FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTESTO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands) NOTE 13— Financial Guarantees (continued) NOTE 15— Interest-Bearing Deposits NOTE 14— Premises and Equipment The Corporation leases various premises and assorted  equipment under noncancellable agreements. Total future  minimal rental commitments at December 31, 2003 were  as follows: established in the contract. Commitments generally have  fixed expiration dates or other termination clauses and may  require payment of a fee. Since many of the commitments  are expected to expire without being drawn upon, the  total commitment amounts do not necessarily represent  future cash requirements. The Corporation evaluates each  customer’s creditworthiness on a case-by-case basis.  The amount of collateral obtained, if deemed necessary  by the Corporation upon extension of credit, is based  on management’s credit evaluation of the counter-party.  Collateral held varies but may include accounts receivable,  inventory, property, plant and equipment, residential and  income-producing commercial properties. Standby letters of credit and commercial letters of credit  written are conditional commitments issued by the  Corporation to guarantee the performance of a customer to a  third party. Those guarantees are primarily issued to support  public and private borrowing arrangements. The credit risk  involved in issuing letters of credit is essentially the same as  that involved in extending loan facilities to customers. Current notional amounts outstanding at December 31,  2003 for financial standby letters of credit and performance  standby letters of credit include amounts of $9,510 and $927,  respectively, issued during 2003 and subject to the provisions  of FIN 45. There is currently no liability recorded on the  Corporation’s balance sheet related to these letters of credit. Components of interest-bearing deposits at December 31  were as follows: Under the terms of various lease agreements, increases in  utilities and taxes may be passed on to the lessee. Such  adjustments are not reflected in the above table. Additionally,  various lease renewal options are available and are not  included in the minimum lease commitments until such  options are exercised. Total lease expense amounted to  $1,939 in 2003, $1,699 in 2002 and $2,105 in 2001. Interest-bearing deposits at December 31, 2003 and 2002,  include allocations from NOW and Super NOW accounts  of $405,521 and $374,695, respectively, into Savings and  MMDA accounts. These reallocations are based on a formula  and have been made to reduce the Corporation’s reserve  requirement in compliance with regulatory guidelines. Included in time deposits at December 31, 2003 and 2002,  were certificates of deposit in denominations of $100 or more  of $398,716 and $489,702, respectively. Interest expense related to $100 or greater certificates of  deposit amounted to $18,227 in 2003, $21,685 in 2002 and  $27,922 in 2001. Included in time deposits at December 31, 2003, were  certificates of deposit with the following scheduled  maturities: Depreciation and amortization related to premises and  equipment was $7,261 in 2003, $6,840 in 2002 and $6,153  in 2001. Premises and equipment are described as follows: Premises Equipment 2004 $ 1,779 $ 314 2005 1,638 313 2006 1,592 2007 1,555 101 2008 1,389 Thereafter 5,584 -0- Total $ 13,537 $ 1,142 2003 2002 NOW and Super NOW accounts $ 110,618 $ 71,649 Savings and MMDA accounts 1,302,451 1,100,889 Time deposits 1,466,559 1,494,120 Total interest-bearing deposits $ 2,879,628 $ 2,666,658 Estimated  Useful Life 2003 2002 Land Indefinite $ 7,177 $ 6,023 Buildings and improvements 5-50 Years 47,438 46,995 Leasehold improvements 5-40 Years 10,043 9,112 Furniture and equipment 2-10 Years 58,028 52,732 Software 3-7 Years  16,599 15,777 Subtotal  139,285 130,639 Less accumulated depreciation  and amortization   92,747 84,909 Total premises and equipment $ 46,538 $ 45,730 2004 $ 645,251 2005 389,610 2006 209,984 2007 136,991 2008 and thereafter 84,723 $ 1,466,559 30