FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands) Below is an analysis of the amortized cost and approximate fair values of debt securities held to maturity at December 31, 2002 and 2001: The amortized cost and estimated market value of debt securities at December 31, 2002, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Loans at year end were divided among these general categories: NOTE 9— Loans (all domestic) NOTE 8— Securities Held to Maturity 2002 2001 Gross Gross Approximate Gross Gross Approximate Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Obligations of U.S. Government Corporation and Agencies: Mortgage Backed Securities $ 63,535 $ 1,713 $ -0- $ 65,248 $ 133,687 $ 2,594 $ (166) $ 136,115 Other 15,000 934 -0- 15,934 29,998 1,360 -0- 31,358 Obligations of States and Political Subdivisions 96,869 3,685 -0- 100,554 107,130 1,545 (788) 107,887 Debt Securities Issued by Foreign Governments 408 -0- -0- 408 383 -0- -0- 383 Corporate Securities 22,026 725  (8) 22,743 22,092 808 -0- 22,900 Total Securities Held to Maturity $ 197,838 $ 7,057 $ (8) $ 204,887 $ 293,290 $ 6,307 $ (954) $ 298,643 Amortized Approximate Cost Fair Value Due within 1 year $ 22,047 $ 22,273 Due after 1 but within 5 years 30,186 32,157 Due after 5 but within 10 years 34,298 36,092 Due after 10 years 47,772 49,117 134,303 139,639 Mortgage Backed Securities 63,535 65,248 Total Debt Securities $ 197,838 $ 204,887 December 31, 2002 2001 Commercial, financial, agricultural and other $ 633,955 $ 529,300 Real estate loans: Construction and land development 20,998 14,727 1-4 family dwellings 739,018 849,787 Other real estate loans 663,220 638,576 Loans to individuals for household, family and other personal expenditures 505,139 473,515 Leases, net of unearned income 47,110 63,326 Subtotal 2,609,440 2,569,231 Unearned income (806) (1,297) Total loans and leases $ 2,608,634 $ 2,567,934 There were no sales of securities held to maturity in 2002, 2001 or 2000. Securities held to maturity with an amortized cost of $149,119 and $205,150 were pledged at December 31, 2002 and 2001, respectively, to secure public deposits and for other purposes required or permitted by law. Most of the Corporation’s business activity was with customers located within Pennsylvania. The portfolio is well diversified, and as of December 31, 2002 and 2001, there were no significant concentrations of credit. 26