FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data) Years Ended December 31, 2003 2002 2001 Interest Income Interest and fees on loans $ 164,441 $ 179,901 $ 202,173 Interest and dividends on investments:  Taxable interest  Taxable interest 66,716  84,137 93,961 Interest exempt from Federal income taxes  10,561 9,520 9,534 Dividends  2,038  1,973 2,661 Interest on Federal funds sold  4 6 492 Interest on bank deposits   13 31 70 Total interest income  243,773 275,568 308,891 Interest Expense Interest on deposits  60,100 78,572 118,165 Interest on short-term borrowings  6,755  6,029 11,227 Interest on mandatorily redeemable capital securities  of subsidiary trust  of subsidiary trust -0- 3,325 3,325 Interest on subordinated debentures  3,560 -0- -0- Interest on other long-term debt  Interest on other long-term debt 29,826 34,747 34,453 Total interest on long-term debt  Total interest on long-term debt  33,386 38,072 37,778 Total interest expense  100,241 122,673 167,170 Net interest income  143,532 152,895 141,721 Provision for credit losses  12,770 12,223 11,495 Net interest income after provision for credit losses  130,762 140,672 130,226 Other Income Securities gains  5,851 642 3,329 Trust income  5,142 5,008 4,995 Service charges on deposits  13,013 11,538 11,160 Gain on sale of branches  3,041 -0- 777 Insurance commissions  3,305 3,631 3,192 Income from bank owned life insurance  4,342 4,711 4,618 Merchant discount income  3,557 3,573 3,446 Other income  10,193 8,992 9,588 Total other income  48,444 38,095 41,105 Other Expenses Salaries and employee benefits  61,144 58,149 54,521 Net occupancy expense  7,456 6,750 6,520 Furniture and equipment expense  10,096  9,970 9,050 Data processing expense  2,520 2,124 3,296 Pennsylvania shares tax expense  4,301 3,937 3,825 Intangible amortization  43 203 490 Litigation settlement  Litigation settlement (610) 8,000 -0- Restructuring charges  -0- 6,140 Other operating expenses   27,705  31,057 28,186 Total other expenses  112,655 126,330 105,888 Income before income taxes 66,551 52,437 65,443 Applicable income taxes  13,251 8,911 15,254 Net Income $  53,300 $ 43,526 $ 50,189 Average Shares Outstanding  59,002,277 58,409,614 57,885,478 Average Shares Outstanding Assuming Dilution  59,387,055 58,742,018 58,118,057 Per Share Data: Basic Earnings Per Share $ 0.90 $ 0.75 $ 0.87 Diluted Earnings Per Share 0.74 0.86 The accompanying notes are an integral part of these consolidated financial statements. 15