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

<p><font size=3 face=Courier>&nbsp; (X) QUARTERLY REPORT PURSUANT TO SECTION 13
  OR 15(d) OF THE SECURITIES<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; EXCHANGE ACT OF 1934</font></p>

<p align=center><font size=3
face=Courier><br>
<br>
For the quarterly period ended June 30, 2002</font></p>

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

<p align=left><font size=3
face=Courier> <br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;</font><font size=3
face=Courier>( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; </font><font size=3
face=Courier> </font><font size=3 face=Courier>&nbsp;EXCHANGE ACT OF 1934</font></p>

<p><font size=3 face=Courier>For the transition period from _______ to _______<br>
  <br>
  <br>
  </font><font size=3 face=Courier>Commission File Number <u>&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  0-11242</u></font></p>

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

<div align="center"><u><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; First Commonwealth Financial Corporation&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  <br>
  </font></u><font size=3 face=Courier>(Exact name of registrant as specified
  in its charter)<br>
  </font><font size=3 face=Courier><br>
  </font> </div>
<p><font size=3 face=Courier><br>
  <u>&nbsp;&nbsp;&nbsp;&nbsp; Pennsylvania&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; 25-1428528&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  <br>
  </u></font><font size=3 face=Courier>(State or other jurisdiction of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (I.R.S. Employer <br>
  </font><font size=3 face=Courier>&nbsp;incorporation or organization)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Identification No.)<br>
  <br>
  </font></p>

<p><font size=3 face=Courier><br>
<u>&nbsp;&nbsp;&nbsp;&nbsp; 22 North Sixth Street&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Indiana,
PA&nbsp; 15701&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
(Address of principal executive offices)&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; (Zip Code)<br><br></font></p>

<p><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; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 724-349-7220&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; <br>
</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Registrant's telephone
number, including area code)<br><br></font></p>

<p><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; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; N/A&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u><br>
(Former name, former address and former fiscal year, if changed since last<br>&nbsp;report.)<br>
<br><br></font></p>

<p><font size=3 face=Courier>Indicate
a check mark whether the registrant(1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>X&nbsp;&nbsp;&nbsp; </u>
No <u>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; </u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
August 12, 2002 was 58,835,161.</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</font></p>

<p align="center"><font size=3 face=Courier><br>
  PART I - FINANCIAL INFORMATION</font></p>

<p><font size=3 face=Courier><br>
  <br>
  <u>ITEM 1</u>.&nbsp;&nbsp;&nbsp;&nbsp; FINANCIAL STATEMENTS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; Included in Part I of this
  report:&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; PAGE<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; First Commonwealth Financial
  Corporation and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Subsidiaries Consolidated Balance Sheets . . .&nbsp;&nbsp;&nbsp;&nbsp; 3 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Income. . . . . . . &nbsp;&nbsp; &nbsp;4 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Changes in <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; Shareholders' Equity. . . . . . . . . . . &nbsp;&nbsp;
  &nbsp;5 <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Consolidated Statements of Cash Flows. . . . . &nbsp;&nbsp;&nbsp;&nbsp;6 <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Notes to Consolidated Financial Statements . . &nbsp;&nbsp;&nbsp;&nbsp;7 <br>
  <br>
  <u>ITEM 2</u>.&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;11 <br>
  <br>
  <u>ITEM 3</u>.&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; MARKET RISK . . . . . . .
  . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;31 <br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; PART II - OTHER INFORMATION<br>
  <br>
  Other Information . . . . . . . . . . . . . . . . . . . . . . &nbsp;&nbsp;&nbsp;&nbsp;32
  <br>
  <br>
  </font></p>

<p><font size=3 face=Courier>Exhibits and Reports on Form 8K . . . . . . . . .
  . . . . . .&nbsp;&nbsp;&nbsp; &nbsp;32</font></p>

<p><font size=3 face=Courier><br>
  Signatures. . . . . . . . . . . . . . . . . . . . . . . . . .&nbsp;&nbsp;&nbsp;
  &nbsp;33 </font></p>

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

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

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

<table border=0 cellspacing=0 cellpadding=2>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=center><font size=1
  face=Courier>June 30,<br>
        <u>2002</u></font></p>
    </td>
    <td width=115 valign=top>
      <p align=center><font size=1
  face=Courier>December 31,<br>
        <u>2001</u></font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h3><b><font size=1 face=Courier>ASSETS</font></b></h3>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash and due from banks on demand .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>$&nbsp;&nbsp; 83,759&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $&nbsp;&nbsp; 98,130&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest-bearing deposits with banks.
        . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier> 744&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,250&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top height="11">
      <p><font size=1 face=Courier>&nbsp; Securities available for sale, at market.
        . . . . . . . . . .</font></p>
    </td>
    <td width=108 valign=top height="11">
      <p align=right><font size=1
  face=Courier>1,469,400&nbsp;</font></p>
    </td>
    <td width=115 valign=top height="11">
      <p align=right><font size=1
  face=Courier>&nbsp;1,469,118&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities held to maturity, at cost,<br>
        &nbsp;&nbsp; (Market value $272,068 in 2002 <br>
        &nbsp;&nbsp;&nbsp; and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp; 264,566&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp; 293,290&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,613,962&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;2,569,231&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Unearned income . . . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (997)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (1,297)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Allowance for credit losses
        . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; (34,302)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (34,157)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>___________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loans .
        . . . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,578,663&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;2,533,777&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Property and equipment. . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 46,071&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 46,418&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other real estate owned . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,468&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,619&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,134&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; &nbsp;&nbsp;&nbsp;6,539&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 44&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 232&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 132,123&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 130,157&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>_________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>$4,584,972&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>$4,583,530&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>==========</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>==========</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h3><b><font size=1 face=Courier>LIABILITIES</font></b></h3>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Deposits (all domestic):</font></p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Noninterest bearing . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $&nbsp; 394,071&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; $&nbsp; 412,695&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest bearing. . . .
        . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>2,789,563&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;2,680,455&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total deposits.
        . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>3,183,634&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;3,093,150&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Short-term borrowings . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 305,647&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 427,736&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other liabilities . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 26,958&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 28,358&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Company obligated mandatorily redeemable
        capital <br>
        &nbsp;&nbsp;&nbsp; securities of subsidiary trust. . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 35,000&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; 35,000&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other long-term debt. . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 646,215&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 629,220&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total long-term
        debt. . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 681,215&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 664,220&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities
        . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; 4,197,454&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;4,213,464&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <h4><b><font size=1 face=Courier>SHAREHOLDERS' EQUITY</font></b></h4>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Preferred stock, $1 par value per share,<br>
        &nbsp;&nbsp;&nbsp; 3,000,000 shares authorized, none issued . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Common stock, $1 par value per share,
        <br>
        &nbsp;&nbsp;&nbsp; 100,000,000 shares authorized, 62,525,412 <br>
        &nbsp;&nbsp;&nbsp; shares issued; 58,779,955 and 58,451,624 <br>
        &nbsp;&nbsp;&nbsp; shares outstanding at June 30, 2002 and <br>
        &nbsp;&nbsp;&nbsp; December 31, 2001 respectively. . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>
        &nbsp;&nbsp; 62,525&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        &nbsp;&nbsp;&nbsp; 62,525&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Additional paid-in capital. . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 65,253&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 66,176&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Retained earnings . . . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 289,202&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 288,219&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Accumulated other comprehensive income.
        . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 21,414&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,703&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Treasury stock (3,745,457 shares at
        June 30, 2002 and <br>
        &nbsp;&nbsp;&nbsp; 4,073,788 at December 31, 2001, at cost). . . . . .
        . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp; (47,286)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; (51,431)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp; Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (3,590)</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (4,126)</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total shareholders'
        equity. . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 387,518&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 370,066&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . . </font></p>
    </td>
    <td width=108 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; $4,584,972&nbsp;</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>$4,583,530&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=511 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=108 valign=top>
      <p align=right><font size=1
  face=Courier>==========</font></p>
    </td>
    <td width=115 valign=top>
      <p align=right><font size=1
  face=Courier>==========</font></p>
    </td>
  </tr>
</table>

<p><font size=3 face=Courier><br>
  <font size="2">The accompanying notes are an integral part of these consolidated
  financial statements.</font></font></p>

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

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

<table border=0 cellspacing=0 cellpadding=2 width=765>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td colspan=2 rowspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>For the Quarter<br>
        <u>Ended June 30,</u></font></p>
    </td>
    <td colspan=2 rowspan=3 valign=top>
      <p align=center><font size=1
  face=Courier>For the 6 Months<br>
        </font><u><font size=1
  face=Courier>Ended June 30,</font></u></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=center><u><font size=1
  face=Courier>__ 2002__</font></u></p>
    </td>
    <td width=95 valign=top>
      <p align=center><u><font size=1
  face=Courier>__ 2001__</font></u></p>
    </td>
    <td width=91 valign=top>
      <p align=center><u><font size=1
  face=Courier>__2002__</font></u></p>
    </td>
    <td width=89 valign=top>
      <p align=center><u><font size=1
  face=Courier>&nbsp;&nbsp; 2001_</font></u></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h3><b><font size=1 face=Courier>Interest Income</font></b></h3>
    </td>
    <td width=88 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest and fees on loans . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; $ 45,220</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp; 50,755</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>$ 90,547</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>$ 102,977</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest and dividends on investments:
        </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Taxable interest . . . .
        . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 21,791</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 23,443</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 44,029</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 46,774</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Interest exempt from Federal
        income taxes. </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,417</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,374</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 4,809</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 4,745</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Dividends. . . . . . . .
        . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 441</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;575</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 993</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,429</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on Federal funds sold . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 206</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 488</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on bank deposits. . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 18</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 19</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;________</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        income. . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 69,878</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 77,371</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 140,401</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 156,451</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Interest Expense</font></b></h5>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on deposits . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 20,782</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 31,243</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 42,103</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 63,300</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on short-term borrowings. .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,502</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,709</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,267</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,233</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on company obligated mandatorily
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp; redeemable</font><font size=1 face=Courier> capital
        securities of <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;<br>
        <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        <br>
        </font><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 832</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center> <font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; 1,663</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        <br>
        &nbsp;&nbsp;&nbsp; &nbsp;1,663</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Interest on other long-term debt . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,829</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,629</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 17,393</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 17,065</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        on long-term debt . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 9,661</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 9,461</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 19,056</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 18,728</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total interest
        expense . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 31,945</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 43,413</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 64,426</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 88,261</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Net Interest Income</font></b></h5>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 37,933</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 33,958</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 75,975</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 68,190</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;Provision for credit losses. .
        . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,008</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,557</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 5,925</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,964</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>&nbsp;</td>
    <td width=88 valign=top>&nbsp;</td>
    <td width=95 valign=top>&nbsp;</td>
    <td width=91 valign=top>&nbsp;</td>
    <td width=89 valign=top>&nbsp;</td>
  </tr>
  <tr>
    <td rowspan="2" valign=top width=382>
      <p><b><font size=1 face=Courier>Net interest income after provision for
        credit losses . . . . . . . . . . . . . . </font></b></p>
    </td>
    <td rowspan="2" valign=top width=88>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; ______</font><font size=1
  face=Courier> &nbsp;&nbsp; 34,925</font></p>
    </td>
    <td rowspan="2" valign=top width=95>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______</font><font size=1
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; 31,401</font></p>
    </td>
    <td rowspan="2" valign=top width=91>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; ______</font><font size=1
  face=Courier><br>
        &nbsp;&nbsp; 70,050</font></p>
    </td>
    <td rowspan="2" valign=top width=89>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; ______<br>
        </font><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 63,226</font></p>
    </td>
  </tr>
  <tr> </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Other Income</font></b></h5>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Securities gains . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 576</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,790</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 615</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,995</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Trust income . . . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,342</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,256</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,555</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,550</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Service charges on deposit accounts.
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,746</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,707</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 5,439</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 5,288</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Insurance commissions. . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 951</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 633</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,807</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,288</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Income from bank owned life insurance.
        . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,173</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,111</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,242</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,060</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other income . . . . . . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,149</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,876</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 5,668</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,459</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; ______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        income . . . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 9,937</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 10,373</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 18,326</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 19,640</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Other Expenses</font></b></h5>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Salaries and employee benefits . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 14,767</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 13,401</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 29,410</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 27,070</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Net occupancy expense&nbsp; . . . .
        . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 1,613</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,623</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,299</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,400</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Furniture and equipment expense. . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,568&nbsp; </font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,254</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,966</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 4,380</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Data processing expense. . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 484</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 821</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 926</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,588</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Pennsylvania shares tax expense. . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 996</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 970</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,991</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1,911</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Goodwill amortization. . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0&nbsp;&nbsp;&nbsp;
        </font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 231</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 461</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Intangible amortization. . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 68</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 123</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 188</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 246</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Litigation settlement. . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 8,000</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Restructuring charges. . . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 3,116</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,116</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Other operating expenses . . . . . .
        . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 8,003</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6,580</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 15,162</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 12,403</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total other
        expenses . . . . . . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 31,615</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 26,003</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 67,058</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 51,459</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; _______</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Income before income taxes</font></b><b><font size=1 face=Courier>
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b> </h5>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; 13,247</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 15,771</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 21,318</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 31,407</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Applicable income taxes . . . . . .
        . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 2,290</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,737</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,723</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 7,350</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;________</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; ________</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; ________</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; ________</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <h5><b><font size=1 face=Courier>Net income</font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>.
        </font></b><b><font size=1 face=Courier>. </font></b><b><font size=1 face=Courier>
        </font></b></h5>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>$ 10,957</font></p>
    </td>
    <td width=95 valign=top>
      <p align=right><font size=1
  face=Courier> $ 12,034</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 18,595</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 24,057</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=88 valign=top nowrap>
      <p align=right><font size=1
  face=Courier>&nbsp; =======</font></p>
    </td>
    <td width=95 valign=top nowrap>
      <p align=right><font size=1
  face=Courier>&nbsp;======</font></p>
    </td>
    <td width=91 valign=top nowrap>
      <p align=right><font size=1
  face=Courier>=======</font></p>
    </td>
    <td width=89 valign=top nowrap>
      <p align="right"><font size=1 face=Courier>========</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding&nbsp; . . . . .
        . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;58,359,322</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>57,799,443</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>58,251,440</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>57,760,915</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>Average Shares Outstanding Assuming Dilution
        .</font></p>
    </td>
    <td width=88 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;58,851,264</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>58,035,585</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>58,669,047</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>57,919,444</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><b><font size=1 face=Courier>Per Share Data: </font></b></p>
    </td>
    <td width=88 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=95 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=91 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=89 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Basic earnings per share. . . . . .
        . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; $ 0.190</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.210</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp; 0.320</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.420</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Diluted earnings per share. . . . .
        . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; $ 0.190</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.210</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp; 0.320</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.420</font></p>
    </td>
  </tr>
  <tr>
    <td width=382 valign=top>
      <p><font size=1 face=Courier>&nbsp; Cash dividends per share. . . . . .
        . . . . . </font></p>
    </td>
    <td width=88 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; $ 0.150</font></p>
    </td>
    <td width=95 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.145</font></p>
    </td>
    <td width=91 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$&nbsp; 0.300</font></p>
    </td>
    <td width=89 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; $ 0.290</font></p>
    </td>
  </tr>
</table>

<p><font size=1 face=Courier>&nbsp;</font></p>

<p><font size=1 face=Courier>The accompanying notes are an integral part of these
consolidated financial statements.</font></p>

<p align=center><font size=1
face=Courier>&nbsp;</font></p>

<p align=center><font size=1
face=Courier>4<br
clear=all>
  </font><font size=2>FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  </font><font size=2 face=Courier>CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
  EQUITY <br>
  </font><font size=2 face=Courier>(Unaudited)<br>
  </font><font size=2 face=Courier>(Dollars in thousands)</font></p>

<table border=0 cellspacing=0 cellpadding=2 width=800>
  <tr>
    <td width=288 valign=top nowrap>
      <h1>&nbsp;</h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Common<br>
  Stock<br>
  ______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>
  Additional<br>
  Paid-In<br>
  Capital<br>
  _________</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Retained<br>
  Earnings<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  Income<br>
  _____________</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  Treasury<br>
  Stock<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Unearned<br>
  ESOP<br>
  Shares<br>
  ______</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Total<br>
  Shareholders'<br>
  Equity<br>
  _____________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1>&nbsp;</h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=right>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=right>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=right>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1><b><font size=1 face=Courier>Balance at
  December 31, 2000. . .</font></b></h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>$62,525</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>$67,223</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$272,169</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$(7,808)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(54,666)</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(5,287)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$334,156</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;
  Comprehensive income </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net
  income. . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 24,057</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 24,057</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other
  comprehensive income,<br>&nbsp;&nbsp;&nbsp;&nbsp; net of tax:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding gains on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities arising during<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the period. . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;10,765</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp; 10,765</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Less:&nbsp; reclassification<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities included in net<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp; (1,268)<br>&nbsp; _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; (1,268)<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total
  other comprehensive<br>&nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        &nbsp; 9,497<br>
        </font><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; 9,497<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Total
  comprehensive income. . . </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;24,057</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 9,497</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 33,554</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Cash
  dividends declared. . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier> (16,897)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; (16,897)</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Decrease
  in unearned ESOP shares</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 625</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 625</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Discount
  on dividend<br>&nbsp;&nbsp; reinvestment plan purchases. . </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (306)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; (306)</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Treasury
  stock reissued. . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (371)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0- </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 1,425</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 1,054</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>_________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1><b><font size=1 face=Courier>Balance at
  June 30, 2001. . .</font></b></h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>$62,525<br>
  =======</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>$66,546<br>
  =======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$279,329<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$1,689<br>
  ======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(53,241)<br>
  =========</font></p>
  </td>
    <td width=64 valign=top>
      <p><font size=1 face=Courier>$(4,662)<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$352,186<br>
  ========</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1>&nbsp;</h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1><b><font size=1 face=Courier>Balance at
  December 31, 2001 . .</font></b></h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>$62,525</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>$66,176</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$288,219</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$8,703</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(51,431)</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(4,126)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$370,066</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;
  Comprehensive income </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net
  income. . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp; -0- </font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 18,595</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;
  -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 18,595</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top height="103" nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Other
  comprehensive income,<br>&nbsp;&nbsp;&nbsp;&nbsp; net of tax:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unrealized holding gains on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities arising during<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the period. . . . </font></p>
  </td>
    <td width=64 valign=top height="103" nowrap>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top height="103" width="72">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top height="103">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top height="103">
      <p align=center><font size=1
  face=Courier><br>
        <br>
        <br>
        <br>
        </font><font size=1
  face=Courier>13,108</font></p>
  </td>
    <td width=72 valign=top height="103">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top height="103">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>
  <br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top height="103">
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        <br>
        <br>
        <br>
        </font><font size=1
  face=Courier>13,108</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Less:&nbsp; reclassification<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; adjustment for gains on<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; securities included in net<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        <br>
        <br>
        </font><font size=1
  face=Courier>&nbsp;&nbsp; (397)<br>
        </font><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp; (397)<br>
  _________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Total
  other comprehensive<br>&nbsp;&nbsp;&nbsp;&nbsp; income. . . . . . . . . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center> <font size=1
  face=Courier><br>
        12,711<br>
        _______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-<br>
  ________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        </font><font size=1
  face=Courier>&nbsp; 12,711<br>
        </font><font size=1
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Total
  comprehensive income. . .&nbsp;&nbsp; </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;18,595</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>12,711</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 31,306</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Cash
  dividends declared. . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0- </font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;(17,612)</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (17,612)</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Decrease
  in unearned ESOP shares</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 536</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 536</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Discount
  on dividend<br>&nbsp;&nbsp; reinvestment plan purchases. . </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; (316)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; 0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp;&nbsp; (316)</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Treasury
  stock reissued. . . . .</font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; (607)</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;
  </font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 4,145</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp; 3,538</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; </font></p>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>_________</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>________</font></p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1>&nbsp;</h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center>&nbsp;</p>
  </td>
    <td valign=top width="72">
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=72 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=64 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=104 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=288 valign=top nowrap>
      <h1><b><font size=1 face=Courier>Balance at
  June 30, 2002. . .</font></b></h1>
  </td>
    <td width=64 valign=top nowrap>
      <p align=center><font size=1
  face=Courier>$62,525<br>
  =======</font></p>
  </td>
    <td valign=top width="72">
      <p align=center><font size=1
  face=Courier>$65,253<br>
  =======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$289,202<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$21,414<br>
        &nbsp;=======</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>$(47,286)<br>
  =========</font></p>
  </td>
    <td width=64 valign=top>
      <p align=center><font size=1
  face=Courier>$(3,590)<br>
  ========</font></p>
  </td>
    <td width=104 valign=top>
      <p align=center><font size=1
  face=Courier>$387,518<br>&nbsp;========</font></p>
  </td>
 </tr>
</table>

<p align=center><font size=1
face=Courier>&nbsp;</font></p>

<p><font size=1 face=Courier>The accompanying notes are an integral part
of these consolidated financial statements.</font></p>

<p><font size=1 face=Courier>&nbsp;</font></p>

<p align=center><font size=1
face=Courier>5<br clear=all>
  </font><font size=2>FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CONSOLIDATED STATEMENTS
  OF CASH FLOWS<br>
  </font><font size=3
face=Courier>(Unaudited)<br>
  </font><font size=3
face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (Dollars in thousands)</font><font size=3
face=Courier>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=2 width="900">
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td colspan=2 valign=top>
      <p align=center><font size=1
  face=Courier>For the Six Months<br>
        <u>Ended June 30,</u></font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td colspan=2 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align=center><u><font size=1
  face=Courier>2002</font></u></p>
    </td>
    <td width=126 valign=top>
      <p align=center><u><font size=1
  face=Courier>2001</font></u></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <h3><b><font size=1 face=Courier>Operating Activities</font></b></h3>
    </td>
    <td width=106 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;$&nbsp; 18,595&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;$&nbsp; 24,057&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Adjustments to reconcile net income
        to net <br>
        &nbsp;&nbsp;&nbsp; cash provided (used) by operating activities:</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Provision for credit
        losses. . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 5,925&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;4,964&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization.
        . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,759&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;3,783&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Net gains on sales
        of assets. . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (663)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;(2,942)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <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 width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (2,242)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;(2,060)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        receivable. . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        654&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;1,434&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in interest
        payable . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (2,066)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>(16,858)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Decrease in income
        taxes payable . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (1,869)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; (184)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Change in deferred
        taxes . . . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (663)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; (148)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        728&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;(3,011)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; _______</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; _______</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided
        by operating activities. . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 22,158&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;9,035&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <h5><b><font size=1 face=Courier>Investing Activities</font></b></h5>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; </font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Transactions with securities held to
        maturity:</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -0-</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 43,977&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>87,957&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (15,241)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Transactions with securities available
        for sale:</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 10,237&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>71,431&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Proceeds from maturities and redemptions
        . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; 215,851&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; 199,943&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp; Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; (206,211)</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; (444,379)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sales of loans and other
        assets . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 48,401&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>46,679&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Acquisition of affiliate, net of cash
        received. . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (4)</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Investment in bank owned life insurance
        . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (5,000)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>(15,000)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net decrease (increase) in time deposits
        with banks . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3,506&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (72)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net increase in loans . . . . . . .
        . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (99,506)</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp; (108,246)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Purchases of premises and equipment
        . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (3,300)</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (3,245)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; _________</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;_________</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash used by investing
        activities. . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; (7,290)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>(164,932)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <h5><b><font size=1 face=Courier>Financing Activities</font></b></h5>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Repayments of other long-term debt.
        . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (681)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (376)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Proceeds from issuance of other long-term
        debt. . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 18,200&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 9,500&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Discount on dividend reinvestment plan
        purchases. . . . . . . . . . . . . . .&nbsp; </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        (316)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; (306)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (17,564)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;(16,882)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net decrease in Federal funds purchased
        . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (81,900)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; (3,900)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net increase (decrease) in other short-term
        borrowings. . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (40,188)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 3,760&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Sale of branch and deposits, net of
        cash received . . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        -0-</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; (9,591)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net increase in deposits. . . . . .
        . . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>90,484&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>160,852&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Proceeds from sale of treasury stock.
        . . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,726&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp; 1,054&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; _________</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;________</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net cash provided (used)
        by financing activities. . . . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (29,239) </font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>144,111&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; _________</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;________</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; Net decrease in cash and
        cash equivalents. . . . . . . . . . . . </font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; (14,371)</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>&nbsp;(11,786)</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=126 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at January
        1. . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp;&nbsp; 98,130&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>101,848&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; _________</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>________</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Cash and cash equivalents at June 30.
        . . . . . . . . . . . . . . . . . . .</font></p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;$&nbsp; 83,759&nbsp;</font></p>
    </td>
    <td width=126 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;$&nbsp; 90,062&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=656 valign=top nowrap>
      <p>&nbsp;</p>
    </td>
    <td width=106 valign=top>
      <p align="right"><font size=1 face=Courier>&nbsp;&nbsp; =========</font></p>
    </td>
    <td width=126 valign=top>
      <p align=right><font size=1
  face=Courier>========</font></p>
    </td>
  </tr>
</table>

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

<p><font size=1 face=Courier>The accompanying notes are integral part of these
consolidated financial statements.<br>
<br>
<br>
<br>
<br>
<br><br></font></p>

<p align=center><font size=1
face=Courier>6<br
clear=all>
  </font>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  <font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>June 30, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)<br>
  </font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 1&nbsp;&nbsp;&nbsp;&nbsp; Management Representation<br>
</u><br>
The consolidated financial statements include the accounts of the Corporation
and its subsidiaries.&nbsp; All significant
intercompany transactions and balances have been eliminated.&nbsp; Certain prior period amounts have been
reclassified to conform with the current period presentation.&nbsp; The accounting and reporting policies of
First Commonwealth conform with accounting principles generally accepted in the
United States of America.&nbsp; The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates, assumptions and
judgments that affect the amounts reported in the financial statements and
accompanying notes. Actual realized amounts could differ from those
estimates.&nbsp; In the opinion of
management, the unaudited interim consolidated financial statements include all
adjustments (consisting of only normal recurring adjustments) necessary for a
fair statement of financial position as of June 30, 2002, and the results of
operations for the three month and six month periods ended June 30, 2002 and
2001, and statements of cash flows and changes in shareholders' equity for the
six month periods ended June 30, 2002 and 2001.&nbsp; The results of operations for the interim periods are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.&nbsp; These interim
financial statements should be read in conjunction with the Corporation's 2001
Annual Report on Form 10-K.<br>
<br>
<u>NOTE 2&nbsp;&nbsp;&nbsp;&nbsp; Cash Flow Disclosures
(dollar amounts in thousands)</u><br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=115 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Cash
  paid during the first six months of the year for:</font></p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Interest</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 66,491</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$105,119</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Income
  Taxes</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;
  5,260</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp; 7,650</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; ESOP loan reductions</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp;
  536</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 625</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans transferred to other real estate
  owned and<br>&nbsp;&nbsp;&nbsp; repossessed assets</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier><br>&nbsp;$&nbsp;
  3,599</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  $&nbsp; 2,777</font></p>
  </td>
 </tr>
 <tr>
    <td width=511 valign=top>
      <p><font size=3 face=Courier>&nbsp; Gross increase in market value adjustment
        to<br>
        </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; securities available
        for sale</font></p>
  </td>
    <td width=108 valign=top>
      <p><br>
        <font size=3 face=Courier>&nbsp;$ 19,556</font></p>
  </td>
    <td width=115 valign=top>
      <p align="center"><font size=3 face=Courier><br>
        </font><font size=3
  face=Courier>$ 14,611</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p><font size=3 face=Courier>&nbsp; Treasury stock reissued for acquisition</font></p>
  </td>
  <td width=108 valign=top>
  <p><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp;
  812</font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=511 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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

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

<p align=center><font size=3
face=Courier>7<br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>June 30, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

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

<table border=0 cellspacing=0 cellpadding=2 width=900>
  <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td colspan=3 valign=top>
      <p align=center><u><font size=1
  face=Courier>June 30,
  2002</font></u></p>
  </td>
    <td colspan=3 valign=top>
      <p align=center><u><font size=1
  face=Courier>June 30,
  2001</font></u></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
    <td colspan=3 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td colspan=3 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=87 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=85 valign=top>
      <p align=center>&nbsp;</p>
  </td>
    <td width=87 valign=top>
      <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp;
  Unrealized holding gains (losses) arising<br>&nbsp;&nbsp;&nbsp; during the period . . . . . . . .
  . . . .</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  $20,166</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;$(7,058)</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>
        $13,108</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        </font><font size=1
  face=Courier>$16,561</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;$(5,796)</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        </font><font size=1
  face=Courier>$10,765</font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Less:
  reclassification adjustment for gains<br>&nbsp;&nbsp;&nbsp; realized in net income. . . . . .
  . . . .</font></p>
  </td>
    <td width=72 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(610)</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; 213</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp;&nbsp;&nbsp; (397)</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier><br>&nbsp; (1,950)</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        </font><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp; 682</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;<br>
        </font><font size=1
  face=Courier>&nbsp; (1,268)</font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p><font size=1 face=Courier>&nbsp; Net
  unrealized gains (losses) . . . . . . .</font></p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>&nbsp;19,556</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (6,845)</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;12,711</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;14,611</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; (5,114)</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp; 9,497</font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr height=8>
    <td width=379 height=8 valign=top nowrap>
      <p><font size=1 face=Courier>Other comprehensive income. . . . . . . . . .</font></p>
  </td>
    <td width=72 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>$19,556</font></p>
  </td>
    <td width=85 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$(6,845)</font></p>
  </td>
    <td width=85 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>$12,711</font></p>
  </td>
    <td width=85 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>$14,611</font></p>
  </td>
    <td width=85 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>&nbsp;$(5,114)</font></p>
  </td>
    <td width=87 height=8 valign=top>
      <p align=center><font size=1
  face=Courier>$ 9,497</font></p>
  </td>
 </tr>
 <tr>
    <td width=379 valign=top nowrap>
      <p>&nbsp;</p>
  </td>
  <td width=72 valign=top>
  <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>======</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
    <td width=85 valign=top>
      <p align=center><font size=1
  face=Courier>=======</font></p>
  </td>
    <td width=87 valign=top>
      <p align=center><font size=1
  face=Courier>========</font></p>
  </td>
 </tr>
</table>

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

<p><u><font size=3 face=Courier>NOTE 4&nbsp;&nbsp;&nbsp;&nbsp; Business Combination</font></u><br>
  <br>
  <font face="Courier">Effective March 1, 2002, the Corporation acquired all of
  the outstanding shares of Strategic Capital Concepts, Inc. (&quot;SCC&quot;)
  and Strategic Financial Advisors, Inc. (&quot;SFA&quot;), each a Pennsylvania
  corporation headquartered in Allison Park, Pennsylvania.&nbsp; As a registered
  investment adviser, Strategic Capital Concepts provides financial planning,
  asset management and consulting services to individuals, businesses, retirement
  plans, trusts and estates.&nbsp; Strategic Financial Advisors offers investment
  and insurance products as well as employee benefit services.&nbsp; Each of the
  outstanding shares of Strategic Capital Concepts, Inc. and Strategic Financial
  Advisors, Inc. were exchanged for shares of the Corporation's common stock.&nbsp;
  In addition, the shareholders of SCC and SFA are entitled to receive additional
  shares of the Corporation's common stock for each of the years 2002 through
  2005 based on a formula defined in the merger agreement which takes into consideration
  the financial performance of SCC and SFA after the merger date.&nbsp; The merger
  was accounted for as a purchase transaction whereby the identifiable tangible
  and intangible assets and liabilities of SCC and SFA have been recorded at their
  fair values at the acquisition date.&nbsp; Goodwill in the amount of $1.6 million
  was recorded as a result of the transaction.&nbsp; As prescribed under the purchase
  method of accounting, the results of operations of SCC and SFA from the date
  of acquisition are included in the Corporation's financial statements for 2002.&nbsp;
  This acquisition should expand the Corporation's product offerings and positively
  impact fee based revenue, which is a continuing priority.</font><br>
  <br>
</p>

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

<p align=center><font size=3
face=Courier>8</font></p>

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

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>June 30, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

<p><u><font size=3 face=Courier> NOTE 5&nbsp;&nbsp;&nbsp;&nbsp; Goodwill and Other
  Intangible Assets</font></u><br>
  <br>
  <font face="Courier">On January 1, 2002, the Corporation adopted FASB Statement
  No. 142, &quot;Goodwill and Other Intangible Assets&quot; (&quot;FAS No. 142&quot;),
  which addresses the accounting and reporting for acquired goodwill and other
  intangible assets which supersedes APB Opinion No. 17, &quot;Intangible Assets&quot;.
  FAS No. 142 includes requirements to test goodwill and indefinite-lived intangible
  assets for impairment rather than amortize them.&nbsp; As of January 1, 2002,
  the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million subject to the transitional testing provisions of FAS No. 142.&nbsp;
  Also, management reclassified an intangible asset previously recorded by an
  insurance subsidiary when acquiring the expiring list of policy holders from
  their joint-venture partner to goodwill with a net carrying amount of $718 thousand.</font></p>

<p><font size=3 face=Courier>As of January 1, 2002, the Corporation discontinued
  the amortization of goodwill which is expected to reduce other operating expense
  by $922 thousand in 2002.&nbsp; Goodwill amortization expense was $231 thousand
  and $461 thousand for the second quarter and first six months of 2001 respectively.&nbsp;
  Goodwill represented basic and diluted earnings per share of $0.004 and $0.008
  for the three and six month periods ending June 30, 2001.&nbsp; Upon implementation
  of the standard, the Corporation determined no impairment existed on its outstanding
  goodwill.</font></p>

<p><u><font size=3 face=Courier>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; New Accounting
  Pronouncements</font></u><br>
</p>

<p><font size=3 face=Courier>In
July 2001, the Financial Accounting Standards Board (&quot;FASB&quot;) issued
statement No. 141, &quot;Business Combinations&quot; (&quot;FAS No. 141&quot;)
which supersedes APB Opinion No. 16 &quot;Business Combinations&quot; but
carries forward the guidance in Opinion No. 16 related to the application of
the purchase method of accounting.&nbsp; FAS
No. 141 requires the purchase method of accounting for business combinations
initiated after June 30, 2001 and eliminates the pooling-of-interest method.&nbsp; FAS No. 141 also specifies the types of
acquired intangible assets that are required to be recognized and reported
separately from goodwill.&nbsp; Intangible
assets are recognized as assets apart from goodwill if the asset arises from
contractual or other legal rights or the asset is capable of being separated
from the acquired entity and sold or exchanged.&nbsp; In addition to the disclosure requirements in Opinion No. 16, FAS
No. 141 requires disclosure of the primary reasons for the business combination
and the allocation of the purchase price paid to the assets acquired and
liabilities assumed by major balance sheet caption.&nbsp; Implementation of FAS No. 141 did not have a material impact on
the Corporation's financial condition or results of operations.</font></p>

<p><font size=3 face=Courier>Effective January 1, 2002, the Corporation adopted
  FASB Statement No. 144, &quot;Accounting for the Impairment or Disposal of Long-Lived
  Assets&quot; (&quot;FAS No. 144&quot;) which requires that long-lived assets
  be reviewed for impairment whenever events or changes in circumstances, such
  as a significant decrease in the market value of an asset or the extent or manner
  in which an asset is used indicate that the carrying amount of an asset may
  not be recoverable.&nbsp; If there is an indication that the carrying amount
  of an asset may not be recoverable, future undiscounted cash flows expected
  to</font></p>

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

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

<p align="center"><font size=3 face=Courier>9<br
clear=all>
  </font></p>

<p align=center><font size=3
face=Courier>FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
  </font><font size=3
face=Courier>June 30, 2002<br>
  </font><font size=3
face=Courier>(Unaudited)</font></p>

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

<p><u><font size=3 face=Courier>NOTE 6&nbsp;&nbsp;&nbsp;&nbsp; New Accounting
  Pronouncements (continued)</font></u><br>
  <br>
  <font size=3
face=Courier>result from the use and disposition of the asset are estimated.&nbsp;
  If the sum of the expected cash flows is less than the carrying value of the
  asset a</font></p>

<p align=left><font size=3
face=Courier>loss is recognized for the
difference between the carrying value and the market value of the asset.&nbsp; This statement also requires measurement of
long-lived assets classified as held for sale at the lower of their carrying
amount or fair value less cost to sell and to cease depreciation or
amortization on these assets.&nbsp;
Implementation of FAS No. 144 did not have a material impact on the
Corporation's financial condition or results of operations.</font></p>

<p><font size=3 face=Courier>In April 2002, the FASB issued Statement No. 145,
  &quot;Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement
  No. 13, and Technical Corrections&quot; (&quot;FAS No. 145&quot;).&nbsp; FAS
  No. 145 rescinds Statement 4, which required all gains and losses from extinguishment
  of debt to be aggregated and, if material, classified as an extraordinary item,
  net of related income tax effect.&nbsp; As a result, the criteria in Opinion
  30 will now be used to classify those gains and losses.&nbsp; This statement
  also amends FASB Statement No. 13 to require that certain lease modifications
  that have economic effects similar to sale-leaseback transactions be accounted
  for in the same manner as sale-leaseback transactions.&nbsp; This statement
  also makes technical corrections to existing pronouncements, which are not substantive
  but in some cases may change accounting practice.&nbsp; Implementation of FAS
  No. 145 is not expected to have a material impact on the Corporation's financial
  condition or results of operations.</font></p>

<p><font size=3 face=Courier>In July 2002, the FASB issued Statement No. 146,
  &quot;Accounting for Costs Associated with Exit or Disposal Activities&quot;
  (&quot;FAS NO. 146&quot;).&nbsp; FAS No. 146 replaces EITF Issue No. 94-3, &quot;Liability
  Recognition for Certain Employee Termination Benefits and Other Costs to Exit
  an Activity (including Certain Costs Incurred in a Restructuring)&quot;.&nbsp;
  The standard requires companies to recognize costs associated with exit or disposal
  activities when they are incurred rather than at the date of a commitment to
  an exit or disposal plan.&nbsp; Statement 146 is to be applied prospectively
  to exit or disposal activities initiated after December 31, 2002.&nbsp; </font></p>

<p><font size=3 face=Courier>Had this statement been in effect, the $3.1 million
  of restructuring costs recognized by the Corporation in the second quarter of
  2002 would have been recognized in the third quarter of 2002.&nbsp; Upon adoption,
  FAS No. 146 is not expected to have a material impact on the Corporation's financial
  condition or results of operations.</font></p>

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

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

<p align=center><font size=3
face=Courier>10<br clear=all>
</font></p>

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

<p align=center><font size=3
face=Courier>ITEM 2. FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED
  SUBSIDIARIES <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

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

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS<br>
<br>
<b>First Six Months of 2002 as Compared to the
First Six Months of 2001</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation (the
&quot;Corporation&quot;) including its subsidiaries.&nbsp; In addition to historical information, this discussion and
analysis contains forward-looking statements.&nbsp;
The forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements.&nbsp; Important factors that might cause such a
difference include, but are not limited to, those discussed in this
&quot;Management's Discussion and Analysis of Financial Condition and Results
of Operations.&quot;&nbsp; Readers are
cautioned not to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date hereof.&nbsp; The Corporation undertakes no obligation to
publicly revise or update these forward-looking statements to reflect events or
circumstances that arise after the date hereof.<br>
<br>
Net income for the first half of 2002 was $18.6 million which reflected a
decrease of $5.5 million compared to 2001 results of $24.1 million.&nbsp; Basic and diluted earnings per share were
$0.32 for the first six months of 2002 compared to $0.42 for the first six
months of 2001.&nbsp; The 2002 period
included $3.1 million ($2.0 million after-tax) of nonrecurring restructuring
charges associated with the merger of the charters of the Corporation's two
commercial banks (First Commonwealth Bank and Southwest Bank) and the adoption
of a new common brand and identity for all financial services
subsidiaries.&nbsp; These restructuring
charges included $2.8 million related to separation pay for those employees
whose positions will be eliminated or chose not to relocate as a result of the
upcoming merger of the two subsidiary banks. The savings from this
consolidation are expected to be approximately $2.0 million for both 2003 and
2004.&nbsp; Additional separation costs could
be recorded during the third quarter of 2002 as processes and staffing levels
are re-evaluated during continued integration of banking operations.&nbsp; Additional restructuring charges anticipated
in the third quarter will also create future cost reductions as various boards
and committees are consolidated and reduced in size in order to provide more
effective and efficient corporate governance.&nbsp;
While the financial impact of these additional costs for 2002 are not
immediately determinable the effect on future years is expected to be positive
and will be quantified during the third quarter.&nbsp; The second half of 2002 will also include additional charges
related to the design and implementation of the new common brand and identity.&nbsp; Net income for the first half of 2002 was
negatively impacted by the $8.0 million litigation settlement ($5.2 million,
net of tax effect) recorded in the first quarter.&nbsp; This settlement related to a lender liability action filed in
1994 against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.&nbsp; Management believes that liability insurance
will cover a portion of the settlement, but the precise amount of insurance
coverage has not yet been determined. <br>
<br><br></font></p>

<p align=center><font size=3
face=Courier>11<br clear=all>
</font></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 CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier>First Six Months of 2002 as Compared to the First
  Six Months of 2001</font></b><br>
</p>

<p><font size=3 face=Courier>Core
net income (excluding securities transactions, gains on asset sales and
nonrecurring charges) was $25.4 million for the six months of 2002,
representing an increase of 15.0% compared to $22.1 million for 2001.&nbsp; Gains on the sale of assets includes securities
gains of $615 thousand and $2.0 million in 2002 and 2001, respectively, as well
as a $989 thousand gain on the sale of a branch and a block of mortgages in
2001.&nbsp; Diluted earnings per share for
core earnings was $0.43 for the six months of 2002 compared to diluted earnings
per share of $0.38 for the six months of 2001.&nbsp;
Return on average assets was 0.82% and return on average equity was
9.77% during the 2002 period, compared to 1.09% and 13.91%, respectively during
the same period of 2001.&nbsp; Return on
average assets and return on average equity based on core earnings were 1.13%
and 13.36%, respectively for the first half of 2002 compared to 1.00% and
12.79%, respectively for the first half of 2001.</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=271 colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>For the Six Months<br>
  Ended June 30,</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
  <td width=151 valign=top>
  <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <h6><b><u><font size=3 face=Courier>Reconciliation of Core Earnings</font></u></b></h6>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Net
  income as reported</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$18,595</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$24,057</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Non-core
  items (net of tax):</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=151 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Gains on sale of securities </font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=151 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; and other assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (400)</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (1,940)</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Restructuring charges</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 2,025</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>&nbsp; Litigation settlement</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 5,200</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  net income</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$25,420</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>$22,117</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;=======</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  basic earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.44</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.38</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  diluted earnings per share</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; $0.43</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  $0.38</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average assets</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.13%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 1.00%</font></p>
  </td>
 </tr>
 <tr>
  <td width=463 valign=top>
  <p><font size=3 face=Courier>Core
  return on average equity</font></p>
  </td>
  <td width=120 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 13.36%</font></p>
  </td>
  <td width=151 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 12.79%</font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<p align=center>&nbsp;</p>

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

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier>First Six Months of 2002 as Compared to the First
  Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p><font size=3 face=Courier>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 was $76.0
  million for the first six months of 2002 compared to $68.2 million for the same
  period of 2001.&nbsp; Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) was 3.79% for the six months
  of 2002 compared to 3.49% for the six months of 2001.&nbsp; The rise in net
  interest margin for the 2002 period compared to 2001 resulted primarily from
  deposit rate decreases that were greater than loan yield decreases compared
  to the 2001 period as interest rates fell to near historic lows.&nbsp; The cost
  of deposits fell by 134 basis points (1.34%) for the first six months of 2002
  compared to the first six months of 2001, while loan yields decreased by 118
  basis points (1.18%) over the same time period.&nbsp; The Corporation expects
  ongoing pressure on net interest income despite continual management of interest
  rate risk.&nbsp; The Corporation has undertaken numerous initiatives to expand
  its fee-based services to minimize the shrinkage of the net interest margin.</font></p>

<p><font size=3 face=Courier>The following table shows the effect of changes in
  volumes and rates on interest income and interest expense.<br>
  <br>
  </font><font size=3 face=Courier>Analysis of Changes in Net Interest Income<br>
  </font><font size=3 face=Courier>(dollar amounts in thousands)</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=343 colspan=3 valign=top>
  <p align=center><font size=3
  face=Courier>2002 Change from 2001<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>to Volume</u></font></p>
  </td>
  <td width=115 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>to Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Time deposits with banks</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;$(&nbsp;&nbsp; 19)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>$&nbsp;&nbsp; 10</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$(&nbsp;&nbsp;
  29)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Securities</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (3,117)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,378</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (4,495)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Federal funds sold</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; (484)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; (470)</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (14)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Loans</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(12,430)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,708</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(15,138)</font></p>
  </td>
 </tr>
 <tr height=5>
  <td width=391 height=5 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 height=5 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 height=5 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 height=5 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest income</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(16,050)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;3,626</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(19,676)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities: </font></p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Deposits</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(21,197)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; (700)</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(20,497)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Short-term borrowings</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;
  (2,966)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;2,249</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp; (5,215)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp; Long-term debt</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 328</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;&nbsp; 410</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (82)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total interest expense</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;(23,835)</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;1,959</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;(25,794)</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;_______</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>_______</font></p>
  </td>
  <td width=115 valign=top>
      <p><font size=3 face=Courier>&nbsp;________</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net interest income</font></p>
  </td>
  <td width=118 valign=top>
  <p align=center><font size=3
  face=Courier>$ 7,785</font></p>
  </td>
    <td width=110 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;$ 1,667</font></p>
  </td>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;$ 6,118</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
    <td width=118 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;=======</font></p>
  </td>
  <td width=110 valign=top>
  <p align=center><font size=3
  face=Courier>=======</font></p>
  </td>
  <td width=115 valign=top>
      <p><font size=3 face=Courier>&nbsp;========</font></p>
  </td>
 </tr>
 <tr>
  <td width=391 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=118 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=110 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=115 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

<p align=center><font size=3
face=Courier>13</font></p>

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

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier>First Six Months of 2002 as Compared to the First
  Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p><font size=3 face=Courier>Interest and fees on loans declined $12.4 million
  for 2002 compared to 2001 levels.&nbsp; The decrease in interest income included
  decreases in interest income due to rate of $15.1 million which were partially
  offset by increases in interest income due to volume of $2.7 million.&nbsp;
  The total yield on loans for the first six months of 2002 was 7.23%, compared
  to loan yields of 8.41% for the first six months of 2001.&nbsp; Average loans
  for the first half of 2002 rose $72.9 million compared to the first half of
  2001 as increases in commercial loans and municipal loans were partially offset
  by decreases in average mortgage loans.&nbsp; During 2002 the Corporation has
  continued to offer competitive fixed rate mortgages to customers wanting to
  lock in rates during the current low interest rate environment.&nbsp; The Corporation
  has reduced interest rate risk related to new mortgage loan production through
  utilization of various lending programs whereby loans originated by subsidiary
  banks are immediately sold along with the right to service these loans.</font></p>

<p><font size=3 face=Courier> Interest income on investments decreased $3.1 million
  for the six months of 2002 compared to the corresponding period of 2001 as decreases
  in interest income due to rate were only partially offset by increases in interest
  income due to volume.&nbsp; Total yield on investments was 6.12% for the first
  half of 2002 compared to 6.63% for the first half of 2001.&nbsp; Decreases in
  interest income due to rate for U.S. government agency securities were $2.8
  million as yields on U.S. government agency securities decreased 50 basis points
  (0.50%) for the 2002 period compared to 2001.&nbsp; Average investments for
  the six months of 2002 included an increase of $48.7 million for corporate bonds
  compared to 2001 generating an increase in interest income of $1.8 million.<br>
  <br>
  </font><font size=3
face=Courier>Interest on deposits fell $21.2 million for the 2002 period compared
  to 2001, as interest on total savings deposits decreased by $5.5 million and
  interest on time deposits decreased by $15.7 million.&nbsp; Interest expense
  on deposits for the first half of 2002 reflected decreases due to rate of $20.5
  million as the cost of total savings deposits decreased 119 basis points (1.19%)
  and the cost of time deposits slipped 143 basis points (1.43%) compared to costs
  for the first half of 2001.&nbsp; Average deposits for the first six months
  of 2002 included decreases in average time deposits of $145.5 million which
  were partially offset by increases in average total savings deposits of $89.9
  million over 2001 averages.<br>
  <br>
  Interest expense on short-term borrowings decreased $3.0 million for the six
  months of 2002 compared to the corresponding period of 2001 as decreases in
  interest expense due to rate of $5.2 million were partially offset by increases
  in interest expense due to volume of $2.2 million compared to 2001 levels.&nbsp;
  The cost of short-term borrowings for the 2002 period decreased by 298 basis
  points (2.98%) compared to 2001 costs of 4.84%.&nbsp; The average balance of
  short-term borrowings for the first half of 2002 increased by $93.6 million
  compared to 2001 averages.</font></p>

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

<p align="center"><font size=3 face=Courier>14<br>
  </font></p>

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

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

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p align=left><font size=3
face=Courier>RESULTS OF OPERATIONS (continued)</font></p>

<p align=left><b><font size=3 face=Courier>First Six Months of 2002 as Compared
  to the First Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p align=left><font size=3
face=Courier>Interest expense on long-term debt increased $328 thousand for the
  six&nbsp; months of 2002 compared to the corresponding period of 2001 as a result
  of volume increases.&nbsp; Average long-term debt for the six months of 2002
  increased by $14.5 million compared to 2001 averages as maturities were extended
  for short term borrowings from the Federal Home Loan Bank, to take advantage
  of the lower interest rate environment.<br>
  <br>
  The provision for credit losses was $5.9 million for the six months of 2002
  compared to $5.0 million for the six months of 2001.&nbsp; Net charge-offs against
  the allowance for credit losses were $5.8 million in the 2002 period, reflecting
  an increase of $1.1 million compared to 2001 levels.&nbsp; <br>
  The 2002 period included increases in net charge-offs for commercial loans not
  secured by real estate of $831 thousand compared to 2001 net charge-offs.&nbsp;
  Net charge-offs as a percent of average loans outstanding were 0.22% for the
  first half of 2002 compared to 0.19% for the first half of 2001.&nbsp; The provision
  for credit losses as a percent of net charge-offs was 102.51% at June 30, 2002
  compared to 106.07% at June 30, 2001.&nbsp; See the &quot;Credit Review&quot;
  section for an analysis of the credit quality of the loan portfolio.<br>
  <br>
  <br>
  </font><font size=3 face=Courier>&nbsp;</font></p>

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

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

<p align=center><font size=3
face=Courier>15<br clear=all>
</font></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 CONSOLIDATED SUBSIDIARIES
  <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p align=left><font size=3
face=Courier>RESULTS OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier>First Six Months of 2002 as Compared to the First
  Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p><font size=3 face=Courier><br>
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2002 and 2001.<br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
    </td>
    <td width=115 valign=top>
      <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=235 colspan=2 valign=top>
      <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>Balance January 1,</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>$34,157</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$33,601</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>Loans charged off:</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 2,972</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 860</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-construction&nbsp; </font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 351</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 625</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-residential</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 863</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 1,110</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans to individuals&nbsp; </font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 2,187</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 2,344</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 236</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 306</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp; ______</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total loans charged off</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>$ 6,612</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$ 5,245</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>Recoveries of previously charged off loans:</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=115 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Commercial, financial and agricultural</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 505</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 101</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-construction</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-commercial</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Real estate-residential&nbsp; </font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 11</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        42</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans to individuals</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 311</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 417</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp; Lease financing receivables</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        5</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total recoveries</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 832</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 565</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Net charge offs</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 5,780</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 4,680</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>Provision charged to operations</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; 5,925</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;&nbsp; 4,964</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>_______</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;_______</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p><font size=3 face=Courier>Balance June 30,</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>$34,302</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$33,885</font></p>
    </td>
  </tr>
  <tr>
    <td width=499 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>=======</font></p>
    </td>
    <td width=115 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;=======</font></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;</font></p>

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

<p align=center><font size=3
face=Courier>16</font></p>

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

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

<p><font size=3 face=Courier><b>First Six Months of 2002 as Compared to the First
  Six Months of 2001</b> (continued)</font></p>

<p><font size=3 face=Courier>Net securities gains were $615 thousand during the
  first half of 2002 compared to $2.0 million for the first half of 2001.&nbsp;
  Securities gains during the 2002 period resulted primarily from the sale of
  Pennsylvania bank stocks, U.S. treasury securities and fixed rate corporate
  bonds classified as securities &quot;available for sale&quot; with book values
  of $1.1 million, $1.5 million, and $5.6 million, respectively.&nbsp; The first
  half of 2001 included securities gains of $1.7 million generated from the sale
  of fixed rate corporate bonds with book values of $37.4 million.&nbsp; Additional
  &nbsp;&nbsp;&nbsp;securities gains during the first half of 2001 resulted from
  the sale of U.S. government agency securities classified as securities &quot;available
  for sale&quot; with a book value of $10.0 million.</font></p>

<p><font size=3 face=Courier>Service charges on deposits for the first half of
  2002 increased $151 thousand compared to the first half of 2001, primarily as
  a result of increases in bank club and account analysis fees.&nbsp; Insurance
  commissions increased $519 thousand for the first half of 2002 compared to the
  first half of 2001 and included an increase of $274 thousand in annuity sales
  revenues.&nbsp; Insurance commissions for the 2002 period also included increases
  in commercial lines and advanced life insurance income.&nbsp; Insurance commissions
  for 2002 were also positively impacted by inclusion of Strategic Capital Concepts
  insurance production since March 1, 2002.&nbsp; </font></p>

<p><font size=3 face=Courier>Other income for the first six months of 2002 fell
  to $5.7 million representing a decline of $791 thousand compared to $6.5 million
  reported for the first six months of 2001. This decrease was due in part to
  gains on sale of assets included in the 2001 period.&nbsp; The Corporation sold
  one of its branches during the first quarter of 2001 which resulted in a gain
  of $777 thousand.&nbsp; The 2001 period also included a gain of $212 thousand
  from the sale of $12.9 million of 30 year residential mortgage loans with significant
  prepayment exposure during the falling interest rate environment.&nbsp; </font></p>

<p><font size=3 face=Courier>Fee based revenue, such as insurance commissions,
  mutual fund sales fees and investment management fees are expected to be positively
  impacted in future periods as the Corporation's newly acquired subsidiaries,
  Strategic Capital Concepts and Strategic Financial Advisors are incorporated
  into the integrated advisory sales model utilized to integrate products between
  the Corporation's bank, insurance and trust subsidiaries.&nbsp; Certified financial
  planners from the new subsidiaries will also be included on the employee team
  used to deliver products and services to commercial customers through our &quot;Total
  Solutions Financial Management&quot; approach.</font></p>

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

<p align="center"><font size=3 face=Courier>17<br>
  <br>
  <br>
  <br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES <br>
  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier>First Six Months of 2002 as Compared to the First
  Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p><font size=3 face=Courier>Noninterest expense was $67.1 million for the six
  months of 2002 reflecting a rise of $15.6 million over the 2001 level of $51.5
  million.&nbsp; The increase in noninterest expense for 2002 was primarily the
  result of nonrecurring charges for the previously described litigation settlement
  and corporate restructuring of $8.0 million and $3.1 million, respectively.&nbsp;&nbsp;
  Employee costs were $29.4 million for the first half of 2002, representing 1.30%
  of average assets on an annualized basis compared to $27.1 million or 1.23%
  of average assets on an annualized basis for 2001.&nbsp; Salary costs for the
  2002 period increased $1.4 million or 6.6% compared to 2001 levels of $21.3
  million.&nbsp; Employee benefit costs for the first six months of 2002 reflected
  increases of $943 thousand over the first six months of 2001 and included increases
  in health insurance costs, expenses of the Corporation's employee stock ownership
  plan and 401(k) plan compared to the first six months of 2001.</font></p>

<p><font size=3 face=Courier> As a result of the merger of the Corporation's banking
  subsidiaries, Southwest Bank and First Commonwealth Bank, which is expected
  to occur later this year, banking operations are in the process of being consolidated
  under First Commonwealth Bank.&nbsp; This change will provide banking clients
  with greater flexibility, efficiency and seamless service throughout our market-area.&nbsp;
  As a result of this merger, there will be a consolidation of support functions
  with some staff positions being eliminated.&nbsp; The personnel within the branches
  and relationship managers in the corporate services will continue to serve in
  the same manner.&nbsp; Employees whose positions were being eliminated were
  notified and continued to work in their positions for at least 60 days.&nbsp;
  Notified employees had the opportunity to seek other positions within the Corporation
  or to receive a separation package based on years of service.&nbsp; A one-time
  charge of $2.8 million for the cost of the separation package is included in
  restructuring charges reported on the income statement for the second quarter
  of 2002.&nbsp; In subsequent years a cost savings related to employee costs
  will be recognized which is estimated to be approximately $2.0 million annually.&nbsp;
  Restructuring charges during 2002 also include $324 thousand related to writing
  off obsolete signs and supplies due to the name change under one charter.<br>
  </font></p>

<p><font size=3 face=Courier>Occupancy
expenses decreased for the 2002 period compared to 2001 primarily as a result
of decreases in building repairs, building depreciation and utilities
costs.&nbsp; Furniture and equipment expenses
of $5.0 million for the first six months of 2002 reflected increases of $586
thousand over 2001 levels and included increases in computer software
depreciation and software maintenance of $783 thousand, primarily related to
the upgrade of core banking software.&nbsp; </font></p>

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

<p align=center><font size=3
face=Courier>18</font></p>

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

<p>&nbsp;</p>

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>
<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<p><b><font size=3 face=Courier> </font></b><b><font size=3 face=Courier>First
  Six Months of 2002 as Compared to the First Six Months of 2001</font></b> <font face="Courier">(continued)</font></p>

<p><font size=3 face=Courier>Outside data processing expense decreased $662 thousand
  for the first half of 2002 compared to the first half of 2001 and was positively
  impacted by the conversion of Southwest Bank from outsourced processing to that
  provided by a subsidiary of the Corporation.&nbsp; Accounting changes from the
  adoption of FAS No. 142 resulted in a decrease of $461 thousand of goodwill
  amortization for the first half of 2002 compared to the first half of 2001.&nbsp;
  Under the new pronouncement, goodwill amortization was discontinued effective
  January 1, 2002.<br>
  <br>
  Other operating expenses for the 2002 period were $15.2 million reflecting a
  rise of $2.8 million over the 2001 amount of $12.4 million.&nbsp; The first
  six months of 2002 included increases in loss on sale of assets, primarily loss
  on sale of vehicles previously leased, of $447 thousand compared to 2001 levels.&nbsp;
  Other professional fees for the 2002 period reflected increases of $996 thousand
  over the first half of 2001 and included consulting fees related to implementation
  of the Corporation's &quot;Balanced Scorecard&quot; performance measurement
  system, enhancements to product and customer profitability systems and corporate
  restructuring.&nbsp; Consultants are also being utilized to assist in the ongoing
  efforts to develop a world class sales culture and to generate new deposit dollars
  and relationships.&nbsp; Corporate restructuring and movement towards a sales
  culture also impacted the decision to have employee benefit plans reviewed by
  outside specialists during 2002.&nbsp; Promotions expense for the first six
  months of 2002 reflected an increase of $1.0 million compared to the first six
  months of 2001, due in part to expenses incurred in the successful marketing
  campaign for free checking products introduced during 2002. These products are
  expected to have a favorable impact on deposit growth, costs and service charge
  revenue in future periods as well as providing potential add on sales of other
  financial products and services.</font></p>

<p><font size=3 face=Courier>Income tax expense was $2.7 million for the first
  six months of 2002 compared to $7.4 million for the first six months of 2001.&nbsp;
  The Corporation's effective tax rate was 12.77% for the 2002 period compared
  to 23.4% for the corresponding period of 2001.&nbsp; Income tax expense for
  the 2002 period included $2.8 million and $1.1 million tax benefit resulting
  from the previously described litigation settlement and restructuring charges,
  respectively.&nbsp; The Corporation's effective tax rate for the 2002 period,
  excluding these one time charges was 20.4%.<br>
  <br>
  </font><font size=3 face=Courier>&nbsp;</font></p>

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

<p align=center><font size=3
face=Courier>19</font></p>

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

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>
<p><font size=3 face=Courier>RESULTS OF OPERATIONS (continued)</font><font size=3
face=Courier>&nbsp;</font></p>

<h3><b><font size=3 face=Courier>Three Months Ended June 30, 2002 as Compared
  to the Three Months Ended<br>
  </font></b><b><font size=3 face=Courier>June 30, 2001</font></b></h3>

<p><font size=3 face=Courier>Net income was $11.0 million for the second quarter
  of 2002 a decrease of $1.1 million compared to 2001 results of $12.0 million.&nbsp;
  The 2002 period included a $3.1 million ($2.0 million after-tax) one-time restructuring
  charge related to employee separation pay and costs related to merging the Corporation's
  two subsidiary banks under one charter.&nbsp; Core earnings (excluding securities
  transactions, nonrecurring gains on sale of assets and nonrecurring charges)
  increased $1.7 million or 15.99% in the 2002 period.&nbsp; Basic and diluted
  earnings per share were $0.19 during the 2002 quarter compared to $0.21 for
  the same period of 2001.&nbsp; Diluted core earnings per share was $0.21 for
  the second quarter of 2002 compared to $0.19 for the second quarter of 2001.&nbsp;
  Return on average assets was 0.96% and return on average equity was 11.43% during
  the 2002 quarter, compared to 1.08% and 13.69%, respectively during the 2001
  quarter.&nbsp; Core return on average assets and core return on average equity
  were 1.11% and 13.15% for the second quarter of 2002.</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=271 colspan=2 valign=top>
      <p align=right><font size=3
  face=Courier>For the Quarter&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
        Ended June 30,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><u><font size=3
  face=Courier>2002</font></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
    </td>
    <td width=151 valign=top>
      <p align=right><u><font size=3
  face=Courier>2001</font></u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=center>&nbsp;</p>
    </td>
    <td width=151 valign=top>
      <p align=center>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <h6><b><u><font size=3 face=Courier>Reconciliation of Core Earnings</font></u></b></h6>
    </td>
    <td width=120 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=151 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=151 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Net income as reported</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;$10,957&nbsp;</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>$12,034&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Non-core items (net of tax):</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=151 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>&nbsp; Gains on sale of securities and other
        assets</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; (374)</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; (1,164)</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>&nbsp; Restructuring charges</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp; 2,025&nbsp;</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;________</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>________</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Core net income</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;$12,608&nbsp;</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>$10,870&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;========</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>========</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Core basic earnings per share</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp; $0.22&nbsp;</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; $0.19&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Core diluted earnings per share</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp; $0.21&nbsp;</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp; $0.19&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Core return on average assets</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.11%</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 0.97%</font></p>
    </td>
  </tr>
  <tr>
    <td width=463 valign=top>
      <p><font size=3 face=Courier>Core return on average equity</font></p>
    </td>
    <td width=120 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 13.15%</font></p>
    </td>
    <td width=151 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp; 12.37%</font></p>
    </td>
  </tr>
</table>

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

<p><font size=3 face=Courier>Net
interest income for the second quarter of 2002 of $37.9 million represented an
increase of $4.0 million compared to the second quarter of 2001.&nbsp; Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2002
period was 3.77%, reflecting an increase of 33 basis points (0.33%) from 3.44%
reported in 2001 as the cost of funds declined more than asset yields, when
interest rates fell throughout 2001 and remained at low levels during the 2002
period.</font></p>

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

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

<p align=center><font size=3
face=Courier>20</font></p>

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

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

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>
<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<b><font size=3 face=Courier>Three Months Ended June 30, 2002 as Compared to the
Three Months Ended<br>
June 30, 2001 </font></b>(<font face="Courier">continued) </font>
<p><font size=3 face=Courier>Interest and fees on loans for the three months ended
  June 30, 2002 decreased $5.5 million compared to the three months ended June
  30, 2001, primarily as a result of rate decreases, most notably for variable
  rate commercial loans.&nbsp; The total yield on loans for the second quarter
  of 2002 was 7.15% representing a decrease of 107 basis points (1.07%) compared
  to yields for the second quarter of 2001.&nbsp; Declines in interest and fees
  on loans due to rate for the second quarter of 2002 compared to the second quarter
  of 2001 were partially offset by increases in interest income due to volume
  for commercial loans.&nbsp; Average loans for the second quarter of 2002 increased
  $80.0 million compared to averages for the second quarter of 2001 and included
  increases in commercial loans and direct installment loans which were partially
  offset by decreases in residential mortgage loans.</font></p>

<p><font size=3 face=Courier>Interest income on investments for the three months
  ended June 30, 2002 was $24.6 million, reflecting a decrease of $1.7 million
  compared to the three months ended June 30, 2001.&nbsp; Decreases in interest
  income due to rate for government agency securities were $1.2 million as yields
  on government agency securities declined 46 basis points (0.46%) compared to
  yields for 2001.&nbsp; Total yield on investments was 6.09% for the second quarter
  of 2002 compared to 6.56% for the second quarter of 2001.&nbsp; Changes in investment
  income due to rate totaled $2.0 million for the 2002 period as overall interest
  rates were lower than in the prior year.&nbsp; Rate decreases during 2002 were
  slightly offset by volume increases, most notably, volume increases of $521
  thousand for corporate bonds.&nbsp; Average corporate bonds for the second quarter
  of 2002 increased $29.4 million compared to 2001 averages.</font></p>

<p><font size=3 face=Courier>Interest on deposits for the second quarter of 2002
  was $20.8 million reflecting a decrease of $10.5 million compared to the second
  quarter of 2001 as both rates and volumes declined for the 2002 period.&nbsp;
  Interest expense on savings reflected decreases due to rate of $2.7 million
  for the 2002 period as savings costs fell from 2.31% in 2001 to 1.21% in 2002.&nbsp;
  Interest on time deposits reflected decreases due to rate of $8.4 million and
  decreases due to volume of $2.1 million for the second quarter of 2002 compared
  to the second quarter of 2001.&nbsp; Average time deposits were $1,626.4 million
  for 2002 compared to $1,770.2 million for the corresponding period of 2001.&nbsp;
  The cost of time deposits was 4.28% for 2002 compared to 5.71% for 2001.</font></p>

<p><font size=3 face=Courier>Interest on short-term borrowings for the second
  quarter of 2002 decreased $1.2 million compared to the second quarter of 2001
  as rate decreases were partially offset by volume increases.&nbsp; Short-term
  borrowing costs were 1.85% for the 2002 period compared to 4.32% for the 2001
  period resulting in a decrease in interest expense due to rate of $2.0 million.&nbsp;
  Average short-term borrowings increased $73.4 million for the second quarter
  of 2002 compared to the corresponding period of 2001 generating an increase
  in</font></p>

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

<p align=center><font size=3
face=Courier>21</font></p>

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

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

<b><font size=3 face=Courier>Three Months Ended June 30, 2002 as Compared to the
Three Months Ended<br>
June 30, 2001 </font></b>(<font face="Courier">continued) </font>
<p><font size=3 face=Courier>interest expense due to volume of $800 thousand.&nbsp;
  Interest on long-term debt for the three months ended June 30, 2002 increased
  $200 thousand over the three months ended June 30, 2001.&nbsp; Average long-term
  debt increased $16.2 million for the 2002 quarter compared to the 2001 quarter.</font></p>

<p><font size=3 face=Courier>The provision for credit losses was $3.0 million
  for the three months ended June 30, 2002 compared to $2.6 million for the three
  months ended June 30, 2001.&nbsp; Net charge-offs for the second quarter of
  2002 were $2.8 million, compared to net charge-offs of $3.0 million for the
  second quarter of 2001.&nbsp; Net charge-offs for the second quarter of 2002
  included decreases in charge-offs of residential mortgage loans and commercial
  loans secured by real estate of $346 thousand and $207 thousand respectively,
  compared to 2001 levels.</font></p>

<p><font size=3 face=Courier>Net securities gains were $576 thousand for the second
  quarter of 2002 compared to securities gains of $1.8 million for the second
  quarter of 2001.&nbsp; The 2002 period included gains primarily from the sale
  of Pennsylvania bank stocks in the amount of $475 thousand.&nbsp; Securities
  gains for the second quarter of 2001 resulted primarily from sales of fixed
  rate corporate bonds classified as securities &quot;available for sale&quot;
  with book values of $37.4 million.</font></p>

<p><font size=3 face=Courier>Insurance commissions increased $318 thousand for
  the second quarter of 2002 compared to the corresponding period of 2001.&nbsp;
  Although service charges on deposits increased by only $39 thousand during 2002
  they are expected to be favorably impacted in future periods by the Corporation's
  &quot;High Performance&quot; checking products which were introduced during
  2002.</font></p>

<p><font size=3 face=Courier>Other income for the three months ended June 30,
  2002 was $3.1 million, an increase of $273 thousand over $2.9 million reported
  for the three months ended June 30, 2001.&nbsp; Income from gains on sale of
  other real estate owned, bank club income and check printing revenue increased
  $334 thousand, $104 thousand and $52 thousand compared to 2001 revenues.&nbsp;
  Other income for the second quarter of 2002 reflected decreases in debit card
  interchange and mutual fund sales commissions of $176 thousand and $150 thousand
  respectively.</font></p>

<p><font size=3 face=Courier>Total noninterest expense for the three months ended
  June 30, 2002 was $31.6 million reflecting an increase of $5.6 million over
  the $26.0 million that was reported for the corresponding period of 2001.&nbsp;
  The increase for 2002 resulted primarily from the previously discussed restructuring
  charges of $3.1 million.&nbsp; Additional restructuring costs are expected to
  be incurred during the third quarter of 2002.&nbsp; Employee costs were $14.8
  million during the second quarter of 2002 reflecting an increase of $1.4 million
  over 2001 levels.&nbsp; Salaries increased by $884 thousand for the second quarter
  of 2002 and employee benefit costs increased $482 thousand.&nbsp; Employee benefit
  cost increases resulted primarily from increases in health insurance costs of
  $261 thousand compared to 2001 levels. </font></p>

<p>&nbsp;</p>

<p align=center><font size=3
face=Courier>22</font></p>

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

<p align=center>&nbsp;</p>

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>
<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)</font></p>

<b><font size=3 face=Courier>Three Months Ended June 30, 2002 as Compared
  to the Three Months Ended<br>
  June 30, 2001 </font></b><font face="Courier">(continued) </font>
<p><font size=3 face=Courier>Furniture and equipment expenses increased $314 thousand
  for the second quarter of 2002 primarily as a result of increases in software
  depreciation and software maintenance costs.&nbsp; Outside data processing expenses
  decreased $337 thousand for the second quarter of 2002 as one of the Corporation's
  subsidiary banks converted to in-house data processing during the fourth quarter
  of 2001.&nbsp; The three months ended June 30, 2002 reflected a decrease of
  $231 thousand related to implementation of FAS No. 141 during 2002 which changed
  the accounting treatment for goodwill from an amortizing intangible to a non-amortizing
  intangible.&nbsp; </font></p>
<p><font size=3 face=Courier>Other operating expenses for the second quarter of
  2002 increased $1.4 million and included increases for loss on asset sales,
  other professional fees and promotions expenses of $104 thousand, $625 thousand
  and $595 thousand respectively, compared to 2001 costs.&nbsp; As previously
  discussed, these increases resulted from various restructuring and marketing
  initiatives including sales and product development including branding, as well
  as performance measurement system enhancements.&nbsp; Directors fees are expected
  to be reduced in future periods as corporate governance is re-evaluated and
  board structures are modified for more effective and efficient management.&nbsp;
  One-time charges and estimates of future cost savings of this initiative are
  expected to be identified later this year.&nbsp; Postage expense decreased $138
  thousand during the second quarter of 2002 as customer privacy mailings were
  incorporated in regular mailings in the 2002 period and additional cost control
  initiatives were also implemented.</font></p>

<p><font size=3 face=Courier>Income taxes were $2.3 million for the 2002 period
  compared to $3.7 million for the corresponding period of 2001.&nbsp; The Corporation's
  effective tax rate was 17.29% for the second quarter of 2002 compared to 23.7%
  for the second quarter of 2001.&nbsp; The 2002 period included the tax benefit
  of $1.1 million related to the nonrecurring expenses for restructuring.&nbsp;
  The Corporation's effective tax rate excluding nonrecurring expenses was 20.66%
  for the three months ended June 30, 2002.</font></p>

<p><u><font size=3 face=Courier>LIQUIDITY<br>
  <br>
  </font></u><font face="Courier">Liquidity is a measure of the Corporation's
  ability to efficiently meet normal cash flow requirements of both borrowers
  and depositors.&nbsp; In the ordinary course of business, funds are generated
  from the banking subsidiaries core deposit base and the maturity or repayment
  of earning assets such as securities and loans.&nbsp; As an additional secondary
  source, short-term liquidity needs may be provided through the use of overnight
  Federal funds purchased, borrowings through the use of lines available for repurchase
  agreements and borrowings from the Federal Reserve Bank.&nbsp; Additionally,
  the banking subsidiaries are members of the Federal Home Loan Bank and may borrow
  under overnight and term borrowing arrangements.&nbsp; The sale of earning assets
  may also provide an additional source of liquidity.</font><br>
  <br>
</p>

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

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

<p align=center><font size=3
face=Courier>23</font></p>

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

<p>&nbsp;</p>

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><u><font size=3 face=Courier>LIQUIDITY</font></u> <font face="Courier">(Continued)</font><u><br>
</u>&nbsp;<br>
  <font face="Courier">The Corporation monitors liquidity through regular computations
  of prescribed liquidity ratios.&nbsp; The Corporation actively manages liquidity
  within a defined range and has developed liquidity contingency plans, including
  ensuring availability of alternate funding sources to maintain liquidity under
  a variety of business conditions.&nbsp; In addition to the previously described
  funding sources, the Corporation also has the ability to access the capital
  markets.</font></p>

<p><font size=3 face=Courier>At June 30, 2002 total earning assets were $4,348
  million, up $13.1 million from the $4,335 million recorded at December 31, 2001.&nbsp;
  Net loans rose $44.9 million for the first six months of 2002 fueled by increases
  in the commercial, municipal and installment categories offset in part by decreases
  in mortgage loans.&nbsp; Interest bearing liabilities settled at $3,776 million
  at June 30, 2002, up slightly from year-end 2001.&nbsp; Total borrowings dropped
  by $105.1 million for the first six months of 2002 due primarily to the rise
  in deposits.&nbsp; Deposits grew $90.5 million for the first six months of 2002
  as increases in time deposits of $33.6 million and total savings of $75.5 million
  were partially offset by a decline in demand deposits of $18.6 million.&nbsp;
  The Corporation has launched a program (&quot;High Performance Checking&quot;)
  that is focused on growing deposits, primarily in the low cost categories, that
  is expected to have a favorable impact on deposit growth and mix.<br>
  <br>
  Marketable securities that the Corporation holds in its investment portfolio
  are an additional source of liquidity. These securities are classified as &quot;securities
  available for sale&quot; and while the Corporation does not have specific intentions
  to sell these securities, they have been designated as &quot;available for sale&quot;
  because they may be sold for the purpose of obtaining future liquidity, for
  management of interest rate risk or as part of the implementation of tax management
  strategies.&nbsp; As of June 30, 2002, securities available for sale had an
  amortized cost of $1,436.4 million and an approximate fair value of $1,469.4
  million.<br>
  <br>
  </font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity</font></b><br>
<br>
  <font face="Courier">The objective of interest rate sensitivity management is
  to maintain an appropriate balance between the stable growth of income and the
  risks associated with maximizing income through interest sensitivity imbalances.&nbsp;
  While no single number can accurately describe the impact of changes in interest
  rates on net interest income, interest rate sensitivity positions, or &quot;gaps&quot;,
  when measured over a variety of time periods, may be helpful.<br>
  <br>
  An asset or liability is considered to be interest-sensitive if the rate it
  yields or bears is subject to change within a predetermined time period.&nbsp;
  If interest-sensitive assets (&quot;ISA&quot;) exceed interest-sensitive liabilities
  (&quot;ISL&quot;) during the prescribed time period, a positive gap results.&nbsp;
  Conversely, when ISL exceed ISA during a time period, a negative gap results.</font><br>
  <br></p>

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

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

<p align=center><font size=3
face=Courier>24</font></p>

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

<p align=center>&nbsp;</p>

<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>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font><font size=3
face=Courier>&nbsp;</font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity </font></b><font face="Courier">(Continued)</font><br>
  &nbsp;<br>
  <font face="Courier">The cumulative gap at the 365 day repricing period was
  negative in the amount of $604.3 million or 13.18% of earning assets as of June
  30, 2002.&nbsp; A positive gap tends to indicate that earnings will be impacted
  favorably if interest rates rise during the period and negatively when interest
  rates fall during the time period.&nbsp; A negative gap tends to indicate that
  earnings will be affected inversely to interest rate changes.&nbsp; In other
  words, as interest rates fall, a negative gap should tend to produce a positive
  effect on earnings, and when interest rates rise, a negative gap should tend
  to affect earnings negatively.</font><br>
<br>
  <font face="Courier">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.</font><br>
</p>

<p><font size=3 face=Courier> The following table lists the amounts and ratios
  of assets and liabilities with rates or yields subject to change within the
  periods indicated as of June 30, 2002 and December 31, 2001.<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=409 colspan=4 valign=top>
      <p align=center><u><font size=2
  face=Courier>June 30, 2002</font></u><font size=2><br>
        <br>
        </font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=center><font size=2
  face=Courier>0-90<br>
        <u>Days</u></font></p>
    </td>
    <td width=97 valign=top>
      <p align=center><font size=2
  face=Courier>91-180<br>
        <u>Days</u></font></p>
    </td>
    <td width=96 valign=top>
      <p align=center><font size=2
  face=Courier>181-365<br>
        <u>Days</u></font></p>
    </td>
    <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>Cumulative<br>
        <u>0-365 Days</u></font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=97 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=96 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=109 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Loans </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>$ 949,713&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>$161,538&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>$269,673&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align="right"><font size=2 face=Courier>$1,380,924&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Investments </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp; 201,903&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp; 80,439&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;236,231&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;518,573&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Other interest-earning assets </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;744&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 744&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=109 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>&nbsp; Total interest-sensitive assets</font></p>
    </td>
    <td width=107 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;1,152,360&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;241,977&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;505,904&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;1,900,241&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Certificates of deposit </font></p>
    </td>
    <td width=107 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;&nbsp; 344,654&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;230,196&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;356,282&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;931,132&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Other deposits</font></p>
    </td>
    <td width=107 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;1,165,687&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;1,165,687&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Borrowings</font></p>
    </td>
    <td width=107 valign=top>
      <p align="right"><font size=2 face=Courier>&nbsp;&nbsp; 305,214&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;101,125&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp; 1,341&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;407,680&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>&nbsp; Total interest-sensitive<br>
        &nbsp;&nbsp; liabilities</font></p>
    </td>
    <td width=107 valign=top>
      <p align=right> <font size=2 face=Courier>&nbsp;<br>
        1,815,555&nbsp;</font></p>
      </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;<br>
        </font><font size=2
  face=Courier>331,321&nbsp;</font></p>
      </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier><br>
        &nbsp;357,623&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier><br>
        &nbsp;2,504,499&nbsp;</font></p>
      </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>_________</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Gap </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>$ (663,195)</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>$( 89,344)</font></p>
    </td>
    <td width=96 valign=top>
      <p align="right"><font size=2 face=Courier>$ 148,281&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;$(604,258)</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;===========</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>==========</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>==========</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>==========</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>ISA/ISL </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.63&nbsp;</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 0.73&nbsp;</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.41&nbsp;</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.76&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=283 valign=top>
      <p><font size=2 face=Courier>Gap/Total Assets </font></p>
    </td>
    <td width=107 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 14.46%</font></p>
    </td>
    <td width=97 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.95%</font></p>
    </td>
    <td width=96 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 3.23%</font></p>
    </td>
    <td width=109 valign=top>
      <p align=right><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 13.18%</font></p>
    </td>
  </tr>
</table>

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

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

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

<p align=center><font size=3
face=Courier>25<br clear=all>
</font></p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=409 colspan=4 valign=top>
  <p align=center><u><font size=2
  face=Courier>December
  31, 2001</font></u><font size=2><br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>0-90<br>
  <u>Days</u></font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>91-180<br>
  <u>Days</u></font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>181-365<br>
  <u>Days</u></font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=97 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=96 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=109 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Loans</font></p>
  </td>
    <td width=107 valign=top>
      <p align="center"><font size=2 face=Courier>$&nbsp; 839,279&nbsp;</font></p>
  </td>
    <td width=97 valign=top>
      <p align="center"><font size=2 face=Courier>$ 155,276&nbsp;</font></p>
  </td>
    <td width=96 valign=top>
      <p align="center"><font size=2 face=Courier>$ 276,760&nbsp;</font></p>
  </td>
    <td width=109 valign=top>
      <p align="center"><font size=2 face=Courier>$1,271,315&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Investments</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 154,327</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 90,890</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;180,001</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;425,218</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 4,250</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp; 4,250</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive assets</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 997,856</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;246,166</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;456,761</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;&nbsp;1,700,783</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Certificates of deposit</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 329,825</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;284,518</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;407,188</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,021,531</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Other deposits </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>1,090,160</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>1,090,160</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Borrowings </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 430,189</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 350</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 750</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp; 431,289</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>&nbsp; Total
  interest-sensitive<br>&nbsp;&nbsp; Liabilities </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  1,850,174</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;284,868</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier><br>&nbsp;407,938</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  2,542,980</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>________</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>_________</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>$
  (852,318)</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>$
  (38,702)</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>$
  48,823</font></p>
  </td>
    <td width=109 valign=top>
      <p><font size=2 face=Courier>&nbsp;$ (842,197)</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;==========</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>========</font></p>
  </td>
  <td width=109 valign=top>
  <p align=center><font size=2
  face=Courier>==========</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>ISA/ISL</font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.54</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 0.86</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp; 1.12</font></p>
  </td>
  <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;0.67</font></p>
  </td>
 </tr>
 <tr>
  <td width=283 valign=top>
  <p><font size=2 face=Courier>Gap/Total Assets </font></p>
  </td>
  <td width=107 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 18.60%</font></p>
  </td>
  <td width=97 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 0.84%</font></p>
  </td>
  <td width=96 valign=top>
  <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.07%</font></p>
  </td>
  <td width=109 valign=top>
      <p align=center><font size=2
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;18.37%</font></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Although
the periodic gap analysis provides management with a method of measuring
current interest rate risk, it only measures rate sensitivity at a specific point
in time.&nbsp; Therefore, to more precisely
measure the impact of interest rate changes on the Corporation's net interest
income, management simulates the potential effects of changing interest rates
through computer modeling.&nbsp; The dynamic
simulation model used by the Corporation captures all assets, liabilities and
off-balance sheet financial instruments, accounting for significant variables
that are believed to be affected by interest rates.&nbsp; These variables include prepayment speeds on mortgage loans and
mortgage backed securities, cash flows from loans, deposits and investments and
balance sheet growth assumptions.&nbsp; The
model also captures embedded options, such as interest rate caps/floors or call
options, and accounts for changes in rate relationships as various rate indices
lead or lag changes in market rates.&nbsp;
The Corporation is then better able to implement strategies which would
include an acceleration of a deposit rate reduction or lag in a deposit rate
increase.&nbsp; The repricing strategies for
loans would be inversely related.<br>
<br>
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve month period.&nbsp; Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors.&nbsp;
Additional simulations are produced estimating the impact on net
interest income of a 300 basis point (3.00%) movement upward or downward from
the base case scenario.&nbsp; The Corporation's</font></p>

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

<p align=center><font size=3
face=Courier>26</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

<p><b><font size=3 face=Courier>Interest Sensitivity </font></b><font face="Courier">(continued)</font><font size=3 face=Courier>&nbsp;</font></p>

<p><font size=3 face=Courier>current asset/liability management policy indicates
  that a 300 basis point (3.00%) change in interest rates up or down cannot result
  in more than a 7.5% change in net interest income when compared to a base case,
  without Board approval and a strategy in place to reduce interest rate risk
  below the established maximum level.&nbsp; The analysis at June 30, 2002 indicated
  that a 300 basis point (3.00%) increase in interest rates would decrease net
  interest income 78 points (0.78%) below the base case scenario and a 300 basis
  point (3.00%) decline in interest rates would decrease net interest income by
  573 basis points (5.73%) below the base case scenario, over the next twelve
  months, both well within policy limits.&nbsp; Management believes the probability
  of a 300 basis point (3.00%) drop in interest rates is low.&nbsp; Additional
  simulation decreasing interest rates 100 basis points (1.00%) would result in
  an increase in net interest income of 41 basis points (0.41%), also well within
  policy limits.&nbsp; <br>
  <br>
  </font><font size=3 face=Courier>The Corporation's &quot;Asset/Liability Management
  Committee&quot; (&quot;ALCO&quot;) is responsible for the identification, assessment
  and management of interest rate risk exposure, liquidity, capital adequacy and
  investment portfolio position.&nbsp; The primary objective of the ALCO process
  is to ensure that the Corporation's balance sheet structure maintains prudent
  levels of risk within the context of currently known and forecasted economic
  conditions and to establish strategies which maximize the Corporation's net
  interest income based on the assumption of those risks.&nbsp; The ALCO attempts
  to mitigate interest rate risk through the use of strategies such as asset sales,
  asset and liability pricing and matched maturity funding.&nbsp; The ALCO strategies
  are established by the Corporation's senior management and are approved by the
  Corporation's board of directors.&nbsp; The ALCO continues to evaluate the use
  of derivative instruments to protect against the risk of adverse price or interest
  rate movements on the values of certain assets and liabilities, although none
  are being utilized currently.</font></p>

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

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

<p align=center><font size=3
face=Courier>27</font></p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=238 colspan=2 valign=top>
      <p align=center><u><font size=3
  face=Courier>At June 30,</font></u></p>
    </td>
  </tr>
  <tr height=16>
    <td width=497 height=16 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 height=16 valign=top>
      <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
    </td>
    <td width=127 height=16 valign=top>
      <p align=center><u><font size=3
  face=Courier>2001</font></u></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=238 colspan=2 valign=top>
      <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><u><font size=3 face=Courier>Nonperforming Loans</font></u>:</p>
    </td>
    <td width=110 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align="right">&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align="right">&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans on nonaccrual basis</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp; 25,705&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 8,937&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Past due loans</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 14,987&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp; 20,500&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Renegotiated loans</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 828&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 2,237&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; </font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>__________</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>__________</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp; Total Nonperforming Loans</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp; 41,520&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp; 31,674&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>==========</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>==========</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Other real estate owned</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1,468&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 1,786&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Loans outstanding at end of period</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$2,612,965&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$2,547,540&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Average loans outstanding (year-to-date)</font></p>
    </td>
    <td width=110 valign=top>
      <p align="right"><font size=3 face=Courier>$2,588,873&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$2,515,991&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Nonperforming loans as percent of total
        loans</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.59%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 1.24%</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Provision for credit losses</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 5,925&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align="right"><font size=3 face=Courier>&nbsp;$&nbsp;&nbsp;&nbsp; 4,964&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Net charge-offs</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 5,780&nbsp;</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;&nbsp; 4,680&nbsp;</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Net charge-offs as percent of average<br>
        &nbsp;&nbsp;&nbsp; loans outstanding</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 0.22%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 0.19%</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Provision for credit losses as percent
        <br>
        &nbsp;&nbsp;&nbsp; of net charge-offs</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp; 102.51%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier>&nbsp;<br>
        &nbsp;&nbsp; 106.07%</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent<br>
        &nbsp;&nbsp;&nbsp; of average loans outstanding</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 1.32%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 1.35%</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent
        <br>
        &nbsp;&nbsp;&nbsp; of end-of-period loans outstanding</font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 1.31%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp;&nbsp; 1.33%</font></p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p>&nbsp;</p>
    </td>
    <td width=110 valign=top>
      <p align=right>&nbsp;</p>
    </td>
    <td width=127 valign=top>
      <p align=right>&nbsp;</p>
    </td>
  </tr>
  <tr>
    <td width=497 valign=top>
      <p><font size=3 face=Courier>&nbsp; Allowance for credit losses as percent
        <br>
        &nbsp;&nbsp;&nbsp; of nonperforming loans </font></p>
    </td>
    <td width=110 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp;&nbsp; 82.62%</font></p>
    </td>
    <td width=127 valign=top>
      <p align=right><font size=3
  face=Courier><br>
        &nbsp;&nbsp; 106.98%</font></p>
    </td>
  </tr>
</table>

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

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

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

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

<p align=center><font size=3
face=Courier>28</font></p>

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

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

<p><font size=3 face=Courier>The following table identifies impaired loans, and
  information regarding the relationship of impaired loans to the reserve for
  credit losses at June 30, 2002 and June 30, 2001.</font><font size=3 face=Courier><br>
  <br>
  </font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center><u><font size=2
  face=Courier>2002</font></u></p>
  </td>
  <td width=103 valign=top>
  <p align=center><u><font size=2
  face=Courier>2001</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=2 valign=top>
  <p align=center><font size=2
  face=Courier>(amounts
  in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Recorded investment in impaired loans at end of
  period</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$26,533</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$11,174</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date average balance of impaired loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$25,078</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$12,052</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Allowance for credit losses related to impaired
  loans</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$ 5,382</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$ 1,669</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with an allocation of the allowance
  for <br>&nbsp; credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $15,312</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 3,661</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Impaired loans with no allocation of the allowance
  for<br>&nbsp; credit losses</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $11,221</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier><br>
  $ 7,513</font></p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=108 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=103 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=523 valign=top>
  <p><font size=2 face=Courier>Year to date income recorded on impaired loans on
  a cash basis</font></p>
  </td>
  <td width=108 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 188</font></p>
  </td>
  <td width=103 valign=top>
  <p align=center><font size=2
  face=Courier>$&nbsp;&nbsp; 233</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>Other than those described above, there are no material
  credits that management has serious doubts as to the borrower's ability to comply
  with the present loan repayment terms.&nbsp; Additionally, the portfolio is
  well diversified and as of June 30, 2002, there were no significant concentrations
  of credit.<br>
  <br>
  Nonperforming loans at June 30, 2002 increased $9.8 million compared to 2001
  levels as increases in nonaccrual loans were only partially offset by decreases
  in past due loans and renegotiated loans.&nbsp; Past due loans improved in comparison
  to both year-end 2001 and June 30, 2002. The jump in nonaccrual loans compared
  to year-ago levels resulted principally from the inclusion of two significant
  credits during the third quarter of 2001.&nbsp; The largest credit ($6.5 million)
  is not past due and carries an 80% guaranty of a U.S. government agency but
  is experiencing cash flow difficulties and has been placed in nonaccrual status.&nbsp;
  A resolution of this credit is expected during 2002.&nbsp; The second credit,
  which was $5.9 million at year-end 2001, continues to be resolved through liquidation
  of collateral and exercising other remedies.&nbsp; The balance outstanding at
  June 30, 2002,&nbsp; related to this credit was $4.4 million.&nbsp; The Corporation
  anticipates final resolution of this credit during 2002 without additional losses
  in excess of amounts currently reserved.&nbsp; Nonperforming loans at June 30,
  2002, were basically unchanged compared to December 31, 2001.&nbsp; Nonperforming
  loans as a percent of total loans was 1.59% at June 30, 2002, compared to 1.62%
  at December 31, 2001, and 1.24% at June 30, 2001, while the allowance for credit
  losses as a percent of nonperforming loans was 82.62%, 82.28% and 106.98%, respectively
  for the same periods.&nbsp; <br>
  &nbsp;<br>
  </font><font size=3 face=Courier>&nbsp;</font></p>

<p align=center><font size=3
face=Courier>29</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  &nbsp;FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

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

<p><font size=3 face=Courier>The Corporation's loan portfolio continues to be
  monitored by senior management to identify potential portfolio risks and detect
  potential credit deterioration in the early stages.&nbsp; Committees formed
  during 2001 for the purpose of reviewing watchlist credits for workout progress
  or deterioration and monitoring loan loss adequacy and the status of significant
  nonperforming credits continue to provide additional internal monitoring and
  analysis in addition to that provided by the credit committees of the banks
  and parent company.&nbsp; Credit risk is mitigated during the loan origination
  process through the use of sound underwriting policies and collateral requirements.&nbsp;
  Management also attempts to minimize loan losses by analyzing and modifying
  collection techniques on a periodic basis.</font></p>

<p><font size=3 face=Courier>The Corporation maintains an allowance for credit
  losses at a level deemed sufficient to absorb losses which are inherent in the
  loan and lease portfolios.&nbsp; Management and the Corporation's Board of Directors
  review the adequacy of the allowance on a quarterly basis to ensure that the
  provision for credit losses has been charged against earnings in an amount necessary
  to maintain the allowance at a level that is appropriate based on management's
  assessment of probable estimated losses.</font></p>

<p><font size=3 face=Courier>The Corporation's methodology for assessing the appropriateness
  of the allowance for credit losses consists of several key elements.&nbsp; These
  elements include a specific allowance for primary watch list classified loans,
  a formula allowance based on historical trends, an additional allowance for
  special circumstances and an unallocated allowance.&nbsp; The Corporation believes
  that the allowance for credit losses is adequate at this time.&nbsp; Uncertain
  economic conditions pose a risk to the banking industry but management believes
  that its risk management process serves as an early warning system so that appropriate
  responses will be implemented, as required. </font></p>

<p><u><font size=3 face=Courier> CAPITAL RESOURCES<br>
  <br>
  </font></u><font size=3 face=Courier>Shareholders' equity stood at $387.5 million
  at June 30, 2002, a $17.5 million or 4.7% rise compared to December 31, 2001.&nbsp;
  Dividends declared reduced equity by $17.6 million and $16.9 million for the
  first six months of 2002 and 2001, respectively.&nbsp; Payments by the Corporation's
  Employee Stock Ownership Plan (the &quot;ESOP&quot;) to reduce debt it incurred
  to acquire the Corporation's common stock for future distribution as employee
  compensation, net of fair value adjustments to ESOP shares, increased equity
  by $536 thousand.&nbsp; Amounts paid to fund the discount on reinvested dividends
  reduced equity by $316 thousand.&nbsp; The market value adjustment for available
  for sale securities net of security sales increased equity by $12.7 million
  for the period.&nbsp; Proceeds from the reissuance of treasury shares to provide
  for stock options exercised increased equity by $2.7 million during 2002.&nbsp;
  Equity capital was also impacted during 2002 by an increase of $812 thousand
  from the reissuance of treasury shares to fund an acquisition.<br>
  <br>
  <br>
  <br>
  </font></p>

<p>&nbsp;</p>

<p align=center><font size=3
face=Courier>30</font></p>
<p align=center><font size=3
face=Courier><br clear=all>
  FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES<br>
  </font><font size=3
face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
  </font><font size=3
face=Courier>AND RESULTS OF OPERATIONS</font></p>

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

<p><font size=3 face=Courier>A strong capital base provides the Corporation with
  a foundation to expand lending, to protect depositors and provide for growth
  while protecting against future uncertainties.&nbsp; The evaluation of capital
  adequacy depends on a variety of factors, including asset quality, liquidity,
  earnings history and prospects, internal controls and management ability.&nbsp;
  In consideration of these factors, management's primary emphasis with respect
  to the Corporation's capital position is to maintain an adequate and stable
  ratio of equity to assets.</font></p>

<p><font size=3 face=Courier> The Federal Reserve Board has issued risk-based
  capital adequacy guidelines which are designed principally as a measure of credit
  risk.&nbsp; These guidelines require:&nbsp; (1) at least 50% of a banking organization's
  total capital be common and other &quot;core&quot; equity capital (&quot;Tier
  I Capital&quot;); (2) assets and off-balance-sheet items be weighted according
  to risk; (3) the total capital to risk-weighted assets ratio be at least 8%;
  and (4) a minimum leverage ratio of Tier I capital to average total assets.&nbsp;
  The minimum leverage ratio is not specifically defined, but is generally expected
  to be 3-5 percent for all but the most highly rated banks, as determined by
  a regulatory rating system.<br>
  <br>
  The table below presents the Corporation's capital position at June 30, 2002:
  </font><font size=3 face=Courier>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;</font></p>
  <p align=center><font size=3
  face=Courier>Amount<br>
  (in thousands)</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>Percent<br>
  of Adjusted<br>
  Assets</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>$392,885</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;12.9%</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
    <td width=156 valign=top>
      <p align=center><font size=3
  face=Courier>&nbsp;&nbsp;121,941 </font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;4.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;427,187</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>14.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;243,882</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.0</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=156 valign=top>
  <p align=center>&nbsp;</p>
  </td>
  <td width=132 valign=top>
  <p align=center>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;392,885</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;8.6</font></p>
  </td>
 </tr>
 <tr>
  <td width=288 valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement </font></p>
  </td>
  <td width=156 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;136,573</font></p>
  </td>
  <td width=132 valign=top>
  <p align=center><font size=3
  face=Courier>&nbsp;3.0</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>For an institution to qualify as well capitalized
  under regulatory guidelines, Tier 1, Total and Leverage Capital ratios must
  be at least 6.0%, 10.0% and 5.0%, respectively.&nbsp; At June 30, 2002, the
  Corporation's banking subsidiaries exceeded those requirements. </font></p>

<p><font size=3 face=Courier>ITEM 3.&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK</font></p>

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

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

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

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

<p align=center><font size=3
face=Courier>31</font></p>

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

<p><font size=3 face=Courier>ITEM 1.&nbsp;&nbsp; LEGAL PROCEEDINGS<br>
  <br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; There were no material legal
  proceedings to which the Corporation<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or its subsidiaries are a
  party, or of which any of their<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; property is the subject, except
  proceedings which arise in the<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;normal course of business
  and, in the opinion of management, will<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; not have a material adverse
  effect on the consolidated operations<br>
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; or financial position of the
  Corporation and its subsidiaries.<br>
  &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></p>

<p><font size=3 face=Courier>ITEM 2.&nbsp;&nbsp;&nbsp;CHANGES IN SECURITIES</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
  applicable</font></p>

<p><font size=3 face=Courier>ITEM 3.&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES</font></p>

<p><font size=3 face=Courier>&nbsp;</font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 4.&nbsp;&nbsp;&nbsp;SUBMISSION OF MATTERS TO
  A VOTE OF SECURITY HOLDERS</font></p>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="3" face="Courier">On
  April 22, 2002, the Corporation held its regularly scheduled <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; annual meeting of shareholders.&nbsp;
  The following proposal was <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;considered and acted
  upon:</font></p>

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

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=3 face=Courier>The
  following directors were elected for terms to expire in 2005:</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp; Votes &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;Votes<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp; For&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Withheld</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ray
  T. Charley&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46,767,974&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 479,399<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Edward
  T. Cote&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46,658,005&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; 589,368<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Johnston
  A. Glass&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;46,773,276&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;474,097<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dale
  P. Latimer&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 46,725,211&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;522,162<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joseph
  E. O'Dell&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;46,766,170&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;481,203<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David
  R. Tomb Jr.&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;46,696,466&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;550,907</font></p>

<p><font size=3 face=Courier>ITEM 5.&nbsp;&nbsp;&nbsp;OTHER INFORMATION</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Not applicable</font></p>

<p><font size=3 face=Courier>ITEM 6.&nbsp;&nbsp; EXHIBITS AND REPORTS ON FORM
  8-K</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  (a)&nbsp;&nbsp;&nbsp;&nbsp; Exhibits<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size=3 face=Courier>Exhibits
  99.1 and 99.2 Certification pursuant to 18 U.S.C. <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Section 1350 as adopted pursuant to Section 906 of the <br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  Sarbanes-Oxley Act of 2002</font></p>

<p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  (b)&nbsp;&nbsp;&nbsp;&nbsp; Reports on Form 8-K<br>
  &nbsp; </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp; None<br>
  <br>
  </font></p>

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

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

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

<p><font size=3 face=Courier><br>
  DATED:&nbsp; AUGUST 13, 2002&nbsp;&nbsp;&nbsp;&nbsp; /S/Joseph E. O'Dell<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  ____________________________________<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Joseph E. O'Dell, President and<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  Chief Executive Officer</font></p>

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

<p><font size=3 face=Courier>DATED:&nbsp; AUGUST 13, 2002&nbsp;&nbsp;&nbsp;&nbsp;
  /S/John J. Dolan<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  _____________________________________<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  John J. Dolan, Executive Vice<br>
  </font><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
  President and Chief Financial Officer</font></p>

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

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

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

<p align=center><font size=3
face=Courier>33</font></p>

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

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

<p align=center>&nbsp;</p>

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



</body>

</html>
[{"type": "10-Q", "sequence": "1", "filename": "tenq202.htm", "description": "JUNE 2002 10Q", "secsgml_size_bytes": 295228}]
{"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": "02734942"}, "business-address": {"street1": "OLD COURTHOUSE SQUARE", "street2": "22 N SIXTH ST", "city": "INDIANA", "state": "PA", "zip": "15701", "phone": "7243497220"}, "mail-address": {"street1": "22 NORTH SIXTH STREET", "street2": "P.O. BOX 400", "city": "INDIANA", "state": "PA", "zip": "15701"}}
Common
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13
  OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number
0-11242
First Commonwealth Financial Corporation
(Exact name of registrant as specified
  in its charter)
Pennsylvania              
                       
       25-1428528
(State or other jurisdiction of     
            (I.R.S. Employer
incorporation or organization)       
           Identification No.)
22 North Sixth Street                          Indiana,
PA  15701
(Address of principal executive offices)                        (Zip Code)
724-349-7220
(Registrant's telephone
number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate
a check mark whether the registrant(1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
August 12, 2002 was 58,835,161.
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1
.     FINANCIAL STATEMENTS
Included in Part I of this
  report:              
            PAGE
First Commonwealth Financial
  Corporation and
Subsidiaries Consolidated Balance Sheets . . .     3
Consolidated Statements of Income. . . . . . .     4
Consolidated Statements of Changes in
Shareholders' Equity. . . . . . . . . . .   
   5
Consolidated Statements of Cash Flows. . . . .     6
Notes to Consolidated Financial Statements . .     7
ITEM 2
.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
  . . . . . . . .     11
ITEM 3
.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
MARKET RISK . . . . . . .
  . . . . . . . . . . . . .     31
PART II - OTHER INFORMATION
Other Information . . . . . . . . . . . . . . . . . . . . . .     32
Exhibits and Reports on Form 8K . . . . . . . . .
  . . . . . .     32
Signatures. . . . . . . . . . . . . . . . . . . . . . . . . .   
   33
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
June 30,
2002
December 31,
2001
ASSETS
Cash and due from banks on demand .
        . . . . . . . . . . . . .
$   83,759
$   98,130
Interest-bearing deposits with banks.
        . . . . . . . . . . . .
744
4,250
Securities available for sale, at market.
        . . . . . . . . . .
1,469,400
1,469,118
Securities held to maturity, at cost,
(Market value $272,068 in 2002
and $298,643 in 2001) . . . . . . . . . . . . . . .
        . . . .
264,566
293,290
Loans . . . . . . . . . . . . . . .
        . . . . . . . . . . . . .
2,613,962
2,569,231
Unearned income . . . .
        . . . . . . . . . . . . . . . . . .
(997)
(1,297)
Allowance for credit losses
        . . . . . . . . . . . . . . . .
(34,302)
(34,157)
__________
___________
Net loans .
        . . . . . . . . . . . . . . . . . . . . . . .
2,578,663
2,533,777
Property and equipment. . . . . . .
        . . . . . . . . . . . . .
46,071
46,418
Other real estate owned . . . . . .
        . . . . . . . . . . . . .
1,468
1,619
Goodwill. . . . . . . . . . . . . .
        . . . . . . . . . . . . .
8,134
6,539
Amortizing intangibles. . . . . . .
        . . . . . . . . . . . . .
44
232
Other assets .. . . . . . . . . . .
        . . . . . . . . . . . . .
132,123
130,157
__________
_________
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . .
$4,584,972
$4,583,530
==========
==========
LIABILITIES
Deposits (all domestic):
Noninterest bearing . .
        . . . . . . . . . . . . . . . . . .
$  394,071
$  412,695
Interest bearing. . . .
        . . . . . . . . . . . . . . . . . .
2,789,563
2,680,455
__________
__________
Total deposits.
        . . . . . . . . . . . . . . . . . . . . .
3,183,634
3,093,150
Short-term borrowings . . . . . . .
        . . . . . . . . . . . . .
305,647
427,736
Other liabilities . . . . . . . . .
        . . . . . . . . . . . . .
26,958
28,358
Company obligated mandatorily redeemable
        capital
securities of subsidiary trust. . . . . . . . . . .
        . . . .
35,000
35,000
Other long-term debt. . . . . . . .
        . . . . . . . . . . . . .
646,215
629,220
__________
__________
Total long-term
        debt. . . . . . . . . . . . . . . . . . .
681,215
664,220
__________
__________
Total liabilities
        . . . . . . . . . . . . . . . . . . . .
4,197,454
4,213,464
SHAREHOLDERS' EQUITY
Preferred stock, $1 par value per share,
3,000,000 shares authorized, none issued . . . . .
        . . . .
-0-
-0-
Common stock, $1 par value per share,
100,000,000 shares authorized, 62,525,412
shares issued; 58,779,955 and 58,451,624
shares outstanding at June 30, 2002 and
December 31, 2001 respectively. . . . . . . . . . .
        . . . .
62,525
62,525
Additional paid-in capital. . . . .
        . . . . . . . . . . . . .
65,253
66,176
Retained earnings . . . . . . . . .
        . . . . . . . . . . . . .
289,202
288,219
Accumulated other comprehensive income.
        . . . . . . . . . . .
21,414
8,703
Treasury stock (3,745,457 shares at
        June 30, 2002 and
4,073,788 at December 31, 2001, at cost). . . . . .
        . . . .
(47,286)
(51,431)
Unearned ESOP shares. . . . . . . .
        . . . . . . . . . . . . .
(3,590)
(4,126)
__________
__________
Total shareholders'
        equity. . . . . . . . . . . . . . . .
387,518
370,066
__________
__________
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY. . . . . . .
$4,584,972
$4,583,530
==========
==========
The accompanying notes are an integral part of these consolidated
  financial statements.
3
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Dollars in thousands, except per share data)
For the Quarter
Ended June 30,
For the 6 Months
Ended June 30,
__ 2002__
__ 2001__
__2002__
2001_
Interest Income
Interest and fees on loans . . . . .
        . . . .
$ 45,220
$  50,755
$ 90,547
$ 102,977
Interest and dividends on investments:
Taxable interest . . . .
        . . . . . . . . .
21,791
23,443
44,029
46,774
Interest exempt from Federal
        income taxes.
2,417
2,374
4,809
4,745
Dividends. . . . . . . .
        . . . . . . . . .
441
575
993
1,429
Interest on Federal funds sold . . .
        . . . .
1
206
4
488
Interest on bank deposits. . . . . .
        . . . .
8
18
19
38
_______
_______
________
________
Total interest
        income. . . . . . . . . .
69,878
77,371
140,401
156,451
Interest Expense
Interest on deposits . . . . . . . .
        . . . .
20,782
31,243
42,103
63,300
Interest on short-term borrowings. .
        . . . .
1,502
2,709
3,267
6,233
Interest on company obligated mandatorily
redeemable
capital
        securities of
subsidiary trust . . . . . . .
832
832
1,663
1,663
Interest on other long-term debt . .
        . . . .
8,829
8,629
17,393
17,065
______
______
______
______
Total interest
        on long-term debt . . . .
9,661
9,461
19,056
18,728
______
______
______
______
Total interest
        expense . . . . . . . . .
31,945
43,413
64,426
88,261
______
______
______
______
Net Interest Income
37,933
33,958
75,975
68,190
Provision for credit losses. .
        . . . . . . .
3,008
2,557
5,925
4,964
Net interest income after provision for
        credit losses . . . . . . . . . . . . . .
______
34,925
______
31,401
______
70,050
______
63,226
Other Income
Securities gains . . . . . . . . . .
        . . . .
576
1,790
615
1,995
Trust income . . . . . . . . . . . .
        . . . .
1,342
1,256
2,555
2,550
Service charges on deposit accounts.
        . . . .
2,746
2,707
5,439
5,288
Insurance commissions. . . . . . . .
        . . . .
951
633
1,807
1,288
Income from bank owned life insurance.
        . . .
1,173
1,111
2,242
2,060
Other income . . . . . . . . . . . .
        . . . .
3,149
2,876
5,668
6,459
______
_______
_______
_______
Total other
        income . . . . . . . . . . .
9,937
10,373
18,326
19,640
Other Expenses
Salaries and employee benefits . . .
        . . . .
14,767
13,401
29,410
27,070
Net occupancy expense  . . . .
        . . . . . . .
1,613
1,623
3,299
3,400
Furniture and equipment expense. . .
        . . . .
2,568
2,254
4,966
4,380
Data processing expense. . . . . . .
        . . . .
484
821
926
1,588
Pennsylvania shares tax expense. . .
        . . . .
996
970
1,991
1,911
Goodwill amortization. . . . . . . .
        . . . .
0
231
0
461
Intangible amortization. . . . . . .
        . . . .
68
123
188
246
Litigation settlement. . . . . . . .
        . . . .
0
0
8,000
0
Restructuring charges. . . . . . . .
        . . . .
3,116
0
3,116
0
Other operating expenses . . . . . .
        . . . .
8,003
6,580
15,162
12,403
_______
_______
_______
_______
Total other
        expenses . . . . . . . . . .
31,615
26,003
67,058
51,459
_______
_______
_______
_______
Income before income taxes
.
.
.
.
.
.
.
13,247
15,771
21,318
31,407
Applicable income taxes . . . . . .
        . . . . .
2,290
3,737
2,723
7,350
________
________
________
________
Net income
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$ 10,957
$ 12,034
$ 18,595
$ 24,057
=======
======
=======
========
Average Shares Outstanding  . . . . .
        . . . . .
58,359,322
57,799,443
58,251,440
57,760,915
Average Shares Outstanding Assuming Dilution
        .
58,851,264
58,035,585
58,669,047
57,919,444
Per Share Data:
Basic earnings per share. . . . . .
        . . . . .
$ 0.190
$ 0.210
$  0.320
$ 0.420
Diluted earnings per share. . . . .
        . . . . .
$ 0.190
$ 0.210
$  0.320
$ 0.420
Cash dividends per share. . . . . .
        . . . . .
$ 0.150
$ 0.145
$  0.300
$ 0.290
The accompanying notes are an integral part of these
consolidated financial statements.
4
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS'
  EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
______
Additional
Paid-In
Capital
_________
Retained
Earnings
________
Accumulated
Other
Comprehensive
Income
_____________
Treasury
Stock
________
Unearned
ESOP
Shares
______
Total
Shareholders'
Equity
_____________
Balance at
  December 31, 2000. . .
$62,525
$67,223
$272,169
$(7,808)
$(54,666)
$(5,287)
$334,156
Comprehensive income
Net
  income. . . . . . . . . .
-0-
-0-
24,057
-0-
-0-
-0-
24,057
Other
  comprehensive income,
net of tax:
Unrealized holding gains on
securities arising during
the period. . . . . . . . .
-0-
-0-
-0-
10,765
-0-
-0-
10,765
Less:  reclassification
adjustment for gains on
securities included in net
income. . . . . . . . . . .
-0-
_______
-0-
_______
-0-
________
(1,268)
_______
-0-
________
-0-
________
(1,268)
_________
Total
  other comprehensive
income. . . . . . . . . . . .
-0-
_______
-0-
_______
-0-
________
9,497
_______
-0-
________
-0-
________
9,497
_________
Total
  comprehensive income. . .
-0-
-0-
24,057
9,497
-0-
-0-
33,554
Cash
  dividends declared. . . . .
-0-
-0-
(16,897)
-0-
-0-
-0-
(16,897)
Decrease
  in unearned ESOP shares
-0-
-0-
-0-
-0-
-0-
625
625
Discount
  on dividend
reinvestment plan purchases. .
-0-
(306)
-0-
-0-
-0-
-0-
(306)
Treasury
  stock reissued. . . . .
-0-
(371)
-0-
-0-
1,425
-0-
1,054
_______
_______
________
______
_________
________
________
Balance at
  June 30, 2001. . .
$62,525
=======
$66,546
=======
$279,329
========
$1,689
======
$(53,241)
=========
$(4,662)
========
$352,186
========
Balance at
  December 31, 2001 . .
$62,525
$66,176
$288,219
$8,703
$(51,431)
$(4,126)
$370,066
Comprehensive income
Net
  income. . . . . . . . . .
-0-
-0-
18,595
-0-
-0-
-0-
18,595
Other
  comprehensive income,
net of tax:
Unrealized holding gains on
securities arising during
the period. . . .
-0-
-0-
-0-
13,108
-0-
-0-
13,108
Less:  reclassification
adjustment for gains on
securities included in net
income. . . . . . . . . . .
-0-
_______
-0-
_______
-0-
________
(397)
________
-0-
________
-0-
________
(397)
_________
Total
  other comprehensive
income. . . . . . . . . . . .
-0-
_______
-0-
_______
-0-
________
12,711
_______
-0-
________
-0-
________
12,711
_________
Total
  comprehensive income. . .
-0-
-0-
18,595
12,711
-0-
-0-
31,306
Cash
  dividends declared. . . . .
-0-
-0-
(17,612)
-0-
-0-
-0-
(17,612)
Decrease
  in unearned ESOP shares
-0-
-0-
-0-
-0-
-0-
536
536
Discount
  on dividend
reinvestment plan purchases. .
-0-
(316)
0-
-0-
-0-
-0-
(316)
Treasury
  stock reissued. . . . .
-0-
(607)
-0-
-0-
4,145
-0-
3,538
______
______
________
______
_________
________
________
Balance at
  June 30, 2002. . .
$62,525
=======
$65,253
=======
$289,202
========
$21,414
=======
$(47,286)
=========
$(3,590)
========
$387,518
========
The accompanying notes are an integral part
of these consolidated financial statements.
5
FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS
  OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
For the Six Months
Ended June 30,
2002
2001
Operating Activities
Net income. . . . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . .
$  18,595
$  24,057
Adjustments to reconcile net income
        to net
cash provided (used) by operating activities:
Provision for credit
        losses. . . . . . . . . . . . . . . . . . . . . . . .
5,925
4,964
Depreciation and amortization.
        . . . . . . . . . . . . . . . . . . . . . .
3,759
3,783
Net gains on sales
        of assets. . . . . . . . . . . . . . . . . . .
(663)
(2,942)
Income from increase
        in cash surrender value of bank owned life insurance.
(2,242)
(2,060)
Decrease in interest
        receivable. . . . . . . . . . . . . . . . . . . . . .
654
1,434
Decrease in interest
        payable . . . . . . . . . . . . . . . . . . . . . . .
(2,066)
(16,858)
Decrease in income
        taxes payable . . . . . . . . . . . . . . . . . . . . .
(1,869)
(184)
Change in deferred
        taxes . . . . . . . . . . . . . . . . . . . . . . . . .
(663)
(148)
Other-net. . . . .
        . . . . . . . . . . . . . . . . . . . . . . . . . . . .
728
(3,011)
_______
_______
Net cash provided
        by operating activities. . . . . . . . . . . . .
22,158
9,035
Investing Activities
Transactions with securities held to
        maturity:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .
-0-
-0-
Proceeds from maturities and redemptions
        . . . . . . . . . . . . . . . . . .
43,977
87,957
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .
(15,241)
-0-
Transactions with securities available
        for sale:
Proceeds from sales. . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .
10,237
71,431
Proceeds from maturities and redemptions
        . . . . . . . . . . . . . . . . . .
215,851
199,943
Purchases. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . . . .
(206,211)
(444,379)
Proceeds from sales of loans and other
        assets . . . . . . . . . . . . . . . .
48,401
46,679
Acquisition of affiliate, net of cash
        received. . . . . . . . . . . . . . . .
(4)
-0-
Investment in bank owned life insurance
        . . . . . . . . . . . . . . . . . . .
(5,000)
(15,000)
Net decrease (increase) in time deposits
        with banks . . . . . . . . . . . . .
3,506
(72)
Net increase in loans . . . . . . .
        . . . . . . . . . . . . . . . . . . . . .
(99,506)
(108,246)
Purchases of premises and equipment
        . . . . . . . . . . . . . . . . . . . . .
(3,300)
(3,245)
_________
_________
Net cash used by investing
        activities. . . . . . . . . . . . . .
(7,290)
(164,932)
Financing Activities
Repayments of other long-term debt.
        . . . . . . . . . . . . . . . . . . . . .
(681)
(376)
Proceeds from issuance of other long-term
        debt. . . . . . . . . . . . . . . .
18,200
9,500
Discount on dividend reinvestment plan
        purchases. . . . . . . . . . . . . . .
(316)
(306)
Dividends paid. . . . . . . . . . .
        . . . . . . . . . . . . . . . . . . . . .
(17,564)
(16,882)
Net decrease in Federal funds purchased
        . . . . . . . . . . . . . . . . . . .
(81,900)
(3,900)
Net increase (decrease) in other short-term
        borrowings. . . . . . . . . . . .
(40,188)
3,760
Sale of branch and deposits, net of
        cash received . . . . . . . . . . . . . .
-0-
(9,591)
Net increase in deposits. . . . . .
        . . . . . . . . . . . . . . . . . . . . .
90,484
160,852
Proceeds from sale of treasury stock.
        . . . . . . . . . . . . . . . . . . . .
2,726
1,054
_________
________
Net cash provided (used)
        by financing activities. . . . . . . . . . . . . .
(29,239)
144,111
_________
________
Net decrease in cash and
        cash equivalents. . . . . . . . . . . .
(14,371)
(11,786)
Cash and cash equivalents at January
        1. . . . . . . . . . . . . . . . . . . .
98,130
101,848
_________
________
Cash and cash equivalents at June 30.
        . . . . . . . . . . . . . . . . . . .
$  83,759
$  90,062
=========
========
The accompanying notes are integral part of these
consolidated financial statements.
6
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002
(Unaudited)
NOTE 1     Management Representation
The consolidated financial statements include the accounts of the Corporation
and its subsidiaries.  All significant
intercompany transactions and balances have been eliminated.  Certain prior period amounts have been
reclassified to conform with the current period presentation.  The accounting and reporting policies of
First Commonwealth conform with accounting principles generally accepted in the
United States of America.  The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates, assumptions and
judgments that affect the amounts reported in the financial statements and
accompanying notes. Actual realized amounts could differ from those
estimates.  In the opinion of
management, the unaudited interim consolidated financial statements include all
adjustments (consisting of only normal recurring adjustments) necessary for a
fair statement of financial position as of June 30, 2002, and the results of
operations for the three month and six month periods ended June 30, 2002 and
2001, and statements of cash flows and changes in shareholders' equity for the
six month periods ended June 30, 2002 and 2001.  The results of operations for the interim periods are not
necessarily indicative of the results that may be expected for the full year or
any other interim period.  These interim
financial statements should be read in conjunction with the Corporation's 2001
Annual Report on Form 10-K.
NOTE 2     Cash Flow Disclosures
(dollar amounts in thousands)
2002
2001
Cash
  paid during the first six months of the year for:
Interest
$ 66,491
$105,119
Income
  Taxes
$ 
  5,260
$  7,650
Noncash
  investing and financing activities:
ESOP loan reductions
$   
  536
$    625
Loans transferred to other real estate
  owned and
repossessed assets
$ 
  3,599
$  2,777
Gross increase in market value adjustment
        to
securities available
        for sale
$ 19,556
$ 14,611
Treasury stock reissued for acquisition
$   
  812
$    -0-
7
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002
(Unaudited)
NOTE 3     Comprehensive Income Disclosures
The following table identifies the related tax
  effects allocated to each component of other comprehensive income in the Statements
  of Changes in Shareholders' Equity: (dollar amounts in thousands)
June 30,
  2002
June 30,
  2001
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising
during the period . . . . . . . .
  . . . .
$20,166
$(7,058)
$13,108
$16,561
$(5,796)
$10,765
Less:
  reclassification adjustment for gains
realized in net income. . . . . .
  . . . .
(610)
213
(397)
(1,950)
682
(1,268)
_______
______
_______
_______
_______
_______
Net
  unrealized gains (losses) . . . . . . .
19,556
(6,845)
12,711
14,611
(5,114)
9,497
_______
______
_______
_______
_______
_______
Other comprehensive income. . . . . . . . . .
$19,556
$(6,845)
$12,711
$14,611
$(5,114)
$ 9,497
=======
======
========
========
=======
========
NOTE 4     Business Combination
Effective March 1, 2002, the Corporation acquired all of
  the outstanding shares of Strategic Capital Concepts, Inc. ("SCC")
  and Strategic Financial Advisors, Inc. ("SFA"), each a Pennsylvania
  corporation headquartered in Allison Park, Pennsylvania.  As a registered
  investment adviser, Strategic Capital Concepts provides financial planning,
  asset management and consulting services to individuals, businesses, retirement
  plans, trusts and estates.  Strategic Financial Advisors offers investment
  and insurance products as well as employee benefit services.  Each of the
  outstanding shares of Strategic Capital Concepts, Inc. and Strategic Financial
  Advisors, Inc. were exchanged for shares of the Corporation's common stock. 
  In addition, the shareholders of SCC and SFA are entitled to receive additional
  shares of the Corporation's common stock for each of the years 2002 through
  2005 based on a formula defined in the merger agreement which takes into consideration
  the financial performance of SCC and SFA after the merger date.  The merger
  was accounted for as a purchase transaction whereby the identifiable tangible
  and intangible assets and liabilities of SCC and SFA have been recorded at their
  fair values at the acquisition date.  Goodwill in the amount of $1.6 million
  was recorded as a result of the transaction.  As prescribed under the purchase
  method of accounting, the results of operations of SCC and SFA from the date
  of acquisition are included in the Corporation's financial statements for 2002. 
  This acquisition should expand the Corporation's product offerings and positively
  impact fee based revenue, which is a continuing priority.
8
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002
(Unaudited)
NOTE 5     Goodwill and Other
  Intangible Assets
On January 1, 2002, the Corporation adopted FASB Statement
  No. 142, "Goodwill and Other Intangible Assets" ("FAS No. 142"),
  which addresses the accounting and reporting for acquired goodwill and other
  intangible assets which supersedes APB Opinion No. 17, "Intangible Assets".
  FAS No. 142 includes requirements to test goodwill and indefinite-lived intangible
  assets for impairment rather than amortize them.  As of January 1, 2002,
  the Corporation had goodwill, net of accumulated amortization, of approximately
  $5.8 million subject to the transitional testing provisions of FAS No. 142. 
  Also, management reclassified an intangible asset previously recorded by an
  insurance subsidiary when acquiring the expiring list of policy holders from
  their joint-venture partner to goodwill with a net carrying amount of $718 thousand.
As of January 1, 2002, the Corporation discontinued
  the amortization of goodwill which is expected to reduce other operating expense
  by $922 thousand in 2002.  Goodwill amortization expense was $231 thousand
  and $461 thousand for the second quarter and first six months of 2001 respectively. 
  Goodwill represented basic and diluted earnings per share of $0.004 and $0.008
  for the three and six month periods ending June 30, 2001.  Upon implementation
  of the standard, the Corporation determined no impairment existed on its outstanding
  goodwill.
NOTE 6     New Accounting
  Pronouncements
In
July 2001, the Financial Accounting Standards Board ("FASB") issued
statement No. 141, "Business Combinations" ("FAS No. 141")
which supersedes APB Opinion No. 16 "Business Combinations" but
carries forward the guidance in Opinion No. 16 related to the application of
the purchase method of accounting.  FAS
No. 141 requires the purchase method of accounting for business combinations
initiated after June 30, 2001 and eliminates the pooling-of-interest method.  FAS No. 141 also specifies the types of
acquired intangible assets that are required to be recognized and reported
separately from goodwill.  Intangible
assets are recognized as assets apart from goodwill if the asset arises from
contractual or other legal rights or the asset is capable of being separated
from the acquired entity and sold or exchanged.  In addition to the disclosure requirements in Opinion No. 16, FAS
No. 141 requires disclosure of the primary reasons for the business combination
and the allocation of the purchase price paid to the assets acquired and
liabilities assumed by major balance sheet caption.  Implementation of FAS No. 141 did not have a material impact on
the Corporation's financial condition or results of operations.
Effective January 1, 2002, the Corporation adopted
  FASB Statement No. 144, "Accounting for the Impairment or Disposal of Long-Lived
  Assets" ("FAS No. 144") which requires that long-lived assets
  be reviewed for impairment whenever events or changes in circumstances, such
  as a significant decrease in the market value of an asset or the extent or manner
  in which an asset is used indicate that the carrying amount of an asset may
  not be recoverable.  If there is an indication that the carrying amount
  of an asset may not be recoverable, future undiscounted cash flows expected
  to
9
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2002
(Unaudited)
NOTE 6     New Accounting
  Pronouncements (continued)
result from the use and disposition of the asset are estimated. 
  If the sum of the expected cash flows is less than the carrying value of the
  asset a
loss is recognized for the
difference between the carrying value and the market value of the asset.  This statement also requires measurement of
long-lived assets classified as held for sale at the lower of their carrying
amount or fair value less cost to sell and to cease depreciation or
amortization on these assets. 
Implementation of FAS No. 144 did not have a material impact on the
Corporation's financial condition or results of operations.
In April 2002, the FASB issued Statement No. 145,
  "Rescission of FASB Statements No. 4, 44, and 64, Amendment of FASB Statement
  No. 13, and Technical Corrections" ("FAS No. 145").  FAS
  No. 145 rescinds Statement 4, which required all gains and losses from extinguishment
  of debt to be aggregated and, if material, classified as an extraordinary item,
  net of related income tax effect.  As a result, the criteria in Opinion
  30 will now be used to classify those gains and losses.  This statement
  also amends FASB Statement No. 13 to require that certain lease modifications
  that have economic effects similar to sale-leaseback transactions be accounted
  for in the same manner as sale-leaseback transactions.  This statement
  also makes technical corrections to existing pronouncements, which are not substantive
  but in some cases may change accounting practice.  Implementation of FAS
  No. 145 is not expected to have a material impact on the Corporation's financial
  condition or results of operations.
In July 2002, the FASB issued Statement No. 146,
  "Accounting for Costs Associated with Exit or Disposal Activities"
  ("FAS NO. 146").  FAS No. 146 replaces EITF Issue No. 94-3, "Liability
  Recognition for Certain Employee Termination Benefits and Other Costs to Exit
  an Activity (including Certain Costs Incurred in a Restructuring)". 
  The standard requires companies to recognize costs associated with exit or disposal
  activities when they are incurred rather than at the date of a commitment to
  an exit or disposal plan.  Statement 146 is to be applied prospectively
  to exit or disposal activities initiated after December 31, 2002.
Had this statement been in effect, the $3.1 million
  of restructuring costs recognized by the Corporation in the second quarter of
  2002 would have been recognized in the third quarter of 2002.  Upon adoption,
  FAS No. 146 is not expected to have a material impact on the Corporation's financial
  condition or results of operations.
10
ITEM 2. FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED
  SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS
First Six Months of 2002 as Compared to the
First Six Months of 2001
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation (the
"Corporation") including its subsidiaries.  In addition to historical information, this discussion and
analysis contains forward-looking statements. 
The forward-looking statements contained herein are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected in the forward-looking statements.  Important factors that might cause such a
difference include, but are not limited to, those discussed in this
"Management's Discussion and Analysis of Financial Condition and Results
of Operations."  Readers are
cautioned not to place undue reliance on these forward-looking statements,
which reflect management's analysis only as of the date hereof.  The Corporation undertakes no obligation to
publicly revise or update these forward-looking statements to reflect events or
circumstances that arise after the date hereof.
Net income for the first half of 2002 was $18.6 million which reflected a
decrease of $5.5 million compared to 2001 results of $24.1 million.  Basic and diluted earnings per share were
$0.32 for the first six months of 2002 compared to $0.42 for the first six
months of 2001.  The 2002 period
included $3.1 million ($2.0 million after-tax) of nonrecurring restructuring
charges associated with the merger of the charters of the Corporation's two
commercial banks (First Commonwealth Bank and Southwest Bank) and the adoption
of a new common brand and identity for all financial services
subsidiaries.  These restructuring
charges included $2.8 million related to separation pay for those employees
whose positions will be eliminated or chose not to relocate as a result of the
upcoming merger of the two subsidiary banks. The savings from this
consolidation are expected to be approximately $2.0 million for both 2003 and
2004.  Additional separation costs could
be recorded during the third quarter of 2002 as processes and staffing levels
are re-evaluated during continued integration of banking operations.  Additional restructuring charges anticipated
in the third quarter will also create future cost reductions as various boards
and committees are consolidated and reduced in size in order to provide more
effective and efficient corporate governance. 
While the financial impact of these additional costs for 2002 are not
immediately determinable the effect on future years is expected to be positive
and will be quantified during the third quarter.  The second half of 2002 will also include additional charges
related to the design and implementation of the new common brand and identity.  Net income for the first half of 2002 was
negatively impacted by the $8.0 million litigation settlement ($5.2 million,
net of tax effect) recorded in the first quarter.  This settlement related to a lender liability action filed in
1994 against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.  Management believes that liability insurance
will cover a portion of the settlement, but the precise amount of insurance
coverage has not yet been determined.
11
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
Core
net income (excluding securities transactions, gains on asset sales and
nonrecurring charges) was $25.4 million for the six months of 2002,
representing an increase of 15.0% compared to $22.1 million for 2001.  Gains on the sale of assets includes securities
gains of $615 thousand and $2.0 million in 2002 and 2001, respectively, as well
as a $989 thousand gain on the sale of a branch and a block of mortgages in
2001.  Diluted earnings per share for
core earnings was $0.43 for the six months of 2002 compared to diluted earnings
per share of $0.38 for the six months of 2001. 
Return on average assets was 0.82% and return on average equity was
9.77% during the 2002 period, compared to 1.09% and 13.91%, respectively during
the same period of 2001.  Return on
average assets and return on average equity based on core earnings were 1.13%
and 13.36%, respectively for the first half of 2002 compared to 1.00% and
12.79%, respectively for the first half of 2001.
For the Six Months
Ended June 30,
2002
2001
Reconciliation of Core Earnings
Net
  income as reported
$18,595
$24,057
Non-core
  items (net of tax):
Gains on sale of securities
and other assets
(400)
(1,940)
Restructuring charges
2,025
-0-
Litigation settlement
5,200
-0-
_______
_______
Core
  net income
$25,420
$22,117
=======
=======
Core
  basic earnings per share
$0.44
$0.38
Core
  diluted earnings per share
$0.43
$0.38
Core
  return on average assets
1.13%
1.00%
Core
  return on average equity
13.36%
12.79%
12
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
(continued)
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 was $76.0
  million for the first six months of 2002 compared to $68.2 million for the same
  period of 2001.  Net interest margin (net interest income, on a tax-equivalent
  basis, as a percentage of average earning assets) was 3.79% for the six months
  of 2002 compared to 3.49% for the six months of 2001.  The rise in net
  interest margin for the 2002 period compared to 2001 resulted primarily from
  deposit rate decreases that were greater than loan yield decreases compared
  to the 2001 period as interest rates fell to near historic lows.  The cost
  of deposits fell by 134 basis points (1.34%) for the first six months of 2002
  compared to the first six months of 2001, while loan yields decreased by 118
  basis points (1.18%) over the same time period.  The Corporation expects
  ongoing pressure on net interest income despite continual management of interest
  rate risk.  The Corporation has undertaken numerous initiatives to expand
  its fee-based services to minimize the shrinkage of the net interest margin.
The following table shows the effect of changes in
  volumes and rates on interest income and interest expense.
Analysis of Changes in Net Interest Income
(dollar amounts in thousands)
2002 Change from 2001
Total
Change
Change Due
to Volume
Change Due
to Rate
Interest-earning
  assets:
Time deposits with banks
$(   19)
$   10
$(  
  29)
Securities
(3,117)
1,378
(4,495)
Federal funds sold
(484)
(470)
(14)
Loans
(12,430)
2,708
(15,138)
_______
_______
________
Total interest income
(16,050)
3,626
(19,676)
_______
_______
________
Interest-bearing
  liabilities:
Deposits
(21,197)
(700)
(20,497)
Short-term borrowings
(2,966)
2,249
(5,215)
Long-term debt
328
410
(82)
_______
_______
________
Total interest expense
(23,835)
1,959
(25,794)
_______
_______
________
Net interest income
$ 7,785
$ 1,667
$ 6,118
=======
=======
========
13
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
(continued)
Interest and fees on loans declined $12.4 million
  for 2002 compared to 2001 levels.  The decrease in interest income included
  decreases in interest income due to rate of $15.1 million which were partially
  offset by increases in interest income due to volume of $2.7 million. 
  The total yield on loans for the first six months of 2002 was 7.23%, compared
  to loan yields of 8.41% for the first six months of 2001.  Average loans
  for the first half of 2002 rose $72.9 million compared to the first half of
  2001 as increases in commercial loans and municipal loans were partially offset
  by decreases in average mortgage loans.  During 2002 the Corporation has
  continued to offer competitive fixed rate mortgages to customers wanting to
  lock in rates during the current low interest rate environment.  The Corporation
  has reduced interest rate risk related to new mortgage loan production through
  utilization of various lending programs whereby loans originated by subsidiary
  banks are immediately sold along with the right to service these loans.
Interest income on investments decreased $3.1 million
  for the six months of 2002 compared to the corresponding period of 2001 as decreases
  in interest income due to rate were only partially offset by increases in interest
  income due to volume.  Total yield on investments was 6.12% for the first
  half of 2002 compared to 6.63% for the first half of 2001.  Decreases in
  interest income due to rate for U.S. government agency securities were $2.8
  million as yields on U.S. government agency securities decreased 50 basis points
  (0.50%) for the 2002 period compared to 2001.  Average investments for
  the six months of 2002 included an increase of $48.7 million for corporate bonds
  compared to 2001 generating an increase in interest income of $1.8 million.
Interest on deposits fell $21.2 million for the 2002 period compared
  to 2001, as interest on total savings deposits decreased by $5.5 million and
  interest on time deposits decreased by $15.7 million.  Interest expense
  on deposits for the first half of 2002 reflected decreases due to rate of $20.5
  million as the cost of total savings deposits decreased 119 basis points (1.19%)
  and the cost of time deposits slipped 143 basis points (1.43%) compared to costs
  for the first half of 2001.  Average deposits for the first six months
  of 2002 included decreases in average time deposits of $145.5 million which
  were partially offset by increases in average total savings deposits of $89.9
  million over 2001 averages.
Interest expense on short-term borrowings decreased $3.0 million for the six
  months of 2002 compared to the corresponding period of 2001 as decreases in
  interest expense due to rate of $5.2 million were partially offset by increases
  in interest expense due to volume of $2.2 million compared to 2001 levels. 
  The cost of short-term borrowings for the 2002 period decreased by 298 basis
  points (2.98%) compared to 2001 costs of 4.84%.  The average balance of
  short-term borrowings for the first half of 2002 increased by $93.6 million
  compared to 2001 averages.
14
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Six Months of 2002 as Compared
  to the First Six Months of 2001
(continued)
Interest expense on long-term debt increased $328 thousand for the
  six  months of 2002 compared to the corresponding period of 2001 as a result
  of volume increases.  Average long-term debt for the six months of 2002
  increased by $14.5 million compared to 2001 averages as maturities were extended
  for short term borrowings from the Federal Home Loan Bank, to take advantage
  of the lower interest rate environment.
The provision for credit losses was $5.9 million for the six months of 2002
  compared to $5.0 million for the six months of 2001.  Net charge-offs against
  the allowance for credit losses were $5.8 million in the 2002 period, reflecting
  an increase of $1.1 million compared to 2001 levels.
The 2002 period included increases in net charge-offs for commercial loans not
  secured by real estate of $831 thousand compared to 2001 net charge-offs. 
  Net charge-offs as a percent of average loans outstanding were 0.22% for the
  first half of 2002 compared to 0.19% for the first half of 2001.  The provision
  for credit losses as a percent of net charge-offs was 102.51% at June 30, 2002
  compared to 106.07% at June 30, 2001.  See the "Credit Review"
  section for an analysis of the credit quality of the loan portfolio.
15
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2002 and 2001.
2002
2001
(amounts in thousands)
Balance January 1,
$34,157
$33,601
Loans charged off:
Commercial, financial and agricultural
2,972
860
Real estate-construction
3
-0-
Real estate-commercial
351
625
Real estate-residential
863
1,110
Loans to individuals
2,187
2,344
Lease financing receivables
236
306
_______
______
Total loans charged off
$ 6,612
$ 5,245
Recoveries of previously charged off loans:
Commercial, financial and agricultural
505
101
Real estate-construction
-0-
-0-
Real estate-commercial
-0-
-0-
Real estate-residential
11
42
Loans to individuals
311
417
Lease financing receivables
5
5
______
_______
Total recoveries
832
565
_______
_______
Net charge offs
5,780
4,680
_______
_______
Provision charged to operations
5,925
4,964
_______
_______
Balance June 30,
$34,302
$33,885
=======
=======
16
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
(continued)
Net securities gains were $615 thousand during the
  first half of 2002 compared to $2.0 million for the first half of 2001. 
  Securities gains during the 2002 period resulted primarily from the sale of
  Pennsylvania bank stocks, U.S. treasury securities and fixed rate corporate
  bonds classified as securities "available for sale" with book values
  of $1.1 million, $1.5 million, and $5.6 million, respectively.  The first
  half of 2001 included securities gains of $1.7 million generated from the sale
  of fixed rate corporate bonds with book values of $37.4 million.  Additional
     securities gains during the first half of 2001 resulted from
  the sale of U.S. government agency securities classified as securities "available
  for sale" with a book value of $10.0 million.
Service charges on deposits for the first half of
  2002 increased $151 thousand compared to the first half of 2001, primarily as
  a result of increases in bank club and account analysis fees.  Insurance
  commissions increased $519 thousand for the first half of 2002 compared to the
  first half of 2001 and included an increase of $274 thousand in annuity sales
  revenues.  Insurance commissions for the 2002 period also included increases
  in commercial lines and advanced life insurance income.  Insurance commissions
  for 2002 were also positively impacted by inclusion of Strategic Capital Concepts
  insurance production since March 1, 2002.
Other income for the first six months of 2002 fell
  to $5.7 million representing a decline of $791 thousand compared to $6.5 million
  reported for the first six months of 2001. This decrease was due in part to
  gains on sale of assets included in the 2001 period.  The Corporation sold
  one of its branches during the first quarter of 2001 which resulted in a gain
  of $777 thousand.  The 2001 period also included a gain of $212 thousand
  from the sale of $12.9 million of 30 year residential mortgage loans with significant
  prepayment exposure during the falling interest rate environment.
Fee based revenue, such as insurance commissions,
  mutual fund sales fees and investment management fees are expected to be positively
  impacted in future periods as the Corporation's newly acquired subsidiaries,
  Strategic Capital Concepts and Strategic Financial Advisors are incorporated
  into the integrated advisory sales model utilized to integrate products between
  the Corporation's bank, insurance and trust subsidiaries.  Certified financial
  planners from the new subsidiaries will also be included on the employee team
  used to deliver products and services to commercial customers through our "Total
  Solutions Financial Management" approach.
17
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First Six Months of 2002 as Compared to the First
  Six Months of 2001
(continued)
Noninterest expense was $67.1 million for the six
  months of 2002 reflecting a rise of $15.6 million over the 2001 level of $51.5
  million.  The increase in noninterest expense for 2002 was primarily the
  result of nonrecurring charges for the previously described litigation settlement
  and corporate restructuring of $8.0 million and $3.1 million, respectively.  
  Employee costs were $29.4 million for the first half of 2002, representing 1.30%
  of average assets on an annualized basis compared to $27.1 million or 1.23%
  of average assets on an annualized basis for 2001.  Salary costs for the
  2002 period increased $1.4 million or 6.6% compared to 2001 levels of $21.3
  million.  Employee benefit costs for the first six months of 2002 reflected
  increases of $943 thousand over the first six months of 2001 and included increases
  in health insurance costs, expenses of the Corporation's employee stock ownership
  plan and 401(k) plan compared to the first six months of 2001.
As a result of the merger of the Corporation's banking
  subsidiaries, Southwest Bank and First Commonwealth Bank, which is expected
  to occur later this year, banking operations are in the process of being consolidated
  under First Commonwealth Bank.  This change will provide banking clients
  with greater flexibility, efficiency and seamless service throughout our market-area. 
  As a result of this merger, there will be a consolidation of support functions
  with some staff positions being eliminated.  The personnel within the branches
  and relationship managers in the corporate services will continue to serve in
  the same manner.  Employees whose positions were being eliminated were
  notified and continued to work in their positions for at least 60 days. 
  Notified employees had the opportunity to seek other positions within the Corporation
  or to receive a separation package based on years of service.  A one-time
  charge of $2.8 million for the cost of the separation package is included in
  restructuring charges reported on the income statement for the second quarter
  of 2002.  In subsequent years a cost savings related to employee costs
  will be recognized which is estimated to be approximately $2.0 million annually. 
  Restructuring charges during 2002 also include $324 thousand related to writing
  off obsolete signs and supplies due to the name change under one charter.
Occupancy
expenses decreased for the 2002 period compared to 2001 primarily as a result
of decreases in building repairs, building depreciation and utilities
costs.  Furniture and equipment expenses
of $5.0 million for the first six months of 2002 reflected increases of $586
thousand over 2001 levels and included increases in computer software
depreciation and software maintenance of $783 thousand, primarily related to
the upgrade of core banking software.
18
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
First
  Six Months of 2002 as Compared to the First Six Months of 2001
(continued)
Outside data processing expense decreased $662 thousand
  for the first half of 2002 compared to the first half of 2001 and was positively
  impacted by the conversion of Southwest Bank from outsourced processing to that
  provided by a subsidiary of the Corporation.  Accounting changes from the
  adoption of FAS No. 142 resulted in a decrease of $461 thousand of goodwill
  amortization for the first half of 2002 compared to the first half of 2001. 
  Under the new pronouncement, goodwill amortization was discontinued effective
  January 1, 2002.
Other operating expenses for the 2002 period were $15.2 million reflecting a
  rise of $2.8 million over the 2001 amount of $12.4 million.  The first
  six months of 2002 included increases in loss on sale of assets, primarily loss
  on sale of vehicles previously leased, of $447 thousand compared to 2001 levels. 
  Other professional fees for the 2002 period reflected increases of $996 thousand
  over the first half of 2001 and included consulting fees related to implementation
  of the Corporation's "Balanced Scorecard" performance measurement
  system, enhancements to product and customer profitability systems and corporate
  restructuring.  Consultants are also being utilized to assist in the ongoing
  efforts to develop a world class sales culture and to generate new deposit dollars
  and relationships.  Corporate restructuring and movement towards a sales
  culture also impacted the decision to have employee benefit plans reviewed by
  outside specialists during 2002.  Promotions expense for the first six
  months of 2002 reflected an increase of $1.0 million compared to the first six
  months of 2001, due in part to expenses incurred in the successful marketing
  campaign for free checking products introduced during 2002. These products are
  expected to have a favorable impact on deposit growth, costs and service charge
  revenue in future periods as well as providing potential add on sales of other
  financial products and services.
Income tax expense was $2.7 million for the first
  six months of 2002 compared to $7.4 million for the first six months of 2001. 
  The Corporation's effective tax rate was 12.77% for the 2002 period compared
  to 23.4% for the corresponding period of 2001.  Income tax expense for
  the 2002 period included $2.8 million and $1.1 million tax benefit resulting
  from the previously described litigation settlement and restructuring charges,
  respectively.  The Corporation's effective tax rate for the 2002 period,
  excluding these one time charges was 20.4%.
19
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
Three Months Ended June 30, 2002 as Compared
  to the Three Months Ended
June 30, 2001
Net income was $11.0 million for the second quarter
  of 2002 a decrease of $1.1 million compared to 2001 results of $12.0 million. 
  The 2002 period included a $3.1 million ($2.0 million after-tax) one-time restructuring
  charge related to employee separation pay and costs related to merging the Corporation's
  two subsidiary banks under one charter.  Core earnings (excluding securities
  transactions, nonrecurring gains on sale of assets and nonrecurring charges)
  increased $1.7 million or 15.99% in the 2002 period.  Basic and diluted
  earnings per share were $0.19 during the 2002 quarter compared to $0.21 for
  the same period of 2001.  Diluted core earnings per share was $0.21 for
  the second quarter of 2002 compared to $0.19 for the second quarter of 2001. 
  Return on average assets was 0.96% and return on average equity was 11.43% during
  the 2002 quarter, compared to 1.08% and 13.69%, respectively during the 2001
  quarter.  Core return on average assets and core return on average equity
  were 1.11% and 13.15% for the second quarter of 2002.
For the Quarter
Ended June 30,
2002
2001
Reconciliation of Core Earnings
Net income as reported
$10,957
$12,034
Non-core items (net of tax):
Gains on sale of securities and other
        assets
(374)
(1,164)
Restructuring charges
2,025
-0-
________
________
Core net income
$12,608
$10,870
========
========
Core basic earnings per share
$0.22
$0.19
Core diluted earnings per share
$0.21
$0.19
Core return on average assets
1.11%
0.97%
Core return on average equity
13.15%
12.37%
Net
interest income for the second quarter of 2002 of $37.9 million represented an
increase of $4.0 million compared to the second quarter of 2001.  Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2002
period was 3.77%, reflecting an increase of 33 basis points (0.33%) from 3.44%
reported in 2001 as the cost of funds declined more than asset yields, when
interest rates fell throughout 2001 and remained at low levels during the 2002
period.
20
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
Three Months Ended June 30, 2002 as Compared to the
Three Months Ended
June 30, 2001
(
continued)
Interest and fees on loans for the three months ended
  June 30, 2002 decreased $5.5 million compared to the three months ended June
  30, 2001, primarily as a result of rate decreases, most notably for variable
  rate commercial loans.  The total yield on loans for the second quarter
  of 2002 was 7.15% representing a decrease of 107 basis points (1.07%) compared
  to yields for the second quarter of 2001.  Declines in interest and fees
  on loans due to rate for the second quarter of 2002 compared to the second quarter
  of 2001 were partially offset by increases in interest income due to volume
  for commercial loans.  Average loans for the second quarter of 2002 increased
  $80.0 million compared to averages for the second quarter of 2001 and included
  increases in commercial loans and direct installment loans which were partially
  offset by decreases in residential mortgage loans.
Interest income on investments for the three months
  ended June 30, 2002 was $24.6 million, reflecting a decrease of $1.7 million
  compared to the three months ended June 30, 2001.  Decreases in interest
  income due to rate for government agency securities were $1.2 million as yields
  on government agency securities declined 46 basis points (0.46%) compared to
  yields for 2001.  Total yield on investments was 6.09% for the second quarter
  of 2002 compared to 6.56% for the second quarter of 2001.  Changes in investment
  income due to rate totaled $2.0 million for the 2002 period as overall interest
  rates were lower than in the prior year.  Rate decreases during 2002 were
  slightly offset by volume increases, most notably, volume increases of $521
  thousand for corporate bonds.  Average corporate bonds for the second quarter
  of 2002 increased $29.4 million compared to 2001 averages.
Interest on deposits for the second quarter of 2002
  was $20.8 million reflecting a decrease of $10.5 million compared to the second
  quarter of 2001 as both rates and volumes declined for the 2002 period. 
  Interest expense on savings reflected decreases due to rate of $2.7 million
  for the 2002 period as savings costs fell from 2.31% in 2001 to 1.21% in 2002. 
  Interest on time deposits reflected decreases due to rate of $8.4 million and
  decreases due to volume of $2.1 million for the second quarter of 2002 compared
  to the second quarter of 2001.  Average time deposits were $1,626.4 million
  for 2002 compared to $1,770.2 million for the corresponding period of 2001. 
  The cost of time deposits was 4.28% for 2002 compared to 5.71% for 2001.
Interest on short-term borrowings for the second
  quarter of 2002 decreased $1.2 million compared to the second quarter of 2001
  as rate decreases were partially offset by volume increases.  Short-term
  borrowing costs were 1.85% for the 2002 period compared to 4.32% for the 2001
  period resulting in a decrease in interest expense due to rate of $2.0 million. 
  Average short-term borrowings increased $73.4 million for the second quarter
  of 2002 compared to the corresponding period of 2001 generating an increase
  in
21
FIRST COMMONWEALTH FINANCIAL
  CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
Three Months Ended June 30, 2002 as Compared to the
Three Months Ended
June 30, 2001
(
continued)
interest expense due to volume of $800 thousand. 
  Interest on long-term debt for the three months ended June 30, 2002 increased
  $200 thousand over the three months ended June 30, 2001.  Average long-term
  debt increased $16.2 million for the 2002 quarter compared to the 2001 quarter.
The provision for credit losses was $3.0 million
  for the three months ended June 30, 2002 compared to $2.6 million for the three
  months ended June 30, 2001.  Net charge-offs for the second quarter of
  2002 were $2.8 million, compared to net charge-offs of $3.0 million for the
  second quarter of 2001.  Net charge-offs for the second quarter of 2002
  included decreases in charge-offs of residential mortgage loans and commercial
  loans secured by real estate of $346 thousand and $207 thousand respectively,
  compared to 2001 levels.
Net securities gains were $576 thousand for the second
  quarter of 2002 compared to securities gains of $1.8 million for the second
  quarter of 2001.  The 2002 period included gains primarily from the sale
  of Pennsylvania bank stocks in the amount of $475 thousand.  Securities
  gains for the second quarter of 2001 resulted primarily from sales of fixed
  rate corporate bonds classified as securities "available for sale"
  with book values of $37.4 million.
Insurance commissions increased $318 thousand for
  the second quarter of 2002 compared to the corresponding period of 2001. 
  Although service charges on deposits increased by only $39 thousand during 2002
  they are expected to be favorably impacted in future periods by the Corporation's
  "High Performance" checking products which were introduced during
  2002.
Other income for the three months ended June 30,
  2002 was $3.1 million, an increase of $273 thousand over $2.9 million reported
  for the three months ended June 30, 2001.  Income from gains on sale of
  other real estate owned, bank club income and check printing revenue increased
  $334 thousand, $104 thousand and $52 thousand compared to 2001 revenues. 
  Other income for the second quarter of 2002 reflected decreases in debit card
  interchange and mutual fund sales commissions of $176 thousand and $150 thousand
  respectively.
Total noninterest expense for the three months ended
  June 30, 2002 was $31.6 million reflecting an increase of $5.6 million over
  the $26.0 million that was reported for the corresponding period of 2001. 
  The increase for 2002 resulted primarily from the previously discussed restructuring
  charges of $3.1 million.  Additional restructuring costs are expected to
  be incurred during the third quarter of 2002.  Employee costs were $14.8
  million during the second quarter of 2002 reflecting an increase of $1.4 million
  over 2001 levels.  Salaries increased by $884 thousand for the second quarter
  of 2002 and employee benefit costs increased $482 thousand.  Employee benefit
  cost increases resulted primarily from increases in health insurance costs of
  $261 thousand compared to 2001 levels.
22
FIRST COMMONWEALTH FINANCIAL CORPORATION
  AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS
OF OPERATIONS (continued)
Three Months Ended June 30, 2002 as Compared
  to the Three Months Ended
June 30, 2001
(continued)
Furniture and equipment expenses increased $314 thousand
  for the second quarter of 2002 primarily as a result of increases in software
  depreciation and software maintenance costs.  Outside data processing expenses
  decreased $337 thousand for the second quarter of 2002 as one of the Corporation's
  subsidiary banks converted to in-house data processing during the fourth quarter
  of 2001.  The three months ended June 30, 2002 reflected a decrease of
  $231 thousand related to implementation of FAS No. 141 during 2002 which changed
  the accounting treatment for goodwill from an amortizing intangible to a non-amortizing
  intangible.
Other operating expenses for the second quarter of
  2002 increased $1.4 million and included increases for loss on asset sales,
  other professional fees and promotions expenses of $104 thousand, $625 thousand
  and $595 thousand respectively, compared to 2001 costs.  As previously
  discussed, these increases resulted from various restructuring and marketing
  initiatives including sales and product development including branding, as well
  as performance measurement system enhancements.  Directors fees are expected
  to be reduced in future periods as corporate governance is re-evaluated and
  board structures are modified for more effective and efficient management. 
  One-time charges and estimates of future cost savings of this initiative are
  expected to be identified later this year.  Postage expense decreased $138
  thousand during the second quarter of 2002 as customer privacy mailings were
  incorporated in regular mailings in the 2002 period and additional cost control
  initiatives were also implemented.
Income taxes were $2.3 million for the 2002 period
  compared to $3.7 million for the corresponding period of 2001.  The Corporation's
  effective tax rate was 17.29% for the second quarter of 2002 compared to 23.7%
  for the second quarter of 2001.  The 2002 period included the tax benefit
  of $1.1 million related to the nonrecurring expenses for restructuring. 
  The Corporation's effective tax rate excluding nonrecurring expenses was 20.66%
  for the three months ended June 30, 2002.
LIQUIDITY
Liquidity is a measure of the Corporation's
  ability to efficiently meet normal cash flow requirements of both borrowers
  and depositors.  In the ordinary course of business, funds are generated
  from the banking subsidiaries core deposit base and the maturity or repayment
  of earning assets such as securities and loans.  As an additional secondary
  source, short-term liquidity needs may be provided through the use of overnight
  Federal funds purchased, borrowings through the use of lines available for repurchase
  agreements and borrowings from the Federal Reserve Bank.  Additionally,
  the banking subsidiaries are members of the Federal Home Loan Bank and may borrow
  under overnight and term borrowing arrangements.  The sale of earning assets
  may also provide an additional source of liquidity.
23
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(Continued)
The Corporation monitors liquidity through regular computations
  of prescribed liquidity ratios.  The Corporation actively manages liquidity
  within a defined range and has developed liquidity contingency plans, including
  ensuring availability of alternate funding sources to maintain liquidity under
  a variety of business conditions.  In addition to the previously described
  funding sources, the Corporation also has the ability to access the capital
  markets.
At June 30, 2002 total earning assets were $4,348
  million, up $13.1 million from the $4,335 million recorded at December 31, 2001. 
  Net loans rose $44.9 million for the first six months of 2002 fueled by increases
  in the commercial, municipal and installment categories offset in part by decreases
  in mortgage loans.  Interest bearing liabilities settled at $3,776 million
  at June 30, 2002, up slightly from year-end 2001.  Total borrowings dropped
  by $105.1 million for the first six months of 2002 due primarily to the rise
  in deposits.  Deposits grew $90.5 million for the first six months of 2002
  as increases in time deposits of $33.6 million and total savings of $75.5 million
  were partially offset by a decline in demand deposits of $18.6 million. 
  The Corporation has launched a program ("High Performance Checking")
  that is focused on growing deposits, primarily in the low cost categories, that
  is expected to have a favorable impact on deposit growth and mix.
Marketable securities that the Corporation holds in its investment portfolio
  are an additional source of liquidity. These securities are classified as "securities
  available for sale" and while the Corporation does not have specific intentions
  to sell these securities, they have been designated as "available for sale"
  because they may be sold for the purpose of obtaining future liquidity, for
  management of interest rate risk or as part of the implementation of tax management
  strategies.  As of June 30, 2002, securities available for sale had an
  amortized cost of $1,436.4 million and an approximate fair value of $1,469.4
  million.
Interest Sensitivity
The objective of interest rate sensitivity management is
  to maintain an appropriate balance between the stable growth of income and the
  risks associated with maximizing income through interest sensitivity imbalances. 
  While no single number can accurately describe the impact of changes in interest
  rates on net interest income, interest rate sensitivity positions, or "gaps",
  when measured over a variety of time periods, may be helpful.
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.
24
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 $604.3 million or 13.18% of earning assets as of June
  30, 2002.  A positive gap tends to indicate that earnings will be impacted
  favorably if interest rates rise during the period and negatively when interest
  rates fall during the time period.  A negative gap tends to indicate that
  earnings will be affected inversely to interest rate changes.  In other
  words, as interest rates fall, a negative gap should tend to produce a positive
  effect on earnings, and when interest rates rise, a negative gap should tend
  to affect earnings negatively.
The primary components of ISA include adjustable rate loans
  and investments, loan repayments, investment maturities and money market investments. 
  The primary components of ISL include maturing certificates of deposit, money
  market deposits, savings deposits, NOW accounts and short-term borrowings.
The following table lists the amounts and ratios
  of assets and liabilities with rates or yields subject to change within the
  periods indicated as of June 30, 2002 and December 31, 2001.
June 30, 2002
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$ 949,713
$161,538
$269,673
$1,380,924
Investments
201,903
80,439
236,231
518,573
Other interest-earning assets
744
-0-
-0-
744
__________
_________
_________
__________
Total interest-sensitive assets
1,152,360
241,977
505,904
1,900,241
__________
_________
_________
__________
Certificates of deposit
344,654
230,196
356,282
931,132
Other deposits
1,165,687
-0-
-0-
1,165,687
Borrowings
305,214
101,125
1,341
407,680
__________
_________
__________
__________
Total interest-sensitive
liabilities
1,815,555
331,321
357,623
2,504,499
__________
_________
_________
__________
Gap
$ (663,195)
$( 89,344)
$ 148,281
$(604,258)
===========
==========
==========
==========
ISA/ISL
0.63
0.73
1.41
0.76
Gap/Total Assets
14.46%
1.95%
3.23%
13.18%
25
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
December
  31, 2001
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$  839,279
$ 155,276
$ 276,760
$1,271,315
Investments
154,327
90,890
180,001
425,218
Other interest-earning assets
4,250
-0-
-0-
4,250
_________
________
________
_________
Total
  interest-sensitive assets
997,856
246,166
456,761
1,700,783
_________
________
________
_________
Certificates of deposit
329,825
284,518
407,188
1,021,531
Other deposits
1,090,160
-0-
-0-
1,090,160
Borrowings
430,189
350
750
431,289
_________
________
________
_________
Total
  interest-sensitive
Liabilities
1,850,174
284,868
407,938
2,542,980
_________
________
________
_________
Gap
$
  (852,318)
$
  (38,702)
$
  48,823
$ (842,197)
==========
========
========
==========
ISA/ISL
0.54
0.86
1.12
0.67
Gap/Total Assets
18.60%
0.84%
1.07%
18.37%
Although
the periodic gap analysis provides management with a method of measuring
current interest rate risk, it only measures rate sensitivity at a specific point
in time.  Therefore, to more precisely
measure the impact of interest rate changes on the Corporation's net interest
income, management simulates the potential effects of changing interest rates
through computer modeling.  The dynamic
simulation model used by the Corporation captures all assets, liabilities and
off-balance sheet financial instruments, accounting for significant variables
that are believed to be affected by interest rates.  These variables include prepayment speeds on mortgage loans and
mortgage backed securities, cash flows from loans, deposits and investments and
balance sheet growth assumptions.  The
model also captures embedded options, such as interest rate caps/floors or call
options, and accounts for changes in rate relationships as various rate indices
lead or lag changes in market rates. 
The Corporation is then better able to implement strategies which would
include an acceleration of a deposit rate reduction or lag in a deposit rate
increase.  The repricing strategies for
loans would be inversely related.
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve month period.  Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors. 
Additional simulations are produced estimating the impact on net
interest income of a 300 basis point (3.00%) movement upward or downward from
the base case scenario.  The Corporation's
26
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
current asset/liability management policy indicates
  that a 300 basis point (3.00%) change in interest rates up or down cannot result
  in more than a 7.5% change in net interest income when compared to a base case,
  without Board approval and a strategy in place to reduce interest rate risk
  below the established maximum level.  The analysis at June 30, 2002 indicated
  that a 300 basis point (3.00%) increase in interest rates would decrease net
  interest income 78 points (0.78%) below the base case scenario and a 300 basis
  point (3.00%) decline in interest rates would decrease net interest income by
  573 basis points (5.73%) below the base case scenario, over the next twelve
  months, both well within policy limits.  Management believes the probability
  of a 300 basis point (3.00%) drop in interest rates is low.  Additional
  simulation decreasing interest rates 100 basis points (1.00%) would result in
  an increase in net interest income of 41 basis points (0.41%), also well 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 maximize the Corporation's net
  interest income based on the assumption of those risks.  The ALCO attempts
  to mitigate interest rate risk through the use of strategies such as asset sales,
  asset and liability pricing and matched maturity funding.  The ALCO strategies
  are established by the Corporation's senior management and are approved by the
  Corporation's board of directors.  The ALCO continues to evaluate the use
  of derivative instruments to protect against the risk of adverse price or interest
  rate movements on the values of certain assets and liabilities, although none
  are being utilized currently.
CREDIT REVIEW
The following table identifies amounts of loan losses and nonperforming
loans.  Past due loans are those which
were contractually past due 90 days or more as to interest or principal
payments but are well secured and in the process of collection.  Renegotiated loans are those which terms
have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.
27
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW(continued)
At June 30,
2002
2001
(amounts in thousands)
Nonperforming Loans
:
Loans on nonaccrual basis
$   25,705
$    8,937
Past due loans
14,987
20,500
Renegotiated loans
828
2,237
__________
__________
Total Nonperforming Loans
$   41,520
$   31,674
==========
==========
Other real estate owned
$    1,468
$    1,786
Loans outstanding at end of period
$2,612,965
$2,547,540
Average loans outstanding (year-to-date)
$2,588,873
$2,515,991
Nonperforming loans as percent of total
        loans
1.59%
1.24%
Provision for credit losses
$    5,925
$    4,964
Net charge-offs
$    5,780
$    4,680
Net charge-offs as percent of average
loans outstanding
0.22%
0.19%
Provision for credit losses as percent
of net charge-offs
102.51%
106.07%
Allowance for credit losses as percent
of average loans outstanding
1.32%
1.35%
Allowance for credit losses as percent
of end-of-period loans outstanding
1.31%
1.33%
Allowance for credit losses as percent
of nonperforming loans
82.62%
106.98%
The
Corporation considers a loan to be impaired when, based on current information
and events, it is probable that the Corporation will be unable to collect
principal or interest due according to the contractual terms of the loan.  Loan impairment is measured based on the
present value of expected cash flows discounted at the loan's effective
interest rate or, as a practical expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral
dependent.  Payments received on
impaired loans are applied against the recorded investment in the loan.  For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash
basis.  Impaired loans include loans on
a nonaccrual basis and renegotiated loans.
28
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The following table identifies impaired loans, and
  information regarding the relationship of impaired loans to the reserve for
  credit losses at June 30, 2002 and June 30, 2001.
2002
2001
(amounts
  in thousands)
Recorded investment in impaired loans at end of
  period
$26,533
$11,174
Year to date average balance of impaired loans
$25,078
$12,052
Allowance for credit losses related to impaired
  loans
$ 5,382
$ 1,669
Impaired loans with an allocation of the allowance
  for
credit losses
$15,312
$ 3,661
Impaired loans with no allocation of the allowance
  for
credit losses
$11,221
$ 7,513
Year to date income recorded on impaired loans on
  a cash basis
$   188
$   233
Other than those described above, there are no material
  credits that management has serious doubts as to the borrower's ability to comply
  with the present loan repayment terms.  Additionally, the portfolio is
  well diversified and as of June 30, 2002, there were no significant concentrations
  of credit.
Nonperforming loans at June 30, 2002 increased $9.8 million compared to 2001
  levels as increases in nonaccrual loans were only partially offset by decreases
  in past due loans and renegotiated loans.  Past due loans improved in comparison
  to both year-end 2001 and June 30, 2002. The jump in nonaccrual loans compared
  to year-ago levels resulted principally from the inclusion of two significant
  credits during the third quarter of 2001.  The largest credit ($6.5 million)
  is not past due and carries an 80% guaranty of a U.S. government agency but
  is experiencing cash flow difficulties and has been placed in nonaccrual status. 
  A resolution of this credit is expected during 2002.  The second credit,
  which was $5.9 million at year-end 2001, continues to be resolved through liquidation
  of collateral and exercising other remedies.  The balance outstanding at
  June 30, 2002,  related to this credit was $4.4 million.  The Corporation
  anticipates final resolution of this credit during 2002 without additional losses
  in excess of amounts currently reserved.  Nonperforming loans at June 30,
  2002, were basically unchanged compared to December 31, 2001.  Nonperforming
  loans as a percent of total loans was 1.59% at June 30, 2002, compared to 1.62%
  at December 31, 2001, and 1.24% at June 30, 2001, while the allowance for credit
  losses as a percent of nonperforming loans was 82.62%, 82.28% and 106.98%, respectively
  for the same periods.
29
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation's loan portfolio continues to be
  monitored by senior management to identify potential portfolio risks and detect
  potential credit deterioration in the early stages.  Committees formed
  during 2001 for the purpose of reviewing watchlist credits for workout progress
  or deterioration and monitoring loan loss adequacy and the status of significant
  nonperforming credits continue to provide additional internal monitoring and
  analysis in addition to that provided by the credit committees of the banks
  and parent company.  Credit risk is mitigated during the loan origination
  process through the use of sound underwriting policies and collateral requirements. 
  Management also attempts to minimize loan losses by analyzing and modifying
  collection techniques on a periodic basis.
The Corporation maintains an allowance for credit
  losses at a level deemed sufficient to absorb losses which are inherent in the
  loan and lease portfolios.  Management and the Corporation's Board of Directors
  review the adequacy of the allowance on a quarterly basis to ensure that the
  provision for credit losses has been charged against earnings in an amount necessary
  to maintain the allowance at a level that is appropriate based on management's
  assessment of probable estimated losses.
The Corporation's methodology for assessing the appropriateness
  of the allowance for credit losses consists of several key elements.  These
  elements include a specific allowance for primary watch list classified loans,
  a formula allowance based on historical trends, an additional allowance for
  special circumstances and an unallocated allowance.  The Corporation believes
  that the allowance for credit losses is adequate at this time.  Uncertain
  economic conditions pose a risk to the banking industry but management believes
  that its risk management process serves as an early warning system so that appropriate
  responses will be implemented, as required.
CAPITAL RESOURCES
Shareholders' equity stood at $387.5 million
  at June 30, 2002, a $17.5 million or 4.7% rise compared to December 31, 2001. 
  Dividends declared reduced equity by $17.6 million and $16.9 million for the
  first six months of 2002 and 2001, respectively.  Payments by the Corporation's
  Employee Stock Ownership Plan (the "ESOP") to reduce debt it incurred
  to acquire the Corporation's common stock for future distribution as employee
  compensation, net of fair value adjustments to ESOP shares, increased equity
  by $536 thousand.  Amounts paid to fund the discount on reinvested dividends
  reduced equity by $316 thousand.  The market value adjustment for available
  for sale securities net of security sales increased equity by $12.7 million
  for the period.  Proceeds from the reissuance of treasury shares to provide
  for stock options exercised increased equity by $2.7 million during 2002. 
  Equity capital was also impacted during 2002 by an increase of $812 thousand
  from the reissuance of treasury shares to fund an acquisition.
30
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL RESOURCES
(continued)
A strong capital base provides the Corporation with
  a foundation to expand lending, to protect depositors and provide for growth
  while protecting against future uncertainties.  The evaluation of capital
  adequacy depends on a variety of factors, including asset quality, liquidity,
  earnings history and prospects, internal controls and management ability. 
  In consideration of these factors, management's primary emphasis with respect
  to the Corporation's capital position is to maintain an adequate and stable
  ratio of equity to assets.
The Federal Reserve Board has issued risk-based
  capital adequacy guidelines which are designed principally as a measure of credit
  risk.  These guidelines require:  (1) at least 50% of a banking organization's
  total capital be common and other "core" equity capital ("Tier
  I Capital"); (2) assets and off-balance-sheet items be weighted according
  to risk; (3) the total capital to risk-weighted assets ratio be at least 8%;
  and (4) a minimum leverage ratio of Tier I capital to average total assets. 
  The minimum leverage ratio is not specifically defined, but is generally expected
  to be 3-5 percent for all but the most highly rated banks, as determined by
  a regulatory rating system.
The table below presents the Corporation's capital position at June 30, 2002:
Amount
(in thousands)
Percent
of Adjusted
Assets
Tier
  I Capital
$392,885
12.9%
Risk-Based
  Requirement
121,941
4.0
Total
  Capital
427,187
14.0
Risk-Based
  Requirement
243,882
8.0
Minimum
  Leverage Capital
392,885
8.6
Minimum
  Leverage Requirement
136,573
3.0
For an institution to qualify as well capitalized
  under regulatory guidelines, Tier 1, Total and Leverage Capital ratios must
  be at least 6.0%, 10.0% and 5.0%, respectively.  At June 30, 2002, the
  Corporation's banking subsidiaries exceeded those requirements.
ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES
  ABOUT MARKET RISK
Information appearing in Item 2 of this report under
  the caption "Interest Sensitivity" is incorporated herein by reference
  in response to this item.
31
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
PART II - OTHER INFORMATION
ITEM 1.   LEGAL PROCEEDINGS
There were no material legal
  proceedings to which the Corporation
or its subsidiaries are a
  party, or of which any of their
property is the subject, except
  proceedings which arise in the
normal course of business
  and, in the opinion of management, will
not have a material adverse
  effect on the consolidated operations
or financial position of the
  Corporation and its subsidiaries.
ITEM 2.   CHANGES IN SECURITIES
Not
  applicable
ITEM 3.   DEFAULTS UPON SENIOR SECURITIES
Not applicable
ITEM 4.   SUBMISSION OF MATTERS TO
  A VOTE OF SECURITY HOLDERS
On
  April 22, 2002, the Corporation held its regularly scheduled
annual meeting of shareholders. 
  The following proposal was
considered and acted
  upon:
Proposal
  1
The
  following directors were elected for terms to expire in 2005:
Votes               
   Votes
For              
  Withheld
Ray
  T. Charley           46,767,974    
          479,399
Edward
  T. Cote           46,658,005    
          589,368
Johnston
  A. Glass        46,773,276    
          474,097
Dale
  P. Latimer          46,725,211    
          522,162
Joseph
  E. O'Dell         46,766,170    
          481,203
David
  R. Tomb Jr.        46,696,466    
          550,907
ITEM 5.   OTHER INFORMATION
Not applicable
ITEM 6.   EXHIBITS AND REPORTS ON FORM
  8-K
(a)     Exhibits
Exhibits
  99.1 and 99.2 Certification pursuant to 18 U.S.C.
Section 1350 as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
(b)     Reports on Form 8-K
None
32
SIGNATURES
Pursuant to the requirements of the Securities Exchange
  Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
FIRST COMMONWEALTH FINANCIAL CORPORATION
(Registrant)
DATED:  AUGUST 13, 2002     /S/Joseph E. O'Dell
____________________________________
Joseph E. O'Dell, President and
Chief Executive Officer
DATED:  AUGUST 13, 2002    
  /S/John J. Dolan
_____________________________________
John J. Dolan, Executive Vice
President and Chief Financial Officer
33