T he year 2003 was one that challenged all fi nancial services  companies, including First Commonwealth. The historic low  interest rates have continued to compress net interest margins  making revenue growth diffi cult to achieve. Despite the economic  challenges, First Commonwealth achieved very successful results  for the year. Shareholder value was  enhanced with a total return of 29% for the year with a current  dividend yield of 4.5%. On December 5, 2003 the acquisition of Pittsburgh Financial,  with $373 million in assets, was consummated. This represents an  important step to increase our presence in the Pittsburgh market.  This step was followed by the announcement on December 12, 2003 that GA Financial Inc., the parent company of Great American  Federal, had agreed to join First Commonwealth, adding another  $890 million in assets in the Pittsburgh region. Together, these  two acquisitions will add nineteen community offices to the newly  formed Pittsburgh region, allowing First Commonwealth to more  effectively compete in this growing market. The branding initiative launched in fall 2002 was successfully  completed with the installation of new signage at all the community  office and affiliate locations. First Commonwealth has become a  recognizable brand throughout our markets while maintaining  the community orientation and personalized service for which we  2 First Commonwealth Net income for 2003 was $53.3 million, which translates  into $0.90 basic and diluted earnings per share. Return on  assets was 1.12% and return on equity was 12.95% for the year.  Total assets increased 15% for the year to $5.2 billion while  total nonperforming  loans declined 40%. 