FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar Amounts in Thousands) The accompanying notes are an integral part of these consolidated financial statements. 19 Years Ended December 31, 2001 2000 1999 Operating Activities Net income $ 50,189 $ 47,246 $ 53,030 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 11,495 10,030 9,450 Depreciation and amortization 7,760 7,480 7,735 Net gains on sales of assets (4,169) (1,929) (5,192) Income from increase in cash surrender value of bank owned life insurance (4,618) (3,419) (2,126) Decrease (increase) in interest receivable  3,559 (932) (773) Increase (decrease) in interest payable (19,387) 7,620 1,815 Increase in income taxes payable 3,491 255 445 Change in deferred taxes (831) 1,533 287 Other—net (1,165) (1,751) (11,922) Net cash provided by operating activities  46,324 66,133 52,749 Investing Activities Transactions with securities held to maturity: Sales -0- -0- -0- Maturities and redemptions 133,666 67,735 127,566 Purchases of investment securities (28,772) (17,458) (93,151) Transactions with securities available for sale: Sales 85,737 22,391 39,282 Maturities and redemptions 497,640 108,636 193,605 Purchases of investment securities (785,610) (173,514) (398,933) Proceeds from sales of loans and other assets 90,241 36,482 99,692 Sale of subsidiary -0- -0- (2,431) Investment in bank owned life insurance (15,000) (15,000) (20,000) Net decrease (increase) in interest-bearing bank deposits (3,823) 790 689 Net increase in loans (178,465) (36,435) (227,347) Purchases of premises and equipment  (7,886)  (7,736) (5,197) Net cash used by investing activities (212,272) (14,109)  (286,225) Financing Activities Proceeds from issuance of other long-term debt 9,500 89,900 25,000 Repayments of other long-term debt (974) (70,493) (50,319) Proceeds from issuance of company obligated mandatorily redeemable capital securities of subsidiary trust -0- -0- 35,000 Discount on dividend reinvestment plan purchases (612) (593) (358) Dividends paid (33,809) (32,553) (27,825) Net increase (decrease) in Federal funds purchased  91,425 13,875 (45,025) Net increase (decrease) in other short-term borrowings 64,138 (166,531) 329,306 Sale of branch and deposits, net of cash received (9,591) -0- -0- Stock option tax benefit 269 75 -0- Acquisition of treasury stock -0- (873) (51,331) Reissuance of treasury stock 2,500 326 1,453 Net increase in deposits 39,384 115,318 21,333 Net cash provided (used) by financing activities 162,230 (51,549) 237,234 Net increase (decrease) in cash and cash equivalents (3,718) 475  3,758 Cash and cash equivalents at January 1 101,848 101,373 97,615 Cash and cash equivalents at December 31 $ 98,130 $ 101,848 $ 101,373