FIRST COMMONWEALTH FINANCIAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar Amounts in Thousands) Years Ended December 31, 2002 2001 2000 Operating Activities Net income $ 43,526 $ 50,189 $ 47,246 Adjustments to reconcile net income to net cash provided by operating activities: Provision for credit losses 12,223 11,495 10,030 Depreciation and amortization 7,360 7,760 7,480 Net gains on sales of assets  (498) (4,169) (1,929) Income from increase in cash surrender value of bank owned life insurance (4,711) (4,618) (3,419) Decrease (increase) in interest receivable 2,860 3,559 (932) Increase (decrease) in interest payable (2,280)  (19,387) 7,620 Increase (decrease) in income taxes payable  (2,754) 3,491 255 Change in deferred taxes (594) (831)  1,533 Other-net  2,408 (1,165) (1,751) Net cash provided by operating activities 57,540 46,324  66,133 Investing Activities Transactions with securities held to maturity: Sales -0- -0- -0- Maturities and redemptions 110,769  133,666 67,735 Purchases of investment securities  (15,266)  (28,772)  (17,458) Transactions with securities available for sale: Sales  15,328 85,737 22,391 Maturities and redemptions  545,791  497,640  108,636 Purchases of investment securities (547,799) (785,610) (173,514) Proceeds from sales of loans and other assets  102,225 90,241 36,482 Investment in bank owned life insurance (5,000)  (15,000)  (15,000) Net decrease (increase) in interest-bearing bank deposits 2,278 (3,823) 790 Net increase in loans (154,614) (178,465)  (36,435) Purchases of premises and equipment  (6,382) (7,886) (7,736) Net cash provided (used) by investing activities 47,330 (212,272)  (14,109) Financing Activities Proceeds from issuance of other long-term debt  18,200 9,500 89,900 Repayments of other long-term debt (101,425) (974)  (70,493) Discount on dividend reinvestment plan purchases (637) (612) (593) Dividends paid  (35,208)  (33,809)  (32,553) Net increase (decrease) in Federal funds purchased  (56,650)  91,425 13,875 Net increase (decrease) in other short-term borrowings  97,980 64,138 (166,531) Sale of branch and deposits, net of cash received  -0- (9,591) -0- Stock option tax benefit 224 269 75 Acquisition of treasury stock  -0- -0- (873) Reissuance of treasury stock 4,656  2,500 326 Net increase (decrease) in deposits  (49,026) 39,384  115,318 Net cash provided (used) by financing activities (121,886)  162,230  (51,549) Net increase (decrease) in cash and cash equivalents (17,016) (3,718) 475 Cash and cash equivalents at January 1 98,130  101,848  101,373 Cash and cash equivalents at December 31 $ 81,114 $ 98,130 $ 101,848 The accompanying notes are an integral part of these consolidated financial statements. 17