<PAGE>
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): December 30, 1998
FIRST ALLIANCE CORPORATION
--------------------------
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-28706 33-0721183
-------- ------- ----------
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
17305 VON KARMAN AVENUE 92614
IRVINE, CALIFORNIA
------------------------- --------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (949) 224-8500
--------------
NONE
----
(Former Name or Former Address, if Changed Since Last Report)
Page 1 of 3 Pages
<PAGE>
ITEM 5. OTHER EVENTS.
First Alliance Corporation ("FACO") has announced that, as of December
30, 1998, it has entered into a $150 million warehouse credit facility with an
affiliate of Lehman Brothers Holdings Inc. ("Lehman") for a period of one year.
As partial consideration for the warehouse credit facility, FACO has agreed to
grant Lehman stock warrants equaling one percent (1%) of the total number of
diluted shares outstanding.
This warehouse credit facility is subject to certain conditions. Lehman may
terminate the credit facility if, within 45 days of the execution of the
facility, Lehman notifies FACO that it has failed to complete a satisfactory due
diligence investigation of FACO or that it has failed to obtain necessary
internal committee approvals for the credit facility. In addition, if a court or
regulatory body renders a judgment or determination that in Lehman's sole
judgment materially adversely effects the reputation of Lehman, Lehman has the
right to accelerate the repayment date for all amounts owed by FACO under the
credit facility. The proceeds from the credit facility will be used to pay off
FACO's existing warehouse credit lines and to originate future loans.
2
<PAGE>
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.
FIRST ALLIANCE CORPORATION
Date: January 25, 1998 By: /s/ Francisco Nebot
---------------------------------
Francisco Nebot
Executive Vice President and
Chief Financial Officer
