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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

(Dollar Amounts in Thousands, except per share data) 

## NOTE 17— Common Share Commitments (continued) 

During 2000, 78,380 shares of treasury stock were acquired at an average price of $11.14. Treasury shares consisting of 447,001 and 256,174 were reissued during 2002 and 2001 upon exercise of stock options. 

During 2002, 67,484 shares of treasury stock were reissued to fund the business combination described in Note 5. 

## NOTE 18— Restructuring Charges 

The Corporation incurred restructuring charges of $6,140 during 2002. These restructuring charges were comprised of the following: $4,652 of employee separation costs consisting of severance packages for 95 employees from various affiliates of the Corporation including all levels of staff from the executive management level to back office support staff, $1,068 related to realignment of the various Boards of Directors and Board committees and $420 primarily related to the write off of obsolete signage and supplies. These amounts are included as restructuring charges, as a component of Other Expenses on the Consolidated Statements of Income. 

These restructuring charges resulted from the merger of the charters of the Corporation’s two commercial banks (First Commonwealth Bank and Southwest Bank) and the adoption of a new common brand and identity for all financial services subsidiaries. 

The actual termination benefits paid and charged against the total restructuring liability for 2002 were $1,263. 

## NOTE 19— Income Taxes 

The income tax provision consists of: 

<img src='content_image/8584.jpg'>

Temporary differences between financial statement carrying amounts and tax bases of assets and liabilities that represent significant portions of the deferred tax assets (liabilities) at December 31, 2002 and 2001 were as follows: 

<img src='content_image/8588.jpg'>

The total tax provision for financial reporting purposes differs from the amount computed by applying the statutory income tax rate to income before income taxes. The differences are as follows: 

<img src='content_image/8587.jpg'>

## NOTE 20— Retirement Plans 

All employees with at least one year of service are eligible to participate in the employee stock ownership plan (“ESOP”). 

Contributions to the plan are determined by the Board of Directors, and are based upon a prescribed percentage of the annual compensation of all participants. During a prior period, the ESOP acquired shares of the Corporation’s common stock in a transaction, whereby the Corporation borrowed the required funds and concurrently loaned this amount to the ESOP. The borrowed amount represents leveraged and unallocated shares, and accordingly has been recorded as long-term debt and the offset as a reduction of common shareholders’ equity. Compensation costs related to 

