First American Financial revenue falls to $1.2 billion
Refinance activity, closed title orders drop to lowest year level
First American Financial Corporation’s (FAF) total revenue for the fourth quarter of 2013 hit $1.2 billion, a decline of 4% compared to a year prior.
The Santa Ana, Calif.-based company posted a net income in the fourth quarter of $51.6 million, or 48 cents per share, compared to a net income of $93.3 million, or 85 cents per share, last year.
Additionally, total revenues for the full year of 2013 hit $5 billion, an increase of 9% from last year, while net income was $186.4 million, or $1.71 per share, compared with $301.0 million, or $2.77 per share, in 2012.
“In the fourth quarter, we felt the full impact of the drop-off in refinance activity, with closed title orders declining to the lowest level of the year. The effect was offset in part by the growth in our resale and commercial businesses, which drove average revenue per order up 34 percent,” said Dennis Gilmore, CEO at First American Financial Corporation.
“Throughout 2014 we will focus on responding to our customers’ desire for tighter integration between loan origination activities, loan quality verification and title and settlement services,” continued Gilmore.
“As part of this effort, we recently announced our agreement to acquire Interthinx, a leading provider of loan quality analytics, decision support tools and loan review processes for the mortgage industry. This transaction also provides us further opportunity to leverage our extensive data assets and enhances our ability to innovate in response to the increasing demands of the marketplace,” he said.