The First American Financial Corporation announces record levels of new title ...
May 15, 1986, SANTA ANA, CALIFORNIA
President D.P. Kennedy said that a sharp reduction in interest rates has resulted in a flood of loan refinancing applications as well as sharp increases in new housing sales and resales in most areas of the country.
Revenue for the first three months ended March 31, 1986, totaled $65,435,000, an increase of 22 percent over the $53,498,000 earned in the same quarter last year. This represents the largest first quarter revenue in the company's 97-year history, Kennedy said.
Net income for the first quarter was $1,313,000, or 52 cents per share, as compared with net income of $1,174,000 or 47 cents per share, for the first three-month period 1985.
Kennedy noted that in spite of the record revenue level, closing ratios were well below normal. This apparently was due to the lenders being overloaded suddenly with refinancing applications and delays by some applicants to see whether interest rates may drop even further. When the closings materialize, First American's revenue and net income should improve substantially, he said.
First American Financial's principal subsidiary, First American Title Insurance Company, is the second largest title insurer in the nation and has some 2,200 branches, subsidiaries, affiliates or agents throughout the United States and in Guam, Puerto Rico and England.
Three months ended March 31: 1986 1985 Revenue $ 65,435,000 $ 53,498,000 Net income $ 1,313,000 $ 1,174,000 Net income per share $ .52 $ .47