FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES Although the Corporation’ s primary source of funds remains traditional deposits from within the communities served by its banking subsidiaries, future sources of deposits utilized could include the use of brokered time deposits offered outside the Corporation’ s traditional market area. Time deposits of $100 thousand or more at December 31, 2001, 2000 and 1999 had remaining maturities as follows: Maturity Distribution of Large Certificates of Deposit (Dollar Amounts in Thousands) 2001 2000 1999 Amount Percent Amount  Percent Amount Percent Remaining Maturity: 3 months or less $ 133,017 27% $ 358,112 79% $ 273,376 76% Over 3 months through 6 months 57,222 11 36,941 8 13,372 4 Over 6 months through 12 months 89,436 18 19,241 4 14,503 4 Over 12 months 217,643 44 41,088 9 57,010 16 Total $ 497,318 100% $ 455,382 100% $ 358,261 100% Loans by Classification (Dollar Amounts in Thousands) 2001 2000 1999 1998 1997 Amount Percent  Amount  Percent Amount Percent Amount Percent Amount Percent Commercial, financial, agricultural and other $ 529,300 21% $ 443,618 18% $ 417,300 16% $ 377,733 16% $ 363,699 15% Real estate-construction 14,727 1 37,146 2 41,734 2 33,097 1 35,308 1 Real estate-commercial 638,576 25 560,066 22 495,789 20 387,166 16 384,794 16 Real estate-residential 849,787 33 932,915 37 980,506 39 1,009,903 42 1,048,405 43 Loans to individuals 473,515 18 450,154 18 502,465 20 517,907 22 569,742 23 Net leases 63,326 2 68,975 3 65,893 3 56,423 3 51,245 2 Gross loans and leases 2,569,231 100% 2,492,874 100% 2,503,687 100% 2,382,229 100% 2,453,193 100% Unearned income (1,297) (2,047) (3,628) (7,379) (16,856) Total loans, and leases net of unearned income $ 2,567,934 $2,490,827 $ 2,500,059 $2,374,850 $2,436,337 million of 30 year residential mortgage loans with significant prepayment exposure during falling interest rates. Below is a schedule of loans by classification for the five years ended December 31, 2001: Net loans increased $76.6 million during 2001 as commercial loans increased by $134.1 million and loans to individuals increased by $23.4 million compared to year-end 2000. The 2001 period reflected decreases of $83.1 million in residential real estate loans, due in part to the sale of $12.9 An additional source of liquidity is marketable securities that the Corporation holds in its investment portfolio. These securities are classified as “ securities available for sale” . While the Corporation does not have specific intentions to sell these securities, they have been designated as “ available for sale”  because they may be sold for the purpose of obtaining future liquidity, for management of interest rate risk or as part of the implementation of tax management strategies. As of December 31, 2001, securities available for sale had an amortized cost of $1,456 million and an approximate fair value of $1,469 million. Gross unrealized gains were $19.6 million and gross unrealized losses were $6.2 million. Based upon the Corporation’ s historical ability to fund liquidity needs from other sources, the current available for sale portfolio is deemed to be more than adequate, as the Corporation does not anticipate a need to liquidate the investments until maturity. Below is a schedule of the contractual maturity distribution of securities held to maturity and securities available for sale at December 31, 2001. 47 MANAGEMENT’ S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS