First American Financial, a Santa Ana-based title...

First American Financial, a Santa Ana-based title insurance firm, reported that net income for the third quarter dropped 41%, to $5.6 million from $9.4 million during the same period in 1986. Revenues increased 2%, to $108 million from $105 million. According to D.P. Kennedy, president, the earnings decline reflects the expense of retaining personnel to close title insurance orders opened earlier, even though increased interest rates have resulted in a decline in new orders. Net income for the first nine months of 1987 was $28.5 million, an increase of 70% from $16.8 million in 1986. The 1987 figure includes a non-recurring income tax benefit of nearly $9 million. Nine-month revenues totaled $312.6 million, a 22% increase from $256.9 million a year earlier. First American sells title insurance through its principal subsidiary, First American Title Insurance Co.