First American Financial Corp., parent of First...

First American Financial Corp., parent of First American Title Insurance Co. in Santa Ana, posted net income of $12.3 million last year, a 62% drop from $32.4 million in earnings the previous year. Revenue rose 1% to $643.9 million last year from $636.8 million the previous year. For the fourth quarter, the company’s net income was $3.4 million, a 13% decline from $3.9 million in earnings for the final quarter of 1987. Revenue rose 17% to $184.9 million last year from $157.9 million the previous year. D.P. Kennedy, president, blamed the decline in earnings on lower revenue from a sluggish first quarter, on increased provisions for title losses and claims, and on fraudulent activity by three East Coast agents. The fraud, which was previously announced, cost the company $8.4 million in the first two quarters. In addition, the profit in 1987 was enhanced by a one-time, $9-million tax benefit. First American Title is one of the nation’s largest title insurance companies.