** **

***** NewsRelease *****

To: All Area News AgenciesFrom: First Commonwealth Financial CorporationDate: July 17, 2003For More Information Contact: John Dolan, Executive Vice President and Chief FinancialOfficer, First Commonwealth Financial Corporation, 724-349-7220

# FIRSTCOMMONWEALTH ANNOUNCES SECOND QUARTER EARNINGS

INDIANA, PA - First Commonwealth Financial Corporation (NYSE:FCF) reported netincome of $13.4 million for the second quarter of 2003 which translates into$0.23 basic and diluted earnings per share and compared to $11.0 million netincome and $0.19 basic and diluted earnings per share for the comparable periodin 2002.  The 2002 quarter results included the effects of a $3.1 million (pre-tax)restructuring charge related to employee separation pay and costs related tomerging its two subsidiary banks into one charter.  These items, net of tax, decreased net income in the 2002 periodby $2.0 million.   Return on equity was12.99% and return on assets was 1.15% for the second quarter of 2003 comparedto 11.43% and 0.96%, respectively in the 2002 period.Net income for the six months ended June 30, 2003 was $26.7 million, or $0.46basic and $0.45 diluted earnings per share compared to $18.6 million net incomeand $0.32 basic and diluted earnings per share for the related period in 2002. 

The six month period of 2002 included the effects of a previouslydisclosed $8.0 million (pre-tax) settlement of litigation and the 2003 periodreflects a partial recovery from insurance for that claim in the amount of $610thousand (pre-tax).  Additionally, the2002 period reflects the above described $3.1 million (pre-tax) accrual for therestructuring charge.  These items, netof tax, increased income in 2003 by $397 thousand and reduced net income by$7.2 million in the 2002 period.  Returnon equity was 13.07% and return on assets was 1.17% in the six-month period of2003 compared to 9.77% and 0.82% for the 2002 period.

 

### *Net Interest Income*

Net interest income declined $2.5 million in second quarter of 2003,primarily as the earning asset yields declined faster than funding costs.  Net interest income, on a fullytax-equivalent basis, as a percentage of average earning assets ("netinterest margin") was 3.49% in the 2003 quarter compared to 3.77% in thesecond quarter of 2002.  Net interest income for the six months of 2003 declined $3.7 million from thesame period of 2002 while net interest margin was 3.63% for the 2003 period andcompared to 3.79% for the 2002 period. The reduction of short-term interest rates tends to reduce rates on loancategories and time deposits, but the non-maturity deposits (savings and NOWaccounts) are already at very low levels. Continued low or declining interest rates would tend to continue tostrain net interest income.  TheCorporation continues to explore strategies to help mitigate any negativeimpact of low interest rate.

### *Noninterest Income*

Net securities gains were $3.2 million in the second quarter of 2003compared to $576 thousand in the 2002 quarter while net securities gains were$5.5 million in the first six months of 2003 compared to $615 thousand in the2002 period.  The Corporation sold acombination of debt and equity securities. Gains in the second quarter of both years presented were primarily fromthe sale of equity securities.  The debtsecurities sold in the six month period of 2003 were securities available forsale and had an average remaining life of one year and proceeds were reinvestedin securities with an average life of three years to partially mitigate theCorporation's exposure to low and declining interest rates.  Noninterest income, excluding the net securities gains described above,increased $616 thousand in the second quarter of 2003 when compared to the samequarter of 2002 and increased $1.1 million in the corresponding six-monthperiods.  These increases were primarilydriven by deposit fee increases.

### *Noninterest Expense*

Noninterest expenses decreased $3.2 million during the 2003 quarterwhen compared to the second quarter of 2002, while noninterest expense for thesix months of 2003 decreased $10.9 million when compared to the 2002 period,primarily reflecting the effects of the above mentioned litigation settlementand restructuring charges.  The mostsignificant other noninterest expense item that increased was employee benefitcosts with hospitalization costs increasing 23%.

### *Provision for Credit Losses*

The provision for credit losses increased $457 thousand in the second quarterof 2003 when compared to the 2002 related quarter and increased $1.0 millionfor the six months of 2003 when compared to the comparable 2002 period,reflecting management's assessment of its portfolio.  The second quarter of 2003 reflected an increase of  $398 thousand in net charge-offs whencompared to the 2002 quarter but net charge-offs for both six month periodswere comparable.

## ***Credit Quality ***

Nonperforming loan levels continue to show improvement at June 30, 2003when compared to June 30, 2002. Nonaccrual loans contained two significant credits that were describedin the 2002 Form 10K and Annual Report. The largest credit ($6.1 million) carries an 80% guaranty of a U.S.government agency.  While a sale of theunderlying assets is pending, delays with the bankruptcy court would result ina delay of the final sale and resolution of the remaining balance.  The second credit, which was $3.0 million atJune 30, 2003, continues to be resolved through the liquidation of collateraland exercising other remedies.  Whilethe final resolution of this credit is uncertain, the potential loss on thiscredit is reserved.  The Corporationbelieves that the allowance for credit losses is adequate at this time.  Other significant credits are monitoredclosely.  The uncertain economicconditions present a risk to the company and the industry but management feelsthat its risk management process is thorough and serves as an early warningsystem so that an appropriate response will be promptly implemented.First Commonwealth Financial Corporation is a $4.8 billion bank holding companyheadquartered in Indiana, PA.  Itoperates in 18 counties in western and central Pennsylvania through FirstCommonwealth Bank, a Pennsylvania chartered bank.  Financial services and insurance products are also providedthrough First Commonwealth Trust Company, First Commonwealth FinancialAdvisors, Inc. and First Commonwealth Insurance Agency.  The Corporation also operates FirstCommonwealth Systems Corporation, a data processing subsidiary, FirstCommonwealth Professional Resources, Inc., a support services subsidiary, andjointly owns Commonwealth Trust Credit Life Insurance Company, a credit lifereinsurance company.

*Statementscontained in this press release that are not historical facts are forwardlooking statements as that item is defined in the Private Securities LitigationReform Act of 1995.  Suchforward-looking statements are subject to risks and uncertainties that couldcause actual results to differ materially from estimates results.  Such risks and uncertainties are detailed inthe Corporation's filings with the Securities and Exchange Commission.*

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| FIRST COMMONWEALTH FINANCIAL CORPORATION                                                                                                                    |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|------------|
| CONSOLIDATED SELECTED FINANCIAL DATA                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| (Dollar Amounts in Thousands, except per share data)                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                 For the Quarter       |                                 For the 6 Months       |
|                                                                                                                                                        |                                 Ended June 30,        |                                  Ended June 30,        |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              | 2003       | 2002       |
| Interest income                                                                                                                                             | $61,186                                                                                                                                                                                                          | $69,878                                                                                                                                                                                                           | $123,503   | $140,401   |
| Interest expense                                                                                                                                            | 25,745                                                                                                                                                                                                           | 31,945                                                                                                                                                                                                            | 51,216     | 64,426     |
|      Net  interest income                                                                                                               | 35,441                                                                                                                                                                                                           | 37,933                                                                                                                                                                                                            | 72,287     | 75,975     |
| Provision for credit losses                                                                                                                                 | 3,465                                                                                                                                                                                                            | 3,008                                                                                                                                                                                                             | 6,925      | 5,925      |
|      Net  interest income after provision for credit losses                                                                             | 31,976                                                                                                                                                                                                           | 34,925                                                                                                                                                                                                            | 65,362     | 70,050     |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| Securities gains                                                                                                                                            | 3,221                                                                                                                                                                                                            | 576                                                                                                                                                                                                               | 5,455      | 615        |
| Trust income                                                                                                                                                | 1,284                                                                                                                                                                                                            | 1,342                                                                                                                                                                                                             | 2,469      | 2,555      |
| Service charges on deposits                                                                                                                                 | 3,255                                                                                                                                                                                                            | 2,746                                                                                                                                                                                                             | 6,104      | 5,439      |
| Insurance commissions                                                                                                                                       | 848                                                                                                                                                                                                              | 951                                                                                                                                                                                                               | 1,645      | 1,807      |
| Income from bank owned life insurance                                                                                                                       | 1,052                                                                                                                                                                                                            | 1,173                                                                                                                                                                                                             | 2,098      | 2,242      |
| Other income                                                                                                                                                | 3,538                                                                                                                                                                                                            | 3,149                                                                                                                                                                                                             | 6,498      | 5,668      |
|      Total  other income                                                                                                                | 13,198                                                                                                                                                                                                           | 9,937                                                                                                                                                                                                             | 24,269     | 18,326     |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| Salaries and employee benefits                                                                                                                              | 15,146                                                                                                                                                                                                           | 14,767                                                                                                                                                                                                            | 30,481     | 29,410     |
| Net occupancy expense                                                                                                                                       | 1,771                                                                                                                                                                                                            | 1,613                                                                                                                                                                                                             | 3,745      | 3,299      |
| Furniture and equipment expense                                                                                                                             | 2,544                                                                                                                                                                                                            | 2,568                                                                                                                                                                                                             | 5,096      | 4,966      |
| Data processing expense                                                                                                                                     | 621                                                                                                                                                                                                              | 484                                                                                                                                                                                                               | 1,148      | 926        |
| Pennsylvania shares tax expense                                                                                                                             | 1,081                                                                                                                                                                                                            | 996                                                                                                                                                                                                               | 2,141      | 1,991      |
| Intangible amortization                                                                                                                                     | 6                                                                                                                                                                                                                | 68                                                                                                                                                                                                                | 13         | 188        |
| Litigation settlement                                                                                                                                       | 0                                                                                                                                                                                                                | 0                                                                                                                                                                                                                 | (610)      | 8,000      |
| Restructuring charges                                                                                                                                       | 0                                                                                                                                                                                                                | 3,116                                                                                                                                                                                                             | 0          | 3,116      |
| Other operating expense                                                                                                                                     | 7,213                                                                                                                                                                                                            | 8,003                                                                                                                                                                                                             | 14,140     | 15,162     |
|      Total  other expenses                                                                                                              | 28,382                                                                                                                                                                                                           | 31,615                                                                                                                                                                                                            | 56,154     | 67,058     |
| Income before income taxes                                                                                                                                  | 16,792                                                                                                                                                                                                           | 13,247                                                                                                                                                                                                            | 33,477     | 21,318     |
| Applicable income taxes                                                                                                                                     | 3,365                                                                                                                                                                                                            | 2,290                                                                                                                                                                                                             | 6,746      | 2,723      |
|      Net  income                                                                                                                        | $13,427                                                                                                                                                                                                          | $10,957                                                                                                                                                                                                           | $26,731    | $18,595    |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| Average shares outstanding                                                                                                                                  | 58,769,160                                                                                                                                                                                                       | 58,359,322                                                                                                                                                                                                        | 58,736,392 | 58,251,440 |
| Average shares outstanding assuming dilution                                                                                                                | 59,101,475                                                                                                                                                                                                       | 58,851,264                                                                                                                                                                                                        | 59,018,324 | 58,669,047 |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***Per Share Data:***                                                                                                                                       |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| Basic earnings per share                                                                                                                                    | $0.23                                                                                                                                                                                                            | $0.19                                                                                                                                                                                                             | $0.46      | $0.32      |
| Diluted earnings per share                                                                                                                                  | $0.23                                                                                                                                                                                                            | $0.19                                                                                                                                                                                                             | $0.45      | $0.32      |
| Cash dividends per share                                                                                                                                    | $0.155                                                                                                                                                                                                           | $0.150                                                                                                                                                                                                            | $0.310     | $0.300     |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| FIRST COMMONWEALTH FINANCIAL CORPORATION                                                                                                                    |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| CONSOLIDATED SELECTED FINANCIAL DATA                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| (Dollar Amounts in Thousands, except per share data)                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***Asset Quality  Data At  June 30,***                                                                                                                 |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              |       |       |
| Loans on nonaccrual basis                                                                                                                                   | $20,810                                                                                                                                                                                                          | $25,705                                                                                                                                                                                                           |       |       |
| Past due loans                                                                                                                                              | 14,778                                                                                                                                                                                                           | 14,987                                                                                                                                                                                                            |       |       |
| Renegotiated loans                                                                                                                                          | 209                                                                                                                                                                                                              | 828                                                                                                                                                                                                               |       |       |
|      Total  nonperforming loans                                                                                                         | $35,797                                                                                                                                                                                                          | $41,520                                                                                                                                                                                                           |       |       |
| Loans outstanding at end of period                                                                                                                          | $2,621,569                                                                                                                                                                                                       | $2,612,965                                                                                                                                                                                                        |       |       |
| Average loans outstanding (year-to-date)                                                                                                                    | $2,644,059                                                                                                                                                                                                       | $2,588,873                                                                                                                                                                                                        |       |       |
| Allowance for credit losses                                                                                                                                 | $35,604                                                                                                                                                                                                          | $34,302                                                                                                                                                                                                           |       |       |
| Nonperforming loans as percent of total loans                                                                                                               | 1.37%                                                                                                                                                                                                            | 1.59%                                                                                                                                                                                                             |       |       |
| Net charge-offs (year-to-date)                                                                                                                              | $5,817                                                                                                                                                                                                           | $5,780                                                                                                                                                                                                            |       |       |
| Net charge-offs as percent of average loans                                                                                                                 | 0.22%                                                                                                                                                                                                            | 0.22%                                                                                                                                                                                                             |       |       |
| Allowance for credit losses as percent of average  loans                                                                                                    |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|     Outstanding                                                                                                                                   | 1.35%                                                                                                                                                                                                            | 1.32%                                                                                                                                                                                                             |       |       |
| Allowance for credit losses as percent of  nonperforming                                                                                                    |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|    Loans                                                                                                                                          | 99.46%                                                                                                                                                                                                           | 82.62%                                                                                                                                                                                                            |       |       |
| Other real estate owned                                                                                                                                     | $1,714                                                                                                                                                                                                           | $1,468                                                                                                                                                                                                            |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***End of Period  Data At  June 30,***                                                                                                                 |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              |       |       |
| Assets                                                                                                                                                      | $4,830,764                                                                                                                                                                                                       | $4,584,972                                                                                                                                                                                                        |       |       |
| Earning assets                                                                                                                                              | $4,586,430                                                                                                                                                                                                       | $4,347,675                                                                                                                                                                                                        |       |       |
| Securities                                                                                                                                                  | $1,963,624                                                                                                                                                                                                       | $1,733,966                                                                                                                                                                                                        |       |       |
| Loans, net of unearned income                                                                                                                               | $2,621,569                                                                                                                                                                                                       | $2,612,965                                                                                                                                                                                                        |       |       |
| Total deposits                                                                                                                                              | $3,219,809                                                                                                                                                                                                       | $3,183,634                                                                                                                                                                                                        |       |       |
|       Non-interest bearing deposits                                                                                                     | $396,794                                                                                                                                                                                                         | $394,071                                                                                                                                                                                                          |       |       |
|      NOW,  Moneymarket & Savings                                                                                                    | $1,256,014                                                                                                                                                                                                       | $1,165,686                                                                                                                                                                                                        |       |       |
|     Time  deposits                                                                                                                           | $1,567,001                                                                                                                                                                                                       | $1,623,877                                                                                                                                                                                                        |       |       |
| Short-term borrowings                                                                                                                                       | $594,210                                                                                                                                                                                                         | $305,647                                                                                                                                                                                                          |       |       |
| Long-term debt                                                                                                                                              | $578,408                                                                                                                                                                                                         | $681,215                                                                                                                                                                                                          |       |       |
| Other liabilities                                                                                                                                           | $26,875                                                                                                                                                                                                          | $26,958                                                                                                                                                                                                           |       |       |
| Shareholders' equity                                                                                                                                        | $411,462                                                                                                                                                                                                         | $387,518                                                                                                                                                                                                          |       |       |
| Shares outstanding                                                                                                                                          | 59,071,871                                                                                                                                                                                                       | 58,779,955                                                                                                                                                                                                        |       |       |
| Book value per share                                                                                                                                        | $6.97                                                                                                                                                                                                            | $6.59                                                                                                                                                                                                             |       |       |
| Market value per share                                                                                                                                      | $12.96                                                                                                                                                                                                           | $13.49                                                                                                                                                                                                            |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| FIRST COMMONWEALTH FINANCIAL CORPORATION                                                                                                                    |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| CONSOLIDATED SELECTED FINANCIAL DATA                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| (Dollar Amounts in Thousands, except per share data)                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***Quarter To Date  Average Balances At  June 30,***                                                                                                   |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              |       |       |
| Assets                                                                                                                                                      | $4,686,742                                                                                                                                                                                                       | $4,560,665                                                                                                                                                                                                        |       |       |
| Earning assets                                                                                                                                              | $4,424,688                                                                                                                                                                                                       | $4,315,192                                                                                                                                                                                                        |       |       |
| Securities                                                                                                                                                  | $1,768,458                                                                                                                                                                                                       | $1,704,638                                                                                                                                                                                                        |       |       |
| Loans, net of unearned income                                                                                                                               | $2,654,956                                                                                                                                                                                                       | $2,608,616                                                                                                                                                                                                        |       |       |
| Deposits                                                                                                                                                    | $3,194,329                                                                                                                                                                                                       | $3,149,251                                                                                                                                                                                                        |       |       |
| Shareholders' Equity                                                                                                                                        | $414,484                                                                                                                                                                                                         | $384,492                                                                                                                                                                                                          |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***Year To Date  Average Balances At  June 30,***                                                                                                      |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              |       |       |
| Assets                                                                                                                                                      | $4,608,493                                                                                                                                                                                                       | $4,550,514                                                                                                                                                                                                        |       |       |
| Earning assets                                                                                                                                              | $4,347,692                                                                                                                                                                                                       | $4,305,643                                                                                                                                                                                                        |       |       |
| Securities                                                                                                                                                  | $1,702,130                                                                                                                                                                                                       | $1,714,545                                                                                                                                                                                                        |       |       |
| Loans, net of unearned income                                                                                                                               | $2,644,059                                                                                                                                                                                                       | $2,588,873                                                                                                                                                                                                        |       |       |
| Deposits                                                                                                                                                    | $3,130,275                                                                                                                                                                                                       | $3,117,399                                                                                                                                                                                                        |       |       |
| Shareholders' Equity                                                                                                                                        | $412,344                                                                                                                                                                                                         | $383,725                                                                                                                                                                                                          |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| ***Profitability  Ratios***                                                                                                                                 |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
|                                                                                                                                                        |                                  For the Quarter |                                  For the 6 Months |
|                                                                                                                                                        |                                  Ended June 30,  |                                  Ended June 30,   |
|                                                                                                                                                        | 2003                                                                                                                                                                                                             | 2002                                                                                                                                                                                                              | 2003       | 2002       |
| Return on average assets                                                                                                                                    | 1.15%                                                                                                                                                                                                            | 0.96%                                                                                                                                                                                                             | 1.17%      | 0.82%      |
| Return on average equity                                                                                                                                    | 12.99%                                                                                                                                                                                                           | 11.43%                                                                                                                                                                                                            | 13.07%     | 9.77%      |
| Yield on earning assets (FTE)                                                                                                                               | 5.81%                                                                                                                                                                                                            | 6.73%                                                                                                                                                                                                             | 5.98%      | 6.78%      |
| Total cost of funds                                                                                                                                         | 2.66%                                                                                                                                                                                                            | 3.39%                                                                                                                                                                                                             | 2.72%      | 3.45%      |
| Net interest margin (FTE)                                                                                                                                   | 3.49%                                                                                                                                                                                                            | 3.77%                                                                                                                                                                                                             | 3.63%      | 3.79%      |
| Efficiency ratio (FTE) (a)                                                                                                                                  | 54.95%                                                                                                                                                                                                           | 62.63%                                                                                                                                                                                                            | 54.78%     | 67.50%     |
| Fully tax equivalent adjustment                                                                                                                             | $3,013                                                                                                                                                                                                           | $2,608                                                                                                                                                                                                            | $5,959     | $5,049     |
|                                                                                                                                                        |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |       |
| (a) Efficiency ratio is "total other  expenses" as a percentage of total revenue.                                                                 |                                                                                                                                                                                                             |                                                                                                                                                                                                              |       |
|      Total  revenue consists of "net interest income, on a fully tax-equivalent  basis", plus "total other income". |                                                                                                                                                                                                             |

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