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

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

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

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

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

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

<p><font size=3 face=Courier><br>
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). <br>
<br>
Yes <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
October 31, 2004, was 69,594,838.</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=115 valign=top>
  <p><font size=3 face=Courier><br>
  <u>ITEM 1.</u></font></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier><br>
  FINANCIAL STATEMENTS</font></p>
  </td>
  <td width=55 valign=bottom>
  <p><font size=3 face=Courier><br>
  PAGE</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>Included in Part I of this report:</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>First Commonwealth Financial Corporation and</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Subsidiaries Consolidated Balance Sheets.................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Income......................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>4</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Changes in</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' Equity.................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>5</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Cash Flows..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>7</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Notes to Consolidated Financial
  Statements................ </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>8</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 2.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>
  &nbsp;&nbsp;&nbsp;&nbsp;CONDITION AND RESULTS OF OPERATIONS..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  17</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>QUANTITATIVE AND QUALITATIVE DISCLOSURES <br>
  &nbsp;&nbsp;&nbsp;&nbsp;ABOUT MARKET RISK....................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  38</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>38</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>
</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 width=732>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier><br>
  ITEM 1.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier><br>
  LEGAL PROCEEDINGS.............................................. </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  40</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=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 2.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>UNREGISTERED SALES OF EQUITY SECURITIES <br>
  &nbsp;&nbsp;&nbsp;&nbsp;AND USE OF PROCEEDS........................................ </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>40</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=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>DEFAULTS UPON SENIOR SECURITIES................................ </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>40</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=56 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>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS............ </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>40</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=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 5.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>OTHER INFORMATION.............................................. </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>40</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=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 6.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>EXHIBITS....................................................... </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>41</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=56 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>Signatures..................................................... </font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right><font
  size=3 face=Courier>42</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=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>Exhibits</font></p>
  </td>
  <td width=56 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>September
  30,<br>
  <u>2004</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>December
  31,<br>
  <u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>ASSETS</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and due
  from banks on demand........................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>79,833&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>82,510&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest-bearing
  bank deposits........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,292&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,362&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities available
  for sale, at market................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,198,856&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,969,176&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities held
  to maturity, at cost, (Market value $78,315 in<br>
  &nbsp;&nbsp;&nbsp;&nbsp;2004 and $109,609 in 2003)............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>73,904&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>104,254&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Loans.................................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,533,803&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,825,337&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unearned
  income........................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(294)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(455)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Allowance
  for credit losses............................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(43,162)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(37,385)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  loans.......................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>3,490,347&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,787,497&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Premises and
  equipment................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>56,576&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>46,538&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other real
  estate owned.................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,295&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,866&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Goodwill................................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>128,229&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>29,854&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Amortizing
  intangibles, net.............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,079&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,256&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other assets............................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;202,366&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;158,882&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  assets......................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>6,258,777&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>5,189,195&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>LIABILITIES</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Deposits (all
  domestic):</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>475,183&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>408,647&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing....................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>3,376,168&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,879,628&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  deposits....................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,851,351&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,288,275&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Short-term
  borrowings.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>976,873&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>634,127&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other
  liabilities........................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>38,655&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,875&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Subordinated
  debentures.................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>108,250&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>75,304&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other long-term
  debt..................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;756,626&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;718,668&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  long-term debt................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;864,876&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;793,972&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,731,755&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,758,249&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>SHAREHOLDERS' EQUITY</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Preferred
  stock, $1 par value per share, 3,000,000 shares<br>
  &nbsp;&nbsp;&nbsp;&nbsp;authorized, none issued................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Common stock $1
  par value per share, 100,000,000 shares authorized,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;71,978,568 and 63,704,445 shares issued at September
  30, 2004 and <br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2003 respectively; 69,568,513 and
  60,712,020 shares <br>
  &nbsp;&nbsp;&nbsp;&nbsp;outstanding at&nbsp;September 30, 2004 and December
  31, 2003 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;respectively........................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>71,978&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>63,704&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Additional
  paid-in capital............................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>175,112&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>79,581&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Retained
  earnings........................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>302,327&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>312,261&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Accumulated
  other comprehensive income................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>14,906&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,173&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Treasury stock
  (2,410,055 shares at September 30, 2004 and 2,992,425 at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2003, at cost)............................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(30,437)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(37,779)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Unearned ESOP
  shares..................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(6,864)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(1,994)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  shareholders' equity........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;527,022&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;430,946&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities and shareholders' equity........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>6,258,777&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>5,189,195&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font
  size=1 face=Courier>For
  the Quarter <br>
  <u>Ended September 30,</u></font></p>
  </td>
  <td colspan=4 valign=bottom>
  <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=bottom>
  <p><b><font size=1
  face=Courier>Interest Income</font></b></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  and fees on loans.................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>51,472&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,089&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>136,937&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>123,641&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Taxable
  interest .... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>20,019&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,335&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>55,853&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>49,940&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,048&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,690&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,421&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>7,900&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Dividends............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>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>489&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&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,614&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2&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&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&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&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 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;&nbsp;&nbsp;8&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;&nbsp;&nbsp;1&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;23&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;&nbsp;10&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>74,940&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,605&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>202,410&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>183,108&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Expense</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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;Interest
  on deposits... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,421&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>14,659&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>42,882&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>46,417&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,639&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,708&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>7,264&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,858&nbsp;</font></p>
  </td>
 </tr>
 <tr height=6>
  <td height=6 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td 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 mandatorily<br>
  &nbsp;&nbsp;&nbsp;&nbsp;redeemable capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust..... </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>832&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>2,494&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on subordinated debentures............... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,829&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>4,910&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;Interest
  on other long-term debt................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;7,992</font></u><font
  size=1>&nbsp;</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;7,417&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;26,053&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;22,063&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest on long-term debt........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;9,821&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;8,249&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;30,963&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;24,557&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;&nbsp;&nbsp;Total
  interest expense......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;28,881&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;24,616&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;81,109&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;75,832&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><b><font size=1
  face=Courier>Net Interest Income... </font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>46,059&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>34,989&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>121,301&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>107,276&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,675&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;3,495&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;7,295&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;10,420&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1 face=Courier>Net interest income after
  provision for <br>
  &nbsp;&nbsp;credit losses&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>43,384&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>
  31,494&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>114,006&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  96,856&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Other Income</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Securities
  gains....... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>51&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>166&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,046&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,621&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Trust
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,413&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,342&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&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,811&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Service
  charges on deposit&nbsp;accounts......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,059&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,447&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>11,019&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>9,551&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 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>3,062&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>3,062&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Insurance
  commissions.. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,046&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>910&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,715&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,555&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,333&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,136&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,847&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,234&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Merchant
  discount income......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>988&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>959&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,723&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,666&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Card
  related interchange income................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>986&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>634&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,496&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,933&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,927&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;2,201&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;5,514&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;5,693&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;&nbsp;&nbsp;Total
  other income... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>11,803&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>13,857&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>36,483&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>38,126&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><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>
  <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>Other Expenses</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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;Salaries
  and employee benefits................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>17,303&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,163&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>51,147&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>45,644&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  occupancy expense.. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,540&nbsp;
  </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,023&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,894&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,768&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,064&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,522&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,290&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>7,618&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Data
  processing expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,079&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>688&nbsp;
  </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,805&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,836&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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,140&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,075&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,414&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,216&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Intangible
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>565&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>877&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>16&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Litigation
  settlement (recovery)............... </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>(610)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Merger
  and integration charges.................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(39)</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>2,125&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;Debt
  prepayment fees... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>29,495&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>29,495&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;Other
  operating expenses......................... </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;8,906&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;6,531&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;24,267&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;20,671&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;&nbsp;&nbsp;Total
  other expenses. </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;64,053&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;28,005&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;129,314&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;84,159&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><b><font size=1
  face=Courier>Income (loss) before income taxes.......... </font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,866)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>17,346&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>21,175&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>50,823&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Applicable
  income taxes (benefit)................ </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;(6,071)</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;3,511&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;(913)</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;10,257&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><b><font size=1
  face=Courier>Net Income (Loss)..... </font></b></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;(2,795)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,835&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;22,088&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;40,566&nbsp;</font></u></p>
  </td>
 </tr>
 <tr height=6>
  <td height=6 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td height=6 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 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>69,077,293&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,950,258&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,784,404&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,808,464&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Average
  Shares Outstanding Assuming<br>
  &nbsp;&nbsp;&nbsp;Dilution.............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>69,701,327&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,376,716&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>65,328,753&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,139,101&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Per Share Data:</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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;Basic
  earnings per share......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(0.04)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.34&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.69&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 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(0.04)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.34&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.69&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 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.160&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.155&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.480&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.465&nbsp;</font></p>
  </td>
 </tr>
</table>

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

<font size=3
face=Courier>

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

</font>



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



<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL
CORPORATION AND 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 colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Unearned<br>
  <u>ESOP Shares</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2002................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(44,981)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,055)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>401,390&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 losses on<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;securities arising during the period...... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(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>-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>(4,971)</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=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>(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 on<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;derivatives used in cash flow hedging<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;relationship arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;106&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income (loss)................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(8,460)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(8,460)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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>Net
  decrease in unearned ESOP shares............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(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>&nbsp;&nbsp;3,560&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Tax
  benefit of stock options................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><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;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;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;142&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at September 30, 2003................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;62,525&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;63,927&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;17,391&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(2,251)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</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=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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


<font size=3
face=Courier>

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

</font>


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

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

<p>&nbsp;</p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Unearned<br>
  ESOP<br>
  <u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font
  size=1 face=Courier>Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2003................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>63,704&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>79,581&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>312,261&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,173&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(37,779)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,994)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>430,946&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>22,088&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>22,088&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,048&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>2,048&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><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>(2,613)</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>(2,613)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;derivatives used in cash flow hedging<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;relationship arising during the period................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;298&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;298&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income (loss)................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;(267)</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;(267)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>22,088&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(267)</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>21,821&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(32,022)</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>(32,022)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Net
  increase in unearned ESOP shares............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,870)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,870)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(601)</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>(601)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock acquired</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(514)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(514)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,239)</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>7,856&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>6,617&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Tax
  benefit of stock options................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>415&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>415&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Stock
  issued for acquisition............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;8,274&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;96,956&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;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>105,230&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at September 30, 2004................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>71,978&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>175,112&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>302,327&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>14,906&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(30,437)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(6,864)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>527,022&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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


<font size=3
face=Courier>

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

</font>


<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 STATEMENTS OF CASH FLOWS (Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td colspan=3 valign=bottom>
  <p align=center><font
  size=1 face=Courier>For
  the 9 Months<br>
  <u>Ended September 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Operating Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net income............................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>22,088&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,566&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Adjustments to
  reconcile net income to net cash provided by operating<br>
  &nbsp;&nbsp;&nbsp;&nbsp;activities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Provision
  for credit losses&nbsp;........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>7,295&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,420&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  and amortization.......................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,618&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,651&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  gains on sales of assets........................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,981)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(6,115)</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=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>(3,051)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Income
  from increase in cash surrender value of bank owned life insurance</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,847)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,233)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Stock
  option tax benefit............................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>415&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>142&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Changes,
  net of acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest receivable...................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,307&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
  (decrease) in interest payable.............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>403&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,570)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
  (decrease) in income taxes payable.......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(9,070)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,053&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  decrease (increase) in loans held for sale....... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>160&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,386)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
  in deferred taxes............................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(614)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,493)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other-net............................................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(6,810)</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;(1,013)</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><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by operating activities............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>13,964&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>40,507&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Investing Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Changes, net of
  acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities held to maturity:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,367&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>83,671&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities available for sale:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&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=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>102,018&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>50,634&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>624,137&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>811,639&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.............................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(664,967)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,263,155)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sales of other assets...................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,430&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,467&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Acquisition of
  affiliate, net of cash received........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(70,872)</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)
  decrease in time deposits with banks...... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,016)</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&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  loans.................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(192,845)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,210)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Purchases of
  premises and equipment...................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(9,032)</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;(3,984)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash used by investing activities................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(173,780)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(319,766)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Financing Activities</font></b></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Changes, net of
  acquisition:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  other long-term debt....................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(457,537)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(11,553)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of other long-term debt........... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>283,486&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  subordinated debentures........................................................... &nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(8,292)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of subordinated debentures........ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,238&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Discount on
  dividend reinvestment plan purchases......... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(601)</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><font size=1 face=Courier>&nbsp;&nbsp;Dividends paid........................................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(30,605)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(27,440)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  Federal funds purchased.................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,700&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>21,700&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  other short-term borrowings.............. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>278,451&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>164,592&nbsp;</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=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>(21,329)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  deposits................................. </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>33,885&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>135,920&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sale of treasury stock..................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;6,414&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;3,358&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided by financing activities............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;157,139&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;274,729&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  decrease in cash and cash equivalents............ </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,677)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,530)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at January 1................... </font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;82,510&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;81,114&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at September 30................ </font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;79,833&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;76,584&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 1 Management Representation</u><br>
<br>
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries (&quot;the
Corporation&quot;).&nbsp; All significant
intercompany transactions and balances have been eliminated.&nbsp; The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.&nbsp; The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.&nbsp; Actual realized amounts could
differ from those estimates.&nbsp; In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of September 30, 2004
and the results of operations for the three month and nine month periods ended
September 30, 2004 and 2003, and statements of cash flows and changes in
shareholders' equity for the nine month periods ended September 30, 2004 and
2003.&nbsp; The results of operations for the
three month and nine month periods ended September 30, 2004 and 2003 are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.&nbsp; These interim
financial statements should be read in conjunction with the Corporation's 2003
Annual Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.&nbsp; The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.<br>
<br>
<u>NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Cash
  paid during the first nine months of the year for:</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>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>80,706&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>78,402&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Income
  Taxes</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,528&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>11,555&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>Noncash
  investing and financing activities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;ESOP
  loan reductions</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>643&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</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;ESOP
  borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,513&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  transferred to other real estate owned<br>
  &nbsp;&nbsp;&nbsp;&nbsp;and repossessed assets</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>3,521&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>
  3,458&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  decrease in market value adjustment<br>
  &nbsp;&nbsp;&nbsp;&nbsp;to securities available for sale</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>(869)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  (13,179)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase in market value adjustment of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;derivatives instruments</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>458&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>163&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Treasury
  stock reissued for business<br>
  &nbsp;&nbsp;&nbsp;&nbsp;combination</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>203&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>203&nbsp;</font></p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=252 colspan=6 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2004</font></u></p>
  </td>
  <td width=251 colspan=6 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<u><br>
  Benefit</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=83 colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Unrealized gains (losses) <br>
  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;&nbsp;Unrealized holding gains<br>
  &nbsp;&nbsp;&nbsp;(losses) arising during<br>
  &nbsp;&nbsp;&nbsp;the period</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>3,151&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(1,103)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>2,048&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(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=67 valign=bottom>
  <p align=right><font size=1
  face=Courier>(4,971)</font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Less: reclassification<br>
  &nbsp;&nbsp;&nbsp;adjustment for gains <br>
  &nbsp;&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>(4,020)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>1,407&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>(2,613)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (5,531)</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=67 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  (3,595)</font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier><br>
  Unrealized gains on<br>
  derivatives used in cash <br>
  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;&nbsp;Unrealized holding gains&nbsp; <br>
  &nbsp;&nbsp;&nbsp;arising during the period</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;458&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;(160)</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;298&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;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;(57)</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;106&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Other comprehensive income (loss)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(411)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;144&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(267)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(13,016)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>4,556&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(8,460)</font></u></p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

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



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



<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>(Dollar amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=2
  face=Courier>Three
  months ended<br>
  September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Net Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>(2,795)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>13,835&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Deduct: Total stock-based compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(338)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Pro forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>(2,795)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>13,497&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Earnings per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;(0.04)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;(0.04)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;(0.04)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;(0.04)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>69,077,293</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>58,950,258</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding assuming dilution</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>69,701,327</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>59,376,716</font></p>
  </td>
 </tr>
</table>



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



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



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>(Dollar amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=2
  face=Courier>Nine
  months ended<br>
  September 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=2
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Net Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>22,088&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>40,566&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Deduct: Total stock-based compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;(38)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>(1,014)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Pro forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>22,050&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>39,552&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Earnings per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.34&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.69&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Basic - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.34&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.67&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.34&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.69&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>&nbsp;Diluted - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.34&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=2
  face=Courier>&nbsp;&nbsp;0.67&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>64,784,404</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>58,808,464</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=2 face=Courier>Average shares outstanding assuming dilution</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>65,328,753</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=2
  face=Courier>59,139,101</font></p>
  </td>
 </tr>
</table>

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

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>Note 5 Restructuring Charges</u> <br>
<br>
The Corporation incurred restructuring charges of $6,140 thousand during 2002
in accordance with EITF 94-3.&nbsp; These
restructuring charges resulted from the merger of the charters of the
Corporation's two wholly-owned commercial banks (First Commonwealth Bank and
Southwest Bank) and the adoption of a new common brand and identity for all
financial services subsidiaries.&nbsp; The
largest component of these charges was $4,652 thousand of employee separation
costs consisting of severance packages for 95 employees from various affiliates
of the Corporation including all levels of staff from the executive management
level to back office support staff. These amounts were included as
restructuring charges, a component of Other Expenses on the Consolidated
Statements of Income during 2002.<br>
<br>
During 2003 and 2002 actual termination benefits paid and charged against the
total severance liability were $2,823 thousand and $1,263 thousand,
respectively, leaving a remaining unpaid liability for severance costs of $566
thousand at December 31, 2003.&nbsp; During
the first nine months of 2004, monthly severance payments totaling $470
thousand were made, reducing the outstanding severance liability to $96
thousand at September 30, 2004.&nbsp; No
additional severance accruals or adjustments relating to the 2002 restructuring
charges were recorded during the first nine months of 2004. <br>
<br>
<u>NOTE 6 Merger and Integration Charges<br>
<br>
</u>In the first nine months of 2004, the Corporation recorded merger and
integration charges totaling $2,125 thousand ($1,381 thousand, net of
taxes).&nbsp; The merger and integration
charges related to the acquisition of Pittsburgh Financial Corp.
(&quot;PFC&quot;). The charges included $485 thousand related to the write-off
of the unamortized capitalized costs for the subordinated debentures that were
previously issued by PFC and were called and paid off in January of 2004.&nbsp; Also included in the merger and integration
charges were $1,640 thousand in salary and benefit severance expenses that were
accrued during the first nine months of 2004.&nbsp;
The severance costs were for 23 employees whose positions were
eliminated as part of the acquisition.<br>
<br>
<u>NOTE 7 New Accounting Pronouncements</u> <br>
<br>
In January 2003, the FASB issued FASB Interpretation No. 46 (&quot;FIN
46&quot;), &quot;Consolidation of Variable Interest Entities,&quot; and in
December 2003, issued FIN 46 (Revised 2003) (&quot;FIN 46R&quot;).&nbsp; FIN 46R clarified some of the provisions of
FIN 46 and exempted certain entities from the original requirements of FIN
46.&nbsp; As defined by FIN 46 a variable
interest entity (&quot;VIE&quot;) is a corporation, partnership, trust or any
other legal structure used for business purposes that either (a) does not have
equity investors with voting rights or (b) has equity investors that do not
provide sufficient financial resources for the entity to support its
activities.&nbsp; Under FIN 46R, an entity
that holds a variable interest in a VIE is required to consolidate the VIE if
the entity is subject to a majority of the risk of loss from the VIE's
activities, is entitled to receive a majority of the entity's residual returns
or both.&nbsp; FIN 46R was implemented for the
quarter ended March 31, 2004.<br>
<br>
11</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 7 New Accounting Pronouncements</u> (continued)<u><br>
<br>
</u>As part of its community reinvestment initiatives, the Corporation invests
in qualified affordable housing projects as a limited partner.&nbsp; The Corporation receives federal affordable
housing tax credits and rehabilitation tax credits for these limited
partnership investments.&nbsp; The
Corporation's maximum potential exposure to these partnerships is $4,947
thousand, consisting of the limited partnership investments as of September 30,
2004.&nbsp; The Corporation has determined
that these investments will not be consolidated but continue to be accounted
for under the equity method whereby the Corporation's portion of partnership
losses are recognized as incurred.&nbsp; The
adoption of FIN 46 or FIN 46R has not had a material impact on the
Corporation's financial condition or results of operation.<br>
<br>
In March 2004, the Securities and Exchange Commission (&quot;SEC&quot;) issued
Staff Accounting Bulletin No. 105 (&quot;SAB 105&quot;), &quot;Application of
Accounting Principles to Loan Commitments.&quot;&nbsp; SAB 105 was issued to inform the SEC's registrants of the SEC
staff's view that the fair value of the recorded loan commitments that are
required to follow derivative accounting under FASB Statement No. 133
(&quot;FAS No. 133&quot;), &quot;Accounting for Derivative Instruments and
Hedging Activities,&quot; should not consider the expected future cash flows
related to the associated servicing of the future loan.&nbsp; The SEC staff believes that incorporating
expected future cash flows related to the associated servicing of the loan
essentially results in the immediate recognition of a servicing asset, which is
only appropriate once the servicing asset has been contractually separated from
the underlying loan by sale or by securitization of the loan with servicing
retained.&nbsp; The provisions of SAB 105
were to be applied to loan commitments accounted for as derivatives that were
entered into after March 31, 2004; and therefore, was implemented during the
second quarter of 2004.&nbsp; The adoption of
SAB 105 has not and is not expected to have a material impact on the
Corporation's financial condition or results of operations.<br>
<br>
In May 2004, the FASB issued FASB Staff Position No. FAS 106-2 (&quot;FSP FAS
106-2&quot;), &quot;Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003.&quot;&nbsp; FSP FAS 106-2 supersedes
the FASB Staff Position No. FAS 106-1, which has the same title as FSP FAS
106-2.&nbsp; FSP FAS 106-2 provides guidance
on the accounting for the effects of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003 (&quot;the Act&quot;) for employers that
sponsor postretirement health care plans that provide prescription drug
benefits.&nbsp; FSP FAS 106-2 also requires
employers to provide certain disclosures regarding the effect of the federal
subsidy provided by the Act.&nbsp; This FSP
is effective for the first interim or annual period beginning after June 15,
2004.&nbsp; The disclosure requirements of
FSP FAS 106-2 can be found in NOTE 9 (Post Retirement Benefit Plan of Acquired
Company) of this report.<br>
<br>
<br>
<br>
<br>
<br>
<br>
12<br></font></p>

<font size=3
face=Courier>

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

</font>


<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 CONSOLIDATED SUBSIDIARIES<br>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
September 30, 2004<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 7 New Accounting Pronouncements</u> (continued)<u><br>
<br>
</u>In March 2004, the Emerging Issues Task Force (&quot;EITF&quot;) reached a
consensus on the remaining issues related to Emerging Issues Task Force Issue
03-1 (&quot;EITF 03-1&quot;), &quot;The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments.&quot;&nbsp; This guidance is applicable to debt and
equity securities that are within the scope of FASB Statement of Financial
Accounting Standards No. 115 (&quot;FAS No. 115&quot;) and certain other
investments.&nbsp; EITF 03-1 provides
clarification guidance to determine when an investment is considered impaired,
whether the impairment is other than temporary, and the measurement of an
impairment loss.&nbsp; The guidance also
includes accounting considerations subsequent to the recognition of an
other-than-temporary impairment and requires certain disclosures about
unrealized losses that have not been recognized as other-than-temporary
impairments.<br>
<br>
In September 2004, the FASB issued FASB Staff Position No. EITF Issue 03-1-1
(&quot;FSP EITF 03-1-1&quot;), &quot;Effective Date of Paragraphs 10-20 of EITF
Issue No. 03-1, &quot;The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments&quot;.&quot;&nbsp; FSP EITF 03-1-1 delays the effective date for the measurement and
recognition guidance contained in paragraphs 10-20 of EITF 03-1 from reporting
periods beginning after June 15, 2004, until implementation guidance is
issued.&nbsp; This delay does not suspend the
requirement to recognize other-than-temporary impairments as required by
existing authoritative literature.&nbsp; Once
additional guidance has been released, the Corporation will evaluate the impact
of implementation on the Corporation's financial condition and results of
operations.<br>
<br>
<u>NOTE 8 Guarantees<br>
</u><br>
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.&nbsp; The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.&nbsp; In
addition, many of these commitments are expected to expire without being drawn
upon; therefore the total commitment amounts do not necessarily represent
future cash requirements.&nbsp; The table
below identifies the notional amounts of these guarantees at September 30,
2004:&nbsp; (dollar amounts in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Financial
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>20,580</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Performance
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>5,377</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
The current notional amounts outstanding above include financial standby
letters of credit of $613 thousand and performance standby letters of credit of
$863 thousand issued during the first nine months of 2004.&nbsp; There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.<br>
<br>
<br>
<br>
<br>
<br>
<br>&nbsp;<br>
13</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 9 Post Retirement Benefit Plan of Acquired Company<br>
</u><br>
In December 2003, the FASB issued Statement No. 132(R) &quot;Employers'
Disclosures about Pensions and Other Postretirement Benefits&quot; (&quot;FAS
No. 132 (R)&quot;).&nbsp; In addition to
annual disclosures that have already been implemented, the statement requires
interim reporting of the components of the net periodic benefit cost
recognized, which are included in this footnote.&nbsp; Disclosure requirements for future benefit payments are effective
for fiscal years ending after June 15, 2004.<br>
<br>
Employees of an acquired company were covered by a post retirement benefit
plan.&nbsp; The net periodic benefit cost of
this plan for the quarter ended September 30 was as follows (dollar amounts in
thousands):<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier><br><br></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Service
  cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest
  cost on projected benefit obligation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>71&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>85&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Amortization
  of transition obligation</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loss
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;21</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;30&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  periodic benefit cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;93&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>116&nbsp;</font></u></p>
  </td>
 </tr>
</table>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Service
  cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest
  cost on projected benefit obligation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>212&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>254&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Amortization
  of transition obligation</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loss
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;63</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;90</font></u>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  periodic benefit cost</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>277</font></u>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>346</font></u>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
This is an unfunded post retirement plan.&nbsp;
The plan was curtailed in 1998.&nbsp;
Future payments will only consist of benefit payments for life and
health insurance premiums for plan participants as of January 1, 2002.<br>
<br>
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the
&quot;Act&quot;) introduced a prescription drug benefit under Medicare Part D.
The Act also introduced a federal subsidy to sponsors of retiree health care
benefit plans that provide a prescription drug benefit that is at least
actuarially equivalent to Medicare Part D.&nbsp;
As of the filing date of this quarterly report on Form 10-Q, the Corporation
has not been able to determine whether the prescription drug benefits provided
by the Corporation's postretirement plan are actuarially equivalent to Medicare
Part D.&nbsp; As a result, the preceding
measures of the net periodic postretirement benefit cost do not reflect any
amounts associated with the federal subsidy.&nbsp;
The impact of the Act, once determined, could affect reported
calculations.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
14</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 10 Business Combination</u><br>
<br>
Effective May 24, 2004, the Corporation acquired 100% of the outstanding shares
of GA Financial, Inc. (&quot;GAF&quot;), a savings and loan holding company,
which was headquartered in Whitehall, Pennsylvania.&nbsp; GAF was the parent company of Great American Federal.&nbsp; As a result of the acquisition, GAF merged
into First Commonwealth Financial Corporation and Great American Federal merged
into First Commonwealth Bank.&nbsp; <br>
<br>
The acquisition of GAF is another significant step for the Corporation to
implement its strategy for expansion into the Pittsburgh, Pennsylvania
market.&nbsp; The acquisition of Great
American Federal adds an additional customer base, which presents the
opportunity for First Commonwealth Bank to offer insurance, trust and financial
planning services to a larger base of customers.<br>
<br>
Shareholders of GAF elected to receive $35.00 in cash or an equivalent of First
Commonwealth common stock for each GAF share owned.&nbsp; The aggregate purchase price of the transaction was $176.6 million,
which included cash in the amount of $71.4 million and common stock valued at
$105.2 million.&nbsp; The value of the
8,274,123 issued shares of First Commonwealth common stock was based on the
average market price of First Commonwealth's common stock over the ten-day
period ending three trading days prior to consummation of the acquisition.&nbsp;&nbsp;&nbsp; <br>
<br>
The merger was accounted for as a purchase transaction whereby the identifiable
tangible and intangible assets and liabilities of GAF have been recorded at
their fair values as of the acquisition date.&nbsp;
Purchase accounting valuation adjustments, which represent the
difference between the carrying value and the fair value of identifiable
tangible and intangible assets and liabilities, were recorded in the Consolidated
Balance Sheet.&nbsp; As of September 30,
2004, preliminary goodwill in the amount of $96.9 million was recorded as a
result of the transaction.&nbsp; This
included adjustments to goodwill that were recorded during the third quarter of
2004.<br>
<br>
As prescribed under the purchase method of accounting, the results of GAF's
operations have been included in the consolidated financial statements since
the acquisition date.&nbsp; <br>
<br>
The customer deposit base of $15.7 million was the only amortizing intangible
that was recorded with the transaction.&nbsp;
Amortization expense in the amount of $1.1 million will be recorded in
the Consolidated Income Statement throughout 2004.&nbsp; The weighted-average useful life of the customer deposit base
intangible is 8 years.&nbsp; The goodwill
that was recorded with the transaction is not deductible for tax purposes.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
15</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 11 FHLB Restructuring</u><br>
<br>
The third quarter of 2004 included a previously announced charge of $29.5
million ($19.2 million after tax) representing a penalty for the prepayment of
$440 million in Federal Home Loan Bank, or FHLB, long-term borrowings.&nbsp; The prepayment penalty is reflected in the
Consolidated Statements of Income as debt prepayment fees.&nbsp; The FHLB borrowings were replaced with other
borrowings having maturities ranging from overnight to 2010.&nbsp; This transaction expands the maturity
distribution of the company's FHLB advances to minimize the impact of
maturities on any one year.&nbsp; It also
reduced the initial interest cost on the $440 million in FHLB advances by 292
basis points (2.92%).&nbsp; First Commonwealth
expects that the transaction will result in an increase in net interest income
over the remaining term of the original advances in excess of the prepayment
penalty.<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>
<br>
<br>
<br>
16</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u><br>
<br>
<b>First Nine Months of 2004 as Compared to the
First Nine Months of 2003</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the &quot;Corporation&quot;).&nbsp;
In addition to historical information, this discussion and analysis, as
well as the notes to the consolidated financial statements, contain
forward-looking statements (as defined in the Private Securities Litigation
Reform Act of 1995), which reflect management's beliefs and expectations based
on information currently available and may contain the words &quot;expect,&quot;
&quot;estimate,&quot; &quot;project,&quot; &quot;anticipate,&quot;
&quot;should,&quot; &quot;intend,&quot; &quot;probability,&quot;
&quot;risk,&quot; &quot;target&quot; and similar expressions.&nbsp; These forward-looking statements are
inherently subject to significant risks and uncertainties, including but not
limited to:&nbsp; changes in general economic
and financial market conditions, the Corporation's ability to effectively carry
out its business plans, changes in regulatory or legislative requirements,
changes in competitive conditions and continuing consolidation of the financial
services industry.&nbsp; Although management
believes the expectations reflected in such forward-looking statements are
reasonable, actual results could differ materially.&nbsp; Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof.&nbsp; The Corporation undertakes
no obligation to publicly revise or update these forward-looking statements to
reflect events or circumstances that arise after the date hereof.<br>
<br>
Net income for the first nine months of 2004 was $22.1 million reflecting a
decrease of $18.5 million compared to 2003 results of $40.6 million.&nbsp; The most significant component of this
decrease was the previously announced penalty related to the prepayment of FHLB
long-term advances.&nbsp; This penalty was
$29.5 million or $19.2 million after taxes.&nbsp;
Security gains in the 2004 period were less than that of the 2003 period
and the 2004 period included merger and integration costs that were not present
in the 2003 period.&nbsp; In addition, the 2004
period incorporated the results of GAF since May 24, 2004, as well as the
results of PFC for the entire reporting period.&nbsp; The 2003 period included a gain on the sale of two branches.&nbsp; Basic and diluted earnings per share were
$0.34 for the first nine months of 2004 compared to $0.69 for the same period
of 2003.<br>
<br>
Return on average assets was 0.52% and return on average equity was 6.14% for
the first nine months of 2004 compared to 1.16% and 13.26%, respectively, for
the first nine months of 2003.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
17</font></p>


<font size=3
face=Courier>

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

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share, prior year</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.69&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>0.04&nbsp;</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>0.06&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Security
  transactions</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Service
  charges on deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.01&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;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)</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>(0.01)</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;Intangible
  amortization</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Litigation
  settlement (recovery)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Merger
  and integration charges</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Debt
  prepayment fees</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.45)</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>(0.03)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Applicable
  income taxes</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>0.19&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><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share, current year</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>0.34&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<i><u>Net Interest Income</u></i><br>
<br>
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.&nbsp; Net interest income
increased by $14.0 million for the first nine months of 2004 over the related
period of 2003, as average interest-earning assets increased by 20.8%.&nbsp;&nbsp;&nbsp; <br>
<br>
Net interest margin (net interest income, on a tax-equivalent basis, as a
percentage of average earning assets) was 3.27% for the nine months of 2004
compared to 3.52% for the nine months of 2003 reflecting a decrease of 25 basis
points (0.25%).&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
18</font></p>


<font size=3
face=Courier>

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

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=bottom>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004 Change From 2003<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>45&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(32)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,992&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>11,444&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(5,452)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;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>13,296&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>25,166&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(11,870)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>19,302&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>36,656&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>(17,354)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Savings
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,914&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,141&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>773&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(6,449)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(823)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(5,626)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,406&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,285&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>121&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,406&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>12,531&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(6,125)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,277&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>16,134&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(10,857)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>14,025&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>20,522&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(6,497)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans increased $13.3 million for the first nine months of 2004
compared to 2003 due to volume increases.&nbsp;
The volume increases were offset by decreases due to loan yields
declining in the lower interest rate environment.&nbsp; The total yield on loans for the first nine months of 2004 was
5.97%, compared to loan yields of 6.52% for the first nine months of 2003.&nbsp; Average total loans for the first nine
months of 2004 rose $529.9 million compared to averages for the first nine
months of 2003 as increases were noted in all loan categories with the
exception of leases, since the Corporation has discontinued its leasing
activities.&nbsp; The largest increases were
recorded in the commercial loan category.&nbsp;
The averages include the addition of PFC for the full period of 2004 and
GAF since May 24, 2004.&nbsp; The Corporation
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration (&quot;SBA&quot;) lender status.&nbsp; The Corporation has consistently been one of
the top small business lenders in Pennsylvania.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
19<br></font></p>

<font size=3
face=Courier>

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

</font>


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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Nine Months of 2004 as Compared to the
First Nine Months of 2003</b><br>
(continued)<br>
<br>
Interest income on investment securities increased $6.0 million for the first
nine months of 2004 compared to the first nine months of 2003.&nbsp; Increases due to volume of $11.4 million
were partially offset by decreases due to the decline in interest rates of $5.4
million.&nbsp; Average investment securities
increase by $381.7 million for the first nine months of 2004 compared to the same
period of 2003 and included increases due to PFC for the full period and
increases due to GAF since May 24, 2004.&nbsp;
The most significant increases were in U.S. government agency
securities.&nbsp; Total yield on investments
was 4.32% for the first nine months of 2004 compared to 4.77% for the same
period of 2003, a decline of 45 basis points (0.45%).&nbsp; Declines in interest income due to rate for U.S. government
agency securities were $3.5 million as yields on these securities decreased 29
basis points (0.29%) for the 2004 period compared to the corresponding period
of 2003.&nbsp; <br>
<br>
Interest expense on total deposits dropped $3.5 million for the 2004 period
compared to 2003 primarily due to decreases in time deposit interest
rates.&nbsp; The rate on time deposits
dropped 45 basis points (0.45%) while the rate on savings deposits increased 6
basis points (0.06%).&nbsp; The Corporation's
deposit mix continues to change as clients registered a preference for savings
deposits rather than time deposits during continuing economic uncertainties.&nbsp; Average savings deposits increased $404.3
million for 2004 compared to 2003 averages while average time deposits dropped
$58.7 million over the same time frames.&nbsp;
Average deposits included increases in all categories due to PFC for the
full period and GAF since May 24, 2004.&nbsp;
During its management of deposit levels and mix, the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive rates
they are looking for while also minimizing the Corporation's cost of
funds.&nbsp; <br>
<br>
Interest expense on short-term borrowings increased $2.4 million for the first
nine months of 2004 compared to the same period of 2003 primarily due to
increases in volume. &nbsp;The average
balance of short-term borrowings for the first nine months of 2004 increased by
$237.2 million compared to the average for the prior year.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
20</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Nine Months of 2004 as Compared to the
First Nine Months of 2003</b><br>
(continued)<br>
<br>
Interest expense on long-term debt increased $6.4 million for the first nine
months of 2004 compared to the corresponding period of 2003.&nbsp; Increases due to volume were partially
offset by decreases due to rate.&nbsp;
Average long-term debt for the nine months of 2004 increased by $295.5
million compared to 2003 averages.&nbsp;
Average long-term debt included increases due to PFC for the full period
and GAF since May 24, 2004.&nbsp; In
addition, approximately $59.6 million of the average increase was due to
additional debt in the form of subordinated debentures that were acquired in
December 2003 and March 2004, with face amounts of $30.9 million and $41.2
million, respectively.&nbsp; This debt was
issued in anticipation of the acquisition of GAF.&nbsp; The rate on long-term debt decreased by 94 basis points (0.94%)
in the first nine months of 2004 compared to the same period of 2003.&nbsp; The rate reduction was anticipated in
connection with the prepayment of FHLB long-term advances.&nbsp; The Corporation was able to replace these
advances with lower rate borrowings.<br>
<br>
<i><u>Provision for Credit Losses<br>
<br></u></i>The provision for credit losses is an amount added to the
allowance against which credit losses are charged.&nbsp; The amount of the provision is determined by management based
upon its assessment of the size and quality of the loan portfolio and the
adequacy of the allowance in relation to the risks inherent within the loan
portfolio.&nbsp; The provision for credit
losses was $7.3 million for the first nine months of 2004 compared to $10.4
million for the same period of 2003.&nbsp;
The decrease of $3.1 million was due to improvement in nonperforming
loans and net charge-offs.&nbsp; Net
charge-offs against the allowance for credit losses were $6.5 million for the
2004 period compared to $8.7 million for the corresponding period of 2003.&nbsp; Annualized net charge-offs as a percent of average
loans outstanding were 0.27% as of September 30, 2004 compared to 0.44% as of
September 30, 2003.&nbsp; The provision for
credit losses as a percent of net charge-offs was 112.21% at September 30, 2004
and 119.32% at September 30, 2003.&nbsp; See
the &quot;Credit Review&quot; section for an analysis of the quality of the
loan portfolio.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
21<br></font></p>

<font size=3
face=Courier>

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

</font>


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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=right><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>37,385&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>34,496&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Addition
  as result of acquisition</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,983&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,228&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,307&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>384&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>547&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>978&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>996&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,688&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,468&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,548&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;217&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;260&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  loans charged off</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,456&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,165&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>611&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>67&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>16&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>277&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>491&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  recoveries</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;955&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,432&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  charge offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,501&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;8,733&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,295&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,420&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Balance
  September 30,</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>43,162&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>36,183&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<i><u>Noninterest Income<br>
<br></u></i>Net securities gains were $4.0 million during the first nine
months of 2004 compared to $5.6 million for the first nine months of 2003.&nbsp; Securities gains during the 2004 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $19.3 million.&nbsp; Securities gains
during the 2003 period resulted primarily from the sale of 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.<br>
<br>
<br>
<br>
22<br></font></p>

<font size=3
face=Courier>

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

</font>


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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>&nbsp;<br>
<b>First Nine&nbsp;&nbsp;&nbsp;
Months of 2004 as Compared to the First Nine Months of 2003</b><br>
(continued)<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 in the Chambersburg, PA area.&nbsp; The sale included $29.2 million in deposit liabilities and $4.4
million in loans associated with the two offices.<br>
<br>
Trust income for the first nine months of 2004 was up $312 thousand over the
same period of 2003.&nbsp; The market value
to book value ratio is up slightly from the prior year level.&nbsp; The rebound in market values over prior year
levels should help trust income to trend in a positive direction.&nbsp; The referral programs and integrated growth
plans for financial affiliates have continued to help grow trust revenues.&nbsp; The Corporation's continued success in
building relationships with commercial clients provides fee based affiliates
with additional sales opportunities through the &quot;Total Solutions Financial
Management&quot; (&quot;TSFM&quot;) process.&nbsp;
This strategy combines products, services and professional staff from
the Corporation's trust, insurance, financial advisory and banking affiliates
and partners them in providing comprehensive financial services offerings.<br>
<br>
Service charges on deposits are the Corporation's most significant component of
noninterest income and increased $1.5 million for the first nine months of 2004
compared to the corresponding period of 2003.&nbsp;
The increases are largely due to the acquisitions of PFC and GAF.&nbsp; The most significant increase was in
nonsufficient funds &quot;NSF&quot; fees of $1.4 million.&nbsp; Management strives to implement reasonable
fees for services and closely monitors collection of those fees.&nbsp; The increase in NSF fees is due to the
inclusion of PFC and GAF as well as the growth of the High Performance Checking
products for consumer and business clients.&nbsp;
In addition, the increase in NSF fees is due in part to better
management of the collection process to ensure that fee waivers are kept to a
minimum.<br>
<br>
Other increases in noninterest income included increases in income from bank
owned life insurance and card related interchange income in the amounts of $613
thousand and $563 thousand, respectively.&nbsp;
The increases were due in part to the inclusion of PFC and GAF.&nbsp; The card related interchange income growth
was favorably affected by additional volume related to card usage.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
23</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Nine Months of 2004 as Compared to the
First Nine Months of 2003</b><br>
(continued)<br>
<br>
<i><u>Noninterest Expense</u></i><br>
<br>
Salary and employee benefit costs increased $5.5 million or 12.1% for the first
nine months of 2004 compared to the same period of 2003.&nbsp; Salary costs accounted for $3.9 million or
11.1% of the increase while benefit costs increased $1.6 million or 15.1%.&nbsp; The increase was due in large part to an
increase in the number of employees from the addition of PFC and GAF.&nbsp; Full-time equivalent employees were 1,641 at
the end of the third quarter of 2004 compared to 1,430 at the same time in
2003.&nbsp; The largest increase in benefit
costs was hospitalization costs, which were up $540 thousand or 12.3%.&nbsp; The Corporation continues to evaluate its
current menu of employee benefits to provide a competitive benefits package
while also managing costs.&nbsp; Current
benefit options include coverages fully paid for by the employer, as well as
voluntary benefits whereby employees have the option of purchasing additional
benefits at reduced group rates.&nbsp; <br>
<br>
Net occupancy expense increased $1.1 million for the first nine months of 2004
over 2003 levels.&nbsp; Rental expense
accounted for $619 thousand of the increase, primarily due to the addition of
the former PFC and GAF offices.&nbsp;
Additional increases were also recorded in building repairs and
maintenance.&nbsp; Most of the maintenance
increases were related to snow removal expenses resulting from the harsh
winter.&nbsp; The Corporation continues to
actively evaluate and upgrade its branch delivery network to optimize client
service in existing branches and to continue expansion into growth
markets.&nbsp; The execution of these
initiatives may impact occupancy and other expenses in future periods.<br>
<br>
Data processing expense increased by $969 thousand in the first nine months of
2004 compared to the same period of 2003, due in part to the acquisitions of
PFC and GAF.&nbsp; In addition, the data
processing expense was unfavorably impacted by a rate increase related to
clients using debit and credit cards over the STAR network.<br>
<br>
Intangible amortization expense increase by $861 thousand in the first nine
months of 2004 compared to the same period of 2003.&nbsp; The increase was due to the amortization of the core deposit
intangibles that were recorded for the recent acquisitions.<br>
<br>
The merger and integration expenses included $485 thousand related to the
write-off of the unamortized capitalized costs for the subordinated debentures
that were previously issued by PFC and were called and paid off in January of
2004.&nbsp; In addition, the merger related
expenses included $1.6 million of severance related salary and benefit expenses
that were accrued during the first nine months of 2004 and were due to the
integration of PFC into the Corporation.&nbsp;
Future periods could be impacted by similar costs as the GAF integration
continues. <br>
<br>
<br>
<br>
<br>
24</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>First Nine Months of 2004 as Compared to the
First Nine Months of 2003</b><br>
(continued)<br>
<br>
As previously mentioned, noninterest expenses during the 2004 period included a
one-time penalty of $29.5 million for the prepayment of $440 million in
long-term FHLB advances.&nbsp; The FHLB
advances were replaced with other long-term debt with lower interest rates as
well as with short-term borrowings.&nbsp; The
transaction is expected to result in an increase in net interest income over
the remaining term of the original advances in excess of the prepayment
penalty.<br>
<br>
Other increases in noninterest expense included increase in telephone and data
line expenses, advertising and other professional fees in the amounts of $599
thousand, $500 thousand and $405 thousand, respectively.&nbsp; Telephone and data line expense increases
were due in large part to the recent acquisitions.&nbsp; Advertising expense increases are due in large part to grand
re-opening events that have taken place in branches that have been newly
re-built, remodeled or acquired.&nbsp; The
increase in other professional services is due in part to the use of a
consultant to provide targeted marketing services.<br>&nbsp;<br>
Income tax expense decreased $11.2 million for the first nine months of 2004
compared to the first nine months of 2003.&nbsp;
This variance included the tax effect of $10.3 million on the previously
mentioned FHLB prepayment penalty.&nbsp; The
Corporation's effective tax rate was (4.3)% for the first nine months of 2004
compared to 20.2% for the corresponding period of 2003.&nbsp; The effective rate for the first nine months
of 2004 was positively impacted by an increase in tax-exempt income and tax
credits compared to 2003 levels.&nbsp; <br>
<br>
<b>Three Months Ended September 30, 2004 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2003<br></b><br>
The Corporation recognized a net loss of $2.8 million for the third quarter of
2004 compared to net income of $13.8 million for the same quarter in 2003.&nbsp; Basic and diluted earnings per share were
($0.04) for the third quarter of 2004 compared to $0.23 for the third quarter
of 2003.&nbsp; Return on average assets was
(0.18)% and return on average equity was (2.13)% for the third quarter of 2004
compared to 1.14% and 13.63%, respectively, for the third quarter of 2003.<br>
<br>
<i><u>Net Interest Income</u></i><b><br></b><br>
Net interest income for the third quarter of 2004 of $46.1 million represented
an increase of $11.1 million compared to the third quarter of 2003.&nbsp; The increase in net interest income was due
to an increase in average interest-earning assets of 27.8%.&nbsp; An increase of $10.2 million was due to
increases in volume, while the remaining increase was due to interest
rates.&nbsp; Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) for the 2004 period was 3.38% reflecting an increase of 7 basis points
(0.07%) from 3.31% reported in 2003 as the cost of funds declined more than
asset <br>
<br>
<br>
<br>
25</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended September 30, 2004 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2003 </b>(continued)<br>
<br>
yields.&nbsp; With the repositioning of
borrowings after the FHLB prepayment, low interest rates are expected to have a
slightly favorable impact on the prospective net interest margin.<br>
<br>
The following table shows the effect of changes in volumes and rates on
interest income and interest expense for the quarter ended September 30:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=bottom>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004 Change From 2003<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(6)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,944&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,125&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>819&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>11,383&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>14,126&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>(2,743)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>15,335&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>17,264&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>(1,929)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Savings
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,029&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>707&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,322&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1,267)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>655&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(1,922)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,931&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>944&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>987&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,572&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,804&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>(3,232)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;4,265&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;7,110&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>(2,845)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>11,070&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,154&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;916&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>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans for the three months ended September 30, 2004, increased
$11.4 million compared to the three months ended September 30, 2003, primarily
as a result of volume increases.&nbsp; The
averages include the addition of recent acquisitions for the full quarter in
2004.&nbsp; Average total loans for the third
quarter of 2004 increased $906.5 million compared to averages for the third
quarter of 2003.&nbsp; The largest increases
were in commercial loans and mortgages.&nbsp;
The total yield on loans for the third quarter of 2004 was 6.01%
representing a decrease of 34 basis points (0.34%)compared to yields for the
third quarter of 2003.&nbsp;&nbsp;&nbsp; <br>
<br>
Interest income on investments for the three months ended September 30, 2004,
was $23.5 million, reflecting an increase of $3.9 million compared to the three
months ended September 30, 2003.&nbsp;
Average investments increased by $349.2 million for the third quarter of
2004 compared to averages for the third quarter of 2003.&nbsp; Average investments for the third quarter of
2004 included increases due to the inclusion of balances from PFC and GAF for
the full period.&nbsp; The most significant
increases were in U.S. government agency securities.&nbsp; The total yield on investments was 4.39% for the third quarter of
2004 compared to 4.33% for the third quarter of 2003.&nbsp; <br>
<br>&nbsp; <br>
<br>
26</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended September 30, 2004 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2003</b>
(continued)<b><br></b>&nbsp;<br>
Interest expense on deposits increased $762 thousand for the three months ended
September 30, 2004, compared to the same period in 2003.&nbsp; Increases in savings deposits were partially
offset by decreases in time deposits.&nbsp;
Increases due to volume were noted for each of the deposit types, while
savings deposits reflected increases due to rate and time deposits reflected
decreases due to rate.&nbsp; Average total
deposits were $3,875.3 million for 2004 compared to $3,197.4 million for the
corresponding period of 2003.&nbsp; Average
deposits included increases in all categories due to the inclusion of balances
from PFC and GAF for the full period in 2004.&nbsp;
The interest rate for savings deposits increased 27 basis points (0.27%)
for the third quarter of 2004 over the same period of 2003, while the rate for
time deposits decreased by 40 basis points (0.40%) for the same period.&nbsp; <br>
<br>
Interest expense on short-term borrowings increased by $1.9 million for the
three months ended September 30, 2004 compared to the same period of 2003, due
in part to increases in volume and increase due to rate.&nbsp; Average short-term debt included increases
of $320.8 million for the 2004 quarter compared to the 2003 quarter.&nbsp; Short-term borrowing rates increased 44
basis points (0.44%) for the third quarter of 2004 compared to the third
quarter of 2003. <br>
<br>
Interest expense on long-term debt for the three months ended September 30,
2004, increased $1.6 million compared to the same period of 2003, primarily as
a result of volume increases which were partially offset by rate
decreases.&nbsp; Average long-term debt was
$336.7 million more in the third quarter of 2004 than averages for the third
quarter of 2003.&nbsp; Average long-term debt
included increases due to the inclusion of PFC and GAF for the full period of
2004.&nbsp; In addition, long-term debt
included increases due to additional debt in the form of subordinated
debentures.&nbsp; Additional subordinated
debentures in the amount of $72.1 million were outstanding for the full quarter
of 2004.&nbsp; Long-term borrowing rates
decreased 139 basis points (1.39%) for the third quarter of 2004 compared to
the third quarter of 2003.&nbsp; The rate
reduction was anticipated in connection with the prepayment of FHLB long-term
advances.&nbsp; The Corporation was able to
replace these advances with lower rate borrowings.<br>
<br>
<i><u>Provision for Credit Losses</u></i><br>
<br>
The provision for credit losses was $2.7 million for the three months ended
September 30, 2004, compared to $3.5 million for the three months ended
September 30, 2003.&nbsp; The third quarter
of 2004 reflected a decrease of $739 thousand in net charge-offs when compared
to the third quarter of 2003.&nbsp; The most
significant decrease in net charge-offs for the third quarter of 2004 compared
to 2003 was in real estate loans secured by 1-4 family property and commercial
loans.&nbsp;&nbsp; <br>
<br>
<i><u>Noninterest Income</u></i><br>
<br>
Net securities gains were $51 thousand for the third quarter of 2004 compared
to securities gains of $166 million for the third quarter of 2003. &nbsp;&nbsp;&nbsp;<br>&nbsp;<br>
27</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>RESULTS OF OPERATIONS</u> (continued)<br>
<br>
<b>Three Months Ended September 30, 2004 as
Compared to the Three Months Ended<br>
September</b> <b>30, 2003</b>
(continued)<b><br>
<br></b>During the third quarter of 2004, gains were primarily from the sale
of U.S. treasury securities and tax free municipal securities with book values
of $1.5 million and $3.3 million, respectively. 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.<br>
<b><br></b>Other increases in noninterest income included increases in trust
income, service charges on deposits, insurance commissions, income from bank
owned life insurance, merchant discount income and income from card related
interchange fees.&nbsp; Increases in trust
income are the result of improved market values.&nbsp; Increases in other noninterest income are in large part due to
the acquisition of PFC and GAF.&nbsp; The
increases in service charges on deposits were most notable in the NSF fees
category.&nbsp; <br>
<br>
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;&nbsp;&nbsp; The
sale included $29.2 million in deposit liabilities and $4.4 million in loans
associated with the two offices.<br>
<b><br></b><i><u>Noninterest Expense</u></i><br>
<br>
Total noninterest expense for the three months ended September 30, 2004, was
$64.1 million compared to $28.0 million reported for the same period of
2003.&nbsp; The increase of $36.1 million
included the previously announced penalty for the prepayment of FHLB long-term
advances in the amount of $29.5 million.&nbsp;
<br>
<br>
The most significant other noninterest expense item that increased was salary
and employee benefit costs.&nbsp; These
employee costs increased $2.1 million for the 2004 quarter over 2003 levels.&nbsp; Salary expense was up $1.6 million or 13.4%
for the third quarter of 2004 compared to 2003.&nbsp; Employee benefit costs rose $575 thousand or 16.7% for the third
quarter of 2004.&nbsp; The increases were
primarily due to the inclusion of recent acqisitions as full-time equivalent
employees increased to 1,641 at the end of the third quarter of 2004 compared
to 1,430 at the same time in 2003.&nbsp; The
remainder of the increase in the other noninterest expense categories was primarily
due to the inclusion of amounts related to PFC and GAF for the full quarter.<br>&nbsp;<br>
Income tax expense decreased $9.6 million for the third quarter of 2004
compared to the third quarter of 2003.&nbsp;
This variance included the tax effect of $10.3 million on the previously
mention FHLB prepayment penalty.&nbsp; Tax
expense for the third quarter of 2004 was positively impacted by an increase in
tax-exempt income and tax credits compared to 2003 levels.&nbsp; The Corporation's effective tax rate was
68.5% for the third quarter of 2004 compared to 20.2% for the corresponding
period of 2003.<br>
<br>
<br>
<br>
28</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>LIQUIDITY<br>
</u><br>
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.&nbsp; In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans. As an additional
secondary source, short-term liquidity needs may be provided through the use of
overnight Federal funds purchased, borrowings through use of lines available
for repurchase agreements and borrowings from the Federal Reserve Bank.&nbsp; Additionally, the Corporation's banking
subsidiary is a member of the Federal Home Loan Bank and may borrow under
overnight and term borrowing arrangements.&nbsp;
The sale of earning assets may also provide an additional source of
liquidity.&nbsp; In addition to the
previously described funding sources, the Corporation also has the ability to
access the capital markets.<br>
<br>
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources.&nbsp;
The Corporation maintains a liquidity management policy to manage this
risk.&nbsp; This policy identifies the primary
sources of liquidity, establishes procedures for monitoring and measuring liquidity
and quantifies minimum liquidity requirements based on board approved
limits.&nbsp; The policy also includes a
liquidity contingency plan to address funding needs to maintain liquidity under
a variety of business conditions.&nbsp; The
Corporation's liquidity position is monitored by the Asset/Liability Management
Committee (&quot;ALCO&quot;).<br>
<br>
At September 30, 2004, total interest-earning assets were $5,814.6 million, up
from the $4,903.7 million recorded at December 31, 2003.&nbsp; The increase of $910.9 million included interest-earning
assets in the amount of $820.8 million that were assumed in the acquisition of
GAF.&nbsp; Excluding the acquisition of GAF,
total loans (net of unearned income) increased $175.9 million for the first
nine months of 2004.&nbsp; The majority of
the loan increases were in commercial and installment loans.&nbsp; The Corporation's auto lease portfolio
reflected decreases of $12.0 million for the first nine months of 2004 since
the Corporation discontinued its automobile leasing activities during
2003.&nbsp; Investment securities, excluding
the acquisition of GAF and the effect of the GAF purchase accounting
adjustments, decreased $88.8 million for the first nine months of 2004.&nbsp; <br>
<br>
The Corporation's long-term liquidity source is a large core deposit base and a
strong capital position.&nbsp; Core deposits
are the most stable source of liquidity that a bank can have due to long-term
relationships with a deposit customer.&nbsp;
Total deposits increased $563.1 million for the first nine months of
2004.&nbsp; This included an increase of $524.2
million for the deposits that were assumed in the acquisition of GAF and an
increase due to purchase accounting adjustments in the amount of $5.4 million
that were recorded as part of the GAF acquisition transaction.&nbsp; Excluding the GAF acquisition activity,
noninterest-bearing demand deposits and savings deposits increased by $26.7
million and $127.0 million, respectively, while time deposits decreased by
$120.3 million. <br><br><br>&nbsp;<br>
<br>
<br>
<br>
29</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>LIQUIDITY</u> (continued)<u><br>
<br>
</u>The total increase in short-term borrowings of $342.7 million included
$53.6 million that was acquired from GAF.&nbsp;
Excluding the acquisition growth from GAF, long-term borrowings
decreased $136.8 million during the first nine months of 2004.&nbsp; During the third quarter of 2004, the
Corporation prepaid $440 million of FHLB advances to minimize the impact of maturities
in any one year.&nbsp; The advances were
replaced with short-term borrowings and other long-term FHLB advances with
lower interest rates.<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, 2004, securities available for sale had an amortized cost of $2,176.4
million and an approximate fair value of $2,198.9 million.<br>
<br>
<b>Interest Sensitivity</b><br>
<br>
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.&nbsp; The
Corporation's market risk is composed primarily of interest rate risk.&nbsp; Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.<br>
<br>
The objective of interest rate sensitivity management is to maintain an
appropriate balance between the stable growth of income and the risks
associated with maximizing income through interest sensitivity imbalances.&nbsp; While no single number can accurately
describe the impact of changes in interest rates on net interest income,
interest rate sensitivity positions, or &quot;gaps&quot;, when measured over a
variety of time periods, can be informative.<br>
<br>
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.&nbsp; If interest-sensitive assets
(&quot;ISA&quot;) exceed interest-sensitive liabilities (&quot;ISL&quot;)
during the prescribed time period, a positive gap results.&nbsp; Conversely, when ISL exceed ISA during a
time period, a negative gap results.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
30</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
The cumulative gap at the 365-day repricing period was negative in the amount
of $1,352.2 million or 21.60% of total assets at September 30, 2004.&nbsp; A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period.&nbsp; A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.&nbsp; In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when interest
rates rise, a negative gap should tend to affect earnings negatively.<br>
<br>
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.&nbsp; The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.<br>
<br>
The following tables list the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of September
30, 2004, and December 31, 2003 (dollar amounts in thousands):<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>September
  30, 2004</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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>Loans</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>1,333,668&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>182,017&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>324,021&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,839,706&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>163,892&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>84,177&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>208,271&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>456,340&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,292&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-0-</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,292&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,505,852&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>266,194&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>532,292&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>2,304,338&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>190,910&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>281,785&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>311,008&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>783,703&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>1,817,386&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,817,386&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,035,937&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;4,648&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;14,834&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>1,055,419&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>3,044,233&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>286,433&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>325,842&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>3,656,508&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>(1,538,381)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>(20,239)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>206,450&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>(1,352,170)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <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 width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>0.49&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.93&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.63&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.63&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td width=22 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=94 valign=bottom>
  <p align=right><font size=1
  face=Courier>24.58%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.32%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>3.30%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>21.60%</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>
31</font></p>


<font size=3
face=Courier>

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

</font>

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

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

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

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

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

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

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve-month period.&nbsp; Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors.&nbsp;
Additional simulations are produced estimating the impact on net interest
income of a gradual 200 basis point (2.00%) movement upward or downward over a
12 month time frame which cannot result in more than a 5.00% decline in net
interest income when compared to the base case. &nbsp;The analysis at September
30, 2004 indicated that a 200 basis point (2.00%) increase in interest rates
would decrease net interest income by 110 basis points (1.10%) below the base
case scenario and a 200 basis point (2.00%) decline in interest rates would
decrease net interest income by 307 basis points (3.07%) below the base case
scenario, over the next twelve months, both within policy limits.<br>
<br>
The Corporation's &quot;Asset/Liability Management Committee&quot;
(&quot;ALCO&quot;) is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.&nbsp; The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.&nbsp; The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.&nbsp; The ALCO strategies are established by the
Corporation's senior management.&nbsp; <br>
<br>
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003 and two additional interest rate swap transactions during the
second quarter of 2004.&nbsp; Each of the
swap transactions involved hedging adjustable LIBOR based commercial loans with
a receive-fixed and pay-floating interest rate swap of $25 million notional
amount, for a total of $75 million.&nbsp; The
original maturities of the swap transactions ranged from 2.5 to 3 years.&nbsp; The purpose of the swaps was to reduce the
Corporation's exposure to further declines in interest rates.&nbsp; The ALCO continues to evaluate the use of
additional derivative instruments to protect against the risk of adverse price
or interest rate movements on the value of certain assets and liabilities.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
33</font></p>


<font size=3
face=Courier>

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

</font>

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=161 colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2004</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=295 colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td width=50 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  on nonaccrual basis</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>11,784&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>18,430&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Past
  due loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>12,779&nbsp;</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>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Renegotiated
  loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;185&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;198&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  nonperforming loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;24,748&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;32,577&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Other
  real estate owned</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,295&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,698&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  outstanding at end of period</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,533,509&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,597,443&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  loans outstanding (year-to-date)</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3,159,920&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,630,009&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Nonperforming
  loans as a percent of total loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.70%</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>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7,295&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>10,420&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>6,501&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8,733&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs as a percent of average loans outstanding (annualized)</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.27%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.44%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses as a percent of net charge-offs</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>112.21%</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>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of average loans outstanding</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.37%</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>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of end-of-period loans outstanding</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.22%</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>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of nonperforming loans</font></p>
  </td>
  <td width=50 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>174.41%</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>
 </tr>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest that is due according to the contractual terms of
the loan.&nbsp; Loan impairment is measured
based on the present value of expected cash flows discounted at the loan's
effective interest rate or, as a practical expedient, at the loan's observable
market price or the fair value of the collateral if the loan is collateral
dependent.&nbsp; Payments received on
impaired loans are applied against the recorded investment in the loan.&nbsp; For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash
basis.&nbsp; Impaired loans include loans on
a nonaccrual basis and renegotiated loans.<br>
<br>
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at September
30:</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=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2004</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;<u>2003</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recorded
  investment in impaired loans <br>
  &nbsp;&nbsp;at end of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>11,969&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>18,628</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date average balance of impaired <br>
  &nbsp;&nbsp;loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,023&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>21,511</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses related to <br>
  &nbsp;&nbsp;impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,293&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,209</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with an allocation of the<br>
  &nbsp;&nbsp;allowance for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7,296&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>
  14,453</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with no allocation of the&nbsp;<br>
  &nbsp;&nbsp;allowance&nbsp;for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4,673&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>
  4,175</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date income recorded on impaired <br>
  &nbsp;&nbsp;loans on a cash basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>191&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>
  487</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, 2004, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at September 30, 2004, decreased $7.8 million compared to
September 30, 2003 levels as deceases were recorded in all categories.&nbsp; The most significant improvements in
nonperforming loans since September 30, 2003, occurred during the fourth quarter
of 2003.&nbsp; <br><br></font></p>

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

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
The decrease in nonaccrual loan levels of $6.6 million was primarily due to
decreases in nonaccrual commercial loans.&nbsp;
Past due loans for the 2004 period decreased $1.2 million compared to
the corresponding period of 2003.&nbsp;
Decreases in past due commercial loans were partially offset by increase
in past due loans secured by residential real estate.&nbsp; Nonperforming loans as a percent of total loans improved to 0.70%
at September 30, 2004 compared to 1.25% at September 30, 2003.&nbsp; The allowance for credit losses as a percent
of nonperforming loans was 174.41% and 111.07%, respectively for the same
periods.<br>
<br>
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.&nbsp; This process
includes close monitoring of watch list credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.&nbsp; Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.&nbsp; Management also attempts to minimize loan losses by analyzing and
modifying collection techniques on a periodic basis.&nbsp; Management believes that the allowance for credit losses and
nonperforming loans remained safely within acceptable levels.<br>
<br>
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date.&nbsp;
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.&nbsp; The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.&nbsp; These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.<br>
<br>
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits.&nbsp;
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss provisions may be necessary due to changes in management estimates
and assumptions about asset impairment, information about borrowers that
indicate changes in the expected future cash flows or changes in economic
conditions.&nbsp; The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.&nbsp; In addition, the Corporation maintains a
system of internal controls which are<br>
<br>
<br>
<br>
<br>
36</font></p>


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
independently monitored and tested by internal audit and loan review staff to
ensure that the loss estimation model is maintained in accordance with internal
policies and procedures, as well as generally accepted accounting principles. <br>
<br>
<u>CAPITAL RESOURCES</u><br>
<br>
Equity capital stood at $527.0 million at September 30, 2004, an increase of
$96.1 million compared to December 31, 2003.&nbsp;
Dividends declared reduced equity by $32.0 million during the first nine
months of 2004, while net income increased equity by $22.1 million for the same
period.&nbsp; Additional advances by the Corporation's
Employee Stock Ownership Plan (&quot;ESOP&quot;) to fund the acquisition of the
Corporation's common stock for future distribution as employee compensation,
net of long-term debt payments and fair value adjustments to unearned ESOP
shares, decreased equity by $4.9 million.&nbsp;
Amounts paid to fund the discount on reinvested dividends reduced equity
by $601 thousand during the first nine months of 2004.&nbsp; The market value adjustments to securities
available for sale and the loan swaps decreased equity by $565 thousand and
increased equity by $298 thousand, respectively, for the period.&nbsp; Proceeds from the reissuance of treasury
shares to fund stock options exercised increased equity by $6.4 million during
2004, while the tax benefit related to stock options increased equity by $415
thousand.&nbsp; Equity capital was also
impacted during 2004 by an increase of $203 thousand from the reissuance of
treasury shares to fund contingent payments related to the acquisition of First
Commonwealth Financial Advisors, which consummated in 2002.&nbsp; This contingent payment of the Corporation's
common stock was the second of four scheduled annual installments.&nbsp; Equity capital was also impacted during the
first nine months of 2004 by the acquisition of GAF.&nbsp; The issuance of common stock related to the acquisition of GAF
resulted in an increase to equity capital in the amount of $105.2 million,
while the conversion of GAF's investment in FCFC stock into treasury shares
resulted in a decrease of $514 thousand to equity capital.<br>
<br>
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.&nbsp; The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.&nbsp; In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.<br>
<br>
The Federal Reserve Board has issued risk-based capital adequacy guidelines
which are designed principally as a measure of credit risk.&nbsp; These guidelines require:&nbsp; (1) at least 50% of a banking organization's
total capital be common and other &quot;core&quot; equity capital (&quot;Tier I
Capital&quot;); (2) assets and off-balance-sheet items be weighted according to
risk; (3) the total capital to risk-weighted assets ratio be at least 8%; and
(4) a minimum leverage ratio of Tier I capital to average total assets.<br>
<br>
The minimum leverage ratio is not specifically defined, but is generally
expected to be 3-5 percent for all but the most highly rated banks, as
determined by a regulatory rating system.<br>
<br>
37</font></p>


<font size=3
face=Courier>

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

</font>

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Amount<br>
  <u>(in thousands)<br><br></u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Percent of<br>
  <u>Adjusted Assets<br><br></u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>470,804&nbsp;</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>11.6%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>162,418&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4.0%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>513,966&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>12.7%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>324,836&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.0%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>470,804&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>7.7%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>183,717&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3.0%</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.&nbsp; At September 30,
2004, the Corporation's banking and trust subsidiaries exceeded those
requirements.<br>
<br>
<u>ITEM 3</u>.&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>
<u>ITEM 4</u>. CONTROLS AND PROCEDURES<br>
<br>
The Corporation carried out an evaluation, under the supervision and with the
participation of the Corporation's management, including the Chief Executive
Officer and the Chief Financial Officer, of the effectiveness of the design and
operation of the Corporation's disclosure controls and procedures as of the end
of the period covered by this report pursuant to Exchange Act Rule 13a-15.&nbsp; Based upon that evaluation, the
Corporation's Chief Executive Officer and Chief Financial Officer concluded
that the Corporation's disclosure controls and procedures are effective in
timely alerting them to material information relating to the Company (including
its consolidated subsidiaries) required to be included in the Corporation's
periodic Securities and Exchange Commission filings.&nbsp; In addition, no significant change in the Corporation's internal
control over financial reporting was identified in connection with this
evaluation that has materially affected or is reasonably likely to materially
affect internal control over financial reporting.</font></p>

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


<font size=3
face=Courier>

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

</font>

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

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

<p><font size=3 face=Courier><br>
<u>ITEM 4</u>. CONTROLS AND PROCEDURES (Continued)<br>
<br>
Disclosure controls and procedures are controls and other procedures that are
designed to ensure that information required to be disclosed by the Corporation
in the reports that the Corporation files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the Securities and Exchange Commission's rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Corporation
in the reports that the Corporation files under the Exchange Act is accumulated
and communicated to the Corporation's management, including the Corporation's
Chief Executive Officer and Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure.<br><br></font></p>

<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>


<font size=3
face=Courier>

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

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=103 valign=top>
  <p><u><font size=3 face=Courier>ITEM
  1</font></u>.</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><u><font size=3 face=Courier>ITEM
  2</font></u>.</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>UNREGISTERED
  SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</font></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0 width=739>
 <tr>
  <td width=739 colspan=5 valign=top>
  <p align=center><u><font size=3
  face=Courier>Purchases of Equity Securities</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=173 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p><u><font size=3 face=Courier>&nbsp;&nbsp;Period&nbsp;&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>(a) Total<br>
  Number of<br>
  Shares<br>
  <u>Purchased</u></font></p>
  </td>
  <td width=127 valign=bottom>
  <p align=center><font size=3
  face=Courier>(b) Average<br>
  Price Paid<br>
  <u>&nbsp;Per Share&nbsp;</u></font></p>
  </td>
  <td width=151 valign=bottom>
  <p align=center><font size=3
  face=Courier>(c) Total<br>
  Number of<br>
  Shares<br>
  Purchased as<br>
  Part of<br>
  Publicly<br>
  Announced<br>
  Plans or<br>
  <u>&nbsp;&nbsp;Programs&nbsp;&nbsp;</u></font></p>
  </td>
  <td width=173 valign=bottom>
  <p align=center><font size=3
  face=Courier>(d) Approximate<br>
  Dollar Value<br>
  of Shares that<br>
  May Yet Be<br>
  Purchased<br>
  Under the Plans<br>
  <u>&nbsp;&nbsp;or Programs&nbsp;&nbsp;</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=127 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=173 valign=bottom>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p><font size=3 face=Courier>July
  1, 2004-<br>
  July 31, 2004</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>35,000</font></p>
  </td>
  <td width=127 valign=bottom>
  <p align=right><font size=3
  face=Courier>$12.96</font></p>
  </td>
  <td width=151 valign=bottom>
  <p align=right><font size=3
  face=Courier>35,000</font></p>
  </td>
  <td width=173 valign=bottom>
  <p align=right><font size=3
  face=Courier>$13,546,519.00</font></p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p><font size=3 face=Courier><br>
  August 1, 2004-<br>
  August 31, 2004</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>318,300</font></p>
  </td>
  <td width=127 valign=bottom>
  <p align=right><font size=3
  face=Courier>$12.97</font></p>
  </td>
  <td width=151 valign=bottom>
  <p align=right><font size=3
  face=Courier>318,300</font></p>
  </td>
  <td width=173 valign=bottom>
  <p align=right><font size=3
  face=Courier>$&nbsp;9,418,997.96</font></p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p><font size=3 face=Courier><br>
  September 1, 2004-<br>
  September 30, 2004</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;68,500</font></u></p>
  </td>
  <td width=127 valign=bottom>
  <p align=right><font size=3
  face=Courier>$13.62</font></p>
  </td>
  <td width=151 valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;68,500</font></u></p>
  </td>
  <td width=173 valign=bottom>
  <p align=right><font size=3
  face=Courier>$&nbsp;8,486,285.05</font></p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=127 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=151 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=173 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=187 valign=bottom>
  <p><font size=3 face=Courier>Total</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>421,800</font></u></p>
  </td>
  <td width=127 valign=bottom>
  <p align=right><font size=3
  face=Courier>$13.07</font></p>
  </td>
  <td width=151 valign=bottom>
  <p align=right><u><font size=3
  face=Courier>421,800</font></u></p>
  </td>
  <td width=173 valign=bottom>
  <p align=right><font size=3
  face=Courier>$&nbsp;8,486,285.05</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
All shares were acquired by the Corporation's Employee Stock Ownership Plan
(&quot;ESOP&quot;) through a publicly announced plan.&nbsp; The plan for the ESOP to acquire shares was announced through a
press release dated July 26, 2004, and a subsequent 8-K filing with the
Securities and Exchange Commission on July 27, 2004.&nbsp; The plan is to acquire up to $14 million of the Corporation's
common stock in the open market.&nbsp; The
plan does not have an expiration date.<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <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><u><font size=3 face=Courier>ITEM
  3</font></u>.</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><u><font size=3 face=Courier>ITEM
  4</font></u>.</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><u><font size=3 face=Courier>ITEM
  5</font></u>.</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>
</table>

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


<font size=3
face=Courier>

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

</font>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <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><u><font size=3 face=Courier>ITEM
  6</font></u>.</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>EXHIBITS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 906 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 906 of the Sarbanes-Oxley Act
  of 2002<br><br></font></p>
  </td>
 </tr>
</table>

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

<p></p>

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


<font size=3
face=Courier>

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

</font>

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

<p align=center><font size=3
face=Courier>&nbsp;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 4, 2004</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Joseph
  E. O'Dell, President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; November 4, 2004</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>John
  J. Dolan, Executive Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

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


<font size=3
face=Courier>

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

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



</body>

</html>
[{"type": "10-Q", "sequence": "1", "filename": "fcfc10q_doc.htm", "description": "FCFC 10-Q AS OF 09/30/2004", "secsgml_size_bytes": 395416}]
{"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": "041120039"}, "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
UNITED STATES 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, 2004
OR
( )
TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
  the transition period from
to
Commission File Number
0-11242
First Commonwealth Financial
Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
25-1428528
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
22
  North Sixth Street
Indiana, PA  15701
(Address of principal executive
  offices)
(Zip Code)
724-349-7220
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes
X
No
.
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
October 31, 2004, was 69,594,838.
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.....................
17
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK.......................................
38
ITEM 4.
CONTROLS AND PROCEDURES.....................................
38
PART II - OTHER INFORMATION
ITEM 1.
LEGAL PROCEEDINGS..............................................
40
ITEM 2.
UNREGISTERED SALES OF EQUITY SECURITIES
AND USE OF PROCEEDS........................................
40
ITEM 3.
DEFAULTS UPON SENIOR SECURITIES................................
40
ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS............
40
ITEM 5.
OTHER INFORMATION..............................................
40
ITEM 6.
EXHIBITS.......................................................
41
Signatures.....................................................
42
Exhibits
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
September
  30,
2004
December
  31,
2003
ASSETS
Cash and due
  from banks on demand........................
$
79,833
$
82,510
Interest-bearing
  bank deposits...........................
8,292
5,362
Securities available
  for sale, at market.................
2,198,856
1,969,176
Securities held
  to maturity, at cost, (Market value $78,315 in
2004 and $109,609 in 2003).............................
73,904
104,254
Loans....................................................
3,533,803
2,825,337
Unearned
  income........................................
(294)
(455)
Allowance
  for credit losses............................
(43,162)
(37,385)
Net
  loans..........................................
3,490,347
2,787,497
Premises and
  equipment...................................
56,576
46,538
Other real
  estate owned..................................
2,295
1,866
Goodwill.................................................
128,229
29,854
Amortizing
  intangibles, net..............................
18,079
3,256
Other assets.............................................
202,366
158,882
Total
  assets.........................................
$
6,258,777
$
5,189,195
LIABILITIES
Deposits (all
  domestic):
Noninterest-bearing....................................
$
475,183
$
408,647
Interest-bearing.......................................
3,376,168
2,879,628
Total
  deposits.......................................
3,851,351
3,288,275
Short-term
  borrowings....................................
976,873
634,127
Other
  liabilities........................................
38,655
41,875
Subordinated
  debentures..................................
108,250
75,304
Other long-term
  debt.....................................
756,626
718,668
Total
  long-term debt.................................
864,876
793,972
Total
  liabilities....................................
5,731,755
4,758,249
SHAREHOLDERS' EQUITY
Preferred
  stock, $1 par value per share, 3,000,000 shares
authorized, none issued................................
-0-
-0-
Common stock $1
  par value per share, 100,000,000 shares authorized,
71,978,568 and 63,704,445 shares issued at September
  30, 2004 and
December 31, 2003 respectively; 69,568,513 and
  60,712,020 shares
outstanding at September 30, 2004 and December
  31, 2003
respectively...........................................
71,978
63,704
Additional
  paid-in capital...............................
175,112
79,581
Retained
  earnings........................................
302,327
312,261
Accumulated
  other comprehensive income...................
14,906
15,173
Treasury stock
  (2,410,055 shares at September 30, 2004 and 2,992,425 at
December 31, 2003, at cost)............................
(30,437)
(37,779)
Unearned ESOP
  shares.....................................
(6,864)
(1,994)
Total
  shareholders' equity...........................
527,022
430,946
Total
  liabilities and shareholders' equity...........
$
6,258,777
$
5,189,195
The
accompanying notes are an integral part of these consolidated financial
statements.
3
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
For
  the Quarter
Ended September 30,
For
  the 9 Months
Ended September 30,
Interest Income
2004
2003
2004
2003
Interest
  and fees on loans....................
$
51,472
$
40,089
$
136,937
$
123,641
Interest
  and dividends on investments:
Taxable
  interest ....
20,019
16,335
55,853
49,940
Interest
  exempt from Federal
income taxes........
3,048
2,690
8,421
7,900
Dividends............
391
489
1,172
1,614
Interest
  on Federal funds sold...............
2
1
4
3
Interest
  on bank deposits.................
8
1
23
10
Total
  interest income
74,940
59,605
202,410
183,108
Interest Expense
Interest
  on deposits...
15,421
14,659
42,882
46,417
Interest
  on short-term borrowings...............
3,639
1,708
7,264
4,858
Interest
  on company obligated mandatorily
redeemable capital securities of
subsidiary trust.....
-0-
832
-0-
2,494
Interest
  on subordinated debentures...............
1,829
-0-
4,910
-0-
Interest
  on other long-term debt................
7,992
7,417
26,053
22,063
Total
  interest on long-term debt...........
9,821
8,249
30,963
24,557
Total
  interest expense.........................
28,881
24,616
81,109
75,832
Net Interest Income...
46,059
34,989
121,301
107,276
Provision
  for credit losses...................
2,675
3,495
7,295
10,420
Net interest income after
  provision for
credit losses
43,384
31,494
114,006
96,856
Other Income
Securities
  gains.......
51
166
4,046
5,621
Trust
  income...........
1,413
1,342
4,123
3,811
Service
  charges on deposit accounts.........
4,059
3,447
11,019
9,551
Gain
  on sale of branches.........................
-0-
3,062
-0-
3,062
Insurance
  commissions..
1,046
910
2,715
2,555
Income
  from bank owned life
insurance............
1,333
1,136
3,847
3,234
Merchant
  discount income.........................
988
959
2,723
2,666
Card
  related interchange income...................
986
634
2,496
1,933
Other
  income...........
1,927
2,201
5,514
5,693
Total
  other income...
11,803
13,857
36,483
38,126
Other Expenses
Salaries
  and employee benefits.................
17,303
15,163
51,147
45,644
Net
  occupancy expense..
2,540
2,023
6,894
5,768
Furniture
  and equipment expense..................
3,064
2,522
8,290
7,618
Data
  processing expense
1,079
688
2,805
1,836
Pennsylvania
  shares tax expense..................
1,140
1,075
3,414
3,216
Intangible
  amortization
565
3
877
16
Litigation
  settlement (recovery)...............
-0-
-0-
-0-
(610)
Merger
  and integration charges..................
(39)
-0-
2,125
-0-
Debt
  prepayment fees...
29,495
-0-
29,495
-0-
Other
  operating expenses.........................
8,906
6,531
24,267
20,671
Total
  other expenses.
64,053
28,005
129,314
84,159
Income (loss) before income taxes..........
(8,866)
17,346
21,175
50,823
Applicable
  income taxes (benefit)................
(6,071)
3,511
(913)
10,257
Net Income (Loss).....
$
(2,795)
$
13,835
$
22,088
$
40,566
Average
  Shares Outstanding.........................
69,077,293
58,950,258
64,784,404
58,808,464
Average
  Shares Outstanding Assuming
Dilution..............
69,701,327
59,376,716
65,328,753
59,139,101
Per Share Data:
Basic
  earnings per share.........................
$
(0.04)
$
0.23
$
0.34
$
0.69
Diluted
  earnings per share....................
$
(0.04)
$
0.23
$
0.34
$
0.69
Cash
  dividends per share.........................
$
0.160
$
0.155
$
0.480
$
0.465
The
accompanying notes are an integral part of these consolidated financial
statements.
4
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP Shares
Total
Shareholders'
Equity
Balance
  December 31, 2002...................
$
62,525
$
64,885
$
296,165
$
25,851
$
(44,981)
$
(3,055)
$
401,390
Comprehensive
  income
Net
  income...........
-0-
-0-
40,566
-0-
-0-
-0-
40,566
Other
  comprehensive income, net of tax:
Unrealized
  holding 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 on
derivatives used in cash flow hedging
relationship arising during the period.................
-0-
-0-
-0-
106
-0-
-0-
106
Total
  other comprehensive income (loss).................
-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)
Net
  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.
5
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP
Shares
Total
Shareholders'
Equity
Balance
  December 31, 2003...................
$
63,704
$
79,581
$
312,261
$
15,173
$
(37,779)
$
(1,994)
$
430,946
Comprehensive
  income
Net
  income...........
-0-
-0-
22,088
-0-
-0-
-0-
22,088
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.................
-0-
-0-
-0-
2,048
-0-
-0-
2,048
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(2,613)
-0-
-0-
(2,613)
Unrealized
  holding gains on
derivatives used in cash flow hedging
relationship arising during the period.................
-0-
-0-
-0-
298
-0-
-0-
298
Total
  other comprehensive income (loss).................
-0-
-0-
-0-
(267)
-0-
-0-
(267)
Total
  comprehensive income.................
-0-
-0-
22,088
(267)
-0-
-0-
21,821
Cash
  dividends declared
-0-
-0-
(32,022)
-0-
-0-
-0-
(32,022)
Net
  increase in unearned ESOP shares............
-0-
-0-
-0-
-0-
-0-
(4,870)
(4,870)
Discount
  on dividend reinvestment plan purchases
-0-
(601)
-0-
-0-
-0-
-0-
(601)
Treasury
  stock acquired
-0-
-0-
-0-
-0-
(514)
-0-
(514)
Treasury
  stock reissued
-0-
(1,239)
-0-
-0-
7,856
-0-
6,617
Tax
  benefit of stock options................
-0-
415
-0-
-0-
-0-
-0-
415
Stock
  issued for acquisition............
8,274
96,956
-0-
-0-
-0-
-0-
105,230
Balance
  at September 30, 2004...................
$
71,978
$
175,112
$
302,327
$
14,906
$
(30,437)
$
(6,864)
$
527,022
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,
2004
2003
Operating Activities
Net income...............................................
$
22,088
$
40,566
Adjustments to
  reconcile net income to net cash provided by operating
activities:
Provision
  for credit losses ...........................
7,295
10,420
Depreciation
  and amortization..........................
6,618
5,651
Net
  gains on sales of assets...........................
(3,981)
(6,115)
Net
  gains on sale of branches..........................
-0-
(3,051)
Income
  from increase in cash surrender value of bank owned life insurance
(3,847)
(3,233)
Stock
  option tax benefit...............................
415
142
Changes,
  net of acquisition:
Decrease
  in interest receivable......................
1,307
2,536
Increase
  (decrease) in interest payable..............
403
(2,570)
Increase
  (decrease) in income taxes payable..........
(9,070)
1,053
Net
  decrease (increase) in loans held for sale.......
160
(1,386)
Change
  in deferred taxes.............................
(614)
(2,493)
Other-net............................................
(6,810)
(1,013)
Net
  cash provided by operating activities............
13,964
40,507
Investing Activities
Changes, net of
  acquisition:
Transactions
  with securities held to maturity:
Proceeds
  from sales....................................
-0-
-0-
Proceeds
  from maturities and redemptions...............
30,367
83,671
Transactions
  with securities available for sale:
Proceeds
  from sales....................................
102,018
50,634
Proceeds
  from maturities and redemptions...............
624,137
811,639
Purchases..............................................
(664,967)
(1,263,155)
Proceeds from
  sales of other assets......................
8,430
8,467
Acquisition of
  affiliate, net of cash received...........
(70,872)
-0-
Net (increase)
  decrease in time deposits with banks......
(1,016)
1,172
Net increase in
  loans....................................
(192,845)
(8,210)
Purchases of
  premises and equipment......................
(9,032)
(3,984)
Net
  cash used by investing activities................
(173,780)
(319,766)
Financing Activities
Changes, net of
  acquisition:
Repayments of
  other long-term debt.......................
(457,537)
(11,553)
Proceeds from
  issuance of other long-term debt...........
283,486
10,000
Repayments of
  subordinated debentures...........................................................
(8,292)
-0-
Proceeds from
  issuance of subordinated debentures........
41,238
-0-
Discount on
  dividend reinvestment plan purchases.........
(601)
(519)
Dividends paid...........................................
(30,605)
(27,440)
Net increase in
  Federal funds purchased..................
10,700
21,700
Net increase in
  other short-term borrowings..............
278,451
164,592
Sale of
  branches, net of cash received...................
-0-
(21,329)
Net increase in
  deposits.................................
33,885
135,920
Proceeds from
  sale of treasury stock.....................
6,414
3,358
Net
  cash provided by financing activities............
157,139
274,729
Net
  decrease in cash and cash equivalents............
(2,677)
(4,530)
Cash and cash
  equivalents at January 1...................
82,510
81,114
Cash and cash
  equivalents at September 30................
$
79,833
$
76,584
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, 2004
(Unaudited)
NOTE 1 Management Representation
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries ("the
Corporation").  All significant
intercompany transactions and balances have been eliminated.  The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.  The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.  Actual realized amounts could
differ from those estimates.  In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of September 30, 2004
and the results of operations for the three month and nine month periods ended
September 30, 2004 and 2003, and statements of cash flows and changes in
shareholders' equity for the nine month periods ended September 30, 2004 and
2003.  The results of operations for the
three month and nine month periods ended September 30, 2004 and 2003 are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.  These interim
financial statements should be read in conjunction with the Corporation's 2003
Annual Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.  The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.
NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)
2004
2003
Cash
  paid during the first nine months of the year for:
Interest
$
80,706
$
78,402
Income
  Taxes
$
8,528
$
11,555
Noncash
  investing and financing activities:
ESOP
  loan reductions
$
643
$
804
ESOP
  borrowings
$
5,513
$
-0-
Loans
  transferred to other real estate owned
and repossessed assets
$
3,521
$
3,458
Gross
  decrease in market value adjustment
to securities available for sale
$
(869)
$
(13,179)
Gross
  increase in market value adjustment of
derivatives instruments
$
458
$
163
Treasury
  stock reissued for business
combination
$
203
$
203
8
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 3 Comprehensive Income Disclosures
The following table identifies the related tax effects allocated to each
component of other comprehensive income in the Statements of Changes in
Shareholder's Equity: (dollar amounts in thousands)
September
  30, 2004
September
  30, 2003
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Unrealized gains (losses)
on securities:
Unrealized holding gains
(losses) arising during
the period
$
3,151
$
(1,103)
$
2,048
$
(7,648)
$
2,677
$
(4,971)
Less: reclassification
adjustment for gains
realized in net income
(4,020)
1,407
(2,613)
(5,531)
1,936
(3,595)
Unrealized gains on
derivatives used in cash
flow hedging relationships:
Unrealized holding gains
arising during the period
458
(160)
298
163
(57)
106
Other comprehensive income (loss)
$
(411)
$
144
$
(267)
$
(13,016)
$
4,556
$
(8,460)
NOTE 4 Accounting for Stock Options Granted
Current accounting guidelines permit two alternative methods of accounting for
stock-based compensation, the intrinsic value method of APB Opinion No. 25
"Accounting for Stock Issued to Employees: ("APB 25") and the
fair value method of FASB Statement No. 123 "Accounting for Stock-Based
Compensation" ("FASB No. 123"). 
In December 2002, the Financial Accounting Standards Board
("FASB") issued Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure" ("FAS No. 148").  FAS No. 148 did not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method but required all companies with stock-based compensation to provide
additional disclosures, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB No. 25.
As permitted under FAS No. 123, the Corporation has elected to use the
intrinsic value method to measure stock based compensation under APB 25 and to
disclose in a footnote to the financial statements, net income and earnings per
share on a pro forma basis as if the fair value methodology of FAS No. 123 had
been implemented.  No stock-based
employee compensation expense is reflected in the Corporation's net income as
reported in the Consolidated Statements of Income because all stock options
granted under the Corporation's plan had an exercise price equal to the market
value of the underlying common stock on the date of the grant.
9
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 4 Accounting for Stock Options Granted
(continued)
The following table illustrates the effect on net income and earnings per share
as if the Corporation had applied the fair value recognition provisions of FAS
No. 123 to stock-based compensation:
(Dollar amounts in thousands,
except per share data)
Three
  months ended
September 30,
2004
2003
Net Income, as reported
$
(2,795)
$
13,835
Deduct: Total stock-based compensation
expense determined under fair value based method
for all awards, net of related tax effects
-0-
(338)
Pro forma net income
$
(2,795)
$
13,497
Earnings per share:
Basic - as reported
$
(0.04)
$
0.23
Basic - pro forma
$
(0.04)
$
0.23
Diluted - as reported
$
(0.04)
$
0.23
Diluted - pro forma
$
(0.04)
$
0.23
Average shares outstanding
69,077,293
58,950,258
Average shares outstanding assuming dilution
69,701,327
59,376,716
(Dollar amounts in thousands,
except per share data)
Nine
  months ended
September 30,
2004
2003
Net Income, as reported
$
22,088
$
40,566
Deduct: Total stock-based compensation
expense determined under fair value based method
for all awards, net of related tax effects
(38)
(1,014)
Pro forma net income
$
22,050
$
39,552
Earnings per share:
Basic - as reported
$
0.34
$
0.69
Basic - pro forma
$
0.34
$
0.67
Diluted - as reported
$
0.34
$
0.69
Diluted - pro forma
$
0.34
$
0.67
Average shares outstanding
64,784,404
58,808,464
Average shares outstanding assuming dilution
65,328,753
59,139,101
10
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
Note 5 Restructuring Charges
The Corporation incurred restructuring charges of $6,140 thousand during 2002
in accordance with EITF 94-3.  These
restructuring charges resulted from the merger of the charters of the
Corporation's two wholly-owned commercial banks (First Commonwealth Bank and
Southwest Bank) and the adoption of a new common brand and identity for all
financial services subsidiaries.  The
largest component of these charges was $4,652 thousand of employee separation
costs consisting of severance packages for 95 employees from various affiliates
of the Corporation including all levels of staff from the executive management
level to back office support staff. These amounts were included as
restructuring charges, a component of Other Expenses on the Consolidated
Statements of Income during 2002.
During 2003 and 2002 actual termination benefits paid and charged against the
total severance liability were $2,823 thousand and $1,263 thousand,
respectively, leaving a remaining unpaid liability for severance costs of $566
thousand at December 31, 2003.  During
the first nine months of 2004, monthly severance payments totaling $470
thousand were made, reducing the outstanding severance liability to $96
thousand at September 30, 2004.  No
additional severance accruals or adjustments relating to the 2002 restructuring
charges were recorded during the first nine months of 2004.
NOTE 6 Merger and Integration Charges
In the first nine months of 2004, the Corporation recorded merger and
integration charges totaling $2,125 thousand ($1,381 thousand, net of
taxes).  The merger and integration
charges related to the acquisition of Pittsburgh Financial Corp.
("PFC"). The charges included $485 thousand related to the write-off
of the unamortized capitalized costs for the subordinated debentures that were
previously issued by PFC and were called and paid off in January of 2004.  Also included in the merger and integration
charges were $1,640 thousand in salary and benefit severance expenses that were
accrued during the first nine months of 2004. 
The severance costs were for 23 employees whose positions were
eliminated as part of the acquisition.
NOTE 7 New Accounting Pronouncements
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46"), "Consolidation of Variable Interest Entities," and in
December 2003, issued FIN 46 (Revised 2003) ("FIN 46R").  FIN 46R clarified some of the provisions of
FIN 46 and exempted certain entities from the original requirements of FIN
46.  As defined by FIN 46 a variable
interest entity ("VIE") is a corporation, partnership, trust or any
other legal structure used for business purposes that either (a) does not have
equity investors with voting rights or (b) has equity investors that do not
provide sufficient financial resources for the entity to support its
activities.  Under FIN 46R, an entity
that holds a variable interest in a VIE is required to consolidate the VIE if
the entity is subject to a majority of the risk of loss from the VIE's
activities, is entitled to receive a majority of the entity's residual returns
or both.  FIN 46R was implemented for the
quarter ended March 31, 2004.
11
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 7 New Accounting Pronouncements
(continued)
As part of its community reinvestment initiatives, the Corporation invests
in qualified affordable housing projects as a limited partner.  The Corporation receives federal affordable
housing tax credits and rehabilitation tax credits for these limited
partnership investments.  The
Corporation's maximum potential exposure to these partnerships is $4,947
thousand, consisting of the limited partnership investments as of September 30,
2004.  The Corporation has determined
that these investments will not be consolidated but continue to be accounted
for under the equity method whereby the Corporation's portion of partnership
losses are recognized as incurred.  The
adoption of FIN 46 or FIN 46R has not had a material impact on the
Corporation's financial condition or results of operation.
In March 2004, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 105 ("SAB 105"), "Application of
Accounting Principles to Loan Commitments."  SAB 105 was issued to inform the SEC's registrants of the SEC
staff's view that the fair value of the recorded loan commitments that are
required to follow derivative accounting under FASB Statement No. 133
("FAS No. 133"), "Accounting for Derivative Instruments and
Hedging Activities," should not consider the expected future cash flows
related to the associated servicing of the future loan.  The SEC staff believes that incorporating
expected future cash flows related to the associated servicing of the loan
essentially results in the immediate recognition of a servicing asset, which is
only appropriate once the servicing asset has been contractually separated from
the underlying loan by sale or by securitization of the loan with servicing
retained.  The provisions of SAB 105
were to be applied to loan commitments accounted for as derivatives that were
entered into after March 31, 2004; and therefore, was implemented during the
second quarter of 2004.  The adoption of
SAB 105 has not and is not expected to have a material impact on the
Corporation's financial condition or results of operations.
In May 2004, the FASB issued FASB Staff Position No. FAS 106-2 ("FSP FAS
106-2"), "Accounting and Disclosure Requirements Related to the
Medicare Prescription Drug, Improvement and Modernization Act of
2003."  FSP FAS 106-2 supersedes
the FASB Staff Position No. FAS 106-1, which has the same title as FSP FAS
106-2.  FSP FAS 106-2 provides guidance
on the accounting for the effects of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003 ("the Act") for employers that
sponsor postretirement health care plans that provide prescription drug
benefits.  FSP FAS 106-2 also requires
employers to provide certain disclosures regarding the effect of the federal
subsidy provided by the Act.  This FSP
is effective for the first interim or annual period beginning after June 15,
2004.  The disclosure requirements of
FSP FAS 106-2 can be found in NOTE 9 (Post Retirement Benefit Plan of Acquired
Company) of this report.
12
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 7 New Accounting Pronouncements
(continued)
In March 2004, the Emerging Issues Task Force ("EITF") reached a
consensus on the remaining issues related to Emerging Issues Task Force Issue
03-1 ("EITF 03-1"), "The Meaning of Other-Than-Temporary
Impairment and Its Application to Certain Investments."  This guidance is applicable to debt and
equity securities that are within the scope of FASB Statement of Financial
Accounting Standards No. 115 ("FAS No. 115") and certain other
investments.  EITF 03-1 provides
clarification guidance to determine when an investment is considered impaired,
whether the impairment is other than temporary, and the measurement of an
impairment loss.  The guidance also
includes accounting considerations subsequent to the recognition of an
other-than-temporary impairment and requires certain disclosures about
unrealized losses that have not been recognized as other-than-temporary
impairments.
In September 2004, the FASB issued FASB Staff Position No. EITF Issue 03-1-1
("FSP EITF 03-1-1"), "Effective Date of Paragraphs 10-20 of EITF
Issue No. 03-1, "The Meaning of Other-Than-Temporary Impairment and Its
Application to Certain Investments"."  FSP EITF 03-1-1 delays the effective date for the measurement and
recognition guidance contained in paragraphs 10-20 of EITF 03-1 from reporting
periods beginning after June 15, 2004, until implementation guidance is
issued.  This delay does not suspend the
requirement to recognize other-than-temporary impairments as required by
existing authoritative literature.  Once
additional guidance has been released, the Corporation will evaluate the impact
of implementation on the Corporation's financial condition and results of
operations.
NOTE 8 Guarantees
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.  The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.  In
addition, many of these commitments are expected to expire without being drawn
upon; therefore the total commitment amounts do not necessarily represent
future cash requirements.  The table
below identifies the notional amounts of these guarantees at September 30,
2004:  (dollar amounts in thousands)
Financial
  standby letters of credit
$
20,580
Performance
  standby letters of credit
$
5,377
The current notional amounts outstanding above include financial standby
letters of credit of $613 thousand and performance standby letters of credit of
$863 thousand issued during the first nine months of 2004.  There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.
13
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 9 Post Retirement Benefit Plan of Acquired Company
In December 2003, the FASB issued Statement No. 132(R) "Employers'
Disclosures about Pensions and Other Postretirement Benefits" ("FAS
No. 132 (R)").  In addition to
annual disclosures that have already been implemented, the statement requires
interim reporting of the components of the net periodic benefit cost
recognized, which are included in this footnote.  Disclosure requirements for future benefit payments are effective
for fiscal years ending after June 15, 2004.
Employees of an acquired company were covered by a post retirement benefit
plan.  The net periodic benefit cost of
this plan for the quarter ended September 30 was as follows (dollar amounts in
thousands):
2004
2003
Service
  cost
$
-0-
$
-0-
Interest
  cost on projected benefit obligation
71
85
Amortization
  of transition obligation
1
1
Loss
  amortization
21
30
Net
  periodic benefit cost
$
93
$
116
The
net periodic benefit cost of this plan for the nine months ended September 30
was as follows (dollar amounts in thousands):
2004
2003
Service
  cost
$
-0-
$
-0-
Interest
  cost on projected benefit obligation
212
254
Amortization
  of transition obligation
2
2
Loss
  amortization
63
90
Net
  periodic benefit cost
$
277
$
346
This is an unfunded post retirement plan. 
The plan was curtailed in 1998. 
Future payments will only consist of benefit payments for life and
health insurance premiums for plan participants as of January 1, 2002.
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the
"Act") introduced a prescription drug benefit under Medicare Part D.
The Act also introduced a federal subsidy to sponsors of retiree health care
benefit plans that provide a prescription drug benefit that is at least
actuarially equivalent to Medicare Part D. 
As of the filing date of this quarterly report on Form 10-Q, the Corporation
has not been able to determine whether the prescription drug benefits provided
by the Corporation's postretirement plan are actuarially equivalent to Medicare
Part D.  As a result, the preceding
measures of the net periodic postretirement benefit cost do not reflect any
amounts associated with the federal subsidy. 
The impact of the Act, once determined, could affect reported
calculations.
14
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 10 Business Combination
Effective May 24, 2004, the Corporation acquired 100% of the outstanding shares
of GA Financial, Inc. ("GAF"), a savings and loan holding company,
which was headquartered in Whitehall, Pennsylvania.  GAF was the parent company of Great American Federal.  As a result of the acquisition, GAF merged
into First Commonwealth Financial Corporation and Great American Federal merged
into First Commonwealth Bank.
The acquisition of GAF is another significant step for the Corporation to
implement its strategy for expansion into the Pittsburgh, Pennsylvania
market.  The acquisition of Great
American Federal adds an additional customer base, which presents the
opportunity for First Commonwealth Bank to offer insurance, trust and financial
planning services to a larger base of customers.
Shareholders of GAF elected to receive $35.00 in cash or an equivalent of First
Commonwealth common stock for each GAF share owned.  The aggregate purchase price of the transaction was $176.6 million,
which included cash in the amount of $71.4 million and common stock valued at
$105.2 million.  The value of the
8,274,123 issued shares of First Commonwealth common stock was based on the
average market price of First Commonwealth's common stock over the ten-day
period ending three trading days prior to consummation of the acquisition.
The merger was accounted for as a purchase transaction whereby the identifiable
tangible and intangible assets and liabilities of GAF have been recorded at
their fair values as of the acquisition date. 
Purchase accounting valuation adjustments, which represent the
difference between the carrying value and the fair value of identifiable
tangible and intangible assets and liabilities, were recorded in the Consolidated
Balance Sheet.  As of September 30,
2004, preliminary goodwill in the amount of $96.9 million was recorded as a
result of the transaction.  This
included adjustments to goodwill that were recorded during the third quarter of
2004.
As prescribed under the purchase method of accounting, the results of GAF's
operations have been included in the consolidated financial statements since
the acquisition date.
The customer deposit base of $15.7 million was the only amortizing intangible
that was recorded with the transaction. 
Amortization expense in the amount of $1.1 million will be recorded in
the Consolidated Income Statement throughout 2004.  The weighted-average useful life of the customer deposit base
intangible is 8 years.  The goodwill
that was recorded with the transaction is not deductible for tax purposes.
15
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2004
(Unaudited)
NOTE 11 FHLB Restructuring
The third quarter of 2004 included a previously announced charge of $29.5
million ($19.2 million after tax) representing a penalty for the prepayment of
$440 million in Federal Home Loan Bank, or FHLB, long-term borrowings.  The prepayment penalty is reflected in the
Consolidated Statements of Income as debt prepayment fees.  The FHLB borrowings were replaced with other
borrowings having maturities ranging from overnight to 2010.  This transaction expands the maturity
distribution of the company's FHLB advances to minimize the impact of
maturities on any one year.  It also
reduced the initial interest cost on the $440 million in FHLB advances by 292
basis points (2.92%).  First Commonwealth
expects that the transaction will result in an increase in net interest income
over the remaining term of the original advances in excess of the prepayment
penalty.
16
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 2004 as Compared to the
First Nine Months of 2003
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the "Corporation"). 
In addition to historical information, this discussion and analysis, as
well as the notes to the consolidated financial statements, contain
forward-looking statements (as defined in the Private Securities Litigation
Reform Act of 1995), which reflect management's beliefs and expectations based
on information currently available and may contain the words "expect,"
"estimate," "project," "anticipate,"
"should," "intend," "probability,"
"risk," "target" and similar expressions.  These forward-looking statements are
inherently subject to significant risks and uncertainties, including but not
limited to:  changes in general economic
and financial market conditions, the Corporation's ability to effectively carry
out its business plans, changes in regulatory or legislative requirements,
changes in competitive conditions and continuing consolidation of the financial
services industry.  Although management
believes the expectations reflected in such forward-looking statements are
reasonable, actual results could differ materially.  Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof.  The Corporation undertakes
no obligation to publicly revise or update these forward-looking statements to
reflect events or circumstances that arise after the date hereof.
Net income for the first nine months of 2004 was $22.1 million reflecting a
decrease of $18.5 million compared to 2003 results of $40.6 million.  The most significant component of this
decrease was the previously announced penalty related to the prepayment of FHLB
long-term advances.  This penalty was
$29.5 million or $19.2 million after taxes. 
Security gains in the 2004 period were less than that of the 2003 period
and the 2004 period included merger and integration costs that were not present
in the 2003 period.  In addition, the 2004
period incorporated the results of GAF since May 24, 2004, as well as the
results of PFC for the entire reporting period.  The 2003 period included a gain on the sale of two branches.  Basic and diluted earnings per share were
$0.34 for the first nine months of 2004 compared to $0.69 for the same period
of 2003.
Return on average assets was 0.52% and return on average equity was 6.14% for
the first nine months of 2004 compared to 1.16% and 13.26%, respectively, for
the first nine months of 2003.
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 2004 as Compared to the
First Nine Months of 2003
(continued)
The following is an analysis of the impact of changes in net income on diluted
earnings per share:
Net
  income per share, prior year
$
0.69
Increase
  (decrease) from changes in:
Net
  interest income
0.04
Provision
  for credit losses
0.06
Security
  transactions
(0.03)
Service
  charges on deposits
0.01
Gain on sale of branches
(0.05)
Salaries
  and employee benefits
(0.01)
Net
  occupancy expense
(0.01)
Data
  processing expense
(0.01)
Intangible
  amortization
(0.01)
Litigation
  settlement (recovery)
(0.01)
Merger
  and integration charges
(0.03)
Debt
  prepayment fees
(0.45)
Other
  operating expenses
(0.03)
Applicable
  income taxes
0.19
Net
  income per share, current year
$
0.34
Net Interest Income
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.  Net interest income
increased by $14.0 million for the first nine months of 2004 over the related
period of 2003, as average interest-earning assets increased by 20.8%.
Net interest margin (net interest income, on a tax-equivalent basis, as a
percentage of average earning assets) was 3.27% for the nine months of 2004
compared to 3.52% for the nine months of 2003 reflecting a decrease of 25 basis
points (0.25%).
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 2004 as Compared to the
First Nine Months of 2003
(continued)
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:
Analysis
  of Changes in Net Interest Income
(dollar amounts in thousands)
2004 Change From 2003
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
13
$
45
$
(32)
Securities
5,992
11,444
(5,452)
Federal
  funds sold
1
1
-0-
Loans
13,296
25,166
(11,870)
Total
  interest income
19,302
36,656
(17,354)
Interest-bearing
  liabilities:
Savings
  deposits
2,914
2,141
773
Time
  deposits
(6,449)
(823)
(5,626)
Short-term
  borrowings
2,406
2,285
121
Long-term
  debt
6,406
12,531
(6,125)
Total
  interest expense
5,277
16,134
(10,857)
Net
  interest income
$
14,025
$
20,522
$
(6,497)
Interest
and fees on loans increased $13.3 million for the first nine months of 2004
compared to 2003 due to volume increases. 
The volume increases were offset by decreases due to loan yields
declining in the lower interest rate environment.  The total yield on loans for the first nine months of 2004 was
5.97%, compared to loan yields of 6.52% for the first nine months of 2003.  Average total loans for the first nine
months of 2004 rose $529.9 million compared to averages for the first nine
months of 2003 as increases were noted in all loan categories with the
exception of leases, since the Corporation has discontinued its leasing
activities.  The largest increases were
recorded in the commercial loan category. 
The averages include the addition of PFC for the full period of 2004 and
GAF since May 24, 2004.  The Corporation
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration ("SBA") lender status.  The Corporation has consistently been one of
the top small business lenders in Pennsylvania.
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 2004 as Compared to the
First Nine Months of 2003
(continued)
Interest income on investment securities increased $6.0 million for the first
nine months of 2004 compared to the first nine months of 2003.  Increases due to volume of $11.4 million
were partially offset by decreases due to the decline in interest rates of $5.4
million.  Average investment securities
increase by $381.7 million for the first nine months of 2004 compared to the same
period of 2003 and included increases due to PFC for the full period and
increases due to GAF since May 24, 2004. 
The most significant increases were in U.S. government agency
securities.  Total yield on investments
was 4.32% for the first nine months of 2004 compared to 4.77% for the same
period of 2003, a decline of 45 basis points (0.45%).  Declines in interest income due to rate for U.S. government
agency securities were $3.5 million as yields on these securities decreased 29
basis points (0.29%) for the 2004 period compared to the corresponding period
of 2003.
Interest expense on total deposits dropped $3.5 million for the 2004 period
compared to 2003 primarily due to decreases in time deposit interest
rates.  The rate on time deposits
dropped 45 basis points (0.45%) while the rate on savings deposits increased 6
basis points (0.06%).  The Corporation's
deposit mix continues to change as clients registered a preference for savings
deposits rather than time deposits during continuing economic uncertainties.  Average savings deposits increased $404.3
million for 2004 compared to 2003 averages while average time deposits dropped
$58.7 million over the same time frames. 
Average deposits included increases in all categories due to PFC for the
full period and GAF since May 24, 2004. 
During its management of deposit levels and mix, the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive rates
they are looking for while also minimizing the Corporation's cost of
funds.
Interest expense on short-term borrowings increased $2.4 million for the first
nine months of 2004 compared to the same period of 2003 primarily due to
increases in volume.  The average
balance of short-term borrowings for the first nine months of 2004 increased by
$237.2 million compared to the average for the prior year.
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 2004 as Compared to the
First Nine Months of 2003
(continued)
Interest expense on long-term debt increased $6.4 million for the first nine
months of 2004 compared to the corresponding period of 2003.  Increases due to volume were partially
offset by decreases due to rate. 
Average long-term debt for the nine months of 2004 increased by $295.5
million compared to 2003 averages. 
Average long-term debt included increases due to PFC for the full period
and GAF since May 24, 2004.  In
addition, approximately $59.6 million of the average increase was due to
additional debt in the form of subordinated debentures that were acquired in
December 2003 and March 2004, with face amounts of $30.9 million and $41.2
million, respectively.  This debt was
issued in anticipation of the acquisition of GAF.  The rate on long-term debt decreased by 94 basis points (0.94%)
in the first nine months of 2004 compared to the same period of 2003.  The rate reduction was anticipated in
connection with the prepayment of FHLB long-term advances.  The Corporation was able to replace these
advances with lower rate borrowings.
Provision for Credit Losses
The provision for credit losses is an amount added to the
allowance against which credit losses are charged.  The amount of the provision is determined by management based
upon its assessment of the size and quality of the loan portfolio and the
adequacy of the allowance in relation to the risks inherent within the loan
portfolio.  The provision for credit
losses was $7.3 million for the first nine months of 2004 compared to $10.4
million for the same period of 2003. 
The decrease of $3.1 million was due to improvement in nonperforming
loans and net charge-offs.  Net
charge-offs against the allowance for credit losses were $6.5 million for the
2004 period compared to $8.7 million for the corresponding period of 2003.  Annualized net charge-offs as a percent of average
loans outstanding were 0.27% as of September 30, 2004 compared to 0.44% as of
September 30, 2003.  The provision for
credit losses as a percent of net charge-offs was 112.21% at September 30, 2004
and 119.32% at September 30, 2003.  See
the "Credit Review" section for an analysis of the quality of the
loan portfolio.
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 2004 as Compared to the
First Nine Months of 2003
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
nine month periods ended September 30, 2004 and 2003:
2004
2003
(amounts in thousands)
Balance
  January 1,
$
37,385
$
34,496
Addition
  as result of acquisition
4,983
-0-
Loans
  charged off:
Commercial,
  financial and agricultural
3,228
3,307
Real
  estate-construction
-0-
384
Real
  estate-commercial
547
978
Real
  estate-residential
996
2,688
Loans
  to individuals
2,468
2,548
Lease
  financing receivables
217
260
Total
  loans charged off
7,456
10,165
Recoveries
  of previously charged off loans:
Commercial,
  financial and agricultural
611
925
Real
  estate-construction
-0-
-0-
Real
  estate-commercial
-0-
-0-
Real
  estate-residential
67
16
Loans
  to individuals
277
491
Lease
  financing receivables
-0-
-0-
Total
  recoveries
955
1,432
Net
  charge offs
6,501
8,733
Provision
  charged to operations
7,295
10,420
Balance
  September 30,
$
43,162
$
36,183
Noninterest Income
Net securities gains were $4.0 million during the first nine
months of 2004 compared to $5.6 million for the first nine months of 2003.  Securities gains during the 2004 period
resulted primarily from the sale of Pennsylvania bank stocks with book values
of $19.3 million.  Securities gains
during the 2003 period resulted primarily from the sale of 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.
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 2004 as Compared to the First Nine Months of 2003
(continued)
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 in the Chambersburg, PA area.  The sale included $29.2 million in deposit liabilities and $4.4
million in loans associated with the two offices.
Trust income for the first nine months of 2004 was up $312 thousand over the
same period of 2003.  The market value
to book value ratio is up slightly from the prior year level.  The rebound in market values over prior year
levels should help trust income to trend in a positive direction.  The referral programs and integrated growth
plans for financial affiliates have continued to help grow trust revenues.  The Corporation's continued success in
building relationships with commercial clients provides fee based affiliates
with additional sales opportunities through the "Total Solutions Financial
Management" ("TSFM") process. 
This strategy combines products, services and professional staff from
the Corporation's trust, insurance, financial advisory and banking affiliates
and partners them in providing comprehensive financial services offerings.
Service charges on deposits are the Corporation's most significant component of
noninterest income and increased $1.5 million for the first nine months of 2004
compared to the corresponding period of 2003. 
The increases are largely due to the acquisitions of PFC and GAF.  The most significant increase was in
nonsufficient funds "NSF" fees of $1.4 million.  Management strives to implement reasonable
fees for services and closely monitors collection of those fees.  The increase in NSF fees is due to the
inclusion of PFC and GAF as well as the growth of the High Performance Checking
products for consumer and business clients. 
In addition, the increase in NSF fees is due in part to better
management of the collection process to ensure that fee waivers are kept to a
minimum.
Other increases in noninterest income included increases in income from bank
owned life insurance and card related interchange income in the amounts of $613
thousand and $563 thousand, respectively. 
The increases were due in part to the inclusion of PFC and GAF.  The card related interchange income growth
was favorably affected by additional volume related to card usage.
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 2004 as Compared to the
First Nine Months of 2003
(continued)
Noninterest Expense
Salary and employee benefit costs increased $5.5 million or 12.1% for the first
nine months of 2004 compared to the same period of 2003.  Salary costs accounted for $3.9 million or
11.1% of the increase while benefit costs increased $1.6 million or 15.1%.  The increase was due in large part to an
increase in the number of employees from the addition of PFC and GAF.  Full-time equivalent employees were 1,641 at
the end of the third quarter of 2004 compared to 1,430 at the same time in
2003.  The largest increase in benefit
costs was hospitalization costs, which were up $540 thousand or 12.3%.  The Corporation continues to evaluate its
current menu of employee benefits to provide a competitive benefits package
while also managing costs.  Current
benefit options include coverages fully paid for by the employer, as well as
voluntary benefits whereby employees have the option of purchasing additional
benefits at reduced group rates.
Net occupancy expense increased $1.1 million for the first nine months of 2004
over 2003 levels.  Rental expense
accounted for $619 thousand of the increase, primarily due to the addition of
the former PFC and GAF offices. 
Additional increases were also recorded in building repairs and
maintenance.  Most of the maintenance
increases were related to snow removal expenses resulting from the harsh
winter.  The Corporation continues to
actively evaluate and upgrade its branch delivery network to optimize client
service in existing branches and to continue expansion into growth
markets.  The execution of these
initiatives may impact occupancy and other expenses in future periods.
Data processing expense increased by $969 thousand in the first nine months of
2004 compared to the same period of 2003, due in part to the acquisitions of
PFC and GAF.  In addition, the data
processing expense was unfavorably impacted by a rate increase related to
clients using debit and credit cards over the STAR network.
Intangible amortization expense increase by $861 thousand in the first nine
months of 2004 compared to the same period of 2003.  The increase was due to the amortization of the core deposit
intangibles that were recorded for the recent acquisitions.
The merger and integration expenses included $485 thousand related to the
write-off of the unamortized capitalized costs for the subordinated debentures
that were previously issued by PFC and were called and paid off in January of
2004.  In addition, the merger related
expenses included $1.6 million of severance related salary and benefit expenses
that were accrued during the first nine months of 2004 and were due to the
integration of PFC into the Corporation. 
Future periods could be impacted by similar costs as the GAF integration
continues.
24
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 2004 as Compared to the
First Nine Months of 2003
(continued)
As previously mentioned, noninterest expenses during the 2004 period included a
one-time penalty of $29.5 million for the prepayment of $440 million in
long-term FHLB advances.  The FHLB
advances were replaced with other long-term debt with lower interest rates as
well as with short-term borrowings.  The
transaction is expected to result in an increase in net interest income over
the remaining term of the original advances in excess of the prepayment
penalty.
Other increases in noninterest expense included increase in telephone and data
line expenses, advertising and other professional fees in the amounts of $599
thousand, $500 thousand and $405 thousand, respectively.  Telephone and data line expense increases
were due in large part to the recent acquisitions.  Advertising expense increases are due in large part to grand
re-opening events that have taken place in branches that have been newly
re-built, remodeled or acquired.  The
increase in other professional services is due in part to the use of a
consultant to provide targeted marketing services.
Income tax expense decreased $11.2 million for the first nine months of 2004
compared to the first nine months of 2003. 
This variance included the tax effect of $10.3 million on the previously
mentioned FHLB prepayment penalty.  The
Corporation's effective tax rate was (4.3)% for the first nine months of 2004
compared to 20.2% for the corresponding period of 2003.  The effective rate for the first nine months
of 2004 was positively impacted by an increase in tax-exempt income and tax
credits compared to 2003 levels.
Three Months Ended September 30, 2004 as
Compared to the Three Months Ended
September
30, 2003
The Corporation recognized a net loss of $2.8 million for the third quarter of
2004 compared to net income of $13.8 million for the same quarter in 2003.  Basic and diluted earnings per share were
($0.04) for the third quarter of 2004 compared to $0.23 for the third quarter
of 2003.  Return on average assets was
(0.18)% and return on average equity was (2.13)% for the third quarter of 2004
compared to 1.14% and 13.63%, respectively, for the third quarter of 2003.
Net Interest Income
Net interest income for the third quarter of 2004 of $46.1 million represented
an increase of $11.1 million compared to the third quarter of 2003.  The increase in net interest income was due
to an increase in average interest-earning assets of 27.8%.  An increase of $10.2 million was due to
increases in volume, while the remaining increase was due to interest
rates.  Net interest margin (net
interest income, on a tax-equivalent basis, as a percentage of average earning
assets) for the 2004 period was 3.38% reflecting an increase of 7 basis points
(0.07%) from 3.31% reported in 2003 as the cost of funds declined more than
asset
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, 2004 as
Compared to the Three Months Ended
September
30, 2003
(continued)
yields.  With the repositioning of
borrowings after the FHLB prepayment, low interest rates are expected to have a
slightly favorable impact on the prospective net interest margin.
The following table shows the effect of changes in volumes and rates on
interest income and interest expense for the quarter ended September 30:
Analysis
  of Changes in Net Interest Income
(dollar amounts in thousands)
2004 Change From 2003
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
7
$
13
$
(6)
Securities
3,944
3,125
819
Federal
  funds sold
1
-0-
1
Loans
11,383
14,126
(2,743)
Total
  interest income
15,335
17,264
(1,929)
Interest-bearing
  liabilities:
Savings
  deposits
2,029
707
1,322
Time
  deposits
(1,267)
655
(1,922)
Short-term
  borrowings
1,931
944
987
Long-term
  debt
1,572
4,804
(3,232)
Total
  interest expense
4,265
7,110
(2,845)
Net
  interest income
$
11,070
$
10,154
$
916
Interest
and fees on loans for the three months ended September 30, 2004, increased
$11.4 million compared to the three months ended September 30, 2003, primarily
as a result of volume increases.  The
averages include the addition of recent acquisitions for the full quarter in
2004.  Average total loans for the third
quarter of 2004 increased $906.5 million compared to averages for the third
quarter of 2003.  The largest increases
were in commercial loans and mortgages. 
The total yield on loans for the third quarter of 2004 was 6.01%
representing a decrease of 34 basis points (0.34%)compared to yields for the
third quarter of 2003.
Interest income on investments for the three months ended September 30, 2004,
was $23.5 million, reflecting an increase of $3.9 million compared to the three
months ended September 30, 2003. 
Average investments increased by $349.2 million for the third quarter of
2004 compared to averages for the third quarter of 2003.  Average investments for the third quarter of
2004 included increases due to the inclusion of balances from PFC and GAF for
the full period.  The most significant
increases were in U.S. government agency securities.  The total yield on investments was 4.39% for the third quarter of
2004 compared to 4.33% for the third quarter of 2003.
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, 2004 as
Compared to the Three Months Ended
September
30, 2003
(continued)
Interest expense on deposits increased $762 thousand for the three months ended
September 30, 2004, compared to the same period in 2003.  Increases in savings deposits were partially
offset by decreases in time deposits. 
Increases due to volume were noted for each of the deposit types, while
savings deposits reflected increases due to rate and time deposits reflected
decreases due to rate.  Average total
deposits were $3,875.3 million for 2004 compared to $3,197.4 million for the
corresponding period of 2003.  Average
deposits included increases in all categories due to the inclusion of balances
from PFC and GAF for the full period in 2004. 
The interest rate for savings deposits increased 27 basis points (0.27%)
for the third quarter of 2004 over the same period of 2003, while the rate for
time deposits decreased by 40 basis points (0.40%) for the same period.
Interest expense on short-term borrowings increased by $1.9 million for the
three months ended September 30, 2004 compared to the same period of 2003, due
in part to increases in volume and increase due to rate.  Average short-term debt included increases
of $320.8 million for the 2004 quarter compared to the 2003 quarter.  Short-term borrowing rates increased 44
basis points (0.44%) for the third quarter of 2004 compared to the third
quarter of 2003.
Interest expense on long-term debt for the three months ended September 30,
2004, increased $1.6 million compared to the same period of 2003, primarily as
a result of volume increases which were partially offset by rate
decreases.  Average long-term debt was
$336.7 million more in the third quarter of 2004 than averages for the third
quarter of 2003.  Average long-term debt
included increases due to the inclusion of PFC and GAF for the full period of
2004.  In addition, long-term debt
included increases due to additional debt in the form of subordinated
debentures.  Additional subordinated
debentures in the amount of $72.1 million were outstanding for the full quarter
of 2004.  Long-term borrowing rates
decreased 139 basis points (1.39%) for the third quarter of 2004 compared to
the third quarter of 2003.  The rate
reduction was anticipated in connection with the prepayment of FHLB long-term
advances.  The Corporation was able to
replace these advances with lower rate borrowings.
Provision for Credit Losses
The provision for credit losses was $2.7 million for the three months ended
September 30, 2004, compared to $3.5 million for the three months ended
September 30, 2003.  The third quarter
of 2004 reflected a decrease of $739 thousand in net charge-offs when compared
to the third quarter of 2003.  The most
significant decrease in net charge-offs for the third quarter of 2004 compared
to 2003 was in real estate loans secured by 1-4 family property and commercial
loans.
Noninterest Income
Net securities gains were $51 thousand for the third quarter of 2004 compared
to securities gains of $166 million for the third quarter of 2003.
27
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, 2004 as
Compared to the Three Months Ended
September
30, 2003
(continued)
During the third quarter of 2004, gains were primarily from the sale
of U.S. treasury securities and tax free municipal securities with book values
of $1.5 million and $3.3 million, respectively. 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.
Other increases in noninterest income included increases in trust
income, service charges on deposits, insurance commissions, income from bank
owned life insurance, merchant discount income and income from card related
interchange fees.  Increases in trust
income are the result of improved market values.  Increases in other noninterest income are in large part due to
the acquisition of PFC and GAF.  The
increases in service charges on deposits were most notable in the NSF fees
category.
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
sale included $29.2 million in deposit liabilities and $4.4 million in loans
associated with the two offices.
Noninterest Expense
Total noninterest expense for the three months ended September 30, 2004, was
$64.1 million compared to $28.0 million reported for the same period of
2003.  The increase of $36.1 million
included the previously announced penalty for the prepayment of FHLB long-term
advances in the amount of $29.5 million.
The most significant other noninterest expense item that increased was salary
and employee benefit costs.  These
employee costs increased $2.1 million for the 2004 quarter over 2003 levels.  Salary expense was up $1.6 million or 13.4%
for the third quarter of 2004 compared to 2003.  Employee benefit costs rose $575 thousand or 16.7% for the third
quarter of 2004.  The increases were
primarily due to the inclusion of recent acqisitions as full-time equivalent
employees increased to 1,641 at the end of the third quarter of 2004 compared
to 1,430 at the same time in 2003.  The
remainder of the increase in the other noninterest expense categories was primarily
due to the inclusion of amounts related to PFC and GAF for the full quarter.
Income tax expense decreased $9.6 million for the third quarter of 2004
compared to the third quarter of 2003. 
This variance included the tax effect of $10.3 million on the previously
mention FHLB prepayment penalty.  Tax
expense for the third quarter of 2004 was positively impacted by an increase in
tax-exempt income and tax credits compared to 2003 levels.  The Corporation's effective tax rate was
68.5% for the third quarter of 2004 compared to 20.2% for the corresponding
period of 2003.
28
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.  In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans. As an additional
secondary source, short-term liquidity needs may be provided through the use of
overnight Federal funds purchased, borrowings through use of lines available
for repurchase agreements and borrowings from the Federal Reserve Bank.  Additionally, the Corporation's banking
subsidiary is a member of the Federal Home Loan Bank and may borrow under
overnight and term borrowing arrangements. 
The sale of earning assets may also provide an additional source of
liquidity.  In addition to the
previously described funding sources, the Corporation also has the ability to
access the capital markets.
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources. 
The Corporation maintains a liquidity management policy to manage this
risk.  This policy identifies the primary
sources of liquidity, establishes procedures for monitoring and measuring liquidity
and quantifies minimum liquidity requirements based on board approved
limits.  The policy also includes a
liquidity contingency plan to address funding needs to maintain liquidity under
a variety of business conditions.  The
Corporation's liquidity position is monitored by the Asset/Liability Management
Committee ("ALCO").
At September 30, 2004, total interest-earning assets were $5,814.6 million, up
from the $4,903.7 million recorded at December 31, 2003.  The increase of $910.9 million included interest-earning
assets in the amount of $820.8 million that were assumed in the acquisition of
GAF.  Excluding the acquisition of GAF,
total loans (net of unearned income) increased $175.9 million for the first
nine months of 2004.  The majority of
the loan increases were in commercial and installment loans.  The Corporation's auto lease portfolio
reflected decreases of $12.0 million for the first nine months of 2004 since
the Corporation discontinued its automobile leasing activities during
2003.  Investment securities, excluding
the acquisition of GAF and the effect of the GAF purchase accounting
adjustments, decreased $88.8 million for the first nine months of 2004.
The Corporation's long-term liquidity source is a large core deposit base and a
strong capital position.  Core deposits
are the most stable source of liquidity that a bank can have due to long-term
relationships with a deposit customer. 
Total deposits increased $563.1 million for the first nine months of
2004.  This included an increase of $524.2
million for the deposits that were assumed in the acquisition of GAF and an
increase due to purchase accounting adjustments in the amount of $5.4 million
that were recorded as part of the GAF acquisition transaction.  Excluding the GAF acquisition activity,
noninterest-bearing demand deposits and savings deposits increased by $26.7
million and $127.0 million, respectively, while time deposits decreased by
$120.3 million.
29
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
The total increase in short-term borrowings of $342.7 million included
$53.6 million that was acquired from GAF. 
Excluding the acquisition growth from GAF, long-term borrowings
decreased $136.8 million during the first nine months of 2004.  During the third quarter of 2004, the
Corporation prepaid $440 million of FHLB advances to minimize the impact of maturities
in any one year.  The advances were
replaced with short-term borrowings and other long-term FHLB advances with
lower interest rates.
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, 2004, securities available for sale had an amortized cost of $2,176.4
million and an approximate fair value of $2,198.9 million.
Interest Sensitivity
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.  The
Corporation's market risk is composed primarily of interest rate risk.  Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.
The objective of interest rate sensitivity management is to maintain an
appropriate balance between the stable growth of income and the risks
associated with maximizing income through interest sensitivity imbalances.  While no single number can accurately
describe the impact of changes in interest rates on net interest income,
interest rate sensitivity positions, or "gaps", when measured over a
variety of time periods, can be informative.
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.  If interest-sensitive assets
("ISA") exceed interest-sensitive liabilities ("ISL")
during the prescribed time period, a positive gap results.  Conversely, when ISL exceed ISA during a
time period, a negative gap results.
30
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
The cumulative gap at the 365-day repricing period was negative in the amount
of $1,352.2 million or 21.60% of total assets at September 30, 2004.  A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period.  A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.  In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when interest
rates rise, a negative gap should tend to affect earnings negatively.
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.  The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.
The following tables list the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of September
30, 2004, and December 31, 2003 (dollar amounts in thousands):
September
  30, 2004
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,333,668
$
182,017
$
324,021
$
1,839,706
Investments
163,892
84,177
208,271
456,340
Other interest-earning assets
8,292
-0-
-0-
8,292
Total interest-sensitive assets
1,505,852
266,194
532,292
2,304,338
Certificates of deposit
190,910
281,785
311,008
783,703
Other deposits
1,817,386
-0-
-0-
1,817,386
Borrowings
1,035,937
4,648
14,834
1,055,419
Total interest-sensitive liabilities
3,044,233
286,433
325,842
3,656,508
Gap
(1,538,381)
(20,239)
206,450
(1,352,170)
ISA/ISL
0.49
0.93
1.63
0.63
Gap/Total assets
24.58%
0.32%
3.30%
21.60%
31
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
December
  31, 2003
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,057,021
$
178,006
$
291,352
$
1,526,379
Investments
241,163
116,979
189,610
547,752
Other interest-earning assets
5,362
-0-
-0-
5,362
Total interest-sensitive assets
1,303,546
294,985
480,962
2,079,493
Certificates of deposits
325,957
242,706
249,361
818,024
Other deposits
1,413,069
-0-
-0-
1,413,069
Borrowings
634,878
1,407
21,290
657,575
Total interest-sensitive liabilities
2,373,904
244,113
270,651
2,888,668
Gap
$
(1,070,358)
$
50,872
$
210,311
$
(809,175)
ISA/ISL
0.55
1.21
1.78
0.72
Gap/Total assets
20.63%
0.98%
4.05%
15.59%
Although the periodic gap analysis provides management with a method of
measuring current interest rate risk, it only measures rate sensitivity at a
specific point in time, and as a result may not accurately predict the impact
of changes in general levels of interest rates on net interest income.  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.
32
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve-month period.  Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors. 
Additional simulations are produced estimating the impact on net interest
income of a gradual 200 basis point (2.00%) movement upward or downward over a
12 month time frame which cannot result in more than a 5.00% decline in net
interest income when compared to the base case.  The analysis at September
30, 2004 indicated that a 200 basis point (2.00%) increase in interest rates
would decrease net interest income by 110 basis points (1.10%) below the base
case scenario and a 200 basis point (2.00%) decline in interest rates would
decrease net interest income by 307 basis points (3.07%) below the base case
scenario, over the next twelve months, both within policy limits.
The Corporation's "Asset/Liability Management Committee"
("ALCO") is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.  The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.  The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.  The ALCO strategies are established by the
Corporation's senior management.
The Corporation entered into an interest rate swap transaction during the third
quarter of 2003 and two additional interest rate swap transactions during the
second quarter of 2004.  Each of the
swap transactions involved hedging adjustable LIBOR based commercial loans with
a receive-fixed and pay-floating interest rate swap of $25 million notional
amount, for a total of $75 million.  The
original maturities of the swap transactions ranged from 2.5 to 3 years.  The purpose of the swaps was to reduce the
Corporation's exposure to further declines in interest rates.  The ALCO continues to evaluate the use of
additional derivative instruments to protect against the risk of adverse price
or interest rate movements on the value of certain assets and liabilities.
33
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
The following table identifies amounts of loan losses and nonperforming
loans.  A loan is placed in nonaccrual
status at the time when ultimate collectibility of principal or interest,
wholly or partially, is in doubt.  Past
due loans are those which are contractually past due 90 days or more as to
interest or principal payments but are well secured and in the process of
collection.  Renegotiated loans are
those loans which terms have been renegotiated to provide a reduction or
deferral of principal or interest as a result of the deteriorating financial
position of the borrower and are in compliance with the restructured
terms.  The following table identifies
nonperforming loans as of September 30:
2004
2003
(amounts in thousands)
Nonperforming
  Loans
:
Loans
  on nonaccrual basis
$
11,784
$
18,430
Past
  due loans
12,779
13,949
Renegotiated
  loans
185
198
Total
  nonperforming loans
$
24,748
$
32,577
Other
  real estate owned
$
2,295
$
1,698
Loans
  outstanding at end of period
$
3,533,509
$
2,597,443
Average
  loans outstanding (year-to-date)
$
3,159,920
$
2,630,009
Nonperforming
  loans as a percent of total loans
0.70%
1.25%
Provision
  for credit losses
$
7,295
$
10,420
Net
  charge-offs
$
6,501
$
8,733
Net
  charge-offs as a percent of average loans outstanding (annualized)
0.27%
0.44%
Provision
  for credit losses as a percent of net charge-offs
112.21%
119.32%
Allowance
  for credit losses as a percent of average loans outstanding
1.37%
1.38%
Allowance
  for credit losses as a percent of end-of-period loans outstanding
1.22%
1.39%
Allowance
  for credit losses as a percent of nonperforming loans
174.41%
111.07%
34
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest that is due according to the contractual terms of
the loan.  Loan impairment is measured
based on the present value of expected cash flows discounted at the loan's
effective interest rate or, as a practical expedient, at the loan's observable
market price or the fair value of the collateral if the loan is collateral
dependent.  Payments received on
impaired loans are applied against the recorded investment in the loan.  For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash
basis.  Impaired loans include loans on
a nonaccrual basis and renegotiated loans.
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at September
30:
2004
2003
(amounts in thousands)
Recorded
  investment in impaired loans
at end of period
$
11,969
$
18,628
Year
  to date average balance of impaired
loans
$
13,023
$
21,511
Allowance
  for credit losses related to
impaired loans
$
2,293
$
5,209
Impaired
  loans with an allocation of the
allowance for credit losses
$
7,296
$
14,453
Impaired
  loans with no allocation of the
allowance for credit losses
$
4,673
$
4,175
Year
  to date income recorded on impaired
loans on a cash basis
$
191
$
487
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, 2004, there were no
significant concentrations of credit.
Nonperforming loans at September 30, 2004, decreased $7.8 million compared to
September 30, 2003 levels as deceases were recorded in all categories.  The most significant improvements in
nonperforming loans since September 30, 2003, occurred during the fourth quarter
of 2003.
35
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The decrease in nonaccrual loan levels of $6.6 million was primarily due to
decreases in nonaccrual commercial loans. 
Past due loans for the 2004 period decreased $1.2 million compared to
the corresponding period of 2003. 
Decreases in past due commercial loans were partially offset by increase
in past due loans secured by residential real estate.  Nonperforming loans as a percent of total loans improved to 0.70%
at September 30, 2004 compared to 1.25% at September 30, 2003.  The allowance for credit losses as a percent
of nonperforming loans was 174.41% and 111.07%, respectively for the same
periods.
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.  This process
includes close monitoring of watch list credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.  Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.  Management also attempts to minimize loan losses by analyzing and
modifying collection techniques on a periodic basis.  Management believes that the allowance for credit losses and
nonperforming loans remained safely within acceptable levels.
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date. 
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.  The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.  These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits. 
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss provisions may be necessary due to changes in management estimates
and assumptions about asset impairment, information about borrowers that
indicate changes in the expected future cash flows or changes in economic
conditions.  The allowance for credit
losses and the provision for credit losses are significant elements of the
Corporation's financial statements, therefore management periodically reviews
the processes and procedures utilized in determining the allowance for credit
losses to identify potential enhancements to these processes, including
development of additional management information systems to ensure that all
relevant factors are appropriately considered in the allowance analysis.  In addition, the Corporation maintains a
system of internal controls which are
36
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
independently monitored and tested by internal audit and loan review staff to
ensure that the loss estimation model is maintained in accordance with internal
policies and procedures, as well as generally accepted accounting principles.
CAPITAL RESOURCES
Equity capital stood at $527.0 million at September 30, 2004, an increase of
$96.1 million compared to December 31, 2003. 
Dividends declared reduced equity by $32.0 million during the first nine
months of 2004, while net income increased equity by $22.1 million for the same
period.  Additional advances by the Corporation's
Employee Stock Ownership Plan ("ESOP") to fund the acquisition of the
Corporation's common stock for future distribution as employee compensation,
net of long-term debt payments and fair value adjustments to unearned ESOP
shares, decreased equity by $4.9 million. 
Amounts paid to fund the discount on reinvested dividends reduced equity
by $601 thousand during the first nine months of 2004.  The market value adjustments to securities
available for sale and the loan swaps decreased equity by $565 thousand and
increased equity by $298 thousand, respectively, for the period.  Proceeds from the reissuance of treasury
shares to fund stock options exercised increased equity by $6.4 million during
2004, while the tax benefit related to stock options increased equity by $415
thousand.  Equity capital was also
impacted during 2004 by an increase of $203 thousand from the reissuance of
treasury shares to fund contingent payments related to the acquisition of First
Commonwealth Financial Advisors, which consummated in 2002.  This contingent payment of the Corporation's
common stock was the second of four scheduled annual installments.  Equity capital was also impacted during the
first nine months of 2004 by the acquisition of GAF.  The issuance of common stock related to the acquisition of GAF
resulted in an increase to equity capital in the amount of $105.2 million,
while the conversion of GAF's investment in FCFC stock into treasury shares
resulted in a decrease of $514 thousand to equity capital.
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.  The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.  In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.
The Federal Reserve Board has issued risk-based capital adequacy guidelines
which are designed principally as a measure of credit risk.  These guidelines require:  (1) at least 50% of a banking organization's
total capital be common and other "core" equity capital ("Tier I
Capital"); (2) assets and off-balance-sheet items be weighted according to
risk; (3) the total capital to risk-weighted assets ratio be at least 8%; and
(4) a minimum leverage ratio of Tier I capital to average total assets.
The minimum leverage ratio is not specifically defined, but is generally
expected to be 3-5 percent for all but the most highly rated banks, as
determined by a regulatory rating system.
37
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,
2004:
Amount
(in thousands)
Percent of
Adjusted Assets
Tier
  I Capital
470,804
11.6%
Risk-Based
  Requirement
162,418
4.0%
Total
  Capital
513,966
12.7%
Risk-Based
  Requirement
324,836
8.0%
Minimum
  Leverage Capital
470,804
7.7%
Minimum
  Leverage Requirement
183,717
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,
2004, the Corporation's banking and trust subsidiaries exceeded those
requirements.
ITEM 3
.  QUANTITATIVE AND
QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Information appearing in Item 2 of this report under the caption "Interest
Sensitivity" is incorporated herein by reference in response to this item.
ITEM 4
. CONTROLS AND PROCEDURES
The Corporation carried out an evaluation, under the supervision and with the
participation of the Corporation's management, including the Chief Executive
Officer and the Chief Financial Officer, of the effectiveness of the design and
operation of the Corporation's disclosure controls and procedures as of the end
of the period covered by this report pursuant to Exchange Act Rule 13a-15.  Based upon that evaluation, the
Corporation's Chief Executive Officer and Chief Financial Officer concluded
that the Corporation's disclosure controls and procedures are effective in
timely alerting them to material information relating to the Company (including
its consolidated subsidiaries) required to be included in the Corporation's
periodic Securities and Exchange Commission filings.  In addition, no significant change in the Corporation's internal
control over financial reporting was identified in connection with this
evaluation that has materially affected or is reasonably likely to materially
affect internal control over financial reporting.
38
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
ITEM 4
. CONTROLS AND PROCEDURES (Continued)
Disclosure controls and procedures are controls and other procedures that are
designed to ensure that information required to be disclosed by the Corporation
in the reports that the Corporation files or submits under the Exchange Act is
recorded, processed, summarized and reported, within the time periods specified
in the Securities and Exchange Commission's rules and forms. Disclosure
controls and procedures include, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Corporation
in the reports that the Corporation files under the Exchange Act is accumulated
and communicated to the Corporation's management, including the Corporation's
Chief Executive Officer and Chief Financial Officer, as appropriate to allow
timely decisions regarding required disclosure.
39
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
.
UNREGISTERED
  SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Purchases of Equity Securities
Period
(a) Total
Number of
Shares
Purchased
(b) Average
Price Paid
Per Share
(c) Total
Number of
Shares
Purchased as
Part of
Publicly
Announced
Plans or
Programs
(d) Approximate
Dollar Value
of Shares that
May Yet Be
Purchased
Under the Plans
or Programs
July
  1, 2004-
July 31, 2004
35,000
$12.96
35,000
$13,546,519.00
August 1, 2004-
August 31, 2004
318,300
$12.97
318,300
$ 9,418,997.96
September 1, 2004-
September 30, 2004
68,500
$13.62
68,500
$ 8,486,285.05
Total
421,800
$13.07
421,800
$ 8,486,285.05
All shares were acquired by the Corporation's Employee Stock Ownership Plan
("ESOP") through a publicly announced plan.  The plan for the ESOP to acquire shares was announced through a
press release dated July 26, 2004, and a subsequent 8-K filing with the
Securities and Exchange Commission on July 27, 2004.  The plan is to acquire up to $14 million of the Corporation's
common stock in the open market.  The
plan does not have an expiration date.
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
40
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
PART II - OTHER INFORMATION (continued)
ITEM
  6
.
EXHIBITS
Exhibit
  31.1 Chief Executive Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  31.2 Chief Financial Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.1 Chief Executive Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.2 Chief Financial Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act
  of 2002
41
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 4, 2004
/s/Joseph
  E.
  O'Dell
Joseph
  E. O'Dell, President and Chief Executive Officer
DATED:  November 4, 2004
/s/John
  J.
  Dolan
John
  J. Dolan, Executive Vice President and Chief Financial Officer
42