<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
SCHEDULE 13D
UNDER THE EXCHANGE ACT OF 1934
(Amendment No. )
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FIRST ALLIANCE CORPORATION
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(Name of Issuer)
CLASS A COMMON STOCK, $.01 PAR VALUE
-----------------------------------------------------------
(Title and Class of Securities)
317936102
----------------
(CUSIP Number)
Richard J. Perry, Jr, Esquire
Perry & Associates, P.C.
1826 Jefferson Place, N.W.
Washington, D. C. 20036
(202) 775-8109
- --------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
August 5, 1998
-------------------------------------------------------
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
Check the following box if a fee is being paid with the statement [X]. (A fee is
not required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Page 1 of 15 Pages Exhibit Index at page 14
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<TABLE>
<CAPTION>
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CUSIP NUMBER 317936102 PAGE 2 OF 15 PAGES
------- --------
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<S> <C>
1. NAME OF REPORTING PERSON / S.S. OR I.R.S. IDENTIFICATION OF ABOVE
PERSON
Financial Institution Partners II, L.P. / 36-4131559
- ----------------------------------------------------------------------------------------------------------------------
2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
--------
(b)
--------
- ----------------------------------------------------------------------------------------------------------------------
3. SOURCE OF FUNDS
WC OO
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4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS
2(d) AND 2(e)
NO
- ----------------------------------------------------------------------------------------------------------------------
5. CITIZENSHIP OR PLACE OF ORIGIN
Organized: State of Delaware
- ----------------------------------------------------------------------------------------------------------------------
NUMBER OF 6. SOLE VOTING POWER
SHARES
OWNED BY -------------------------------------------------------------------------------------------------------
EACH 7. SHARED VOTING POWER
REPORTING 535,900 SHARES
PERSON WITH -------------------------------------------------------------------------------------------------------
8. SOLE DISPOSITIVE POWER
-------------------------------------------------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
535,900 SHARES
- ----------------------------------------------------------------------------------------------------------------------
10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING
PERSON
535,900 SHARES
- ----------------------------------------------------------------------------------------------------------------------
11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
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12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
6.86%
- ----------------------------------------------------------------------------------------------------------------------
13. TYPE OF REPORTING PERSON
PN
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</TABLE>
Page 2 of 15 Pages
<PAGE> 3
<TABLE>
<CAPTION>
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CUSIP NUMBER 317936102 PAGE 3 OF 15 PAGES
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<S> <C>
1. NAME OF REPORTING PERSON / S.S. OR I.R.S. IDENTIFICATION OF ABOVE PERSON
Hovde Capital, L.L.C. / 91-1825712
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2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a)
-------
(b)
-------
- -----------------------------------------------------------------------------------------------------------------------
3. SOURCE OF FUNDS
AF
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4. IS DISCLOSURE OF LEGAL PROCEEDING REQUIRED PURSUANT TO ITEMS
2(d) AND 2(e)?
NO
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5. CITIZENSHIP OR PLACE OF ORIGIN
Organized: State of Delaware
- -----------------------------------------------------------------------------------------------------------------------
NUMBER OF 6. SOLE VOTING POWER
SHARES
OWNED BY --------------------------------------------------------------------------------------------------------
EACH 7. SHARED VOTING POWER
REPORTING
PERSON WITH 535,900 SHARES
--------------------------------------------------------------------------------------------------------
8. SOLE DISPOSITIVE POWER
--------------------------------------------------------------------------------------------------------
9. SHARED DISPOSITIVE POWER
535,900 SHARES
- -----------------------------------------------------------------------------------------------------------------------
10. AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
535,900 SHARES
- -----------------------------------------------------------------------------------------------------------------------
11. DOES THE AGGREGATE AMOUNT IN BOX 10 EXCLUDE CERTAIN SHARES?
NO
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12. PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (10)
6.86%
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13. TYPE OF REPORTING PERSON
CO
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</TABLE>
Page 3 of 15 Pages
<PAGE> 4
ITEM 1. SECURITY AND BANK
The class of security to which this statement relates is the Class A Common
Stock, $.01 par value per share (the "Shares"), of First Alliance Corporation
(the "Company"). The address of the principal executive offices of the Company
is 17305 Von Karman Avenue, Irvine, California 92614.
ITEM 2. IDENTITY AND BACKGROUND
The persons filing this statement are Financial Institution Partners II,
L.P. (the "Limited Partnership") and Hovde Capital, L.L.C., (the "General
Partner"), who are collectively referred to herein as the "Reporting Persons."
The Limited Partnership is a Delaware limited partnership formed for the purpose
of investing in, among other things, the equity securities of various financial
institutions. The General Partner, a Nevada limited liability company, is the
general partner of the Limited Partnership.
Attached as Schedule 1 hereto and incorporated by reference herein is a
list containing the principal business and the address of its principal business
and office for the Limited Partnership and the General Partner, as well as
information required by (a) through (f) of this Item as to each executive
officer, director and/or controlling person of the General Partner. The General
Partner controls the Limited Partnership.
None of the Reporting Persons or executive officers, directors or
controlling persons of the General Partner have, during the last five years,
been convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors) or been a party to a civil proceeding of a judicial or
administrative body of competent jurisdiction and as a result of such proceeding
was or is subject to a judgment, decree or final order enjoining future
violations of, or prohibiting or mandating activities subject to, federal or
state securities laws or finding of any violation with respect to such laws.
The Reporting Persons do not believe that they constitute a "group" within
the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934.
Nevertheless, the Reporting Persons are making this filing because of the
possibility that they may be deemed a group, although each of the Reporting
Persons disclaims any membership in, and the existence of, such a group. Neither
the making of this filing nor any statement contained herein shall be deemed to
be an admission by any of the Reporting Persons that a group exists.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
Information regarding the source and amount of funds used by the Reporting
Persons in acquiring beneficial ownership of their Shares is set forth in
Schedule 2 attached hereto and incorporated herein by reference.
Page 4 of 15 Pages
<PAGE> 5
ITEM 4. PURPOSE OF TRANSACTION
The Reporting Persons have acquired the Shares for investment purposes and
as set forth below:
(a) Each of the Reporting Persons may independently acquire additional
Shares or dispose of some or all of its/his Shares.
(b) None.
(c) None.
(d) None.
(e) None.
(f) None.
(g) None.
(h) None.
(i) None.
(j) None.
ITEM 5. INTEREST IN SECURITIES OF THE COMPANY
(a), (b) Schedule 3 hereto, which is incorporated by reference herein,
sets forth, as of August 17, 1998, information relating to the aggregate number
of Shares of the Company and the percentage of the outstanding Shares of the
Company as of such date (based upon information provided by the Company, there
are 7,811,988 Shares outstanding as of that date) as to each of the Reporting
Persons.
(c) Schedule 4 hereto, which is incorporated by reference herein,
describes, as of August 17, 1998, transactions in the Shares effected during the
past sixty (60) days by the Reporting Persons.
(d) None.
(e) Not applicable.
Each of the Reporting Persons disclaims beneficial ownership of Shares
beneficially owned by any of the other Reporting Persons.
Page 5 of 15 Pages
<PAGE> 6
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO
SECURITIES OF THE COMPANY
None.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS
Exhibit A - Consent Agreement pursuant to 17 C.F.R. Section 13d-1(f)(1)
Page 6 of 15 Pages
<PAGE> 7
Signatures
After reasonable inquiry and to the best of his/its knowledge and belief,
each of the undersigned Reporting Persons certifies that the information set
forth in this statement with respect to him/it is true, complete and correct.
FINANCIAL INSTITUTION PARTNERS II, L.P.,
by its General Partner, HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
------------------------------------
Eric D. Hovde
Its: Managing Member
HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
------------------------------------
Eric D. Hovde
Its: Managing Member
Dated: 8/17/98
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Page 7 of 15 Pages
<PAGE> 8
SCHEDULE 1
INFORMATION RELATING TO REPORTING PERSONS
- -----------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL BUSINESS AND
ADDRESS OF PRINCIPAL BUSINESS
NAME OR PRINCIPAL OFFICE
---- ------------------------------------
<S> <C>
Financial Institution Partners II, L.P. Limited partnership formed to make
investments primarily in equity
securities of financial institutions and
financial services companies.
1629 Colonial Parkway
Inverness, Illinois 60067
Organized: State of Delaware
Hovde Capital, L.L.C.
Limited liability company formed to
serve as the general partner of the
Limited Partnership.
1629 Colonial Parkway
Inverness, Illinois 60067
Incorporated: State of Delaware
</TABLE>
Page 8 of 15 Pages
<PAGE> 9
INFORMATION RELATING TO EXECUTIVE OFFICERS, DIRECTORS AND/OR CONTROLLING PERSONS
<TABLE>
<CAPTION>
NAME PRINCIPAL OCCUPATION
ADDRESS BUSINESS ADDRESS CITIZENSHIP
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Steven D. Hovde Investment banker U.S.
1629 Colonial Parkway Hovde Financial, Inc.
Inverness, Illinois 60067 1629 Colonial Parkway
Inverness, Illinois 60067
Investment banking firm
Eric D. Hovde Investment banker U.S.
1826 Jefferson Place, N.W. Hovde Financial, Inc.
Washington, D.C. 20036 1826 Jefferson Place, N.W.
Washington, D.C. 20036
Investment banking firm
</TABLE>
Page 9 of 15 Pages
<PAGE> 10
SCHEDULE 2
The following table sets forth the amount and source of funds used by
each Reporting Person in acquiring the Shares beneficially owned by it.
<TABLE>
<CAPTION>
AMOUNT
ORIGINALLY
TOTAL FINANCED/ SOURCE OF
NAME CONSIDERATION CURRENT BALANCE FUNDS*
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Financial $5,869,434.50 $ 2,934,717.25/ Working Capital/
Institution $ 2,934,717.25 Line of Credit
Partners, L.P.
Hovde Capital, $5,869,434.50 $ 2,934,717.25/ Working Capital/
Inc. $ 2,934,717.25 Line of Credit of
Affiliate
</TABLE>
- ------------------
* $2,934,717.25 was financed through a line of credit with NationsBanc
Montgomery Securities at Federal Funds rate +5/8.
Page 10 of 15 Pages
<PAGE> 11
SCHEDULE 3
The following table sets forth the number and approximate percentage
of Shares beneficially owned by each of the Reporting Persons. Each of the
Reporting Persons has shared power to vote or to direct the vote and to dispose
or to direct the disposition of the Shares of which each of them, respectively,
possesses beneficial ownership.
<TABLE>
<CAPTION>
APPROXIMATE
NAME NUMBER OF SHARES PERCENTAGE
- ---- ---------------- ----------
<S> <C> <C>
Financial Institution 535,900 6.86%
Partners, L.P.
Hovde Capital, Inc. 535,900 6.86%
</TABLE>
Page 11 of 15 Pages
<PAGE> 12
SCHEDULE 4
Description of Transactions in Shares Effected within 60 Days
The Reporting Persons effected the following transactions in the Shares within
sixty (60) days of August 17, 1998:
<TABLE>
<CAPTION>
- --------------- -------------- --------------- --------------- --------------- ---------------
Transaction Number of Transaction Transaction Broker
Date Shares Price Type
- --------------- -------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Financial 8/5/98 25,000 $6.875 Buy Jeffries &
Institution Co.
Partners II,
L.P.
-------------- --------------- --------------- --------------- ---------------
8/5/98 50,000 $6.9375 Buy Friedman,
Billings,
Ramsey &
Co.
-------------- --------------- --------------- --------------- ---------------
8/4/98 5,000 $7.125 Buy Herzog, Heine,
Geduld
-------------- --------------- --------------- --------------- ---------------
7/31/98 50,000 $7.875 Buy NationsBanc
Montgomery
Securities
-------------- --------------- --------------- --------------- ---------------
7/30/98 7,500 $8.5833 Buy Herzog, Heine,
Geduld
-------------- --------------- --------------- --------------- ---------------
7/30/98 7,500 $8.4375 Buy Friedman,
Billings,
Ramsey &
Co.
-------------- --------------- --------------- --------------- ---------------
6/26/98 8,400 $8.00 Buy Jeffries & Co.
-------------- --------------- --------------- --------------- ---------------
6/26/98 30,000 $8.00 Buy NationsBanc
Montgomery
Securities
-------------- --------------- --------------- --------------- ---------------
6/25/98 2,500 $7.625 Buy Herzog, Heine,
Geduld
-------------- --------------- --------------- --------------- ---------------
6/25/98 10,000 $7.625 Buy Jeffries & Co.
- --------------- -------------- --------------- --------------- --------------- ---------------
</TABLE>
Page 12 of 15 Pages
<PAGE> 13
<TABLE>
- --------------- -------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
6/24/98 5,000 $8.1875 Buy Herzog, Heine,
Geduld
-------------- --------------- --------------- --------------- ---------------
6/24/98 20,000 $8.125 Buy Friedman,
Billings,
Ramsey &
Co.
-------------- --------------- --------------- --------------- ---------------
6/23/98 5,000 $8.25 Buy Piper Jaffray
-------------- --------------- --------------- --------------- ---------------
6/23/98 10,000 $8.0937 Buy Friedman,
Billings,
Ramsey &
Co.
-------------- --------------- --------------- --------------- ---------------
6/23/98 15,000 $8.125 Buy Jeffries & Co.
- --------------- -------------- --------------- --------------- --------------- ---------------
</TABLE>
Page 13 of 15 Pages
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
Page
<S> <C>
Exhibit A Consent Agreement to 17 C.F.R. Section 13d-1(f)(1) 15
</TABLE>
Page 14 of 15 Pages
<PAGE> 15
EXHIBIT A
Consent Agreement Pursuant to 17 C.F.R. Section 13d-1(f)(1)
Each of the undersigned hereby consents and agrees to the filing on behalf
of each of them of the foregoing joint statement on Schedule 13D pursuant to 17
C.F.R. 13d-1(f)(1) with respect to his/its beneficial ownership of the shares of
the Issuer.
FINANCIAL INSTITUTION PARTNERS II, L.P.
by its General Partner, HOVDE CAPITAL, L.L.C..
By: /s/ Eric D. Hovde
----------------------------------
Its: Managing Member
HOVDE CAPITAL, L.L.C.
By: /s/ Eric D. Hovde
----------------------------------
Its: Managing Member
Page 15 of 15 Pages
