FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES noninterest-bearing demand deposits, which were partially  offset by decreases in time deposits. Noncore deposits, which  are time deposits in denominations of $100 thousand or more,  represented 12.1% of total deposits at December 31, 2003.  Noncore deposits decreased by $91.0 million in 2003 and $7.6  million in 2002 due in part to changes in public funds balances.  Although the Corporation’s primary source of funds remains  traditional deposits from within the communities served by its  banking subsidiary, future sources of deposits utilized could  include the use of brokered time deposits offered outside the  Corporation’s traditional market area. Time deposits of $100  thousand or more at December 31, 2003, 2002 and 2001 had  remaining maturities as follows: 2003 2002  2001 Amount Percent  Amount Percent Amount Percent  Remaining Maturity: 3 months or less  $  77,603  19% $  97,862  20%  $ 133,017  27% Over 3 months through 6 months  50,132  13 54,758  11  57,222  11 Over 6 months through 12 months  69,239  17 114,596  24  89,436  18 Over 12 months  201,742  51 222,486  45  217,643  44 Total  $ 398,716  100% $ 489,702  100%  $ 497,318  100% 2003 2002  2001  2000  1999 Amount  Percent Amount  Percent  Amount  Percent  Amount  Percent  Amount  Percent Commercial, financial, agricultural and other  $ 655,740 23% $ 633,955  24%  $ 529,300  21%  $ 443,618  18%  $ 417,300  16% Real estate-construction  27,063 1 20,998  1  14,727  1  37,146  2  41,734  2 Real estate-commercial  771,861 27 663,220  26  638,576  25  560,066  22  495,789  20 Real estate-residential  821,159 29 739,018  28  849,787  33  932,915  37  980,506  39 Loans to individuals  521,481 19 505,139  19  473,515  18  450,154  18  502,465  20 Net leases  28,033  1 47,110  2  63,326  2  68,975  3  65,893  3 Gross loans and leases   2,825,337  100%  2,609,440  100%   2,569,231  100%   2,492,874  100%   2,503,687  100% Unearned income  (455)  (806)  (1,297)  (2,047)  (3,628)  Total loans, and  leases net of  unearned income  $2,824,882 $2,608,634  $2,567,934  $2,490,827  $2,500,059  Loans by Classification Maturity Distribution of Large Certificates of Deposit (Dollar Amounts in Thousands) (Dollar Amounts in Thousands) Loans, net of unearned income and the allowance for credit  losses, increased $213.4 million during 2003 as increases were  noted in all categories with the exception of leases. Most  notable were increases in commercial loans secured by real  estate of $108.6 million and increases in residential loans  secured by real estate of $82.1 million compared to year-end  2002. Net loans in the amount of $245.8 million were acquired  with the BankPittsburgh acquisition. Below is a schedule of loans by classification for the five years  ended December 31, 2003: An additional source of liquidity is marketable securities that  the Corporation holds in its investment portfolio. These  securities are classified as “securities available for sale.” 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  December 31, 2003, securities available for sale had an  amortized cost of $1,946 million and an approximate fair value  of $1,969 million. Gross unrealized gains were $32.9 million  and gross unrealized losses were $9.6 million. Based upon the Corporation’s historical ability to fund liquidity  needs from other sources, the current available for sale  portfolio is deemed more than adequate, as the Corporation  does not anticipate a need to liquidate the investments until  maturity. A schedule of the contractual maturity distribution of  securities held to maturity and securities available for sale at  December 31, 2003, follows: 52 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS