First American 2Q Earnings Fell Nearly 64% YOY
Summary
The Santa Ana, Calif.-based provider of title, settlement, and risk solutions for real estate transactions reported net income in the second quarter was $109 million, or $1.01 per diluted share, up from $98 million, or 88 cents per diluted share, in the previous quarter. “Our second-quarter business results were strong, with our title segment delivering a pretax margin of 13.9%, excluding net investment losses,” First American CEO Ken DeGiorgio said. “Total revenue, excluding net investment losses, was up 1%, as continued strength in the commercial business, growth in investment income, and revenue from recent acquisitions offset the decline in residential refinance and purchase activity.” He said the company is taking steps to shield itself from the ongoing economic uncertainty. “While we continue to effectively manage our cost structure, we also remain steadfastly committed to investing in strategic initiatives that support our company’s growth and operational efficiency, including our digital closing and title automation initiatives, and the expansion and enhancement of the data assets that fuel them.” First American said its personnel costs were $613 million in the second quarter, up 10% from the same quarter of 2021, primarily due to the impact of recent acquisitions. In May, First American completed its acquisition of Mother Lode Holding Co., a California-based provider of title insurance, underwriting, and escrow services for residential and commercial real estate transactions.
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