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## NOTE 16— Short-term Borrowings 

Short-term borrowings at December 31 were as follows: 

<img src='content_image/126117.jpg'>

Interest expense on short-term borrowings for the years ended December 31 is detailed below: 

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## NOTESTO CONSOLIDATED FINANCIAL STATEMENTS 

## NOTE 17— Capital Securities and Subordinated Debentures 

Capital Securities and Subordinated Debentures outstanding at December 31 are as follows: 

<img src='content_image/126116.jpg'>

The Corporation has established two trusts, First Commonwealth Capital Trust I and First Commonwealth Capital Trust II, of which 100% of the common equity is owned by the Corporation. The trusts were formed for the purpose of issuing company obligated mandatorily redeemable capital securities to third-party investors and investing the proceeds from the sale of the capital securities solely in junior subordinated debt securities (“subordinated debentures”) of the Corporation. The subordinated debentures held by each trust are the sole assets of the trust. 

Proceeds from subordinated debentures issued to First Commonwealth Capital Trust II in December 2003 are anticipated to be used to partially finance the pending business combination of GAF (See NOTE 4). Interest on the debentures is paid quarterly at a floating rate of LIBOR plus 2.85% which is reset quarterly. The Corporation may redeem the debentures, in whole or in part, at its option on or after January 23, 2009, at a redemption price equal to 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of the redemption. Deferred issuance costs of $471 are being amortized on a straight-line basis over the term of the securities. 

(Dollar Amounts in Thousands) 

