FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands, except per share data) Capital securities included in total long-term debt on the Consolidated Balance Sheets are excluded from NOTE 17, but are described in NOTE 16. Scheduled loan payments for other long-term debt are summarized below: NOTE 16— Company Obligated Mandatorily Redeemable Capital Securities of Subsidiary Trust (Continued) NOTE 18— Common Share Commitments The net proceeds (after deduction of offering expenses and the initial purchaser’ s commission) from the sale of the debentures to the Trust were approximately $34,200. The Corporation used the net proceeds from the issuance of the debentures to partially finance the purchase of 3,819,420 shares of its outstanding common stock (approximately 6.5% of its outstanding shares of common stock) pursuant to a “ modified Dutch Auction”  tender offer. Unamortized deferred issuance costs associated with the capital securities amounted to $909 as of December 31, 1999 and are being amortized on a straight-line basis over the term of the capital securities. The outstanding balance of the capital securities are included as a separate component of long-term debt on the Consolidated Balance Sheets while interest on the capital securities is included as a separate component of interest expense on the Consolidated Statements of Income. The amortization of the deferred issuance costs is included in interest expense from the capital securities on the Consolidated Statements of Income. Other Long-term debt at December 31, follows: At December 31, 2001 and 2000, the Corporation had 100,000,000 common shares authorized and 62,525,412 shares outstanding. Outstanding shares were reduced by 4,073,788 shares of treasury stock at December 31, 2001 and 4,329,962 shares at December 31, 2000. The Corporation may be required to issue additional shares to satisfy common share purchases related to the employee stock ownership plan described in NOTE 21. The dilutive effect of stock options outstanding on average shares outstanding in the diluted earnings per share reported on the income statement were 232,579, 59,742 and 236,230 shares at December 31, 2001, 2000 and 1999, respectively. During 2000, 78,380 shares of treasury stock were acquired at an average price of $11.14. Treasury shares consisting of 256,174 and 41,240 were reissued during 2001 and 2000 upon exercise of stock options. During 2000, 89,742 shares of treasury stock were reissued to fund the buy-out of the insurance agency’ s joint-venture partner, as described in NOTE 4. The income tax provision consists of: NOTE 19— Income Taxes NOTE 17— Other Long-term Debt Temporary differences between financial statement carrying amounts and tax bases of assets and liabilities that represent significant portions of the deferred tax assets (liabilities) at December 31, 2001 and 2000, were as follows: All Federal Home Loan Bank stock, along with an interest in unspecified mortgage loans and mortgage-backed securities, with an aggregate statutory value equal to the amount of the preceding advances, have been pledged as collateral with the Federal Home Loan Bank of Pittsburgh. 2001 2000 Amount Rate Amount Rate ESOP loan due December, 2005 $ 4,126 Libor +1% $ 5,287 Libor +1% Borrowings from FHLB due: November, 2002 50,000 5.82% 50,000 5.82% December, 2002 50,000 5.71% 50,000 5.71% September, 2007 5,000 6.94% 5,000 6.94% February, 2008 100,000 5.45% 100,000 5.45% February, 2008 100,000 5.48% 100,000 5.48% May, 2008 100,000 5.67% 100,000 5.67% November, 2008 50,000 5.03% 50,000 5.03% December, 2008 65,000 4.96% 65,000 4.96% February, 2010 25,000 6.12% 25,000 6.12% December, 2010 55,000 4.70% 55,000 4.70% April, 2011 7,121 5.68% -0- March, 2016 1,935 5.65% -0- December, 2017 6,798 6.17% 7,038 6.17% June, 2019 8,375 5.72% 8,644 5.72% April, 2020  865 7.37% 886 7.37% $ 629,220 $ 621,855 2001 2000 1999 Current tax provision for income exclusive of securities transactions: Federal $ 14,865 $ 12,155 $ 19,111 State 55 (10) 16 Securities transactions 1,165 611 198 Total current tax provision 16,085 12,756 19,325 Deferred tax provision (benefit) (831) 1,533 287 Total tax provision $ 15,254 $ 14,289 $ 19,612 2002 2003 2004 2005 2006 Thereafter Loan payments $102,321 $2,385 $2,261 $2,624 $1,576 $518,053 30