FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar Amounts in Thousands) The accompanying notes are an integral part of these consolidated financial statements. 17 Years Ended December 31, 2003 2002 2001 Operating Activities Net income $ 53,300 $ 43,526 $ 50,189 Adjustments to reconcile net income to net cash  provided by operating activities:  Provision for credit losses  12,770 12,223 11,495 Depreciation and amortization  7,498 7,360 7,760 Net gains on sales of assets  (6,483) (498) (3,392) Net gains on sales of branches  (3,034) -0- (777) Income from increase in cash surrender value of  bank owned life insurance  (4,342) (4,711) (4,618) Stock option tax benefit  Stock option tax benefit 535 224 269 Changes net of acquisition: Decrease in interest receivable  3,754 2,860 3,559 Decrease in interest payable  (1,120) (2,280) (19,387) Increase (decrease) in income taxes payable  (843) (2,754) 3,491 Change in deferred taxes  (2,235) (594) (831) Other-net (2,525) 2,408 (1,165) Net cash provided by operating activities  57,275 57,764 46,593 Investing Activities Changes net of acquisition:  Transactions with securities held to maturity:  Sales -0- -0- -0- Maturities and redemptions  93,700  110,769 133,666 Purchases of investment securities  -0-  (15,266) (28,772) Transactions with securities available for sale: Sales 62,941 15,328 85,737 Maturities and redemptions  954,406  545,791 497,640 Purchases of investment securities  (1,414,519) (547,799) (785,610) Proceeds from sales of loans and other assets  138,535 102,225 90,241 Investment in bank owned life insurance  -0- (5,000) (15,000) Net decrease (increase) in interest-bearing bank deposits  4,135 2,278 (3,823) Net increase in loans  (121,400) (154,614) (178,465) Purchases of premises and equipment  Purchases of premises and equipment  (5,227) (6,382) (7,886) Net cash provided (used) by investing activities   (287,429) 47,330 (212,272) Financing Activities Changes net of acquisition:  Proceeds from issuance of other long-term debt  Proceeds from issuance of other long-term debt 10,000 18,200 9,500 Repayments of other long-term debt  Repayments of other long-term debt (12,500) (101,425) (974) Proceeds from issuance of subordinated debentures  30,929 -0- -0- Discount on dividend reinvestment plan purchases  (706) (637) (612) Dividends paid  (36,630) (35,208) (33,809) Net increase (decrease) in Federal funds purchased  (37,500) (56,650) 91,425 Net increase in other short-term borrowings  202,562 97,980 64,138 Sale of branch and deposits, net of cash received  (21,288) -0- (9,591) Reissuance of treasury stock  5,923 4,656 2,500 Net increase (decrease) in deposits  82,901  (49,026) 39,384 Net cash provided (used) by financing activities  223,691 (122,110) 161,961 Net increase (decrease) in cash and cash equivalents  (6,463) (17,016) (3,718) Cash and cash equivalents acquired with acquisition  7,859 -0- -0- Cash and cash equivalents at January 1  81,114 98,130 101,848 Cash and cash equivalents at December 31 $  82,510  $ 81,114 $ 98,130