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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. 

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%. 

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 

