FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands) the plan were $940 in 2002, $1,173 in 2001 and $1,005 in 2000 (See Note 22). The Corporation also has a savings plan pursuant to the provisions of section 401(k) of the Internal Revenue Code. Under the terms of the plan, each participant will receive an automatic employer contribution to the plan in an amount equal to 3% of compensation. Each participating employee may contribute up to 8% of compensation to the plan of which up to 4% is matched 100% by the employer’s contribution. The 401(k) plan expense was $2,616 in 2002, $2,583 in 2001, and $2,444 in 2000. Prior to the plan amendment effective February 1, 2002, the Corporation’s 401(k) plan permitted each participating employee to contribute 10% of compensation to the plan of which up to 4% was matched 100% by the employer’s contribution. Upon shareholder approval at the regular 1998 meeting, the Corporation established a “Supplemental Executive Retirement Plan” (“SERP”) to provide deferred compensation for a select group of management. The purpose of this plan is to restore some of the benefits lost to the highly compensated employees compared to other employees due to limits and restrictions incorporated into the Corporation’s 401(k) and ESOP plans. The Corporation’s 401(k) and ESOP plans include restrictions on maximum compensation, actual deferral percentage, actual contribution, maximum contribution and maximum salary reduction which are required in order to meet specific legal requirements. Participants in the SERP may elect to contribute up to 10% of plan compensation (compensation in excess of limits of the Corporation’s 401(k) and ESOP plans) into the SERP, through salary reduction. The Corporation will make an elective contribution to the SERP equal to the elective contribution of the participant. Each participant of the SERP will also receive a matching contribution equal to 100% of the employee’s elective contribution up to 4%, and an additional non-elective contribution from the employer equal to 8% of plan compensation. The SERP will continue to supplement the Corporation’s 401(k) and ESOP plans and will therefore be modified at the same time and in the same respect as the basic plans are modified in future periods. The SERP plan expense was $133 in 2002, $150 in 2001, and $182 in 2000. The noncontributory defined benefit pension plan of Southwest Bank covered all eligible employees and provided benefits based on each employee’s years of service and compensation. On December 31, 1998, the participants’ accrued benefit was frozen and participation in the First Commonwealth Financial Corporation ESOP Plan with no lapse in credited service began. The Southwest Bank Pension Pension Plan of Acquired Subsidiary The following table sets forth the change in plan assets: Assumptions used in determining the actuarial present value of the projected benefit obligation were as follows at December 31: 31 2002 2001 Discount rates N/A 6.0% Rates of increase in compensation levels N/A N/A Expected long-term rates of return on assets N/A 6.5% 2002 2001 Fair value of plan assets at beginning of year $ -0- $ 6,785 Return on plan assets  -0- 982 Employer contribution -0- -0- Benefits paid  -0- (6,496) Fair value of plan assets at end of year $ -0- $ 1,271 2002 2001 Benefit obligation at beginning of year $ -0- $ 5,822 Service cost  -0-  -0- Interest cost -0- 346 Benefit payment  -0- (6,496) Actuarial loss  -0- -0- Settlement loss  -0-  328 Benefit obligation at end of year $ -0- $ -0- The following table sets forth the change in benefit obligation: The following table sets forth the plan’s funded status and the amounts recognized on the Corporation’s Consolidated Balance Sheet as of December 31: 2002 2001 Market value of plan assets $ -0- $ 1,271 Projected benefit obligation -0- -0- Plan assets greater than projected benefit obligation -0- 1,271 Unrecognized net transition asset -0-  -0- Unrecognized net loss (gain) -0- -0- Settlement loss (gain) -0- (1,271) Prepaid pension expense recognized on the balance sheet $ -0- $ -0- Actuarial present value of accumulated benefits, including vested benefits of $0 and $0 $ -0- $ -0- 2002 2001 2000 Service cost $ -0- $ -0- $ -0- Interest cost on projected benefit obligation -0- 346 343 Expected return on plan assets -0- (438) (542) Net amortization and deferral -0- (33) 93 Net periodic pension cost (benefit) $ -0- $ (125) $ (106) Plan was terminated effective December 31, 2001. As the result of the plan termination, an asset reversion of $1,271 and a gain, net of applicable excise tax, of $277 were recognized. Net periodic pension cost of this plan for each of the last three years was as follows: