First American Financial 2Q profit, revenue down 4%
Title insurance and settlement services provider First American Financial Corp. (FAF) posted a second-quarter profit of $32.3 million, or 30 cents per share, on revenue of $927.3 million. Income for the three months ended June 30 fell about 4% from $33.8 million, or 32 cents per share, a year earlier, when revenue was $969.9 million. Santa Ana, Calif.-based First American executed an expense reduction program in the quarter that is expected to yield $40 million in annual savings. The firm cut costs after studying current conditions in the mortgage and real estate markets. In its title insurance and services division, revenue fell 5% from last year to $857.3 million on a decline in direct and agent title premiums, as well as lower investment gains. Revenue from direct premiums and escrow fees fell 8% from last year as the company experienced an 18% drop in direct title orders. The average revenue per title order fell 12% to $1,548 in the second quarter. “We will continue to focus on operational efficiency and on maintaining a conservative balance sheet while we pursue opportunities for organic growth and strategic investment in our core business," First American CEO Dennis Gilmore said. Write to Kerri Panchuk.