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1997 was a banner year for First American's shareholders. The stock price ended the year 80 percent higher than in 1996. This substantial gain signals a recognition of the company's successful expansion and initial integration of its real estate-related software and information businesses. It also reflects the achievements made by our operating groups individually. And, of course, First American's financial performance contributed too, as our revenues and net income reached a historical high, exceeding analysts' consensus estimates.
Outside factors affected our company's success during the year, as well. Low interest rates spurred increased real estate activity, benefiting many of our operations. Continuing consolidation within our industry also led to increased interest in our stock.
Adherence to our growth plans, however, played the leading role in helping us to realize our 1997 financial accomplishments. We acquired, and formed alliances with, major information companies during the year. We continued our geographic expansion, increasing our company's presence both nationally and internationally. And, we offered new products and services that allow us to increase business with our present customers and establish relationships with new ones.
Since First American became a public company in 1964, the stock has provided shareholders with a compound annual return that has consistently outperformed the S&P. An investment of $100 in First American stock in 1990 would have been worth $1,253 by the end of 1997. During the last three years, the value has increased in excess of 450 percent. Our stock performance continued this history in 1997 with exceptional results. Many of our activities during the year, noted here and in the following pages, made news. All of them contributed to our success.
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