8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 29, 2010

First Commonwealth Financial Corporation

(Exact name of registrant as specified in its charter)

Pennsylvania	001-11138	25-1428528
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

22 North Sixth Street, Indiana, PA	15701
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (724) 349-7220

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 29, 2010, First Commonwealth Financial Corporation issued a press release announcing its earnings for the three and six month periods ended June 30, 2010. A copy of this press release and the related earnings tables are furnished as Exhibit 99.1 to this report and incorporated herein by reference.

Item 9.01 FINANCIAL STATEMENTS AND EXHIBITS

Exhibits

99.1    Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 29, 2010

FIRST COMMONWEALTH FINANCIAL CORPORATION
By:	/s/ Robert E. Rout
Name:	Robert E. Rout
Title:	Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

*** NEWS RELEASE ***

TO:   FROM:   RELEASE DATE/TIME: All Area News Agencies   First Commonwealth Financial Corporation   July 29, 2010/8:30 AM

FIRST COMMONWEALTH ANNOUNCES SECOND QUARTER 2010 IMPROVED FINANCIAL RESULTS

Indiana, PA., July 29, 2010 – First Commonwealth Financial Corporation (NYSE: FCF) today reported net income of $13.5 million, or $0.15 diluted earnings per share, for the second quarter ended June 30, 2010 compared to a net loss of $18.6 million, or $0.22 per share, in the second quarter of 2009. For the six months ended June 30, 2010, net income was $0.4 million, compared to a net loss of $16.9 million or $0.20 per share in the first six months of 2009. The increase in net income was primarily the result of improved net interest income, a lower provision for credit losses, a decrease in net securities impairment losses on investments in pooled trust preferred collateralized debt obligations and a decrease in Federal Deposit Insurance Corporation (“FDIC”) premiums due to the special assessment of $2.9 million recorded in the second quarter 2009.

John J. Dolan, President and Chief Executive Officer stated, “We are very pleased to report favorable financial results for the second quarter. We have made significant progress toward the resolution of the relatively small number of troubled credits that have caused disproportionate earnings pressure over the last few quarters and have obscured very favorable trends in substantially all other areas of our community banking operations. I couldn’t be more proud of how well First Commonwealth employees are performing during this unprecedented economic period as we continue to move the organization forward.”

Credit Quality

The provision for credit losses was $4.0 million and $49.0 million for the second quarter and year to date periods ended June 30, 2010, respectively. The primary components of provision expense for the quarter were:

• A $2.7 million specific reserve for a $3.7 million line of credit to a food processing company located in Pennsylvania.

• An additional specific reserve of $1.8 million for a $39.6 million condominium construction project in south Florida based upon updated appraisal values. During the

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second quarter of 2010 this loan was substantially charged-off by $34.2 million and we are in the process of exercising default remedies.

• Resolution of three other credits that provided $3.6 million from either recoveries on previously charged-off loans or release of previously established specific reserves. Included in the $3.6 million is $2.7 million of proceeds from bankruptcy proceedings on two loans and $0.9 million on a troubled loan that paid off.

For the quarter ended June 30, 2010, nonperforming loans decreased $34.2 million to $133.2 million from March 31, 2010 primarily a result of the $34.2 million credit loss on the previously mentioned Florida condominium construction loan. Nonperforming loans as a percentage of total loans were 3.00%, 3.64% and 1.81% for the periods ended June 30, 2010, March 31, 2010 and June 30, 2009, respectively.

Other real estate owned (“OREO”) acquired through foreclosure was $21.5 million at June 30, 2010 and $18.4 million is related to one property that is currently under a sales agreement.

During the second quarter of 2010, net credit losses were $34.7 million compared to $6.7 million in the second quarter of 2009; $34.2 million in the second quarter of 2010 was related to the aforementioned Florida condominium construction loan. For the six months ended June 30, 2010 net credit losses were $42.6 million, or 1.87% of average loans on an annualized basis, compared to $26.2 million, or 1.18%, for the same period in 2009. The allowance for credit losses as a percentage of total loans outstanding was 1.99%, 2.58% and 1.83% for June 30, 2010, March 31, 2010 and June 30, 2009, respectively.

Net Interest Income and Net Margin

During the second quarter of 2010 net interest income, on a fully taxable equivalent basis, increased $0.7 million, or 1%, compared to the second quarter of 2009. The increase was a result of a 15 basis point increase in the net interest margin, partially offset by a decline in average interest-earning assets. Net interest margin was 3.88%, 3.87% and 3.73% for the three-month periods ended June 30, 2010, March 31, 2010 and June 30, 2009, respectively. The improved net interest margin is the result of a more favorable deposit mix, improved loan pricing and reduced balance sheet leveraging. For the six months ended June 30, 2010 net interest income, on a fully taxable equivalent basis, increased $2.8 million, or 3%. The increase was due to a 16 basis point increase in the net interest margin, partially offset by a decline in average interest-earning assets. The net interest margin for the six months ended June 30, 2010 and 2009, respectively, was 3.88% and 3.72%.

Mr. Dolan added, “We have made noteworthy progress over the past twelve months to reduce the risk of our balance sheet by lowering our dependence on wholesale funding, reducing our exposure to large sized and out-of-market loans and problem credits. This will remain a major strategic focus going forward, will position us to capitalize on growth opportunities as economic conditions improve and will be more conducive to our community bank mission and philosophy.”

Significant changes to First Commonwealth’s balance sheet from the quarter to date average balances at June 30, 2009 to the comparable period at June 30, 2010 include:

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• A $488.7 million, or 36%, reduction in average borrowings, driven by a $273.8 million, or 20%, decrease in average investment securities and a $304.7 million, or 7%, growth in average deposits. The decline in investment securities is the result of maturities and selective sales as the risk/reward for balance sheet leveraging activities has become less attractive in the current interest rate environment.

• An increase of $40.5 million in average loans. The modest increase is a result of planned decreases in residential real estate loans, more disciplined underwriting guidelines concerning geography and size for commercial loans and weak borrower demand, generally, in the recessionary economic environment.

• Continued improvement in the mix of deposits, as a $431.7 million, or 16%, growth in lower costing transaction and savings deposits has more than offset a $127.0 million decrease in time deposits.

Non-Interest Income

Recognized net security losses, which includes net impairment losses and net securities gains, were $1.5 million, $2.3 million and $8.7 million for the three-month periods ended June 30, 2010, March 31, 2010 and June 30, 2009, respectively. These losses resulted primarily from other-than-temporary impairment charges on investments in pooled trust preferred collateralized debt obligations. Net security losses for the three month period ended June 30, 2010 include $0.6 million of realized gains from the sale and calls of municipal securities and equity securities. For the six months ended June 30, 2010 and 2009, net security losses were $3.9 million and $18.5 million, respectively.

The company’s pooled trust preferred collateralized debt obligations consist of 14 securities comprised of 371 banks and other financial institutions. Two pooled securities are senior tranches and the remaining 12 are mezzanine tranches. As of June 30, 2010, the book value of pooled securities totaled $64.4 million with an estimated fair value of $28.7 million. In the second quarter of 2010, a $2.0 million other-than-temporary impairment charge was recorded for three trust preferred collateralized debt obligations that are expected to experience a principal shortfall. The amount of impairment charge recognized represents the expected credit loss on these securities.

Non-interest income, excluding net security losses, decreased $1.2 million in the second quarter of 2010 compared to the same period last year primarily due to a $2.1 million gain from a favorable legal settlement recorded in other income in the second quarter of 2009. All other categories in non-interest income improved from the year ago period.

For the six months ended June 30, 2010, non-interest income, excluding net security losses, was essentially flat at $28.0 million when compared to the same period of 2009. Trust and insurance income increased $1.0 million as a result of increased market values of assets under management and higher commissions on annuity sales, as additional producers and an enhanced calling program yielded higher sales. Card-related interchange income increased $1.0 million due to growth in usage of debit cards, increased demand deposit accounts and larger dollar transactions. Service charges on deposit accounts increased $0.5 million due to increased overdraft and account analysis fees, and the addition of new demand deposit customers. Income from bank owned life insurance increased $0.4 million as a result of higher crediting rates. Offsetting these

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increases was the aforementioned $2.1 million gain from a legal settlement in the second quarter of 2009.

Non-Interest Expense

Non-interest expense decreased $1.7 million, or 4%, in the second quarter of 2010 from the second quarter of 2009. For the six months ended June 30, 2010, as compared to the same period last year, non-interest expense decreased $1.8 million, or 2%. Contributing to these decreases were an expense reduction initiative in 2009, declines in FDIC insurance due to the special assessment of $2.9 million recorded in the second quarter 2009 and $0.9 million of collection and repossession expenses primarily related to two loans that were transferred to other real estate owned in the first quarter of 2009. Partially offsetting these decreases were increases in data processing, software and maintenance expense of $1.1 million due to higher investments in technology solutions and a $2.2 million write-down to current fair value for an OREO property that is currently under a sales agreement.

Full time equivalent staff was 1,605 and 1,675 for the periods ended June 30, 2010 and 2009, respectively. The efficiency ratio, calculated as total non-interest expense as a percentage of total revenue (total revenue consists of net interest income, on a fully tax-equivalent basis, plus total non-interest income, excluding net impairment losses), improved to 62% for the six months ended June 30, 2010 from 65% during the same period in 2009.

Conference Call

First Commonwealth will host its quarterly conference call to discuss its financial results for the second quarter of 2010 on Thursday, July 29, 2010 at 2:00 PM (ET). The call can be accessed by dialing (toll free) 1-800-860-2442 or through our web page, http://www.fcbanking.com at our “Investor Relations” link. A replay of the call will be available one hour after the end of the conference at this web page for 30 days.

About First Commonwealth Financial Corporation

First Commonwealth Financial Corporation is a $6.1 billion financial holding company headquartered in Indiana, Pennsylvania. It operates 115 retail branch offices in 15 counties in western and central Pennsylvania through First Commonwealth Bank, a Pennsylvania chartered bank and trust company. Financial services and insurance products are also provided through First Commonwealth Insurance Agency and First Commonwealth Financial Advisors, Inc.

Forward-Looking Statements

This release contains forward-looking statements about First Commonwealth’s future plans, strategies and financial performance. These statements can be identified by the fact that they do not relate strictly to historical or current facts and often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Such statements are based on assumptions and involve risks and uncertainties, many of which are beyond our control and which may cause actual results, performance or achievements to differ materially from the

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results, performance or achievements contemplated by the forward-looking statements. These risks and uncertainties include, among other things, the following: continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of our loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in our investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; management’s ability to effectively manage credit risk, market risk, operational risk, legal risk, and regulatory and compliance risk; and other risks and uncertainties described in our reports filed with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. Forward-looking statements speak only as of the date on which they are made. First Commonwealth undertakes no obligation to update any forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

CONTACT: First Commonwealth Financial Corporation

Investor Relations: Robert E. Rout, Executive Vice President and Chief Financial Officer 724-349-7220

Media: Susie Barbour, Communications & Media Relations Supervisor 724-463-5618

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FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

(dollars in thousands, except share data)

	For the Quarter Ended															For the Six Months Ended
	June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			June 30, 2009			June 30, 2010			June 30, 2009
Interest Income
Interest and fees on loans	$	57,367		$	57,408		$	58,877		$	57,085		$	57,793		$	114,775		$	116,068
Interest and dividends on investments:
Taxable interest		9,664			10,467			11,300			12,406			13,177			20,131			26,885
Interest exempt from federal income taxes		1,839			2,151			2,351			2,540			2,660			3,990			5,554
Dividends		19			27			25			31			89			46			152
Interest on bank deposits		48			25			4			1			1			73			2
Total interest income		68,937			70,078			72,557			72,063			73,720			139,015			148,661
Interest Expense
Interest on deposits		13,067			13,580			15,338			17,014			17,874			26,647			37,450
Interest on short-term borrowings		616			852			789			947			1,133			1,468			2,480
Interest on subordinated debentures		1,390			1,375			1,398			1,447			1,559			2,765			3,325
Interest on other long-term debt		1,268			1,173			1,592			1,672			1,666			2,441			3,319
Total interest on long-term debt		2,658			2,548			2,990			3,119			3,225			5,206			6,644
Total interest expense		16,341			16,980			19,117			21,080			22,232			33,321			46,574
Net Interest Income		52,596			53,098			53,440			50,983			51,488			105,694			102,087
Tax equivalent adjustment		2,639			2,798			2,975			3,052			3,091			5,437			6,276
Net Interest Income (FTE) (a)		55,235			55,896			56,415			54,035			54,579			111,131			108,363
Provision for credit losses		4,010			45,020			21,059			23,020			48,248			49,030			56,490
Net Interest Income after provision for credit losses (FTE) (a)		51,225			10,876			35,356			31,015			6,331			62,101			51,873
Non-Interest Income
Change in fair value on impaired securities		190			(1,517	)		(4,091	)		(25,473	)		(14,421	)		(1,327	)		(43,010	)
Noncredit-related (gains) losses on securities not expected to be sold (recognized in other comprehensive income)		(2,300	)		(1,233	)		(1,564	)		13,570			5,660			(3,533	)		24,383
Net impairment losses		(2,110	)		(2,750	)		(5,655	)		(11,903	)		(8,761	)		(4,860	)		(18,627	)
Net securities gains		562			420			149			44			56			982			80
Trust income		1,398			1,494			1,201			1,366			1,151			2,892			2,238
Service charges on deposit accounts		4,603			4,152			4,642			4,555			4,406			8,755			8,243
Insurance and retail brokerage commissions		1,866			1,862			1,819			2,068			1,756			3,728			3,372
Income from bank owned life insurance		1,301			1,257			1,192			1,078			1,034			2,558			2,172
Card related interchange income		2,686			2,320			2,301			2,224			2,138			5,006			4,034
Other income		2,343			2,696			3,220			1,569			4,935			5,039			7,943
Total non-interest income		12,649			11,451			8,869			1,001			6,715			24,100			9,455
Non-Interest Expense
Salaries and employee benefits		21,047			22,327			21,073			21,405			21,081			43,374			43,581
Net occupancy expense		3,539			3,893			3,262			3,263			3,528			7,432			7,528
Furniture and equipment expense		3,101			3,165			3,012			3,121			2,977			6,266			5,952
Data processing expense		1,478			1,437			1,254			1,136			1,165			2,915			2,297
Pennsylvania shares tax expense		1,457			1,057			1,361			1,310			1,312			2,514			2,643
Intangible amortization		576			657			656			684			743			1,233			1,486
Collection and repossession expense		794			923			915			1,444			1,750			1,717			2,651
Other professional fees		1,062			1,166			796			723			847			2,228			1,910
FDIC insurance		2,012			1,963			2,041			2,046			4,863			3,975			6,384
Loss on sale or write-down of assets		2,314			83			140			50			83			2,397			112
Other expenses		6,298			6,568			6,013			6,763			6,986			12,866			14,139
Total non-interest expense		43,678			43,239			40,523			41,945			45,335			86,917			88,683
Income (Loss) before income taxes		20,196			(20,912	)		3,702			(9,929	)		(32,289	)		(716	)		(27,355	)
Taxable equivalent adjustment		2,639			2,798			2,975			3,052			3,091			5,437			6,276
Income tax (benefit) provision		4,015			(10,542	)		(2,002	)		(7,120	)		(16,761	)		(6,527	)		(16,699	)
Net Income (Loss)	$	13,542		($	13,168	)	$	2,729		($	5,861	)	($	18,619	)	$	374		($	16,932	)
Average Shares Outstanding		85,777,550			85,029,748			84,681,199			84,594,952			84,559,889			85,405,715			84,540,684
Average Shares Outstanding Assuming Dilution		85,788,566			85,029,748			84,681,199			84,594,952			84,559,889			85,412,371			84,540,684
Per Share Data:
Basic Earnings (Loss) Per Share	$	0.15		($	0.15	)	$	0.03		($	0.07	)	($	0.22	)	$	0.00		($	0.20	)
Diluted Earnings (Loss) Per Share	$	0.15		($	0.15	)	$	0.03		($	0.07	)	($	0.22	)	$	0.00		($	0.20	)
Cash Dividends Declared per Common Share	$	0.01		$	0.03		$	0.03		$	0.03		$	0.00		$	0.04		$	0.12

(a) FTE - Fully tax equivalent net interest income is net interest income adjusted for the effect of tax-exempt income as if it were taxable using the 35% federal income tax statutory rate.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

(dollars in thousands, except share data)

	June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			June 30, 2009
Assets
Cash and due from banks	$	86,855		$	79,136		$	89,232		$	79,694		$	84,346
Interest-bearing bank deposits		1,503			57,073			327			332			961
Securities available for sale, at fair value		996,220			1,062,713			1,133,856			1,231,015			1,264,685
Securities held to maturity, at amortized cost, (Fair value $0 at June 30, 2010 and $37,586 at December 31, 2009)		0			31,891			36,758			41,397			44,398
Other Investments		51,431			51,431			51,431			51,431			51,431
Loans:
Portfolio loans		4,434,291			4,595,409			4,636,501			4,649,034			4,536,771
Allowance for credit losses		(88,046	)		(118,725	)		(81,639	)		(90,466	)		(83,056	)
Net loans		4,346,245			4,476,684			4,554,862			4,558,568			4,453,715
Premises and equipment, net		69,203			70,357			70,742			72,074			72,379
Other real estate owned		21,548			23,191			24,287			24,138			25,565
Goodwill		159,956			159,956			159,956			159,956			159,956
Amortizing intangibles, net		6,175			6,752			7,407			8,063			8,747
Other assets		318,933			324,645			317,435			284,771			282,814
Total assets	$	6,058,069		$	6,343,829		$	6,446,293		$	6,511,439		$	6,448,997
Liabilities
Deposits (all domestic):
Noninterest-bearing	$	651,250		$	639,184		$	641,231		$	599,842		$	592,219
Interest-bearing demand deposits		107,261			99,218			107,612			93,062			99,281
Savings deposits		2,360,648			2,273,714			2,175,953			2,133,203			2,045,970
Time deposits		1,619,479			1,640,153			1,610,989			1,670,930			1,748,420
Total interest-bearing		4,087,388			4,013,085			3,894,554			3,897,195			3,893,671
Total deposits		4,738,638			4,652,269			4,535,785			4,497,037			4,485,890
Short-term borrowings		355,682			794,195			958,932			1,043,447			998,259
Subordinated debentures		105,750			105,750			105,750			105,750			105,750
Other long-term debt		155,250			119,084			168,697			179,784			180,922
Total long-term debt		261,000			224,834			274,447			285,534			286,672
Other liabilities		48,499			39,452			38,318			42,276			44,866
Total liabilities		5,403,819			5,710,750			5,807,482			5,868,294			5,815,687
Shareholders’ Equity
Preferred stock, $1 par value per share, 3,000,000 shares authorized, none issued		0			0			0			0			0
Common stock, $1 par value per share, 200,000,000 shares authorized; 86,971,329 shares issued and 86,242,139 shares outstanding at June 30, 2010; 86,600,431 shares issued and 85,151,875 shares outstanding at December 31, 2009		86,971			86,755			86,600			86,600			86,600
Additional paid-in capital		303,961			302,841			301,523			302,418			302,602
Retained earnings		271,139			258,593			278,887			278,695			287,092
Accumulated other comprehensive income (loss), net		5,236			(1,181	)		(6,045	)		(762	)		(18,618	)
Treasury stock (729,190 and 1,448,556 shares at June 30, 2010 and December 31, 2009, respectively, at cost)		(8,457	)		(8,829	)		(16,554	)		(17,706	)		(17,766	)
Unearned ESOP shares		(4,600	)		(5,100	)		(5,600	)		(6,100	)		(6,600	)
Total shareholders’ equity		654,250			633,079			638,811			643,145			633,310
Total liabilities and shareholders’ equity	$	6,058,069		$	6,343,829		$	6,446,293		$	6,511,439		$	6,448,997
Book value per share	$	7.59		$	7.36		$	7.50		$	7.56		$	7.45
Market value per share	$	5.25		$	6.71		$	4.65		$	5.68		$	6.34

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

		Quarter To Date Average Balance Sheets and Net Interest Analysis at June 30,
		(dollars in thousands)
	2010							2009
	Average Balance			Income/Expense (a)		Yield or Rate		Average Balance			Income/Expense (a)		Yield or Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	74,996		$	48	0.26	%	$	767		$	1	0.43	%
Tax-free investment securities		170,002			2,830	6.68	%		238,958			4,092	6.87	%
Taxable investment securities		907,504			9,683	4.28	%		1,112,350			13,266	4.78	%
Loans, net of unearned income (b)(c)		4,552,312			59,015	5.20	%		4,511,811			59,452	5.29	%
Total interest-earning assets	$	5,704,814		$	71,576	5.03	%	$	5,863,886		$	76,811	5.25	%
Noninterest-earning assets:
Cash		77,141							75,318
Allowance for credit losses		(123,418	)						(43,039	)
Other assets		595,621							555,202
Total noninterest-earning assets		549,344							587,481
Total Assets	$	6,254,158						$	6,451,367
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	631,324		$	211	0.13	%	$	611,384		$	431	0.28	%
Savings deposits (d)		1,790,488			3,316	0.74	%		1,430,613			3,883	1.09	%
Time deposits		1,639,045			9,540	2.33	%		1,766,035			13,560	3.08	%
Short-term borrowings		661,068			616	0.37	%		1,068,183			1,133	0.43	%
Long-term debt		206,634			2,658	5.16	%		288,263			3,225	4.49	%
Total interest-bearing liabilities	$	4,928,559		$	16,341	1.33	%	$	5,164,478		$	22,232	1.73	%
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)		640,105							588,246
Other liabilities		39,797							39,823
Shareholders’ equity		645,697							658,820
Total noninterest-bearing funding sources		1,325,599							1,286,889
Total Liabilities and Shareholders’ Equity	$	6,254,158						$	6,451,367
Net Interest Income and Net Yield on Interest-Earning Assets				$	55,235	3.88	%				$	54,579	3.73	%

(a) Income on interest-earning assets is shown on a fully tax equivalent basis using the 35% federal income tax statutory rate.

(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets.

(c) Loan income includes loan fees.

(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits which were made for regulatory purposes.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

		Year To Date Average Balance Sheets and Net Interest Analysis at June 30,
		(dollars in thousands)
	2010							2009
	Average Balance			Income/Expense (a)		Yield or Rate		Average Balance			Income/Expense (a)		Yield or Rate
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	57,005		$	73	0.26	%	$	790		$	2	0.47	%
Tax-free investment securities		184,296			6,139	6.72	%		248,540			8,544	6.93	%
Taxable investment securities		942,203			20,177	4.32	%		1,131,230			27,037	4.82	%
Loans, net of unearned income (b)(c)		4,593,781			118,063	5.18	%		4,486,216			119,354	5.37	%
Total interest-earning assets		5,777,285			144,452	5.04	%		5,866,776			154,937	5.33	%
Noninterest-earning assets:
Cash		76,322							74,721
Allowance for credit losses		(103,920	)						(48,187	)
Other assets		591,143							541,810
Total noninterest-earning assets		563,545							568,344
Total Assets	$	6,340,830						$	6,435,120
Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand deposits (d)	$	615,618		$	416	0.14	%	$	598,399		$	980	0.33	%
Savings deposits (d)		1,758,365			6,870	0.79	%		1,373,299			8,294	1.22	%
Time deposits		1,639,283			19,361	2.38	%		1,796,155			28,176	3.16	%
Short-term borrowings		761,066			1,468	0.39	%		1,100,660			2,480	0.45	%
Long-term debt		249,778			5,206	4.20	%		289,133			6,644	4.63	%
Total interest-bearing liabilities		5,024,110			33,321	1.34	%		5,157,646			46,574	1.82	%
Noninterest-bearing liabilities and shareholders’ equity:
Noninterest-bearing demand deposits (d)		629,202							574,488
Other liabilities		37,799							42,587
Shareholders’ equity		649,719							660,399
Total noninterest-bearing funding sources		1,316,720							1,277,474
Total Liabilities and Shareholders’ Equity	$	6,340,830						$	6,435,120
Net Interest Income and Net Yield on Interest-Earning Assets				$	111,131	3.88	%				$	108,363	3.72	%

(a) Yields on interest-earning assets have been computed on a tax equivalent basis using the 35% federal income tax statutory rate.

(b) Income on nonaccrual loans is accounted for on the cash basis, and the loan balances are included in interest-earning assets.

(c) Loan income includes loan fees.

(d) Average balances do not include reallocations from noninterest-bearing demand deposits and interest-bearing demand deposits into savings deposits which were made for regulatory purposes.

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

		Asset Quality Data
		(dollars in thousands)
	June 30, 2010			March 31, 2010			December 31, 2009			September 30, 2009			June 30, 2009
Nonperforming Loans:
Loans on nonaccrual basis	$	132,555		$	166,779		$	147,937		$	133,200		$	81,285
Troubled debt restructured loans		599			609			619			627			637
Total nonperforming loans	$	133,154		$	167,388		$	148,556		$	133,827		$	81,922
Loans past due in excess of 90 days and still accruing	$	15,045		$	13,371		$	15,154		$	14,369		$	14,978
Loans outstanding at end of period	$	4,434,291		$	4,595,409		$	4,636,501		$	4,649,034		$	4,536,771
Average loans outstanding	$	4,593,781		$	4,635,712		$	4,557,227		$	4,524,567		$	4,486,216
Allowance for credit losses	$	88,046		$	118,725		$	81,639		$	90,466		$	83,056
Nonperforming loans as a percentage of total loans		3.00	%		3.64	%		3.20	%		2.88	%		1.81	%
Provision for credit losses (Year To Date)	$	49,030		$	45,020		$	100,569		$	79,510		$	56,490
Net credit losses (Year To Date)	$	42,623		$	7,934		$	71,689		$	41,803		$	26,193
Net credit losses as a percentage of average loans outstanding (annualized)		1.87	%		0.69	%		1.57	%		1.24	%		1.18	%
Allowance for credit losses as a percentage of end-of-period loans outstanding		1.99	%		2.58	%		1.76	%		1.95	%		1.83	%
Allowance for credit losses as a percentage of nonperforming loans		66.12	%		70.93	%		54.96	%		67.60	%		101.38	%
Other real estate owned	$	21,548		$	23,191		$	24,287		$	24,138		$	25,565
Nonperforming Securities:
Nonaccrual securities at market value	$	6,483		$	6,553		$	3,258		$	3,503		$	530

	Profitability Ratios
	(dollars in thousands)
	For the Quarter Ended										For the Six Months Ended
	June 30, 2010		March 31, 2010		December 31, 2009		September 30, 2009		June 30, 2009		June 30, 2010		June 30, 2009
Return on average assets (a)	0.87	%	-0.83	%	0.17	%	-0.36	%	-1.16	%	0.01	%	-0.53	%
Return on average equity (a)	8.41	%	-8.17	%	1.65	%	-3.58	%	-11.34	%	0.12	%	-5.17	%
Net interest margin (b)	3.88	%	3.87	%	3.78	%	3.62	%	3.73	%	3.88	%	3.72	%
Efficiency ratio (c)	62.40	%	61.68	%	57.12	%	62.66	%	64.71	%	62.04	%	65.00	%

(a) Annualized.

(b) Net interest margin has been computed on a tax equivalent basis using the 35% federal income tax statutory rate.

(c) Efficiency ratio is “total non-interest expense” as a percentage of total revenue.

Total revenue consists of “net interest income, on a fully tax-equivalent basis,” plus “total non-interest income,” excluding “net impairment losses.”

FIRST COMMONWEALTH FINANCIAL CORPORATION

CONSOLIDATED SELECTED FINANCIAL DATA

		Capital Ratios (dollars in thousands)
	As of June 30, 2010				Regulatory Minimum				Well Capitalized				Excess Over Well Capitalized
	Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount		Ratio		Capital Amount
Total Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	615,778	11.6	%	$	423,698	8.0	%		N/A	N/A			N/A
First Commonwealth Bank	$	596,475	11.4	%	$	418,802	8.0	%	$	523,502	10.0	%	$	72,973
Tier I Capital to Risk Weighted Assets
First Commonwealth Financial Corporation	$	549,299	10.4	%	$	211,849	4.0	%		N/A	N/A			N/A
First Commonwealth Bank	$	530,751	10.1	%	$	209,401	4.0	%	$	314,101	6.0	%	$	216,650
Tier I Capital to Average Assets
First Commonwealth Financial Corporation	$	549,299	9.0	%	$	243,521	4.0	%		N/A	N/A			N/A
First Commonwealth Bank	$	530,751	8.8	%	$	240,980	4.0	%	$	301,225	5.0	%	$	229,526