First American Financial Posts Records

First American Financial Corp. posted record operating income and revenues for the first quarter and then dramatically increased its net earnings with a one-time, $9-million tax benefit.

The 98-year-old Santa Ana-based company, whose principal subsidiary is First American Title Insurance Co., reported first quarter net income of $11.8 million. Excluding the tax benefit, the company earned $2.8 million on operations--more than double the $1.3 million net earnings reported in the first quarter last year.

Total revenues for the quarter rose 37.4% to $89.9 million from $65.4 million in last year’s first quarter.

Donald P. Kennedy, First American’s president, attributed the company’s 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.”

The one-time tax benefit resulted from a different accounting treatment of reserves mandated by the new federal income tax law.