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<title>FORM 10-Q</title>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>(X)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>QUARTERLY
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the quarterly period ended June 30, 2003</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p align=center><font size=3
  face=Courier><br>
  OR<br><br></font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p><font size=3 face=Courier>(&nbsp;)</font></p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=79 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=612 valign=top>
  <p><font size=3 face=Courier>For
  the transition period from <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </u>to <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<p><font size=3 face=Courier><br>
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.<br>
<br>
Yes <u>&nbsp;&nbsp;&nbsp;X&nbsp;&nbsp;&nbsp;</u>&nbsp; No <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>.<br>
<br>
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
August 6, 2003, was 59,157,540.</font></p>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=115 valign=top>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><u><font size=3
  face=Courier>ITEM 1.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>FINANCIAL STATEMENTS</font></p>
  </td>
  <td width=55 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>PAGE</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>Included in Part I of this report:</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>First Commonwealth Financial Corporation and</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Subsidiaries Consolidated Balance Sheets.................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Income......................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>4</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Changes in</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Shareholders' Equity.................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>5</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Consolidated Statements of Cash Flows..................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>6</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Notes to Consolidated Financial
  Statements................ </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>7</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 2.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  14</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 3.</font></u></p>
  </td>
  <td width=564 valign=top>
  <p><font size=3 face=Courier>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  MARKET RISK.. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier><br>
  35</font></p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=564 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=115 valign=top>
  <p><u><font size=3
  face=Courier>ITEM 4.</font></u></p>
  </td>
  <td width=564 valign=bottom>
  <p><font size=3 face=Courier>CONTROLS AND PROCEDURES..................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>35</font></p>
  </td>
 </tr>
</table>

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;</font></p>
  <p><font size=3 face=Courier>Other Information...................................................... </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>&nbsp;</font></p>
  <p align=right><font
  size=3 face=Courier>36</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>Signatures............................................................. </font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right><font
  size=3 face=Courier>37</font></p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=679 valign=bottom>
  <p><font size=3 face=Courier>Exhibits and Reports on Form 8K</font></p>
  </td>
  <td width=55 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>June
  30,<br>
  <u>2003</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>December
  31,<br>
  <u>2002</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>ASSETS</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and due
  from banks on demand........................ </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>91,218&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>81,114&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Interest-bearing
  bank deposits........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,237&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,973&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities
  available for sale, at market................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,835,859&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,482,771&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Securities held
  to maturity, at cost,(Market value $135,402 in<br>
  &nbsp;&nbsp;&nbsp;&nbsp;2003 and $204,887 in 2002)............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  127,765&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  197,838&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Loans.................................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,622,194&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,609,440&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unearned
  income........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(625)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(806)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Allowance
  for credit losses............................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(35,604)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(34,496)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  loans.......................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,585,965&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,574,138&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Premises and
  equipment................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>44,917&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>45,730&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other real
  estate owned.................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,714&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,651&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Goodwill................................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,131&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,131&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Amortizing
  intangibles, net.............................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>16&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>29&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other assets............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;133,942&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;131,368&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  assets......................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,830,764&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>LIABILITIES</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Deposits (all
  domestic):</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Noninterest-bearing.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>396,794&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>377,466&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest-bearing....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,823,015&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>2,666,658&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  deposits....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,219,809&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,044,124&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Short-term
  borrowings.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>594,210&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>469,065&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other
  liabilities........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,875&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,230&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Company
  obligated mandatorily redeemable capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust....................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  35,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Other long-term
  debt..................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;543,408&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;544,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  long-term debt................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;578,408&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;579,934&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,419,302&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,123,353&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>SHAREHOLDERS' EQUITY</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Preferred
  stock, $1 par value per share, 3,000,000 shares<br>
  &nbsp;&nbsp;&nbsp;&nbsp;authorized, none issued................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Common stock $1
  par value per share, 100,000,000 shares authorized,<br>
  &nbsp;&nbsp;&nbsp;&nbsp;62,525,408 shares issued; 59,071,871 and 58,962,543
  shares outstanding at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;June 30, 2003 and December 31, 2002 respectively....... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  62,525&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Additional
  paid-in capital............................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,361&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Retained
  earnings........................................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>304,595&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Accumulated
  other comprehensive income................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,101&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Treasury stock
  (3,453,537 shares at June 30, 2003 and 3,562,869 at<br>
  &nbsp;&nbsp;&nbsp;&nbsp;December 31, 2002, at cost)............................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  (43,601)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  (44,981)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Unearned ESOP
  shares..................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(2,519)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(3,055)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  shareholders' equity........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;411,462&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;401,390&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
  liabilities and shareholders' equity........... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,830,764&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>4,524,743&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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

<table border=0 cellspacing=0 cellpadding=0 width=737>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=211 colspan=4 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the Quarter <br>
  <u>Ended June 30,</u></font></p>
  </td>
  <td width=219 colspan=4 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the 6 Months<br>
  <u>Ended June 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=105 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=105 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
  <td width=109 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td width=110 colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Income</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  and fees on loans...... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>41,523&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>45,220&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>83,552&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>90,547&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  and dividends on investments:</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Taxable
  interest ............. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,449&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>21,791&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>33,605&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>44,029&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Interest
  exempt from Federal<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;income taxes</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 2,687&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,417&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 5,210&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,809&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Dividends..................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>523&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>441&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,125&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>993&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on Federal funds sold.. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>4&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on bank deposits....... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  9&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income......... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 61,186&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>69,878&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; 123,503&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>140,401&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Interest Expense</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on deposits............ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;15,961&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>20,782&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;31,758&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>42,103&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on short-term borrowings. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,598&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,502&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,150&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,267&nbsp;</font></p>
  </td>
 </tr>
 <tr height=6>
  <td width=307 height=6 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 height=6 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on company obligated<br>
  &nbsp;&nbsp;&nbsp;&nbsp;mandatorily redeemable <br>
  &nbsp;&nbsp;&nbsp;&nbsp;capital securities of<br>
  &nbsp;&nbsp;&nbsp;&nbsp;subsidiary trust.............. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 831&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  <br>
  832&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  <br>
  1,662&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  <br>
  <br>
  1,663&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Interest
  on other long-term debt</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,355&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,829&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;14,646&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;17,393&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest on long-term debt</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,186&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;9,661&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;16,308&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;19,056&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense........ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;25,745&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;31,945&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;51,216&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;64,426&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Net Interest Income........... </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 35,441&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>37,933&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 72,287&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>75,975&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Provision
  for credit losses..... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,465&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;3,008&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,925&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;5,925&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1 face=Courier>Net interest income after
  provision for </font></b></p>
  <p><b><font size=1 face=Courier>&nbsp;&nbsp;credit losses</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;31,976&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  34,925&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;65,362&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;&nbsp;70,050&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Other Income</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Securities
  gains................ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,221&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>576&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,455&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>615&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Trust
  income.................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; 1,284&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,342&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; 2,469&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,555&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Service
  charges on deposit <br>
  &nbsp;&nbsp;&nbsp;&nbsp;accounts...................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;3,255&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,746&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;6,104&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,439&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Insurance
  commissions........... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>848&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>951&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,645&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,807&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Income
  from bank owned life<br>
  &nbsp;&nbsp;&nbsp;&nbsp;insurance..................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,052&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,173&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,098&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,242&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  income.................... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,538&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;3,149&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,498&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;5,668&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other income............ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,198&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;9,937&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;24,269&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;18,326&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Other Expenses</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Salaries
  and employee benefits.. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>15,146&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>14,767&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>30,481&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>29,410&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  occupancy expense........... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,771&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,613&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,745&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,299&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Furniture
  and equipment expense. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;2,544&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>2,568&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;5,096&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>4,966&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Data
  processing expense......... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 621&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>484&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;1,148&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>926&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Pennsylvania
  shares tax expense. </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; 1,081&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>996&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp; 2,141&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>1,991&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Intangible
  amortization......... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp; 6&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>68&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp; 13&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>188&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Litigation
  settlement (recovery)</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; (610)</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,000&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp; Restructuring charges........... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -0-</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,116&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,116&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  operating expenses........ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7,213&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;8,003&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;14,140&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;15,162&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  other expenses.......... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;28,382&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;31,615&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;56,154&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;67,058&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Income before income taxes.... </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>16,792&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>13,247&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp; 33,477&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>21,318&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Applicable
  income taxes......... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,365&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,290&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6,746&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;2,723&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Net income.................... </font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;13,427&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;10,957&nbsp;</font></u></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;26,731&nbsp;</font></u></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;18,595&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>Average
  Shares Outstanding........ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,769,160&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,359,322&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,736,392&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,251,440&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>Average
  Shares Outstanding Assuming Dilution</font></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,101,475&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,851,264&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>59,018,324&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>58,669,047&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><b><font size=1
  face=Courier>Per Share Data:</font></b></p>
  </td>
  <td width=21 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=21 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=25 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=84 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Basic
  earnings per share........ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.19&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.46&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.32&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Diluted
  earnings per share...... </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.23&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.19&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.45&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.32&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=307 valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Cash
  dividends per share........ </font></p>
  </td>
  <td width=21 valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.155&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.150&nbsp;</font></p>
  </td>
  <td width=21 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.310&nbsp;</font></p>
  </td>
  <td width=25 valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td width=84 valign=bottom>
  <p align=right><font
  size=1 face=Courier>0.300&nbsp;</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier>&nbsp;&nbsp;The
accompanying notes are an integral part of these consolidated financial
statements.<br>
4<br><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>
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY<br>
(Unaudited)<br>
(Dollars in thousands)<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Common<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Additional<br>
  Paid-in<br>
  <u>Capital</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Retained<br>
  <u>Earnings</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier>Accumulated<br>
  Other<br>
  Comprehensive<br>
  <u>Income</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  <br>
  Treasury<br>
  <u>Stock</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Unearned<br>
  ESOP<br>&nbsp;<u>Shares</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font
  size=1 face=Courier><br>
  Total<br>
  Shareholders'<br>
  <u>Equity</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2001.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>66,176&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>288,219&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>8,703&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(51,431)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4,126)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>370,066&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,595&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,595&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  13,108&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  13,108&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;(397)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;(397)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>12,711&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;12,711&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&#8209;0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,595&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>12,711&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>31,306&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(17,612)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(17,612)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(316)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(316)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(607)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;4,145&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;3,538&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at June 30, 2002........... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>62,525&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>65,253&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>289,202&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>21,414&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(47,286)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(3,590)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>387,518&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  December 31, 2002.......... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>62,525&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>64,885&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>296,165&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,851&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(44,981)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(3,055)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>401,390&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;Comprehensive
  income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Net
  income....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Other
  comprehensive income, net of tax:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Unrealized
  holding gains on securities<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;arising during the period..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  3,772&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>
  -0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier><br>&nbsp;3,772&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Less:&nbsp; reclassification adjustment for<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;gains on securities included in net income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  (3,522)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier><br>
  &nbsp;(3,522)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>&nbsp;&nbsp;Total
  other comprehensive income. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Total
  comprehensive income......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&#8209;0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>250&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,981&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Cash
  dividends declared............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,301)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,301)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Decrease
  in unearned ESOP shares... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Discount
  on dividend reinvestment plan purchases</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Treasury
  stock reissued............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;(190)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;1,380&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;-0-&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;1,190&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1
  face=Courier>Balance
  at June 30, 2003........... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>62,525&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>64,361&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>304,595&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>26,101&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(43,601)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(2,519)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>411,462&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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



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



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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td colspan=3 valign=top>
  <p align=center><font
  size=1 face=Courier>For
  the 6 Months<br>
  <u>Ended June 30,</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font
  size=1 face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Operating Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net income............................................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>18,595&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Adjustments to
  reconcile net income to net cash provided by operating<br>
  &nbsp;&nbsp;&nbsp;&nbsp;activities:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Provision
  for credit losses&nbsp;........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>6,925&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>5,925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
  and amortization.......................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,632&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,759&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  losses (gains) on sales of assets.................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(5,543)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(663)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Income
  from increase in cash surrender value of bank owned life insurance</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,098)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,242)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest receivable........................ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>730&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>654&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Decrease
  in interest payable........................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(922)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,066)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Increase
  (decrease) in income taxes payable............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>841&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(1,869)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Change
  in deferred taxes............................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(2,325)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(663)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Other-net.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(2,124)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;728&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by operating activities..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>25,847&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>22,158&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Investing Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities held to maturity:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>70,117&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>43,977&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(15,241)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Transactions
  with securities available for sale:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from sales.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>49,913&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,237&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Proceeds
  from maturities and redemptions............... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>510,136&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>215,851&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Purchases.............................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(907,343)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(206,211)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sales of loans and other assets............ </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>65,964&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>48,401&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Acquisition of
  affiliate, net of cash received........... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(4)
  </font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Investment in
  bank owned life insurance.................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>-0-</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(5,000)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net decrease in
  time deposits with banks................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>736&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>3,506&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  loans.................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(84,781)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(99,506)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Purchases of
  premises and equipment...................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;(2,693)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;(3,300)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by investing activities..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(297,951)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(7,290)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><b><font size=1
  face=Courier>Financing Activities</font></b></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Repayments of
  other long-term debt....................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(10,991)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;(681)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  issuance of other long-term debt........... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,000&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;18,200&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Discount on
  dividend reinvestment plan purchases......... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(334)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(316)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Dividends paid........................................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(18,284)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>&nbsp;(17,564)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase
  (decrease) in Federal funds purchased....... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(9,800)</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(81,900)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase
  (decrease) in other short-term borrowings... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>134,944&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(40,188)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Net increase in
  deposits................................. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>175,685&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>90,484&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Proceeds from
  sale of treasury stock..................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;988&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;&nbsp;2,726&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  cash provided (used) by financing activities..... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;282,208&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>(29,239)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  increase (decrease) in cash and cash equivalents. </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>10,104&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>(14,371)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at January 1................... </font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;81,114&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;98,130&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Cash and cash
  equivalents at June 30..................... </font></p>
  </td>
  <td valign=top>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;91,218&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font
  size=1 face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font
  size=1 face=Courier>&nbsp;83,759&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Cash
  paid during the first six months of the year for:</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Interest</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier>52,138&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>66,491&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Income
  Taxes</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier>8,230&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,260&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Noncash
  investing and financing activities:</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td width=24 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=89 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;ESOP
  loan reductions</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier>536&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>536&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  transferred to other real estate owned and<br>
  &nbsp;&nbsp;&nbsp;&nbsp;repossessed assets</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  2,210&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  3,599&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=516 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Gross
  increase in market value adjustment&nbsp;to<br>
  &nbsp;&nbsp;&nbsp;&nbsp;securities available for sale</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  385&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  19,556&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=516 valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Treasury
  stock reissued for business combination</font></p>
  </td>
  <td width=24 valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td width=89 valign=bottom>
  <p align=right><font size=3
  face=Courier>-0-&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>812&nbsp;</font></p>
  </td>
 </tr>
</table>

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=252 colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2003</font></u></p>
  </td>
  <td width=251 colspan=6 valign=top>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<u><br>
  Benefit</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier><br>
  Pre-tax<br>
  <u>Amount</u></font></p>
  </td>
  <td width=84 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Tax<br>
  (Expense)<br>
  <u>Benefit</u></font></p>
  </td>
  <td width=83 colspan=2 valign=top>
  <p align=center><font size=1
  face=Courier>Net of<br>
  Tax<br>
  <u>Amount</u></font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=68 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=16 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=67 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Unrealized gains (losses) on securities:</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Unrealized holding gains<br>
  &nbsp;&nbsp;(losses) arising during<br>
  &nbsp;&nbsp;the period</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>5,803&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(2,031)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>3,772&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>20,166&nbsp;</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier>(7,058)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  &nbsp;$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><font size=1
  face=Courier>13,108&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Less: reclassification<br>
  &nbsp;&nbsp;adjustment for gains <br>
  &nbsp;&nbsp;realized<br>
  &nbsp;&nbsp;in net income</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier><br><br></font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>(5,418)</u></font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>&nbsp;1,896&nbsp;</u></font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  (3,522)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><font size=1
  face=Courier><br>
  <u>&nbsp;&nbsp;(610)</u></font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  &nbsp;&nbsp;&nbsp;&nbsp;213&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier><br>
  &nbsp;&nbsp;(397)</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>&nbsp;Net unrealized gains (losses)</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;385&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(135)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>19,556&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(6,845)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>12,711&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=231 valign=bottom>
  <p><font size=1 face=Courier>Other comprehensive income</font></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;385&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;(135)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;250&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>19,556&nbsp;</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=68 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>(6,845)</font></u></p>
  </td>
  <td width=16 valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td width=67 valign=bottom>
  <p align=right><u><font size=1
  face=Courier>12,711&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<u>NOTE 4 Accounting for Stock Options Granted</u><br>
<br>
In December 2002, the Financial Accounting Standards Board (&quot;FASB&quot;)
issued Statement No. 148, &quot;Accounting for Stock-Based
Compensation-Transition and Disclosure&quot; (&quot;FAS No. 148&quot;).&nbsp; FAS No. 148 amended FASB Statement No. 123
&quot;Accounting for Stock-Based Compensation&quot; (&quot;FAS No. 123&quot;)
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.&nbsp; FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, &quot;Interim Financial
Reporting&quot; (&quot;APB 28&quot;), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.&nbsp; FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 &quot;Accounting for Stock Issued to
Employees&quot; (&quot;APB 25&quot;).&nbsp;
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.&nbsp; Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.<br>
<br>
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.&nbsp; As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.&nbsp; No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.<br>
8</font></p>

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>(Dollar
  amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>Three months ended<br>
  June 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13,427&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>10,957&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Deduct:
  Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(338)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(569)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Pro
  forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>13,089&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>10,388&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Earnings
  per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.19&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.23&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.19&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.22&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.18&nbsp;</font></u></p>
  </td>
 </tr>
</table>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>(Dollar
  amounts in thousands,<br>
  &nbsp;&nbsp;except per share data)</font></p>
  </td>
  <td colspan=4 valign=top>
  <p align=center><font size=3
  face=Courier>Six months ended<br>
  June 30,</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  Income, as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>26,731&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>18,595&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Deduct:
  Total stock-based employee compensation<br>
  &nbsp;expense determined under fair value based method<br>
  &nbsp;for&nbsp;all awards, net of related tax effects</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>&nbsp;&nbsp;(676)</u></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br><br></font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  <br>
  <u>(1,139)</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Pro
  forma net income</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>26,055&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>17,456&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Earnings
  per share:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.46&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.32&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Basic
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.44&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.30&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - as reported</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.45&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.32&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Diluted
  - pro forma</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.44&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;0.30&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<u>Note 5 Restructuring Charges</u><br>
<br>
The Corporation incurred restructuring charges of $6,140 thousand during the second,
third and fourth quarters of 2002 in accordance with EITF 94-3.&nbsp; These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.&nbsp; The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.&nbsp; Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies.&nbsp;
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.<br>
9</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>Note 5 Restructuring Charges</u> (continued)<br>
<br>
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.&nbsp; During the first half of 2003, monthly
severance payments totaling $1,786 thousand were made, reducing the outstanding
severance liability to $1,603 thousand at June 30, 2003.&nbsp; No additional severance accruals or
adjustments were recorded during the first half of 2003 related to the 2002
restructuring. <br>
<br>
<u>NOTE 6 New Accounting Pronouncements</u> <br>
<br>
In July 2002, the FASB issued statement No. 146, &quot;Accounting for Costs
Associated with Exit or Disposal Activities&quot; (&quot;FAS No.
146&quot;).&nbsp; FAS No. 146 replaced EITF
Issue No. 94-3, &quot;Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring).&quot;&nbsp; The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.&nbsp; Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.&nbsp; Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations. <br>
<br>
In November 2002, the FASB issued FASB Interpretation No. 45 (&quot;FIN
45&quot;), &quot;Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others&quot;.&nbsp;
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee,
and the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.&nbsp; The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.&nbsp; This
interpretation expands the disclosures to be made by the guarantor in its
financial statements about its obligation under certain guarantees and requires
the guarantor to recognize a liability for the fair value of an obligation
assumed under a guarantee.&nbsp; FIN 45
clarifies the requirements of FASB Statement No. 5 (&quot;FAS No. 5&quot;)
&quot;Accounting for Contingencies&quot;, relating to guarantees.&nbsp; In general, FIN 45 applies to contracts or
indemnification agreements that contingently require the guarantor to make
payments to the guaranteed party based on changes in an underlying that is
related to an asset, liability, or equity security of the guaranteed party.&nbsp; Certain guarantee contracts are excluded
from both the disclosure and recognition requirements of this interpretation,
including, but not limited to, guarantees related to employee compensation,
residual value guarantees under capital lease arrangements, commercial letters
of credit, loan commitments, subordinated interests in special purpose entities
and guarantees of a company's own future performance.&nbsp; Other guarantees are subject to the disclosure requirements of
FIN 45 but not the recognition provisions and include, among others, a
guarantee accounted for as a derivative instrument under FAS No. 133, a
parent's guarantee of debt owed to a third party by its subsidiary or vice
versa and a guarantee which is</font></p>

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

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

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

<p><font size=3 face=Courier><br>
<u>NOTE 6 New Accounting Pronouncements</u> (continued)<br>
<br>
based on performance not price.&nbsp;
Guarantees that have been entered into by the Corporation are disclosed
in NOTE 7.&nbsp; The adoption of FIN 45 did
not have a material impact on the Corporation's financial condition or results
of operations.<br>
<br>
In January 2003, the FASB issued FASB Interpretation No. 46 (&quot;FIN
46&quot;), &quot;Consolidation of Variable Interest Entities&quot;, the
provisions of which became effective upon issuance.&nbsp; As defined by FIN 46 a variable interest entity (&quot;VIE&quot;)
is a corporation, partnership, trust or any other legal structure used for
business purposes that either (a) does not have equity</font></p>

<p><font size=3 face=Courier>investors
with voting rights or (b) has equity investors that do not provide sufficient
financial resources for the entity to support its activities.&nbsp; This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.&nbsp; Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur.&nbsp;
The Corporation has reviewed its current business interests in order to
determine the impact of FIN 46 and has determined that no additional business
interests require consolidation in the Corporation's financial statements.&nbsp; The adoption of FIN 46, therefore, did not
have any impact on the Corporation's financial condition or results of
operations.<br>
<br>
In April 2003, the FASB issued Statement No. 149 &quot;Amendment of Statement
133 on Derivative Instruments and Hedging Activities&quot; (&quot;FAS No.
149&quot;).&nbsp; FAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under
Statement 133.&nbsp; In particular, FAS No.
149 clarifies under what circumstances a contract with an initial net
investment meets the characteristic of a derivative and when a derivative
contains a financing component that warrants special reporting in the statement
of cash flows.&nbsp; This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.&nbsp; The adoption of FAS No. 149 is not expected to have a material
impact on the Corporation's financial condition or results of operations.<br><br></font></p>

<p><font size=3 face=Courier>In
May 2003, the FASB issued Statement No. 150 &quot;Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity&quot;(&quot;FAS No. 150&quot;).&nbsp;
FAS No. 150 represents the first phase of the FASB's broader project on
(1) distinguishing between liability and equity instruments and (2) accounting
for instruments that have characteristics of both liabilities and equity.&nbsp; This statement requires issuers to classify
as liabilities the following three types of freestanding financial instruments:
(1) mandatorily redeemable financial instruments, (2) obligations to repurchase
the issuer's equity shares by transferring assets and (3) certain obligations
to issue a variable number of shares.&nbsp; A
freestanding financial instrument is one that is entered into separately and
apart from any of the entity's other financial instruments or equity
transactions or is entered in conjunction with some other transaction but can
be legally detached and exercised on a separate basis.&nbsp; FAS No. 150 is relatively narrow in scope as
it specifies only that certain instruments must be classified as liabilities
but does not include additional guidance<br>
<br>
11</font></p>

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

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

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

<p><font size=3 face=Courier>on
the concept of what constitutes either a &quot;liability&quot; or
&quot;equity&quot;.&nbsp;&nbsp;&nbsp; Entities will
continue to apply existing guidance on determining the balance sheet
classification of instruments that do not specifically fall within the scope of
FAS No. 150.&nbsp; FAS No. 150 must be
applied immediately to financial instruments entered into or modified after May
31, 2003.&nbsp; For all other instruments
that exist, this statement goes into effect at the beginning of the first
interim period beginning after June 15, 2003.&nbsp;
Application to pre-existing instruments should be recognized as the
cumulative effect of a change in accounting principle.&nbsp; FAS No. 150 prohibits entities from
restating financial statements for earlier years presented.&nbsp; This statement generally does not require
substantial </font></p>

<p><font size=3 face=Courier>additional
disclosures in the notes to the financial statements beyond those required by
existing accounting standards.&nbsp; Adoption
of FAS No. 150 is not expected to have a material impact on the Corporation's
financial condition or results of operations.&nbsp;
<br><br></font></p>

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

<p><font size=3 face=Courier><br>
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.&nbsp; The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.&nbsp; In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.&nbsp; The table
below identifies the notional amounts of these guarantees at June 30,
2003:&nbsp; (Dollar amounts in thousands)<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Financial
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>23,870</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Performance
  standby letters of credit</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>6,474</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
The current notional amounts outstanding above include financial standby
letters of credit of $6,087 thousand and performance standby letters of credit
of $458 thousand issued during the first half of 2003.&nbsp; There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
12</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>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS<br>
June 30, 2003<br>
(Unaudited)</font></p>

<p><font size=3 face=Courier><br>
<u>NOTE 8 Subsequent Event-Branch Sale<br>
</u><br>
On July 17, 2003 First Commonwealth Bank, a wholly-owned subsidiary of the
registrant agreed to sell two of its branch offices to Waypoint Bank.&nbsp; Waypoint Bank is a $5.6 billion federally
chartered thrift with 59 branches located throughout Pennsylvania and Maryland.&nbsp; Under the terms of the purchase and
assumption agreement, Waypoint will acquire First Commonwealth Bank branches at
15 South Main Street in Chambersburg, PA and 1720 Lincoln Highway East in
Guilford Township, PA.&nbsp; Waypoint will
assume approximately $30 million of deposit liabilities and purchase $5 million
in loans associated with the two offices.&nbsp;
The transaction is subject to the approval of the Office of Thrift
Supervision and is expected to settle in the third quarter of 2003.&nbsp; The transaction is expected to generate a
pre-tax gain of approximately $3.0 million which will be included in the
registrant's financial results for the third quarter of 2003.<br>
<br>
<u>Note 9 Subsequent Event-Pending Business Combination<br>
<br>
</u>On August 8, the registrant entered into a definitive agreement to acquire
Pittsburgh Financial Corp. (&quot;PFC&quot;) a financial holding company
headquartered near Pittsburgh, in Wexford Pennsylvania.&nbsp; Pittsburgh Financial Corp. is the parent
company of BankPittsburgh with total assets of $376 million, deposits of $182
million and equity of nearly $23 million at June 30, 2003.&nbsp; BankPittsburgh is a state chartered stock
savings bank headquartered in Pittsburgh, Pennsylvania which conducts business
from seven offices in Allegheny (6) and Butler (1) counties and one loan
production office in downtown Pittsburgh.&nbsp;
PFC also offers residential and commercial mortgage settlement services
through Pinnacle Settlement Group LLC, an 80% owned subsidiary.&nbsp; Pittsburgh Financial Corp. shares are traded
on the NASDAQ National Market System under the symbol &quot;PHFC&quot;.<br>
<br>
Under terms of the agreement, the shareholders of Pittsburgh Financial Corp.
can elect to receive $20.00 in cash or an equivalent value of the registrant's
common stock for each PFC share owned, subject to proration as provided in the
definitive agreement to ensure that 40% of the aggregate merger consideration
will be paid in cash and 60% in First Commonwealth common stock.&nbsp; The transaction is subject to all required
regulatory approvals and the approval of PFC shareholders.&nbsp; The definitive agreement was unanimously
approved by the Boards of Directors of both organizations.&nbsp; The transaction has a current market value
of $28.4 million and is expected to be completed by the end of 2003.<br>
<br>
On a pro-forma basis, as of June 30, 2003, the registrant would have assets of
approximately $5.2 billion, total equity of $424 million and market
capitalization of $765 million. <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
13</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
<br>
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the &quot;Corporation&quot;).&nbsp;
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and
expectations based on information currently available and may contain the words
&quot;expect,&quot; &quot;estimate,&quot; &quot;project,&quot;
&quot;anticipate,&quot; &quot;should,&quot; &quot;intend,&quot;
&quot;probability,&quot; &quot;risk,&quot; &quot;target,&quot; and similar expressions.&nbsp; These forward-looking statements are
inherently subject to significant risks and uncertainties, including but not
limited to:&nbsp; changes in general economic
and financial market conditions, the Corporation's ability to effectively carry
out its business plans, changes in regulatory or legislative requirements,
changes in competitive conditions and continuing consolidation of the financial
services industry.&nbsp; Although management
believes the expectations reflected in such forward-looking statements are
reasonable, actual results could differ materially.&nbsp; Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof.&nbsp; The Corporation undertakes
no obligation to publicly revise or update these forward-looking statements to
reflect events or circumstances that arise after the date hereof.</font></p>

<p><font size=3 face=Courier><br>
Net income for the first six months of 2003 was $26.7 million reflecting an
increase of $8.1 million compared to 2002 results of $18.6 million.&nbsp; The change in net income for the 2003 period
reflected decreases in non-interest expenses primarily related to nonrecurring
expenses included in the 2002 period and an increase in security gains for the
2003 period compared to the corresponding period of 2002.&nbsp; Net income for the 2002 period included an
$8.0 million litigation settlement ($5.2 million net of tax) while the 2003
period includes a partial recovery from insurance for that claim in the amount
of $610 thousand ($397 thousand net of tax).&nbsp;
This settlement related to a lender liability action filed in 1994
against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.&nbsp; The 2002 period also included $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 were eliminated or chose not
to relocate as a result of the merger of the two banks which was completed in
the fourth quarter of 2002.&nbsp; The first
half of 2003 includes securities gains of $5.5 million ($3.5 million net of
tax) compared to securities gains of $615 thousand ($400 thousand net of tax)
for the first half of 2002.&nbsp; The first
six months of 2003 also includes decreases in net interest income which
continues to be impacted by low interest rates.&nbsp; During this unparalleled period of low interest rates the
Corporation, as well as the financial services industry in general, has been
challenged by margin compression as the cost of funds has not declined in the
same magnitude or at the same pace as asset yields.&nbsp;&nbsp; </font></p>

<p><font size=3 face=Courier><br>
<br>
14<br clear=all>
</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>
AND RESULTS OF OPERATIONS </font></p>

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

<p><font size=3 face=Courier>RESULTS
OF OPERATIONS (continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002 </b>(continued)<br>
<br>
The decrease in net interest income has been partially offset by increases in
non-interest income for the first half of 2003 compared to the first half of
2002.&nbsp; Diluted earnings per share was
$0.45 for the first six months of 2003 compared to $0.32 for the first six
months of 2002.&nbsp; <br>
<br>
The following is an analysis of the impact of changes in net income on diluted
earnings per share:<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share, prior year</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.32&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Increase
  (decrease) from changes in:</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.07)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Provision
  for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.02)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Security
  transactions</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.08&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Service
  charges on deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.01&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Other
  income</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.01&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Salaries
  and employee benefits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.02)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Net
  occupancy expense</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>(0.01)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Litigation
  settlement</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.15&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Restructuring
  charges</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.05&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Other
  operating expenses</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>0.02&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;Applicable
  income taxes</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>(0.07)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  income per share</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;0.45&nbsp;</font></u></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
Return on average assets was 1.17% and return on average equity was 13.07% for
the first six months of 2003 compared to 0.82% and 9.77%, respectively, for the
first six months of 2002.<br>
<br>
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.&nbsp; Net interest income
declined $3.7 million for the first half of 2003 compared to the first half of
2002, primarily as earning asset yields declined faster than funding costs.&nbsp; Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) was 3.63%
for the six months of 2003 compared to 3.79% for the six months of 2002.&nbsp; Continued low or declining interest rates
would tend to further strain net interest income due to low reinvestment rates
and accelerated prepayments of certain loans and investments.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
15</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td colspan=7 valign=top>
  <p><font size=3 face=Courier>Analysis
  of Changes in Net Interest Income<br>
  (dollar amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=6 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003 Change From 2002<br><br></font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Total<br>
  <u>Change</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<u><br>
  To Volume</u></font></p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><font size=3
  face=Courier>Change Due<br>
  <u>To Rate</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-earning
  assets:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Time
  deposits with banks</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(10)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(7)</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Securities</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(9,891)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(762)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(9,129)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Federal
  funds sold</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>-0-</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(2)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(6,995)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;399&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(7,394)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(16,898)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;(370)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(16,528)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Interest-bearing
  liabilities:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Deposits</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(10,345)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(3)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(10,342)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Short-term
  borrowings</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(117)</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>968&nbsp;</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>(1,085)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Long-term
  debt</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(2,748)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(2,720)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;(28)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  interest expense</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(13,210)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(1,755)</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>(11,455)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
  interest income</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(3,688)</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,385&nbsp;</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;(5,073)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Interest
and fees on loans declined $7.0 million for the first six months of 2003
compared to 2002 levels as loan yields declined in the lower interest rate
environment.&nbsp; The total yield on loans
for the first half of 2003 was 6.60%, compared to loan yields of 7.23% for the
first half of 2002.&nbsp; Average loans for
the first six months of 2003 rose $55.2 million compared to averages for the
first six months of 2002 as increases in commercial loans, municipal loans and
indirect installment loans were partially offset by decreases in average
mortgage loans. &nbsp;The Corporation<br>
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration (&quot;SBA&quot;) lender status.&nbsp; The Corporation was one of the top small
business lenders in Pennsylvania during the past two years.&nbsp; The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.&nbsp; Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.&nbsp; The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.&nbsp; The Corporation has begun to retain fixed rate mortgages with
maturities of 15 years or less and all adjustable rate mortgages.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
16<br><br></font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Interest income on investments declined $9.9 million for the first half of 2003
compared to the first half of 2002 reflecting decreases due to interest rates
of $9.1 million combined with decreases due to investment volumes of $762
thousand.&nbsp; Total yield on investments
was 5.02% for the first six months of 2003 compared to 6.11% for the same
period of 2002.&nbsp; Declines in interest
income due to rate for U.S. government agency securities were $7.9 million as
yields on U.S. government agency securities decreased 142 basis points (1.42%)
for the 2003 period compared to the corresponding period of 2002.&nbsp; Average investments for the first half of
2003 included decreases in average asset backed securities of $74.9 million
which were partially offset by increases in average U.S. government agency
securities and average municipal investments compared to 2002 averages.<br>
<br>
Interest on deposits dropped $10.3 million for the 2003 period compared to 2002
primarily due to decreases in interest expense due to interest rates.&nbsp; Deposit costs were 2.05% for the first six
months of 2003 compared to 2.72% for the first six months of 2002.&nbsp; The rate on savings deposits fell 47 basis
points (0.47%) resulting in a decrease to interest expense of $2.6 million for
the first six months of 2003 compared to the first six months of 2002.&nbsp; The rate on time deposits for 2003 also
declined, down 90 basis points (0.90%) compared to 2002 levels, resulting in a
decrease to interest expense of $7.7 million for the first six months of
2003.&nbsp; The Corporation's deposit mix
also changed for the first half of 2003 as clients registered a preference for
savings deposits during continuing economic uncertainties.&nbsp; Average savings deposits increased $75.4
million for 2003 compared to 2002 averages while average time deposits dropped
$49.3 million over the same time frame.&nbsp;
During its management of deposit levels and mix the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.</font></p>

<p><font size=3 face=Courier><br>
Interest expense on short-term borrowings decreased $117 thousand for the six
months of 2003 compared to the six months of 2002 as decreases in interest
expense due to rate of $1.1 million were, for the most part, offset by
increases in interest expense due to volume of $968 thousand compared to 2002
levels.&nbsp; The cost of short-term
borrowings for the 2003 period decreased by 50 basis points (0.50%) compared to
2002 costs of 1.86%. The average balance of short-term borrowings for the first
six months of 2003 increased by $109.2 million over averages for the prior
year.&nbsp; The increase in short-term
borrowings can mainly be attributed to $100 million of long-term debt that
matured during the fourth quarter of 2002 and was replaced with short-term
borrowings.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
17</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Interest expense on long-term debt decreased $2.7 million for the first six
months of 2003 compared to the corresponding period of 2002, primarily as a
result of volume decreases.&nbsp; Average
long-term debt for the six months of 2003 decreased by $96.4 million compared
to 2002 averages.<br>
<br>
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.&nbsp; The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.&nbsp; The provision for credit losses was $6.9
million for the six months of 2003 compared to $5.9 million for the six months
of 2002.&nbsp; Net charge-offs against the
allowance for credit losses were $5.8 million for both the 2003 and 2002
periods.&nbsp; Net charge-offs as a percent
of average loans outstanding were also comparable for the first half of 2003
and the first half of 2002 representing 0.22% of average loans for both
periods.&nbsp; The provision for credit
losses as a percent of net charge-offs was 119.05% at June 30, 2003 compared to
102.85% at December 31, 2002 and 102.51% at June 30, 2002.&nbsp; Management continues to gather additional
data related to its loan portfolio to make sure material trends and factors are
considered in management's evaluation of the adequacy of the allowance for
credit losses.&nbsp; See the &quot;Credit
Review&quot; section for any analysis of the quality of the loan portfolio.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
18<br><br></font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2003 and 2002:<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=top>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=top>
  <p align=right><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=top>
  <p align=right><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  January 1,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,496</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>34,157</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Loans
  charged off:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,112</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,972</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>378</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>3</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>467</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>351</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,040</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>863</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>1,685</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>2,187</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;191</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;236</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  loans charged off</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,873</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,612</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Recoveries
  of previously charged off loans:</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Commercial,
  financial and agricultural</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>712</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>505</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-construction</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-commercial</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>0</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Real
  estate-residential</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>10</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>11</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  to individuals</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>334</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>311</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Lease
  financing receivables</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  recoveries</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;1,056</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;832</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Net
  charge offs</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,817</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,780</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Provision
  charged to operations</font></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;6,925</font></u></p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>&nbsp;5,925</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Balance
  June 30,</font></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>35,604</font></u></p>
  </td>
  <td valign=top>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=top>
  <p align=right><u><font size=3
  face=Courier>34,302</font></u></p>
  </td>
 </tr>
</table>

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

<p><font size=3 face=Courier>Net
securities gains were $5.5 million during the first six months of 2003 compared
to $615 thousand for the first six months of 2002.&nbsp; Securities gains during the 2003 period resulted primarily from
the sale of fixed rate corporate bonds classified as securities &quot;available
for sale&quot; with book values of $34.5 million and Pennsylvania bank stocks
with book values of $6.7 million.&nbsp; The
corporate bonds sold during 2003 had an average remaining life of one year and
the proceeds were reinvested in adjustable rate trust preferred securities with
maturities of 30 years and mortgage backed securities with an average life of
3.6 years.&nbsp; This reinvestment strategy
was initiated to partially mitigate the Corporation's exposure to low and
declining interest rates.&nbsp; Securities gains
during the 2002 period resulted primarily from the sale of Pennsylvania bank
stocks, U.S. treasury securities and fixed rate corporate bonds classified as
securities &quot;available for sale&quot;. <br>
<br>
<br>
<br>
19<br><br></font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>&nbsp;<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Trust income was relatively stable for the first half of 2003 compared to the
first half of 2002.&nbsp; Although fee
revenue continues to be negatively impacted by low market values, the enhanced
referral programs and integrated growth plans for financial affiliates that
have been initiated have helped to offset this trend.&nbsp; The Corporation's continued success in building relationships
with commercial clients provides fee based affiliates with additional sales
opportunities through the &quot;Total Solutions Financial Management&quot;
(&quot;TSFM&quot;) process.&nbsp; This
strategy combines products, services and professional staff from the
Corporation's trust, insurance, financial advisory and banking affiliates and
partners them in providing comprehensive financial services offerings.<br>
<br>
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $665 thousand for the first six months of
2003 compared to the corresponding period of 2002.&nbsp; Increases in insufficient funds fees &quot;NSF&quot; of $960
thousand for the first half of 2003 were partially offset by decreases in
selected fees related to certain transaction accounts compared to 2002
levels.&nbsp; Management strives to implement
reasonable fees for services and closely monitors collection of those fees.<br>
<br>
Insurance commissions fell $162 thousand for the 2003 period as decreases in
annuity and credit insurance revenues were larger than the increases that were
generated in all other insurance categories.&nbsp;
As part of the previously discussed TSFM process, the Corporation's
insurance subsidiary will continue to have expanded opportunities to meet the
insurance needs of commercial clients.&nbsp;
In addition, the Corporation has developed &quot;FOCUS&quot; a financial
planning tool designed to help clients prioritize and assess their financial
needs.&nbsp; The &quot;FOCUS&quot; concept
results in a systematic approach covering a wide range of personal financial
goals including appropriate insurance coverage.<br>
<br>
Other income for the first six months of 2003 rose $830 thousand from the $5.7
million reported for the first six months of 2002.&nbsp; Other income for the first half of 2003 included increases in
STAR interchange fees, merchant discount and income from the increase in cash
surrender value of split dollar life insurance of $600 thousand, $430 thousand
and $160 thousand, respectively, versus 2002 results.&nbsp; Gains on the sale of residential mortgage loans including the
sale of the related servicing rights increased by $182 thousand for the six
months of 2003 compared to 2002 gains. Other income for the 2003 period
included decreases in debit card interchange fees and gains on sale of
foreclosed property.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
20</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Noninterest expense was $56.2 million for the six months of 2003 reflecting a
decrease of $10.9 million from the 2002 level of $67.1 million, primarily
reflecting the effects of the previously mentioned litigation settlement and
restructuring charges included in 2002 costs.&nbsp;
The 2002 period includes the $8.0 million litigation charge while the
2003 period includes a $610 thousand recovery from insurance coverage related
to the settlement.&nbsp; The 2002 period also
includes a $3.1 million restructuring charge related to employee separation pay
and costs related to merging the Corporation's two subsidiary banks into one
charter. Employee costs were $30.5 million for the first six months of 2003,
representing an increase of $1.1 million&nbsp;
over 2002 levels.&nbsp; Salary costs
for the first half of 2003 increased $340 thousand or 1.5% compared to 2002
levels of $22.7 million.&nbsp; Salary costs
for 2003 include on-going savings resulting from the merger of the
Corporation's banking subsidiaries under one charter and the consolidation of
support functions which caused some staff positions to be eliminated during
2002.&nbsp; These staffing reductions were
part of the corporate restructuring initiative which also provided severance
benefits to affected employees.&nbsp;
Severance costs were expensed as incurred during 2002 while monthly cash
payments for some individuals continue during 2003.&nbsp; Employee benefit costs rose $731 thousand or 10.9% for the first
half of 2003 with the largest increase being hospitalization costs, which were
up $542 thousand or 22.8%.&nbsp; The
Corporation continues to evaluate its current menu of employee benefits to provide
a competitive benefits package while also managing costs.&nbsp; Current benefit options include coverages
fully paid for by the employer, as well as voluntary benefits whereby employees
have the option of purchasing additional benefits at reduced group rates.<br>
<br>
Net occupancy expense increased $446 thousand for the first half of 2003 and
included increases in building repairs and maintenance, utilities and net
rental expense compared to 2002 costs.&nbsp;
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.&nbsp; The Corporation is actively evaluating its branch delivery
network to optimize client service in existing branches and to continue
expansion into growth markets.&nbsp; The
execution of these initiatives may impact occupancy and other expenses in
future periods.&nbsp; <br>
<br>
Amortization of core deposit intangibles declined by $175 thousand for the
first half of 2003 compared to 2002 amortization as amounts related to certain
acquisitions became fully amortized during 2002.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
21</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>First Six Months of 2003 as Compared to the
First Six Months of 2002</b><br>
(continued)<br>
<br>
Other operating expenses for the 2003 period were $14.1 million reflecting a
decrease of $1.0 million (6.7%) from the 2002 amount of $15.2 million.&nbsp; The first six months of 2003 included
decreases in loss on sale of assets (primarily leased vehicles), other
professional fees and telephone expenses of $171 thousand, $799 thousand and
$325 thousand, respectively compared to 2002 costs.&nbsp; Directors' fees for the 2003 period reflected decreases of $298
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002. Legal fees were also $201 thousand lower
in the first half of 2003 compared to the first half of 2002.&nbsp; These fees are being centrally managed to
maximize risk management as well as cost control. &nbsp;The first six months of 2003 included an increase in charge card
interchange charges of $368 thousand compared to the first six months of
2002.&nbsp; Advertising costs for 2003 reflected
increases of $230 thousand, primarily as a result of continued promotion of the
Corporation's brand and identity launched during the fourth quarter of 2002, as
well as on-going marketing campaigns for free checking products.&nbsp; These free checking products are expected to
have a favorable impact on deposit costs and service charge revenue in future
periods, as well as providing potential add-on sales of other financial
products and services.&nbsp; <br>
<br>
Income tax expense increased $4.0 million for the first half of 2003 compared
to the first half of 2002.&nbsp; The 2002
period included a $2.8 million tax effect related to the $8.0 million
litigation settlement recorded during 2002 as well as a $1.1 million tax effect
related to the 2002 restructuring charges.&nbsp;
The Corporation's effective tax rate was 20.2% for the first six months
of 2003 compared to 12.8% for the corresponding period of 2002.<br>
<br>
<b>Three Months Ended June 30, 2003 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2002<br></b><br>
Net income was $13.4 million for the second quarter of 2003 an increase of $2.5
million compared to 2002 results of $10.9 million. The change in net income for
the 2003 period reflected decreases in non-interest expenses primarily related
to nonrecurring expenses included in the 2002 period and an increase in
security gains for the 2003 period compared to the corresponding period of
2002.&nbsp; Restructuring charges of $3.1
million ($2.0 million net of tax) were included in results of operations for
the second quarter of 2002. The three months of 2003 included securities gains
of $3.2 million ($2.1 million net of tax) compared to securities gains of $576
thousand ($374 thousand net of tax) for the three months of 2002.&nbsp; Net interest income for the second quarter
of 2003 reflected a decrease compared to the amount reported for the three months
of 2002. The decrease in net interest income has been partially offset by
increases in non-interest income for the 2003 quarter compared to the 2002
quarter.&nbsp; Basic<br>
and diluted earnings per share were $0.23 for the second quarter of 2003
compared to $0.19 for the second quarter of 2002.&nbsp; Return on average assets was 1.15% and return on average equity
was 12.99% for the second quarter of 2003 compared to 0.96% and 11.43%,
respectively, for the second quarter of 2002.<br>
<br>
22</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS (continued)<br>
<br>
<b>Three Months Ended June 30, 2003 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2002 </b>(continued)<b><br></b><br>
Net interest income for the second quarter of 2003 of $35.4 million represented
a decrease of $2.5 million compared to the second quarter of 2002.&nbsp; Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2003
period was 3.49% reflecting a decrease of 28 basis points (0.28%) from 3.77%
reported in 2002 as asset yields declined more than the cost of funds.&nbsp; <br>&nbsp;<br>
Interest and fees on loans for the three months ended June 30, 2003 decreased
$3.7 million compared to the three months ended June 30, 2002, 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 2003 was 6.51% representing a decrease of 65 basis points
(0.65%)compared to yields for the second quarter of 2002.&nbsp; Declines in interest and fees on loans due
to rate for the second quarter of 2003 compared to the second quarter of 2002
were partially offset by increases in interest income due to volume for commercial
loans.&nbsp; Average loans for the second
quarter of 2003 increased $46.3 million compared to averages for the second
quarter of 2002 and included increases in commercial loans, municipal loans and
home equity loans which were partially offset by deceases in average
residential mortgage loans. <br>
<br>
Interest income on investments for the three months ended June 30, 2003 was
$19.7 million, reflecting a decrease of $5.0 million compared to the three
months ended June 30, 2002.&nbsp; Total yield
on investments was 4.77% for the second quarter of 2003 compared to 6.09% for
the second quarter of 2002.&nbsp; Changes in
investment income due to rate totaled $5.7 million for the 2003 period as
overall interest rates were lower than in the prior year.&nbsp; Rate decreases during 2003 were slightly
offset by volume increases, most notably, volume increases for U.S. government
agency securities and municipal investments. Average investments increased by
$63.8 million for the second quarter of 2003 compared to averages for the
second quarter of 2002.&nbsp; <br>
<br>
Interest on deposits dropped $4.8 million for the three months ended June 30,
2003 compared to the three months ended June 30, 2002 as both rates and volumes
declined for the 2003 period.&nbsp; Interest
expense on savings reflected decreases due to rate of $1.3 million for the 2003
period as savings costs fell from 1.21% in 2002 to 0.76% in 2003.&nbsp; Interest on time deposits reflected
decreases due to rate of $2.3 million and decreases due to volume of $1.4
million for the second quarter of 2003 compared to the second quarter of 2002. &nbsp;Average time deposits were $1,598.4 million
for 2003 compared to $1,626.4 million for the corresponding period of 2002. The
cost of time deposits was 3.43% for 2003 compared to 4.27% for 2002.&nbsp; <br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
23</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>Three Months Ended June 30, 2003 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2002</b>
(continued)<b><br></b>&nbsp;<br>
Interest expense on short-term borrowings rose for the second quarter of 2003
compared to the second quarter of 2002 as increases in interest expense due to
volume were offset by decreases in interest expense due to rate.&nbsp; Average short-term borrowings increased
$151.8 million for the second quarter of 2003 compared to 2002 averages, due in
part to $100 million of long-term debt maturing in the fourth quarter of 2002
which was rolled into short-term borrowings.&nbsp;
The largest portion of the additional increase in short-term borrowings
can primarily be attributed to the pre-investment strategy implemented during
the second quarter of 2003 which is described in the &quot;Interest
Sensitivity&quot; section of this report.&nbsp;
Interest expense on long-term debt for the three months ended June 30,
2003 fell $1.5 million from $9.7 million reported for the three months ended
June 30, 2002 primarily as a result of volume decreases.&nbsp; Average long-term debt was $102.7 million
lower in the second quarter of 2003 than averages for the second quarter of
2002.&nbsp; <br>&nbsp; <br>
The provision for credit losses was $3.5 million for the three months ended
June 30, 2003 compared to $3.0 million for the three months ended June 30,
2002.&nbsp; Net charge-offs for the second
quarter of 2003 were $3.2 million, an increase of $398 thousand from net
charge-offs for the second quarter of 2002.&nbsp;
Net charge-offs for the second quarter of 2003 included increases in net
charge-offs of residential mortgage loans of $1.3 million combined with decreases
in net charge-offs for most other loan categories.&nbsp;&nbsp; <br>
<br>
Net securities gains were $3.2 million for the second quarter of 2003 compared
to securities gains of $576 thousand for the second quarter of 2002.&nbsp; Securities gains during both the 2003 and
the 2002 periods resulted primarily from the sale of Pennsylvania bank
stocks.&nbsp; During the second quarter of
2003 Pennsylvania bank stocks with book values of $5.6 million were sold, while
bank stocks with book values of $1.1 million were sold during the second
quarter of 2002, generating gains of $3.2 million and $475 thousand,
respectively. <br>
<br>
Service charges on deposits increased by $509 thousand for the three months
ended June 30, 2003 compared to the three months ended June 30, 2002.&nbsp; This increase is due in part to increases in
insufficient funds fees &quot;NSF&quot; for the second quarter of 2003 compared
to 2002 levels.&nbsp; <br>
<br>
Other income for the second quarter of 2003 rose $389 thousand from the $3.1
million reported for the second quarter of 2002.&nbsp; Other income for the 2003 period included increases in STAR
interchange fees, merchant discount and income from the increase in cash
surrender value of split dollar life insurance of $214 thousand, $232 thousand
and $160 thousand, respectively, versus 2002 results.&nbsp; Other income for the 2003 period included decreases in debit card
interchange fees, and gains on sale of foreclosed property.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
24</font></p>

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

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

<p><font size=3 face=Courier><br>
RESULTS OF OPERATIONS(continued)<br>
<br>
<b>Three Months Ended June 30, 2003 as Compared
to the Three Months Ended<br>
June</b> <b>30, 2002</b>
(continued)<b><br></b>&nbsp;<br>
Total noninterest expense for the three months ended June 30, 2003 was $28.4
million reflecting a decrease of $3.2 million from the $31.6 million that was
reported for the corresponding period of 2002.&nbsp;
The decrease of 2003 resulted primarily from the previously discussed
restructuring charges of $3.1 million which were included in the 2002 period.&nbsp; Employee costs were $15.1 million for the
second quarter of 2003, representing an increase of $379 thousand over 2002
levels.&nbsp; Salary costs for the three
months of 2003 increased by less than 1% compared to 2002 levels.&nbsp; Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002.&nbsp;
Employee benefit costs rose $341 thousand or 10.3% for the second
quarter of 2003 with the largest increase being hospitalization costs, which
were up $285 thousand or 23.8% compared to 2002 levels.<br>
<br>
Net occupancy expense increased $158 thousand for the three months ended June
30, 2003 compared to the three months ended June 30, 2002, primarily as a
result of increases in building repairs and maintenance.&nbsp; Amortization of core deposit intangibles
declined by $62 thousand for the 2003 period as amounts related to certain
acquisitions became fully amortized during 2002.&nbsp; <br>
<br>
Other operating expenses for the 2003 quarter were $7.2 million reflecting a
decrease of $790 thousand from the 2002 amount of $8.0 million.&nbsp; The most notable decreases in other
operating expenses for the second quarter of 2003 compared to the second
quarter of 2002 occurred in directors fees, other professional fees and legal
fees which decreased by $179 thousand, $608 thousand and $101 thousand,
respectively.&nbsp; Other operating expenses
for the second quarter of 2003 were also positively impacted by reductions in
telephone costs of $165 thousand due in part to active management of both voice
and dataline expenses by the Corporation's data processing and technology
affiliate.&nbsp; The three months ended June
30, 2003 included increases in advertising, charge card interchange costs and
postage compared to the three months ended June 30, 2002.&nbsp;&nbsp;&nbsp; <br>
<br>
Income tax expense increased $1.1 million for the second quarter of 2003
compared to the second quarter of 2002 primarily as a result of increases in
income before taxes of $3.5 million over 2002 levels.&nbsp; Tax expense for 2002 included the $1.1 million tax effect related
to the 2002 restructuring charges.&nbsp; Tax
expense for the second quarter of 2003 was positively impacted by an increase
in tax-free municipal income compared to 2002 levels. &nbsp;The Corporation's effective tax rate was
20.0% for the second quarter of 2003 compared to 17.3% for the corresponding
period of 2002<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
25</font></p>

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

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

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

<p><font size=3 face=Courier><br>
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.&nbsp; In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans.&nbsp; As an additional secondary source,
short-term liquidity needs may be provided through the use of overnight Federal
funds purchased, borrowings through use of lines available for repurchase
agreements, and borrowings from the Federal Reserve Bank.&nbsp; Additionally, the banking subsidiary is a
member of the Federal Home Loan Bank and may borrow under overnight and term
borrowing arrangements.&nbsp; The sale of
earning assets may also provide an additional source of liquidity.&nbsp; In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.<br>
<br>
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources.&nbsp;
The Corporation maintains a liquidity management policy to manage this
risk.&nbsp; This policy identifies the
primary sources of liquidity, establishes procedures for</font></p>

<p><font size=3 face=Courier>monitoring
and measuring liquidity and quantifies minimum liquidity requirements which
comply with regulatory requirements.&nbsp;
The policy also includes a liquidity contingency plan to address funding
needs to maintain liquidity under a variety of business conditions.&nbsp; The Corporation's liquidity position is
monitored by the Asset/Liability Management Committee (&quot;ALCO&quot;).<br>
<br>
At June 30, 2003 total earning assets were $4,586.4 million, up from the $4,291.2
million recorded at December 31, 2002.&nbsp;
Net loans increased $11.8 million for the first six months of 2003 as
commercial loans increased by $48.4 million and municipal loans increased by
$12.1 million compared to year-end 2002, while loans to individuals increased
by $14.3 million over the same time frame.&nbsp;
The first six months of 2003 reflected decreases of $54.2 million in
residential real estate loans, due in part to the continued run-off of the
existing portfolio and sale of new loan production </font></p>

<p><font size=3 face=Courier>as
the Corporation continues to change its loan mix.&nbsp; The Corporation's auto lease portfolio also reflected decreases
of $9.7 million for the first six months of 2003 as focus shifts from indirect
leasing activities.&nbsp; Investment
securities increased $283.0 million for the first six months of 2003 due in
part to a $150 million pre-investment strategy that is described in the
&quot;Interest Sensitivity&quot; section of this report.<br>
<br>&nbsp;<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
26</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>LIQUIDITY</u> (continued)<u><br>
</u><br>
Total deposits increased $175.7 million for the first six months of 2003.&nbsp; This included increases in time deposits of
$72.9 million, total savings deposits of $83.5 million, and demand deposits of
$19.3 million compared to year-end 2002.&nbsp;
Included in time deposits for the first six months of 2003 were $100
million of brokered deposits with a weighted average term of 27 months.&nbsp; Proceeds from the issuance of brokered
deposits were utilized to pay down short-term borrowings during the first
quarter of 2003.&nbsp; Short-term borrowings
increased during the second quarter to $594.2 million compared to $469.1
million at December 31, 2002.&nbsp;
Short-term borrowings of $150 million were used to fund the previously
mentioned pre-investment strategy.<br>
<br>
Marketable securities that the Corporation holds in its investment portfolio
are an additional source of liquidity.&nbsp;
These securities are classified as &quot;securities available for
sale&quot; and while the Corporation does not have specific intentions to sell
these securities, they have been designated as &quot;available for sale&quot;
because they may be sold for the purpose of obtaining future liquidity, for
management of interest rate risk or as part of the implementation of tax
management strategies.&nbsp; As of June 30,
2003, securities available for sale had an amortized cost of $1,795.7 million
and an approximate fair value of $1,835.9 million.<br>
<br>
<b>Interest Sensitivity</b><br>
<br>
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.&nbsp; The
Corporation's market risk is composed primarily of interest rate risk.&nbsp; Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.<br>
<br>
The objective of interest rate sensitivity management is to maintain an
appropriate balance between the stable growth of income and the risks
associated with maximizing income through interest sensitivity imbalances.&nbsp; While no single number can accurately
describe the impact of changes in interest rates on net interest income,
interest rate sensitivity positions, or &quot;gaps&quot;, when measured over a
variety of time periods, may be helpful.<br>
<br>
An asset or liability is considered to be interest-sensitive if the rate it
yields or bears is subject to change within a predetermined time period.&nbsp; If interest-sensitive assets
(&quot;ISA&quot;) exceed interest-sensitive liabilities (&quot;ISL&quot;)
during the prescribed time period, a positive gap results.&nbsp; Conversely, when ISL exceed ISA during a
time period, a negative gap results.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
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>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></p>

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>
The cumulative gap at the 365 day repricing period was negative in the amount
of $271.8 million or 5.63% of total assets at June 30, 2003.&nbsp; A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period. &nbsp;A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.&nbsp; In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when
interest rates rise, a negative gap should tend to affect earnings negatively.<br>
<br>
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.&nbsp; The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.<br>
<br>
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of June 30,
2003, and December 31, 2002 (dollar amounts in thousands):<br>
<br><br></font></p>

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>June 30,
  2003</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,017,995&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>181,100&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>304,428&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,503,523&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>433,088&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>140,687&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>361,469&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>935,244&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,237&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,237&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,452,320&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>321,787&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>665,897&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,440,004&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Certificates of deposit</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>226,870&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>193,511&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>438,504&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>858,885&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,256,014&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,256,014&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;594,791&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;921&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;1,166&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;596,878&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,077,675&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>194,432&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>439,670&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,711,777&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(625,355)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>127,355&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>226,227&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(271,773)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.70&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.66&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.51&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.90&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>12.95%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>2.64%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>4.68%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>5.63%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
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>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></p>

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom><font size=3
  face=Courier><br clear=all>
  </font>
  <p></p>
  </td>
  <td colspan=8 valign=bottom>
  <p align=center><u><font size=1
  face=Courier>December
  31, 2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>0-90<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>91-180<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>181-365<br>
  <u>&nbsp;&nbsp;Days&nbsp;&nbsp;</u></font></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><font size=1
  face=Courier>Cumulative<br>
  <u>0-365 Days</u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>962,398&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>157,172&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>295,273&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,414,843&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Investments</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>292,206&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>162,578&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>262,287&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>717,071&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other interest-earning assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,973&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;0&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;1,973&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,256,577&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>319,750&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>557,560&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,133,887&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Certificates of deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>354,625&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>170,687&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>263,882&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>789,194&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Other deposits</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,172,538&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1,172,538&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Borrowings</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;469,735&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;905&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;1,483&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;&nbsp;472,123&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>&nbsp;&nbsp;Total interest-sensitive liabilities</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>1,996,898&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>171,592&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>265,365&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>2,433,855&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(740,321)</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>148,158&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>292,195&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=1
  face=Courier>&nbsp;(299,968)</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>ISA/ISL</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.63&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>1.86&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>2.10&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>0.88&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=1 face=Courier>Gap/Total assets</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>16.36%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>3.27%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>6.46%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=1
  face=Courier>6.63%</font></p>
  </td>
 </tr>
</table>

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

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

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

<p><font size=3 face=Courier><br>
<b>Interest Sensitivity</b> (continued)<br>
<br>&nbsp;<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 a 100 basis
point movement downward which cannot result in more than a 7.5% change or 5.0%
change, respectively, in net interest income when compared to the base case,
without Board approval and a strategy in place to reduce interest rate risk to
fall within established ranges.&nbsp; The
analysis at June 30, 2003 indicated that a 300 basis point (3.00%) increase in
interest rates would increase net interest income 405 basis points (4.05%)
above the base case scenario and a 100 basis point (1.00%) decline in interest
rates would decrease net interest income by 272 basis points (2.72%) below the
base case scenario, over the next twelve months, both within policy limits.<br>
<br>
The Corporation's &quot;Asset/Liability Management Committee&quot;
(&quot;ALCO&quot;) is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.&nbsp; The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.&nbsp; The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.&nbsp; The ALCO<br>
strategies are established by the Corporation's senior management.&nbsp; The ALCO continues to evaluate the use of
derivative instruments to protect against the risk of adverse price or interest
rate movements on the values<br>
of certain assets and liabilities.&nbsp;
Although no derivative instruments were utilized as of June 30, 2003,
the Corporation entered into an interest rate swap transaction in July
2003.&nbsp; The swap has a three-year maturity
and involves hedging adjustable LIBOR based commercial loans with a
receive-fixed interest rate swap of $25 million notional amount.<br>
<br>
To minimize its exposure to falling interest rates the Corporation implemented
a pre-investment strategy during the second quarter of 2003 whereby a portion
of the cash flows from securities expected to mature or repay within four to
six months were reinvested before their maturity or repayment dates by
utilizing $150 million of short-term borrowings as an interim funding
source.&nbsp; This strategy was implemented
to lock in current reinvestment rates to prevent further yield decreases as
interest rates continue to fall and should have an overall positive impact on
investment yields.<br>
<br>
<br>
<br>
<br>
<br>
<br>
<br>
30</font></p>

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

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>At June 30,</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><u><font size=3 face=Courier>Nonperforming
  Loans</font></u>:</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=top>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Loans
  on nonaccrual basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>20,810&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>25,705&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Past
  due loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>14,778&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>14,987&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;Renegotiated
  loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;201&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;828&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Total
  Nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;35,789&nbsp;</font></u></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><u><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;41,520&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Other
  real estate owned</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,714&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1,468&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Loans
  outstanding at end of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,621,569&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,612,965&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Average
  loans outstanding (year-to-date)</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,644,059&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>2,588,873&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Nonperforming
  loans as percent of total loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.37%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>1.59%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>6,925&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,925&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,817&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,780&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Net
  charge-offs as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.22%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  0.22%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Provision
  for credit losses as a percent of net charge-offs</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  119.05%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  102.51%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of average loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.35%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.32%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of end-of-period loans outstanding</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.36%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  1.31%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses as a percent of nonperforming loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  99.48%</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  82.62%</font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2003</font></u></p>
  </td>
  <td colspan=2 valign=bottom>
  <p align=center><u><font size=3
  face=Courier>2002</font></u></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td colspan=4 valign=bottom>
  <p align=center><font size=3
  face=Courier>(amounts in thousands)</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Recorded
  investment in impaired loans at end <br>
  &nbsp;of period</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>21,011</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>26,533</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date average balance of impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>22,262</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>25,078</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Allowance
  for credit losses related to <br>
  &nbsp;impaired loans</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,308</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>5,382</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with an allocation of the<br>
  &nbsp;allowance for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  15,318</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  15,312</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Impaired
  loans with no allocation of the&nbsp;allowance<br>
  &nbsp;for credit losses</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  5,693</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  11,221</font></p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=bottom>
  <p><font size=3 face=Courier>Year
  to date income recorded on impaired loans <br>
  &nbsp;on a cash basis</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  199</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  $</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier><br>
  188</font></p>
  </td>
 </tr>
</table>

<p><font size=3 face=Courier><br>
Other than those described above, there are no material credits that management
has serious doubts as to the borrower's ability to comply with the present loan
repayment terms.&nbsp; Additionally, the
portfolio is well diversified and as of June 30, 2003, there were no
significant concentrations of credit.<br>
<br>
Nonperforming loans at June 30, 2003 decreased $5.7 million compared to 2002
levels as nonaccrual loans, past due loans and renegotiated loans decreased
compared to June 30, 2002.&nbsp; The decrease
in nonaccrual loan levels of $4.9 million was primarily due to decreases in
nonaccrual commercial loans.&nbsp; Nonaccrual
loans include two significant credits in both periods.&nbsp; The largest credit ($6.1 million) carries an
80% guaranty of a U.S. government agency.&nbsp;
While a sale of the underlying assets is pending,<br>
<br>
<br>
32</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
delays with the bankruptcy court would result in a delay of the final sale and
resolution of the remaining balance.&nbsp;
The second credit which was $3.0 million at June 30, 2003, continues to
be resolved through the liquidation of collateral and exercising other remedies.&nbsp; While the timing of final resolution of this
credit is uncertain, management's estimate of the potential loss on this credit
is reserved.<br>
<br>
Past due loans for the 2003 period remained relatively stable to the
corresponding period of 2002 and included decreases in loans to individuals and
loans secured by 1-4 family residential real estate, which were offset by loans
secured by commercial real estate.&nbsp;
Renegotiated loans also fell, decreasing by $627 thousand for the 2003
period.&nbsp; Nonperforming loans as a
percent of total loans was 1.37% at June 30, 2003 compared to 1.47% at December
31, 2002, and 1.59% at June 30, 2002, while the allowance for credit losses as
a percent of nonperforming loans was 99.48%, 89.76% and 82.62%, respectively
for the same periods.<br>
<br>
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.&nbsp; This process
includes close monitoring of watchlist credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.&nbsp; Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.<br>
<br>
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date.&nbsp;
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.&nbsp; The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.&nbsp; These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.<br>
<br>
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits.&nbsp;
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss&nbsp; provisions may be necessary
due to changes in management estimates and assumptions about asset impairment,
information about borrowers that indicate changes in the expected future cash
flows or changes in economic conditions.&nbsp;
The allowance for credit losses and the provision for credit losses are
significant elements of the Corporation's financial statements, therefore
management periodically reviews the processes and procedures utilized in
determining the allowance for credit losses to identify<br>
<br>
<br>
<br>
<br>
33</font></p>

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

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

<p><font size=3 face=Courier><br>
<u>CREDIT REVIEW</u> (continued)<br>
<br>
potential enhancements to these processes, including development of additional
management information systems to ensure that all relevant factors are
appropriately considered in the allowance analysis.&nbsp; In addition, the Corporation maintains a system of internal
controls which are independently monitored and tested by internal audit and loan
review staff to ensure that the loss estimation model is maintained in
accordance with internal policies and procedures, as well as generally accepted
accounting principles. <br>
<br>
<u>CAPITAL RESOURCES</u><br>
<br>
Equity capital stood at $411.5 million at June 30, 2003, an increase of $10.1
million compared to December 31, 2002.&nbsp;
Dividends declared reduced equity by $18.3 million during the first six
months of 2003.&nbsp; The retained net income
of $8.4 million remained in permanent capital to fund future growth and
expansion.&nbsp; Payment by the Corporation's
Employee Stock Ownership Plan (&quot;ESOP&quot;) to reduce debt it incurred to
acquire the Corporation's common stock for future distribution as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $536 thousand.&nbsp; Amounts paid
to fund the discount on reinvested dividends reduced equity by $334 thousand
during the first six months of 2003.&nbsp;
The market value adjustment to securities available for sale increased
equity by $250 thousand for the period.&nbsp;
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $987 thousand during 2003.&nbsp; Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.&nbsp; This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.<br>
<br>
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.&nbsp; The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.&nbsp; In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.<br>
<br>
The Federal Reserve Board has issued risk-based capital adequacy guidelines
which are designed principally as a measure of credit risk.&nbsp; These guidelines require:&nbsp; (1) at least 50% of a banking organization's
total capital be common and other &quot;core&quot; equity capital (&quot;Tier I
Capital&quot;); (2) assets and off-balance-sheet items be weighted according to
risk; (3) the total capital to risk-weighted assets ratio be at least 8%; and
(4) a minimum leverage ratio of Tier I capital to average total assets.<br>
<br>
The minimum leverage ratio is not specifically defined, but is generally
expected to be 3-5 percent for all but the most highly rated banks, as
determined by a regulatory rating system.<br>
<br>
<br>
<br>
<br>
34</font></p>

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Amount<br>
  <u>(in thousands)<br><br></u></font></p>
  </td>
  <td valign=bottom>
  <p align=center>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=center><font size=3
  face=Courier>Percent of<br>
  <u>Adjusted Assets<br><br></u></font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Tier
  I Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>$&nbsp;&nbsp;412,203</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>12.6%</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>131,398</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>4.0&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Total
  Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>447,807</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>13.6&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Risk-Based
  Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>262,796</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.0&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Capital</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>412,203</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>8.8&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td valign=top>
  <p><font size=3 face=Courier>Minimum
  Leverage Requirement</font></p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>140,357</font></p>
  </td>
  <td valign=bottom>
  <p align=right>&nbsp;</p>
  </td>
  <td valign=bottom>
  <p align=right><font size=3
  face=Courier>3.0&nbsp;</font></p>
  </td>
 </tr>
</table>

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  1.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>LEGAL
  PROCEEDINGS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>There
  were no material legal proceedings to which the Corporation or its
  subsidiaries are a party, or of which any of their property is the subject,
  except proceedings which arise in the normal course of business and, in the
  opinion of management, will not have a material adverse effect on the
  consolidated operations or financial position of the Corporation and its
  subsidiaries.</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  2.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>CHANGES
  IN SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  3.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>DEFAULTS
  UPON SENIOR SECURITIES</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Not
  applicable</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  4.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>SUBMISSION
  OF MATTERS TO A VOTE OF SECURITY HOLDERS</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>On
  April 21, 2003, the Corporation held its regularly scheduled annual meeting
  of shareholders.&nbsp; The following
  proposal was considered and acted upon:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>The
  following directors were elected for terms to expire in 2006:</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes
  For&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes Withheld</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>James
  W.
  Newill&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,730,939&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;519,822</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>John
  A. Robertshaw,
  Jr.&nbsp;&nbsp;&nbsp;&nbsp;46,670,538&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;580,223</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>Laurie
  Stern
  Singer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;46,601,570&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;649,191</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  5.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>OTHER
  INFORMATION</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>The
  Corporation's Chief Executive Officer and Chief Financial Officer have
  furnished to the SEC the certification with respect to this Form 10-Q that is
  required by Section 906 of the Sarbanes-Oxley Act of 2002.</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p><font size=3 face=Courier>ITEM
  6.</font></p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>EXHIBITS
  AND REPORTS ON FORM 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(a)
  Exhibits</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  31.2 Chief Financial Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 302 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.1 Chief Executive Officer Certification pursuant<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to Section 906 of the Sarbanes-Oxley Act
  of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Exhibit
  32.2 Chief Financial Officer Certification pursuant<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to Section 906 of the
  Sarbanes-Oxley Act of 2002</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>(b)
  Reports on Form 8-K</font></p>
  </td>
 </tr>
 <tr>
  <td width=103 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=631 valign=top>
  <p><font size=3 face=Courier>&nbsp;&nbsp;&nbsp;&nbsp;Form
  8-K dated April 17, 2003 reporting the Corporation's <br>
  &nbsp;&nbsp;&nbsp;&nbsp;press release announcing its earnings for the three
  month<br>
  &nbsp;&nbsp;&nbsp; period ended March 31, 2003</font></p>
  </td>
 </tr>
</table>

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

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

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

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

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

<table border=0 cellspacing=0 cellpadding=0>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; August 11, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/Joseph
  E.
  O'Dell&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p><font size=3 face=Courier>Joseph
  E. O'Dell, President and Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p>&nbsp;</p>
  </td>
  <td width=403 valign=top>
  <p>&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width=331 valign=top>
  <p><font size=3 face=Courier>DATED:&nbsp; August 11, 2003</font></p>
  </td>
  <td width=403 valign=top>
  <p><u><font size=3 face=Courier>/s/John
  J.
  Dolan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
  </td>
 </tr>
 <tr>
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  <p><font size=3 face=Courier>John
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{"company-data": {"conformed-name": "FIRST COMMONWEALTH FINANCIAL CORP /PA/", "cik": "0000712537", "assigned-sic": "6021", "irs-number": "251428528", "state-of-incorporation": "PA", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "001-11138", "film-number": "03835554"}, "business-address": {"street1": "OLD COURTHOUSE SQUARE", "street2": "22 N SIXTH ST", "city": "INDIANA", "state": "PA", "zip": "15701", "phone": "7243497220"}, "mail-address": {"street1": "22 NORTH SIXTH STREET", "street2": "P.O. BOX 400", "city": "INDIANA", "state": "PA", "zip": "15701"}}
FORM 10-Q
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549
(X)
QUARTERLY
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
  the quarterly period ended June 30, 2003
OR
( )
TRANSITION
  REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
  the transition period from
to
Commission File Number
0-11242
First Commonwealth Financial
Corporation
(Exact name of registrant as specified in its charter)
Pennsylvania
25-1428528
(State or other jurisdiction of
(I.R.S. Employer
incorporation or organization)
Identification No.)
22
  North Sixth Street
Indiana, PA  15701
(Address of principal executive
  offices)
(Zip Code)
724-349-7220
(Registrant's telephone number, including area code)
N/A
(Former name, former address and former fiscal year,
if changed since last report)
Indicate a check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes
X
No
.
Number of shares outstanding of issuer's common stock, $1.00 Par Value as of
August 6, 2003, was 59,157,540.
FIRST COMMONWEALTH FINANCIAL CORPORATION AND
SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1.
FINANCIAL STATEMENTS
PAGE
Included in Part I of this report:
First Commonwealth Financial Corporation and
Subsidiaries Consolidated Balance Sheets..................
3
Consolidated Statements of Income.........................
4
Consolidated Statements of Changes in
Shareholders' Equity....................................
5
Consolidated Statements of Cash Flows.....................
6
Notes to Consolidated Financial
  Statements................
7
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS...................................
14
ITEM 3.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
  MARKET RISK..
35
ITEM 4.
CONTROLS AND PROCEDURES.....................................
35
PART II - OTHER INFORMATION
Other Information......................................................
36
Signatures.............................................................
37
Exhibits and Reports on Form 8K
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)
June
  30,
2003
December
  31,
2002
ASSETS
Cash and due
  from banks on demand........................
$
91,218
$
81,114
Interest-bearing
  bank deposits...........................
1,237
1,973
Securities
  available for sale, at market.................
1,835,859
1,482,771
Securities held
  to maturity, at cost,(Market value $135,402 in
2003 and $204,887 in 2002).............................
127,765
197,838
Loans....................................................
2,622,194
2,609,440
Unearned
  income........................................
(625)
(806)
Allowance
  for credit losses............................
(35,604)
(34,496)
Net
  loans..........................................
2,585,965
2,574,138
Premises and
  equipment...................................
44,917
45,730
Other real
  estate owned..................................
1,714
1,651
Goodwill.................................................
8,131
8,131
Amortizing
  intangibles, net..............................
16
29
Other assets.............................................
133,942
131,368
Total
  assets.........................................
$
4,830,764
$
4,524,743
LIABILITIES
Deposits (all
  domestic):
Noninterest-bearing....................................
$
396,794
$
377,466
Interest-bearing.......................................
2,823,015
2,666,658
Total
  deposits.......................................
3,219,809
3,044,124
Short-term
  borrowings....................................
594,210
469,065
Other
  liabilities........................................
26,875
30,230
Company
  obligated mandatorily redeemable capital securities of
subsidiary trust.......................................
35,000
35,000
Other long-term
  debt.....................................
543,408
544,934
Total
  long-term debt.................................
578,408
579,934
Total
  liabilities....................................
4,419,302
4,123,353
SHAREHOLDERS' EQUITY
Preferred
  stock, $1 par value per share, 3,000,000 shares
authorized, none issued................................
-0-
-0-
Common stock $1
  par value per share, 100,000,000 shares authorized,
62,525,408 shares issued; 59,071,871 and 58,962,543
  shares outstanding at
June 30, 2003 and December 31, 2002 respectively.......
62,525
62,525
Additional
  paid-in capital...............................
64,361
64,885
Retained
  earnings........................................
304,595
296,165
Accumulated
  other comprehensive income...................
26,101
25,851
Treasury stock
  (3,453,537 shares at June 30, 2003 and 3,562,869 at
December 31, 2002, at cost)............................
(43,601)
(44,981)
Unearned ESOP
  shares.....................................
(2,519)
(3,055)
Total
  shareholders' equity...........................
411,462
401,390
Total
  liabilities and shareholders' equity...........
$
4,830,764
$
4,524,743
The
accompanying notes are an integral part of these consolidated financial
statements.
3
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands)
For
  the Quarter
Ended June 30,
For
  the 6 Months
Ended June 30,
2003
2002
2003
2002
Interest Income
Interest
  and fees on loans......
$
41,523
$
45,220
$
83,552
$
90,547
Interest
  and dividends on investments:
Taxable
  interest .............
16,449
21,791
33,605
44,029
Interest
  exempt from Federal
income taxes
2,687
2,417
5,210
4,809
Dividends.....................
523
441
1,125
993
Interest
  on Federal funds sold..
1
1
2
4
Interest
  on bank deposits.......
3
8
9
19
Total
  interest income.........
61,186
69,878
123,503
140,401
Interest Expense
Interest
  on deposits............
15,961
20,782
31,758
42,103
Interest
  on short-term borrowings.
1,598
1,502
3,150
3,267
Interest
  on company obligated
mandatorily redeemable
capital securities of
subsidiary trust..............
831
832
1,662
1,663
Interest
  on other long-term debt
7,355
8,829
14,646
17,393
Total
  interest on long-term debt
8,186
9,661
16,308
19,056
Total
  interest expense........
25,745
31,945
51,216
64,426
Net Interest Income...........
35,441
37,933
72,287
75,975
Provision
  for credit losses.....
3,465
3,008
6,925
5,925
Net interest income after
  provision for
credit losses
31,976
34,925
65,362
70,050
Other Income
Securities
  gains................
3,221
576
5,455
615
Trust
  income....................
1,284
1,342
2,469
2,555
Service
  charges on deposit
accounts......................
3,255
2,746
6,104
5,439
Insurance
  commissions...........
848
951
1,645
1,807
Income
  from bank owned life
insurance.....................
1,052
1,173
2,098
2,242
Other
  income....................
3,538
3,149
6,498
5,668
Total
  other income............
13,198
9,937
24,269
18,326
Other Expenses
Salaries
  and employee benefits..
15,146
14,767
30,481
29,410
Net
  occupancy expense...........
1,771
1,613
3,745
3,299
Furniture
  and equipment expense.
2,544
2,568
5,096
4,966
Data
  processing expense.........
621
484
1,148
926
Pennsylvania
  shares tax expense.
1,081
996
2,141
1,991
Intangible
  amortization.........
6
68
13
188
Litigation
  settlement (recovery)
-0-
-0-
(610)
8,000
Restructuring charges...........
-0-
3,116
-0-
3,116
Other
  operating expenses........
7,213
8,003
14,140
15,162
Total
  other expenses..........
28,382
31,615
56,154
67,058
Income before income taxes....
16,792
13,247
33,477
21,318
Applicable
  income taxes.........
3,365
2,290
6,746
2,723
Net income....................
$
13,427
$
10,957
$
26,731
$
18,595
Average
  Shares Outstanding........
58,769,160
58,359,322
58,736,392
58,251,440
Average
  Shares Outstanding Assuming Dilution
59,101,475
58,851,264
59,018,324
58,669,047
Per Share Data:
Basic
  earnings per share........
$
0.23
$
0.19
$
0.46
$
0.32
Diluted
  earnings per share......
$
0.23
$
0.19
$
0.45
$
0.32
Cash
  dividends per share........
$
0.155
$
0.150
$
0.310
$
0.300
The
accompanying notes are an integral part of these consolidated financial
statements.
4
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(Dollars in thousands)
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Income
Treasury
Stock
Unearned
ESOP
Shares
Total
Shareholders'
Equity
Balance
  December 31, 2001..........
$
62,525
$
66,176
$
288,219
$
8,703
$
(51,431)
$
(4,126)
$
370,066
Comprehensive
  income
Net
  income.......................
-0-
-0-
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
Balance
  December 31, 2002..........
$
62,525
$
64,885
$
296,165
$
25,851
$
(44,981)
$
(3,055)
$
401,390
Comprehensive
  income
Net
  income.......................
-0-
-0-
26,731
-0-
-0-
-0-
26,731
Other
  comprehensive income, net of tax:
Unrealized
  holding gains on securities
arising during the period.....
-0-
-0-
-0-
3,772
-0-
-0-
3,772
Less:  reclassification adjustment for
gains on securities included in net income
-0-
-0-
-0-
(3,522)
-0-
-0-
(3,522)
Total
  other comprehensive income.
-0-
-0-
-0-
250
-0-
-0-
250
Total
  comprehensive income.........
‑0-
-0-
26,731
250
-0-
-0-
26,981
Cash
  dividends declared............
-0-
-0-
(18,301)
-0-
-0-
-0-
(18,301)
Decrease
  in unearned ESOP shares...
-0-
-0-
-0-
-0-
-0-
536
536
Discount
  on dividend reinvestment plan purchases
-0-
(334)
-0-
-0-
-0-
-0-
(334)
Treasury
  stock reissued............
-0-
(190)
-0-
-0-
1,380
-0-
1,190
Balance
  at June 30, 2003...........
$
62,525
$
64,361
$
304,595
$
26,101
$
(43,601)
$
(2,519)
$
411,462
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 6 Months
Ended June 30,
2003
2002
Operating Activities
Net income...............................................
$
26,731
$
18,595
Adjustments to
  reconcile net income to net cash provided by operating
activities:
Provision
  for credit losses ...........................
6,925
5,925
Depreciation
  and amortization..........................
3,632
3,759
Net
  losses (gains) on sales of assets..................
(5,543)
(663)
Income
  from increase in cash surrender value of bank owned life insurance
(2,098)
(2,242)
Decrease
  in interest receivable........................
730
654
Decrease
  in interest payable...........................
(922)
(2,066)
Increase
  (decrease) in income taxes payable............
841
(1,869)
Change
  in deferred taxes...............................
(2,325)
(663)
Other-net..............................................
(2,124)
728
Net
  cash provided (used) by operating activities.....
25,847
22,158
Investing Activities
Transactions
  with securities held to maturity:
Proceeds
  from sales....................................
-0-
-0-
Proceeds
  from maturities and redemptions...............
70,117
43,977
Purchases..............................................
-0-
(15,241)
Transactions
  with securities available for sale:
Proceeds
  from sales....................................
49,913
10,237
Proceeds
  from maturities and redemptions...............
510,136
215,851
Purchases..............................................
(907,343)
(206,211)
Proceeds from
  sales of loans and other assets............
65,964
48,401
Acquisition of
  affiliate, net of cash received...........
-0-
(4)
Investment in
  bank owned life insurance..................
-0-
(5,000)
Net decrease in
  time deposits with banks.................
736
3,506
Net increase in
  loans....................................
(84,781)
(99,506)
Purchases of
  premises and equipment......................
(2,693)
(3,300)
Net
  cash provided (used) by investing activities.....
(297,951)
(7,290)
Financing Activities
Repayments of
  other long-term debt.......................
(10,991)
(681)
Proceeds from
  issuance of other long-term debt...........
10,000
18,200
Discount on
  dividend reinvestment plan purchases.........
(334)
(316)
Dividends paid...........................................
(18,284)
(17,564)
Net increase
  (decrease) in Federal funds purchased.......
(9,800)
(81,900)
Net increase
  (decrease) in other short-term borrowings...
134,944
(40,188)
Net increase in
  deposits.................................
175,685
90,484
Proceeds from
  sale of treasury stock.....................
988
2,726
Net
  cash provided (used) by financing activities.....
282,208
(29,239)
Net
  increase (decrease) in cash and cash equivalents.
10,104
(14,371)
Cash and cash
  equivalents at January 1...................
81,114
98,130
Cash and cash
  equivalents at June 30.....................
$
91,218
$
83,759
The
accompanying notes are an integral part of these consolidated financial
statements.
6
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 1 Management Representation
The consolidated financial statements include the accounts of First
Commonwealth Financial Corporation and its subsidiaries ("the
Corporation").  All significant
intercompany transactions and balances have been eliminated.  The accounting and reporting policies of the
Corporation conform with accounting principles generally accepted in the United
States of America.  The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates, assumptions and judgments
that affect the amounts reported in the financial statements and accompanying
notes.  Actual realized amounts could
differ from those estimates.  In the
opinion of management, the unaudited interim consolidated financial statements
include all adjustments (consisting of only normal recurring adjustments)
necessary for a fair statement of financial position as of June 30, 2003 and
the results of operations for the three month and six month periods ended June
30, 2003 and 2002, and statements of cash flows and changes in shareholders'
equity for the six month periods ended June 30, 2003 and 2002.  The results of operations for the three
month and six month periods ended June 30, 2003 and 2002 are not necessarily
indicative of the results that may be expected for the full year or any other
interim period.  These interim financial
statements should be read in conjunction with the Corporation's 2002 Annual
Report on Form 10-K which is available on the Corporation's website at
http://www.fcbanking.com.  The
Corporation's website also provides additional information of interest to
investors and clients, including other regulatory filings made to the
Securities and Exchange Commission, press releases, historical stock prices,
dividend declarations and corporate governance, as well as information about
products and services offered through the Corporation's banking, insurance,
trust and financial management subsidiaries.
NOTE 2 Cash Flow Disclosures (dollar amounts in thousands)
2003
2002
Cash
  paid during the first six months of the year for:
Interest
$
52,138
$
66,491
Income
  Taxes
$
8,230
$
5,260
Noncash
  investing and financing activities:
ESOP
  loan reductions
$
536
$
536
Loans
  transferred to other real estate owned and
repossessed assets
$
2,210
$
3,599
Gross
  increase in market value adjustment to
securities available for sale
$
385
$
19,556
Treasury
  stock reissued for business combination
$
-0-
$
812
7
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 3 Comprehensive Income Disclosures
The following table identifies the related tax effects allocated to each
component of other comprehensive income in the Statements of Changes in
Shareholder's Equity: (dollar amounts in thousands)
June 30,
  2003
June 30,
  2002
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Pre-tax
Amount
Tax
(Expense)
Benefit
Net of
Tax
Amount
Unrealized gains (losses) on securities:
Unrealized holding gains
(losses) arising during
the period
$
5,803
$
(2,031)
$
3,772
$
20,166
$
(7,058)
$
13,108
Less: reclassification
adjustment for gains
realized
in net income
(5,418)
1,896
(3,522)
(610)
213
(397)
Net unrealized gains (losses)
385
(135)
250
19,556
(6,845)
12,711
Other comprehensive income
$
385
$
(135)
$
250
$
19,556
$
(6,845)
$
12,711
NOTE 4 Accounting for Stock Options Granted
In December 2002, the Financial Accounting Standards Board ("FASB")
issued Statement No. 148, "Accounting for Stock-Based
Compensation-Transition and Disclosure" ("FAS No. 148").  FAS No. 148 amended FASB Statement No. 123
"Accounting for Stock-Based Compensation" ("FAS No. 123")
to provide alternative methods of a voluntary transition to FAS No. 123's fair
value method of accounting for stock-based employee compensation.  FAS No. 148 also amended the disclosure
provisions of FAS No. 123 and APB Opinion No. 28, "Interim Financial
Reporting" ("APB 28"), to require disclosure in the summary of
significant accounting policies the effects of the entity's accounting policy
with respect to stock-based employee compensation on reported net income and
earnings per share in annual and interim financial statements.  FAS No. 148 does not amend FAS No. 123 to
require companies to account for employee stock options using the fair value
method, but the disclosure provisions of the statement apply to all companies
with stock-based compensation, regardless of whether they account for that
compensation using the fair value method of FAS No. 123 or the intrinsic value
method of APB Opinion No. 25 "Accounting for Stock Issued to
Employees" ("APB 25"). 
FAS No. 148 amendments to the transitional and annual disclosure
requirements of FAS No. 123 were effective for fiscal years ending after
December 15, 2002, while the interim disclosure provisions are effective for
financial reports containing financial statements for interim periods beginning
after December 15, 2002.  Implementation
of FAS No. 148 did not have a material impact on the Corporation's financial
condition or results of operations.
FAS No. 123 defines a method of measuring stock-based compensation, such as
stock options granted, at an estimated fair value but also permits the
continued measurement of stock based compensation under the provisions of APB
25.  As permitted under FAS No. 123, the
Corporation has elected to use the intrinsic value method to measure stock
based compensation under APB 25.  No
stock-based employee compensation expense is reflected in the Corporation's net
income as reported in the Consolidated Statements of Income because all stock
options granted under the Corporation's plan had an exercise price equal to the
market value of the underlying common stock on the date of grant.
8
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 4 Accounting for Stock Options Granted
(continued)
The following table illustrates the effect on net income and earnings per share
if the Corporation had applied the fair value recognition provisions of FAS No.
123 to stock-based employee compensation:
(Dollar
  amounts in thousands,
except per share data)
Three months ended
June 30,
2003
2002
Net
  Income, as reported
$
13,427
$
10,957
Deduct:
  Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects
(338)
(569)
Pro
  forma net income
$
13,089
$
10,388
Earnings
  per share:
Basic
  - as reported
$
0.23
$
0.19
Basic
  - pro forma
$
0.22
$
0.18
Diluted
  - as reported
$
0.23
$
0.19
Diluted
  - pro forma
$
0.22
$
0.18
(Dollar
  amounts in thousands,
except per share data)
Six months ended
June 30,
2003
2002
Net
  Income, as reported
$
26,731
$
18,595
Deduct:
  Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects
(676)
(1,139)
Pro
  forma net income
$
26,055
$
17,456
Earnings
  per share:
Basic
  - as reported
$
0.46
$
0.32
Basic
  - pro forma
$
0.44
$
0.30
Diluted
  - as reported
$
0.45
$
0.32
Diluted
  - pro forma
$
0.44
$
0.30
Note 5 Restructuring Charges
The Corporation incurred restructuring charges of $6,140 thousand during the second,
third and fourth quarters of 2002 in accordance with EITF 94-3.  These restructuring charges resulted from
the merger of the charters of the Corporation's two commercial banks (First
Commonwealth Bank and Southwest Bank) and the adoption of a new common brand
and identity for all financial services subsidiaries.  The largest component of these charges was $4,652 thousand of
employee separation costs consisting of severance packages for 95 employees
from various affiliates of the Corporation including all levels of staff from
the executive management level to back office support staff.  Restructuring charges during 2002 also
included $1,068 thousand related to realignment of the various Boards of
Directors and Board committees and $420 thousand primarily related to the
write-off of obsolete signage and supplies. 
These amounts were included as restructuring charges, a component of
Other Expenses on the Consolidated Statements of Income during 2002.
9
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
Note 5 Restructuring Charges
(continued)
During 2002 actual termination benefits paid and charged against the total
severance liability were $1,263 thousand, leaving a remaining unpaid liability
for severance costs of $3,389 thousand at December 31, 2002.  During the first half of 2003, monthly
severance payments totaling $1,786 thousand were made, reducing the outstanding
severance liability to $1,603 thousand at June 30, 2003.  No additional severance accruals or
adjustments were recorded during the first half of 2003 related to the 2002
restructuring.
NOTE 6 New Accounting Pronouncements
In July 2002, the FASB issued statement No. 146, "Accounting for Costs
Associated with Exit or Disposal Activities" ("FAS No.
146").  FAS No. 146 replaced EITF
Issue No. 94-3, "Liability Recognition for Certain Employee Termination
Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred
in a Restructuring)."  The standard
requires companies to recognize costs associated with exit or disposal
activities when they are incurred rather than at the date of a commitment to an
exit or disposal plan.  Statement 146 is
to be applied to exit or disposal activities initiated after December 31,
2002.  Adoption of FAS No. 146 did not
have a material impact on the Corporation's financial condition or results of
operations.
In November 2002, the FASB issued FASB Interpretation No. 45 ("FIN
45"), "Guarantor's Accounting and Disclosure Requirements for
Guarantees of Indebtedness of Others". 
The disclosure requirements of FIN 45 are effective for financial
statements of interim or annual periods ending after December 15, 2002, and
require disclosure of the nature of the guarantee, the maximum potential of
future payments the guarantor could be required to make under the guarantee,
and the current amount of the liability, if any, for the guarantor's obligation
under the guarantee.  The recognition
requirements of FIN 45 are to be applied prospectively to guarantees issued or
modified after December 31, 2002.  This
interpretation expands the disclosures to be made by the guarantor in its
financial statements about its obligation under certain guarantees and requires
the guarantor to recognize a liability for the fair value of an obligation
assumed under a guarantee.  FIN 45
clarifies the requirements of FASB Statement No. 5 ("FAS No. 5")
"Accounting for Contingencies", relating to guarantees.  In general, FIN 45 applies to contracts or
indemnification agreements that contingently require the guarantor to make
payments to the guaranteed party based on changes in an underlying that is
related to an asset, liability, or equity security of the guaranteed party.  Certain guarantee contracts are excluded
from both the disclosure and recognition requirements of this interpretation,
including, but not limited to, guarantees related to employee compensation,
residual value guarantees under capital lease arrangements, commercial letters
of credit, loan commitments, subordinated interests in special purpose entities
and guarantees of a company's own future performance.  Other guarantees are subject to the disclosure requirements of
FIN 45 but not the recognition provisions and include, among others, a
guarantee accounted for as a derivative instrument under FAS No. 133, a
parent's guarantee of debt owed to a third party by its subsidiary or vice
versa and a guarantee which is
10
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 6 New Accounting Pronouncements
(continued)
based on performance not price. 
Guarantees that have been entered into by the Corporation are disclosed
in NOTE 7.  The adoption of FIN 45 did
not have a material impact on the Corporation's financial condition or results
of operations.
In January 2003, the FASB issued FASB Interpretation No. 46 ("FIN
46"), "Consolidation of Variable Interest Entities", the
provisions of which became effective upon issuance.  As defined by FIN 46 a variable interest entity ("VIE")
is a corporation, partnership, trust or any other legal structure used for
business purposes that either (a) does not have equity
investors
with voting rights or (b) has equity investors that do not provide sufficient
financial resources for the entity to support its activities.  This interpretation also defines when the
assets, liabilities, noncontrolling interest and results of operations of a VIE
should be included in a company's consolidated financial statements.  Companies that hold variable interests in an
entity will need to consolidate that entity if the company's interest in the
VIE is such that the company will obtain a majority of the entity's expected
residual returns, should such occur. 
The Corporation has reviewed its current business interests in order to
determine the impact of FIN 46 and has determined that no additional business
interests require consolidation in the Corporation's financial statements.  The adoption of FIN 46, therefore, did not
have any impact on the Corporation's financial condition or results of
operations.
In April 2003, the FASB issued Statement No. 149 "Amendment of Statement
133 on Derivative Instruments and Hedging Activities" ("FAS No.
149").  FAS No. 149 amends and
clarifies accounting for derivative instruments, including certain derivative
instruments embedded in other contracts, and for hedging activities under
Statement 133.  In particular, FAS No.
149 clarifies under what circumstances a contract with an initial net
investment meets the characteristic of a derivative and when a derivative
contains a financing component that warrants special reporting in the statement
of cash flows.  This statement is
effective for contracts entered into or modified after June 30, 2003 and for
hedging relationships designated after June 30, 2003.  The adoption of FAS No. 149 is not expected to have a material
impact on the Corporation's financial condition or results of operations.
In
May 2003, the FASB issued Statement No. 150 "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and
Equity"("FAS No. 150"). 
FAS No. 150 represents the first phase of the FASB's broader project on
(1) distinguishing between liability and equity instruments and (2) accounting
for instruments that have characteristics of both liabilities and equity.  This statement requires issuers to classify
as liabilities the following three types of freestanding financial instruments:
(1) mandatorily redeemable financial instruments, (2) obligations to repurchase
the issuer's equity shares by transferring assets and (3) certain obligations
to issue a variable number of shares.  A
freestanding financial instrument is one that is entered into separately and
apart from any of the entity's other financial instruments or equity
transactions or is entered in conjunction with some other transaction but can
be legally detached and exercised on a separate basis.  FAS No. 150 is relatively narrow in scope as
it specifies only that certain instruments must be classified as liabilities
but does not include additional guidance
11
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 6 New Accounting Pronouncements
(continued)
on
the concept of what constitutes either a "liability" or
"equity".    Entities will
continue to apply existing guidance on determining the balance sheet
classification of instruments that do not specifically fall within the scope of
FAS No. 150.  FAS No. 150 must be
applied immediately to financial instruments entered into or modified after May
31, 2003.  For all other instruments
that exist, this statement goes into effect at the beginning of the first
interim period beginning after June 15, 2003. 
Application to pre-existing instruments should be recognized as the
cumulative effect of a change in accounting principle.  FAS No. 150 prohibits entities from
restating financial statements for earlier years presented.  This statement generally does not require
substantial
additional
disclosures in the notes to the financial statements beyond those required by
existing accounting standards.  Adoption
of FAS No. 150 is not expected to have a material impact on the Corporation's
financial condition or results of operations.
NOTE
7 Guarantees
Standby letters of credit are conditional commitments issued by the Corporation
to guarantee the performance of a customer to a third party.  The contract or notional amount of these
instruments reflects the maximum amount of future payments that could be lost
under the guarantees if there were a total default by the guaranteed parties
without consideration of possible recoveries under recourse provisions or from
collateral held or pledged.  In
addition, many of these commitments are expected to expire without being drawn
upon, therefore the total commitment amounts do not necessarily represent
future cash requirements.  The table
below identifies the notional amounts of these guarantees at June 30,
2003:  (Dollar amounts in thousands)
Financial
  standby letters of credit
$
23,870
Performance
  standby letters of credit
$
6,474
The current notional amounts outstanding above include financial standby
letters of credit of $6,087 thousand and performance standby letters of credit
of $458 thousand issued during the first half of 2003.  There is currently no liability recorded on
the Corporation's balance sheet related to the above letters of credit.
12
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)
NOTE 8 Subsequent Event-Branch Sale
On July 17, 2003 First Commonwealth Bank, a wholly-owned subsidiary of the
registrant agreed to sell two of its branch offices to Waypoint Bank.  Waypoint Bank is a $5.6 billion federally
chartered thrift with 59 branches located throughout Pennsylvania and Maryland.  Under the terms of the purchase and
assumption agreement, Waypoint will acquire First Commonwealth Bank branches at
15 South Main Street in Chambersburg, PA and 1720 Lincoln Highway East in
Guilford Township, PA.  Waypoint will
assume approximately $30 million of deposit liabilities and purchase $5 million
in loans associated with the two offices. 
The transaction is subject to the approval of the Office of Thrift
Supervision and is expected to settle in the third quarter of 2003.  The transaction is expected to generate a
pre-tax gain of approximately $3.0 million which will be included in the
registrant's financial results for the third quarter of 2003.
Note 9 Subsequent Event-Pending Business Combination
On August 8, the registrant entered into a definitive agreement to acquire
Pittsburgh Financial Corp. ("PFC") a financial holding company
headquartered near Pittsburgh, in Wexford Pennsylvania.  Pittsburgh Financial Corp. is the parent
company of BankPittsburgh with total assets of $376 million, deposits of $182
million and equity of nearly $23 million at June 30, 2003.  BankPittsburgh is a state chartered stock
savings bank headquartered in Pittsburgh, Pennsylvania which conducts business
from seven offices in Allegheny (6) and Butler (1) counties and one loan
production office in downtown Pittsburgh. 
PFC also offers residential and commercial mortgage settlement services
through Pinnacle Settlement Group LLC, an 80% owned subsidiary.  Pittsburgh Financial Corp. shares are traded
on the NASDAQ National Market System under the symbol "PHFC".
Under terms of the agreement, the shareholders of Pittsburgh Financial Corp.
can elect to receive $20.00 in cash or an equivalent value of the registrant's
common stock for each PFC share owned, subject to proration as provided in the
definitive agreement to ensure that 40% of the aggregate merger consideration
will be paid in cash and 60% in First Commonwealth common stock.  The transaction is subject to all required
regulatory approvals and the approval of PFC shareholders.  The definitive agreement was unanimously
approved by the Boards of Directors of both organizations.  The transaction has a current market value
of $28.4 million and is expected to be completed by the end of 2003.
On a pro-forma basis, as of June 30, 2003, the registrant would have assets of
approximately $5.2 billion, total equity of $424 million and market
capitalization of $765 million.
13
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 2003 as Compared to the
First Six Months of 2002
This discussion and the related financial data are presented to assist in the
understanding and evaluation of the consolidated financial condition and
results of operations of First Commonwealth Financial Corporation including its
subsidiaries (the "Corporation"). 
In addition to historical information, this discussion and analysis
contains forward-looking statements (as defined in the Private Securities
Litigation Reform Act of 1995), which reflect management's beliefs and
expectations based on information currently available and may contain the words
"expect," "estimate," "project,"
"anticipate," "should," "intend,"
"probability," "risk," "target," and similar expressions.  These forward-looking statements are
inherently subject to significant risks and uncertainties, including but not
limited to:  changes in general economic
and financial market conditions, the Corporation's ability to effectively carry
out its business plans, changes in regulatory or legislative requirements,
changes in competitive conditions and continuing consolidation of the financial
services industry.  Although management
believes the expectations reflected in such forward-looking statements are
reasonable, actual results could differ materially.  Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof.  The Corporation undertakes
no obligation to publicly revise or update these forward-looking statements to
reflect events or circumstances that arise after the date hereof.
Net income for the first six months of 2003 was $26.7 million reflecting an
increase of $8.1 million compared to 2002 results of $18.6 million.  The change in net income for the 2003 period
reflected decreases in non-interest expenses primarily related to nonrecurring
expenses included in the 2002 period and an increase in security gains for the
2003 period compared to the corresponding period of 2002.  Net income for the 2002 period included an
$8.0 million litigation settlement ($5.2 million net of tax) while the 2003
period includes a partial recovery from insurance for that claim in the amount
of $610 thousand ($397 thousand net of tax). 
This settlement related to a lender liability action filed in 1994
against one of the Corporation's subsidiary banks and followed an adverse
pre-trial judgment by the trial judge on procedural grounds.  The 2002 period also included $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 were eliminated or chose not
to relocate as a result of the merger of the two banks which was completed in
the fourth quarter of 2002.  The first
half of 2003 includes securities gains of $5.5 million ($3.5 million net of
tax) compared to securities gains of $615 thousand ($400 thousand net of tax)
for the first half of 2002.  The first
six months of 2003 also includes decreases in net interest income which
continues to be impacted by low interest rates.  During this unparalleled period of low interest rates the
Corporation, as well as the financial services industry in general, has been
challenged by margin compression as the cost of funds has not declined in the
same magnitude or at the same pace as asset yields.
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 2003 as Compared to the
First Six Months of 2002
(continued)
The decrease in net interest income has been partially offset by increases in
non-interest income for the first half of 2003 compared to the first half of
2002.  Diluted earnings per share was
$0.45 for the first six months of 2003 compared to $0.32 for the first six
months of 2002.
The following is an analysis of the impact of changes in net income on diluted
earnings per share:
Net
  income per share, prior year
$
0.32
Increase
  (decrease) from changes in:
Net
  interest income
(0.07)
Provision
  for credit losses
(0.02)
Security
  transactions
0.08
Service
  charges on deposits
0.01
Other
  income
0.01
Salaries
  and employee benefits
(0.02)
Net
  occupancy expense
(0.01)
Litigation
  settlement
0.15
Restructuring
  charges
0.05
Other
  operating expenses
0.02
Applicable
  income taxes
(0.07)
Net
  income per share
$
0.45
Return on average assets was 1.17% and return on average equity was 13.07% for
the first six months of 2003 compared to 0.82% and 9.77%, respectively, for the
first six months of 2002.
Net interest income, the most significant component of earnings, is the amount
by which interest income generated from earning assets exceeds interest expense
on liabilities.  Net interest income
declined $3.7 million for the first half of 2003 compared to the first half of
2002, primarily as earning asset yields declined faster than funding costs.  Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) was 3.63%
for the six months of 2003 compared to 3.79% for the six months of 2002.  Continued low or declining interest rates
would tend to further strain net interest income due to low reinvestment rates
and accelerated prepayments of certain loans and investments.
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 2003 as Compared to the
First Six Months of 2002
(continued)
The following table shows the effect of changes in volumes and rates on
interest income and interest expense:
Analysis
  of Changes in Net Interest Income
(dollar amounts in thousands)
2003 Change From 2002
Total
Change
Change Due
To Volume
Change Due
To Rate
Interest-earning
  assets:
Time
  deposits with banks
$
(10)
$
(7)
$
(3)
Securities
(9,891)
(762)
(9,129)
Federal
  funds sold
(2)
-0-
(2)
Loans
(6,995)
399
(7,394)
Total
  interest income
(16,898)
(370)
(16,528)
Interest-bearing
  liabilities:
Deposits
(10,345)
(3)
(10,342)
Short-term
  borrowings
(117)
968
(1,085)
Long-term
  debt
(2,748)
(2,720)
(28)
Total
  interest expense
(13,210)
(1,755)
(11,455)
Net
  interest income
$
(3,688)
$
1,385
$
(5,073)
Interest
and fees on loans declined $7.0 million for the first six months of 2003
compared to 2002 levels as loan yields declined in the lower interest rate
environment.  The total yield on loans
for the first half of 2003 was 6.60%, compared to loan yields of 7.23% for the
first half of 2002.  Average loans for
the first six months of 2003 rose $55.2 million compared to averages for the
first six months of 2002 as increases in commercial loans, municipal loans and
indirect installment loans were partially offset by decreases in average
mortgage loans.  The Corporation
has continued to capitalize on lending opportunities with small to mid-sized
commercial borrowers, including loans generated through its preferred Small
Business Administration ("SBA") lender status.  The Corporation was one of the top small
business lenders in Pennsylvania during the past two years.  The Corporation continues to take advantage
of the lower interest rate cycle to change the mix of its loan portfolio.  Average mortgage loans declined during 2003
as consumers refinanced their loans at near record levels.  The Corporation continued to offer
competitive mortgage loans but generally sold them immediately after
origination along with the related servicing rights.  The Corporation has begun to retain fixed rate mortgages with
maturities of 15 years or less and all adjustable rate mortgages.
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 2003 as Compared to the
First Six Months of 2002
(continued)
Interest income on investments declined $9.9 million for the first half of 2003
compared to the first half of 2002 reflecting decreases due to interest rates
of $9.1 million combined with decreases due to investment volumes of $762
thousand.  Total yield on investments
was 5.02% for the first six months of 2003 compared to 6.11% for the same
period of 2002.  Declines in interest
income due to rate for U.S. government agency securities were $7.9 million as
yields on U.S. government agency securities decreased 142 basis points (1.42%)
for the 2003 period compared to the corresponding period of 2002.  Average investments for the first half of
2003 included decreases in average asset backed securities of $74.9 million
which were partially offset by increases in average U.S. government agency
securities and average municipal investments compared to 2002 averages.
Interest on deposits dropped $10.3 million for the 2003 period compared to 2002
primarily due to decreases in interest expense due to interest rates.  Deposit costs were 2.05% for the first six
months of 2003 compared to 2.72% for the first six months of 2002.  The rate on savings deposits fell 47 basis
points (0.47%) resulting in a decrease to interest expense of $2.6 million for
the first six months of 2003 compared to the first six months of 2002.  The rate on time deposits for 2003 also
declined, down 90 basis points (0.90%) compared to 2002 levels, resulting in a
decrease to interest expense of $7.7 million for the first six months of
2003.  The Corporation's deposit mix
also changed for the first half of 2003 as clients registered a preference for
savings deposits during continuing economic uncertainties.  Average savings deposits increased $75.4
million for 2003 compared to 2002 averages while average time deposits dropped
$49.3 million over the same time frame. 
During its management of deposit levels and mix the Corporation
continues to evaluate the cost of time deposits compared to alternative funding
sources as it balances its goals of providing clients with the competitive
rates they are looking for while also minimizing the Corporation's cost of
funds.
Interest expense on short-term borrowings decreased $117 thousand for the six
months of 2003 compared to the six months of 2002 as decreases in interest
expense due to rate of $1.1 million were, for the most part, offset by
increases in interest expense due to volume of $968 thousand compared to 2002
levels.  The cost of short-term
borrowings for the 2003 period decreased by 50 basis points (0.50%) compared to
2002 costs of 1.86%. The average balance of short-term borrowings for the first
six months of 2003 increased by $109.2 million over averages for the prior
year.  The increase in short-term
borrowings can mainly be attributed to $100 million of long-term debt that
matured during the fourth quarter of 2002 and was replaced with short-term
borrowings.
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 2003 as Compared to the
First Six Months of 2002
(continued)
Interest expense on long-term debt decreased $2.7 million for the first six
months of 2003 compared to the corresponding period of 2002, primarily as a
result of volume decreases.  Average
long-term debt for the six months of 2003 decreased by $96.4 million compared
to 2002 averages.
The provision for credit losses is an amount added to the allowance against
which credit losses are charged.  The
amount of the provision is determined by management based upon its assessment
of the size and quality of the loan portfolio and the adequacy of the allowance
in relation to the risks inherent within the loan portfolio.  The provision for credit losses was $6.9
million for the six months of 2003 compared to $5.9 million for the six months
of 2002.  Net charge-offs against the
allowance for credit losses were $5.8 million for both the 2003 and 2002
periods.  Net charge-offs as a percent
of average loans outstanding were also comparable for the first half of 2003
and the first half of 2002 representing 0.22% of average loans for both
periods.  The provision for credit
losses as a percent of net charge-offs was 119.05% at June 30, 2003 compared to
102.85% at December 31, 2002 and 102.51% at June 30, 2002.  Management continues to gather additional
data related to its loan portfolio to make sure material trends and factors are
considered in management's evaluation of the adequacy of the allowance for
credit losses.  See the "Credit
Review" section for any analysis of the quality of the loan portfolio.
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 2003 as Compared to the
First Six Months of 2002
(continued)
Below is an analysis of the consolidated allowance for credit losses for the
six month periods ended June 30, 2003 and 2002:
2003
2002
(amounts in thousands)
Balance
  January 1,
$
34,496
$
34,157
Loans
  charged off:
Commercial,
  financial and agricultural
2,112
2,972
Real
  estate-construction
378
3
Real
  estate-commercial
467
351
Real
  estate-residential
2,040
863
Loans
  to individuals
1,685
2,187
Lease
  financing receivables
191
236
Total
  loans charged off
6,873
6,612
Recoveries
  of previously charged off loans:
Commercial,
  financial and agricultural
712
505
Real
  estate-construction
0
0
Real
  estate-commercial
0
0
Real
  estate-residential
10
11
Loans
  to individuals
334
311
Lease
  financing receivables
0
5
Total
  recoveries
1,056
832
Net
  charge offs
5,817
5,780
Provision
  charged to operations
6,925
5,925
Balance
  June 30,
$
35,604
$
34,302
Net
securities gains were $5.5 million during the first six months of 2003 compared
to $615 thousand for the first six months of 2002.  Securities gains during the 2003 period resulted primarily from
the sale of fixed rate corporate bonds classified as securities "available
for sale" with book values of $34.5 million and Pennsylvania bank stocks
with book values of $6.7 million.  The
corporate bonds sold during 2003 had an average remaining life of one year and
the proceeds were reinvested in adjustable rate trust preferred securities with
maturities of 30 years and mortgage backed securities with an average life of
3.6 years.  This reinvestment strategy
was initiated to partially mitigate the Corporation's exposure to low and
declining interest rates.  Securities gains
during the 2002 period resulted primarily from the sale of Pennsylvania bank
stocks, U.S. treasury securities and fixed rate corporate bonds classified as
securities "available for sale".
19
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS(continued)
First Six Months of 2003 as Compared to the
First Six Months of 2002
(continued)
Trust income was relatively stable for the first half of 2003 compared to the
first half of 2002.  Although fee
revenue continues to be negatively impacted by low market values, the enhanced
referral programs and integrated growth plans for financial affiliates that
have been initiated have helped to offset this trend.  The Corporation's continued success in building relationships
with commercial clients provides fee based affiliates with additional sales
opportunities through the "Total Solutions Financial Management"
("TSFM") process.  This
strategy combines products, services and professional staff from the
Corporation's trust, insurance, financial advisory and banking affiliates and
partners them in providing comprehensive financial services offerings.
Service charges on deposits are the Corporation's most significant component of
non-interest income and increased $665 thousand for the first six months of
2003 compared to the corresponding period of 2002.  Increases in insufficient funds fees "NSF" of $960
thousand for the first half of 2003 were partially offset by decreases in
selected fees related to certain transaction accounts compared to 2002
levels.  Management strives to implement
reasonable fees for services and closely monitors collection of those fees.
Insurance commissions fell $162 thousand for the 2003 period as decreases in
annuity and credit insurance revenues were larger than the increases that were
generated in all other insurance categories. 
As part of the previously discussed TSFM process, the Corporation's
insurance subsidiary will continue to have expanded opportunities to meet the
insurance needs of commercial clients. 
In addition, the Corporation has developed "FOCUS" a financial
planning tool designed to help clients prioritize and assess their financial
needs.  The "FOCUS" concept
results in a systematic approach covering a wide range of personal financial
goals including appropriate insurance coverage.
Other income for the first six months of 2003 rose $830 thousand from the $5.7
million reported for the first six months of 2002.  Other income for the first half of 2003 included increases in
STAR interchange fees, merchant discount and income from the increase in cash
surrender value of split dollar life insurance of $600 thousand, $430 thousand
and $160 thousand, respectively, versus 2002 results.  Gains on the sale of residential mortgage loans including the
sale of the related servicing rights increased by $182 thousand for the six
months of 2003 compared to 2002 gains. Other income for the 2003 period
included decreases in debit card interchange fees and gains on sale of
foreclosed property.
20
FIRST COMMONWEALTH FINANCIAL CORPORATION AND CONSOLIDATED
SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS(continued)
First Six Months of 2003 as Compared to the
First Six Months of 2002
(continued)
Noninterest expense was $56.2 million for the six months of 2003 reflecting a
decrease of $10.9 million from the 2002 level of $67.1 million, primarily
reflecting the effects of the previously mentioned litigation settlement and
restructuring charges included in 2002 costs. 
The 2002 period includes the $8.0 million litigation charge while the
2003 period includes a $610 thousand recovery from insurance coverage related
to the settlement.  The 2002 period also
includes a $3.1 million restructuring charge related to employee separation pay
and costs related to merging the Corporation's two subsidiary banks into one
charter. Employee costs were $30.5 million for the first six months of 2003,
representing an increase of $1.1 million 
over 2002 levels.  Salary costs
for the first half of 2003 increased $340 thousand or 1.5% compared to 2002
levels of $22.7 million.  Salary costs
for 2003 include on-going savings resulting from the merger of the
Corporation's banking subsidiaries under one charter and the consolidation of
support functions which caused some staff positions to be eliminated during
2002.  These staffing reductions were
part of the corporate restructuring initiative which also provided severance
benefits to affected employees. 
Severance costs were expensed as incurred during 2002 while monthly cash
payments for some individuals continue during 2003.  Employee benefit costs rose $731 thousand or 10.9% for the first
half of 2003 with the largest increase being hospitalization costs, which were
up $542 thousand or 22.8%.  The
Corporation continues to evaluate its current menu of employee benefits to provide
a competitive benefits package while also managing costs.  Current benefit options include coverages
fully paid for by the employer, as well as voluntary benefits whereby employees
have the option of purchasing additional benefits at reduced group rates.
Net occupancy expense increased $446 thousand for the first half of 2003 and
included increases in building repairs and maintenance, utilities and net
rental expense compared to 2002 costs. 
Much of these increases were due to increased utility costs and snow
removal expenses resulting from the harsh winter.  The Corporation is actively evaluating its branch delivery
network to optimize client service in existing branches and to continue
expansion into growth markets.  The
execution of these initiatives may impact occupancy and other expenses in
future periods.
Amortization of core deposit intangibles declined by $175 thousand for the
first half of 2003 compared to 2002 amortization as amounts related to certain
acquisitions became fully amortized during 2002.
21
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
First Six Months of 2003 as Compared to the
First Six Months of 2002
(continued)
Other operating expenses for the 2003 period were $14.1 million reflecting a
decrease of $1.0 million (6.7%) from the 2002 amount of $15.2 million.  The first six months of 2003 included
decreases in loss on sale of assets (primarily leased vehicles), other
professional fees and telephone expenses of $171 thousand, $799 thousand and
$325 thousand, respectively compared to 2002 costs.  Directors' fees for the 2003 period reflected decreases of $298
thousand resulting from the restructuring of the Corporation's Boards of
Directors and committees during 2002. Legal fees were also $201 thousand lower
in the first half of 2003 compared to the first half of 2002.  These fees are being centrally managed to
maximize risk management as well as cost control.  The first six months of 2003 included an increase in charge card
interchange charges of $368 thousand compared to the first six months of
2002.  Advertising costs for 2003 reflected
increases of $230 thousand, primarily as a result of continued promotion of the
Corporation's brand and identity launched during the fourth quarter of 2002, as
well as on-going marketing campaigns for free checking products.  These free checking products are expected to
have a favorable impact on deposit 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 increased $4.0 million for the first half of 2003 compared
to the first half of 2002.  The 2002
period included a $2.8 million tax effect related to the $8.0 million
litigation settlement recorded during 2002 as well as a $1.1 million tax effect
related to the 2002 restructuring charges. 
The Corporation's effective tax rate was 20.2% for the first six months
of 2003 compared to 12.8% for the corresponding period of 2002.
Three Months Ended June 30, 2003 as Compared
to the Three Months Ended
June
30, 2002
Net income was $13.4 million for the second quarter of 2003 an increase of $2.5
million compared to 2002 results of $10.9 million. The change in net income for
the 2003 period reflected decreases in non-interest expenses primarily related
to nonrecurring expenses included in the 2002 period and an increase in
security gains for the 2003 period compared to the corresponding period of
2002.  Restructuring charges of $3.1
million ($2.0 million net of tax) were included in results of operations for
the second quarter of 2002. The three months of 2003 included securities gains
of $3.2 million ($2.1 million net of tax) compared to securities gains of $576
thousand ($374 thousand net of tax) for the three months of 2002.  Net interest income for the second quarter
of 2003 reflected a decrease compared to the amount reported for the three months
of 2002. The decrease in net interest income has been partially offset by
increases in non-interest income for the 2003 quarter compared to the 2002
quarter.  Basic
and diluted earnings per share were $0.23 for the second quarter of 2003
compared to $0.19 for the second quarter of 2002.  Return on average assets was 1.15% and return on average equity
was 12.99% for the second quarter of 2003 compared to 0.96% and 11.43%,
respectively, for the second quarter of 2002.
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, 2003 as Compared
to the Three Months Ended
June
30, 2002
(continued)
Net interest income for the second quarter of 2003 of $35.4 million represented
a decrease of $2.5 million compared to the second quarter of 2002.  Net interest margin (net interest income, on
a tax-equivalent basis, as a percentage of average earning assets) for the 2003
period was 3.49% reflecting a decrease of 28 basis points (0.28%) from 3.77%
reported in 2002 as asset yields declined more than the cost of funds.
Interest and fees on loans for the three months ended June 30, 2003 decreased
$3.7 million compared to the three months ended June 30, 2002, primarily as a
result of rate decreases, most notably for variable rate commercial loans.  The total yield on loans for the second
quarter of 2003 was 6.51% representing a decrease of 65 basis points
(0.65%)compared to yields for the second quarter of 2002.  Declines in interest and fees on loans due
to rate for the second quarter of 2003 compared to the second quarter of 2002
were partially offset by increases in interest income due to volume for commercial
loans.  Average loans for the second
quarter of 2003 increased $46.3 million compared to averages for the second
quarter of 2002 and included increases in commercial loans, municipal loans and
home equity loans which were partially offset by deceases in average
residential mortgage loans.
Interest income on investments for the three months ended June 30, 2003 was
$19.7 million, reflecting a decrease of $5.0 million compared to the three
months ended June 30, 2002.  Total yield
on investments was 4.77% for the second quarter of 2003 compared to 6.09% for
the second quarter of 2002.  Changes in
investment income due to rate totaled $5.7 million for the 2003 period as
overall interest rates were lower than in the prior year.  Rate decreases during 2003 were slightly
offset by volume increases, most notably, volume increases for U.S. government
agency securities and municipal investments. Average investments increased by
$63.8 million for the second quarter of 2003 compared to averages for the
second quarter of 2002.
Interest on deposits dropped $4.8 million for the three months ended June 30,
2003 compared to the three months ended June 30, 2002 as both rates and volumes
declined for the 2003 period.  Interest
expense on savings reflected decreases due to rate of $1.3 million for the 2003
period as savings costs fell from 1.21% in 2002 to 0.76% in 2003.  Interest on time deposits reflected
decreases due to rate of $2.3 million and decreases due to volume of $1.4
million for the second quarter of 2003 compared to the second quarter of 2002.  Average time deposits were $1,598.4 million
for 2003 compared to $1,626.4 million for the corresponding period of 2002. The
cost of time deposits was 3.43% for 2003 compared to 4.27% for 2002.
23
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS(continued)
Three Months Ended June 30, 2003 as Compared
to the Three Months Ended
June
30, 2002
(continued)
Interest expense on short-term borrowings rose for the second quarter of 2003
compared to the second quarter of 2002 as increases in interest expense due to
volume were offset by decreases in interest expense due to rate.  Average short-term borrowings increased
$151.8 million for the second quarter of 2003 compared to 2002 averages, due in
part to $100 million of long-term debt maturing in the fourth quarter of 2002
which was rolled into short-term borrowings. 
The largest portion of the additional increase in short-term borrowings
can primarily be attributed to the pre-investment strategy implemented during
the second quarter of 2003 which is described in the "Interest
Sensitivity" section of this report. 
Interest expense on long-term debt for the three months ended June 30,
2003 fell $1.5 million from $9.7 million reported for the three months ended
June 30, 2002 primarily as a result of volume decreases.  Average long-term debt was $102.7 million
lower in the second quarter of 2003 than averages for the second quarter of
2002.
The provision for credit losses was $3.5 million for the three months ended
June 30, 2003 compared to $3.0 million for the three months ended June 30,
2002.  Net charge-offs for the second
quarter of 2003 were $3.2 million, an increase of $398 thousand from net
charge-offs for the second quarter of 2002. 
Net charge-offs for the second quarter of 2003 included increases in net
charge-offs of residential mortgage loans of $1.3 million combined with decreases
in net charge-offs for most other loan categories.
Net securities gains were $3.2 million for the second quarter of 2003 compared
to securities gains of $576 thousand for the second quarter of 2002.  Securities gains during both the 2003 and
the 2002 periods resulted primarily from the sale of Pennsylvania bank
stocks.  During the second quarter of
2003 Pennsylvania bank stocks with book values of $5.6 million were sold, while
bank stocks with book values of $1.1 million were sold during the second
quarter of 2002, generating gains of $3.2 million and $475 thousand,
respectively.
Service charges on deposits increased by $509 thousand for the three months
ended June 30, 2003 compared to the three months ended June 30, 2002.  This increase is due in part to increases in
insufficient funds fees "NSF" for the second quarter of 2003 compared
to 2002 levels.
Other income for the second quarter of 2003 rose $389 thousand from the $3.1
million reported for the second quarter of 2002.  Other income for the 2003 period included increases in STAR
interchange fees, merchant discount and income from the increase in cash
surrender value of split dollar life insurance of $214 thousand, $232 thousand
and $160 thousand, respectively, versus 2002 results.  Other income for the 2003 period included decreases in debit card
interchange fees, and gains on sale of foreclosed property.
24
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS(continued)
Three Months Ended June 30, 2003 as Compared
to the Three Months Ended
June
30, 2002
(continued)
Total noninterest expense for the three months ended June 30, 2003 was $28.4
million reflecting a decrease of $3.2 million from the $31.6 million that was
reported for the corresponding period of 2002. 
The decrease of 2003 resulted primarily from the previously discussed
restructuring charges of $3.1 million which were included in the 2002 period.  Employee costs were $15.1 million for the
second quarter of 2003, representing an increase of $379 thousand over 2002
levels.  Salary costs for the three
months of 2003 increased by less than 1% compared to 2002 levels.  Salary costs for 2003 include on-going
savings resulting from the merger of the Corporation's banking subsidiaries
under one charter and the consolidation of support functions which caused some
staff positions to be eliminated during 2002. 
Employee benefit costs rose $341 thousand or 10.3% for the second
quarter of 2003 with the largest increase being hospitalization costs, which
were up $285 thousand or 23.8% compared to 2002 levels.
Net occupancy expense increased $158 thousand for the three months ended June
30, 2003 compared to the three months ended June 30, 2002, primarily as a
result of increases in building repairs and maintenance.  Amortization of core deposit intangibles
declined by $62 thousand for the 2003 period as amounts related to certain
acquisitions became fully amortized during 2002.
Other operating expenses for the 2003 quarter were $7.2 million reflecting a
decrease of $790 thousand from the 2002 amount of $8.0 million.  The most notable decreases in other
operating expenses for the second quarter of 2003 compared to the second
quarter of 2002 occurred in directors fees, other professional fees and legal
fees which decreased by $179 thousand, $608 thousand and $101 thousand,
respectively.  Other operating expenses
for the second quarter of 2003 were also positively impacted by reductions in
telephone costs of $165 thousand due in part to active management of both voice
and dataline expenses by the Corporation's data processing and technology
affiliate.  The three months ended June
30, 2003 included increases in advertising, charge card interchange costs and
postage compared to the three months ended June 30, 2002.
Income tax expense increased $1.1 million for the second quarter of 2003
compared to the second quarter of 2002 primarily as a result of increases in
income before taxes of $3.5 million over 2002 levels.  Tax expense for 2002 included the $1.1 million tax effect related
to the 2002 restructuring charges.  Tax
expense for the second quarter of 2003 was positively impacted by an increase
in tax-free municipal income compared to 2002 levels.  The Corporation's effective tax rate was
20.0% for the second quarter of 2003 compared to 17.3% for the corresponding
period of 2002
25
FIRST COMMONWEALTH
FINANCIAL CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
Liquidity is a measure of the Corporation's ability to efficiently meet normal
cash flow requirements of both borrowers and depositors.  In the ordinary course of business, funds
are generated from the banking subsidiary's core deposit base and the maturity
or repayment of earning assets such as securities and loans.  As an additional secondary source,
short-term liquidity needs may be provided through the use of overnight Federal
funds purchased, borrowings through use of lines available for repurchase
agreements, and borrowings from the Federal Reserve Bank.  Additionally, the banking subsidiary is a
member of the Federal Home Loan Bank and may borrow under overnight and term
borrowing arrangements.  The sale of
earning assets may also provide an additional source of liquidity.  In addition to the previously described
funding sources, the Corporation also has the ability to access the capital
markets.
Liquidity risk stems from the possibility that the Corporation may not be able
to meet current or future financial obligations, or the Corporation may become
overly reliant on alternative funding sources. 
The Corporation maintains a liquidity management policy to manage this
risk.  This policy identifies the
primary sources of liquidity, establishes procedures for
monitoring
and measuring liquidity and quantifies minimum liquidity requirements which
comply with regulatory requirements. 
The policy also includes a liquidity contingency plan to address funding
needs to maintain liquidity under a variety of business conditions.  The Corporation's liquidity position is
monitored by the Asset/Liability Management Committee ("ALCO").
At June 30, 2003 total earning assets were $4,586.4 million, up from the $4,291.2
million recorded at December 31, 2002. 
Net loans increased $11.8 million for the first six months of 2003 as
commercial loans increased by $48.4 million and municipal loans increased by
$12.1 million compared to year-end 2002, while loans to individuals increased
by $14.3 million over the same time frame. 
The first six months of 2003 reflected decreases of $54.2 million in
residential real estate loans, due in part to the continued run-off of the
existing portfolio and sale of new loan production
as
the Corporation continues to change its loan mix.  The Corporation's auto lease portfolio also reflected decreases
of $9.7 million for the first six months of 2003 as focus shifts from indirect
leasing activities.  Investment
securities increased $283.0 million for the first six months of 2003 due in
part to a $150 million pre-investment strategy that is described in the
"Interest Sensitivity" section of this report.
26
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY
(continued)
Total deposits increased $175.7 million for the first six months of 2003.  This included increases in time deposits of
$72.9 million, total savings deposits of $83.5 million, and demand deposits of
$19.3 million compared to year-end 2002. 
Included in time deposits for the first six months of 2003 were $100
million of brokered deposits with a weighted average term of 27 months.  Proceeds from the issuance of brokered
deposits were utilized to pay down short-term borrowings during the first
quarter of 2003.  Short-term borrowings
increased during the second quarter to $594.2 million compared to $469.1
million at December 31, 2002. 
Short-term borrowings of $150 million were used to fund the previously
mentioned pre-investment strategy.
Marketable securities that the Corporation holds in its investment portfolio
are an additional source of liquidity. 
These securities are classified as "securities available for
sale" and while the Corporation does not have specific intentions to sell
these securities, they have been designated as "available for sale"
because they may be sold for the purpose of obtaining future liquidity, for
management of interest rate risk or as part of the implementation of tax
management strategies.  As of June 30,
2003, securities available for sale had an amortized cost of $1,795.7 million
and an approximate fair value of $1,835.9 million.
Interest Sensitivity
Market risk is the risk of loss arising from adverse changes in the fair value
of financial instruments due to changes in interest rates, currency exchange
rates or equity prices.  The
Corporation's market risk is composed primarily of interest rate risk.  Interest rate risk results principally from
timing differences in the repricing of assets and liabilities, changes in the
relationship of rate indices and the potential exercise of free standing or
embedded options.
The objective of interest rate sensitivity management is to maintain an
appropriate balance between the stable growth of income and the risks
associated with maximizing income through interest sensitivity imbalances.  While no single number can accurately
describe the impact of changes in interest rates on net interest income,
interest rate sensitivity positions, or "gaps", when measured over a
variety of time periods, 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.
27
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 $271.8 million or 5.63% of total assets at June 30, 2003.  A positive gap tends to indicate that
earnings will be impacted favorably if interest rates rise during the period
and negatively when interest rates fall during the time period.  A negative gap tends to indicate that
earnings will be affected inversely to interest rate changes.  In other words, as interest rates fall, a
negative gap should tend to produce a positive effect on earnings, and when
interest rates rise, a negative gap should tend to affect earnings negatively.
The primary components of ISA include adjustable rate loans and investments,
loan repayments, investment maturities and money market investments.  The primary components of ISL include
maturing certificates of deposit, money market deposits, savings deposits, NOW
accounts and short-term borrowings.
The following table lists the amounts and ratios of assets and liabilities with
rates or yields subject to change within the periods indicated as of June 30,
2003, and December 31, 2002 (dollar amounts in thousands):
June 30,
  2003
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
1,017,995
$
181,100
$
304,428
$
1,503,523
Investments
433,088
140,687
361,469
935,244
Other interest-earning assets
1,237
0
0
1,237
Total interest-sensitive assets
1,452,320
321,787
665,897
2,440,004
Certificates of deposit
226,870
193,511
438,504
858,885
Other deposits
1,256,014
0
0
1,256,014
Borrowings
594,791
921
1,166
596,878
Total interest-sensitive liabilities
2,077,675
194,432
439,670
2,711,777
Gap
$
(625,355)
$
127,355
$
226,227
$
(271,773)
ISA/ISL
0.70
1.66
1.51
0.90
Gap/Total assets
12.95%
2.64%
4.68%
5.63%
28
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
December
  31, 2002
0-90
Days
91-180
Days
181-365
Days
Cumulative
0-365 Days
Loans
$
962,398
$
157,172
$
295,273
$
1,414,843
Investments
292,206
162,578
262,287
717,071
Other interest-earning assets
1,973
0
0
1,973
Total interest-sensitive assets
1,256,577
319,750
557,560
2,133,887
Certificates of deposits
354,625
170,687
263,882
789,194
Other deposits
1,172,538
0
0
1,172,538
Borrowings
469,735
905
1,483
472,123
Total interest-sensitive liabilities
1,996,898
171,592
265,365
2,433,855
Gap
$
(740,321)
$
148,158
$
292,195
$
(299,968)
ISA/ISL
0.63
1.86
2.10
0.88
Gap/Total assets
16.36%
3.27%
6.46%
6.63%
Although the periodic gap analysis provides management with a method of
measuring current interest rate risk, it only measures rate sensitivity at a
specific point in time, and as a result may not accurately predict the impact
of changes in general levels of interest rates or net interest income.  This is exemplified as the gap analysis
shows the Corporation's earnings to be negatively impacted by rising rates, but
computer modeling indicates that rising rates would have a favorable impact on
earnings.  Therefore, to more precisely
measure the impact of interest rate changes on the Corporation's net interest
income, management simulates the potential effects of changing interest rates
through computer modeling.  The income
simulation model used by the Corporation captures all assets, liabilities, and
off-balance sheet financial instruments, accounting for significant variables
that are believed to be affected by interest rates.  These variables include prepayment speeds on mortgage loans and
mortgage backed securities, cash flows from loans, deposits and investments and
balance sheet growth assumptions.  The
model also captures embedded options, such as interest rate caps/floors or call
options, and accounts for changes in rate relationships as various rate indices
lead or lag changes in market rates. 
The Corporation is then better able to implement strategies that would
include an acceleration of a deposit rate reduction or lag in a deposit rate
increase.  The repricing strategies for
loans would be inversely related.
29
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Interest Sensitivity
(continued)
The Corporation's asset/liability management policy guidelines limit interest
rate risk exposure for the succeeding twelve month period.  Simulations are prepared under the base case
where interest rates remain flat and most likely case where interest rates are
defined using projections of economic factors. 
Additional simulations are produced estimating the impact on net
interest income of a 300 basis point (3.00%) movement upward or a 100 basis
point movement downward which cannot result in more than a 7.5% change or 5.0%
change, respectively, in net interest income when compared to the base case,
without Board approval and a strategy in place to reduce interest rate risk to
fall within established ranges.  The
analysis at June 30, 2003 indicated that a 300 basis point (3.00%) increase in
interest rates would increase net interest income 405 basis points (4.05%)
above the base case scenario and a 100 basis point (1.00%) decline in interest
rates would decrease net interest income by 272 basis points (2.72%) below the
base case scenario, over the next twelve months, both within policy limits.
The Corporation's "Asset/Liability Management Committee"
("ALCO") is responsible for the identification, assessment and
management of interest rate risk exposure, liquidity, capital adequacy and
investment portfolio position.  The
primary objective of the ALCO process is to ensure that the Corporation's
balance sheet structure maintains prudent levels of risk within the context of
currently known and forecasted economic conditions and to establish strategies
which provide the Corporation with appropriate compensation for the assumption
of those risks.  The ALCO attempts to
mitigate interest rate risk through the use of strategies such as asset sales,
asset and liability pricing and matched maturity funding.  The ALCO
strategies are established by the Corporation's senior management.  The 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 no derivative instruments were utilized as of June 30, 2003,
the Corporation entered into an interest rate swap transaction in July
2003.  The swap has a three-year maturity
and involves hedging adjustable LIBOR based commercial loans with a
receive-fixed interest rate swap of $25 million notional amount.
To minimize its exposure to falling interest rates the Corporation implemented
a pre-investment strategy during the second quarter of 2003 whereby a portion
of the cash flows from securities expected to mature or repay within four to
six months were reinvested before their maturity or repayment dates by
utilizing $150 million of short-term borrowings as an interim funding
source.  This strategy was implemented
to lock in current reinvestment rates to prevent further yield decreases as
interest rates continue to fall and should have an overall positive impact on
investment yields.
30
FIRST COMMONWEALTH FINANCIAL CORPORATION
AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT
REVIEW
The following table identifies amounts of loan losses and nonperforming
loans.  Past due loans are those which
were contractually past due 90 days or more as to interest or principal
payments but are well secured and in the process of collection.  Renegotiated loans are those loans which
terms have been renegotiated to provide a reduction or deferral of principal or
interest as a result of the deteriorating financial position of the borrower
and are in compliance with the restructured terms.
At June 30,
2003
2002
(amounts in thousands)
Nonperforming
  Loans
:
Loans
  on nonaccrual basis
$
20,810
$
25,705
Past
  due loans
14,778
14,987
Renegotiated
  loans
201
828
Total
  Nonperforming loans
$
35,789
$
41,520
Other
  real estate owned
$
1,714
$
1,468
Loans
  outstanding at end of period
$
2,621,569
$
2,612,965
Average
  loans outstanding (year-to-date)
$
2,644,059
$
2,588,873
Nonperforming
  loans as percent of total loans
1.37%
1.59%
Provision
  for credit losses
$
6,925
$
5,925
Net
  charge-offs
$
5,817
$
5,780
Net
  charge-offs as a percent of average loans outstanding
0.22%
0.22%
Provision
  for credit losses as a percent of net charge-offs
119.05%
102.51%
Allowance
  for credit losses as a percent of average loans outstanding
1.35%
1.32%
Allowance
  for credit losses as a percent of end-of-period loans outstanding
1.36%
1.31%
Allowance
  for credit losses as a percent of nonperforming loans
99.48%
82.62%
31
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
The Corporation considers a loan to be impaired when, based on current
information and events, it is probable that the Corporation will be unable to
collect principal or interest due according to the contractual terms of the
loan.  Loan impairment is measured based
on the present value of expected cash flows discounted at the loan's effective
interest rate or, as a practical expedient, at the loan's observable market
price or the fair value of the collateral if the loan is collateral
dependent.  Payments received on
impaired loans are applied against the recorded investment in the loan.  For loans other than those that the
Corporation expects repayment through liquidation of the collateral, when the
remaining recorded investment in the impaired loan is less than or equal to the
present value of the expected cash flows, income is recorded on a cash basis.  Impaired loans include loans on a nonaccrual
basis and renegotiated loans.
The following table identifies impaired loans, and information regarding the
relationship of impaired loans to the reserve for credit losses at June 30,
2003 and June 30, 2002:
2003
2002
(amounts in thousands)
Recorded
  investment in impaired loans at end
of period
$
21,011
$
26,533
Year
  to date average balance of impaired loans
$
22,262
$
25,078
Allowance
  for credit losses related to
impaired loans
$
5,308
$
5,382
Impaired
  loans with an allocation of the
allowance for credit losses
$
15,318
$
15,312
Impaired
  loans with no allocation of the allowance
for credit losses
$
5,693
$
11,221
Year
  to date income recorded on impaired loans
on a cash basis
$
199
$
188
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, 2003, there were no
significant concentrations of credit.
Nonperforming loans at June 30, 2003 decreased $5.7 million compared to 2002
levels as nonaccrual loans, past due loans and renegotiated loans decreased
compared to June 30, 2002.  The decrease
in nonaccrual loan levels of $4.9 million was primarily due to decreases in
nonaccrual commercial loans.  Nonaccrual
loans include two significant credits in both periods.  The largest credit ($6.1 million) carries an
80% guaranty of a U.S. government agency. 
While a sale of the underlying assets is pending,
32
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
delays with the bankruptcy court would result in a delay of the final sale and
resolution of the remaining balance. 
The second credit which was $3.0 million at June 30, 2003, continues to
be resolved through the liquidation of collateral and exercising other remedies.  While the timing of final resolution of this
credit is uncertain, management's estimate of the potential loss on this credit
is reserved.
Past due loans for the 2003 period remained relatively stable to the
corresponding period of 2002 and included decreases in loans to individuals and
loans secured by 1-4 family residential real estate, which were offset by loans
secured by commercial real estate. 
Renegotiated loans also fell, decreasing by $627 thousand for the 2003
period.  Nonperforming loans as a
percent of total loans was 1.37% at June 30, 2003 compared to 1.47% at December
31, 2002, and 1.59% at June 30, 2002, while the allowance for credit losses as
a percent of nonperforming loans was 99.48%, 89.76% and 82.62%, respectively
for the same periods.
The Corporation's loan portfolio continues to be monitored by senior management
to identify potential portfolio risks and detect potential credit deterioration
in the early stages.  This process
includes close monitoring of watchlist credits for workout progress or
deterioration, as well as evaluating the status of significant nonperforming
credits and loan loss adequacy.  Credit
risk is mitigated during the loan origination process through the use of sound
underwriting policies and collateral requirements.
The Corporation maintains an allowance for credit losses at a level deemed
sufficient to absorb losses, which are inherent in the loan and lease
portfolios at each balance sheet date. 
Management reviews the adequacy of the allowance on a quarterly basis to
ensure that the provision for credit losses has been charged against earnings
in an amount necessary to maintain the allowance at a level that is appropriate
based on management's assessment of probable estimated losses.  The Corporation's methodology for assessing
the appropriateness of the allowance for credit losses consists of several key
elements.  These elements include a
specific allowance for primary watch list classified loans, a formula allowance
based on historical trends, an additional allowance for special circumstances
and an unallocated allowance.
While the Corporation consistently applies a comprehensive methodology and
procedure, allowance for credit loss methodologies incorporate management's
current judgments about the credit quality of the loan portfolio, as well as
collection probabilities for problem credits. 
Although management considers the allowance for credit losses to be
adequate based on information currently available, additional allowance for
credit loss  provisions may be necessary
due to changes in management estimates and assumptions about asset impairment,
information about borrowers that indicate changes in the expected future cash
flows or changes in economic conditions. 
The allowance for credit losses and the provision for credit losses are
significant elements of the Corporation's financial statements, therefore
management periodically reviews the processes and procedures utilized in
determining the allowance for credit losses to identify
33
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CREDIT REVIEW
(continued)
potential enhancements to these processes, including development of additional
management information systems to ensure that all relevant factors are
appropriately considered in the allowance analysis.  In addition, the Corporation maintains a system of internal
controls which are independently monitored and tested by internal audit and loan
review staff to ensure that the loss estimation model is maintained in
accordance with internal policies and procedures, as well as generally accepted
accounting principles.
CAPITAL RESOURCES
Equity capital stood at $411.5 million at June 30, 2003, an increase of $10.1
million compared to December 31, 2002. 
Dividends declared reduced equity by $18.3 million during the first six
months of 2003.  The retained net income
of $8.4 million remained in permanent capital to fund future growth and
expansion.  Payment by the Corporation's
Employee Stock Ownership Plan ("ESOP") to reduce debt it incurred to
acquire the Corporation's common stock for future distribution as employee
compensation, net of fair value adjustments to unearned ESOP shares, increased
equity by $536 thousand.  Amounts paid
to fund the discount on reinvested dividends reduced equity by $334 thousand
during the first six months of 2003. 
The market value adjustment to securities available for sale increased
equity by $250 thousand for the period. 
Proceeds from the reissuance of treasury shares to fund stock options
exercised increased equity by $987 thousand during 2003.  Equity capital was also impacted during 2003
by an increase of $203 thousand from the reissuance of treasury shares to fund
contingent payments related to the acquisition of First Commonwealth Financial
Advisors, which occurred during the first quarter of 2002.  This contingent payment of the Corporation's
common stock was the first of four scheduled annual installments.
A strong capital base provides the Corporation with a foundation to expand
lending, to protect depositors and to provide for growth while protecting
against future uncertainties.  The
evaluation of capital adequacy depends on a variety of factors, including asset
quality, liquidity, earnings history and prospects, internal controls and
management ability.  In consideration of
these factors, management's primary emphasis with respect to the Corporation's
capital position is to maintain an adequate and stable ratio of equity to
assets.
The Federal Reserve Board has issued risk-based capital adequacy guidelines
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.
34
FIRST COMMONWEALTH FINANCIAL
CORPORATION AND CONSOLIDATED SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
CAPITAL RESOURCES
(continued)
The table below presents the Corporation's capital position at June 30, 2003:
Amount
(in thousands)
Percent of
Adjusted Assets
Tier
  I Capital
$  412,203
12.6%
Risk-Based
  Requirement
131,398
4.0
Total
  Capital
447,807
13.6
Risk-Based
  Requirement
262,796
8.0
Minimum
  Leverage Capital
412,203
8.8
Minimum
  Leverage Requirement
140,357
3.0
For an institution to qualify as well capitalized under regulatory guidelines,
Tier I, Total and Leverage Capital ratios must be at least 6.0%, 10.0%, and
5.0%, respectively.  At June 30, 2003,
the Corporation's banking and trust subsidiaries exceeded those requirements.
ITEM 3.  QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
Information appearing in Item 2 of this report under the caption "Interest
Sensitivity" is incorporated herein by reference in response to this item.
ITEM 4. CONTROLS AND PROCEDURES
(a) Disclosure controls and procedures. 
Within 90 days before filing this report, we evaluated the effectiveness
of the design and operation of our disclosure controls and procedures.  Our disclosure controls and procedures are
the controls and other procedures that we designed to ensure that we record,
process, summarize and report in a timely manner the information we must
disclose in reports that we file with or submit to the SEC.  Joseph E. O'Dell, our President and Chief
Executive Officer, and John J. Dolan, our Executive Vice President and Chief
Financial Officer, reviewed and participated in this evaluation.  Based on this evaluation, Messrs. O'Dell and
Dolan concluded that, as of the date of their evaluation, our disclosure
controls were effective.
(b) Internal controls.  Since the date
of evaluation described above, there have not been any significant changes in
our internal accounting controls or in other factors that could significantly
affect those controls.
35
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 21, 2003, the Corporation held its regularly scheduled annual meeting
  of shareholders.  The following
  proposal was considered and acted upon:
The
  following directors were elected for terms to expire in 2006:
Votes
  For          Votes Withheld
James
  W.
  Newill            46,730,939            519,822
John
  A. Robertshaw,
  Jr.    46,670,538            580,223
Laurie
  Stern
  Singer        46,601,570            649,191
ITEM
  5.
OTHER
  INFORMATION
The
  Corporation's Chief Executive Officer and Chief Financial Officer have
  furnished to the SEC the certification with respect to this Form 10-Q that is
  required by Section 906 of the Sarbanes-Oxley Act of 2002.
ITEM
  6.
EXHIBITS
  AND REPORTS ON FORM 8-K
(a)
  Exhibits
Exhibit
  31.1 Chief Executive Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  31.2 Chief Financial Officer Certification pursuant
to Section 302 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.1 Chief Executive Officer Certification pursuant
to Section 906 of the Sarbanes-Oxley Act
  of 2002
Exhibit
  32.2 Chief Financial Officer Certification pursuant
to Section 906 of the
  Sarbanes-Oxley Act of 2002
(b)
  Reports on Form 8-K
Form
  8-K dated April 17, 2003 reporting the Corporation's
press release announcing its earnings for the three
  month
period ended March 31, 2003
36
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 11, 2003
/s/Joseph
  E.
  O'Dell
Joseph
  E. O'Dell, President and Chief Executive Officer
DATED:  August 11, 2003
/s/John
  J.
  Dolan
John
  J. Dolan, Executive Vice President and Chief Financial Officer
37