FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands) NOTE 20— Retirement Plans (continued) Net periodic pension cost of this plan for each of the last three years was as follows: Net periodic benefit cost of this plan was as follows: 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: 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: The following table sets forth the change in plan assets: The following table sets forth the change in benefit obligation: Assumptions used in determining the actuarial present value of the projected benefit obligation were as follows at December 31: Employees of Southwest were covered by a postretirement benefit plan. The Corporation had borrowed amounts which were concurrently loaned to the First Commonwealth Financial Corporation Employee Stock Ownership Plan Trust NOTE 21— Unearned ESOP Shares The health care cost trend rate assumption can have a significant impact on the amounts reported for this plan. A one-percentage-point change in assumed health care cost trend rates would have the following effects: The discount rate used in determining the actuarial present value of the accumulated postretirement benefit obligation was 6.75% for 2001 and 2000. The health care cost trend rates used for 2001 and 2000 were projected at an initial rate of 6.75% decreasing over time to an annual rate of 4.25% for indemnity plan participants and an initial rate of 6.00% decreasing over time to an annual rate of 4.00% for non- indemnity plan participants. The following table sets forth the change in benefit obligation: Pension Plan of Acquired Subsidiary  (continued) Postretirement Benefits other than Pensions for Acquired Subsidiary 2001 2000 1999 Service cost $ -0- $ -0- $ -0- Interest cost on projected benefit obligation 346 343 394 Expected return on plan assets (438) (542) (261) Net amortization and deferral (33) 93 (153) Net periodic pension cost (benefit) $ (125) $ (106) $ (20) 2001 2000 1999 Service cost $6 $7 Interest cost on projected benefit obligation 232 190 197 Amortization of transition obligation 2 Loss amortization 65  -0-  48 Net periodic benefit cost $ 305 $ 199 $ 260 2001 2000 Accumulated postretirement benefit obligation: Retirees $ 3,941 $ 3,413 Actives 210 177 Total accumulated postretirement benefit obligation 4,151 3,590 Plan assets at fair value  -0- -0- Accumulated postretirement benefit obligation in excess of plan assets 4,151 3,590 Unrecognized transition obligation (18) (19) Unrecognized net loss (1,262) (729) Accrued benefit liability recognized on the balance sheet $ 2,871 $ 2,842 2001 2000 Benefit obligation at beginning of year $ 3,590 $ 2,959 Service cost 6 7 Interest cost 232 190 Benefit payments (276) (239) Actuarial loss (gain) 599 673 Benefit obligation at end of year $ 4,151 $ 3,590 1-Percentage- 1-Percentage- Point Increase Point Decrease Effect on total of service and interest cost components $ 18 $ (16) Effect on postretirement benefit obligation $ 259 $ (235) 2001 2000 Discount rates 6.0% 6.0% Rates of increase in compensation levels N/A N/A Expected long-term rate of return on assets 6.5% 6.5% 2001 2000 Fair value of plan assets at beginning of year $ 6,785 $ 6,485 Return on plan assets 982 542 Employer contribution -0- -0- Benefits paid (6,496) (242) Fair value of plan assets at end of year $ 1,271 $ 6,785 2001 2000 Benefit obligation at beginning of year $ 5,822 $ 5,765 Service cost -0- -0- Interest cost 346 343 Benefit payment (6,496) (242) Actuarial loss (gain) -0- (44) Settlement loss 328 -0- Benefit obligation at end of year $ -0- $ 5,822 2001 2000 Market value of plan assets $ 1,271 $ 6,785 Projected benefit obligation -0- 5,822 Plan assets greater than projected benefit obligation 1,271 963 Unrecognized net transition asset -0- (62) Unrecognized net loss (gain)  -0-  (223) Settlement loss (gain) (1,271) -0- Prepaid pension expense recognized on the balance sheet $ -0- $ 678 Actuarial present value of accumulated benefits, including vested benefits of $0 and $5,665 $ -0- $ 5,822 32