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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 September 30, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  OR<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>(&nbsp;)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<p><font size=3 face=Courier><br>
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
October 31, 2003, was 59,377,083.</font></p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><u><font size=3
  face=Courier>ITEM 1.</font></u></p>
  </td>
  <td width=564 valign=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=top>
  <p><font size=3 face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  16</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  MARKET RISK.. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  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><br>
  38</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>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>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><br
clear=all>
</font>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>September
  30,<br>
  <u>2003</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>December
  31,<br>
  <u>2002</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=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=top>
  <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=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>76,584&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>81,114&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>800&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,973&nbsp;</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,875,994&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,482,771&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 held
  to maturity, at cost,(Market value $120,157 in<br>
  &nbsp;&nbsp;&nbsp;&nbsp;2003 and $204,887 in 2002)............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  114,267&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>
  197,838&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,597,958&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,609,440&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(515)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(806)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(36,183)</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;(34,496)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,561,260&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>2,574,138&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>43,508&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>45,730&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,698&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,651&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Goodwill................................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,131&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,131&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>13&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&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other assets............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;137,935&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;131,368&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,820,190&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>LIABILITIES</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Deposits (all
  domestic):</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>393,070&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>377,466&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,757,720&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>2,666,658&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,150,790&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,044,124&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>655,357&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>469,065&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other
  liabilities........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,472&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,230&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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;Company obligated
  mandatorily redeemable capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;542,578&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;544,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;577,578&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;579,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,410,197&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,123,353&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>
 </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;62,525,408 shares issued; 59,290,575 and 58,962,543
  shares outstanding at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;September 30, 2003 and December 31, 2002 respectively.. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  62,525&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>
  62,525&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>63,927&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Retained
  earnings........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>309,241&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Accumulated
  other comprehensive income................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>17,391&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Treasury stock
  (3,234,833 shares at September 30, 2003 and 3,562,869 at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2002, at cost)............................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  (40,840)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  (44,981)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Unearned ESOP
  shares..................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(2,251)</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;(3,055)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;409,993&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;401,390&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,820,190&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=4 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the Quarter <br>
  <u>Ended September 30,</u></font></p>
  </td>
  <td width=219 colspan=4 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the 9 Months<br>
  <u>Ended September 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=105 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=105 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
  <td width=109 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=110 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</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=top>
  <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>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,089&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>44,943&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>123,641&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>135,490&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><font
  size=1 face=Courier>&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=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></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;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>16,335&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>21,005&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>49,940&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>65,034&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>2,690&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>2,363&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>7,900&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>7,172&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>489&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>464&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>1,614&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>1,457&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>2&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&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&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;1&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;7&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;10&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;26&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>59,605&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>68,784&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>183,108&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>209,185&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>14,659&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>19,409&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>46,417&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>61,512&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>1,708&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>1,305&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>4,858&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>4,572&nbsp;</font></p>
  </td>
 </tr>
 <tr height=6>
  <td height=6 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 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<br>
  &nbsp;&nbsp;&nbsp;&nbsp;mandatorily redeemable <br>
  &nbsp;&nbsp;&nbsp;&nbsp;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><br>
  <br>
  <br>
  832&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>
  <br>
  <br>
  832&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><br>
  <br>
  <br>
  2,494&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>
  <br>
  <br>
  2,494&nbsp;</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;7,417&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;8,911&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;22,063&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;26,305&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 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;8,249&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;9,743&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;24,557&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;28,799&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;24,616&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;30,457&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;75,832&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;94,883&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><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;</font></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>34,989&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>38,327&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>107,276&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>114,302&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;3,495&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;3,103&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;10,420&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;9,028&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</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><br>
  31,494&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>
  35,224&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><br>
  96,856&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>
  105,274&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><font
  size=1 face=Courier>&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=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></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;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>166&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>26&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>5,621&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>641&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>1,342&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>1,227&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>3,811&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>3,782&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>3,447&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>3,010&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>9,551&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>8,449&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Gain
  on sale of branches........ </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>3,062&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-&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>3,062&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-&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>910&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>1,055&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>2,555&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>2,862&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>1,136&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>1,186&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>3,234&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>3,428&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;3,794&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;2,897&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;10,292&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;8,565&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;13,857&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;9,401&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;38,126&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;27,727&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>15,163&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>14,505&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>45,644&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>43,915&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>2,023&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>1,668&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>5,768&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>4,967&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>2,522&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>2,391&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>7,618&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>7,357&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>688&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>558&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>1,836&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>1,484&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>1,075&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>969&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>3,216&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>2,960&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>3&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>8&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>16&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>196&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>(610)</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>8,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Restructuring
  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>-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>2,473&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>5,589&nbsp;</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;6,531&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;6,919&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;20,671&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;22,081&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;28,005&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;29,491&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;84,159&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;96,549&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>17,346&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>15,134&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>50,823&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>36,452&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;3,511&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;2,947&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;10,257&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;5,670&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>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;13,835&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;12,187&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;40,566</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;30,782&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>58,950,258&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>58,521,562&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>58,808,464&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>58,342,470&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>59,376,716&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>58,862,215&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>59,139,101&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>58,734,144&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>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.21&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.69&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.53&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>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.21&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.69&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.52&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>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.155&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.150&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.465&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.450&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=2 face=Courier>The accompanying notes are an integral part of these
consolidated financial statements.<br></font>4</p>



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Unearned<br>
  ESOP<br>&nbsp;<u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2001.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>66,176&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>288,219&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,703&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(51,431)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,126)</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>370,066&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>30,782&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>30,782&nbsp;</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>
  20,490&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>
  20,490&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=top>
  <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;&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;(396)</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;&nbsp;&nbsp;(396)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>20,094&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;-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;20,094&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>30,782&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>20,094&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>50,876&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>(26,441)</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>(26,441)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>804&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>804&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>(476)</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>(476)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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;(771)</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;5,002&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;4,231&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 September 30, 2002...... </font></p>
  </td>
  <td valign=top>
  <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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>64,929&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>292,560&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>28,797&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(46,429)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(3,322)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>399,060&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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>
5</font></p>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Common<br>
  <u>Stock</u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font
  size=1 face=Courier>Unearned<br>
  ESOP Shares</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td 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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(44,981)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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>$</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>40,566&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>40,566&nbsp;</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 (losses) on<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities arising during the period............................. </font></p>
  </td>
  <td valign=top>
  <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>
  (4,971)</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>
  (4,971)</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=top>
  <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>(3,595)</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>(3,595)</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=top>
  <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>&nbsp;&nbsp;&nbsp;&nbsp;106&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><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>&nbsp;&nbsp;&nbsp;&nbsp;106&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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;(8,460)</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;(8,460)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>40,566&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,460)</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>32,106&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>(27,490)</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>(27,490)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>804&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>804&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>(519)</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>(519)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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>(581)</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>4,141&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>3,560&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <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;142&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;-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>&nbsp;&nbsp;&nbsp;&nbsp;142&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 September 30, 2003...... </font></p>
  </td>
  <td valign=top>
  <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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>63,927&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>309,241&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>17,391&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(40,840)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(2,251)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>409,993&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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>
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><br
clear=all>
</font>



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td colspan=3 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the 9 Months<br>
  <u>Ended September 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Operating Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net income............................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,566&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,782&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,420&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>9,028&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,651&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,364&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(6,115)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(680)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  gains on sale of branches.......................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,051)</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;Income
  from increase in cash surrender value of bank owned life insurance</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,233)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,428)</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,536&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,322&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest payable........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,570)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,124)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,053&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,705)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,493)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(374)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(1,013)</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;3,597&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,751&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,782&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></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;Transactions
  with securities held to maturity:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</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=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=top>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>83,671&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,723&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=top>
  <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>(15,241)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>50,634&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>12,602&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>811,639&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>363,974&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,263,155)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(343,056)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sales of loans and other assets............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>108,738&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>71,698&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=top>
  <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>(4)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Investment in
  bank owned life insurance.................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=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>(5,000)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net decrease
  (increase) in time deposits with banks...... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,172&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,639&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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(109,867)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(129,917)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(3,984)</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;(4,717)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(321,152)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,701&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</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>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(11,553)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,050)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,000&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;18,200&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of company obligated mandatorily redeemable capital<br>
  &nbsp;&nbsp;&nbsp;securities of subsidiary trust.......................... </font></p>
  </td>
  <td valign=top>
  <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;Discount on
  dividend reinvestment plan purchases......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(519)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(476)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Dividends paid........................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(27,440)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;(26,381)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>21,700&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(30,525)</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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>164,592&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(62,630)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Sale of
  branches, net of cash received................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(21,329)</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 increase in
  deposits................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>135,920&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,918&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Stock option
  tax benefit................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>142&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;Proceeds from
  sale of treasury stock..................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;3,358&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;3,402&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;274,871&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>(58,542)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,530)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,059)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;81,114&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;98,130&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 September 30................ </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;76,584&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;97,071&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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></font></p>

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

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 1 Management Representation</u><br>
<br>
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries (&quot;the
Corporation&quot;).&nbsp; All significant
intercompany transactions and balances have been eliminated.&nbsp; The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.&nbsp; The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.&nbsp; Actual realized amounts could
differ from those estimates.&nbsp; In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of September 30, 2003
and the results of operations for the three month and nine month periods ended
September 30, 2003 and 2002, and statements of cash flows and changes in
shareholders' equity for the nine month periods ended September 30, 2003 and
2002.&nbsp; The results of operations for the
three month and nine month periods ended September 30, 2003 and 2002 are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.&nbsp; These interim
financial statements should be read in conjunction with the Corporation's 2002
Annual Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.&nbsp; The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.<br>
<br>
<u>NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Cash
  paid during the first nine months of the year for:</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=91 valign=bottom>
  <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=91 valign=bottom>
  <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>$</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier>78,402&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>98,007&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>$</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier>11,555&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>9,010&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=91 valign=bottom>
  <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=91 valign=bottom>
  <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=91 valign=bottom>
  <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>$</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier>804&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>804&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=91 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  3,458&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>
  4,568&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=494 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase (decrease) in market value<br>
  &nbsp;&nbsp;&nbsp;&nbsp;adjustment&nbsp;to securities available for sale</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  (13,179)</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>
  30,913&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=494 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase (decrease) in market value<br>
  &nbsp;&nbsp;&nbsp;&nbsp;adjustment of derivative instruments</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  163&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>
  -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=494 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Treasury
  stock reissued for 2002 business<br>
  &nbsp;&nbsp;&nbsp;&nbsp;combination</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=91 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  203&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  830&nbsp;</font></p>
  </td>
 </tr>
</table>

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

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=252 colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2003</font></u></p>
  </td>
  <td width=251 colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<u><br>
  Benefit</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <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=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=83 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=67 valign=top>
  <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>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(7,648)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>2,677&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(4,971)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>31,523&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(11,033)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><font size=1
  face=Courier>20,490&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><br>
  (5,531)</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;1,936&nbsp;</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>
  (3,595)</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>
  (610)</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;&nbsp;&nbsp;&nbsp;214&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>
  (396)</font></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>Unrealized gains (losses) on derivatives used in
  cash flow 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 gains<br>
  &nbsp;&nbsp;(losses) arising during<br>
  &nbsp;&nbsp;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;&nbsp;163&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;&nbsp;(57)</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;106&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;&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;&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 height=25>
  <td width=231 height=25 valign=bottom>
  <p><font size=1 face=Courier><br>
  Total other comprehensive income</font></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(13,016)</font></u></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;4,556&nbsp;</font></u></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(8,460)</font></u></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>30,913&nbsp;</font></u></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(10,819)</font></u></p>
  </td>
  <td width=16 height=25 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=67 height=25 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>20,094&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>
In December 2002, the Financial Accounting Standards Board (&quot;FASB&quot;)
issued Statement No. 148, &quot;Accounting for Stock-Based
Compensation-Transition and Disclosure&quot; (&quot;FAS No. 148&quot;).&nbsp; FAS No. 148 amended FASB Statement No. 123
&quot;Accounting for Stock-Based Compensation&quot; (&quot;FAS No. 123&quot;)
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.&nbsp; FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, &quot;Interim Financial
Reporting&quot; (&quot;APB 28&quot;), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.&nbsp; FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 &quot;Accounting for Stock Issued to
Employees&quot; (&quot;APB 25&quot;).&nbsp;
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.&nbsp; Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.<br>
<br>
<br>
<br>
<br>
9</font></p>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 4 Accounting for Stock Options Granted</u> (continued)<br>
<br>
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.&nbsp; As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.&nbsp; No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.<br>
<br>
The following table illustrates the effect on net income and earnings per share
if the Corporation had applied the fair value recognition provisions of FAS No.
123 to stock-based employee compensation:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>(Dollar
  amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>Three months ended<br>
  September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,835&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>12,187&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Deduct:
  Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based<br>
  &nbsp;method&nbsp;for&nbsp;all awards, net of related tax<br>
  &nbsp;effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(338)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(570)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Pro
  forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>13,497&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>11,617&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>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=3 face=Courier>&nbsp;Basic
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.21&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.20&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.21&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.20&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>Average
  Shares Outstanding</font></p>
  </td>
  <td colspan=2 rowspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>58,950,258</font></p>
  <p align=right><font size=3
  face=Courier>59,376,716</font></p>
  </td>
  <td colspan=2 rowspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;58,521,562</font></p>
  <p align=right><font size=3
  face=Courier>58,862,215</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  Shares Outstanding Assuming Dilution</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>(Dollar
  amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>Nine months ended<br>
  September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>40,566&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>30,782&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Deduct:
  Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based<br>
  &nbsp;method&nbsp;for&nbsp;all awards, net of related tax<br>
  &nbsp;effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>(1,014)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>(1,709)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Pro
  forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>39,552&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>29,073&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>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=3 face=Courier>&nbsp;Basic
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.69&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.53&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.67&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.50&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.69&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.52&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.67&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.49&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>Average
  Shares Outstanding</font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>58,808,464</font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;58,342,470</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  Shares Outstanding Assuming Dilution</font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>59,139,101</font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=right><font size=3
  face=Courier>58,734,144</font></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>10</font></p>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<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 the
second, third and fourth quarters of 2002 in accordance with EITF 94-3.&nbsp; These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.&nbsp; The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.&nbsp; Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies.&nbsp;
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.<br>
<br>
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.&nbsp; During the first nine months of 2003,
monthly severance payments totaling $2,424 thousand were made, reducing the
outstanding severance liability to $965 thousand at September 30, 2003.&nbsp; No additional severance accruals or
adjustments were recorded during the first nine months of 2003 related to the
2002 restructuring. <br>
<br>
<u>NOTE 6 New Accounting Pronouncements</u> <br>
<br>
In July 2002, the FASB issued statement No. 146, &quot;Accounting for Costs
Associated with Exit or Disposal Activities&quot; (&quot;FAS No.
146&quot;).&nbsp; FAS No. 146 replaced EITF
Issue No. 94-3, &quot;Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring).&quot;&nbsp; The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.&nbsp; Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.&nbsp; Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations. <br>
<br>
In November 2002, the FASB issued FASB Interpretation No. 45 (&quot;FIN
45&quot;), &quot;Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others&quot;.&nbsp;
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee,
and the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.&nbsp; The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.&nbsp; This
interpretation expands the disclosures to be made by the guarantor in its
financial<br>
<br>
<br>
<br>
11</font></p>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)<br><br></font></p>

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

<p><font size=3 face=Courier><br>
statements about its obligation under certain guarantees and requires the
guarantor to recognize a liability for the fair value of an obligation assumed
under a guarantee.&nbsp; FIN 45 clarifies the
requirements of FASB Statement No. 5 (&quot;FAS No. 5&quot;) &quot;Accounting
for Contingencies&quot;, relating to guarantees.&nbsp; In general, FIN 45 applies to contracts or indemnification
agreements that contingently require the guarantor to make payments to the
guaranteed party based on changes in an underlying that is related to an asset,
liability, or equity security of the guaranteed party.&nbsp; Certain guarantee contracts are excluded
from both the disclosure and recognition requirements of this interpretation,
including, but not limited to, guarantees related to employee compensation,
residual value guarantees under capital lease arrangements, commercial letters
of credit, loan commitments, subordinated interests in special purpose entities
and guarantees of a company's own future performance.&nbsp; Other guarantees are subject to the disclosure requirements of
FIN 45 but not the recognition provisions and include, among others, a
guarantee accounted for as a derivative instrument under FAS No. 133, a
parent's guarantee of debt owed to a third party by its subsidiary or vice
versa and a guarantee which is based on performance not price.&nbsp; Guarantees subject to this pronouncement
that have been entered into by the Corporation are disclosed in NOTE 7.&nbsp; The adoption of FIN 45 did not have a
material impact on the Corporation's financial condition or results of
operations.<br>
<br>
In January 2003, the FASB issued FASB Interpretation No. 46 (&quot;FIN
46&quot;), &quot;Consolidation of Variable Interest Entities&quot;.&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; This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.&nbsp; Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur.&nbsp;
FIN 46 applied immediately to variable interest entities created after
January 31, 2003.&nbsp; The effective date of
FIN 46 for variable interest entities created before February 1, 2003 has been
deferred until the end of the first interim or annual period ending after December
15, 2003.&nbsp; The Corporation is in the
process of reviewing its current business interests in order to determine the
impact of FIN 46 and whether any additional business interests require
consolidation in the Corporation's financial statements.&nbsp; The adoption of FIN 46 is not expected to
have a material impact on the Corporation's financial condition or results of
operations.<br>
<br>
In April 2003, the FASB issued Statement No. 149 &quot;Amendment of Statement
133 on Derivative Instruments and Hedging Activities&quot; (&quot;FAS No.
149&quot;).&nbsp; FAS No. 149 amends and clarifies
accounting for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities under Statement
133.&nbsp; In particular, FAS No. 149
clarifies under what circumstances a contract with an initial net investment
meets the characteristic of a derivative and when a derivative<br>
<br>
12</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>
September 30, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 6 New Accounting Pronouncements</u> (continued)<br>
<br>
contains a financing component that warrants special reporting in the statement
of cash flows.&nbsp; This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.&nbsp; The adoption of FAS No. 149 did not have a material impact on the
Corporation's financial condition or results of operations.<br>
<br>
In May 2003, the FASB issued Statement No. 150 &quot;Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity&quot;(&quot;FAS No. 150&quot;).&nbsp;
FAS No. 150 represents the first phase of the FASB's broader project on
(1) distinguishing between liability and equity instruments and (2) accounting
for instruments that have characteristics of both liabilities and equity.&nbsp; This statement requires issuers to classify
as liabilities the following three types of freestanding financial instruments:
(1) mandatorily redeemable financial instruments, (2) obligations to repurchase
the issuer's equity shares by transferring assets and (3) certain obligations
to issue a variable number of shares.&nbsp; A
freestanding financial instrument is one that is entered into separately and
apart from any of the entity's other financial instruments or equity
transactions or is entered in conjunction with some other transaction but can
be legally detached and exercised on a separate basis.&nbsp; FAS No. 150 is relatively narrow in scope as
it specifies only that certain instruments must be classified as liabilities
but does not include additional guidance on the concept of what constitutes
either a &quot;liability&quot; or &quot;equity&quot;.&nbsp;&nbsp;&nbsp; Entities will continue to apply existing guidance on
determining the balance sheet classification of instruments that do not
specifically fall within the scope of FAS No. 150.&nbsp; FAS No. 150 applied immediately to financial instruments entered
into or modified after May 31, 2003.&nbsp;
For all other instruments that exist, this statement went into effect at
the beginning of the first interim period beginning after June 15, 2003. &nbsp;Adoption of FAS No. 150 did not have a
material impact on the Corporation's financial condition or results of
operations.<br>
<br>
As of September 30, 2003, the Corporation had automobile leases with a net
balance of $32.7 million outstanding, a majority of which did not have
individually insured residual values.&nbsp;
On May 15, 2003 the Securities and Exchange Commission issued Staff
Interpretation Topic D-107, which indicated that, unless lease residuals were
individually insured, no related amount should be considered in minimum lease
payments. Consequently, a majority of automobile leases outstanding at
September 30, 2003 may not qualify as financing leases, and previously issued
financial statements would need to be restated, if material.&nbsp; The guidance will be effective no later than
for reports issued after the first fiscal quarter beginning after December 15,
2003.&nbsp; While the Corporation is in the
process of analyzing the impact of this Staff Interpretation, it could cause a
restatement of previously issued financial statements.&nbsp; Although net income over the life of a lease
treated as a financing lease will be the same as net income over the life of a
lease treated as an operating lease, because of the nature of the timing of
lease income under the two methods, if restatement is required, earlier years
would tend to contain negative adjustments to net income, while later years, as
a lease matures, will tend to produce positive adjustments to net income.&nbsp;&nbsp; <br>
<br>
<br>
13</font></p>

<p align=center><font size=3
face=Courier><br>
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)</font></p>

<p><u><font size=3 face=Courier><br>
NOTE 7 Guarantees</font></u></p>

<p><font size=3 face=Courier><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 orpledged.&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 September 30,
2003:&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;$</font></p>
  </td>
  <td valign=top>
  <p><font size=3 face=Courier>22,913</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Performance
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>6,289</font></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>The
current notional amounts outstanding above include financial standby letters of
credit of $8,501 thousand and performance standby letters of credit of $895
thousand issued during the first nine months of 2003.&nbsp; There is currently no liability recorded on the Corporation's
balance sheet related to the above letters of credit.<br>
<br>
<u>NOTE 8 Branch Sale<br>
</u><br>
In September 2003, First Commonwealth Bank, a wholly-owned subsidiary of the
registrant sold two of its branch offices.&nbsp;
Under the terms of the purchase and assumption agreement, First
Commonwealth Bank branches at 15 South Main Street in Chambersburg, PA and 1720
Lincoln Highway East in Guilford Township, PA were sold.&nbsp; The acquiring bank assumed approximately
$29.3 million of deposit liabilities and purchased approximately $4.4 million
in loans associated with the two offices.&nbsp;
The transaction generated a pre-tax gain of approximately $3.1 million
which is included in the registrant's consolidated income statement for the
third quarter of 2003.<br>
<br>
<u>Note 9 Pending Business Combination<br>
<br>
</u>On August 8, the registrant entered into a definitive agreement to acquire
Pittsburgh Financial Corp. (&quot;PFC&quot;) a financial holding company
headquartered near Pittsburgh, in Wexford Pennsylvania.&nbsp; Pittsburgh Financial Corp. is the parent
company of BankPittsburgh with total assets of $372 million, deposits of $181
million and equity of nearly $21 million at September 30, 2003.&nbsp; BankPittsburgh is a state chartered stock
savings bank headquartered in Pittsburgh, Pennsylvania which conducts business
from seven offices in Allegheny (6) and Butler (1) counties and one loan
production office in downtown Pittsburgh.&nbsp;
PFC also offers residential and commercial mortgage settlement services
through Pinnacle Settlement Group LLC, an 80% owned subsidiary.&nbsp; Pittsburgh Financial Corp. shares are traded
on the NASDAQ National Market System under the symbol &quot;PHFC&quot;.<br>
<br>
<br>
<br>
<br>
14</font></p>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>Note 9 Pending Business Combination (continued)<br>
</u><br>
Under terms of the agreement, the shareholders of Pittsburgh Financial Corp.
can elect to receive $20.00 in cash or an equivalent value of the registrant's
common stock for each PFC share owned, subject to proration as provided in the
definitive agreement to ensure that 40% of the aggregate merger consideration
will be paid in cash and 60% in First Commonwealth common stock.&nbsp; The definitive agreement was unanimously
approved by the Boards of Directors of both organizations.&nbsp; The Corporation has received required
regulatory approvals.&nbsp; In addition, the
merger is subject to approval of PFC shareholders at a special meeting
scheduled for December 5, 2003.&nbsp; The
transaction has a current market value of $28.4 million. <br>
<br>
On a pro-forma basis, as of September 30, 2003, the registrant would have
assets of approximately $5.2 billion and total equity of $427 million.<br>
<br>
<u>Note 10 Derivative Instruments<br>
<br>
</u>During the third quarter of 2003 the Corporation entered into an interest
rate swap with a notional amount of $25 million which was initiated to hedge
exposure to the variability in the future cash flows derived from adjustable
rate loans.&nbsp; The interest rate swap will
convert the interest receivables generated by the first $25 million of
principal outstandings of three month LIBOR based adjustable commercial loans
from an adjustable rate to a fixed rate.&nbsp;
The swap is a traditional pay-floating and receive-fixed interest rate
swap with a three year term.&nbsp; The
transaction is classified as a cash flow hedge whereby the fair value of the
swap is recorded as an asset or liability and changes in the fair value are
recorded as &quot;other comprehensive income&quot; a component of shareholders'
equity. <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>
15</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the &quot;Corporation&quot;).&nbsp;
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and
expectations based on information currently available and may contain the words
&quot;expect,&quot; &quot;estimate,&quot; &quot;project,&quot;
&quot;anticipate,&quot; &quot;should,&quot; &quot;intend,&quot;
&quot;probability,&quot; &quot;risk,&quot; &quot;target,&quot; and similar
expressions.&nbsp; These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:&nbsp; changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.&nbsp; Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.&nbsp; Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect management's
analysis only as of the date hereof.&nbsp;
The Corporation undertakes no obligation to publicly revise or update
these forward-looking statements to reflect events or circumstances that arise
after the date hereof.<br>
<br>
Net income for the first nine months of 2003 was $40.6 million reflecting an
increase of $9.8 million compared to 2002 results of $30.8 million.&nbsp; The change in net income for the 2003 period
reflected decreases in non-interest expenses primarily related to nonrecurring
expenses included in the 2002 period, an increase in security gains for the
2003 period compared to the corresponding period of 2002 and a gain on the sale
of two branches in the 2003 period.&nbsp; Net
income for the 2002 period included an $8.0 million litigation settlement ($5.2
million net of tax) while the 2003 period included a partial recovery from
insurance for that claim in the amount of $610 thousand ($397 thousand net of
tax).&nbsp; This settlement related to a
lender liability action filed in 1994 against one of the Corporation's
subsidiary banks and followed an adverse pre-trial judgment by the trial judge
on procedural grounds.&nbsp; The 2002 period
also included $5.6 million ($3.6 million after-tax) of nonrecurring
restructuring charges associated with the merger of the charters of the
Corporation's two commercial banks (First Commonwealth Bank and Southwest Bank)
and the adoption of a new common brand and identity for all financial services
subsidiaries.&nbsp; These restructuring
charges included $4.2 million related to separation pay for those employees
whose positions were eliminated or chose not to relocate as a result of the
merger of the two banks, which was completed in the fourth quarter of
2002.&nbsp; The first nine months of 2003
included securities gains of $5.6 million ($3.6 million net of tax) compared to
securities gains of $641 thousand ($417 thousand net of tax) for the first nine
months of 2002.&nbsp; In addition, the first
nine months of 2003 included a gain on the sale of two branches in the amount
of $3.1 million ($2.0 million net of taxes).<br>
<br>
<br>
<br>
16</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine
Months of 2003 as Compared to the First Nine Months of 2002 </b>(continued)<br>
<br>
The first nine months of 2003 also included decreases in net interest income,
which continues to be impacted by low interest rates.&nbsp; During this unparalleled period of low interest rates the
Corporation, as well as the financial services industry in general, has been
challenged by margin compression, as the cost of funds has not declined in the
same magnitude or at the same pace as asset yields.<br>
<br>
The decrease in net interest income was partially offset by increases in
non-interest income for the first nine months of 2003 compared to the first
nine months of 2002.&nbsp; Diluted earnings
per share was $0.69 for the first nine months of 2003 compared to $0.52 for the
first nine months of 2002.&nbsp; <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>0.52&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>(0.13)</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>(0.02)</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>0.08&nbsp;</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>0.02&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Gain
  on sale of branches</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.05&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Insurance
  commissions</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;Other
  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&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</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.15&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Restructuring
  charges</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.10&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Other
  operating expenses</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&nbsp;</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>(0.08)</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;0.69&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
Return on average assets was 1.16% and return on average equity was 13.26% for
the first nine months of 2003 compared to 0.90% and 10.58%, respectively, for
the first nine months of 2002.<br>
<br>
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.&nbsp; Net interest income
declined $7.0 million for the first nine months of 2003 compared to the first
nine months of 2002, primarily as earning asset yields declined faster than
funding costs.&nbsp; Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) was 3.52% for the nine months of 2003 compared to 3.79% for the nine
months of 2002.&nbsp; Continued low or
declining interest rates would tend to further strain net interest income due
to low reinvestment rates and accelerated prepayments of certain loans and
investments.<br>
<br>
17</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</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=top>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003 Change From 2002<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(16)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(12)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(4)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(14,209)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,682&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(16,891)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(11,849)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;(153)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(11,696)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(26,077)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;2,517&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(28,594)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(15,095)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>156&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(15,251)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>286&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,461&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2,175)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(4,242)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(4,188)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;(54)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(19,051)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,571)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(17,480)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(7,026)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,088&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(11,114)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans declined $11.8 million for the first nine months of 2003
compared to 2002 levels as loan yields declined in the lower interest rate
environment.&nbsp; $11.7 million of the
decline in interest and fees on loans was due to declining yields.&nbsp; The total tax-equivalent yield on loans for
the first nine months of 2003 was 6.52%, 7.17% for the first nine months of
2002.&nbsp; The largest decreases in interest
income due to rate changes were noted in commercial loans and installment
loans.&nbsp; Average loans for the first nine
months of 2003 rose $33.9 million compared to averages for the first nine
months of 2002 as increases in commercial loans, municipal loans and
installment loans were partially offset by decreases in average mortgage loans
and leases.&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 was one of the top small
business lenders in Pennsylvania during the past two years.&nbsp; The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.&nbsp; Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.&nbsp; The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.&nbsp; The Corporation has begun to retain fixed rate mortgages with
maturities of 15 years or less and all adjustable rate mortgages.<br>
<br>
<br>
<br>
<br>
<br>
18<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>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
Interest income on investments declined $14.2 million for the first nine months
of 2003 compared to the first nine months of 2002 reflecting decreases due to
interest rates of $16.9 million which were partially offset by increases due to
investment volumes of $2.7 million.&nbsp; The
total tax-equivalent yield on investments was 4.77% for the first nine months
of 2003 compared to 6.06% for the same period of 2002.&nbsp; Declines in investment interest income due
to rate were largely comprised of decreases due to U.S. government agency securities
of $15.0 million and decreases due to corporate bonds of $1.2 million.&nbsp; Yields on U.S. government agency securities
decreased 166 basis points (1.66%) for the 2003 period compared to the
corresponding period of 2002, while yields on corporate bonds decreased 64
basis points (0.64%) over the same time periods.&nbsp; Increases in investment interest income due to volume were
comprised of increases due to U.S. government agency securities of $5.2 million
which were partially offset by decreases due to asset backed securities of $3.4
million.&nbsp; Average investment securities
for the first nine months of 2003 included increases in U.S. government
agencies of $117.0 million and decreases in average asset backed securities of
$73.8 million compared to 2002 averages over the same period.<br>
<br>
Interest expense on deposits dropped $15.1 million for the first nine months of
2003 compared to the same period of 2002 due primarily to decreases in interest
rates.&nbsp; Deposit costs were 1.97% for the
first nine months of 2003 compared to 2.63% for the first nine months of
2002.&nbsp; The rate on savings deposits fell
47 basis points (0.47%) resulting in a decrease to interest expense of $4.2
million for the first nine months of 2003 compared to the first nine months of
2002.&nbsp; The rate on time deposits for
2003 also declined, down 82 basis points (0.82%) compared to 2002 levels,
resulting in a decrease to interest expense of $11.1 million for the first nine
months of 2003.&nbsp; The Corporation's deposit
mix also changed for the first nine months of 2003 as clients registered a
preference for savings deposits during continuing economic uncertainties.&nbsp; Average savings deposits increased $87.2
million for 2003 compared to 2002 averages while average time deposits dropped
$59.6 million over the same time frame.&nbsp;
During its management of deposit levels and mix, the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.<br>
<br>
Interest expense on short-term borrowings increased $286 thousand for the first
nine months of 2003 compared to the same period in 2002 as decreases in
interest expense due to rate of $2.2 million were, for the most part, offset by
increases in interest expense due to volume of $2.5 million compared to 2002
levels.&nbsp; The cost of short-term
borrowings for the 2003 period decreased by 58 basis points (0.58%) compared to
2002 costs of 1.84%. The average balance of short-term borrowings increased by
$182.5 million for the first nine months of 2003 over averages for the same
period in 2002.&nbsp; The increase in
short-term borrowings is due in part to $100 million of long-term debt that
matured during the fourth quarter of 2002 <br>
<br>
19</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
and was replaced with short-term borrowings.&nbsp;
In addition, the increase in short-term borrowings can be attributed to
the pre-investment strategy implemented during the second quarter of 2003,
which is described in the &quot;Interest Sensitivity&quot; section of this
report.<br>
<br>
Interest expense on long-term debt decreased $4.2 million for the first nine
months of 2003 compared to the corresponding period of 2002, primarily as a
result of volume decreases.&nbsp; Average
long-term debt for the nine months of 2003 decreased by $98.6 million compared
to 2002 averages.<br>
<br>
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.&nbsp; The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.&nbsp; The provision for credit losses was $10.4 million
for the nine months of 2003 compared to $9.0 million for the nine months of
2002.&nbsp; Net charge-offs against the
allowance for credit losses were $8.7 million for the first nine months of 2003
compared to $8.4 million for the same period of 2002.&nbsp; Net charge-offs as a percent of average loans outstanding were
0.33% for the first nine months of 2003 and 0.32% for the first nine months of
2002.&nbsp; The provision for credit losses
as a percent of net charge-offs was 119.32% at September 30, 2003 compared to 107.59%
at September 30, 2002.&nbsp; Management
continues to gather additional data related to its loan portfolio to make sure
material trends and factors are considered in management's evaluation of the
adequacy of the allowance for credit losses.&nbsp;
See the &quot;Credit Review&quot; section for any analysis of the
quality of the loan portfolio.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
20<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>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
Below is an analysis of the consolidated allowance for credit losses for the
nine month periods ended September 30, 2003 and 2002:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=right><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=right><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,496</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,157</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3,307</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>4,633</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>384</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>978</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>349</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,688</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,627</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,548</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3,081</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;260</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;307</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  loans charged off</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>10,165</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>10,000</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>925</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,086</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>16</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>16</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>491</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>502</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  recoveries</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,432</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,609</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  charge offs</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;8,733</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;8,391</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>10,420</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;9,028</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  September 30,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>36,183</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>34,794</font></u></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Net
securities gains were $5.6 million during the first nine months of 2003
compared to $641 thousand for the first nine months of 2002.&nbsp; Securities gains during the 2003 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $7.3 million and fixed rate corporate bonds classified as securities
&quot;available for sale&quot; with book values of $34.5 million.&nbsp; The corporate bonds sold during 2003 had an
average remaining life of one year and the proceeds were reinvested in
adjustable rate trust preferred securities with maturities of 30 years and
mortgage backed securities with an average life of 3.6 years.&nbsp; This reinvestment strategy was initiated to partially
mitigate the Corporation's exposure to low and declining interest rates.&nbsp; Securities gains during the 2002 period
resulted primarily from the sale of Pennsylvania bank stocks, U.S. treasury
securities and fixed rate corporate bonds classified as securities
&quot;available for sale&quot;.&nbsp; <br>
<br>
<br>
<br>
21<br><br></font></p>

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clear=all>
</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
Trust income was relatively stable for the first nine months of 2003 compared
to the first nine months of 2002.&nbsp;
Although fee revenue continues to be negatively impacted by low market
values, the enhanced referral programs and integrated growth plans for
financial affiliates that have been initiated have helped to offset this
trend.&nbsp; The Corporation's continued
success in building relationships with commercial clients provides fee based
affiliates with additional sales opportunities through the &quot;Total
Solutions Financial Management&quot; (&quot;TSFM&quot;) process.&nbsp; This strategy combines products, services
and professional staff from the Corporation's trust, insurance, financial
advisory and banking affiliates and partners them in providing comprehensive
financial services offerings.<br>
<br>
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $1.1 million for the first nine months of
2003 compared to the corresponding period of 2002.&nbsp; Increases in insufficient funds fees &quot;NSF&quot; of $1.6
million for the first nine months of 2003 were partially offset by decreases in
maintenance fees on deposit accounts of $321 thousand compared to 2002
levels.&nbsp; Management strives to implement
reasonable fees for services and closely monitors collection of those fees.<br>
<br>
The 2003 period included a $3.1 million gain on the sale of two branches.&nbsp; The gain occurred in the third quarter of
2003 as First Commonwealth Bank, a wholly-owned subsidiary of the registrant
sold two of its branch offices.&nbsp; The
branches were located at 15 South Main Street in Chambersburg, PA and 1720
Lincoln Highway East in Guilford Township, PA.&nbsp;
The sale included $29.2 million in deposit liabilities and $4.4 million
in loans associated with the two offices.<br>
<br>
Insurance commissions fell $307 thousand for the 2003 period as decreases in
annuity commissions were larger than the increases that were generated in all
other insurance categories.&nbsp; As part of
the previously discussed TSFM process, the Corporation's insurance subsidiary
will continue to have expanded opportunities to meet the insurance needs of
commercial clients.&nbsp; In addition, the
Corporation has developed &quot;FOCUS&quot; a financial planning tool designed
to help clients prioritize and assess their financial needs.&nbsp; The &quot;FOCUS&quot; concept results in a
systematic approach covering a wide range of personal financial goals including
appropriate insurance coverage.<br>
<br>
Other income for the first nine months of 2003 rose $1.7 million from the $8.6
million reported in the first nine months of 2002.&nbsp; Other income for the first nine months of 2003 included increases
in STAR interchange fees and merchant discount income of $671 thousand and $670
thousand, respectively, versus 2002 results.&nbsp;
Gains on the sale of residential mortgage loans including the sale of
the related servicing rights increased by $467 thousand for the first nine
months of 2003 versus 2002.&nbsp; The
increases in other income for the 2003 period compared to 2002 were partially
offset by decreases in debit card interchange fees and gains on sale of
foreclosed property.<br>
<br>
<br>
22</font></p>

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</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
Noninterest expense was $84.2 million for the first nine months of 2003
reflecting a decrease of $12.3 million from the 2002 level of $96.5 million,
primarily reflecting the effects of the previously mentioned litigation
settlement and restructuring charges included in 2002 costs.&nbsp; The 2002 period included the $8.0 million
litigation charge while the 2003 period included a $610 thousand recovery from
insurance coverage related to the settlement.&nbsp;
The 2002 period also included a $5.6 million restructuring charge
related to employee separation pay and costs related to merging the Corporation's
two subsidiary banks into one charter. <br>
<br>
Employee costs were $45.6 million for the first nine months of 2003,
representing an increase of $1.7 million over 2002 levels.&nbsp; Salary costs for the first nine months of
2003 increased $693 thousand or 2.04% compared to 2002 levels of $34.0 million.&nbsp; Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002.&nbsp;
These staffing reductions were part of the corporate restructuring
initiative that also provided severance benefits to affected employees.&nbsp; Severance costs were expensed as incurred
during 2002 while monthly cash payments for some individuals continue during
2003.&nbsp; Employee benefit costs rose $1.0
million or 10.5% for the first nine months of 2003 with the largest increase
being hospitalization costs, which were up $822 thousand or 23.0%.&nbsp; The Corporation continues to evaluate its
current menu of employee benefits to provide a competitive benefits package
while also managing costs.<br>&nbsp;<br>
Net occupancy expense increased $801 thousand for the first nine months of 2003
and included increases in building repairs and maintenance, net rental expense
and utilities compared to 2002 costs.&nbsp;
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.&nbsp; The 2003 period also included an increase in the amortization of
the purchase accounting adjustments related to premises of $340 thousand over
the 2002 period.&nbsp; An adjustment of $291
thousand was taken during the 2003 period for the write off of the remaining
purchase accounting adjustment for three branch offices that were closed during
the third quarter.&nbsp; These branch offices
were closed and their clients are served at nearby existing branch
offices.&nbsp; The Corporation continues to
actively evaluate its branch delivery network to optimize client service in
existing branch offices and to continue expansion into growth markets.&nbsp; The execution of these initiatives may
continue to impact occupancy and other expenses in future periods.&nbsp; <br>
<br>
Amortization of core deposit intangibles declined by $180 thousand for the
first nine months of 2003 compared to 2002 amortization as amounts related to
certain acquisitions became fully amortized during 2002.&nbsp; <br>
<br>
<br>
23</font></p>

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</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Nine Months of 2003 as Compared to the
First Nine Months of 2002</b><br>
(continued)<br>
<br>
Other operating expenses for the 2003 period were $20.7 million reflecting a
decrease of $1.4 million (6.4%) from the 2002 amount of $22.1 million.&nbsp; The first nine months of 2003 included
decreases in loss on sale of assets (primarily leased vehicles), other
professional fees and telephone expenses of $278 thousand, $1.3 million and
$387 thousand, respectively compared to 2002 costs.&nbsp; Directors' fees for the 2003 period reflected decreases of $379
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002. Legal fees were also $281 thousand lower
in the first nine months of 2003 compared to the first nine months of 2002. &nbsp;The first nine months of 2003 included an
increase in charge card interchange charges of $576 thousand compared to the
first nine months of 2002.&nbsp;&nbsp;&nbsp; <br>
<br>
Income tax expense increased $4.6 million for the first nine months of 2003
compared to the first nine months of 2002.&nbsp;
The 2002 period included a $2.8 million tax effect related to the $8.0
million litigation settlement recorded during 2002 as well as a $2.8 million
tax effect related to the 2002 restructuring charges.&nbsp; The Corporation's effective tax rate was 20.2% for the first nine
months of 2003 compared to 15.6% for the corresponding period of 2002.<br>
<br>
<b>Three Months Ended September 30, 2003 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2002<br></b><br>
Net income was $13.8 million for the third quarter of 2003 reflecting an
increase of $1.6 million compared to 2002 results of $12.2 million. The change
in net income for the 2003 period reflected decreases in non-interest expenses
primarily related to nonrecurring expenses included in the 2002 period and a
gain on the sale of two branches in the 2003 period.&nbsp; Restructuring charges of $2.5 million ($1.6 million net of tax)
were included in results of operations for the third quarter of 2002.&nbsp; The 2003 period included a gain of $3.1
million ($2.0 million net of taxes) related to the sale of two branches.&nbsp; <br>
<br>
Net interest income for the third quarter of 2003 reflected a decrease compared
to the amount reported for the corresponding period of 2002. The decrease in
net interest income was partially offset by increases in non-interest income
for the 2003 quarter compared to the 2002 quarter.&nbsp; Basic and diluted earnings per share were $0.23 for the third
quarter of 2003 compared to $0.21 for the third quarter of 2002.&nbsp; Return on average assets was 1.14% and
return on average equity was 13.63% for the third quarter of 2003 compared to
1.06% and 12.11%, respectively, for the third quarter of 2002.<br>
<br>
<br>
<br>
<br>
<br>
<br>
24</font></p>

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clear=all>
</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>Three Months Ended September 30, 2003 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2002 </b>(continued)<b><br></b><br>
Net interest income for the third quarter of 2003 of $35.0 million represented
a decrease of $3.3 million compared to the third quarter of 2002.&nbsp; Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2003
period was 3.31% reflecting a decrease of 47 basis points (0.47%) from 3.78%
reported in 2002 as asset yields declined more than the cost of funds.<br>&nbsp;<br>
Interest and fees on loans for the three months ended September 30, 2003
decreased $4.9 million compared to the three months ended September 30, 2002,
primarily as a result of rate decreases, most notably for variable rate
commercial loans.&nbsp; The total
tax-equivalent yield on loans for the third quarter of 2003 was 6.35%
representing a decrease of 70 basis points (0.70%)compared to yields for the
third quarter of 2002.&nbsp; Average loans
for the third quarter of 2003 decreased $7.9 million compared to averages for
the third quarter of 2002 and included deceases in average residential mortgage
loans and leases which were partially offset by increases in commercial loans,
municipal loans, installment loans and home equity loans. <br>
<br>
Interest income on investments for the three months ended September 30, 2003
was $19.5 million, reflecting a decrease of $4.3 million compared to the three
months ended September 30, 2002.&nbsp; The
total tax equivalent yield on investments was 4.33% for the third quarter of
2003 compared to 5.94% for the third quarter of 2002.&nbsp; Changes in investment income due to rate totaled $7.6 million for
the 2003 period as overall interest rates were lower than in the prior
year.&nbsp; Rate decreases during 2003 were
slightly offset by volume increases, most notably, volume increases for U.S.
government agency securities and municipal investments. Average investments
increased by $248.7 million for the third quarter of 2003 compared to averages
for the third quarter of 2002.&nbsp; <br>
<br>
Interest on deposits dropped $4.8 million for the three months ended September
30, 2003 compared to the three months ended September 30, 2002 as both rates
and volumes declined for the 2003 period.&nbsp;
Interest expense on savings reflected decreases due to rate of $1.5
million for the 2003 period as savings costs fell from 1.05% in 2002 to 0.58%
in 2003.&nbsp; Interest on time deposits
reflected decreases due to rate of $1.6 million and decreases due to volume of
$1.9 million for the third quarter of 2003 compared to the third quarter of
2002.&nbsp; The cost of time deposits was
3.32% for 2003 compared to 4.02% for 2002.&nbsp;
Average time deposits were $1,527.8 million for 2003 compared to
$1,607.6 million for the corresponding period of 2002, reflecting a decrease of
$79.8 million. <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
25</font></p>

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clear=all>
</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>Three Months Ended September 30, 2003 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2002</b>
(continued)<b><br></b>&nbsp;<br>
Interest expense on short-term borrowings rose for the third quarter of 2003
compared to the third quarter of 2002 as increases in interest expense due to
volume were partially offset by decreases in interest expense due to rate.&nbsp; Average short-term borrowings increased
$326.7 million for the third quarter of 2003 compared to 2002 averages for the
same period, due in part to $100 million of long-term debt maturing in the
fourth quarter of 2002 that was rolled into short-term borrowings.&nbsp; The largest portion of the additional
increase in short-term borrowings can primarily be attributed to the pre-investment
strategy implemented during the second quarter of 2003, which is described in
the &quot;Interest Sensitivity&quot; section of this report.&nbsp; Interest expense on long-term debt for the
three months ended September 30, 2003 fell $1.5 million from $9.7 million
reported for the three months ended September 30, 2002 primarily as a result of
volume decreases.&nbsp; Average long-term
debt was $102.9 million lower in the third quarter of 2003 compared to averages
for the third quarter of 2002.&nbsp; <br>&nbsp; <br>
The provision for credit losses was $3.5 million for the three months ended
September 30, 2003 compared to $3.1 million for the three months ended
September 30, 2002.&nbsp; Net charge-offs for
the third quarter of 2003 were $2.9 million, an increase of $305 thousand from
net charge-offs for the third quarter of 2002.&nbsp;
<br>
<br>
Net securities gains were $166 thousand for the third quarter of 2003 compared
to securities gains of $26 thousand for the third quarter of 2002.&nbsp; The 2003 period included gains that were
primarily from the sale of Pennsylvania bank stocks and municipal securities
with book values of $615 thousand and $6.1 million, respectively.&nbsp; The 2002 period included gains from the call
of municipal securities classified as &quot;held to maturity&quot; with book
values of $3.4 million. <br>
<br>
Service charges on deposits increased by $437 thousand for the three months
ended September 30, 2003 compared to the three months ended September 30,
2002.&nbsp; This increase is due in part to
increases in insufficient funds fees &quot;NSF&quot; for the third quarter of
2003 compared to 2002 levels.&nbsp; <br>
<br>
Other income for the third quarter of 2003 rose $897 thousand from the $2.9
million reported for the third quarter of 2002.&nbsp; Other income for the 2003 period included increases in merchant
discount income of $240 thousand versus 2002 results.&nbsp; This increase for the 2003 period was partially offset by
decreases in ATM surcharges and sold mortgage servicing fees.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
26</font></p>

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clear=all>
</font>

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>Three Months Ended September 30, 2003 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2002</b>
(continued)<b><br></b>&nbsp;<br>
Total noninterest expense for the three months ended September 30, 2003 was
$28.0 million reflecting a decrease of $1.5 million from the $29.5 million that
was reported for the corresponding period of 2002.&nbsp; The decrease in 2003 resulted primarily from the previously
discussed restructuring charges of $2.5 million that were included in the 2002
period.&nbsp; Employee costs were $15.2
million for the third quarter of 2003, representing an increase of $658
thousand over 2002 levels.&nbsp; Salary costs
for the three months of 2003 increased by 3.1% compared to 2002 levels.&nbsp; Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002.&nbsp;
Employee benefit costs rose $305 thousand or 9.7% for the third quarter
of 2003 with the largest increase being hospitalization costs, which were up
$280 thousand or 23.4% compared to 2002 levels.<br>
<br>
Net occupancy expense increased $355 thousand for the three months ended
September 30, 2003 compared to the three months ended September 30, 2002.&nbsp; The increases in 2003 were primarily due to
increases in building repairs and maintenance of $57 thousand and increases in
the amortization of the purchase accounting adjustments related to premises of
$290 thousand over the 2002 period.&nbsp; An
adjustment of $291 thousand was taken during the 2003 period for the write off
of the remaining purchase accounting adjustment for three branches that were
closed during the third quarter.&nbsp; <br>
<br>
Other operating expenses for the third quarter of 2003 were $6.5 million
reflecting a decrease of $388 thousand from the 2002 amount of $6.9
million.&nbsp; The most notable decreases in
other operating expenses for the third quarter of 2003 compared to the third
quarter of 2002 occurred in other professional fees, fees related to collection
and repossession activities and loss on sale of assets which decreased by $478
thousand, $116 thousand and $107 thousand, respectively.&nbsp; Other operating expenses for the third quarter
of 2003 were also positively impacted by reductions in telephone costs due in
part to active management of both voice and data line expenses by the
Corporation's data processing and technology affiliate.&nbsp; The three months ended September 30, 2003
included increases in charge card interchange costs and PA sales tax compared
to the three months ended September 30, 2002.&nbsp;
In addition, increases of $235 thousand were reflected in contribution
expenses in the 2003 period compared to 2002.&nbsp;
The increase was due to the contribution of three consolidated branch
buildings in the 2003 period to local municipalities.&nbsp; The customer service of these three branch offices was
consolidated into nearby existing branch offices during the third quarter of
2003.<br>
<br>
Income tax expense increased $564 thousand for the third quarter of 2003
compared to the third quarter of 2002 primarily as a result of increases in
income before taxes of $2.2 million over 2002 levels.&nbsp; Tax expense for 2002 included the $866 thousand tax effect related
to the 2002 restructuring charges.&nbsp; Tax
expense for the third quarter of 2003 was positively impacted by an increase in
tax-free municipal income compared to 2002 levels.&nbsp; The Corporation's effective tax rate was 20.2% for the third
quarter of 2003 compared to 19.5% for the corresponding period of 2002.<br>
<br>
27</font></p>

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</font>

<p align=center><br>
<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></font></p>

<p><font size=3 face=Courier><br>
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.&nbsp; In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans.&nbsp; As an additional secondary source,
short-term liquidity needs may be provided through the use of overnight Federal
funds purchased, borrowings through use of lines available for repurchase
agreements, and borrowings from the Federal Reserve Bank.&nbsp; Additionally, the banking subsidiary is a
member of the Federal Home Loan Bank and may borrow under overnight and term
borrowing arrangements.&nbsp; The sale of
earning assets may also provide an additional source of liquidity.&nbsp; In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.<br>
<br>
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources.&nbsp;
The Corporation maintains a liquidity management policy to manage this
risk.&nbsp; This policy identifies the
primary sources of liquidity, establishes procedures for monitoring and
measuring liquidity and quantifies minimum liquidity requirements which comply
with regulatory requirements.&nbsp; The
policy also includes a liquidity contingency plan to address funding needs to
maintain liquidity under a variety of business conditions.&nbsp; The Corporation's liquidity position is
monitored by the Asset/Liability Management Committee (&quot;ALCO&quot;).<br>
<br>
At September 30, 2003 total earning assets were $4,588.5 million, up from the
$4,291.2 million recorded at December 31, 2002.&nbsp; Net loans decreased $12.9 million for the first nine months of
2003.&nbsp; The 2003 period included
increases in commercial loans, municipal loans and loans to individuals of
$38.5 million, $11.7 million and $22.1 million, respectively, over 2002
year-end levels.&nbsp; These increases were
offset by decreases of $63.5 million in residential real estate loans, due in
part to the continued run-off of the existing portfolio and sale of new loan
production as the Corporation continues to change its loan mix, and decreases
of $14.4 million in the Corporation's auto lease portfolio as the Corporation
has discontinued its automobile leasing activities.&nbsp; The 2003 period also reflected decreases in construction loans of
$8.6 million over year-end 2002 levels.&nbsp;
Investment securities increased $309.7 million for the first nine months
of 2003 due in part to a $150 million pre-investment strategy that is described
in the &quot;Interest Sensitivity&quot; section of this report.<br>
<br>&nbsp;<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
28</font></p>

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</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>
</u><br>
Total deposits increased $106.7 million for the first nine months of 2003.&nbsp; This included increases in total savings
deposits of $119.6 million and demand deposits of $15.6 million compared to
year-end 2002.&nbsp; These increases were
partially offset by decreases in time deposits of $28.6 million.&nbsp; Included in time deposits for the first nine
months of 2003 were $100 million of brokered deposits with a weighted average
term of 27 months.&nbsp; Proceeds from the
issuance of brokered deposits were utilized to pay down short-term borrowings
during the first quarter of 2003.&nbsp;
Short-term borrowings increased $186.3 million during the 2003 period to
$655.4 million compared to $469.1 million at December 31, 2002.&nbsp; Short-term borrowings of $150 million were
used to fund the previously mentioned pre-investment strategy.<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 September
30, 2003, securities available for sale had an amortized cost of $1,849.4
million and an approximate fair value of $1,876.0 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, may be helpful.<br>
<br>
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.&nbsp; If interest-sensitive assets
(&quot;ISA&quot;) exceed interest-sensitive liabilities (&quot;ISL&quot;)
during the prescribed time period, a positive gap results.&nbsp; Conversely, when ISL exceed ISA during a
time period, a negative gap results.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
29</font></p>

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</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 $729.9 million or 15.14% of total assets at September 30, 2003.&nbsp; A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period.&nbsp; A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.&nbsp; In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when
interest rates rise, a negative gap should tend to affect earnings negatively.<br>
<br>
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.&nbsp; The primary components of ISL include maturing
certificates of deposit, money market deposits, savings deposits, NOW accounts
and short-term borrowings.<br>
<br>
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of September
30, 2003, and December 31, 2002 (dollar amounts in thousands):<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,010,976&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>171,061&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>297,170&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,479,207&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>226,555&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>174,837&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>224,378&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>625,770&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;&nbsp;&nbsp;800&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;&nbsp;0&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;&nbsp;0&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;&nbsp;800&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>1,238,331&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>345,898&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>521,548&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>2,105,777&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>269,702&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>247,054&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>368,993&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>885,749&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>1,292,168&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&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&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,292,168&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;655,324&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;1,102&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;1,355&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;657,781&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>2,217,194&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>248,156&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>370,348&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>2,835,698&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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(978,863)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;97,742&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>151,200&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(729,921)</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>0.56&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.39&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.41&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.74&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>20.31%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>2.03%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>3.14%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>15.14%</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><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, 2002</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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>962,398&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>157,172&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>295,273&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,414,843&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>292,206&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>162,578&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>262,287&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>717,071&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;1,973&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;&nbsp;0&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;&nbsp;0&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;1,973&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>1,256,577&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>319,750&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>557,560&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>2,133,887&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>354,625&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>170,687&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>263,882&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>789,194&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>1,172,538&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&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&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,172,538&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;469,735&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;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;&nbsp;1,483&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;472,123&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>1,996,898&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>171,592&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>265,365&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>2,433,855&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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(740,321)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>148,158&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>292,195&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(299,968)</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>0.63&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.86&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>2.10&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.88&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>16.36%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>3.27%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>6.46%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>6.63%</font></p>
  </td>
 </tr>
</table>

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

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
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 200 basis point (2.00%) movement upward or downward which
cannot result in more than a 5.0% change in either direction in net interest
income when compared to the base case.&nbsp;
The analysis at September 30, 2003 indicated that a 200 basis point
(2.00%) increase in interest rates would increase net interest income 271 basis
points (2.71%) above the base case scenario and a 200 basis point (2.00%)
decline in interest rates would decrease net interest income by 546 basis
points (5.46%) below the base case scenario, over the next twelve months.&nbsp; While the 200 basis points (2.00%) declining
rate scenario currently exceeds the -5.00% policy limit by 46 basis points
(0.46%), it is recognized by the corporation that this declining rate scenario
is unrealistic in the current rate environment with the federal funds rate at
only 1.00%.<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 Corporation's senior management
establishes ALCO strategies.&nbsp; <br>
<br>
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003.&nbsp; The swap has a
three-year maturity and involves hedging adjustable LIBOR based commercial
loans with a receive-fixed interest rate swap of $25 million notional
amount.&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 values of certain assets and
liabilities.&nbsp; <br>
<br>
To minimize its exposure to falling interest rates, the Corporation implemented
a pre-investment strategy during the second quarter of 2003 whereby a portion
of the cash flows from securities expected to mature or repay within four to
six months were reinvested before their maturity or repayment dates by
utilizing $150 million of short-term borrowings as an interim funding
source.&nbsp; This strategy was implemented
to lock in current reinvestment rates to prevent further yield decreases as
interest rates continue to fall and should have an overall positive impact on
investment yields.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
32</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>&nbsp;</font></p>

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

<p><font size=3 face=Courier><br>
The following table identifies amounts of loan losses and nonperforming
loans.&nbsp; Past due loans are those which
were contractually past due 90 days or more as to interest or principal
payments but are well secured and in the process of collection.&nbsp; Renegotiated loans are those loans which
terms have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>At September 30,</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></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><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  on nonaccrual basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>18,430&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>24,463&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Past
  due loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,949&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>14,385&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Renegotiated
  loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;198&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;209&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;32,577&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;39,057&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Other
  real estate owned</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,698&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,662&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  outstanding at end of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,597,443&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,617,465&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  loans outstanding (year-to-date)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,630,009&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,596,081&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Nonperforming
  loans as percent of total loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.25%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.49%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>10,420&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>9,028&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,733&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,391&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.33%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.32%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses as a percent of net charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  119.32%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  107.59%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.38%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.34%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of end-of-period loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.39%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.33%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  111.07%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  89.09%</font></p>
  </td>
 </tr>
</table>

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

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

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

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

<p><font size=3 face=Courier><br>
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest due according to the contractual terms of the
loan.&nbsp; Loan impairment is measured based
on the present value of expected cash flows discounted at the loan's effective
interest rate or, as a practical expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral dependent.&nbsp; Payments received on impaired loans are
applied against the recorded investment in the loan.&nbsp; For loans other than those that the Corporation expects repayment
through liquidation of the collateral, when the remaining recorded investment
in the impaired loan is less than or equal to the present value of the expected
cash flows, income is recorded on a cash basis.&nbsp; Impaired loans include loans on a nonaccrual basis and
renegotiated loans.<br>
<br>
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at September
30, 2003 and September 30, 2002:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></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=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recorded
  investment in impaired loans at end <br>
  &nbsp;of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>18,628</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>24,672</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date average balance of impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>21,511</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>25,009</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses related to <br>
  &nbsp;impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,209</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>6,113</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with an allocation of the<br>
  &nbsp;allowance for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  14,453</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>
  15,640</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with no allocation of the&nbsp;allowance<br>
  &nbsp;for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  4,175</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>
  9,032</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date income recorded on impaired loans <br>
  &nbsp;on a cash basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  487</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>
  220</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
Other than those described above, there are no material credits that management
has serious doubts as to the borrower's ability to comply with the present loan
repayment terms.&nbsp; Additionally, the
portfolio is well diversified and as of September 30, 2003, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at September 30, 2003 decreased $6.5 million compared to
2002 levels as nonaccrual loans, past due loans and renegotiated loans
decreased compared to September 30, 2002.&nbsp;
The decrease in nonaccrual loan levels of $6.0 million was primarily due
to decreases in nonaccrual commercial loans.&nbsp;
Nonaccrual loans include two significant credits in both periods.&nbsp; The largest credit ($6.1 million as of
September 30, 2003) carries an 80% guaranty of a U.S. government agency.&nbsp; While a sale of the underlying assets is
pending through bankruptcy court, delays with the <br>
<br>
<br>
34</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
bankruptcy process would result in a delay of the final sale and resolution of
the remaining balance.&nbsp; The second
credit, which was $3.0 million at September 30, 2003, continues to be resolved
through the liquidation of collateral and exercising other remedies.&nbsp; While the timing of final resolution of this
credit is uncertain, management's estimate of the potential loss on this credit
is reserved.<br>
<br>
Past due loans for the 2003 period remained relatively stable to the
corresponding period of 2002 and included decreases in loans secured by 1-4
family residential real estate, which were offset by loans secured by
commercial real estate.&nbsp; Nonperforming
loans as a percent of total loans was 1.25% at September 30, 2003 compared to
1.47% at December 31, 2002, and 1.49% at September 30, 2002, while the
allowance for credit losses as a percent of nonperforming loans was 111.07%,
89.76% and 89.09%, respectively for the same periods.<br>
<br>
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.&nbsp; This process
includes close monitoring of watchlist credits for progress or deterioration,
as well as evaluating the status of significant nonperforming credits and loan
loss adequacy.&nbsp; Credit risk is mitigated
during the loan origination process through the use of sound underwriting
policies and collateral requirements.<br>
<br>
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease portfolios
at each balance sheet date.&nbsp; Management
reviews the adequacy of the allowance on a quarterly basis to ensure that the
provision for credit losses has been charged against earnings in an amount
necessary to maintain the allowance at a level that is appropriate based on
management's assessment of probable estimated losses.&nbsp; The Corporation's methodology for assessing the appropriateness
of the allowance for credit losses consists of several key elements.&nbsp; These elements include a specific allowance
for primary watch list classified loans, a formula allowance based on
historical trends, an additional allowance for special circumstances and an
unallocated allowance.<br>
<br>
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits.&nbsp;
Although management considers the allowance for credit losses to be adequate
based on information currently available, additional allowance for credit loss
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<br>
<br>
<br>
<br>
<br>
35</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
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 that are independently monitored and tested by internal audit and loan
review staff to ensure that the loss estimation model is maintained in
accordance with internal policies and procedures, as well as generally accepted
accounting principles. <br>
<br>
<u>CAPITAL RESOURCES</u><br>
<br>
Equity capital was at $410.0 million at September 30, 2003, an increase of $8.6
million compared to December 31, 2002.&nbsp;
Dividends declared reduced equity by $27.5 million during the first nine
months of 2003.&nbsp; The retained net income
of $13.1 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 distributions as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $804 thousand.&nbsp; Amounts paid
to fund the discount on reinvested dividends reduced equity by $519 thousand during
the first nine months of 2003.&nbsp; The
market value adjustment to securities available for sale decreased equity by
$8.6 million for the period, while the market value adjustment to the interest
rate swap increased equity by $106 thousand.&nbsp;
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $3.4 million during 2003, while the tax benefit
related to the stock options, increased equity by $142 thousand.&nbsp; Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.&nbsp; This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.<br>
<br>
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.&nbsp; The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.&nbsp; In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.<br>
<br>
The Federal Reserve Board has issued risk-based capital adequacy guidelines
that 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>
<br>
36</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>CAPITAL RESOURCES</u> (continued)</font></p>

<p><font size=3 face=Courier><br>
The table below presents the Corporation's capital position at September 30,
2003:</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=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=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;419,450</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>13.1%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>127,674</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&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>455,633</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>14.3&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>255,349</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&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>419,450</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.7&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>144,119</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&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.&nbsp; At September 30,
2003, the Corporation's banking and trust subsidiaries exceeded those
requirements.<br>
<br>
ITEM 3.&nbsp; QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK<br>
<br>
Information appearing in Item 2 of this report under the caption &quot;Interest
Sensitivity&quot; is incorporated herein by reference in response to this item.<br>
<br>
ITEM 4. CONTROLS AND PROCEDURES<br>
<br>
(a) Disclosure controls and procedures.&nbsp;
Within 90 days before filing this report, we evaluated the effectiveness
of the design and operation of our disclosure controls and procedures.&nbsp; Our disclosure controls and procedures are
the controls and other procedures that we designed to ensure that we record,
process, summarize and report in a timely manner the information we must
disclose in reports that we file with or submit to the SEC.&nbsp; Joseph E. O'Dell, our President and Chief
Executive Officer, and John J. Dolan, our Executive Vice President and Chief
Financial Officer, reviewed and participated in this evaluation.&nbsp; Based on this evaluation, Messrs. O'Dell and
Dolan concluded that, as of the date of their evaluation, our disclosure
controls were effective.<br>
<br>
(b) Internal controls.&nbsp; Since the date
of evaluation described above, there have not been any significant changes in
our internal accounting controls or in other factors that could significantly
affect those controls.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
37</font></p>

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

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

<p><font size=3 face=Courier>&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</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  3.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>DEFAULTS
  UPON SENIOR SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  4.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  5.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>OTHER
  INFORMATION</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>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><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  10.1 Supplemental Executive Retirement Plan</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
  31.1 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</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>(b)
  Reports on Form 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Form
  8-K dated July 17, 2003 reporting the Corporation's <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;press release announcing its earnings for
  the three and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;six month periods ended June 30, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Form
  8-K dated July 29, 2003 reporting that the <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporation's subsidiary, First
  Commonwealth Bank, agreed<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to sell two branch offices to Waypoint
  Bank</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Form
  8-K dated August 12, 2003 reporting that the<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporation entered into a definitive
  agreement to acquire<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pittsburgh Financial Corp.</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<br>
<br>
<br>
38<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; November 10, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Joseph
  E. O'Dell, President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; November 10, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>John
  J. Dolan, Executive Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

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



</body>

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{"company-data": {"conformed-name": "FIRST COMMONWEALTH FINANCIAL CORP /PA/", "cik": "0000712537", "assigned-sic": "6021", "irs-number": "251428528", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-11138", "film-number": "03989896"}, "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 September 30, 2003
OR
( )
TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
  the transition period from
to
Commission File Number
0-11242
First Commonwealth Financial
Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
25-1428528
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
22
  North Sixth Street
Indiana, PA  15701
(Address of principal executive offices)
(Zip Code)
724-349-7220
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
October 31, 2003, was 59,377,083.
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......................................................
38
Signatures.............................................................
39
Exhibits and Reports on Form 8K
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
September
  30,
2003
December
  31,
2002
ASSETS
Cash and due
  from banks on demand........................
$
76,584
$
81,114
Interest-bearing
  bank deposits...........................
800
1,973
Securities
  available for sale, at market.................
1,875,994
1,482,771
Securities held
  to maturity, at cost,(Market value $120,157 in
2003 and $204,887 in 2002).............................
114,267
197,838
Loans....................................................
2,597,958
2,609,440
Unearned
  income........................................
(515)
(806)
Allowance
  for credit losses............................
(36,183)
(34,496)
Net
  loans..........................................
2,561,260
2,574,138
Premises and
  equipment...................................
43,508
45,730
Other real
  estate owned..................................
1,698
1,651
Goodwill.................................................
8,131
8,131
Amortizing
  intangibles, net..............................
13
29
Other assets.............................................
137,935
131,368
Total
  assets.........................................
$
4,820,190
$
4,524,743
LIABILITIES
Deposits (all
  domestic):
Noninterest-bearing....................................
$
393,070
$
377,466
Interest-bearing.......................................
2,757,720
2,666,658
Total
  deposits.......................................
3,150,790
3,044,124
Short-term
  borrowings....................................
655,357
469,065
Other
  liabilities........................................
26,472
30,230
Company obligated
  mandatorily redeemable capital securities of
subsidiary trust.......................................
35,000
35,000
Other long-term
  debt.....................................
542,578
544,934
Total
  long-term debt.................................
577,578
579,934
Total
  liabilities....................................
4,410,197
4,123,353
SHAREHOLDERS' EQUITY
Preferred
  stock, $1 par value per share, 3,000,000 shares
authorized, none issued................................
-0-
-0-
Common stock $1
  par value per share, 100,000,000 shares authorized,
62,525,408 shares issued; 59,290,575 and 58,962,543
  shares outstanding at
September 30, 2003 and December 31, 2002 respectively..
62,525
62,525
Additional
  paid-in capital...............................
63,927
64,885
Retained
  earnings........................................
309,241
296,165
Accumulated
  other comprehensive income...................
17,391
25,851
Treasury stock
  (3,234,833 shares at September 30, 2003 and 3,562,869 at
December 31, 2002, at cost)............................
(40,840)
(44,981)
Unearned ESOP
  shares.....................................
(2,251)
(3,055)
Total
  shareholders' equity...........................
409,993
401,390
Total
  liabilities and shareholders' equity...........
$
4,820,190
$
4,524,743
The
accompanying notes are an integral part of these consolidated financial
statements.
3
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
For
  the Quarter
Ended September 30,
For
  the 9 Months
Ended September 30,
2003
2002
2003
2002
Interest Income
Interest
  and fees on loans......
$
40,089
$
44,943
$
123,641
$
135,490
Interest
  and dividends on investments:
Taxable
  interest .............
16,335
21,005
49,940
65,034
Interest
  exempt from Federal
income taxes.................
2,690
2,363
7,900
7,172
Dividends.....................
489
464
1,614
1,457
Interest
  on Federal funds sold..
1
2
3
6
Interest
  on bank deposits.......
1
7
10
26
Total
  interest income.........
59,605
68,784
183,108
209,185
Interest Expense
Interest
  on deposits............
14,659
19,409
46,417
61,512
Interest
  on short-term borrowings..................................
1,708
1,305
4,858
4,572
Interest
  on company obligated
mandatorily redeemable
capital securities of
subsidiary trust..............
832
832
2,494
2,494
Interest
  on other long-term debt
7,417
8,911
22,063
26,305
Total
  interest on long-term debt..............................
8,249
9,743
24,557
28,799
Total
  interest expense........
24,616
30,457
75,832
94,883
Net Interest Income...........
34,989
38,327
107,276
114,302
Provision
  for credit losses.....
3,495
3,103
10,420
9,028
Net interest income after
  provision for
credit losses
31,494
35,224
96,856
105,274
Other Income
Securities
  gains................
166
26
5,621
641
Trust
  income....................
1,342
1,227
3,811
3,782
Service
  charges on deposit
accounts......................
3,447
3,010
9,551
8,449
Gain
  on sale of branches........
3,062
-0-
3,062
-0-
Insurance
  commissions...........
910
1,055
2,555
2,862
Income
  from bank owned life
insurance.....................
1,136
1,186
3,234
3,428
Other
  income....................
3,794
2,897
10,292
8,565
Total
  other income............
13,857
9,401
38,126
27,727
Other Expenses
Salaries
  and employee benefits..
15,163
14,505
45,644
43,915
Net
  occupancy expense...........
2,023
1,668
5,768
4,967
Furniture
  and equipment expense.
2,522
2,391
7,618
7,357
Data
  processing expense.........
688
558
1,836
1,484
Pennsylvania
  shares tax expense.
1,075
969
3,216
2,960
Intangible
  amortization.........
3
8
16
196
Litigation
  settlement (recovery)
-0-
-0-
(610)
8,000
Restructuring
  charges...........
-0-
2,473
-0-
5,589
Other
  operating expenses........
6,531
6,919
20,671
22,081
Total
  other expenses..........
28,005
29,491
84,159
96,549
Income before income taxes....
17,346
15,134
50,823
36,452
Applicable
  income taxes.........
3,511
2,947
10,257
5,670
Net income....................
$
13,835
$
12,187
$
40,566
$
30,782
Average
  Shares Outstanding........
58,950,258
58,521,562
58,808,464
58,342,470
Average
  Shares Outstanding Assuming Dilution
59,376,716
58,862,215
59,139,101
58,734,144
Per Share Data:
Basic
  earnings per share........
$
0.23
$
0.21
$
0.69
$
0.53
Diluted
  earnings per share......
$
0.23
$
0.21
$
0.69
$
0.52
Cash
  dividends per share........
$
0.155
$
0.150
$
0.465
$
0.450
The accompanying notes are an integral part of these
consolidated financial statements.
4
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP
Shares
Total
Shareholders'
Equity
Balance
  December 31, 2001..........
$
62,525
$
66,176
$
288,219
$
8,703
$
(51,431)
$
(4,126)
$
370,066
Comprehensive
  income
Net
  income.......................
-0-
-0-
30,782
-0-
-0-
-0-
30,782
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.....
-0-
-0-
-0-
20,490
-0-
-0-
20,490
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(396)
-0-
-0-
(396)
Total
  other comprehensive income.
-0-
-0-
-0-
20,094
-0-
-0-
20,094
Total
  comprehensive income.........
-0-
-0-
30,782
20,094
-0-
-0-
50,876
Cash
  dividends declared............
-0-
-0-
(26,441)
-0-
-0-
-0-
(26,441)
Decrease
  in unearned ESOP shares...
-0-
-0-
-0-
-0-
-0-
804
804
Discount
  on dividend reinvestment plan purchases
-0-
(476)
-0-
-0-
-0-
-0-
(476)
Treasury
  stock reissued............
-0-
(771)
-0-
-0-
5,002
-0-
4,231
Balance
  at September 30, 2002......
$
62,525
$
64,929
$
292,560
$
28,797
$
(46,429)
$
(3,322)
$
399,060
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, 2002..........
$
62,525
$
64,885
$
296,165
$
25,851
$
(44,981)
$
(3,055)
$
401,390
Comprehensive
  income
Net
  income.......................
-0-
-0-
40,566
-0-
-0-
-0-
40,566
Other
  comprehensive income, net of tax:
Unrealized
  holding gains (losses) on
securities arising during the period.............................
-0-
-0-
-0-
(4,971)
-0-
-0-
(4,971)
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(3,595)
-0-
-0-
(3,595)
Unrealized
  holding gains (losses) on
derivatives used in cash flow hedging
relationship arising during the period.............................
-0-
-0-
-0-
106
-0-
-0-
106
Total
  other comprehensive income.
-0-
-0-
-0-
(8,460)
-0-
-0-
(8,460)
Total
  comprehensive income.........
-0-
-0-
40,566
(8,460)
-0-
-0-
32,106
Cash
  dividends declared............
-0-
-0-
(27,490)
-0-
-0-
-0-
(27,490)
Decrease
  in unearned ESOP shares...
-0-
-0-
-0-
-0-
-0-
804
804
Discount
  on dividend reinvestment plan purchases
-0-
(519)
-0-
-0-
-0-
-0-
(519)
Treasury
  stock reissued............
-0-
(581)
-0-
-0-
4,141
-0-
3,560
Tax
  benefit of stock options.......
-0-
142
-0-
-0-
-0-
-0-
142
Balance
  at September 30, 2003......
$
62,525
$
63,927
$
309,241
$
17,391
$
(40,840)
$
(2,251)
$
409,993
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 9 Months
Ended September 30,
2003
2002
Operating Activities
Net income...............................................
$
40,566
$
30,782
Adjustments to
  reconcile net income to net cash provided by operating
activities:
Provision
  for credit losses ...........................
10,420
9,028
Depreciation
  and amortization..........................
5,651
5,364
Net
  losses (gains) on sales of assets..................
(6,115)
(680)
Net
  gains on sale of branches..........................
(3,051)
-0-
Income
  from increase in cash surrender value of bank owned life insurance
(3,233)
(3,428)
Decrease
  in interest receivable........................
2,536
2,322
Decrease
  in interest payable...........................
(2,570)
(3,124)
Increase
  (decrease) in income taxes payable............
1,053
(2,705)
Change
  in deferred taxes...............................
(2,493)
(374)
Other-net..............................................
(1,013)
3,597
Net
  cash provided (used) by operating activities.....
41,751
40,782
Investing Activities
Transactions
  with securities held to maturity:
Proceeds
  from sales....................................
-0-
-0-
Proceeds
  from maturities and redemptions...............
83,671
64,723
Purchases..............................................
-0-
(15,241)
Transactions
  with securities available for sale:
Proceeds
  from sales....................................
50,634
12,602
Proceeds
  from maturities and redemptions...............
811,639
363,974
Purchases..............................................
(1,263,155)
(343,056)
Proceeds from
  sales of loans and other assets............
108,738
71,698
Acquisition of
  affiliate, net of cash received...........
-0-
(4)
Investment in
  bank owned life insurance..................
-0-
(5,000)
Net decrease
  (increase) in time deposits with banks......
1,172
1,639
Net increase in
  loans....................................
(109,867)
(129,917)
Purchases of
  premises and equipment......................
(3,984)
(4,717)
Net
  cash provided (used) by investing activities.....
(321,152)
16,701
Financing Activities
Repayments of
  other long-term debt.......................
(11,553)
(1,050)
Proceeds from
  issuance of other long-term debt...........
10,000
18,200
Proceeds from
  issuance of company obligated mandatorily redeemable capital
securities of subsidiary trust..........................
-0-
-0-
Discount on
  dividend reinvestment plan purchases.........
(519)
(476)
Dividends paid...........................................
(27,440)
(26,381)
Net increase
  (decrease) in Federal funds purchased.......
21,700
(30,525)
Net increase
  (decrease) in other short-term borrowings...
164,592
(62,630)
Sale of
  branches, net of cash received...................
(21,329)
-0-
Net increase in
  deposits.................................
135,920
40,918
Stock option
  tax benefit.................................
142
-0-
Proceeds from
  sale of treasury stock.....................
3,358
3,402
Net
  cash provided (used) by financing activities.....
274,871
(58,542)
Net
  increase (decrease) in cash and cash equivalents.
(4,530)
(1,059)
Cash and cash
  equivalents at January 1...................
81,114
98,130
Cash and cash
  equivalents at September 30................
$
76,584
$
97,071
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
September 30, 2003
(Unaudited)
NOTE 1 Management Representation
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries ("the
Corporation").  All significant
intercompany transactions and balances have been eliminated.  The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.  The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.  Actual realized amounts could
differ from those estimates.  In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of September 30, 2003
and the results of operations for the three month and nine month periods ended
September 30, 2003 and 2002, and statements of cash flows and changes in
shareholders' equity for the nine month periods ended September 30, 2003 and
2002.  The results of operations for the
three month and nine month periods ended September 30, 2003 and 2002 are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.  These interim
financial statements should be read in conjunction with the Corporation's 2002
Annual Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.  The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.
NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)
2003
2002
Cash
  paid during the first nine months of the year for:
Interest
$
78,402
$
98,007
Income
  Taxes
$
11,555
$
9,010
Noncash
  investing and financing activities:
ESOP
  loan reductions
$
804
$
804
Loans
  transferred to other real estate owned and
repossessed assets
$
3,458
$
4,568
Gross
  increase (decrease) in market value
adjustment to securities available for sale
$
(13,179)
$
30,913
Gross
  increase (decrease) in market value
adjustment of derivative instruments
$
163
$
-0-
Treasury
  stock reissued for 2002 business
combination
$
203
$
830
8
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 3 Comprehensive Income Disclosures
The following table identifies the related tax effects allocated to each
component of other comprehensive income in the Statements of Changes in
Shareholder's Equity: (dollar amounts in thousands)
September
  30, 2003
September
  30, 2002
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Unrealized gains (losses) on securities:
Unrealized holding gains
(losses) arising during
the period
$
(7,648)
$
2,677
$
(4,971)
$
31,523
$
(11,033)
$
20,490
Less: reclassification
adjustment for gains
realized in net income
(5,531)
1,936
(3,595)
(610)
214
(396)
Unrealized gains (losses) on derivatives used in
  cash flow hedging relationships:
Unrealized holding gains
(losses) arising during
the period
163
(57)
106
-0-
-0-
-0-
Total other comprehensive income
$
(13,016)
$
4,556
$
(8,460)
$
30,913
$
(10,819)
$
20,094
NOTE 4 Accounting for Stock Options Granted
In December 2002, the Financial Accounting Standards Board ("FASB")
issued Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure" ("FAS No. 148").  FAS No. 148 amended FASB Statement No. 123
"Accounting for Stock-Based Compensation" ("FAS No. 123")
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.  FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, "Interim Financial
Reporting" ("APB 28"), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.  FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 "Accounting for Stock Issued to
Employees" ("APB 25"). 
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.  Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.
9
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 4 Accounting for Stock Options Granted
(continued)
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.  As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.  No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.
The following table illustrates the effect on net income and earnings per share
if the Corporation had applied the fair value recognition provisions of FAS No.
123 to stock-based employee compensation:
(Dollar
  amounts in thousands,
except per share data)
Three months ended
September 30,
2003
2002
Net
  Income, as reported
$
13,835
$
12,187
Deduct:
  Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax
effects
(338)
(570)
Pro
  forma net income
$
13,497
$
11,617
Earnings
  per share:
Basic
  - as reported
$
0.23
$
0.21
Basic
  - pro forma
$
0.23
$
0.20
Diluted
  - as reported
$
0.23
$
0.21
Diluted
  - pro forma
$
0.23
$
0.20
Average
  Shares Outstanding
58,950,258
59,376,716
58,521,562
58,862,215
Average
  Shares Outstanding Assuming Dilution
(Dollar
  amounts in thousands,
except per share data)
Nine months ended
September 30,
2003
2002
Net
  Income, as reported
$
40,566
$
30,782
Deduct:
  Total stock-based employee compensation
expense determined under fair value based
method for all awards, net of related tax
effects
(1,014)
(1,709)
Pro
  forma net income
$
39,552
$
29,073
Earnings
  per share:
Basic
  - as reported
$
0.69
$
0.53
Basic
  - pro forma
$
0.67
$
0.50
Diluted
  - as reported
$
0.69
$
0.52
Diluted
  - pro forma
$
0.67
$
0.49
Average
  Shares Outstanding
58,808,464
58,342,470
Average
  Shares Outstanding Assuming Dilution
59,139,101
58,734,144
10
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
Note 5 Restructuring Charges
The Corporation incurred restructuring charges of $6,140 thousand during the
second, third and fourth quarters of 2002 in accordance with EITF 94-3.  These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.  The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.  Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies. 
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.  During the first nine months of 2003,
monthly severance payments totaling $2,424 thousand were made, reducing the
outstanding severance liability to $965 thousand at September 30, 2003.  No additional severance accruals or
adjustments were recorded during the first nine months of 2003 related to the
2002 restructuring.
NOTE 6 New Accounting Pronouncements
In July 2002, the FASB issued statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities" ("FAS No.
146").  FAS No. 146 replaced EITF
Issue No. 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring)."  The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.  Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.  Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations.
In November 2002, the FASB issued FASB Interpretation No. 45 ("FIN
45"), "Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others". 
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee,
and the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.  The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.  This
interpretation expands the disclosures to be made by the guarantor in its
financial
11
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE
6 New Accounting Pronouncements
(continued)
statements about its obligation under certain guarantees and requires the
guarantor to recognize a liability for the fair value of an obligation assumed
under a guarantee.  FIN 45 clarifies the
requirements of FASB Statement No. 5 ("FAS No. 5") "Accounting
for Contingencies", relating to guarantees.  In general, FIN 45 applies to contracts or indemnification
agreements that contingently require the guarantor to make payments to the
guaranteed party based on changes in an underlying that is related to an asset,
liability, or equity security of the guaranteed party.  Certain guarantee contracts are excluded
from both the disclosure and recognition requirements of this interpretation,
including, but not limited to, guarantees related to employee compensation,
residual value guarantees under capital lease arrangements, commercial letters
of credit, loan commitments, subordinated interests in special purpose entities
and guarantees of a company's own future performance.  Other guarantees are subject to the disclosure requirements of
FIN 45 but not the recognition provisions and include, among others, a
guarantee accounted for as a derivative instrument under FAS No. 133, a
parent's guarantee of debt owed to a third party by its subsidiary or vice
versa and a guarantee which is based on performance not price.  Guarantees subject to this pronouncement
that have been entered into by the Corporation are disclosed in NOTE 7.  The adoption of FIN 45 did not have a
material impact on the Corporation's financial condition or results of
operations.
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46"), "Consolidation of Variable Interest Entities".  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.  This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.  Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur. 
FIN 46 applied immediately to variable interest entities created after
January 31, 2003.  The effective date of
FIN 46 for variable interest entities created before February 1, 2003 has been
deferred until the end of the first interim or annual period ending after December
15, 2003.  The Corporation is in the
process of reviewing its current business interests in order to determine the
impact of FIN 46 and whether any additional business interests require
consolidation in the Corporation's financial statements.  The adoption of FIN 46 is not expected to
have a material impact on the Corporation's financial condition or results of
operations.
In April 2003, the FASB issued Statement No. 149 "Amendment of Statement
133 on Derivative Instruments and Hedging Activities" ("FAS No.
149").  FAS No. 149 amends and clarifies
accounting for derivative instruments, including certain derivative instruments
embedded in other contracts, and for hedging activities under Statement
133.  In particular, FAS No. 149
clarifies under what circumstances a contract with an initial net investment
meets the characteristic of a derivative and when a derivative
12
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 6 New Accounting Pronouncements
(continued)
contains a financing component that warrants special reporting in the statement
of cash flows.  This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.  The adoption of FAS No. 149 did not have a material impact on the
Corporation's financial condition or results of operations.
In May 2003, the FASB issued Statement No. 150 "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity"("FAS No. 150"). 
FAS No. 150 represents the first phase of the FASB's broader project on
(1) distinguishing between liability and equity instruments and (2) accounting
for instruments that have characteristics of both liabilities and equity.  This statement requires issuers to classify
as liabilities the following three types of freestanding financial instruments:
(1) mandatorily redeemable financial instruments, (2) obligations to repurchase
the issuer's equity shares by transferring assets and (3) certain obligations
to issue a variable number of shares.  A
freestanding financial instrument is one that is entered into separately and
apart from any of the entity's other financial instruments or equity
transactions or is entered in conjunction with some other transaction but can
be legally detached and exercised on a separate basis.  FAS No. 150 is relatively narrow in scope as
it specifies only that certain instruments must be classified as liabilities
but does not include additional guidance on the concept of what constitutes
either a "liability" or "equity".    Entities will continue to apply existing guidance on
determining the balance sheet classification of instruments that do not
specifically fall within the scope of FAS No. 150.  FAS No. 150 applied immediately to financial instruments entered
into or modified after May 31, 2003. 
For all other instruments that exist, this statement went into effect at
the beginning of the first interim period beginning after June 15, 2003.  Adoption of FAS No. 150 did not have a
material impact on the Corporation's financial condition or results of
operations.
As of September 30, 2003, the Corporation had automobile leases with a net
balance of $32.7 million outstanding, a majority of which did not have
individually insured residual values. 
On May 15, 2003 the Securities and Exchange Commission issued Staff
Interpretation Topic D-107, which indicated that, unless lease residuals were
individually insured, no related amount should be considered in minimum lease
payments. Consequently, a majority of automobile leases outstanding at
September 30, 2003 may not qualify as financing leases, and previously issued
financial statements would need to be restated, if material.  The guidance will be effective no later than
for reports issued after the first fiscal quarter beginning after December 15,
2003.  While the Corporation is in the
process of analyzing the impact of this Staff Interpretation, it could cause a
restatement of previously issued financial statements.  Although net income over the life of a lease
treated as a financing lease will be the same as net income over the life of a
lease treated as an operating lease, because of the nature of the timing of
lease income under the two methods, if restatement is required, earlier years
would tend to contain negative adjustments to net income, while later years, as
a lease matures, will tend to produce positive adjustments to net income.
13
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
NOTE 7 Guarantees
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.  The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held orpledged.  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 September 30,
2003:  (Dollar amounts in thousands)
Financial
  standby letters of credit
$
22,913
Performance
  standby letters of credit
$
6,289
The
current notional amounts outstanding above include financial standby letters of
credit of $8,501 thousand and performance standby letters of credit of $895
thousand issued during the first nine months of 2003.  There is currently no liability recorded on the Corporation's
balance sheet related to the above letters of credit.
NOTE 8 Branch Sale
In September 2003, First Commonwealth Bank, a wholly-owned subsidiary of the
registrant sold two of its branch offices. 
Under the terms of the purchase and assumption agreement, First
Commonwealth Bank branches at 15 South Main Street in Chambersburg, PA and 1720
Lincoln Highway East in Guilford Township, PA were sold.  The acquiring bank assumed approximately
$29.3 million of deposit liabilities and purchased approximately $4.4 million
in loans associated with the two offices. 
The transaction generated a pre-tax gain of approximately $3.1 million
which is included in the registrant's consolidated income statement for the
third quarter of 2003.
Note 9 Pending Business Combination
On August 8, the registrant entered into a definitive agreement to acquire
Pittsburgh Financial Corp. ("PFC") a financial holding company
headquartered near Pittsburgh, in Wexford Pennsylvania.  Pittsburgh Financial Corp. is the parent
company of BankPittsburgh with total assets of $372 million, deposits of $181
million and equity of nearly $21 million at September 30, 2003.  BankPittsburgh is a state chartered stock
savings bank headquartered in Pittsburgh, Pennsylvania which conducts business
from seven offices in Allegheny (6) and Butler (1) counties and one loan
production office in downtown Pittsburgh. 
PFC also offers residential and commercial mortgage settlement services
through Pinnacle Settlement Group LLC, an 80% owned subsidiary.  Pittsburgh Financial Corp. shares are traded
on the NASDAQ National Market System under the symbol "PHFC".
14
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2003
(Unaudited)
Note 9 Pending Business Combination (continued)
Under terms of the agreement, the shareholders of Pittsburgh Financial Corp.
can elect to receive $20.00 in cash or an equivalent value of the registrant's
common stock for each PFC share owned, subject to proration as provided in the
definitive agreement to ensure that 40% of the aggregate merger consideration
will be paid in cash and 60% in First Commonwealth common stock.  The definitive agreement was unanimously
approved by the Boards of Directors of both organizations.  The Corporation has received required
regulatory approvals.  In addition, the
merger is subject to approval of PFC shareholders at a special meeting
scheduled for December 5, 2003.  The
transaction has a current market value of $28.4 million.
On a pro-forma basis, as of September 30, 2003, the registrant would have
assets of approximately $5.2 billion and total equity of $427 million.
Note 10 Derivative Instruments
During the third quarter of 2003 the Corporation entered into an interest
rate swap with a notional amount of $25 million which was initiated to hedge
exposure to the variability in the future cash flows derived from adjustable
rate loans.  The interest rate swap will
convert the interest receivables generated by the first $25 million of
principal outstandings of three month LIBOR based adjustable commercial loans
from an adjustable rate to a fixed rate. 
The swap is a traditional pay-floating and receive-fixed interest rate
swap with a three year term.  The
transaction is classified as a cash flow hedge whereby the fair value of the
swap is recorded as an asset or liability and changes in the fair value are
recorded as "other comprehensive income" a component of shareholders'
equity.
15
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
First Nine Months of 2003 as Compared to the
First Nine Months of 2002
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the "Corporation"). 
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and
expectations based on information currently available and may contain the words
"expect," "estimate," "project,"
"anticipate," "should," "intend,"
"probability," "risk," "target," and similar
expressions.  These forward-looking
statements are inherently subject to significant risks and uncertainties,
including but not limited to:  changes
in general economic and financial market conditions, the Corporation's ability
to effectively carry out its business plans, changes in regulatory or
legislative requirements, changes in competitive conditions and continuing
consolidation of the financial services industry.  Although management believes the expectations reflected in such
forward-looking statements are reasonable, actual results could differ
materially.  Readers are cautioned not
to place undue reliance on these forward-looking statements, which reflect management's
analysis only as of the date hereof. 
The Corporation undertakes no obligation to publicly revise or update
these forward-looking statements to reflect events or circumstances that arise
after the date hereof.
Net income for the first nine months of 2003 was $40.6 million reflecting an
increase of $9.8 million compared to 2002 results of $30.8 million.  The change in net income for the 2003 period
reflected decreases in non-interest expenses primarily related to nonrecurring
expenses included in the 2002 period, an increase in security gains for the
2003 period compared to the corresponding period of 2002 and a gain on the sale
of two branches in the 2003 period.  Net
income for the 2002 period included an $8.0 million litigation settlement ($5.2
million net of tax) while the 2003 period included a partial recovery from
insurance for that claim in the amount of $610 thousand ($397 thousand net of
tax).  This settlement related to a
lender liability action filed in 1994 against one of the Corporation's
subsidiary banks and followed an adverse pre-trial judgment by the trial judge
on procedural grounds.  The 2002 period
also included $5.6 million ($3.6 million after-tax) of nonrecurring
restructuring charges associated with the merger of the charters of the
Corporation's two commercial banks (First Commonwealth Bank and Southwest Bank)
and the adoption of a new common brand and identity for all financial services
subsidiaries.  These restructuring
charges included $4.2 million related to separation pay for those employees
whose positions were eliminated or chose not to relocate as a result of the
merger of the two banks, which was completed in the fourth quarter of
2002.  The first nine months of 2003
included securities gains of $5.6 million ($3.6 million net of tax) compared to
securities gains of $641 thousand ($417 thousand net of tax) for the first nine
months of 2002.  In addition, the first
nine months of 2003 included a gain on the sale of two branches in the amount
of $3.1 million ($2.0 million net of taxes).
16
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine
Months of 2003 as Compared to the First Nine Months of 2002
(continued)
The first nine months of 2003 also included decreases in net interest income,
which continues to be impacted by low interest rates.  During this unparalleled period of low interest rates the
Corporation, as well as the financial services industry in general, has been
challenged by margin compression, as the cost of funds has not declined in the
same magnitude or at the same pace as asset yields.
The decrease in net interest income was partially offset by increases in
non-interest income for the first nine months of 2003 compared to the first
nine months of 2002.  Diluted earnings
per share was $0.69 for the first nine months of 2003 compared to $0.52 for the
first nine months of 2002.
The following is an analysis of the impact of changes in net income on diluted
earnings per share:
Net
  income per share, prior year
$
0.52
Increase
  (decrease) from changes in:
Net
  interest income
(0.13)
Provision
  for credit losses
(0.02)
Security
  transactions
0.08
Service
  charges on deposits
0.02
Gain
  on sale of branches
0.05
Insurance
  commissions
(0.01)
Other
  income
0.03
Salaries
  and employee benefits
(0.02)
Net
  occupancy expense
(0.01)
Data
  processing expense
(0.01)
Litigation
  settlement
0.15
Restructuring
  charges
0.10
Other
  operating expenses
0.02
Applicable
  income taxes
(0.08)
Net
  income per share
$
0.69
Return on average assets was 1.16% and return on average equity was 13.26% for
the first nine months of 2003 compared to 0.90% and 10.58%, respectively, for
the first nine months of 2002.
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.  Net interest income
declined $7.0 million for the first nine months of 2003 compared to the first
nine months of 2002, primarily as earning asset yields declined faster than
funding costs.  Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) was 3.52% for the nine months of 2003 compared to 3.79% for the nine
months of 2002.  Continued low or
declining interest rates would tend to further strain net interest income due
to low reinvestment rates and accelerated prepayments of certain loans and
investments.
17
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine Months of 2003 as Compared to the
First Nine Months of 2002
(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)
2003 Change From 2002
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
(16)
$
(12)
$
(4)
Securities
(14,209)
2,682
(16,891)
Federal
  funds sold
(3)
-0-
(3)
Loans
(11,849)
(153)
(11,696)
Total
  interest income
(26,077)
2,517
(28,594)
Interest-bearing
  liabilities:
Deposits
(15,095)
156
(15,251)
Short-term
  borrowings
286
2,461
(2,175)
Long-term
  debt
(4,242)
(4,188)
(54)
Total
  interest expense
(19,051)
(1,571)
(17,480)
Net
  interest income
$
(7,026)
$
4,088
$
(11,114)
Interest
and fees on loans declined $11.8 million for the first nine months of 2003
compared to 2002 levels as loan yields declined in the lower interest rate
environment.  $11.7 million of the
decline in interest and fees on loans was due to declining yields.  The total tax-equivalent yield on loans for
the first nine months of 2003 was 6.52%, 7.17% for the first nine months of
2002.  The largest decreases in interest
income due to rate changes were noted in commercial loans and installment
loans.  Average loans for the first nine
months of 2003 rose $33.9 million compared to averages for the first nine
months of 2002 as increases in commercial loans, municipal loans and
installment loans were partially offset by decreases in average mortgage loans
and leases.  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 was one of the top small
business lenders in Pennsylvania during the past two years.  The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.  Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.  The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.  The Corporation has begun to retain fixed rate mortgages with
maturities of 15 years or less and all adjustable rate mortgages.
18
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
Interest income on investments declined $14.2 million for the first nine months
of 2003 compared to the first nine months of 2002 reflecting decreases due to
interest rates of $16.9 million which were partially offset by increases due to
investment volumes of $2.7 million.  The
total tax-equivalent yield on investments was 4.77% for the first nine months
of 2003 compared to 6.06% for the same period of 2002.  Declines in investment interest income due
to rate were largely comprised of decreases due to U.S. government agency securities
of $15.0 million and decreases due to corporate bonds of $1.2 million.  Yields on U.S. government agency securities
decreased 166 basis points (1.66%) for the 2003 period compared to the
corresponding period of 2002, while yields on corporate bonds decreased 64
basis points (0.64%) over the same time periods.  Increases in investment interest income due to volume were
comprised of increases due to U.S. government agency securities of $5.2 million
which were partially offset by decreases due to asset backed securities of $3.4
million.  Average investment securities
for the first nine months of 2003 included increases in U.S. government
agencies of $117.0 million and decreases in average asset backed securities of
$73.8 million compared to 2002 averages over the same period.
Interest expense on deposits dropped $15.1 million for the first nine months of
2003 compared to the same period of 2002 due primarily to decreases in interest
rates.  Deposit costs were 1.97% for the
first nine months of 2003 compared to 2.63% for the first nine months of
2002.  The rate on savings deposits fell
47 basis points (0.47%) resulting in a decrease to interest expense of $4.2
million for the first nine months of 2003 compared to the first nine months of
2002.  The rate on time deposits for
2003 also declined, down 82 basis points (0.82%) compared to 2002 levels,
resulting in a decrease to interest expense of $11.1 million for the first nine
months of 2003.  The Corporation's deposit
mix also changed for the first nine months of 2003 as clients registered a
preference for savings deposits during continuing economic uncertainties.  Average savings deposits increased $87.2
million for 2003 compared to 2002 averages while average time deposits dropped
$59.6 million over the same time frame. 
During its management of deposit levels and mix, the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.
Interest expense on short-term borrowings increased $286 thousand for the first
nine months of 2003 compared to the same period in 2002 as decreases in
interest expense due to rate of $2.2 million were, for the most part, offset by
increases in interest expense due to volume of $2.5 million compared to 2002
levels.  The cost of short-term
borrowings for the 2003 period decreased by 58 basis points (0.58%) compared to
2002 costs of 1.84%. The average balance of short-term borrowings increased by
$182.5 million for the first nine months of 2003 over averages for the same
period in 2002.  The increase in
short-term borrowings is due in part to $100 million of long-term debt that
matured during the fourth quarter of 2002
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 Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
and was replaced with short-term borrowings. 
In addition, the increase in short-term borrowings can be attributed to
the pre-investment strategy implemented during the second quarter of 2003,
which is described in the "Interest Sensitivity" section of this
report.
Interest expense on long-term debt decreased $4.2 million for the first nine
months of 2003 compared to the corresponding period of 2002, primarily as a
result of volume decreases.  Average
long-term debt for the nine months of 2003 decreased by $98.6 million compared
to 2002 averages.
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.  The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.  The provision for credit losses was $10.4 million
for the nine months of 2003 compared to $9.0 million for the nine months of
2002.  Net charge-offs against the
allowance for credit losses were $8.7 million for the first nine months of 2003
compared to $8.4 million for the same period of 2002.  Net charge-offs as a percent of average loans outstanding were
0.33% for the first nine months of 2003 and 0.32% for the first nine months of
2002.  The provision for credit losses
as a percent of net charge-offs was 119.32% at September 30, 2003 compared to 107.59%
at September 30, 2002.  Management
continues to gather additional data related to its loan portfolio to make sure
material trends and factors are considered in management's evaluation of the
adequacy of the allowance for credit losses. 
See the "Credit Review" section for any 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 Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
nine month periods ended September 30, 2003 and 2002:
2003
2002
(amounts in thousands)
Balance
  January 1,
$
34,496
$
34,157
Loans
  charged off:
Commercial,
  financial and agricultural
3,307
4,633
Real
  estate-construction
384
3
Real
  estate-commercial
978
349
Real
  estate-residential
2,688
1,627
Loans
  to individuals
2,548
3,081
Lease
  financing receivables
260
307
Total
  loans charged off
10,165
10,000
Recoveries
  of previously charged off loans:
Commercial,
  financial and agricultural
925
1,086
Real
  estate-construction
0
0
Real
  estate-commercial
0
0
Real
  estate-residential
16
16
Loans
  to individuals
491
502
Lease
  financing receivables
0
5
Total
  recoveries
1,432
1,609
Net
  charge offs
8,733
8,391
Provision
  charged to operations
10,420
9,028
Balance
  September 30,
$
36,183
$
34,794
Net
securities gains were $5.6 million during the first nine months of 2003
compared to $641 thousand for the first nine months of 2002.  Securities gains during the 2003 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $7.3 million and fixed rate corporate bonds classified as securities
"available for sale" with book values of $34.5 million.  The corporate bonds sold during 2003 had an
average remaining life of one year and the proceeds were reinvested in
adjustable rate trust preferred securities with maturities of 30 years and
mortgage backed securities with an average life of 3.6 years.  This reinvestment strategy was initiated to partially
mitigate the Corporation's exposure to low and declining interest rates.  Securities gains during the 2002 period
resulted primarily from the sale of Pennsylvania bank stocks, U.S. treasury
securities and fixed rate corporate bonds classified as securities
"available for sale".
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 Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
Trust income was relatively stable for the first nine months of 2003 compared
to the first nine months of 2002. 
Although fee revenue continues to be negatively impacted by low market
values, the enhanced referral programs and integrated growth plans for
financial affiliates that have been initiated have helped to offset this
trend.  The Corporation's continued
success in building relationships with commercial clients provides fee based
affiliates with additional sales opportunities through the "Total
Solutions Financial Management" ("TSFM") process.  This strategy combines products, services
and professional staff from the Corporation's trust, insurance, financial
advisory and banking affiliates and partners them in providing comprehensive
financial services offerings.
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $1.1 million for the first nine months of
2003 compared to the corresponding period of 2002.  Increases in insufficient funds fees "NSF" of $1.6
million for the first nine months of 2003 were partially offset by decreases in
maintenance fees on deposit accounts of $321 thousand compared to 2002
levels.  Management strives to implement
reasonable fees for services and closely monitors collection of those fees.
The 2003 period included a $3.1 million gain on the sale of two branches.  The gain occurred in the third quarter of
2003 as First Commonwealth Bank, a wholly-owned subsidiary of the registrant
sold two of its branch offices.  The
branches were located at 15 South Main Street in Chambersburg, PA and 1720
Lincoln Highway East in Guilford Township, PA. 
The sale included $29.2 million in deposit liabilities and $4.4 million
in loans associated with the two offices.
Insurance commissions fell $307 thousand for the 2003 period as decreases in
annuity commissions were larger than the increases that were generated in all
other insurance categories.  As part of
the previously discussed TSFM process, the Corporation's insurance subsidiary
will continue to have expanded opportunities to meet the insurance needs of
commercial clients.  In addition, the
Corporation has developed "FOCUS" a financial planning tool designed
to help clients prioritize and assess their financial needs.  The "FOCUS" concept results in a
systematic approach covering a wide range of personal financial goals including
appropriate insurance coverage.
Other income for the first nine months of 2003 rose $1.7 million from the $8.6
million reported in the first nine months of 2002.  Other income for the first nine months of 2003 included increases
in STAR interchange fees and merchant discount income of $671 thousand and $670
thousand, respectively, versus 2002 results. 
Gains on the sale of residential mortgage loans including the sale of
the related servicing rights increased by $467 thousand for the first nine
months of 2003 versus 2002.  The
increases in other income for the 2003 period compared to 2002 were partially
offset by decreases in debit card interchange fees and gains on sale of
foreclosed property.
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 Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
Noninterest expense was $84.2 million for the first nine months of 2003
reflecting a decrease of $12.3 million from the 2002 level of $96.5 million,
primarily reflecting the effects of the previously mentioned litigation
settlement and restructuring charges included in 2002 costs.  The 2002 period included the $8.0 million
litigation charge while the 2003 period included a $610 thousand recovery from
insurance coverage related to the settlement. 
The 2002 period also included a $5.6 million restructuring charge
related to employee separation pay and costs related to merging the Corporation's
two subsidiary banks into one charter.
Employee costs were $45.6 million for the first nine months of 2003,
representing an increase of $1.7 million over 2002 levels.  Salary costs for the first nine months of
2003 increased $693 thousand or 2.04% compared to 2002 levels of $34.0 million.  Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002. 
These staffing reductions were part of the corporate restructuring
initiative that also provided severance benefits to affected employees.  Severance costs were expensed as incurred
during 2002 while monthly cash payments for some individuals continue during
2003.  Employee benefit costs rose $1.0
million or 10.5% for the first nine months of 2003 with the largest increase
being hospitalization costs, which were up $822 thousand or 23.0%.  The Corporation continues to evaluate its
current menu of employee benefits to provide a competitive benefits package
while also managing costs.
Net occupancy expense increased $801 thousand for the first nine months of 2003
and included increases in building repairs and maintenance, net rental expense
and utilities compared to 2002 costs. 
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.  The 2003 period also included an increase in the amortization of
the purchase accounting adjustments related to premises of $340 thousand over
the 2002 period.  An adjustment of $291
thousand was taken during the 2003 period for the write off of the remaining
purchase accounting adjustment for three branch offices that were closed during
the third quarter.  These branch offices
were closed and their clients are served at nearby existing branch
offices.  The Corporation continues to
actively evaluate its branch delivery network to optimize client service in
existing branch offices and to continue expansion into growth markets.  The execution of these initiatives may
continue to impact occupancy and other expenses in future periods.
Amortization of core deposit intangibles declined by $180 thousand for the
first nine months of 2003 compared to 2002 amortization as amounts related to
certain acquisitions became fully amortized during 2002.
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 Nine Months of 2003 as Compared to the
First Nine Months of 2002
(continued)
Other operating expenses for the 2003 period were $20.7 million reflecting a
decrease of $1.4 million (6.4%) from the 2002 amount of $22.1 million.  The first nine months of 2003 included
decreases in loss on sale of assets (primarily leased vehicles), other
professional fees and telephone expenses of $278 thousand, $1.3 million and
$387 thousand, respectively compared to 2002 costs.  Directors' fees for the 2003 period reflected decreases of $379
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002. Legal fees were also $281 thousand lower
in the first nine months of 2003 compared to the first nine months of 2002.  The first nine months of 2003 included an
increase in charge card interchange charges of $576 thousand compared to the
first nine months of 2002.
Income tax expense increased $4.6 million for the first nine months of 2003
compared to the first nine months of 2002. 
The 2002 period included a $2.8 million tax effect related to the $8.0
million litigation settlement recorded during 2002 as well as a $2.8 million
tax effect related to the 2002 restructuring charges.  The Corporation's effective tax rate was 20.2% for the first nine
months of 2003 compared to 15.6% for the corresponding period of 2002.
Three Months Ended September 30, 2003 as
Compared to the Three Months Ended
September
30, 2002
Net income was $13.8 million for the third quarter of 2003 reflecting an
increase of $1.6 million compared to 2002 results of $12.2 million. The change
in net income for the 2003 period reflected decreases in non-interest expenses
primarily related to nonrecurring expenses included in the 2002 period and a
gain on the sale of two branches in the 2003 period.  Restructuring charges of $2.5 million ($1.6 million net of tax)
were included in results of operations for the third quarter of 2002.  The 2003 period included a gain of $3.1
million ($2.0 million net of taxes) related to the sale of two branches.
Net interest income for the third quarter of 2003 reflected a decrease compared
to the amount reported for the corresponding period of 2002. The decrease in
net interest income was partially offset by increases in non-interest income
for the 2003 quarter compared to the 2002 quarter.  Basic and diluted earnings per share were $0.23 for the third
quarter of 2003 compared to $0.21 for the third quarter of 2002.  Return on average assets was 1.14% and
return on average equity was 13.63% for the third quarter of 2003 compared to
1.06% and 12.11%, respectively, for the third quarter of 2002.
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 September 30, 2003 as
Compared to the Three Months Ended
September
30, 2002
(continued)
Net interest income for the third quarter of 2003 of $35.0 million represented
a decrease of $3.3 million compared to the third quarter of 2002.  Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2003
period was 3.31% reflecting a decrease of 47 basis points (0.47%) from 3.78%
reported in 2002 as asset yields declined more than the cost of funds.
Interest and fees on loans for the three months ended September 30, 2003
decreased $4.9 million compared to the three months ended September 30, 2002,
primarily as a result of rate decreases, most notably for variable rate
commercial loans.  The total
tax-equivalent yield on loans for the third quarter of 2003 was 6.35%
representing a decrease of 70 basis points (0.70%)compared to yields for the
third quarter of 2002.  Average loans
for the third quarter of 2003 decreased $7.9 million compared to averages for
the third quarter of 2002 and included deceases in average residential mortgage
loans and leases which were partially offset by increases in commercial loans,
municipal loans, installment loans and home equity loans.
Interest income on investments for the three months ended September 30, 2003
was $19.5 million, reflecting a decrease of $4.3 million compared to the three
months ended September 30, 2002.  The
total tax equivalent yield on investments was 4.33% for the third quarter of
2003 compared to 5.94% for the third quarter of 2002.  Changes in investment income due to rate totaled $7.6 million for
the 2003 period as overall interest rates were lower than in the prior
year.  Rate decreases during 2003 were
slightly offset by volume increases, most notably, volume increases for U.S.
government agency securities and municipal investments. Average investments
increased by $248.7 million for the third quarter of 2003 compared to averages
for the third quarter of 2002.
Interest on deposits dropped $4.8 million for the three months ended September
30, 2003 compared to the three months ended September 30, 2002 as both rates
and volumes declined for the 2003 period. 
Interest expense on savings reflected decreases due to rate of $1.5
million for the 2003 period as savings costs fell from 1.05% in 2002 to 0.58%
in 2003.  Interest on time deposits
reflected decreases due to rate of $1.6 million and decreases due to volume of
$1.9 million for the third quarter of 2003 compared to the third quarter of
2002.  The cost of time deposits was
3.32% for 2003 compared to 4.02% for 2002. 
Average time deposits were $1,527.8 million for 2003 compared to
$1,607.6 million for the corresponding period of 2002, reflecting a decrease of
$79.8 million.
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 September 30, 2003 as
Compared to the Three Months Ended
September
30, 2002
(continued)
Interest expense on short-term borrowings rose for the third quarter of 2003
compared to the third quarter of 2002 as increases in interest expense due to
volume were partially offset by decreases in interest expense due to rate.  Average short-term borrowings increased
$326.7 million for the third quarter of 2003 compared to 2002 averages for the
same period, due in part to $100 million of long-term debt maturing in the
fourth quarter of 2002 that was rolled into short-term borrowings.  The largest portion of the additional
increase in short-term borrowings can primarily be attributed to the pre-investment
strategy implemented during the second quarter of 2003, which is described in
the "Interest Sensitivity" section of this report.  Interest expense on long-term debt for the
three months ended September 30, 2003 fell $1.5 million from $9.7 million
reported for the three months ended September 30, 2002 primarily as a result of
volume decreases.  Average long-term
debt was $102.9 million lower in the third quarter of 2003 compared to averages
for the third quarter of 2002.
The provision for credit losses was $3.5 million for the three months ended
September 30, 2003 compared to $3.1 million for the three months ended
September 30, 2002.  Net charge-offs for
the third quarter of 2003 were $2.9 million, an increase of $305 thousand from
net charge-offs for the third quarter of 2002.
Net securities gains were $166 thousand for the third quarter of 2003 compared
to securities gains of $26 thousand for the third quarter of 2002.  The 2003 period included gains that were
primarily from the sale of Pennsylvania bank stocks and municipal securities
with book values of $615 thousand and $6.1 million, respectively.  The 2002 period included gains from the call
of municipal securities classified as "held to maturity" with book
values of $3.4 million.
Service charges on deposits increased by $437 thousand for the three months
ended September 30, 2003 compared to the three months ended September 30,
2002.  This increase is due in part to
increases in insufficient funds fees "NSF" for the third quarter of
2003 compared to 2002 levels.
Other income for the third quarter of 2003 rose $897 thousand from the $2.9
million reported for the third quarter of 2002.  Other income for the 2003 period included increases in merchant
discount income of $240 thousand versus 2002 results.  This increase for the 2003 period was partially offset by
decreases in ATM surcharges and sold mortgage servicing fees.
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 September 30, 2003 as
Compared to the Three Months Ended
September
30, 2002
(continued)
Total noninterest expense for the three months ended September 30, 2003 was
$28.0 million reflecting a decrease of $1.5 million from the $29.5 million that
was reported for the corresponding period of 2002.  The decrease in 2003 resulted primarily from the previously
discussed restructuring charges of $2.5 million that were included in the 2002
period.  Employee costs were $15.2
million for the third quarter of 2003, representing an increase of $658
thousand over 2002 levels.  Salary costs
for the three months of 2003 increased by 3.1% compared to 2002 levels.  Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002. 
Employee benefit costs rose $305 thousand or 9.7% for the third quarter
of 2003 with the largest increase being hospitalization costs, which were up
$280 thousand or 23.4% compared to 2002 levels.
Net occupancy expense increased $355 thousand for the three months ended
September 30, 2003 compared to the three months ended September 30, 2002.  The increases in 2003 were primarily due to
increases in building repairs and maintenance of $57 thousand and increases in
the amortization of the purchase accounting adjustments related to premises of
$290 thousand over the 2002 period.  An
adjustment of $291 thousand was taken during the 2003 period for the write off
of the remaining purchase accounting adjustment for three branches that were
closed during the third quarter.
Other operating expenses for the third quarter of 2003 were $6.5 million
reflecting a decrease of $388 thousand from the 2002 amount of $6.9
million.  The most notable decreases in
other operating expenses for the third quarter of 2003 compared to the third
quarter of 2002 occurred in other professional fees, fees related to collection
and repossession activities and loss on sale of assets which decreased by $478
thousand, $116 thousand and $107 thousand, respectively.  Other operating expenses for the third quarter
of 2003 were also positively impacted by reductions in telephone costs due in
part to active management of both voice and data line expenses by the
Corporation's data processing and technology affiliate.  The three months ended September 30, 2003
included increases in charge card interchange costs and PA sales tax compared
to the three months ended September 30, 2002. 
In addition, increases of $235 thousand were reflected in contribution
expenses in the 2003 period compared to 2002. 
The increase was due to the contribution of three consolidated branch
buildings in the 2003 period to local municipalities.  The customer service of these three branch offices was
consolidated into nearby existing branch offices during the third quarter of
2003.
Income tax expense increased $564 thousand for the third quarter of 2003
compared to the third quarter of 2002 primarily as a result of increases in
income before taxes of $2.2 million over 2002 levels.  Tax expense for 2002 included the $866 thousand tax effect related
to the 2002 restructuring charges.  Tax
expense for the third quarter of 2003 was positively impacted by an increase in
tax-free municipal income compared to 2002 levels.  The Corporation's effective tax rate was 20.2% for the third
quarter of 2003 compared to 19.5% for the corresponding period of 2002.
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 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 which comply
with regulatory requirements.  The
policy also includes a liquidity contingency plan to address funding needs to
maintain liquidity under a variety of business conditions.  The Corporation's liquidity position is
monitored by the Asset/Liability Management Committee ("ALCO").
At September 30, 2003 total earning assets were $4,588.5 million, up from the
$4,291.2 million recorded at December 31, 2002.  Net loans decreased $12.9 million for the first nine months of
2003.  The 2003 period included
increases in commercial loans, municipal loans and loans to individuals of
$38.5 million, $11.7 million and $22.1 million, respectively, over 2002
year-end levels.  These increases were
offset by decreases of $63.5 million in residential real estate loans, due in
part to the continued run-off of the existing portfolio and sale of new loan
production as the Corporation continues to change its loan mix, and decreases
of $14.4 million in the Corporation's auto lease portfolio as the Corporation
has discontinued its automobile leasing activities.  The 2003 period also reflected decreases in construction loans of
$8.6 million over year-end 2002 levels. 
Investment securities increased $309.7 million for the first nine months
of 2003 due in part to a $150 million pre-investment strategy that is described
in the "Interest Sensitivity" section of this report.
28
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
Total deposits increased $106.7 million for the first nine months of 2003.  This included increases in total savings
deposits of $119.6 million and demand deposits of $15.6 million compared to
year-end 2002.  These increases were
partially offset by decreases in time deposits of $28.6 million.  Included in time deposits for the first nine
months of 2003 were $100 million of brokered deposits with a weighted average
term of 27 months.  Proceeds from the
issuance of brokered deposits were utilized to pay down short-term borrowings
during the first quarter of 2003. 
Short-term borrowings increased $186.3 million during the 2003 period to
$655.4 million compared to $469.1 million at December 31, 2002.  Short-term borrowings of $150 million were
used to fund the previously mentioned pre-investment strategy.
Marketable securities that the Corporation holds in its investment portfolio
are an additional source of liquidity. 
These securities are classified as "securities available for
sale" and while the Corporation does not have specific intentions to sell
these securities, they have been designated as "available for sale"
because they may be sold for the purpose of obtaining future liquidity, for
management of interest rate risk or as part of the implementation of tax
management strategies.  As of September
30, 2003, securities available for sale had an amortized cost of $1,849.4
million and an approximate fair value of $1,876.0 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, may be helpful.
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.  If interest-sensitive assets
("ISA") exceed interest-sensitive liabilities ("ISL")
during the prescribed time period, a positive gap results.  Conversely, when ISL exceed ISA during a
time period, a negative gap results.
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 $729.9 million or 15.14% of total assets at September 30, 2003.  A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period.  A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.  In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when
interest rates rise, a negative gap should tend to affect earnings negatively.
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.  The primary components of ISL include maturing
certificates of deposit, money market deposits, savings deposits, NOW accounts
and short-term borrowings.
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of September
30, 2003, and December 31, 2002 (dollar amounts in thousands):
September
  30, 2003
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,010,976
$
171,061
$
297,170
$
1,479,207
Investments
226,555
174,837
224,378
625,770
Other interest-earning assets
800
0
0
800
Total interest-sensitive assets
1,238,331
345,898
521,548
2,105,777
Certificates of deposit
269,702
247,054
368,993
885,749
Other deposits
1,292,168
0
0
1,292,168
Borrowings
655,324
1,102
1,355
657,781
Total interest-sensitive liabilities
2,217,194
248,156
370,348
2,835,698
Gap
$
(978,863)
$
97,742
$
151,200
$
(729,921)
ISA/ISL
0.56
1.39
1.41
0.74
Gap/Total assets
20.31%
2.03%
3.14%
15.14%
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, 2002
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
962,398
$
157,172
$
295,273
$
1,414,843
Investments
292,206
162,578
262,287
717,071
Other interest-earning assets
1,973
0
0
1,973
Total interest-sensitive assets
1,256,577
319,750
557,560
2,133,887
Certificates of deposits
354,625
170,687
263,882
789,194
Other deposits
1,172,538
0
0
1,172,538
Borrowings
469,735
905
1,483
472,123
Total interest-sensitive liabilities
1,996,898
171,592
265,365
2,433,855
Gap
$
(740,321)
$
148,158
$
292,195
$
(299,968)
ISA/ISL
0.63
1.86
2.10
0.88
Gap/Total assets
16.36%
3.27%
6.46%
6.63%
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 200 basis point (2.00%) movement upward or downward which
cannot result in more than a 5.0% change in either direction in net interest
income when compared to the base case. 
The analysis at September 30, 2003 indicated that a 200 basis point
(2.00%) increase in interest rates would increase net interest income 271 basis
points (2.71%) above the base case scenario and a 200 basis point (2.00%)
decline in interest rates would decrease net interest income by 546 basis
points (5.46%) below the base case scenario, over the next twelve months.  While the 200 basis points (2.00%) declining
rate scenario currently exceeds the -5.00% policy limit by 46 basis points
(0.46%), it is recognized by the corporation that this declining rate scenario
is unrealistic in the current rate environment with the federal funds rate at
only 1.00%.
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 Corporation's senior management
establishes ALCO strategies.
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003.  The swap has a
three-year maturity and involves hedging adjustable LIBOR based commercial
loans with a receive-fixed interest rate swap of $25 million notional
amount.  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 values of certain assets and
liabilities.
To minimize its exposure to falling interest rates, the Corporation implemented
a pre-investment strategy during the second quarter of 2003 whereby a portion
of the cash flows from securities expected to mature or repay within four to
six months were reinvested before their maturity or repayment dates by
utilizing $150 million of short-term borrowings as an interim funding
source.  This strategy was implemented
to lock in current reinvestment rates to prevent further yield decreases as
interest rates continue to fall and should have an overall positive impact on
investment yields.
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.  Past due loans are those which
were contractually past due 90 days or more as to interest or principal
payments but are well secured and in the process of collection.  Renegotiated loans are those loans which
terms have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.
At September 30,
2003
2002
(amounts in thousands)
Nonperforming
  Loans
:
Loans
  on nonaccrual basis
$
18,430
$
24,463
Past
  due loans
13,949
14,385
Renegotiated
  loans
198
209
Total
  nonperforming loans
$
32,577
$
39,057
Other
  real estate owned
$
1,698
$
1,662
Loans
  outstanding at end of period
$
2,597,443
$
2,617,465
Average
  loans outstanding (year-to-date)
$
2,630,009
$
2,596,081
Nonperforming
  loans as percent of total loans
1.25%
1.49%
Provision
  for credit losses
$
10,420
$
9,028
Net
  charge-offs
$
8,733
$
8,391
Net
  charge-offs as a percent of average loans outstanding
0.33%
0.32%
Provision
  for credit losses as a percent of net charge-offs
119.32%
107.59%
Allowance
  for credit losses as a percent of average loans outstanding
1.38%
1.34%
Allowance
  for credit losses as a percent of end-of-period loans outstanding
1.39%
1.33%
Allowance
  for credit losses as a percent of nonperforming loans
111.07%
89.09%
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 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 September
30, 2003 and September 30, 2002:
2003
2002
(amounts in thousands)
Recorded
  investment in impaired loans at end
of period
$
18,628
$
24,672
Year
  to date average balance of impaired loans
$
21,511
$
25,009
Allowance
  for credit losses related to
impaired loans
$
5,209
$
6,113
Impaired
  loans with an allocation of the
allowance for credit losses
$
14,453
$
15,640
Impaired
  loans with no allocation of the allowance
for credit losses
$
4,175
$
9,032
Year
  to date income recorded on impaired loans
on a cash basis
$
487
$
220
Other than those described above, there are no material credits that management
has serious doubts as to the borrower's ability to comply with the present loan
repayment terms.  Additionally, the
portfolio is well diversified and as of September 30, 2003, there were no
significant concentrations of credit.
Nonperforming loans at September 30, 2003 decreased $6.5 million compared to
2002 levels as nonaccrual loans, past due loans and renegotiated loans
decreased compared to September 30, 2002. 
The decrease in nonaccrual loan levels of $6.0 million was primarily due
to decreases in nonaccrual commercial loans. 
Nonaccrual loans include two significant credits in both periods.  The largest credit ($6.1 million as of
September 30, 2003) carries an 80% guaranty of a U.S. government agency.  While a sale of the underlying assets is
pending through bankruptcy court, delays with the
34
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
bankruptcy process would result in a delay of the final sale and resolution of
the remaining balance.  The second
credit, which was $3.0 million at September 30, 2003, continues to be resolved
through the liquidation of collateral and exercising other remedies.  While the timing of final resolution of this
credit is uncertain, management's estimate of the potential loss on this credit
is reserved.
Past due loans for the 2003 period remained relatively stable to the
corresponding period of 2002 and included decreases in loans secured by 1-4
family residential real estate, which were offset by loans secured by
commercial real estate.  Nonperforming
loans as a percent of total loans was 1.25% at September 30, 2003 compared to
1.47% at December 31, 2002, and 1.49% at September 30, 2002, while the
allowance for credit losses as a percent of nonperforming loans was 111.07%,
89.76% and 89.09%, respectively for the same periods.
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.  This process
includes close monitoring of watchlist credits for progress or deterioration,
as well as evaluating the status of significant nonperforming credits and loan
loss adequacy.  Credit risk is mitigated
during the loan origination process through the use of sound underwriting
policies and collateral requirements.
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease portfolios
at each balance sheet date.  Management
reviews the adequacy of the allowance on a quarterly basis to ensure that the
provision for credit losses has been charged against earnings in an amount
necessary to maintain the allowance at a level that is appropriate based on
management's assessment of probable estimated losses.  The Corporation's methodology for assessing the appropriateness
of the allowance for credit losses consists of several key elements.  These elements include a specific allowance
for primary watch list classified loans, a formula allowance based on
historical trends, an additional allowance for special circumstances and an
unallocated allowance.
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits. 
Although management considers the allowance for credit losses to be adequate
based on information currently available, additional allowance for credit loss
provisions may be necessary due to changes in management estimates and
assumptions about asset impairment, information about borrowers that 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
35
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
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 that are independently monitored and tested by internal audit and loan
review staff to ensure that the loss estimation model is maintained in
accordance with internal policies and procedures, as well as generally accepted
accounting principles.
CAPITAL RESOURCES
Equity capital was at $410.0 million at September 30, 2003, an increase of $8.6
million compared to December 31, 2002. 
Dividends declared reduced equity by $27.5 million during the first nine
months of 2003.  The retained net income
of $13.1 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 distributions as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $804 thousand.  Amounts paid
to fund the discount on reinvested dividends reduced equity by $519 thousand during
the first nine months of 2003.  The
market value adjustment to securities available for sale decreased equity by
$8.6 million for the period, while the market value adjustment to the interest
rate swap increased equity by $106 thousand. 
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $3.4 million during 2003, while the tax benefit
related to the stock options, increased equity by $142 thousand.  Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.  This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.  The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.  In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.
The Federal Reserve Board has issued risk-based capital adequacy guidelines
that 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 September 30,
2003:
Amount
(in thousands)
Percent of
Adjusted Assets
Tier
  I Capital
$  419,450
13.1%
Risk-Based
  Requirement
127,674
4.0
Total
  Capital
455,633
14.3
Risk-Based
  Requirement
255,349
8.0
Minimum
  Leverage Capital
419,450
8.7
Minimum
  Leverage Requirement
144,119
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 September 30,
2003, the Corporation's banking and trust subsidiaries exceeded those
requirements.
ITEM 3.  QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Information appearing in Item 2 of this report under the caption "Interest
Sensitivity" is incorporated herein by reference in response to this item.
ITEM 4. CONTROLS AND PROCEDURES
(a) Disclosure controls and procedures. 
Within 90 days before filing this report, we evaluated the effectiveness
of the design and operation of our disclosure controls and procedures.  Our disclosure controls and procedures are
the controls and other procedures that we designed to ensure that we record,
process, summarize and report in a timely manner the information we must
disclose in reports that we file with or submit to the SEC.  Joseph E. O'Dell, our President and Chief
Executive Officer, and John J. Dolan, our Executive Vice President and Chief
Financial Officer, reviewed and participated in this evaluation.  Based on this evaluation, Messrs. O'Dell and
Dolan concluded that, as of the date of their evaluation, our disclosure
controls were effective.
(b) Internal controls.  Since the date
of evaluation described above, there have not been any significant changes in
our internal accounting controls or in other factors that could significantly
affect those controls.
37
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM
  1.
LEGAL
  PROCEEDINGS
There
  were no material legal proceedings to which the Corporation or its
  subsidiaries are a party, or of which any of their property is the subject,
  except proceedings which arise in the normal course of business and, in the
  opinion of management, will not have a material adverse effect on the
  consolidated operations or financial position of the Corporation and its
  subsidiaries.
ITEM
  2.
CHANGES
  IN SECURITIES
Not
  applicable
ITEM
  3.
DEFAULTS
  UPON SENIOR SECURITIES
Not
  applicable
ITEM
  4.
SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not
  applicable
ITEM
  5.
OTHER
  INFORMATION
Not
  applicable
ITEM
  6.
EXHIBITS
  AND REPORTS ON FORM 8-K
(a)
  Exhibits
Exhibit
  10.1 Supplemental Executive Retirement Plan
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
(b)
  Reports on Form 8-K
Form
  8-K dated July 17, 2003 reporting the Corporation's
press release announcing its earnings for
  the three and
six month periods ended June 30, 2003
Form
  8-K dated July 29, 2003 reporting that the
Corporation's subsidiary, First
  Commonwealth Bank, agreed
to sell two branch offices to Waypoint
  Bank
Form
  8-K dated August 12, 2003 reporting that the
Corporation entered into a definitive
  agreement to acquire
Pittsburgh Financial Corp.
38
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST COMMONWEALTH FINANCIAL
CORPORATION
(Registrant)
DATED:  November 10, 2003
/s/Joseph
  E.
  O'Dell
Joseph
  E. O'Dell, President and Chief Executive Officer
DATED:  November 10, 2003
/s/John
  J.
  Dolan
John
  J. Dolan, Executive Vice President and Chief Financial Officer
39