FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data) The accompanying notes are an integral part of these consolidated financial statements . Years Ended December 31, 2001 2000 1999 Interest Income Interest and fees on loans $ 202,173 $ 208,548 $ 195,010 Interest and dividends on investments: Taxable interest 93,961 89,723 88,266 Interest exempt from Federal income taxes 9,534 9,638 9,479 Dividends 2,661 3,657 3,108 Interest on Federal funds sold 492 234 105 Interest on bank deposits  70 82 121 Total interest income 308,891 311,882 296,089 Interest Expense Interest on deposits 118,165 115,507 103,331 Interest on short-term borrowings 11,227 22,218 13,832 Interest on mandatorily redeemable capital securities of subsidiary trust 3,325 3,325 1,007 Interest on other long-term debt 34,453 33,489 34,483 Total interest on long-term debt 37,778 36,814 35,490 Total interest expense 167,170 174,539 152,653 Net interest income 141,721 137,343 143,436 Provision for credit losses 11,495 10,030 9,450 Net interest income after provision for credit losses 130,226 127,313 133,986 Other Income Securities gains  3,329 1,745 565 Trust income 4,995 5,555 5,525 Service charges on deposits 11,160 10,562 10,645 Insurance commissions 3,192 1,951 1,537 Income from bank owned life insurance 4,618  3,419 2,126 Other income  12,930 10,451 13,827 Total other income 40,224 33,683 34,225 Other Expenses Salaries and employee benefits 54,521 52,529 49,806 Net occupancy expense 6,520 6,577 6,537 Furniture and equipment expense 9,050 8,154 7,653 Data processing expense 3,296 3,310 3,449 Pennsylvania shares tax expense 3,825 3,495 3,477 Other operating expenses 27,795  25,396 24,647 Total other expenses  105,007 99,461 95,569 Income before income taxes 65,443 61,535 72,642 Applicable income taxes 15,254 14,289 19,612 Net Income $ 50,189 $ 47,246 $ 53,030 Average Shares Outstanding 57,885,478 57,558,929 60,333,092 Average Shares Outstanding Assuming Dilution 58,118,057 57,618,671 60,569,322 Per Share Data: Basic Earnings Per Share $ 0.87 $ 0.82 $ 0.88 Diluted Earnings Per Share $ 0.86 $ 0.82 $ 0.88 17