Index First American Profile Financial Highlights Letter to Stockholders First American's Strength in Numbers Title Information and Services Real Estate Information and Services Consumer Information and Services Management's Discussion and Analysis Selected Financial Data Common Stock Prices and Dividends Quarterly Financial Data Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Accountants Officers Board of Directors Primary Companies Stockholder Information Back Cover

notes to consolidated financial statements

 NOTE 4

Loans Receivable:

    Loans receivable are summarized as follows:

	December 31
(in thousands)		2001					2000
Real estate — mortgage	$	107,799		$	97,080
Other		42			59
		107,841			97,139
Unearned income on lease contracts		(6	)		(8	)
Allowance for loan losses		(1,050	)		(1,020	)
Participations sold		(2,340	)		(1,439	)
Deferred loan fees, net		(181	)		(220	)
	$	104,264		$	94,452

    Real estate loans are collateralized by properties located primarily in Southern California. The average yield on the Company’s loan portfolio was 10% for the years ended December 31, 2001 and 2000. Average yields are affected by amortization of discounts on loans purchased from other institutions, prepayment penalties recorded as income, loan fees amortized to income and the market interest rates charged by thrift and loan institutions.

    The fair value of loans receivable was $104.3 million and $94.6 million at December 31, 2001 and 2000, respectively, and was estimated based on the discounted value of the future cash flows using the current rates being offered for loans with similar terms to borrowers of similar credit quality.

    The allowance for loan losses is maintained at a level that is considered appropriate by management to provide for known risks in the portfolio.

    The aggregate annual maturities for loans receivable in each of the five years after December 31, 2001, are as follows:

(in thousands)	Year
	2002 2003 2004 2005 2006	$ 2,584 $ 1,818 $ 1,020 $   456 $ 3,596