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.
32
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 Form of Separation Agreement and General
Release
  of Robert F. Koslow
Exhibit
  10.2 Form of Separation Agreement and General
Release of David S. Dahlmann
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
None
33
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: NOVEMBER 8, 2002     /S/Joseph E. O'Dell
____________________________________
Joseph E. O'Dell, President and
Chief Executive Officer
DATED: NOVEMBER 8, 2002     /S/John J. Dolan
_____________________________________
John J. Dolan, Executive Vice
President and Chief Financial Officer
34
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
35
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.
November 8, 2002
/S/Joseph E. O'Dell
Date               
                Signature
President and Chief Executive Officer
Title
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CHIEF FINANCIAL OFFICER CERTIFICATION
I, John 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
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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.
November 8, 2002
/S/John J. Dolan
Date                 
     Signature
Executive
  Vice President and
Chief Financial Officer
Title
38