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FINANCIAL RESULTS
First American's Trust and Other Services segment fared well in 2002, despite difficult conditions within the nation's
stock markets. These financially oriented companies collectively ended the year with operating revenues of $41.7
million, an increase of 5 percent from the previous year's total. Full-year income before
income taxes and minority interests rose 10 percent to $13.5 million.
SEGMENT ACTIVITY
First American Trust, FSB continued to build its investment advisory and fiduciary business,
and provide retirement plan administration services. The company took over responsibility
for administration of The First American Corporation's Dividend Reinvestment and Direct
Purchase Plan during 2002 and, with its advanced-technology systems, will begin providing
these shareholders with online access to their account information.
First American Trust opened an additional office in the Los Angeles area during the year,
broadening its Southern California presence. It also received regulatory approval to
expand its trust and banking services into Arizona, where the company plans to open an
office during the second quarter of 2003. Also during 2002, First American Trust continued to grow the deposit and
wire services it provides to First American affiliates.
First American Capital Management, our Company's SEC-registered investment services firm, continued to offer
institutional investment advisory services and portfolio management to corporations, pension funds, and others.
This company realized record revenues and pretax profits in 2002, and was recently rated
a "5-Star Top Gun Large Cap Core Equity Manager" by PSN, an independent investment
manager database and a division of Effron Enterprises, Inc.
First Security Thrift, our F.D.I.C.-insured industrial bank, recorded an increase in net
receivables for 2002 over 2001 figures. The thrift's earnings declined slightly, however,
as interest rates remained low throughout the year — an effect that is counter-cyclical to
those First American businesses in the real estate arena. Very significantly, this company
completed the year 2002 without a single delinquent account, reflecting the quality of its
asset base.
First Security Thrift has earned a five-star rating, the highest rating available, from Bauer
Financial Reports, an independent bank analysis firm. As of year-end 2002, the thrift had earned this rating for 40
consecutive quarters.
MARKET GROWTH
In business for more than four decades, First American Trust plans to continue driving its growth through an
increase in its traditional trust and investment management business.
By year's end, First American Capital Management had increased the assets under its management to $2 billion.
The firm continues to expand its professional staff in preparation for further growth.
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