assumptions used in various calculations. The statement  also requires interim reporting of the components of the net  periodic benefit cost recognized. FAS No. 132(R) does not  change the measurement or recognition for pension or other  postretirement benefit plans. This statement is effective for  financial statements with fiscal years ending after December 15,  2003. Disclosure requirements for future benefit payments are  effective for fiscal years ending after June 15, 2004. FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES NOTESTO CONSOLIDATED FINANCIAL STATEMENTS (Dollar Amounts in Thousands, except per share data) In December 2003, the FASB issued Statement No.  132(R) “Employers’ Disclosures about Pensions and Other  Postretirement Benefits” (“FAS No. 132(R)”). The FASB’s  revision of Statement No. 132 retains all of the disclosure  items that were provided in FAS No. 132 and requires  new annual disclosures about the types of plan assets,  investment strategy, measurement date, plan obligations  and cash flows as well as the expanded disclosures of  The following table identifies the related tax effects allocated to each component of other comprehensive income in the  Statements of Changes in Shareholders’ Equity: NOTE 2— Supplemental Comprehensive Income Disclosures NOTE 3— Supplemental Cash Flow Disclosures NOTE 4— Pending Business Combination 25 In December 2003, the Corporation signed a definitive  agreement to acquire GA Financial, Inc. (“GAF”),  an $890,274 asset savings and loan holding company  operating a twelve branch network in Allegheny County in  Pennsylvania as of December 31, 2003. Under terms of the  agreement, the shareholders of GAF can elect to receive  $35.00 in cash or an equivalent of First Commonwealth  common stock for each GAF share owned, subject to  proration as provided in the definitive agreement to ensure  that 40% of the aggregate merger consideration will be paid  in cash and 60% in First Commonwealth common stock.  Common stock received by GAF shareholders is expected to  qualify as a tax-free exchange. Completion of this transaction  is subject to shareholder and regulatory approvals. December 31, 2003  December 31, 2002  December 31, 2001 Tax Net of Tax Net of  Net of Tax Net of Pretax  (Expense) Tax Pretax (Expense) Tax Pretax  (Expense) Tax Amount  Benefit Amount Amount Benefit Amount Amount  Benefit Amount Unrealized gains (losses) on securities: Unrealized holding gains (losses)  arising during the period $ (10,693) $ 3,742  $ (6,951) $ 26,987  $ (9,445) $ 17,542  $ 28,676  $(10,037) $ 18,639 Less: reclassification adjustment  for gains realized in net income (5,745)  2,011 (3,734)  (606)  212  (394)  (3,274) 1,146 (2,128) Unrealized gains (losses) on derivatives  used in cash flow hedging relationships: Unrealized holding gains arising during the period  11  (4)   7   -0-  -0-  -0-  -0-  -0-  -0- Net unrealized gains (losses) (16,427)  5,749 (10,678) 26,381 (9,233) 17,148 25,402 (8,891)  16,511 Other comprehensive income $ (16,427) $ 5,749  $(10,678) $ 26,381  $ (9,233) $ 17,148  $ 25,402  $(8,891) $ 16,511 2003 2002 2001 Cash paid during the year for: Interest $ 101,361 $ 124,953 $ 186,558 Income taxes 16,080 12,010 $ 11,890 Noncash investing and financing activities: ESOP loan reductions $ 1,061 $ 1,071 $ 1,161 Loans transferred to  other real estate owned  and repossessed assets $ 4,270 $ 5,029 $ 5,246 Gross increase (decrease) in  market value adjustment  to securities available  for sale $ (16,438) $ 26,381 $ 25,402 Gross increase in market  value adjustment of  derivative instruments $ 11 $ -0- $ -0- Treasury stock reissued for  business combination $ 203 $ 830 $ -0-