FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES The following table summarizes information about the stock  options outstanding at December 31, 2003: Options Outstanding Options Exercisable Weighted-  Average Weighted-  Range  Number Remaining Average  Number Average of Exercise Outstanding Contract  Exercise Exercisable Exercise Prices At 12/31/03 Life  Price At 12/31/03 Price $ 5.41-$ 8.99 45,078 7.2 $ 7.21 45,078 $ 7.21 9.00-$ 9.99 293,747 2.9 9.23 293,747 $ 9.23 $ 10.00-$ 10.99 429,976 7.1 $ 10.75 429,976 $10.75 $ 11.00-$ 11.99 1,298,938 6.7 $ 11.47 1,298,938 $11.47 $ 12.00-$ 15.00 897,987 7.5 $ 12.88 897,987 $12.88 Total 2,965,726 6.6 $ 11.51 2,965,726 $11.51 NOTE 27— Regulatory Restrictions and Capital Adequacy NOTE 25— Commitments and Contingent Liabilities NOTE 26— Related Party Transactions There are no material proceedings to which the Corporation  or its subsidiaries are a party, or of which their property is the  subject, except proceedings which arise in the normal course  of business and, in the opinion of management, will not have  a material adverse effect on the consolidated operations or  financial position of the Corporation and its subsidiaries. Some of the Corporation’s or its subsidiaries’ directors,  executive officers, principal shareholders and their related  interests, had transactions with the subsidiary banks in the  ordinary course of business. All deposit and loan transactions  were made on substantially the same terms, such as  collateral and interest rates, as those prevailing at the time  for comparable transactions. In the opinion of management,  these transactions do not involve more than the normal risk of  collectibility nor do they present other unfavorable features.  It is anticipated that further such transactions will be made in  the future. The following is an analysis of loans to those parties whose  aggregate loan balances exceeded $60 during 2003: As of December 31, 2003, the most recent notifications from  the Federal Reserve Board and Federal Deposit Insurance  Corporation categorized First Commonwealth Bank as well  capitalized under the regulatory framework for prompt  corrective action. To be considered as well capitalized, the  bank must maintain minimum total risk-based capital, Tier  I risk-based capital and Tier I leverage ratios as set forth in  the following table. There are no conditions or events since  that notification that management believes have changed the  institution’s category. Quantitative measures established by regulation to ensure  capital adequacy require the Corporation to maintain  minimum amounts and ratios of total and Tier I capital  (common and certain other “core” equity capital) to risk  weighted assets, and of Tier I capital to average assets. As  of December 31, 2003, the Corporation and its banking  subsidiaries meet all capital adequacy requirements to which  they are subject. The Corporation’s capital amounts and classification are  also subject to qualitative judgments by the regulators about  components, risk weighting and other factors. The Corporation is subject to various regulatory capital  requirements administered by the Federal banking agencies.  Failure to meet minimum capital requirements can initiate  certain mandatory and possibly additional discretionary  actions by regulators that, if undertaken, could have a direct  material effect on the Corporation’s financial statements.  Under capital adequacy guidelines and the regulatory  framework for prompt corrective action, the Corporation and  its banking subsidiaries must meet specific capital guidelines  that involve quantitative measures of the Corporation’s  assets, liabilities and certain off-balance sheet items as  calculated under regulatory accounting practices. The amount of funds available to the parent from its  subsidiary banks is limited by restrictions imposed on all  financial institutions by banking regulators. At December 31,  2003, dividends from subsidiary banks were restricted not to  exceed $84,489. These restrictions have not had, and are not  expected to have, a significant impact on the Corporation’s  ability to meet its cash obligations. NOTESTO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands, except per share data) Balances December 31, 2002 $ 4,603 Advances 5,956 Repayments (6,911) Other 1,129 Balances December 31, 2003 $ 4,777 “Other” primarily reflects the change in those classified as  a “related party” usually as a result of mergers, resignations  or retirements. 37