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<title>FORM 10-Q</title>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>(X)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>QUARTERLY
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the quarterly period ended June 30, 2004</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  OR<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>(&nbsp;)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
  </td>
 </tr>
</table>

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

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

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

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

<p align=center><font size=3
face=Courier><br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;724-349-7220&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
(Registrant's telephone number, including area code)<br>
<br>
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u><br>
(Former name, former address and former fiscal year, <br>
if changed since last report)</font></p>

<p><font size=3 face=Courier><br>
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act) Yes. <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
July 31, 2004, was 69,449,688.</font></p>

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


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><u><font size=3
  face=Courier>ITEM 1.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>FINANCIAL STATEMENTS</font></p>
  </td>
  <td width=55 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>PAGE</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>Included in Part I of this report:</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>First Commonwealth Financial Corporation and</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Subsidiaries Consolidated Balance Sheets.................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Income......................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>4</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Changes in</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' Equity.................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>5</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Cash Flows..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>7</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Notes to Consolidated Financial
  Statements................ </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>8</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 2.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>
  &nbsp;&nbsp;&nbsp;&nbsp;CONDITION AND RESULTS OF OPERATIONS..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  16</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>QUANTITATIVE AND QUALITATIVE DISCLOSURES <br>
  &nbsp;&nbsp;&nbsp;&nbsp;ABOUT MARKET RISK....................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  37</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 4.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>CONTROLS AND PROCEDURES..................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>37</font></p>
  </td>
 </tr>
</table>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>Other Information...................................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>&nbsp;</font></p>
  <p align=right><font
  size=3 face=Courier>39</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>Signatures............................................................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>41</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>Exhibits and Reports on Form 8K</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES<br>
CONSOLIDATED BALANCE SHEETS (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>June
  30,<br>
  <u>2004</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>December
  31,<br>
  <u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>ASSETS</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and due
  from banks on demand....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>80,949&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>82,510&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest-bearing
  bank deposits.......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>7,238&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,362&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities
  available for sale, at market................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,251,957&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,969,176&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities held
  to maturity, at cost, (Market value $87,848 in<br>
  &nbsp;&nbsp;&nbsp;&nbsp;2004 and $109,609 in 2003)............................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>84,706&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  104,254&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Loans................................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,468,485&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,825,337&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unearned
  income....................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(333)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(455)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Allowance
  for credit losses........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(42,664)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(37,385)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  loans......................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>3,425,488&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,787,497&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Premises and
  equipment.................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>53,588&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>46,538&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other real
  estate owned................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,421&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,866&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Goodwill................................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>130,419&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>29,854&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Amortizing
  intangibles, net............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,644&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,256&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other assets............................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;205,574&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;158,882&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  assets........................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>6,260,984&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>5,189,195&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>LIABILITIES</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Deposits (all
  domestic):</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>478,749&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>408,647&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing...................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>3,415,325&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,879,628&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  deposits...................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,894,074&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,288,275&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Short-term
  borrowings................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>727,698&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>634,127&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other
  liabilities....................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,363&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,875&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Subordinated
  debentures................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>108,250&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>75,304&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other long-term
  debt.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;966,426&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;718,668&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  long-term debt................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>1,074,676&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;793,972&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,736,811&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,758,249&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>SHAREHOLDERS' EQUITY</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Preferred
  stock, $1 par value per share, 3,000,000 shares<br>
  &nbsp;&nbsp;&nbsp;&nbsp;authorized, none issued............................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Common stock $1
  par value per share, 100,000,000 shares authorized,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;71,978,568 and 63,704,445 shares issued at June 30,
  2004 and <br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2003 respectively; 69,446,220 and
  60,712,020 shares <br>
  &nbsp;&nbsp;&nbsp;&nbsp;outstanding at&nbsp;June 30, 2004 and December 31,
  2003 respectively.............................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>71,978&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  63,704&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Additional
  paid-in capital.............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>175,462&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>79,581&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Retained
  earnings....................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>316,253&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>312,261&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Accumulated
  other comprehensive income (loss)........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(5,973)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,173&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Treasury stock
  (2,532,348 shares at June 30, 2004 and 2,992,425 at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2003, at cost)........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(31,982)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  (37,779)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Unearned ESOP
  shares.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(1,565)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(1,994)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  shareholders' equity.......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;524,173&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;430,946&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities and shareholders' equity.......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>6,260,984</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>5,189,195&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES<br>
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=4 valign=bottom>
  <p align=center><font
  size=1 face=Courier>For
  the Quarter <br>
  <u>Ended June 30,</u></font></p>
  </td>
  <td width=219 colspan=4 valign=bottom>
  <p align=center><font
  size=1 face=Courier>For
  the 6 Months<br>
  <u>Ended June 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=105 colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td width=105 colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=109 colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td width=110 colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Income</font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  and fees on loans</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>44,080&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,523&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>85,465&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>83,552&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  and dividends on investments:</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Taxable
  interest ....... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,305&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,449&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>35,834&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>33,605&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest
  exempt from Federal<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income taxes........... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,728&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,687&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,373&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,210&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Dividends............... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>377&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>523&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>781&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,125&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on Federal funds sold........................ </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on bank deposits. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>65,498&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>61,186&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>127,470&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>123,503&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Expense</font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on deposits...... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>13,951&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,961&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>27,461&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>31,758&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on short-term borrowings.................. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,890&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,598&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,625&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,150&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on company obligated mandatorily<br>
  &nbsp;&nbsp;&nbsp;&nbsp;redeemable capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust........ </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  831&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  1,662&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on subordinated debentures.................. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,789&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,081&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on other long-term debt................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,433&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,355&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;18,061&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;14,646&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest on long-term debt................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;11,222&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,186&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;21,142&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;16,308&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;27,063&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;25,745&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;52,228&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;51,216&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Net Interest Income..... </font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>38,435&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; &nbsp;35,441&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>75,242&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>72,287&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Provision
  for credit losses...................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,520&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,465&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,620&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,925&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1 face=Courier>Net interest income after
  provision for <br>
  &nbsp;&nbsp;credit losses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>35,915&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;31,976&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>70,622&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;65,362&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Other Income</font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Securities
  gains.......... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>145&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,221&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,995&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,455&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Trust
  income.............. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,442&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,284&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,710&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,469&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Service
  charges on deposit <br>
  &nbsp;&nbsp;&nbsp;&nbsp;accounts................ </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,760&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,255&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,960&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,104&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Insurance
  commissions..... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>865&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>848&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,669&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,645&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Income
  from bank owned life<br>
  &nbsp;&nbsp;&nbsp;&nbsp;insurance............... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,251&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,052&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,514&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,098&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Merchant
  discount income.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>907&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>895&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,735&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,707&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Card
  related interchange income...................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>890&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>695&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,510&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,299&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  income.............. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,837&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,948&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,587&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,492&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other income...... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;11,097&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,198&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;24,680&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;24,269&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Other Expenses</font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Salaries
  and employee benefits.................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>17,141&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,146&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>33,844&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,481&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  occupancy expense..... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,165&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,771&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,354&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,745&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Furniture
  and equipment expense..................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,705&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,544&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,226&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,096&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Data
  processing expense... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>913&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>621&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,726&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,148&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Pennsylvania
  shares tax expense..................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,140&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,081&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,274&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,141&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Intangible
  amortization... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>238&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>6&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>312&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>13&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Litigation
  settlement (recovery).................. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>(610)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp; Merger and integration charges..................... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>873&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,164&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  operating expenses.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,369&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,213&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;15,361&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;14,140&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other expenses.... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;33,544&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;28,382&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;65,261&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;56,154&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Income before income taxes................... </font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>13,468&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,792&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,041&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>33,477&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Applicable
  income taxes... </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,908&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,365&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,158&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,746&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Net Income.............. </font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;11,560&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,427&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;24,883&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;26,731&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Average
  Shares Outstanding.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,455,920&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,769,160&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,614,372&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,736,392&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Average
  Shares Outstanding Assuming Dilution</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,947,209&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,101,475&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>63,118,440&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,018,324&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Per Share Data:</font></b></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Basic
  earnings per share.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.18&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.40&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.46&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Diluted
  earnings per share</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.18&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.39&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.45&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Cash
  dividends per share.. </font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.160&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.155&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.320&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.310&nbsp;</font></p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  Unearned<br>
  ESOP<br>
  <u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2002................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(44,981)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,055)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>401,390&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  3,772&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  3,772&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  (3,522)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;(3,522)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>250&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,981&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,301)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,301)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(190)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;1,380&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;1,190&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at June 30, 2003....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>62,525&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>64,361&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>304,595&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>26,101&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(43,601)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(2,519)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>411,462&nbsp;</font></u></p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p>&nbsp;</p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Unearned<br>
  ESOP<br>
  <u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2003................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>63,704&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>79,581&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>312,261&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,173&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(37,779)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,994)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>430,946&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>24,883&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>24,883&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,414)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,414)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;(2,580)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,580)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains (losses) on <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;derivatives used in cash flow hedging<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;relationship arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(152)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(152)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income (loss)................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(21,146)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(21,146)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>24,883&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(21,146)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,737&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(20,891)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(20,891)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>429&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>429&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(393)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(393)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock acquired</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(514)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(514)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(973)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,311&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,338&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Tax
  benefit of stock options................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>291&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>291&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Stock
  issued for acquisition............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;8,274&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;96,956</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>105,230&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at June 30, 2004....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>71,978&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>175,462</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>316,253</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(5,973)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(31,982)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(1,565)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>524,173&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td colspan=3 valign=bottom>
  <p align=center><font
  size=1 face=Courier>For
  the 6 Months<br>
  <u>Ended June 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Operating Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net income................................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>24,883&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Adjustments to
  reconcile net income to net cash provided by operating<br>
  &nbsp;&nbsp;&nbsp;&nbsp;activities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Provision
  for credit losses&nbsp;............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,620&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  and amortization............................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,006&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,632&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  losses (gains) on sales of assets.................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,961)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(5,543)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Income
  from increase in cash surrender value of bank owned life insurance</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,514)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,098)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Stock
  option tax benefit................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>291&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Changes,
  net of acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest receivable.......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,205&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>730&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Increase
  (decrease) in interest payable.................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>623&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(922)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Increase
  (decrease) in income taxes payable.............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,367)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>841&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  decrease (increase) in loans held for sale........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(210)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>97&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Change
  in deferred taxes................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(294)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,325)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Other-net................................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(7,647)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(2,124)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by operating activities....... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>17,635&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,944&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Investing Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Changes, net of
  acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities held to maturity:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales...................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>19,565&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>70,117&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities available for sale:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales...................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>98,507&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>49,913&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>470,560&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>510,136&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases................................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(592,462)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(907,343)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sales of other assets........................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,414&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,102&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Acquisition of
  affiliate, net of cash received............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(70,639)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net decrease in
  time deposits with banks................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>38&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>736&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  loans...................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(122,168)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(24,016)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Purchases of
  premises and equipment........................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(3,837)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(2,693)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by investing activities....... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(195,022)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(298,048)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Financing Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Changes, net of
  acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  other long-term debt......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,952)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(10,991)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from issuance
  of other long-term debt............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>50,000&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  subordinated debentures...................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,292)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of subordinated debentures.......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,238&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Discount on
  dividend reinvestment plan purchases........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(393)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Dividends paid............................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(19,493)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,284)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase
  (decrease) in Federal funds purchased......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>60,900&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(9,800)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase
  (decrease) in other short-term borrowings..... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(20,925)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>134,944&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  deposits................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>76,608&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>175,685&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sale of treasury stock....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;5,135&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;988&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by financing activities....... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>175,826&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;282,208&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  increase (decrease) in cash and cash equivalents... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,561)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,104&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at January 1..................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;82,510&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;81,114&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at June 30....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;80,949&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;91,218&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 1 Management Representation</u><br>
<br>
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries (&quot;the
Corporation&quot;).&nbsp; All significant
intercompany transactions and balances have been eliminated.&nbsp; The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.&nbsp; The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.&nbsp; Actual realized amounts could
differ from those estimates.&nbsp; In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of June 30, 2004 and
the results of operations for the three month and six month periods ended June
30, 2004 and 2003, and statements of cash flows and changes in shareholders'
equity for the six month periods ended June 30, 2004 and 2003.&nbsp; The results of operations for the three
month and six month periods ended June 30, 2004 and 2003 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 2003 Annual
Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.&nbsp; The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.<br>
<br>
<u>NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Cash
  paid during the first six months of the year for:</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Interest</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>51,604&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>52,138&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Income
  Taxes</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>8,528&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,230&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;ESOP
  loan reductions</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>429&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  transferred to other real estate owned and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;repossessed assets</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>2,215&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  2,210&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=502 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase (decease) in market value<br>
  &nbsp;&nbsp;&nbsp;&nbsp;adjustment to securities available for sale</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>(32,298)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  385&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=502 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase in market value adjustment of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;derivatives instruments</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>(234)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=502 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Treasury
  stock reissued for business combination</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=3
  face=Courier>203&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>203&nbsp;</font></p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=252 colspan=6 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2004</font></u></p>
  </td>
  <td width=251 colspan=6 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<u><br>
  Benefit</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=83 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Unrealized holding gains<br>
  &nbsp;&nbsp;(losses) arising during<br>
  &nbsp;&nbsp;the period</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(28,329)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>9,915</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(18,414)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>5,803&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(2,031)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><font size=1
  face=Courier>3,772&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Less: reclassification<br>
  &nbsp;&nbsp;adjustment for gains <br>
  &nbsp;&nbsp;realized&nbsp;in net income</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br><br></font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(3,969)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>1,389</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(2,580)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (5,418)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;1,896&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (3,522)</font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier><br>
  Unrealized losses on<br>
  derivatives used in cash flow<br>
  hedging relationships: </font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Unrealized holding losses <br>
  &nbsp;&nbsp;arising during the period</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;(234)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;82</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;(152)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Net unrealized gains (losses)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(32,532)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>11,386</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(21,146)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;385&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(135)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Other comprehensive income (loss)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(32,532)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>11,386</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(21,146)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;385&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(135)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<u>NOTE 4 Accounting for Stock Options Granted</u><br>
<br>
Current accounting guidelines permit two alternative methods of accounting for
stock-based compensation, the intrinsic value method of APB Opinion No 25
&quot;Accounting for Stock Issued to Employees: (&quot;APB 25&quot;) and the
fair value method of FASB Statement No. 123 &quot;Accounting for Stock-Based Compensation&quot;
(&quot;FASB No. 123&quot;).&nbsp; In December
2002, the Financial Accounting Standards Board (&quot;FASB&quot;) issued
Statement No. 148, &quot;Accounting for Stock-Based Compensation-Transition and
Disclosure&quot; (&quot;FAS No. 148&quot;).&nbsp;
FAS No. 148 did not amend FAS No. 123 to require companies to account
for employee stock options using the fair value method but required all
companies with stock-based compensation to provide additional disclosures,
regardless of whether they account for that compensation using the fair value
method of FAS No. 123 or the intrinsic value method of APB No. 25.<br>
<br>
As permitted under FAS No. 123, the Corporation has elected to use intrinsic
value method to measure stock based compensation under APB 25 and to disclose
in a footnote to the financial statements, net income and earnings per share on
a pro forma basis as if the fair value methodology of FAS No. 123 had been
implemented.&nbsp; No stock-based employee
compensation expense is reflected in the Corporation's net income as reported
in the Consolidated Statements of Income because all stock options granted
under the Corporation's plan had an exercise price equal to the market value of
the underlying common stock on the date of the grant.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
9</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

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



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



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>(Dollar amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=2
  face=Courier>Three
  months ended<br>
  June 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Net Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>11,560&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>13,427&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Deduct: Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier><br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(338)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Pro forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>11,560&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>13,089&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Earnings per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>64,455,920</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>58,769,160</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding assuming dilution</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>64,947,209</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>59,101,475</font></p>
  </td>
 </tr>
</table>



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



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



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>(Dollar amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=2
  face=Courier>Six
  months ended<br>
  June 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Net Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>24,883&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>26,731&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Deduct: Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier><br>
  <br>
  &nbsp;&nbsp;&nbsp;(38)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(676)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Pro forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>24,845&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>26,055&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Earnings per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.40&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.46&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.40&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.44&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.39&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.45&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.39&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.44&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>62,614,372</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>58,736,392</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding assuming dilution</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>63,118,440</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>59,018,324</font></p>
  </td>
 </tr>
</table>

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

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>Note 5 Restructuring Charges</u> <br>
<br>
The Corporation incurred restructuring charges of $6,140 thousand during 2002
in accordance with EITF 94-3.&nbsp; These
restructuring charges resulted from the merger of the charters of the
Corporation's two commercial banks (First Commonwealth Bank and Southwest Bank)
and the adoption of a new common brand and identity for all financial services
subsidiaries.&nbsp; The largest component of
these charges was $4,652 thousand of employee separation costs consisting of
severance packages for 95 employees from various affiliates of the Corporation
including all levels of staff from the executive management level to back
office support staff. These amounts were included as restructuring charges, a
component of Other Expenses on the Consolidated Statements of Income during
2002.<br>
<br>
During 2003 and 2002 actual termination benefits paid and charged against the
total severance liability were $2,823 thousand and $1,263 thousand,
respectively, leaving a remaining unpaid liability for severance costs of $566
thousand at December 31, 2003.&nbsp; During
the first half of 2004, monthly severance payments totaling $467 thousand were made,
reducing the outstanding severance liability to $99 thousand at June 30,
2004.&nbsp; No additional severance accruals
or adjustments relating to the 2002 restructuring charges were recorded during
the first half of 2004. <br>
<br>
<u>NOTE 6 Merger and Integration Charges<br>
<br>
</u>In the first six months of 2004, the Corporation recorded merger and
integration charges totaling $2,164 thousand ($1,406 thousand, net of
taxes).&nbsp; The merger and integration
charges related to the acquisition of Pittsburgh Financial Corp. (&quot;PFC&quot;).
The charges included $485 thousand related to the write-off of the unamortized
capitalized costs for the subordinated debentures that were previously issued
by PFC to Pittsburgh Home Capital Trust I and were called and paid off in
January of 2004.&nbsp; Also included in the
merger and integration charges were $1,679 thousand in salary and benefit
severance expenses that were accrued during the first six months of 2004.&nbsp; The severance costs were for 25 employees
whose positions were eliminated as part of the acquisition.<br>
<br>
<u>NOTE 7 New Accounting Pronouncements</u> <br>
<br>
In January 2003, the FASB issued FASB Interpretation No. 46 (&quot;FIN
46&quot;), &quot;Consolidation of Variable Interest Entities,&quot; and in
December 2003, issued FIN 46 (Revised 2003) (&quot;FIN 46R&quot;).&nbsp; FIN 46R clarified some of the provisions of
FIN 46 and exempted certain entities from the original requirements of FIN
46.&nbsp; As defined by FIN 46 a variable
interest entity (&quot;VIE&quot;) is a corporation, partnership, trust or any
other legal structure used for business purposes that either (a) does not have
equity investors with voting rights or (b) has equity investors that do not
provide sufficient financial resources for the entity to support its
activities.&nbsp; Under FIN 46R, an entity
that holds a variable interest in a VIE is required to consolidate the VIE if
the entity is subject to a majority of the risk of loss from the VIE's
activities, is entitled to receive a majority of the entity's residual returns
or both.&nbsp; FIN 46R was implemented for
the quarter ended March 31, 2004.<br>
<br>
11</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 7 New Accounting Pronouncements</u> (continued)<u><br>
<br>
</u>As part of its community reinvestment initiatives, the Corporation invests
in qualified affordable housing projects as a limited partner.&nbsp; The Corporation receives federal affordable
housing tax credits and rehabilitation tax credits for these limited
partnership investments.&nbsp; The
Corporation's maximum potential exposure to these partnerships is $5,257 thousand,
consisting of the limited partnership investments as of June 30, 2004.&nbsp; The Corporation has determined that these
investments will not be consolidated but continue to be accounted for under the
equity method whereby the Corporation's portion of partnership losses are
recognized as incurred.&nbsp; The adoption of
FIN 46 or FIN 46R has not had a material impact on the Corporation's financial
condition or results of operation.<br>
<br>
In March 2004, the Securities and Exchange Commission (&quot;SEC&quot;) issued
Staff Accounting Bulletin No. 105 (&quot;SAB 105&quot;), &quot;Application of
Accounting Principles to Loan Commitments.&quot;&nbsp; SAB 105 was issued to inform the SEC's registrants of the SEC
Staff's view that the fair value of the recorded loan commitments that are
required to follow derivative accounting under FASB Statement No. 133
(&quot;FAS No. 133&quot;), &quot;Accounting for Derivative Instruments and
Hedging Activities,&quot; should not consider the expected future cash flows
related to the associated servicing of the future loan.&nbsp; The SEC staff believes that incorporating
expected future cash flows related to the associated servicing of the loan
essentially results in the immediate recognition of a servicing asset, which is
only appropriate once the servicing asset has been contractually separated from
the underlying loan by sale or by securitization of the loan with servicing
retained.&nbsp; The provisions of SAB 105
were to be applied to loan commitments accounted for as derivatives that were
entered into after March 31, 2004; and therefore, was implemented during the
second quarter of 2004.&nbsp; The adoption of
SAB 105 has not and is not expected to have a material impact on the
Corporation's financial condition or results of operations.<br>
<br>
In May 2004, the FASB issued FASB Staff Position No. FAS 106-2 (&quot;FSP FAS
106-2&quot;), &quot;Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003.&quot;&nbsp; FSP FAS 106-2 supersedes
the FASB Staff Position No. FAS 106-1, which has the same title as FSP FAS
106-2.&nbsp; FSP FAS 106-2 provides guidance
on the accounting for the effects of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003 (&quot;the Act&quot;) for employers
that sponsor postretirement health care plans that provide prescription drug
benefits.&nbsp; FSP FAS 106-2 also requires
employers to provide certain disclosures regarding the effect of the federal
subsidy provided by the Act.&nbsp; This FSP
is effective for the first interim or annual period beginning after June 15,
2004.&nbsp; The disclosure requirements of
FSP FAS 106-2 can be found in NOTE 9 (Post Retirement Benefit Plan of Acquired
Company) of this report.<br>
<br>
<br>
<br>
<br>
<br>
<br>
12</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 8 Guarantees<br>
</u><br>
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.&nbsp; The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.&nbsp; In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.&nbsp; The table
below identifies the notional amounts of these guarantees at June 30, 2004:&nbsp; (Dollar amounts in thousands)<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Financial
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>25,214</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Performance
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>5,615</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
The current notional amounts outstanding above include financial standby
letters of credit of $4,537 thousand and performance standby letters of credit
of $2,012 thousand issued during the first half of 2004.&nbsp; There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.<br>
<br>
<u>NOTE 9 Post Retirement Benefit Plan of Acquired Company<br>
</u><br>
In December 2003, the FASB issued Statement No. 132(R) &quot;Employers'
Disclosures about Pensions and Other Postretirement Benefits&quot; (&quot;FAS
No. 132 (R)&quot;).&nbsp; In addition to
annual disclosures that have already been implemented, the statement requires
interim reporting of the components of the net periodic benefit cost
recognized, which are included in this footnote.&nbsp; Disclosure requirements for future benefit payments are effective
for fiscal years ending after June 15, 2004.<br>
<br>
Employees of Southwest Bank, an acquired company, were covered by a post retirement
benefit plan.&nbsp; The net periodic benefit
cost of this plan for the quarter ended June 30 was as follows (Dollar amounts
in thousands):<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier><br><br></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Service
  cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest
  cost on projected benefit
  obligation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>70&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>84&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Amortization
  of transition obligation</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loss
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;21</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;30&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  periodic benefit cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;91&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>114&nbsp;</font></u></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>The
net periodic benefit cost of this plan for the six months ended June 30 was as
follows (Dollar amounts in thousands):<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Service
  cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest
  cost on projected benefit
  obligation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>141&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>169&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Amortization
  of transition obligation</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loss
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;42</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;60</font></u>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  periodic benefit cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>184</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>230</font></u>&nbsp;</p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 9 Post Retirement Benefit Plan of Acquired Company</u> (continued)<u><br>
</u><br>
This is an unfunded post retirement plan.&nbsp;
Future payments will only consist of benefit payments for life and
health insurance premiums for plan participants.<br>
<br>
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the
&quot;Act&quot;) introduces a prescription drug benefit under Medicare Part D.
The Act also introduces a federal subsidy to sponsors of retiree health care
benefit plans that provide a prescription drug benefit that is at least
actuarially equivalent to Medicare Part D.&nbsp;
As of the filing date of this quarterly report on Form 10-Q, the
Corporation has not been able to determine whether the prescription drug
benefits provided by the Corporation's postretirement plan are actuarially
equivalent to Medicare Part D.&nbsp; As a
result, the preceding measures of the net periodic postretirement benefit cost
do not reflect any amounts associated with the federal subsidy.&nbsp; The impact of the Act, once determined,
could affect reported calculations.&nbsp; <br>
<br>
<u>NOTE 10 Business Combination</u><br>
<br>
Effective May 24, 2004, the Corporation acquired 100% of the outstanding shares
of GA Financial, Inc. (&quot;GAF&quot;), a savings and loan holding company,
which was headquartered in Whitehall, Pennsylvania.&nbsp; GAF was the parent company of Great American Federal.&nbsp; As a result of the acquisition, GAF merged
into First Commonwealth Financial Corporation and Great American Federal merged
into First Commonwealth Bank.&nbsp; <br>
<br>
The acquisition of GAF is another significant step for the Corporation to
implement its strategy for expansion into the Pittsburgh, Pennsylvania
market.&nbsp; The acquisition of Great
American Federal adds an additional customer base, which presents the
opportunity for First Commonwealth Bank to offer insurance, trust and financial
planning services to a larger base of customers.<br>
<br>
Shareholders of GAF elected to receive $35.00 in cash or an equivalent of First
Commonwealth common stock for each GAF share owned.&nbsp; The aggregate purchase price of the transaction was $176.6
million, which included cash in the amount of $71.4 million and common stock
valued at $105.2 million.&nbsp; The value of
the 8,274,123 issued shares of First Commonwealth common stock was based on the
average market price of First Commonwealth's common stock over the ten-day
period ending three trading days prior to consummation of the acquisition.&nbsp; As of June 30, 2004, the Corporation had a
remaining liability for the cash settlement of the transaction in the amount of
$2.4 thousand.&nbsp; <br>
<br>
The merger was accounted for as a purchase transaction whereby the identifiable
tangible and intangible assets and liabilities of GAF have been recorded at
their fair values as of the acquisition date.&nbsp;
Purchase accounting valuation adjustments, which represent the
difference between the carrying value and the fair value of identifiable
tangible and intangible assets and liabilities, were recorded in the Consolidated
Balance Sheet as of June 30, 2004.&nbsp;
Preliminary goodwill in the amount of $99.5 million was recorded as a
result of the transaction.&nbsp; <br>
<br>
14</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 10 Business Combination</u> (continued)<br>
<br>
As prescribed under the purchase method of accounting, the results of GAF's
operations have been included in the consolidated financial statements since
the acquisition date.&nbsp; <br>
<br>
The customer deposit base of $15.7 million was the only amortizing intangible
that was recorded with the transaction.&nbsp;
Amortization expense in the amount of $1.1 million will be recorded in
the Consolidated Income Statement throughout 2004.&nbsp; The weighted-average useful life of the customer deposit base
intangible is 8 years.&nbsp; The goodwill
that was recorded with the transaction is not deductible for tax purposes.<br>
<br>
<u>NOTE 11 Subsequent Event</u><br>
<br>
At its regularly scheduled meeting in July, the Board of Directors of the Corporation's
banking subsidiary, First Commonwealth Bank, authorized the company to
restructure certain Federal Home Loan Bank advances (which we will refer to as
FHLB advances) during the third quarter of 2004.&nbsp; Recent acquisitions increased the Corporation's FHLB advances to
$918 million, of which $516 million is scheduled to mature in 2008.&nbsp; On July 23, 2004, First Commonwealth prepaid
approximately $440 million of its FHLB advances primarily with maturities in 2008
and a weighted average rate of 5.43%.&nbsp; <br>
<br>
The Corporation incurred penalties in connection with the prepayment of the
FHLB advances, which resulted in a one-time charge of approximately $29.5
million ($19.2 million after tax) or approximately $0.28 per share in the third
quarter of 2004.&nbsp; The FHLB advances were
replaced with other borrowings having maturities ranging from overnight to 2010
and having an average interest rate of 2.5% based on current rates.<br>
<br>
The transaction is intended to expand the maturity distribution of the
Corporation's FHLB advances to minimize the impact on any one year.&nbsp; The Corporation expects that the transaction
will result in an increase in net interest income over the remaining term of
the original advances in excess of the amount of the prepayment penalties,
which should result in an increase in earnings per share in future
periods.&nbsp; While the transaction is
projected to produce significantly higher levels of net interest income in
future periods, the bank's interest rate risk profile will move to a slightly
liability sensitive position.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
15</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u><br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the &quot;Corporation&quot;).&nbsp;
In addition to historical information, this discussion and analysis, as
well as the notes to the consolidated financial statements, contain
forward-looking statements (as defined in the Private Securities Litigation
Reform Act of 1995), which reflect management's beliefs and expectations based
on information currently available and may contain the words
&quot;expect,&quot; &quot;estimate,&quot; &quot;project,&quot;
&quot;anticipate,&quot; &quot;should,&quot; &quot;intend,&quot;
&quot;probability,&quot; &quot;risk,&quot; &quot;target&quot; and similar
expressions.&nbsp; These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:&nbsp; changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.&nbsp; Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.&nbsp; Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof.&nbsp; The Corporation undertakes no obligation to publicly revise or
update these forward-looking statements to reflect events or circumstances that
arise after the date hereof.<br>
<br>
Net income for the first six months of 2004 was $24.9 million reflecting a
decrease of $1.8 million compared to 2003 results of $26.7 million.&nbsp; Security gains in the 2004 period were less
than that of the 2003 period.&nbsp; The 2004
period included merger and integration costs that were not present in the 2003
period.&nbsp; In addition, the 2004 period
incorporated the results of GAF since May 24, 2004, as well as the results of
PFC for the entire reporting period.&nbsp;
Basic and diluted earnings per share were $0.40 and $0.39, respectively,
for the first six months of 2004 compared to $0.46 and $0.45, respectively, for
the same period of 2003.<br>
<br>
Return on average assets was 0.92% and return on average equity was 10.90% for
the first six months of 2004 compared to 1.17% and 13.07%, respectively, for
the first six months of 2003.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
16</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003 </b>(continued)<br>
<br>
The following is an analysis of the impact of changes in net income on diluted
earnings per share:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share, prior year</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.45&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Increase
  (decrease) from changes in:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Provision
  for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.04&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Security
  transactions</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Service
  charges on deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.01&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Salaries
  and employee benefits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.02)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Net
  occupancy expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Data
  processing expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Litigation
  settlement (recovery)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Merger
  and integration charges</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Applicable
  income taxes</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;0.03&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;0.39&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<i><u>Net Interest Income</u></i><br>
<br>
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.&nbsp; Net interest income
increased by $3.0 million for the first half of 2004 over the related period of
2003, as interest-earning assets increased.&nbsp;
This increase was partially offset by a decline in net interest margin
of 34 basis points (0.34%), primarily as the interest-earning asset yield
declined faster than funding costs.&nbsp; The
reduction of short-term interest rates tends to reduce rates on loan categories
and time deposits, but non-maturity deposits (such as savings and NOW accounts)
are already at very low levels and therefore decline very little.&nbsp; <br>
<br>
Net interest margin (net interest income, on a tax-equivalent basis, as a
percentage of average earning assets) was 3.21% for the six months of 2004
compared to 3.63% for the six months of 2003 reflecting a decrease of 42 basis
points (0.42%).&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
17</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=bottom>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004 Change From 2003<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>6&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>27&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(21)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,048&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,563&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(6,515)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>1,913&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,783&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(8,870)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>3,967&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>19,374&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(15,407)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Savings
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>886&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,352&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(466)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(5,183)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1,578)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(3,605)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>475&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,343&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(868)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>4,834&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,737&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(2,903)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>1,012&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;8,854&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(7,842)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>2,955&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,520&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(7,565)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans increased $1.9 million for the first six months of 2004
compared to 2003 due to volume increases.&nbsp;
The volume increases were offset due to loan yields declining in the
lower interest rate environment.&nbsp; The
total yield on loans for the first half of 2004 was 5.95%, compared to loan
yields of 6.60% for the first half of 2003.&nbsp;
Average total loans for the first six months of 2004 rose $339.5 million
compared to averages for the first six months of 2003 as increases were noted
in all loan categories with the exception of leases, since the Corporation has
discontinued its leasing activities.&nbsp;
The largest increases were recorded in the commercial and installment
loan categories.&nbsp; The averages include
the addition of PFC for the full period of 2004 and GAF since May 24,
2004.&nbsp; The Corporation has continued to
capitalize on lending opportunities with small to mid-sized commercial
borrowers, including loans generated through its preferred Small Business
Administration (&quot;SBA&quot;) lender status.&nbsp; The Corporation has consistently been one of the top small business
lenders in Pennsylvania.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
18</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
Interest income on investment securities increased $2.0 million for the first
half of 2004 compared to the first half of 2003.&nbsp; Increases due to volume of $8.7 million were almost eliminated by
decreases due to the decline in interest rates.&nbsp; Average investments for the first half of 2004 included increases
due to PFC for the full period and increases due to GAF from May 24, 2004.&nbsp; The most significant increases were in U.S.
government securities.&nbsp; Total yield on
investments was 4.27% for the first six months of 2004 compared to 5.02% for
the same period of 2003, a decline of 75 basis points (0.75%).&nbsp; Declines in interest income due to rate for
U.S. government agency securities were $5.0 million as yields on these
securities decreased 65 basis points (0.65%) for the 2004 period compared to
the corresponding period of 2003.&nbsp; <br>
<br>
Interest expense on total deposits dropped $4.3 million for the 2004 period
compared to 2003 primarily due to decreases in interest rates.&nbsp; Deposit costs were 1.62% for the first six
months of 2004 compared to 2.05% for the first six months of 2003.&nbsp; The rate on savings deposits fell 5 basis
points (0.05%) resulting in a decrease to interest expense of $465.7 thousand
for the first six months of 2004 compared to the first six months of 2003,
while the rate on time deposits for 2004 also declined, down 46 basis points
(0.46%) compared to 2003 levels, resulting in a decrease to interest expense of
$3.6 million for the first six months of 2004.&nbsp;
The Corporation's deposit mix continues to change as clients registered
a preference for savings deposits rather than time deposits during continuing
economic uncertainties.&nbsp; Average savings
deposits increased $331.9 million for 2004 compared to 2003 averages while
average time deposits dropped $111.1 million over the same time frames.&nbsp; Average deposits included increases in all
categories due to PFC for the full period and GAF from May 24, 2004.&nbsp; During its management of deposit levels and
mix, the Corporation continues to evaluate the cost of time deposits compared
to alternative funding sources as it balances its goals of providing clients
with the competitive rates they are looking for while also minimizing the
Corporation's cost of funds.&nbsp; <br>
<br>
Interest expense on short-term borrowings increased $475 thousand for the first
six months of 2004 compared to the same period of 2003 as decreases in interest
expense due to rate of $868 thousand were offset by increases in interest
expense due to volume of $1.3 million.&nbsp;
The cost of short-term borrowings for the 2004 period decreased by 27
basis points (0.27%) compared to 2003 costs of 1.37%.&nbsp; The average balance of short-term borrowings for the first six
months of 2004 increased by $195.2 million compared to the averages for the
prior year.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
19</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
Interest expense on long-term debt increased $4.8 million for the first six
months of 2004 compared to the corresponding period of 2003, primarily as a
result of volume increases.&nbsp; Average
long-term debt for the six months of 2004 increased by $274.7 million compared
to 2003 averages.&nbsp; Average long-term
debt included increases due to PFC for the full period and GAF from May 24,
2004.&nbsp; In addition, approximately $53
million of the average increase was due to additional debt in the form of
subordinated debentures that were acquired in December 2003 and March 2004,
with face amounts of $30.9 million and $41.2 million, respectively.&nbsp; This debt was issued in anticipation of the
acquisition of GAF.&nbsp; Refer to NOTE 11
for a discussion of the Corporation's plan to reduce interest expense on
long-term debt in future periods.<br>
<br>
<i><u>Provision for Credit Losses<br>
<br></u></i>The provision for credit losses is an amount added to the
allowance against which credit losses are charged.&nbsp; The amount of the provision is determined by management based
upon its assessment of the size and quality of the loan portfolio and the
adequacy of the allowance in relation to the risks inherent within the loan
portfolio.&nbsp; The provision for credit
losses was $4.6 million for the six months of 2004 compared to $6.9 million for
the same period of 2003.&nbsp; The decrease
of $2.3 million was due to improvement in nonperforming loans and net charges
offs.&nbsp; Net charge-offs against the
allowance for credit losses were $4.3 million for the 2004 period compared to
$5.8 million for the corresponding period of 2003.&nbsp; Annualized net charge-offs as a percent of average loans
outstanding were 0.29% as of June 30, 2004 compared to 0.44% as of June 30,
2003.&nbsp; The provision for credit losses
as a percent of net charge-offs was 106.85% at June 30, 2004 and 119.05% at
June 30, 2003.&nbsp; See the &quot;Credit
Review&quot; section for an analysis of the quality of the loan portfolio.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
20<br></font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2004 and 2003:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=right><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>37,385&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>34,496&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Addition
  as result of acquisition</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,983&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,343&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,112&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>378&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>383&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>467&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>652&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,040&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,456&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,685&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;141&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;191&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  loans charged off</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,975&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,873&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>432&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>712&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>10&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>212&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>334&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  recoveries</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;651&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,056&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  charge offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,324&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,817&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,620&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,925&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Balance
  June 30,</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>42,664&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>35,604&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<i><u>Noninterest Income<br>
<br></u></i>Net securities gains were $4.0 million during the first six
months of 2004 compared to $5.5 million for the first six months of 2003.&nbsp; Securities gains during the 2004 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $19.3 million.&nbsp; Securities gains
during the 2003 period resulted primarily from the sale of fixed rate corporate
bonds classified as securities &quot;available for sale&quot; with book values
of $34.5 million and Pennsylvania bank stocks with book values of $6.7
million.&nbsp; The corporate bonds sold
during 2003 had an average remaining life of one year and the proceeds were
reinvested in adjustable rate trust preferred securities with maturities of 30
years and mortgage backed securities with an average life of 3.6 years.&nbsp; <br>
<br>
<br>
<br>
21</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>&nbsp;<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
Trust income for the first six months of 2004 was up $241 thousand over the
same period of 2003.&nbsp; Book values and
market values of managed assets are up slightly from prior year levels.&nbsp; The rebound in market values over prior year
levels should help trust income to trend in a positive direction.&nbsp; The referral programs and integrated growth
plans for financial affiliates have continued to help grow trust revenues.&nbsp; The Corporation's continued success in
building relationships with commercial clients provides fee based affiliates
with additional sales opportunities through the &quot;Total Solutions Financial
Management&quot; (&quot;TSFM&quot;) process.&nbsp;
This strategy combines products, services and professional staff from
the Corporation's trust, insurance, financial advisory and banking affiliates
and partners them in providing comprehensive financial services offerings.<br>
<br>
Service charges on deposits are the Corporation's most significant component of
noninterest income and increased $856 thousand for the first six months of 2004
compared to the corresponding period of 2003.&nbsp;
The increases are largely due to the acquisitions of PFC and GAF.&nbsp; The most significant increase was in
nonsufficient funds fees &quot;NSF&quot; of $887 thousand.&nbsp; Management strives to implement reasonable
fees for services and closely monitors collection of those fees.&nbsp; The increase in NSF fees is due to the
acquisition of PFC and GAF as well as the growth of the High Performance
Checking products for consumer and business clients.&nbsp; In addition, the increase in NSF fees is due in part to better
management of the collection process to ensure that fee waivers are kept to a
minimum.<br>
<br>
Other increases in noninterest income included increases in income from bank
owned life insurance, gain on the sale of other assets and card related
interchange income in the amounts of $416 thousand, $243 thousand and $211
thousand, respectively.&nbsp; The increase in
income from bank owned life insurance was in part due to the acquisition of PFC
and GAF.&nbsp; The gain on the sale of other
assets included a gain of $234 thousand related to the sale of unused
land.&nbsp; The card related interchange
income growth was due in large part to the acquisition of PFC and GAF as well as
additional volume related to card usage.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
22</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
<i><u>Noninterest Expense</u></i><br>
<br>
Salary and employee benefit costs increased $3.4 million or 11.0% for the first
six months of 2004 compared to the same period of 2003.&nbsp; Salary costs accounted for $2.3 million or
10.0% of the increase while benefit costs increased $1.1 million or
14.35%.&nbsp; The increase was due in large
part to an increase in the number of employees from the addition of PFC and
GAF.&nbsp; Full-time equivalent employees
were 1,661 at the end of the second quarter of 2004 compared to 1,447 at the
same time in 2003.&nbsp; The largest increase
in benefit costs was hospitalization costs, which were up $327 thousand or
11.2%.&nbsp; The Corporation continues to
evaluate its current menu of employee benefits to provide a competitive
benefits package while also managing costs.&nbsp;
Current benefit options include coverages fully paid for by the
employer, as well as voluntary benefits whereby employees have the option of
purchasing additional benefits at reduced group rates.&nbsp; <br>
<br>
Net occupancy expense increased $609 thousand for the first six months of 2004
over 2003 levels.&nbsp; Rental expense
accounted for $383 thousand of the increase, primarily due to the addition of
the former BankPittsburgh and Great American Federal offices.&nbsp; Additional increases were also recorded in
depreciation expense on leasehold improvements and building repairs and
maintenance.&nbsp; Most of the maintenance increases
were related to snow removal expenses resulting from the harsh winter.&nbsp; The Corporation continues to actively
evaluate its branch delivery network to optimize client service in existing
branches and to continue expansion into growth markets.&nbsp; The execution of these initiatives may impact
occupancy and other expenses in future periods.<br>
<br>
Data processing expense increased by $578 thousand in the first six months of
2004 compared to the same period of 2003, due in part to the acquisitions of
PFC and GAF.&nbsp; Since PFC was processed
through an outsourced processing vendor, the Corporation incurred these charges
for the first quarter of 2004.&nbsp; With the
exception of one application, all of the systems for PFC were converted by the
end of the first quarter of 2004.&nbsp; In
addition, the data processing expense was unfavorably impacted by a rate
increase related to clients using debit and credit cards over the STAR network.<br>
<br>
The merger and integration expenses included $485 thousand related to the
write-off of the unamortized capitalized costs for the subordinated debentures
that were previously issued by PFC to Pittsburgh Home Capital Trust I and were
called and paid off in January of 2004.&nbsp;
In addition, the merger related expenses included $1.7 million of
severance related salary and benefit expenses that were accrued during the
first six months of 2004 and were due to the integration of PFC into the
Corporation.&nbsp; Future periods could be
impacted by similar costs as the PFC and GAF integrations continue. <br>
<br>
<br>
<br>
<br>
23</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Six Months of 2004 as Compared to the
First Six Months of 2003</b><br>
(continued)<br>
<br>
Other increases in noninterest expense included increase in intangible
amortization expense, telephone and data line expenses, audit and accounting
fees and PA shares tax in the amounts of $299 thousand, $296 thousand, $183
thousand and $133 thousand, respectively.&nbsp;
These increases were due in large part to the acquisitions of PFC and
GAF.&nbsp; Audit and accounting fee increases
also include the addition of fees related to implementation of the
Sarbanes-Oxley Act. <br>&nbsp;<br>
Income tax expense decreased $1.6 million for the first six months of 2004
compared to the first six months of 2003.&nbsp;
The Corporation's effective tax rate was 17.2% for the first six months
of 2004 compared to 20.2% for the corresponding period of 2003.&nbsp; The decrease in the effective tax rate was
due to additional tax-exempt income and tax credits.<br>
<br>
<b>Three Months Ended June 30, 2004 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2003<br></b><br>
Net income was $11.6 million for the second quarter of 2004 a decrease of $1.8
million compared to 2003 results of $13.4 million.&nbsp; Basic and diluted earnings per share were $0.18 for the second
quarter of 2004 compared to $0.23 for the second quarter of 2003.&nbsp; Return on average assets was 0.82% and
return on average equity was 9.76% for the second quarter of 2004 compared to
1.15% and 12.99%, respectively, for the second quarter of 2003.<br>
<br>
<i><u>Net Interest Income</u></i><b><br></b><br>
Net interest income for the second quarter of 2004 of $38.4 million represented
an increase of $3.0 million compared to the second quarter of 2003.&nbsp; The increase in net interest income was due
to an increase in average interest-earning assets of 19.6%.&nbsp; This increase due to volume was partially
offset by a decrease due to interest rates.&nbsp;
Net interest margin (net interest income, on a tax-equivalent basis, as
a percentage of average earning assets) for the 2004 period was 3.15% reflecting
a decrease of 34 basis points (0.34%) from 3.49% reported in 2003 as asset
yields declined more than the cost of funds.&nbsp;
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
24</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended June 30, 2004 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2003 </b>(continued)<br>
<br>
The following table shows the effect of changes in volumes and rates on
interest income and interest expense for the quarter ended June 30:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=bottom>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004 Change From 2003<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>15&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(11)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,751&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,997&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(2,246)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>2,557&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,433&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(4,876)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>4,312&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>11,446&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(7,134)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Savings
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>713&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>780&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(67)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(2,723)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(943)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1,780)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>292&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>694&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(402)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>3,036&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,780&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(1,744)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>1,318&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,311&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(3,993)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>2,994&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,135&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(3,141)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans for the three months ended June 30, 2004, increased $2.6
million compared to the three months ended June 30, 2003, primarily as a result
of volume increases.&nbsp; The averages
include the addition of PFC for the full quarter in 2004 and GAF since May 24,
2004.&nbsp; Average loans for the second
quarter of 2004 increased $468.1 million compared to averages for the second
quarter of 2003.&nbsp; The largest increases
were in commercial loans and mortgages.&nbsp;
The total yield on loans for the second quarter of 2004 was 5.87%
representing a decrease of 64 basis points (0.64%)compared to yields for the
second quarter of 2003.&nbsp;&nbsp;&nbsp; <br>
<br>
Interest income on investments for the three months ended June 30, 2004, was
$21.4 million, reflecting an increase of $1.8 million compared to the three
months ended June 30, 2003.&nbsp; An increase
due to volume of $4.0 million was partially offset by a decrease due to
interest rate.&nbsp; Average investments
increased by $394.9 million for the second quarter of 2004 compared to averages
for the second quarter of 2003.&nbsp; Average
investments for the second quarter of 2004 included increases due to PFC for
the full period and increases due to GAF from May 24, 2004.&nbsp; The most significant increases were in U.S.
government agency securities.&nbsp; Total
yield on investments was 4.23% for the second quarter of 2004 compared to 4.77%
for the second quarter of 2003.&nbsp; <br>
<br>
Interest expense on deposits dropped $2.0 million for the three months ended
June 30, 2004, compared to the three months ended June 30, 2003.&nbsp; The largest part of the decrease was due to
the decline in interest rates as rates fell 41 basis points (0.41%) for the
2004 quarter to 1.59%.&nbsp; <br>
<br>
25</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended June 30, 2004 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2003</b>
(continued)<b><br></b>&nbsp;<br>
The decrease due to rates was primarily due to time deposits as rates for these
products dropped 44 basis (0.44%) for the 2004 period compared to 2003.&nbsp; Average total deposits were $3,537.4 million
for 2004 compared to $3,194.3 million for the corresponding period of
2003.&nbsp; Decreases in average time deposit
balances were offset by increases in average savings deposit balances.&nbsp; Average deposits included increases in all
categories due to PFC for the full period and GAF from May 24, 2004.&nbsp; <br>
<br>
Interest expense on long-term debt for the three months ended June 30, 2004,
increased $3.0 million from $8.2 million reported for the three months ended
June 30, 2003, primarily as a result of volume increases.&nbsp; Average long-term debt was $338.1 million
more in the second quarter of 2004 than averages for the second quarter of
2003.&nbsp; Average long-term debt included
increases due to PFC for the full period and GAF from May 24, 2004.&nbsp; In addition, long-term debt included increases
due to additional debt in the form of subordinated debentures.&nbsp; Subordinated debentures in the amount of
$72.1 million were outstanding for the full quarter of 2004.<br>
<br>
<i><u>Provision for Credit Losses</u></i><br>
<br>
The provision for credit losses was $2.5 million for the three months ended
June 30, 2004, compared to $3.5 million for the three months ended June 30,
2003.&nbsp; The second quarter of 2004
reflected a decrease of $831 thousand in net charge-offs when compared to the
second quarter of 2003.&nbsp; The most
significant decrease in net charge-offs for the second quarter of 2004 compared
to 2003 was in real estate loans secured by 1-4 family property.&nbsp;&nbsp; <br>
<br>
<i><u>Noninterest Income</u></i><br>
<br>
Net securities gains were $145 thousand for the second quarter of 2004 compared
to securities gains of $3.2 million for the second quarter of 2003.&nbsp; Securities gains during both the 2004 and
the 2003 periods resulted primarily from the sale of Pennsylvania bank
stocks.&nbsp; During the second quarter of
2004 Pennsylvania bank stocks with book values of $358.8 thousand were sold,
while bank stocks with book values of $5.6 million were sold during the second
quarter of 2003, generating gains of $79.9 thousand and $3.2 million,
respectively.&nbsp; The 2004 period also
included gains from the sale of tax-free municipal securities.<br>
<br>
Other increases in noninterest income included increase in service charges on
deposits, income from bank owned life insurance, income from card related
interchange fees and trust income in the amounts of $505 thousand, $199
thousand, $195 thousand and $158 thousand, respectively.&nbsp; Increases in noninterest income are in large
part due to the acquisition of PFC and GAF.&nbsp;
The increases in service charges on deposits were most notable in the
NSF fees category.&nbsp; <br>
<br>
<br>
<br>
<br>&nbsp;<br>
26</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended June 30, 2004 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2003</b>
(continued)<b><br>
<br></b><i><u>Noninterest Expense</u></i><br>
<br>
Total noninterest expense for the three months ended June 30, 2004, was $33.5
million reflecting an increase of $5.2 million from the corresponding period of
2003.&nbsp; Employee costs were $17.1 million
for the second quarter of 2004, representing an increase of $2.0 million over
2003 levels.&nbsp; Salary expense was up $1.5
million or 12.6% for the second quarter of 2004 compared to 2003.&nbsp; Employee benefit costs rose $542 thousand or
14.9% for the second quarter of 2004.&nbsp;
The increases were primarily due to the acquisitions of PFC and GAF as
full-time equivalent employees increased to 1,661 at the end of the second
quarter of 2004 compared to 1,447 at the same time in 2003.&nbsp; <br>
<br>
Net occupancy expense increased $394 thousand for the three months ended June
30, 2004 compared to the three months ended June 30, 2003.&nbsp; Rental expense accounted for $197 thousand
of the increase, primarily due to the addition of the former BankPittsburgh and
Great American Federal offices.&nbsp; <br>
<br>
Merger and integration charges were $873 thousand for the second quarter of
2004 and included severance related salary and benefit expenses that were
accrued during the second quarter of 2004 due to the integration of PFC into
the Corporation.&nbsp; Future periods could
be impacted by similar costs as the PFC and GAF integrations continue.&nbsp; <br><br></font></p>

<p><font size=3 face=Courier>Other
noninterest expenses included increases in data processing expense, telephone
and data line expense and intangible amortization of $292 thousand, $239
thousand and $232 thousand, respectively.&nbsp;
The inclusion of PFC and GAF in the Corporation's results was primarily
the cause of increased noninterest expenses.<br>
<br>
Income tax expense decreased $1.5 million for the second quarter of 2004
compared to the second quarter of 2003.&nbsp;
Tax expense for the second quarter of 2004 was positively impacted by an
increase in tax-exempt income and tax credits compared to 2003 levels.&nbsp; The Corporation's effective tax rate was
14.2% for the second quarter of 2004 compared to 20.0% for the corresponding
period of 2003.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
27</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>LIQUIDITY<br>
</u><br>
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.&nbsp; In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans.&nbsp; As an additional secondary source, short-term
liquidity needs may be provided through the use of overnight Federal funds
purchased, borrowings through use of lines available for repurchase agreements,
and borrowings from the Federal Reserve Bank.&nbsp;
Additionally, the Corporation's banking subsidiary is a member of the
Federal Home Loan Bank and may borrow under overnight and term borrowing
arrangements.&nbsp; The sale of earning
assets may also provide an additional source of liquidity.&nbsp; In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.<br>
<br>
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources.&nbsp;
The Corporation maintains a liquidity management policy to manage this
risk.&nbsp; This policy identifies the
primary sources of liquidity, establishes procedures for monitoring and
measuring liquidity and quantifies minimum liquidity requirements based on
board approved limits.&nbsp; The policy also
includes a liquidity contingency plan to address funding needs to maintain
liquidity under a variety of business conditions.&nbsp; The Corporation's liquidity position is monitored by the
Asset/Liability Management Committee (&quot;ALCO&quot;).<br>
<br>
At June 30, 2004, total interest-earning assets were $5,812.1 million, up from
the $4,903.7 million recorded at December 31, 2003.&nbsp; The increase of $908.4 million included interest-earning assets
in the amount of $815.8 million that were assumed in the acquisition of GAF.&nbsp; Excluding the acquisition of GAF, loans (net
of unearned income) increased $110.6 million for the first six months of
2004.&nbsp; The majority of the loan
increases were in commercial and installment loans.&nbsp; The Corporation's auto lease portfolio reflected decreases of
$8.1 million for the first six months of 2004 since the Corporation
discontinued its automobile leasing activities during 2003.&nbsp; Investment securities, excluding the
acquisition of GAF and the impact of the GAF purchase accounting adjustments, decreased
$24.9 million for the first six months of 2004.&nbsp; This decrease in investment securities was due to the decline in
the market value of available for sale securities, which fell $32.3 million.<br>
<br>
The Corporation's long-term liquidity source is a large core deposit base and a
strong capital position.&nbsp; Core deposits
are the most stable source of liquidity that a bank can have due to long-term
relationships with a deposit customer.&nbsp;
Total deposits increased $605.8 million for the first six months of 2004.&nbsp; This included an increase of $524.2 million
for the deposits that were assumed in the acquisition of GAF and an increase
due to <br>
<br>
<br>
<br>
<br>
<br>
28</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>LIQUIDITY</u> (continued)<u><br>
<br>
</u>purchase accounting adjustments in the amount of $5.4 million that were
recorded as part of the GAF acquisition transaction.&nbsp; Excluding the GAF acquisition activity, noninterest-bearing demand
deposits and savings deposits increased by $30.3 million and $132.8 million,
respectively, while time deposits decreased by $86.9 million. <br>
<br>
Excluding the acquisition growth from GAF, short-term borrowings increased
during the first six months of 2004 by $40.0 million.&nbsp; The total increase in short-term borrowings of $93.6 million
included $53.6 million that was acquired from GAF.&nbsp; The total growth in long-term borrowings of $280.7 million
included $207.7 million for the debt that was assumed in the acquisition of
GAF.&nbsp; The remaining growth in long-term
debt was due to an additional $50 million in Federal Home Loan Bank advances
that was used to purchase mortgage backed investment securities and $41.2
million in subordinated debentures that was used to fund the GAF acquisition.<br>
<br>
Marketable securities that the Corporation holds in its investment portfolio
are an additional source of liquidity.&nbsp;
These securities are classified as &quot;securities available for
sale&quot; and while the Corporation does not have specific intentions to sell
these securities, they have been designated as &quot;available for sale&quot;
because they may be sold for the purpose of obtaining future liquidity, for
management of interest rate risk or as part of the implementation of tax management
strategies.&nbsp; As of June 30, 2004,
securities available for sale had an amortized cost of $2,260.9 million and an
approximate fair value of $2,252.0 million.<br>
<br>
<b>Interest Sensitivity</b><br>
<br>
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.&nbsp; The
Corporation's market risk is composed primarily of interest rate risk.&nbsp; Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.<br>
<br>
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, can be informative.<br>
<br>
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.&nbsp; If interest-sensitive assets
(&quot;ISA&quot;) exceed interest-sensitive liabilities (&quot;ISL&quot;)
during the prescribed time period, a positive gap results.&nbsp; Conversely, when ISL exceed ISA during a
time period, a negative gap results.<br>
<br>
<br>
29</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
The cumulative gap at the 365-day repricing period was negative in the amount
of $1,232.0 million or 19.68% of total assets at June 30, 2004.&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>
The following tables list the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of June 30,
2004, and December 31, 2003 (dollar amounts in thousands):<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2004</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,226,331&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>198,814&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>329,067&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,754,212&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>194,328&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>64,617&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>179,838&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>438,783&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;7,238&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,238&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,427,897&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>263,431&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>508,905&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;2,200,233&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Certificates of deposit</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>283,512&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>138,778</font>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>422,924&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>845,214&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,823,170&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,823,170&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;733,726&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;20,907&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;9,255&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;763,888&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,840,408&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>159,685&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>432,179&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;3,432,272&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(1,412,511)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>103,746&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;76,726&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(1,232,039)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.50&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.65&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.18&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.64&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>22.56%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.66%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.23%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>19.68%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom><font size=3
  face=Courier><br clear=all>
  </font>
  <p></p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>December
  31, 2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,057,021&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>178,006&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>291,352&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,526,379&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>241,163&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>116,979&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>189,610&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>547,752&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;5,362&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;5,362&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,303,546&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>294,985&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>480,962&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,079,493&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Certificates of deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>325,957&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>242,706&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>249,361&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>818,024&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,413,069&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,413,069&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;634,878&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;1,407&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;21,290&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;657,575&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,373,904&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>244,113&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>270,651&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,888,668&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(1,070,358)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>50,872&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>210,311&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(809,175)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.55&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.21&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.78&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.72&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>20.63%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.98%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>4.05%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>15.59%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
Although the periodic gap analysis provides management with a method of
measuring current interest rate risk, it only measures rate sensitivity at a
specific point in time, and as a result may not accurately predict the impact
of changes in general levels of interest rates or net interest income.&nbsp; This is exemplified as the gap analysis
shows the Corporation's earnings to be negatively impacted by rising rates, but
computer modeling indicates that rising rates would have a favorable impact on
earnings.&nbsp; Therefore, to more precisely
measure the impact of interest rate changes on the Corporation's net interest
income, management simulates the potential effects of changing interest rates
through computer modeling.&nbsp; The income
simulation model used by the Corporation captures all assets, liabilities, and
off-balance sheet financial instruments, accounting for significant variables
that are believed to be affected by interest rates.&nbsp; These variables include prepayment speeds on mortgage loans and
mortgage backed securities, cash flows from loans, deposits and investments and
balance sheet growth assumptions.&nbsp; The
model also captures embedded options, such as interest rate caps/floors or call
options, and accounts for changes in rate relationships as various rate indices
lead or lag changes in market rates.&nbsp;
The Corporation is then better able to implement strategies that 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>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br><br></font></p>

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

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve-month period.&nbsp; Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors.&nbsp;
Additional simulations are produced estimating the impact on net
interest income of a gradual 200 basis point (2.00%) movement upward or
downward over a 12 month time frame which cannot result in more than a 5.00%
decline in net interest income when compared to the base case.&nbsp; The analysis at June 30, 2004 indicated that
a 200 basis point (2.00%) increase in interest rates would decrease net
interest income by 40 basis points (0.40%) below the base case scenario and a 200
basis point (2.00%) decline in interest rates would decrease net interest
income by 325 basis points (3.25%) below the base case scenario, over the next
twelve months, both within policy limits.<br>
<br>
The Corporation's &quot;Asset/Liability Management Committee&quot;
(&quot;ALCO&quot;) is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.&nbsp; The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.&nbsp; The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.&nbsp; The ALCO strategies are established by the
Corporation's senior management.&nbsp; <br>
<br>
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003 and two additional interest rate swap transactions during the
second quarter of 2004.&nbsp; Each of the
swap transactions involved hedging adjustable LIBOR based commercial loans with
a receive-fixed and pay-floating interest rate swap of $25 million notional
amount, for a total of $75 million.&nbsp; The
original maturities of the swap transactions ranged from 2.5 to 3 years.&nbsp; The purpose of the swap was to reduce the
Corporation's exposure to further declines in interest rates.&nbsp; The ALCO continues to evaluate the use of
additional derivative instruments to protect against the risk of adverse price
or interest rate movements on the value of certain assets and liabilities.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
32</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u></font></p>

<p><font size=3 face=Courier><br>
The following table identifies amounts of loan losses and nonperforming
loans.&nbsp; A loan is placed in nonaccrual
status at the time when ultimate collectibility of principal or interest,
wholly or partially, is in doubt.&nbsp; Past
due loans are those which are contractually past due 90 days or more as to
interest or principal payments but are well secured and in the process of
collection.&nbsp; Renegotiated loans are
those loans which terms have been renegotiated to provide a reduction or
deferral of principal or interest as a result of the deteriorating financial position
of the borrower and are in compliance with the restructured terms.&nbsp; The following table identifies nonperforming
loans as of June 30:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=235 colspan=4 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>At June 30,</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=73 colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=235 colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td width=50 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  on nonaccrual basis</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,285&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>20,810&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Past
  due loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>11,085&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>14,778&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Renegotiated
  loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;189&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;201&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  nonperforming loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;24,559&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;35,789&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Other
  real estate owned</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,421&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,714&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  outstanding at end of period</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,468,152&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,621,569&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  loans outstanding (year-to-date)</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,983,534&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,644,059&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Nonperforming
  loans as a percent of total loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.71%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.37%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,620&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>6,925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,324&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,817&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs as a percent of average loans outstanding (annualized)</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.29%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.44%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses as a percent of net charge-offs</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>106.85%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  119.05%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of average loans outstanding</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.43%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.35%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of end-of-period loans outstanding</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.23%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.36%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of nonperforming loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>173.72%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  99.48%</font></p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest that is due according to the contractual terms of
the loan.&nbsp; Loan impairment is measured
based on the present value of expected cash flows discounted at the loan's
effective interest rate or, as a practical expedient, at the loan's observable
market price or the fair value of the collateral if the loan is collateral
dependent.&nbsp; Payments received on
impaired loans are applied against the recorded investment in the loan.&nbsp; For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash
basis.&nbsp; Impaired loans include loans on
a nonaccrual basis and renegotiated loans.<br>
<br>
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at <br>
June 30:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2004</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recorded
  investment in impaired loans <br>
  &nbsp;&nbsp;at end of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,474</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>21,011</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date average balance of impaired <br>
  &nbsp;&nbsp;loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,522</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>22,262</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses related to <br>
  &nbsp;&nbsp;impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,488</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,308</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with an allocation of the<br>
  &nbsp;&nbsp;allowance for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7,493</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  15,318</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with no allocation of the&nbsp;<br>
  &nbsp;&nbsp;allowance&nbsp;for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,981</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  5,693</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date income recorded on impaired <br>
  &nbsp;&nbsp;loans on a cash basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>144</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  199</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 June 30, 2004, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at June 30, 2004, decreased $11.2 million compared to June
30, 2003 levels in all categories.&nbsp; The
most significant improvements in nonperforming loans since June 30, 2003,
occurred during the fourth quarter of 2003.&nbsp;
<br>
<br>
<br>
34</font></p>


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
The decrease in nonaccrual loan levels of $7.5 million was primarily due to
decreases in nonaccrual commercial loans.&nbsp;
Past due loans for the 2004 period decreased $3.7 million compared to
the corresponding period of 2003.&nbsp; The
decrease in past due loans was also primarily due to commercial loans.&nbsp; Nonperforming loans as a percent of total
loans was 0.71% at June 30, 2004 compared to 1.37% at June 30, 2003, while the
allowance for credit losses as a percent of nonperforming loans was 173.72% and
99.48%, respectively for the same periods.<br>
<br>
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.&nbsp; This process
includes close monitoring of watch list credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.&nbsp; Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements. &nbsp;Management also attempts to minimize loan losses by analyzing and
modifying collection techniques on a periodic basis.&nbsp; Management believes that the allowance for credit losses and
nonperforming loans remained safely within acceptable levels.<br>
<br>
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date.&nbsp;
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.&nbsp; The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.&nbsp; These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.<br>
<br>
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits.&nbsp;
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for credit
loss provisions may be necessary due to changes in management estimates and
assumptions about asset impairment, information about borrowers that indicate
changes in the expected future cash flows or changes in economic
conditions.&nbsp; The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.&nbsp; In addition, the Corporation maintains a
system of internal controls which are<br>
<br>
<br>
<br>
<br>
35</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
independently monitored and tested by internal audit and loan review staff to ensure
that the loss estimation model is maintained in accordance with internal
policies and procedures, as well as generally accepted accounting principles. <br>
<br>
<u>CAPITAL RESOURCES</u><br>
<br>
Equity capital stood at $524.2 million at June 30, 2004, an increase of $93.2
million compared to December 31, 2003.&nbsp;
Dividends declared reduced equity by $20.9 million during the first six
months of 2004.&nbsp; The retained net income
of $4.0 million remained in permanent capital to fund future growth and
expansion.&nbsp; Payment by the Corporation's
Employee Stock Ownership Plan (&quot;ESOP&quot;) to reduce debt it incurred to
acquire the Corporation's common stock for future distribution as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $429 thousand.&nbsp; Amounts paid
to fund the discount on reinvested dividends reduced equity by $393 thousand
during the first six months of 2004.&nbsp;
The market value adjustments to securities available for sale and the
loan swaps decreased equity by $21.0 million and $152 thousand, respectively,
for the period.&nbsp; Proceeds from the
reissuance of treasury shares to fund stock options exercised increased equity
by $5.1 million during 2004, while the tax benefit related to stock options increased
equity by $291 thousand.&nbsp; Equity capital
was also impacted during 2004 by an increase of $203 thousand from the
reissuance of treasury shares to fund contingent payments related to the
acquisition of First Commonwealth Financial Advisors, which consummated in
2002.&nbsp; This contingent payment of the
Corporation's common stock was the second of four scheduled annual
installments.&nbsp; Equity capital was also
impacted during the first six months of 2004 by the acquisition of GAF.&nbsp; The issuance of common stock related to the
acquisition of GAF resulted in an increase to equity capital in the amount of
$105.2 million, while the conversion of GAF's investment in FCFC stock into
treasury shares resulted in a decrease of $514 thousand to equity capital.<br>
<br>
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.&nbsp; The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.&nbsp; In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.<br>
<br>
The Federal Reserve Board has issued risk-based capital adequacy guidelines
which are designed principally as a measure of credit risk.&nbsp; These guidelines require:&nbsp; (1) at least 50% of a banking organization's
total capital be common and other &quot;core&quot; equity capital (&quot;Tier I
Capital&quot;); (2) assets and off-balance-sheet items be weighted according to
risk; (3) the total capital to risk-weighted assets ratio be at least 8%; and
(4) a minimum leverage ratio of Tier I capital to average total assets.<br>
<br>
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>
36</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CAPITAL RESOURCES</u> (continued)<br>
<br>
The table below presents the Corporation's capital position at June 30, 2004:</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Amount<br>
  <u>(in thousands)<br><br></u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Percent of<br>
  <u>Adjusted Assets<br><br></u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>486,079</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>12.1%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>160,600</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4.0%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>528,742</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13.2%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>321,201</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.0%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>486,079</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.8%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>165,564</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3.0%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.&nbsp; At June 30, 2004,
the Corporation's banking and trust subsidiaries exceeded those requirements.<br>
<br>
ITEM 3.&nbsp; QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK<br>
<br>
Information appearing in Item 2 of this report under the caption &quot;Interest
Sensitivity&quot; is incorporated herein by reference in response to this item.<br>
<br>
ITEM 4. CONTROLS AND PROCEDURES<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=703 valign=top>
  <p><font size=3 face=Courier>The
  Corporation carried out an evaluation, under the supervision and with the
  participation of the Corporation's management, including the Chief Executive
  Officer and the Chief Financial Officer, of the effectiveness of the design
  and operation of the Corporation's disclosure controls and procedures as of
  the end of the period covered by this report pursuant to Exchange Act Rule
  13a-15.&nbsp; Based upon that evaluation,
  the Corporation's Chief Executive Officer and Chief Financial Officer
  concluded that the Corporation's disclosure controls and procedures are
  effective in timely alerting them to material information relating to the
  Company (including its consolidated subsidiaries) required to be included in
  the Corporation's periodic Securities and Exchange Commission filings.&nbsp; In addition, no significant change in the
  Corporation's internal control over financial reporting was identified in
  connection with this evaluation that has materially affected or is reasonably
  likely to materially affect internal control over financial reporting.</font></p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

<p><font size=3 face=Courier><br>
ITEM 4. CONTROLS AND PROCEDURES (Continued)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=703 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=703 valign=top>
  <p><font size=3 face=Courier>Disclosure
  controls and procedures are controls and other procedures that are designed
  to ensure that information required to be disclosed by the Corporation in the
  reports that the Corporation files or submits under the Exchange Act is
  recorded, processed, summarized and reported, within the time periods
  specified in the Securities and Exchange Commission's rules and forms.
  Disclosure controls and procedures include, without limitation, controls and
  procedures designed to ensure that information required to be disclosed by
  the Corporation in the reports that the Corporation files under the Exchange
  Act is accumulated and communicated to the Corporation's management,
  including the Corporation's Chief Executive Officer and Chief Financial
  Officer, as appropriate to allow timely decisions regarding required
  disclosure.</font></p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  1.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>LEGAL
  PROCEEDINGS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>There
  were no material legal proceedings to which the Corporation or its
  subsidiaries are a party, or of which any of their property is the subject,
  except proceedings which arise in the normal course of business and, in the
  opinion of management, will not have a material adverse effect on the
  consolidated operations or financial position of the Corporation and its
  subsidiaries.</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  2.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>CHANGES
  IN SECURITIES, AND USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  3.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>DEFAULTS
  UPON SENIOR SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  4.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>On
  April 19, 2004, the Corporation held its regularly scheduled annual meeting
  of shareholders.&nbsp; The following
  proposal was considered and acted upon:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>The
  following directors were elected for terms to expire in 2007:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes
  For&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes Withheld</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>David&nbsp;S.&nbsp;Dahlmann&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,530,209&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;541,058</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Alan&nbsp;R.&nbsp;Fairman&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,565,108&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;506,159</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Joseph&nbsp;E.&nbsp;O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,518,011&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;553,256</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>E.&nbsp;James&nbsp;Trimarchi&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,228,133&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;843,134</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  5.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>OTHER
  INFORMATION</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  6.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>EXHIBITS
  AND REPORTS ON FORM 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(a)
  Exhibits:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 906 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 906 of the Sarbanes-Oxley Act
  of 2002<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>39</font></p>

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(b)
  Reports on Form 8-K:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier><br>
  The following reports on Form 8-K were furnished during the<br>
  quarter ended June 30, 2004:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier><br>
  (1) Form 8-K dated April 15, 2004, reporting the Corporation's<br>
  &nbsp;&nbsp;&nbsp;&nbsp;press release announcing its earnings for the three
  month<br>
  &nbsp;&nbsp;&nbsp;&nbsp;period ended March 31, 2004.<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(2)
  Form 8-K dated May 24, 2004, reporting the Corporation's<br>
  &nbsp;&nbsp;&nbsp;&nbsp;press release announcing the completion of the
  acquisition<br>
  &nbsp;&nbsp;&nbsp;&nbsp;of GA Financial, Inc.</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>The
  following reports on form 8-K were filed during the quarter ended June 30,
  2004:<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(1)
  Form 8-K dated May 28, 2004, reporting the acquisition of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;GA Financial, Inc. on May 25, 2004</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

<hr size=2 width="100%" align=center>

</font>

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; August 5, 2004</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Joseph
  E. O'Dell, President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; August 5, 2004</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>John
  J. Dolan, Executive Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

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

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face=Courier>

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</html>
[{"type": "10-Q", "sequence": "1", "filename": "fcfc10qdoc.htm", "description": "JUNE 2004 10Q", "secsgml_size_bytes": 389567}]
{"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": "04955673"}, "business-address": {"street1": "OLD COURTHOUSE SQUARE", "street2": "22 N SIXTH ST", "city": "INDIANA", "state": "PA", "zip": "15701", "phone": "7243497220"}, "mail-address": {"street1": "22 NORTH SIXTH STREET", "street2": "P.O. BOX 400", "city": "INDIANA", "state": "PA", "zip": "15701"}}
FORM 10-Q
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
(X)
QUARTERLY
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
  the quarterly period ended June 30, 2004
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
.
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act) Yes.
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
July 31, 2004, was 69,449,688.
FIRST COMMONWEALTH FINANCIAL CORPORATION AND
SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
PAGE
Included in Part I of this report:
First Commonwealth Financial Corporation and
Subsidiaries Consolidated Balance Sheets..................
3
Consolidated Statements of Income.........................
4
Consolidated Statements of Changes in
Shareholders' Equity....................................
5
Consolidated Statements of Cash Flows.....................
7
Notes to Consolidated Financial
  Statements................
8
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS.....................
16
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.......................................
37
ITEM 4.
CONTROLS AND PROCEDURES.....................................
37
PART II - OTHER INFORMATION
Other Information......................................................
39
Signatures.............................................................
41
Exhibits and Reports on Form 8K
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
June
  30,
2004
December
  31,
2003
ASSETS
Cash and due
  from banks on demand.......................
$
80,949
$
82,510
Interest-bearing
  bank deposits..........................
7,238
5,362
Securities
  available for sale, at market................
2,251,957
1,969,176
Securities held
  to maturity, at cost, (Market value $87,848 in
2004 and $109,609 in 2003)............................
84,706
104,254
Loans...................................................
3,468,485
2,825,337
Unearned
  income.......................................
(333)
(455)
Allowance
  for credit losses...........................
(42,664)
(37,385)
Net
  loans.........................................
3,425,488
2,787,497
Premises and
  equipment..................................
53,588
46,538
Other real
  estate owned.................................
2,421
1,866
Goodwill................................................
130,419
29,854
Amortizing
  intangibles, net.............................
18,644
3,256
Other assets............................................
205,574
158,882
Total
  assets........................................
$
6,260,984
$
5,189,195
LIABILITIES
Deposits (all
  domestic):
Noninterest-bearing...................................
$
478,749
$
408,647
Interest-bearing......................................
3,415,325
2,879,628
Total
  deposits......................................
3,894,074
3,288,275
Short-term
  borrowings...................................
727,698
634,127
Other
  liabilities.......................................
40,363
41,875
Subordinated
  debentures.................................
108,250
75,304
Other long-term
  debt....................................
966,426
718,668
Total
  long-term debt................................
1,074,676
793,972
Total
  liabilities...................................
5,736,811
4,758,249
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,
71,978,568 and 63,704,445 shares issued at June 30,
  2004 and
December 31, 2003 respectively; 69,446,220 and
  60,712,020 shares
outstanding at June 30, 2004 and December 31,
  2003 respectively..............................................
71,978
63,704
Additional
  paid-in capital..............................
175,462
79,581
Retained
  earnings.......................................
316,253
312,261
Accumulated
  other comprehensive income (loss)...........
(5,973)
15,173
Treasury stock
  (2,532,348 shares at June 30, 2004 and 2,992,425 at
December 31, 2003, at cost)...........................
(31,982)
(37,779)
Unearned ESOP
  shares....................................
(1,565)
(1,994)
Total
  shareholders' equity..........................
524,173
430,946
Total
  liabilities and shareholders' equity..........
$
6,260,984
$
5,189,195
The
accompanying notes are an integral part of these consolidated financial
statements.
3
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
For
  the Quarter
Ended June 30,
For
  the 6 Months
Ended June 30,
2004
2003
2004
2003
Interest Income
Interest
  and fees on loans
$
44,080
$
41,523
$
85,465
$
83,552
Interest
  and dividends on investments:
Taxable
  interest .......
18,305
16,449
35,834
33,605
Interest
  exempt from Federal
income taxes...........
2,728
2,687
5,373
5,210
Dividends...............
377
523
781
1,125
Interest
  on Federal funds sold........................
1
1
2
2
Interest
  on bank deposits.
7
3
15
9
Total
  interest income...
65,498
61,186
127,470
123,503
Interest Expense
Interest
  on deposits......
13,951
15,961
27,461
31,758
Interest
  on short-term borrowings..................
1,890
1,598
3,625
3,150
Interest
  on company obligated mandatorily
redeemable capital securities of
subsidiary trust........
-0-
831
-0-
1,662
Interest
  on subordinated debentures..................
1,789
-0-
3,081
-0-
Interest
  on other long-term debt...................
9,433
7,355
18,061
14,646
Total
  interest on long-term debt...................
11,222
8,186
21,142
16,308
Total
  interest expense..
27,063
25,745
52,228
51,216
Net Interest Income.....
38,435
35,441
75,242
72,287
Provision
  for credit losses......................
2,520
3,465
4,620
6,925
Net interest income after
  provision for
credit losses
35,915
31,976
70,622
65,362
Other Income
Securities
  gains..........
145
3,221
3,995
5,455
Trust
  income..............
1,442
1,284
2,710
2,469
Service
  charges on deposit
accounts................
3,760
3,255
6,960
6,104
Insurance
  commissions.....
865
848
1,669
1,645
Income
  from bank owned life
insurance...............
1,251
1,052
2,514
2,098
Merchant
  discount income..
907
895
1,735
1,707
Card
  related interchange income......................
890
695
1,510
1,299
Other
  income..............
1,837
1,948
3,587
3,492
Total
  other income......
11,097
13,198
24,680
24,269
Other Expenses
Salaries
  and employee benefits....................
17,141
15,146
33,844
30,481
Net
  occupancy expense.....
2,165
1,771
4,354
3,745
Furniture
  and equipment expense.....................
2,705
2,544
5,226
5,096
Data
  processing expense...
913
621
1,726
1,148
Pennsylvania
  shares tax expense.....................
1,140
1,081
2,274
2,141
Intangible
  amortization...
238
6
312
13
Litigation
  settlement (recovery)..................
-0-
-0-
-0-
(610)
Merger and integration charges.....................
873
-0-
2,164
-0-
Other
  operating expenses..
8,369
7,213
15,361
14,140
Total
  other expenses....
33,544
28,382
65,261
56,154
Income before income taxes...................
13,468
16,792
30,041
33,477
Applicable
  income taxes...
1,908
3,365
5,158
6,746
Net Income..............
$
11,560
$
13,427
$
24,883
$
26,731
Average
  Shares Outstanding..
64,455,920
58,769,160
62,614,372
58,736,392
Average
  Shares Outstanding Assuming Dilution
64,947,209
59,101,475
63,118,440
59,018,324
Per Share Data:
Basic
  earnings per share..
$
0.18
$
0.23
$
0.40
$
0.46
Diluted
  earnings per share
$
0.18
$
0.23
$
0.39
$
0.45
Cash
  dividends per share..
$
0.160
$
0.155
$
0.320
$
0.310
The
accompanying notes are an integral part of these consolidated financial
statements.
4
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP
Shares
Total
Shareholders'
Equity
Balance
  December 31, 2002...................
$
62,525
$
64,885
$
296,165
$
25,851
$
(44,981)
$
(3,055)
$
401,390
Comprehensive
  income
Net
  income...........
-0-
-0-
26,731
-0-
-0-
-0-
26,731
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.................
-0-
-0-
-0-
3,772
-0-
-0-
3,772
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(3,522)
-0-
-0-
(3,522)
Total
  other comprehensive income...
-0-
-0-
-0-
250
-0-
-0-
250
Total
  comprehensive income.................
-0-
-0-
26,731
250
-0-
-0-
26,981
Cash
  dividends declared
-0-
-0-
(18,301)
-0-
-0-
-0-
(18,301)
Decrease
  in unearned ESOP shares............
-0-
-0-
-0-
-0-
-0-
536
536
Discount
  on dividend reinvestment plan purchases
-0-
(334)
-0-
-0-
-0-
-0-
(334)
Treasury
  stock reissued
-0-
(190)
-0-
-0-
1,380
-0-
1,190
Balance
  at June 30, 2003.......................
$
62,525
$
64,361
$
304,595
$
26,101
$
(43,601)
$
(2,519)
$
411,462
5
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP
Shares
Total
Shareholders'
Equity
Balance
  December 31, 2003...................
$
63,704
$
79,581
$
312,261
$
15,173
$
(37,779)
$
(1,994)
$
430,946
Comprehensive
  income
Net
  income...........
-0-
-0-
24,883
-0-
-0-
-0-
24,883
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.................
-0-
-0-
-0-
(18,414)
-0-
-0-
(18,414)
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(2,580)
-0-
-0-
(2,580)
Unrealized
  holding gains (losses) on
derivatives used in cash flow hedging
relationship arising during the period.................
-0-
-0-
-0-
(152)
-0-
-0-
(152)
Total
  other comprehensive income (loss).................
-0-
-0-
-0-
(21,146)
-0-
-0-
(21,146)
Total
  comprehensive income.................
-0-
-0-
24,883
(21,146)
-0-
-0-
3,737
Cash
  dividends declared
-0-
-0-
(20,891)
-0-
-0-
-0-
(20,891)
Decrease
  in unearned ESOP shares............
-0-
-0-
-0-
-0-
-0-
429
429
Discount
  on dividend reinvestment plan purchases
-0-
(393)
-0-
-0-
-0-
-0-
(393)
Treasury
  stock acquired
-0-
-0-
-0-
-0-
(514)
-0-
(514)
Treasury
  stock reissued
-0-
(973)
-0-
-0-
6,311
-0-
5,338
Tax
  benefit of stock options................
-0-
291
-0-
-0-
-0-
-0-
291
Stock
  issued for acquisition............
8,274
96,956
-0-
-0-
-0-
-0-
105,230
Balance
  at June 30, 2004.......................
$
71,978
$
175,462
$
316,253
$
(5,973)
$
(31,982)
$
(1,565)
$
524,173
The accompanying notes are an integral part of these consolidated financial
statements.
6
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(Dollars in thousands)
For
  the 6 Months
Ended June 30,
2004
2003
Operating Activities
Net income.................................................
$
24,883
$
26,731
Adjustments to
  reconcile net income to net cash provided by operating
activities:
Provision
  for credit losses .............................
4,620
6,925
Depreciation
  and amortization............................
4,006
3,632
Net
  losses (gains) on sales of assets....................
(3,961)
(5,543)
Income
  from increase in cash surrender value of bank owned life insurance
(2,514)
(2,098)
Stock
  option tax benefit.................................
291
-0-
Changes,
  net of acquisition:
Decrease
  in interest receivable..........................
1,205
730
Increase
  (decrease) in interest payable..................
623
(922)
Increase
  (decrease) in income taxes payable..............
(3,367)
841
Net
  decrease (increase) in loans held for sale...........
(210)
97
Change
  in deferred taxes.................................
(294)
(2,325)
Other-net................................................
(7,647)
(2,124)
Net
  cash provided (used) by operating activities.......
17,635
25,944
Investing Activities
Changes, net of
  acquisition:
Transactions
  with securities held to maturity:
Proceeds
  from sales......................................
-0-
-0-
Proceeds
  from maturities and redemptions.................
19,565
70,117
Transactions
  with securities available for sale:
Proceeds
  from sales......................................
98,507
49,913
Proceeds
  from maturities and redemptions.................
470,560
510,136
Purchases................................................
(592,462)
(907,343)
Proceeds from
  sales of other assets........................
5,414
5,102
Acquisition of
  affiliate, net of cash received.............
(70,639)
-0-
Net decrease in
  time deposits with banks...................
38
736
Net increase in
  loans......................................
(122,168)
(24,016)
Purchases of
  premises and equipment........................
(3,837)
(2,693)
Net
  cash provided (used) by investing activities.......
(195,022)
(298,048)
Financing Activities
Changes, net of
  acquisition:
Repayments of
  other long-term debt.........................
(8,952)
(10,991)
Proceeds from issuance
  of other long-term debt.............
50,000
10,000
Repayments of
  subordinated debentures......................
(8,292)
-0-
Proceeds from
  issuance of subordinated debentures..........
41,238
-0-
Discount on
  dividend reinvestment plan purchases...........
(393)
(334)
Dividends paid.............................................
(19,493)
(18,284)
Net increase
  (decrease) in Federal funds purchased.........
60,900
(9,800)
Net increase
  (decrease) in other short-term borrowings.....
(20,925)
134,944
Net increase in
  deposits...................................
76,608
175,685
Proceeds from
  sale of treasury stock.......................
5,135
988
Net
  cash provided (used) by financing activities.......
175,826
282,208
Net
  increase (decrease) in cash and cash equivalents...
(1,561)
10,104
Cash and cash
  equivalents at January 1.....................
82,510
81,114
Cash and cash
  equivalents at June 30.......................
$
80,949
$
91,218
The
accompanying notes are an integral part of these consolidated financial
statements.
7
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 1 Management Representation
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries ("the
Corporation").  All significant
intercompany transactions and balances have been eliminated.  The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.  The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.  Actual realized amounts could
differ from those estimates.  In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of June 30, 2004 and
the results of operations for the three month and six month periods ended June
30, 2004 and 2003, and statements of cash flows and changes in shareholders'
equity for the six month periods ended June 30, 2004 and 2003.  The results of operations for the three
month and six month periods ended June 30, 2004 and 2003 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 2003 Annual
Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.  The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.
NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)
2004
2003
Cash
  paid during the first six months of the year for:
Interest
$
51,604
$
52,138
Income
  Taxes
$
8,528
$
8,230
Noncash
  investing and financing activities:
ESOP
  loan reductions
$
429
$
536
Loans
  transferred to other real estate owned and
repossessed assets
$
2,215
$
2,210
Gross
  increase (decease) in market value
adjustment to securities available for sale
$
(32,298)
$
385
Gross
  increase in market value adjustment of
derivatives instruments
$
(234)
$
-0-
Treasury
  stock reissued for business combination
$
203
$
203
8
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 3 Comprehensive Income Disclosures
The following table identifies the related tax effects allocated to each
component of other comprehensive income in the Statements of Changes in
Shareholder's Equity: (dollar amounts in thousands)
June 30,
  2004
June 30,
  2003
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
$
(28,329)
$
9,915
$
(18,414)
$
5,803
$
(2,031)
$
3,772
Less: reclassification
adjustment for gains
realized in net income
(3,969)
1,389
(2,580)
(5,418)
1,896
(3,522)
Unrealized losses on
derivatives used in cash flow
hedging relationships:
Unrealized holding losses
arising during the period
(234)
82
(152)
-0-
-0-
-0-
Net unrealized gains (losses)
(32,532)
11,386
(21,146)
385
(135)
250
Other comprehensive income (loss)
$
(32,532)
$
11,386
$
(21,146)
$
385
$
(135)
$
250
NOTE 4 Accounting for Stock Options Granted
Current accounting guidelines permit two alternative methods of accounting for
stock-based compensation, the intrinsic value method of APB Opinion No 25
"Accounting for Stock Issued to Employees: ("APB 25") and the
fair value method of FASB Statement No. 123 "Accounting for Stock-Based Compensation"
("FASB No. 123").  In December
2002, the Financial Accounting Standards Board ("FASB") issued
Statement No. 148, "Accounting for Stock-Based Compensation-Transition and
Disclosure" ("FAS No. 148"). 
FAS No. 148 did not amend FAS No. 123 to require companies to account
for employee stock options using the fair value method but required all
companies with stock-based compensation to provide additional disclosures,
regardless of whether they account for that compensation using the fair value
method of FAS No. 123 or the intrinsic value method of APB No. 25.
As permitted under FAS No. 123, the Corporation has elected to use intrinsic
value method to measure stock based compensation under APB 25 and to disclose
in a footnote to the financial statements, net income and earnings per share on
a pro forma basis as if the fair value methodology of FAS No. 123 had been
implemented.  No stock-based employee
compensation expense is reflected in the Corporation's net income as reported
in the Consolidated Statements of Income because all stock options granted
under the Corporation's plan had an exercise price equal to the market value of
the underlying common stock on the date of the grant.
9
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 4 Accounting for Stock Options Granted
(continued)
The following table illustrates the effect on net income and earnings per share
as if the Corporation had applied the fair value recognition provisions of FAS
No. 123 to stock-based employee compensation:
(Dollar amounts in thousands,
except per share data)
Three
  months ended
June 30,
2004
2003
Net Income, as reported
$
11,560
$
13,427
Deduct: Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects
-0-
(338)
Pro forma net income
$
11,560
$
13,089
Earnings per share:
Basic - as reported
$
0.18
$
0.23
Basic - pro forma
$
0.18
$
0.22
Diluted - as reported
$
0.18
$
0.23
Diluted - pro forma
$
0.18
$
0.22
Average shares outstanding
64,455,920
58,769,160
Average shares outstanding assuming dilution
64,947,209
59,101,475
(Dollar amounts in thousands,
except per share data)
Six
  months ended
June 30,
2004
2003
Net Income, as reported
$
24,883
$
26,731
Deduct: Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects
(38)
(676)
Pro forma net income
$
24,845
$
26,055
Earnings per share:
Basic - as reported
$
0.40
$
0.46
Basic - pro forma
$
0.40
$
0.44
Diluted - as reported
$
0.39
$
0.45
Diluted - pro forma
$
0.39
$
0.44
Average shares outstanding
62,614,372
58,736,392
Average shares outstanding assuming dilution
63,118,440
59,018,324
10
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
Note 5 Restructuring Charges
The Corporation incurred restructuring charges of $6,140 thousand during 2002
in accordance with EITF 94-3.  These
restructuring charges resulted from the merger of the charters of the
Corporation's two commercial banks (First Commonwealth Bank and Southwest Bank)
and the adoption of a new common brand and identity for all financial services
subsidiaries.  The largest component of
these charges was $4,652 thousand of employee separation costs consisting of
severance packages for 95 employees from various affiliates of the Corporation
including all levels of staff from the executive management level to back
office support staff. These amounts were included as restructuring charges, a
component of Other Expenses on the Consolidated Statements of Income during
2002.
During 2003 and 2002 actual termination benefits paid and charged against the
total severance liability were $2,823 thousand and $1,263 thousand,
respectively, leaving a remaining unpaid liability for severance costs of $566
thousand at December 31, 2003.  During
the first half of 2004, monthly severance payments totaling $467 thousand were made,
reducing the outstanding severance liability to $99 thousand at June 30,
2004.  No additional severance accruals
or adjustments relating to the 2002 restructuring charges were recorded during
the first half of 2004.
NOTE 6 Merger and Integration Charges
In the first six months of 2004, the Corporation recorded merger and
integration charges totaling $2,164 thousand ($1,406 thousand, net of
taxes).  The merger and integration
charges related to the acquisition of Pittsburgh Financial Corp. ("PFC").
The charges included $485 thousand related to the write-off of the unamortized
capitalized costs for the subordinated debentures that were previously issued
by PFC to Pittsburgh Home Capital Trust I and were called and paid off in
January of 2004.  Also included in the
merger and integration charges were $1,679 thousand in salary and benefit
severance expenses that were accrued during the first six months of 2004.  The severance costs were for 25 employees
whose positions were eliminated as part of the acquisition.
NOTE 7 New Accounting Pronouncements
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46"), "Consolidation of Variable Interest Entities," and in
December 2003, issued FIN 46 (Revised 2003) ("FIN 46R").  FIN 46R clarified some of the provisions of
FIN 46 and exempted certain entities from the original requirements of FIN
46.  As defined by FIN 46 a variable
interest entity ("VIE") is a corporation, partnership, trust or any
other legal structure used for business purposes that either (a) does not have
equity investors with voting rights or (b) has equity investors that do not
provide sufficient financial resources for the entity to support its
activities.  Under FIN 46R, an entity
that holds a variable interest in a VIE is required to consolidate the VIE if
the entity is subject to a majority of the risk of loss from the VIE's
activities, is entitled to receive a majority of the entity's residual returns
or both.  FIN 46R was implemented for
the quarter ended March 31, 2004.
11
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 7 New Accounting Pronouncements
(continued)
As part of its community reinvestment initiatives, the Corporation invests
in qualified affordable housing projects as a limited partner.  The Corporation receives federal affordable
housing tax credits and rehabilitation tax credits for these limited
partnership investments.  The
Corporation's maximum potential exposure to these partnerships is $5,257 thousand,
consisting of the limited partnership investments as of June 30, 2004.  The Corporation has determined that these
investments will not be consolidated but continue to be accounted for under the
equity method whereby the Corporation's portion of partnership losses are
recognized as incurred.  The adoption of
FIN 46 or FIN 46R has not had a material impact on the Corporation's financial
condition or results of operation.
In March 2004, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 105 ("SAB 105"), "Application of
Accounting Principles to Loan Commitments."  SAB 105 was issued to inform the SEC's registrants of the SEC
Staff's view that the fair value of the recorded loan commitments that are
required to follow derivative accounting under FASB Statement No. 133
("FAS No. 133"), "Accounting for Derivative Instruments and
Hedging Activities," should not consider the expected future cash flows
related to the associated servicing of the future loan.  The SEC staff believes that incorporating
expected future cash flows related to the associated servicing of the loan
essentially results in the immediate recognition of a servicing asset, which is
only appropriate once the servicing asset has been contractually separated from
the underlying loan by sale or by securitization of the loan with servicing
retained.  The provisions of SAB 105
were to be applied to loan commitments accounted for as derivatives that were
entered into after March 31, 2004; and therefore, was implemented during the
second quarter of 2004.  The adoption of
SAB 105 has not and is not expected to have a material impact on the
Corporation's financial condition or results of operations.
In May 2004, the FASB issued FASB Staff Position No. FAS 106-2 ("FSP FAS
106-2"), "Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003."  FSP FAS 106-2 supersedes
the FASB Staff Position No. FAS 106-1, which has the same title as FSP FAS
106-2.  FSP FAS 106-2 provides guidance
on the accounting for the effects of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003 ("the Act") for employers
that sponsor postretirement health care plans that provide prescription drug
benefits.  FSP FAS 106-2 also requires
employers to provide certain disclosures regarding the effect of the federal
subsidy provided by the Act.  This FSP
is effective for the first interim or annual period beginning after June 15,
2004.  The disclosure requirements of
FSP FAS 106-2 can be found in NOTE 9 (Post Retirement Benefit Plan of Acquired
Company) of this report.
12
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 8 Guarantees
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.  The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.  In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.  The table
below identifies the notional amounts of these guarantees at June 30, 2004:  (Dollar amounts in thousands)
Financial
  standby letters of credit
$
25,214
Performance
  standby letters of credit
$
5,615
The current notional amounts outstanding above include financial standby
letters of credit of $4,537 thousand and performance standby letters of credit
of $2,012 thousand issued during the first half of 2004.  There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.
NOTE 9 Post Retirement Benefit Plan of Acquired Company
In December 2003, the FASB issued Statement No. 132(R) "Employers'
Disclosures about Pensions and Other Postretirement Benefits" ("FAS
No. 132 (R)").  In addition to
annual disclosures that have already been implemented, the statement requires
interim reporting of the components of the net periodic benefit cost
recognized, which are included in this footnote.  Disclosure requirements for future benefit payments are effective
for fiscal years ending after June 15, 2004.
Employees of Southwest Bank, an acquired company, were covered by a post retirement
benefit plan.  The net periodic benefit
cost of this plan for the quarter ended June 30 was as follows (Dollar amounts
in thousands):
2004
2003
Service
  cost
$
-0-
$
-0-
Interest
  cost on projected benefit
  obligation
70
84
Amortization
  of transition obligation
-0-
-0-
Loss
  amortization
21
30
Net
  periodic benefit cost
$
91
$
114
The
net periodic benefit cost of this plan for the six months ended June 30 was as
follows (Dollar amounts in thousands):
2004
2003
Service
  cost
$
-0-
$
-0-
Interest
  cost on projected benefit
  obligation
141
169
Amortization
  of transition obligation
1
1
Loss
  amortization
42
60
Net
  periodic benefit cost
$
184
$
230
13
FIRST COMMONWEALTH FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 9 Post Retirement Benefit Plan of Acquired Company
(continued)
This is an unfunded post retirement plan. 
Future payments will only consist of benefit payments for life and
health insurance premiums for plan participants.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the
"Act") introduces a prescription drug benefit under Medicare Part D.
The Act also introduces a federal subsidy to sponsors of retiree health care
benefit plans that provide a prescription drug benefit that is at least
actuarially equivalent to Medicare Part D. 
As of the filing date of this quarterly report on Form 10-Q, the
Corporation has not been able to determine whether the prescription drug
benefits provided by the Corporation's postretirement plan are actuarially
equivalent to Medicare Part D.  As a
result, the preceding measures of the net periodic postretirement benefit cost
do not reflect any amounts associated with the federal subsidy.  The impact of the Act, once determined,
could affect reported calculations.
NOTE 10 Business Combination
Effective May 24, 2004, the Corporation acquired 100% of the outstanding shares
of GA Financial, Inc. ("GAF"), a savings and loan holding company,
which was headquartered in Whitehall, Pennsylvania.  GAF was the parent company of Great American Federal.  As a result of the acquisition, GAF merged
into First Commonwealth Financial Corporation and Great American Federal merged
into First Commonwealth Bank.
The acquisition of GAF is another significant step for the Corporation to
implement its strategy for expansion into the Pittsburgh, Pennsylvania
market.  The acquisition of Great
American Federal adds an additional customer base, which presents the
opportunity for First Commonwealth Bank to offer insurance, trust and financial
planning services to a larger base of customers.
Shareholders of GAF elected to receive $35.00 in cash or an equivalent of First
Commonwealth common stock for each GAF share owned.  The aggregate purchase price of the transaction was $176.6
million, which included cash in the amount of $71.4 million and common stock
valued at $105.2 million.  The value of
the 8,274,123 issued shares of First Commonwealth common stock was based on the
average market price of First Commonwealth's common stock over the ten-day
period ending three trading days prior to consummation of the acquisition.  As of June 30, 2004, the Corporation had a
remaining liability for the cash settlement of the transaction in the amount of
$2.4 thousand.
The merger was accounted for as a purchase transaction whereby the identifiable
tangible and intangible assets and liabilities of GAF have been recorded at
their fair values as of the acquisition date. 
Purchase accounting valuation adjustments, which represent the
difference between the carrying value and the fair value of identifiable
tangible and intangible assets and liabilities, were recorded in the Consolidated
Balance Sheet as of June 30, 2004. 
Preliminary goodwill in the amount of $99.5 million was recorded as a
result of the transaction.
14
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2004
(Unaudited)
NOTE 10 Business Combination
(continued)
As prescribed under the purchase method of accounting, the results of GAF's
operations have been included in the consolidated financial statements since
the acquisition date.
The customer deposit base of $15.7 million was the only amortizing intangible
that was recorded with the transaction. 
Amortization expense in the amount of $1.1 million will be recorded in
the Consolidated Income Statement throughout 2004.  The weighted-average useful life of the customer deposit base
intangible is 8 years.  The goodwill
that was recorded with the transaction is not deductible for tax purposes.
NOTE 11 Subsequent Event
At its regularly scheduled meeting in July, the Board of Directors of the Corporation's
banking subsidiary, First Commonwealth Bank, authorized the company to
restructure certain Federal Home Loan Bank advances (which we will refer to as
FHLB advances) during the third quarter of 2004.  Recent acquisitions increased the Corporation's FHLB advances to
$918 million, of which $516 million is scheduled to mature in 2008.  On July 23, 2004, First Commonwealth prepaid
approximately $440 million of its FHLB advances primarily with maturities in 2008
and a weighted average rate of 5.43%.
The Corporation incurred penalties in connection with the prepayment of the
FHLB advances, which resulted in a one-time charge of approximately $29.5
million ($19.2 million after tax) or approximately $0.28 per share in the third
quarter of 2004.  The FHLB advances were
replaced with other borrowings having maturities ranging from overnight to 2010
and having an average interest rate of 2.5% based on current rates.
The transaction is intended to expand the maturity distribution of the
Corporation's FHLB advances to minimize the impact on any one year.  The Corporation expects that the transaction
will result in an increase in net interest income over the remaining term of
the original advances in excess of the amount of the prepayment penalties,
which should result in an increase in earnings per share in future
periods.  While the transaction is
projected to produce significantly higher levels of net interest income in
future periods, the bank's interest rate risk profile will move to a slightly
liability sensitive position.
15
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
First Six Months of 2004 as Compared to the
First Six Months of 2003
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the "Corporation"). 
In addition to historical information, this discussion and analysis, as
well as the notes to the consolidated financial statements, contain
forward-looking statements (as defined in the Private Securities Litigation
Reform Act of 1995), which reflect management's beliefs and expectations based
on information currently available and may contain the words
"expect," "estimate," "project,"
"anticipate," "should," "intend,"
"probability," "risk," "target" and similar
expressions.  These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:  changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.  Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.  Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof.  The Corporation undertakes no obligation to publicly revise or
update these forward-looking statements to reflect events or circumstances that
arise after the date hereof.
Net income for the first six months of 2004 was $24.9 million reflecting a
decrease of $1.8 million compared to 2003 results of $26.7 million.  Security gains in the 2004 period were less
than that of the 2003 period.  The 2004
period included merger and integration costs that were not present in the 2003
period.  In addition, the 2004 period
incorporated the results of GAF since May 24, 2004, as well as the results of
PFC for the entire reporting period. 
Basic and diluted earnings per share were $0.40 and $0.39, respectively,
for the first six months of 2004 compared to $0.46 and $0.45, respectively, for
the same period of 2003.
Return on average assets was 0.92% and return on average equity was 10.90% for
the first six months of 2004 compared to 1.17% and 13.07%, respectively, for
the first six months of 2003.
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 Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
The following is an analysis of the impact of changes in net income on diluted
earnings per share:
Net
  income per share, prior year
$
0.45
Increase
  (decrease) from changes in:
Net
  interest income
(0.03)
Provision
  for credit losses
0.04
Security
  transactions
(0.03)
Service
  charges on deposits
0.01
Salaries
  and employee benefits
(0.02)
Net
  occupancy expense
(0.01)
Data
  processing expense
(0.01)
Litigation
  settlement (recovery)
(0.01)
Merger
  and integration charges
(0.03)
Applicable
  income taxes
0.03
Net
  income per share
$
0.39
Net Interest Income
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.  Net interest income
increased by $3.0 million for the first half of 2004 over the related period of
2003, as interest-earning assets increased. 
This increase was partially offset by a decline in net interest margin
of 34 basis points (0.34%), primarily as the interest-earning asset yield
declined faster than funding costs.  The
reduction of short-term interest rates tends to reduce rates on loan categories
and time deposits, but non-maturity deposits (such as savings and NOW accounts)
are already at very low levels and therefore decline very little.
Net interest margin (net interest income, on a tax-equivalent basis, as a
percentage of average earning assets) was 3.21% for the six months of 2004
compared to 3.63% for the six months of 2003 reflecting a decrease of 42 basis
points (0.42%).
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 Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:
Analysis
  of Changes in Net Interest Income
(dollar amounts in thousands)
2004 Change From 2003
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
6
$
27
$
(21)
Securities
2,048
8,563
(6,515)
Federal
  funds sold
-0-
1
(1)
Loans
1,913
10,783
(8,870)
Total
  interest income
3,967
19,374
(15,407)
Interest-bearing
  liabilities:
Savings
  deposits
886
1,352
(466)
Time
  deposits
(5,183)
(1,578)
(3,605)
Short-term
  borrowings
475
1,343
(868)
Long-term
  debt
4,834
7,737
(2,903)
Total
  interest expense
1,012
8,854
(7,842)
Net
  interest income
$
2,955
$
10,520
$
(7,565)
Interest
and fees on loans increased $1.9 million for the first six months of 2004
compared to 2003 due to volume increases. 
The volume increases were offset due to loan yields declining in the
lower interest rate environment.  The
total yield on loans for the first half of 2004 was 5.95%, compared to loan
yields of 6.60% for the first half of 2003. 
Average total loans for the first six months of 2004 rose $339.5 million
compared to averages for the first six months of 2003 as increases were noted
in all loan categories with the exception of leases, since the Corporation has
discontinued its leasing activities. 
The largest increases were recorded in the commercial and installment
loan categories.  The averages include
the addition of PFC for the full period of 2004 and GAF since May 24,
2004.  The Corporation has continued to
capitalize on lending opportunities with small to mid-sized commercial
borrowers, including loans generated through its preferred Small Business
Administration ("SBA") lender status.  The Corporation has consistently been one of the top small business
lenders in Pennsylvania.
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 Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Interest income on investment securities increased $2.0 million for the first
half of 2004 compared to the first half of 2003.  Increases due to volume of $8.7 million were almost eliminated by
decreases due to the decline in interest rates.  Average investments for the first half of 2004 included increases
due to PFC for the full period and increases due to GAF from May 24, 2004.  The most significant increases were in U.S.
government securities.  Total yield on
investments was 4.27% for the first six months of 2004 compared to 5.02% for
the same period of 2003, a decline of 75 basis points (0.75%).  Declines in interest income due to rate for
U.S. government agency securities were $5.0 million as yields on these
securities decreased 65 basis points (0.65%) for the 2004 period compared to
the corresponding period of 2003.
Interest expense on total deposits dropped $4.3 million for the 2004 period
compared to 2003 primarily due to decreases in interest rates.  Deposit costs were 1.62% for the first six
months of 2004 compared to 2.05% for the first six months of 2003.  The rate on savings deposits fell 5 basis
points (0.05%) resulting in a decrease to interest expense of $465.7 thousand
for the first six months of 2004 compared to the first six months of 2003,
while the rate on time deposits for 2004 also declined, down 46 basis points
(0.46%) compared to 2003 levels, resulting in a decrease to interest expense of
$3.6 million for the first six months of 2004. 
The Corporation's deposit mix continues to change as clients registered
a preference for savings deposits rather than time deposits during continuing
economic uncertainties.  Average savings
deposits increased $331.9 million for 2004 compared to 2003 averages while
average time deposits dropped $111.1 million over the same time frames.  Average deposits included increases in all
categories due to PFC for the full period and GAF from May 24, 2004.  During its management of deposit levels and
mix, the Corporation continues to evaluate the cost of time deposits compared
to alternative funding sources as it balances its goals of providing clients
with the competitive rates they are looking for while also minimizing the
Corporation's cost of funds.
Interest expense on short-term borrowings increased $475 thousand for the first
six months of 2004 compared to the same period of 2003 as decreases in interest
expense due to rate of $868 thousand were offset by increases in interest
expense due to volume of $1.3 million. 
The cost of short-term borrowings for the 2004 period decreased by 27
basis points (0.27%) compared to 2003 costs of 1.37%.  The average balance of short-term borrowings for the first six
months of 2004 increased by $195.2 million compared to the averages for the
prior year.
19
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
(continued)
First Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Interest expense on long-term debt increased $4.8 million for the first six
months of 2004 compared to the corresponding period of 2003, primarily as a
result of volume increases.  Average
long-term debt for the six months of 2004 increased by $274.7 million compared
to 2003 averages.  Average long-term
debt included increases due to PFC for the full period and GAF from May 24,
2004.  In addition, approximately $53
million of the average increase was due to additional debt in the form of
subordinated debentures that were acquired in December 2003 and March 2004,
with face amounts of $30.9 million and $41.2 million, respectively.  This debt was issued in anticipation of the
acquisition of GAF.  Refer to NOTE 11
for a discussion of the Corporation's plan to reduce interest expense on
long-term debt in future periods.
Provision for Credit Losses
The provision for credit losses is an amount added to the
allowance against which credit losses are charged.  The amount of the provision is determined by management based
upon its assessment of the size and quality of the loan portfolio and the
adequacy of the allowance in relation to the risks inherent within the loan
portfolio.  The provision for credit
losses was $4.6 million for the six months of 2004 compared to $6.9 million for
the same period of 2003.  The decrease
of $2.3 million was due to improvement in nonperforming loans and net charges
offs.  Net charge-offs against the
allowance for credit losses were $4.3 million for the 2004 period compared to
$5.8 million for the corresponding period of 2003.  Annualized net charge-offs as a percent of average loans
outstanding were 0.29% as of June 30, 2004 compared to 0.44% as of June 30,
2003.  The provision for credit losses
as a percent of net charge-offs was 106.85% at June 30, 2004 and 119.05% at
June 30, 2003.  See the "Credit
Review" section for an analysis of the quality of the loan portfolio.
20
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
(continued)
First Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2004 and 2003:
2004
2003
(amounts in thousands)
Balance
  January 1,
$
37,385
$
34,496
Addition
  as result of acquisition
4,983
-0-
Loans
  charged off:
Commercial,
  financial and agricultural
2,343
2,112
Real
  estate-construction
-0-
378
Real
  estate-commercial
383
467
Real
  estate-residential
652
2,040
Loans
  to individuals
1,456
1,685
Lease
  financing receivables
141
191
Total
  loans charged off
4,975
6,873
Recoveries
  of previously charged off loans:
Commercial,
  financial and agricultural
432
712
Real
  estate-construction
-0-
-0-
Real
  estate-commercial
-0-
-0-
Real
  estate-residential
7
10
Loans
  to individuals
212
334
Lease
  financing receivables
-0-
-0-
Total
  recoveries
651
1,056
Net
  charge offs
4,324
5,817
Provision
  charged to operations
4,620
6,925
Balance
  June 30,
$
42,664
$
35,604
Noninterest Income
Net securities gains were $4.0 million during the first six
months of 2004 compared to $5.5 million for the first six months of 2003.  Securities gains during the 2004 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $19.3 million.  Securities gains
during the 2003 period resulted primarily from the sale of fixed rate corporate
bonds classified as securities "available for sale" with book values
of $34.5 million and Pennsylvania bank stocks with book values of $6.7
million.  The corporate bonds sold
during 2003 had an average remaining life of one year and the proceeds were
reinvested in adjustable rate trust preferred securities with maturities of 30
years and mortgage backed securities with an average life of 3.6 years.
21
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
(continued)
First Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Trust income for the first six months of 2004 was up $241 thousand over the
same period of 2003.  Book values and
market values of managed assets are up slightly from prior year levels.  The rebound in market values over prior year
levels should help trust income to trend in a positive direction.  The referral programs and integrated growth
plans for financial affiliates have continued to help grow trust revenues.  The Corporation's continued success in
building relationships with commercial clients provides fee based affiliates
with additional sales opportunities through the "Total Solutions Financial
Management" ("TSFM") process. 
This strategy combines products, services and professional staff from
the Corporation's trust, insurance, financial advisory and banking affiliates
and partners them in providing comprehensive financial services offerings.
Service charges on deposits are the Corporation's most significant component of
noninterest income and increased $856 thousand for the first six months of 2004
compared to the corresponding period of 2003. 
The increases are largely due to the acquisitions of PFC and GAF.  The most significant increase was in
nonsufficient funds fees "NSF" of $887 thousand.  Management strives to implement reasonable
fees for services and closely monitors collection of those fees.  The increase in NSF fees is due to the
acquisition of PFC and GAF as well as the growth of the High Performance
Checking products for consumer and business clients.  In addition, the increase in NSF fees is due in part to better
management of the collection process to ensure that fee waivers are kept to a
minimum.
Other increases in noninterest income included increases in income from bank
owned life insurance, gain on the sale of other assets and card related
interchange income in the amounts of $416 thousand, $243 thousand and $211
thousand, respectively.  The increase in
income from bank owned life insurance was in part due to the acquisition of PFC
and GAF.  The gain on the sale of other
assets included a gain of $234 thousand related to the sale of unused
land.  The card related interchange
income growth was due in large part to the acquisition of PFC and GAF as well as
additional volume related to card usage.
22
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
(continued)
First Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Noninterest Expense
Salary and employee benefit costs increased $3.4 million or 11.0% for the first
six months of 2004 compared to the same period of 2003.  Salary costs accounted for $2.3 million or
10.0% of the increase while benefit costs increased $1.1 million or
14.35%.  The increase was due in large
part to an increase in the number of employees from the addition of PFC and
GAF.  Full-time equivalent employees
were 1,661 at the end of the second quarter of 2004 compared to 1,447 at the
same time in 2003.  The largest increase
in benefit costs was hospitalization costs, which were up $327 thousand or
11.2%.  The Corporation continues to
evaluate its current menu of employee benefits to provide a competitive
benefits package while also managing costs. 
Current benefit options include coverages fully paid for by the
employer, as well as voluntary benefits whereby employees have the option of
purchasing additional benefits at reduced group rates.
Net occupancy expense increased $609 thousand for the first six months of 2004
over 2003 levels.  Rental expense
accounted for $383 thousand of the increase, primarily due to the addition of
the former BankPittsburgh and Great American Federal offices.  Additional increases were also recorded in
depreciation expense on leasehold improvements and building repairs and
maintenance.  Most of the maintenance increases
were related to snow removal expenses resulting from the harsh winter.  The Corporation continues to actively
evaluate its branch delivery network to optimize client service in existing
branches and to continue expansion into growth markets.  The execution of these initiatives may impact
occupancy and other expenses in future periods.
Data processing expense increased by $578 thousand in the first six months of
2004 compared to the same period of 2003, due in part to the acquisitions of
PFC and GAF.  Since PFC was processed
through an outsourced processing vendor, the Corporation incurred these charges
for the first quarter of 2004.  With the
exception of one application, all of the systems for PFC were converted by the
end of the first quarter of 2004.  In
addition, the data processing expense was unfavorably impacted by a rate
increase related to clients using debit and credit cards over the STAR network.
The merger and integration expenses included $485 thousand related to the
write-off of the unamortized capitalized costs for the subordinated debentures
that were previously issued by PFC to Pittsburgh Home Capital Trust I and were
called and paid off in January of 2004. 
In addition, the merger related expenses included $1.7 million of
severance related salary and benefit expenses that were accrued during the
first six months of 2004 and were due to the integration of PFC into the
Corporation.  Future periods could be
impacted by similar costs as the PFC and GAF integrations continue.
23
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
(continued)
First Six Months of 2004 as Compared to the
First Six Months of 2003
(continued)
Other increases in noninterest expense included increase in intangible
amortization expense, telephone and data line expenses, audit and accounting
fees and PA shares tax in the amounts of $299 thousand, $296 thousand, $183
thousand and $133 thousand, respectively. 
These increases were due in large part to the acquisitions of PFC and
GAF.  Audit and accounting fee increases
also include the addition of fees related to implementation of the
Sarbanes-Oxley Act.
Income tax expense decreased $1.6 million for the first six months of 2004
compared to the first six months of 2003. 
The Corporation's effective tax rate was 17.2% for the first six months
of 2004 compared to 20.2% for the corresponding period of 2003.  The decrease in the effective tax rate was
due to additional tax-exempt income and tax credits.
Three Months Ended June 30, 2004 as Compared
to the Three Months Ended
June
30, 2003
Net income was $11.6 million for the second quarter of 2004 a decrease of $1.8
million compared to 2003 results of $13.4 million.  Basic and diluted earnings per share were $0.18 for the second
quarter of 2004 compared to $0.23 for the second quarter of 2003.  Return on average assets was 0.82% and
return on average equity was 9.76% for the second quarter of 2004 compared to
1.15% and 12.99%, respectively, for the second quarter of 2003.
Net Interest Income
Net interest income for the second quarter of 2004 of $38.4 million represented
an increase of $3.0 million compared to the second quarter of 2003.  The increase in net interest income was due
to an increase in average interest-earning assets of 19.6%.  This increase due to volume was partially
offset by a decrease due to interest rates. 
Net interest margin (net interest income, on a tax-equivalent basis, as
a percentage of average earning assets) for the 2004 period was 3.15% reflecting
a decrease of 34 basis points (0.34%) from 3.49% reported in 2003 as asset
yields declined more than the cost of funds.
24
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 June 30, 2004 as Compared
to the Three Months Ended
June
30, 2003
(continued)
The following table shows the effect of changes in volumes and rates on
interest income and interest expense for the quarter ended June 30:
Analysis
  of Changes in Net Interest Income
(dollar amounts in thousands)
2004 Change From 2003
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
4
$
15
$
(11)
Securities
1,751
3,997
(2,246)
Federal
  funds sold
-0-
1
(1)
Loans
2,557
7,433
(4,876)
Total
  interest income
4,312
11,446
(7,134)
Interest-bearing
  liabilities:
Savings
  deposits
713
780
(67)
Time
  deposits
(2,723)
(943)
(1,780)
Short-term
  borrowings
292
694
(402)
Long-term
  debt
3,036
4,780
(1,744)
Total
  interest expense
1,318
5,311
(3,993)
Net
  interest income
$
2,994
$
6,135
$
(3,141)
Interest
and fees on loans for the three months ended June 30, 2004, increased $2.6
million compared to the three months ended June 30, 2003, primarily as a result
of volume increases.  The averages
include the addition of PFC for the full quarter in 2004 and GAF since May 24,
2004.  Average loans for the second
quarter of 2004 increased $468.1 million compared to averages for the second
quarter of 2003.  The largest increases
were in commercial loans and mortgages. 
The total yield on loans for the second quarter of 2004 was 5.87%
representing a decrease of 64 basis points (0.64%)compared to yields for the
second quarter of 2003.
Interest income on investments for the three months ended June 30, 2004, was
$21.4 million, reflecting an increase of $1.8 million compared to the three
months ended June 30, 2003.  An increase
due to volume of $4.0 million was partially offset by a decrease due to
interest rate.  Average investments
increased by $394.9 million for the second quarter of 2004 compared to averages
for the second quarter of 2003.  Average
investments for the second quarter of 2004 included increases due to PFC for
the full period and increases due to GAF from May 24, 2004.  The most significant increases were in U.S.
government agency securities.  Total
yield on investments was 4.23% for the second quarter of 2004 compared to 4.77%
for the second quarter of 2003.
Interest expense on deposits dropped $2.0 million for the three months ended
June 30, 2004, compared to the three months ended June 30, 2003.  The largest part of the decrease was due to
the decline in interest rates as rates fell 41 basis points (0.41%) for the
2004 quarter to 1.59%.
25
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 June 30, 2004 as Compared
to the Three Months Ended
June
30, 2003
(continued)
The decrease due to rates was primarily due to time deposits as rates for these
products dropped 44 basis (0.44%) for the 2004 period compared to 2003.  Average total deposits were $3,537.4 million
for 2004 compared to $3,194.3 million for the corresponding period of
2003.  Decreases in average time deposit
balances were offset by increases in average savings deposit balances.  Average deposits included increases in all
categories due to PFC for the full period and GAF from May 24, 2004.
Interest expense on long-term debt for the three months ended June 30, 2004,
increased $3.0 million from $8.2 million reported for the three months ended
June 30, 2003, primarily as a result of volume increases.  Average long-term debt was $338.1 million
more in the second quarter of 2004 than averages for the second quarter of
2003.  Average long-term debt included
increases due to PFC for the full period and GAF from May 24, 2004.  In addition, long-term debt included increases
due to additional debt in the form of subordinated debentures.  Subordinated debentures in the amount of
$72.1 million were outstanding for the full quarter of 2004.
Provision for Credit Losses
The provision for credit losses was $2.5 million for the three months ended
June 30, 2004, compared to $3.5 million for the three months ended June 30,
2003.  The second quarter of 2004
reflected a decrease of $831 thousand in net charge-offs when compared to the
second quarter of 2003.  The most
significant decrease in net charge-offs for the second quarter of 2004 compared
to 2003 was in real estate loans secured by 1-4 family property.
Noninterest Income
Net securities gains were $145 thousand for the second quarter of 2004 compared
to securities gains of $3.2 million for the second quarter of 2003.  Securities gains during both the 2004 and
the 2003 periods resulted primarily from the sale of Pennsylvania bank
stocks.  During the second quarter of
2004 Pennsylvania bank stocks with book values of $358.8 thousand were sold,
while bank stocks with book values of $5.6 million were sold during the second
quarter of 2003, generating gains of $79.9 thousand and $3.2 million,
respectively.  The 2004 period also
included gains from the sale of tax-free municipal securities.
Other increases in noninterest income included increase in service charges on
deposits, income from bank owned life insurance, income from card related
interchange fees and trust income in the amounts of $505 thousand, $199
thousand, $195 thousand and $158 thousand, respectively.  Increases in noninterest income are in large
part due to the acquisition of PFC and GAF. 
The increases in service charges on deposits were most notable in the
NSF fees category.
26
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 June 30, 2004 as Compared
to the Three Months Ended
June
30, 2003
(continued)
Noninterest Expense
Total noninterest expense for the three months ended June 30, 2004, was $33.5
million reflecting an increase of $5.2 million from the corresponding period of
2003.  Employee costs were $17.1 million
for the second quarter of 2004, representing an increase of $2.0 million over
2003 levels.  Salary expense was up $1.5
million or 12.6% for the second quarter of 2004 compared to 2003.  Employee benefit costs rose $542 thousand or
14.9% for the second quarter of 2004. 
The increases were primarily due to the acquisitions of PFC and GAF as
full-time equivalent employees increased to 1,661 at the end of the second
quarter of 2004 compared to 1,447 at the same time in 2003.
Net occupancy expense increased $394 thousand for the three months ended June
30, 2004 compared to the three months ended June 30, 2003.  Rental expense accounted for $197 thousand
of the increase, primarily due to the addition of the former BankPittsburgh and
Great American Federal offices.
Merger and integration charges were $873 thousand for the second quarter of
2004 and included severance related salary and benefit expenses that were
accrued during the second quarter of 2004 due to the integration of PFC into
the Corporation.  Future periods could
be impacted by similar costs as the PFC and GAF integrations continue.
Other
noninterest expenses included increases in data processing expense, telephone
and data line expense and intangible amortization of $292 thousand, $239
thousand and $232 thousand, respectively. 
The inclusion of PFC and GAF in the Corporation's results was primarily
the cause of increased noninterest expenses.
Income tax expense decreased $1.5 million for the second quarter of 2004
compared to the second quarter of 2003. 
Tax expense for the second quarter of 2004 was positively impacted by an
increase in tax-exempt income and tax credits compared to 2003 levels.  The Corporation's effective tax rate was
14.2% for the second quarter of 2004 compared to 20.0% for the corresponding
period of 2003.
27
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.  In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans.  As an additional secondary source, short-term
liquidity needs may be provided through the use of overnight Federal funds
purchased, borrowings through use of lines available for repurchase agreements,
and borrowings from the Federal Reserve Bank. 
Additionally, the Corporation's banking subsidiary is a member of the
Federal Home Loan Bank and may borrow under overnight and term borrowing
arrangements.  The sale of earning
assets may also provide an additional source of liquidity.  In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources. 
The Corporation maintains a liquidity management policy to manage this
risk.  This policy identifies the
primary sources of liquidity, establishes procedures for monitoring and
measuring liquidity and quantifies minimum liquidity requirements based on
board approved limits.  The policy also
includes a liquidity contingency plan to address funding needs to maintain
liquidity under a variety of business conditions.  The Corporation's liquidity position is monitored by the
Asset/Liability Management Committee ("ALCO").
At June 30, 2004, total interest-earning assets were $5,812.1 million, up from
the $4,903.7 million recorded at December 31, 2003.  The increase of $908.4 million included interest-earning assets
in the amount of $815.8 million that were assumed in the acquisition of GAF.  Excluding the acquisition of GAF, loans (net
of unearned income) increased $110.6 million for the first six months of
2004.  The majority of the loan
increases were in commercial and installment loans.  The Corporation's auto lease portfolio reflected decreases of
$8.1 million for the first six months of 2004 since the Corporation
discontinued its automobile leasing activities during 2003.  Investment securities, excluding the
acquisition of GAF and the impact of the GAF purchase accounting adjustments, decreased
$24.9 million for the first six months of 2004.  This decrease in investment securities was due to the decline in
the market value of available for sale securities, which fell $32.3 million.
The Corporation's long-term liquidity source is a large core deposit base and a
strong capital position.  Core deposits
are the most stable source of liquidity that a bank can have due to long-term
relationships with a deposit customer. 
Total deposits increased $605.8 million for the first six months of 2004.  This included an increase of $524.2 million
for the deposits that were assumed in the acquisition of GAF and an increase
due to
28
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
purchase accounting adjustments in the amount of $5.4 million that were
recorded as part of the GAF acquisition transaction.  Excluding the GAF acquisition activity, noninterest-bearing demand
deposits and savings deposits increased by $30.3 million and $132.8 million,
respectively, while time deposits decreased by $86.9 million.
Excluding the acquisition growth from GAF, short-term borrowings increased
during the first six months of 2004 by $40.0 million.  The total increase in short-term borrowings of $93.6 million
included $53.6 million that was acquired from GAF.  The total growth in long-term borrowings of $280.7 million
included $207.7 million for the debt that was assumed in the acquisition of
GAF.  The remaining growth in long-term
debt was due to an additional $50 million in Federal Home Loan Bank advances
that was used to purchase mortgage backed investment securities and $41.2
million in subordinated debentures that was used to fund the GAF acquisition.
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 June 30, 2004,
securities available for sale had an amortized cost of $2,260.9 million and an
approximate fair value of $2,252.0 million.
Interest Sensitivity
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.  The
Corporation's market risk is composed primarily of interest rate risk.  Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.
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, can be informative.
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.
29
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
The cumulative gap at the 365-day repricing period was negative in the amount
of $1,232.0 million or 19.68% of total assets at June 30, 2004.  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.
The following tables list the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of June 30,
2004, and December 31, 2003 (dollar amounts in thousands):
June 30,
  2004
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,226,331
$
198,814
$
329,067
$
1,754,212
Investments
194,328
64,617
179,838
438,783
Other interest-earning assets
7,238
-0-
-0-
7,238
Total interest-sensitive assets
1,427,897
263,431
508,905
2,200,233
Certificates of deposit
283,512
138,778
422,924
845,214
Other deposits
1,823,170
-0-
-0-
1,823,170
Borrowings
733,726
20,907
9,255
763,888
Total interest-sensitive liabilities
2,840,408
159,685
432,179
3,432,272
Gap
$
(1,412,511)
$
103,746
$
76,726
$
(1,232,039)
ISA/ISL
0.50
1.65
1.18
0.64
Gap/Total assets
22.56%
1.66%
1.23%
19.68%
30
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
December
  31, 2003
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,057,021
$
178,006
$
291,352
$
1,526,379
Investments
241,163
116,979
189,610
547,752
Other interest-earning assets
5,362
-0-
-0-
5,362
Total interest-sensitive assets
1,303,546
294,985
480,962
2,079,493
Certificates of deposits
325,957
242,706
249,361
818,024
Other deposits
1,413,069
-0-
-0-
1,413,069
Borrowings
634,878
1,407
21,290
657,575
Total interest-sensitive liabilities
2,373,904
244,113
270,651
2,888,668
Gap
$
(1,070,358)
$
50,872
$
210,311
$
(809,175)
ISA/ISL
0.55
1.21
1.78
0.72
Gap/Total assets
20.63%
0.98%
4.05%
15.59%
Although the periodic gap analysis provides management with a method of
measuring current interest rate risk, it only measures rate sensitivity at a
specific point in time, and as a result may not accurately predict the impact
of changes in general levels of interest rates or net interest income.  This is exemplified as the gap analysis
shows the Corporation's earnings to be negatively impacted by rising rates, but
computer modeling indicates that rising rates would have a favorable impact on
earnings.  Therefore, to more precisely
measure the impact of interest rate changes on the Corporation's net interest
income, management simulates the potential effects of changing interest rates
through computer modeling.  The income
simulation model used by the Corporation captures all assets, liabilities, and
off-balance sheet financial instruments, accounting for significant variables
that are believed to be affected by interest rates.  These variables include prepayment speeds on mortgage loans and
mortgage backed securities, cash flows from loans, deposits and investments and
balance sheet growth assumptions.  The
model also captures embedded options, such as interest rate caps/floors or call
options, and accounts for changes in rate relationships as various rate indices
lead or lag changes in market rates. 
The Corporation is then better able to implement strategies that 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.
31
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 policy guidelines limit interest
rate risk exposure for the succeeding twelve-month period.  Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors. 
Additional simulations are produced estimating the impact on net
interest income of a gradual 200 basis point (2.00%) movement upward or
downward over a 12 month time frame which cannot result in more than a 5.00%
decline in net interest income when compared to the base case.  The analysis at June 30, 2004 indicated that
a 200 basis point (2.00%) increase in interest rates would decrease net
interest income by 40 basis points (0.40%) below the base case scenario and a 200
basis point (2.00%) decline in interest rates would decrease net interest
income by 325 basis points (3.25%) below the base case scenario, over the next
twelve months, both within policy limits.
The Corporation's "Asset/Liability Management Committee"
("ALCO") is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.  The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.  The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.  The ALCO strategies are established by the
Corporation's senior management.
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003 and two additional interest rate swap transactions during the
second quarter of 2004.  Each of the
swap transactions involved hedging adjustable LIBOR based commercial loans with
a receive-fixed and pay-floating interest rate swap of $25 million notional
amount, for a total of $75 million.  The
original maturities of the swap transactions ranged from 2.5 to 3 years.  The purpose of the swap was to reduce the
Corporation's exposure to further declines in interest rates.  The ALCO continues to evaluate the use of
additional derivative instruments to protect against the risk of adverse price
or interest rate movements on the value of certain assets and liabilities.
32
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
The following table identifies amounts of loan losses and nonperforming
loans.  A loan is placed in nonaccrual
status at the time when ultimate collectibility of principal or interest,
wholly or partially, is in doubt.  Past
due loans are those which are contractually past due 90 days or more as to
interest or principal payments but are well secured and in the process of
collection.  Renegotiated loans are
those loans which terms have been renegotiated to provide a reduction or
deferral of principal or interest as a result of the deteriorating financial position
of the borrower and are in compliance with the restructured terms.  The following table identifies nonperforming
loans as of June 30:
At June 30,
2004
2003
(amounts in thousands)
Nonperforming
  Loans
:
Loans
  on nonaccrual basis
$
13,285
$
20,810
Past
  due loans
11,085
14,778
Renegotiated
  loans
189
201
Total
  nonperforming loans
$
24,559
$
35,789
Other
  real estate owned
$
2,421
$
1,714
Loans
  outstanding at end of period
$
3,468,152
$
2,621,569
Average
  loans outstanding (year-to-date)
$
2,983,534
$
2,644,059
Nonperforming
  loans as a percent of total loans
0.71%
1.37%
Provision
  for credit losses
$
4,620
$
6,925
Net
  charge-offs
$
4,324
$
5,817
Net
  charge-offs as a percent of average loans outstanding (annualized)
0.29%
0.44%
Provision
  for credit losses as a percent of net charge-offs
106.85%
119.05%
Allowance
  for credit losses as a percent of average loans outstanding
1.43%
1.35%
Allowance
  for credit losses as a percent of end-of-period loans outstanding
1.23%
1.36%
Allowance
  for credit losses as a percent of nonperforming loans
173.72%
99.48%
33
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest that is due according to the contractual terms of
the loan.  Loan impairment is measured
based on the present value of expected cash flows discounted at the loan's
effective interest rate or, as a practical expedient, at the loan's observable
market price or the fair value of the collateral if the loan is collateral
dependent.  Payments received on
impaired loans are applied against the recorded investment in the loan.  For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash
basis.  Impaired loans include loans on
a nonaccrual basis and renegotiated loans.
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at
June 30:
2004
2003
(amounts in thousands)
Recorded
  investment in impaired loans
at end of period
$
13,474
$
21,011
Year
  to date average balance of impaired
loans
$
13,522
$
22,262
Allowance
  for credit losses related to
impaired loans
$
2,488
$
5,308
Impaired
  loans with an allocation of the
allowance for credit losses
$
7,493
$
15,318
Impaired
  loans with no allocation of the
allowance for credit losses
$
5,981
$
5,693
Year
  to date income recorded on impaired
loans on a cash basis
$
144
$
199
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 June 30, 2004, there were no
significant concentrations of credit.
Nonperforming loans at June 30, 2004, decreased $11.2 million compared to June
30, 2003 levels in all categories.  The
most significant improvements in nonperforming loans since June 30, 2003,
occurred during the fourth quarter of 2003.
34
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The decrease in nonaccrual loan levels of $7.5 million was primarily due to
decreases in nonaccrual commercial loans. 
Past due loans for the 2004 period decreased $3.7 million compared to
the corresponding period of 2003.  The
decrease in past due loans was also primarily due to commercial loans.  Nonperforming loans as a percent of total
loans was 0.71% at June 30, 2004 compared to 1.37% at June 30, 2003, while the
allowance for credit losses as a percent of nonperforming loans was 173.72% and
99.48%, respectively for the same periods.
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.  This process
includes close monitoring of watch list credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.  Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.  Management also attempts to minimize loan losses by analyzing and
modifying collection techniques on a periodic basis.  Management believes that the allowance for credit losses and
nonperforming loans remained safely within acceptable levels.
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date. 
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.  The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.  These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits. 
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for credit
loss provisions may be necessary due to changes in management estimates and
assumptions about asset impairment, information about borrowers that indicate
changes in the expected future cash flows or changes in economic
conditions.  The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.  In addition, the Corporation maintains a
system of internal controls which are
35
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
independently monitored and tested by internal audit and loan review staff to ensure
that the loss estimation model is maintained in accordance with internal
policies and procedures, as well as generally accepted accounting principles.
CAPITAL RESOURCES
Equity capital stood at $524.2 million at June 30, 2004, an increase of $93.2
million compared to December 31, 2003. 
Dividends declared reduced equity by $20.9 million during the first six
months of 2004.  The retained net income
of $4.0 million remained in permanent capital to fund future growth and
expansion.  Payment by the Corporation's
Employee Stock Ownership Plan ("ESOP") to reduce debt it incurred to
acquire the Corporation's common stock for future distribution as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $429 thousand.  Amounts paid
to fund the discount on reinvested dividends reduced equity by $393 thousand
during the first six months of 2004. 
The market value adjustments to securities available for sale and the
loan swaps decreased equity by $21.0 million and $152 thousand, respectively,
for the period.  Proceeds from the
reissuance of treasury shares to fund stock options exercised increased equity
by $5.1 million during 2004, while the tax benefit related to stock options increased
equity by $291 thousand.  Equity capital
was also impacted during 2004 by an increase of $203 thousand from the
reissuance of treasury shares to fund contingent payments related to the
acquisition of First Commonwealth Financial Advisors, which consummated in
2002.  This contingent payment of the
Corporation's common stock was the second of four scheduled annual
installments.  Equity capital was also
impacted during the first six months of 2004 by the acquisition of GAF.  The issuance of common stock related to the
acquisition of GAF resulted in an increase to equity capital in the amount of
$105.2 million, while the conversion of GAF's investment in FCFC stock into
treasury shares resulted in a decrease of $514 thousand to equity capital.
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.  The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.  In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.
The Federal Reserve Board has issued risk-based capital adequacy guidelines
which are designed principally as a measure of credit risk.  These guidelines require:  (1) at least 50% of a banking organization's
total capital be common and other "core" equity capital ("Tier I
Capital"); (2) assets and off-balance-sheet items be weighted according to
risk; (3) the total capital to risk-weighted assets ratio be at least 8%; and
(4) a minimum leverage ratio of Tier I capital to average total assets.
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.
36
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL RESOURCES
(continued)
The table below presents the Corporation's capital position at June 30, 2004:
Amount
(in thousands)
Percent of
Adjusted Assets
Tier
  I Capital
486,079
12.1%
Risk-Based
  Requirement
160,600
4.0%
Total
  Capital
528,742
13.2%
Risk-Based
  Requirement
321,201
8.0%
Minimum
  Leverage Capital
486,079
8.8%
Minimum
  Leverage Requirement
165,564
3.0%
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.  At June 30, 2004,
the Corporation's banking and trust subsidiaries exceeded those requirements.
ITEM 3.  QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Information appearing in Item 2 of this report under the caption "Interest
Sensitivity" is incorporated herein by reference in response to this item.
ITEM 4. CONTROLS AND PROCEDURES
The
  Corporation carried out an evaluation, under the supervision and with the
  participation of the Corporation's management, including the Chief Executive
  Officer and the Chief Financial Officer, of the effectiveness of the design
  and operation of the Corporation's disclosure controls and procedures as of
  the end of the period covered by this report pursuant to Exchange Act Rule
  13a-15.  Based upon that evaluation,
  the Corporation's Chief Executive Officer and Chief Financial Officer
  concluded that the Corporation's disclosure controls and procedures are
  effective in timely alerting them to material information relating to the
  Company (including its consolidated subsidiaries) required to be included in
  the Corporation's periodic Securities and Exchange Commission filings.  In addition, no significant change in the
  Corporation's internal control over financial reporting was identified in
  connection with this evaluation that has materially affected or is reasonably
  likely to materially affect internal control over financial reporting.
37
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
ITEM 4. CONTROLS AND PROCEDURES (Continued)
Disclosure
  controls and procedures are controls and other procedures that are designed
  to ensure that information required to be disclosed by the Corporation in the
  reports that the Corporation files or submits under the Exchange Act is
  recorded, processed, summarized and reported, within the time periods
  specified in the Securities and Exchange Commission's rules and forms.
  Disclosure controls and procedures include, without limitation, controls and
  procedures designed to ensure that information required to be disclosed by
  the Corporation in the reports that the Corporation files under the Exchange
  Act is accumulated and communicated to the Corporation's management,
  including the Corporation's Chief Executive Officer and Chief Financial
  Officer, as appropriate to allow timely decisions regarding required
  disclosure.
38
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, AND USE OF PROCEEDS AND ISSUER PURCHASES OF EQUITY SECURITIES
Not
  applicable
ITEM
  3.
DEFAULTS
  UPON SENIOR SECURITIES
Not
  applicable
ITEM
  4.
SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS
On
  April 19, 2004, the Corporation held its regularly scheduled annual meeting
  of shareholders.  The following
  proposal was considered and acted upon:
The
  following directors were elected for terms to expire in 2007:
Votes
  For          Votes Withheld
David S. Dahlmann          46,530,209            541,058
Alan R. Fairman            46,565,108            506,159
Joseph E. O'Dell           46,518,011            553,256
E. James Trimarchi         46,228,133            843,134
ITEM
  5.
OTHER
  INFORMATION
Not
  applicable
ITEM
  6.
EXHIBITS
  AND REPORTS ON FORM 8-K
(a)
  Exhibits:
Exhibit
  31.1 Chief Executive Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  31.2 Chief Financial Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.1 Chief Executive Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.2 Chief Financial Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act
  of 2002
39
FIRST
COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
PART II - OTHER INFORMATION
(b)
  Reports on Form 8-K:
The following reports on Form 8-K were furnished during the
quarter ended June 30, 2004:
(1) Form 8-K dated April 15, 2004, reporting the Corporation's
press release announcing its earnings for the three
  month
period ended March 31, 2004.
(2)
  Form 8-K dated May 24, 2004, reporting the Corporation's
press release announcing the completion of the
  acquisition
of GA Financial, Inc.
The
  following reports on form 8-K were filed during the quarter ended June 30,
  2004:
(1)
  Form 8-K dated May 28, 2004, reporting the acquisition of
GA Financial, Inc. on May 25, 2004
40
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:  August 5, 2004
/s/Joseph
  E.
  O'Dell
Joseph
  E. O'Dell, President and Chief Executive Officer
DATED:  August 5, 2004
/s/John
  J.
  Dolan
John
  J. Dolan, Executive Vice President and Chief Financial Officer
41