The First American Financial Corporation reports record level net income and ...
May 13, 1987, SANTA ANA, CALIFORNIA
D.P. Kennedy, president, attributed this record performance to "low interest rates and the continuing effects of the Tax Reform Act which combined to maintain a high level of real estate activity."
Kennedy reported further that net income, including a one-time transitional income tax benefit of $8,996,000, or $3.24 per share, amounted to $11,846,000, or $4.27 per share. This special tax benefit resulted from the discounting of unearned premium reserves and case basis loss reserves in accordance with the "fresh start" provisions of the new Tax Act.
The First American Financial Corporation, based in Santa Ana, California, operates its title insurance business through its principal subsidiary, First American Title Insurance Company. The firm offers title services through a network of more than 2,500 offices or agents in all 50 states. It also provides title services abroad in Guam, Mexico, Puerto Rico, the Virgin Islands and England.
Three months ended March 31: 1987 1986 Revenue $ 89,891,000 $ 65,435,000 Net Income $ 11,846,000 $ 1,313,000 Net income per share $ 4.27 $ .52 Average shares outstanding 2,773,000 2,545,000