Aggregate Contractual Obligations and Off-Balance Sheet Arrangements The following table summarizes the Corporation’s contractual obligations to make future payments as of December 31, 2003.  Payments for borrowings do not include interest. Payments related to operating leases are based on actual payments specified in the  underlying contracts. (Dollar Amounts In Thousands) The preceding table excludes unamortized premiums and  discounts on Federal Home Loan Bank advances because these  premiums and discounts do not represent future cash obligations.  The preceding table also excludes the Corporation’s cash  obligations upon maturity of certificates of deposit whose  maturities are described in NOTE 15 to the “Consolidated  Financial Statements.” Subordinated debentures in the amount of  $8,292 thousand previously issued by PFC and due in 2028 were  called and subsequently paid in full in January 2004 and are  included as due within 1 year above.  Corporation would be entitled to seek repayment from the  client. The Corporation’s policies generally require that standby letter of credit arrangements contain security and debt  convenants similar to those contained in loan agreements.  The following table summarizes the Corporation’s off-balance  sheet commitments as of December 31, 2003. Commitments to  extend credit and standby letters of credit are presented at  contractual amounts; however, since many of these commitments  are expected to expire unused or only partially used, the total  amounts of these commitments do not necessarily reflect future  cash requirements.  Commitments to extend credit include unfunded loan  commitments as well as the undrawn portions of revolving and  closed-end lines of credit as of December 31, 2003. The  contractual provisions of these commitments normally include  fixed expiration dates or termination clauses, specific interest  rates and clauses indicating that funding is contingent upon  borrowers maintaining stated credit standards at the time of  loan funding.  Standby letters of credit are written conditional commitments  issued by the Corporation to guarantee the performance of a  client to a third party. In the event the client does not perform in  accordance with the terms of the agreement with the third party,  the Corporation would be required to fund the commitment. The  maximum potential amount of future payments the Corporation  could be required to make is represented by the contractual  amount of the commitment. If the commitment is funded, the  The Corporation’s long-term liquidity source is a large core  deposit base and a strong capital position. Core deposits are the  most stable source of liquidity a bank can have due to the long- term relationship with a deposit customer. Deposits increased  $244.2 million in 2003 and included increases in savings and  Liquidity risk stems from the possibility that the Corporation  may not be able to meet current or future financial obligations,  or the Corporation may become overly reliant on alternative  funding sources. The Corporation maintains a liquidity risk  management policy to manage this risk. This policy identifies  the primary sources of liquidity, establishes procedures for  monitoring and measuring liquidity and quantifies minimum  liquidity requirements based on board approved limits. The  policy also includes a liquidity contingency plan to address  funding needs to maintain liquidity under a variety of business  conditions. The Corporation’s liquidity position is monitored  by the Asset/Liability Management Committee (“ALCO”). Liquidity is a measure of the Corporation’s ability to efficiently  meet normal cash flow requirements of both borrowers and  depositors. In the ordinary course of business, funds are  generated from deposits (primary source) and the maturity or  repayment of earning assets, such as securities and loans. As an  additional secondary source, short-term liquidity needs may be  provided through the use of overnight Federal funds purchased,  borrowings through the use of lines available for repurchase  agreements and borrowings from the Federal Reserve Bank.  Additionally, the Corporation’s banking subsidiary is a member  of the Federal Home Loan Bank and may borrow under  overnight and term borrowing arrangements. The sale of  earning assets may also provide an additional source of  liquidity. In addition to the previously described funding  sources, the Corporation also has the ability to access the  capital markets. Liquidity Footnote 1 Year After 1 But After 3 But Reference  or Less  Within 3 Years  Within 5 Years  After 5 Years  Total Federal Home Loan Bank advances  18  $ 22,152  $ 21,392  $ 458,886  $ 175,658  $ 678,088 Repurchase agreements  -0-  -0-  20,000  -0-  20,000 Subordinated debentures  17  8,292  -0-  67,012  75,304 ESOP loan  18  1,477  1,136  -0-  2,613 Operating leases  14  2,093  3,856  3,146  5,584  14,679 Total contractual obligations  $ 34,014  $ 26,384  $ 482,032  $ 248,254  $ 790,684 Footnote  Reference  Amount Commitments to extend credit  13  $ 620,403 Standby letters of credit  28,836 Total lending-related commitments  $ 649,239 (Dollar Amounts In Thousands) 51 FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS