FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS with inflation can only be determined by analyzing and monitoring its asset and liability structure. The Corporation monitors its asset and liability position with particular emphasis on the mix of interest-sensitive assets and liabilities in order to reduce the effect of inflation upon its performance. However, it must be remembered that the asset and liability structure of a financial institution is substantially different from an industrial corporation in that virtually all assets and liabilities are monetary in nature, meaning that they have been or will be converted into a fixed number of dollars regardless of changes in general price levels. Examples of monetary items include cash, loans and deposits. Nonmonetary items are those assets and liabilities which do not gain or lose purchasing power solely as a result of general price level changes. Examples of nonmonetary items are premises and equipment. Inflation can have a more direct impact on categories of noninterest expenses such as salaries and wages, supplies and employee benefit costs. These expenses are very closely monitored by management for both the effects of inflation and increases relating to such items as staffing levels, usage of supplies and occupancy costs. First Commonwealth Financial Corporation (the “Corporation”) is listed on the New York Stock Exchange under the symbol “FCF.” The approximate number of holders of record of the Corporation’s common stock is 13,500. The table below sets forth the high and low sales prices per share and cash dividends declared per share for common stock of the Corporation. COMMON STOCK INFORMATION Cash Dividends Period High Sale Low Sale Per Share 2002 First Quarter $ 14.00 $ 11.51 $ 0.150 Second Quarter $ 14.12 $ 12.53 $ 0.150 Third Quarter $ 13.37 $ 11.62 $ 0.150 Fourth Quarter $ 12.35 $ 10.84 $ 0.155 Cash Dividends Period High Sale Low Sale Per Share 2001 First Quarter $ 11.45 $  9.50 $ 0.145 Second Quarter $ 15.00 $ 10.30 $ 0.145 Third Quarter $ 14.35 $ 10.80 $ 0.145 Fourth Quarter $ 13.00 $ 11.10 $ 0.150 55