EXHIBIT 99 [The First American Financial Corporation Logo] The First American Financial Corporation 1 First American Way o Santa Ana, California o (714) 800-3000 o (800) 854-3643 Contact: Tom Klemens NEWS FOR IMMEDIATE RELEASE Executive Vice President & Chief Financial Officer (714) 800-4402 FIRST AMERICAN FINANCIAL REPORTS OPERATING RESULTS FOR THE FOURTH QUARTER AND FULL YEAR 1999 SANTA ANA, Calif., - Feb. 16, 2000 - The First American Financial Corporation (NYSE: FAF), the leading provider of business information and related products and services, announced today operating results for the fourth quarter and 12 months ended Dec. 31, 1999. Losses for the fourth quarter of 1999 were $2.2 million, or 3 cents per diluted share. These results include the effects of a previously announced revenue recognition accounting change for the company's tax service contracts, which became effective Jan. 1, 1999. This accounting change resulted in a decrease of $2.9 million on an after-tax basis, or 4 cents per diluted share. Thus, the company would have reported earnings for the fourth quarter of 1999 of $692,000, or 1 cent per diluted share, under the former revenue recognition policy. These results compare with record-setting fourth quarter 1998 net income of $53.9 million, or 82 cents per diluted share. Revenues for the fourth quarter of 1999 were $700.4 million, a decrease of 14 percent when compared with record revenues of $814.2 million reported for the same period last year. Had it not been for the tax service accounting change, the company would have reported additional revenues for the fourth quarter of 1999 of $6.1 million. The company's full-year 1999 operating earnings were $88.6 million, or $1.34 per diluted share. These results include the effects of the accounting change mentioned above which resulted in a decrease of $10.9 million on an after-tax basis, or 16 cents per diluted share. Thus, earnings for the 12 months ended Dec. 31, 1999, would have been $99.5 million, or $1.50 per diluted share, under the former revenue recognition policy. These results compare with the record-breaking 1998 results of $181.7 million, or $2.89 per diluted share. Revenues in 1999 totaled $2.99 billion, an increase of 3 percent when compared with last year's revenues of $2.91 billion. (1998 results exclude an investment gain of $32.4 million, $19.8 million on an after-tax basis, or 32 cents per diluted share, relating to the company's joint venture with Experian.) Had it not been for the tax service accounting change, the company would have reported additional revenues for the 12 months ended Dec. 31, 1999, of $22.7 million. Results for 1998 have been restated to reflect the current year acquisition accounted for as a pooling of interests. Full-year and quarterly 1999 results have been restated to include the new transition rules for the tax service contracts which were finalized by the Securities and Exchange Commission in December 1999. "The last half of 1999 was marked by higher mortgage interest rates which resulted in lower mortgage transaction activity, especially lower mortgage refinance business," stated Parker S. Kennedy, president of First American Financial. "Company-wide refinance transactions declined approximately 60 percent during the fourth quarter of this year versus the fourth quarter of 1998. This decline significantly reduced revenue in our direct title operations and our real estate information services segment. This, coupled with the fourth quarter seasonal slowdown in residential resale activity nationwide, has caused a deep reduction in our inventory of open orders going into the first quarter of 2000. While we have been diligent in reducing staff levels and expenses and adjusting our infrastructure to match the decreasing order volumes, we anticipate that the drop in business volume will result in reporting an operating loss in the first quarter of 2000." Kennedy added, "We continue to enhance our technological capabilities and e-commerce initiatives and are extremely proud of our recent number-two ranking on this year's PC Week Financial Services FAST@TRACK 100 list. Our focus remains on productivity gains via technology, market share gains by cross-selling our multiple mortgage products and services and expansion of our consumer information services segment which will provide noncyclical steady growth for the future." The company also reported that in connection with its stock repurchase program, which was announced on Dec. 10, 1999, to date 1,115,900 shares have been repurchased at an average market price of $12.28 per share. The First American Financial Corporation, based in Santa Ana, Calif., is the nation's leading provider of business information and related products and services. The corporation's three primary business segments include: title insurance and services; real estate information and services, which includes mortgage information services and database information and services; and consumer information and services, which provides home warranties; automotive, subprime and direct-to-consumer credit reporting; property and casualty insurance; property and automotive insurance tracking services; resident screening; pre-employment screening; lender-placed flood and hazard insurance; investment advisory; and trust and banking services. Information about the company and an archive of its press releases can be found on the Internet at www.firstam.com. Any statements in this document that look forward in time involve risks and uncertainties, including but not limited to the following: the effect of interest rate fluctuations; changes in the performance of the real estate markets; the effect of changing economic conditions; general volatility in the capital markets; the demand for and the acceptance of the company's products; changes in applicable government regulations; continued consolidation among the company's significant customers; consolidation among significant competitors: the impact of the legal proceedings commenced by the California attorney general and related litigation; the continued ability to identify businesses to be acquired; and changes in the company's ability to integrate businesses which it acquires. The company's actual results, performance or achievement could differ materially from those expressed in, or implied by, any forward-looking statements, and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what impact they will have on the results of operations or financial condition of the company. Quarter ended Year ended December 31, December 31, 1999 1998 1999 1998 Revenues $700,393,000 $814,216,000 $2,988,169,000 $2,943,880,000 Income before income taxes, minority interests and cumulative effect of a change in accounting principle $ 3,436,000 $ 95,887,000 $ 169,972,000 $ 365,051,000 Income taxes $ 4,834,000 $ 33,112,000 $ 62,300,000 $ 128,512,000 Minority interests $ 846,000 $ 8,849,000 $ 19,029,000 $ 35,012,000 Net income (loss) before cumulative effect of a change in accounting principle $ (2,244,000) $ 53,926,000 $ 88,643,000 $ 201,527,000 Cumulative effect of a change in accounting for tax service contracts, net of income taxes and minority interests -- -- $ (55,640,000) -- Net income (loss) $ (2,244,000) $ 53,926,000 $ 33,003,000 $ 201,527,000 Per share amounts: Basic: Income (loss) before cumulative effect of a change in accounting for tax service contracts $ (0.03) $ 0.86 $ 1.37 $ 3.35 Cumulative effect of a change in accounting for tax service contracts -- -- $ (0.86) -- Net income (loss) $ (0.03) $ 0.86 $ 0.51 $ 3.35 Diluted: Income (loss) before cumulative effect of a change in accounting for tax service contracts $ (0.03) $ 0.82 $ 1.34 $ 3.21 Cumulative effect of a change in accounting for tax service contracts -- -- $ (0.84) -- Net income (loss) $ (0.03) $ 0.82 $ 0.50 $ 3.21 Average shares outstanding: Basic 65,210,000 62,692,000 64,669,000 60,194,000 Diluted 66,357,000 65,578,000 66,351,000 62,720,000 SELECTED FINANCIAL DATA For the Three Months Ended For the Twelve Months Ended December, 3l December 3l 1999 1998 1999 1998 RESULTS OF OPERATIONS Revenues Operating revenues $689,670,000 $801,457,000 $2,936,196,000 $2,867,107,000 Investment and other income 10,723,000 12,759,000 51,973,000 76,773,000 700,393,000 814,216,000 2,988,169,000 2,943,880,000 Expenses Salaries and other personnel costs 254,948,000 263,450,000 1,034,772,000 945,513,000 Premiums retained by agents 202,290,000 220,416,000 871,036,000 773,030,000 Other operating expenses 176,256,000 175,356,000 678,856,000 633,417,000 Provision for title losses and other claims 30,669,000 30,246,000 116,218,000 124,178,000 Depreciation and amortization 21,457,000 17,988,000 77,031,000 62,263,000 Premium taxes 5,772,000 6,005,000 22,897,000 21,335,000 Interest 5,565,000 4,868,000 17,387,000 19,093,000 696,957,000 718,329,000 2,818,197,000 2,578,829,000 Income before income taxes, minority interests and cumulative effect of a change in accounting principle $ 3,436,000 $ 95,887,000 $ 169,972,000 $ 365,051,000 OPERATING REVENUES Title Insurance: Direct operations $253,493,000 $311,178,000 $1,067,133,000 $1,097,989,000 Agency operations 255,156,000 275,190,000 1,086,746,000 965,228,000 508,649,000 586,368,000 2,153,879,000 2,063,217,000 Real Estate Information 123,556,000 171,451,000 574,784,000 630,510,000 Consumer Information 57,465,000 43,638,000 207,533,000 173,380,000 Total operating revenues $689,670,000 $801,457,000 $2,936,196,000 $2,867,107,000 INCOME BEFORE INCOME TAXES, MINORITY INTERESTS AND CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE Title Insurance $ 12,555,000 $ 73,547,000 $ 128,738,000 $ 227,906,000 Real Estate Information (2,224,000) 23,438,000 54,914,000 110,069,000 Consumer Information 10,026,000 6,977,000 38,080,000 28,455,000 20,357,000 103,962,000 221,732,000 366,430,000 Corporate expenses 16,921,000 8,075,000 51,760,000 1,379,000 Income before income taxes, minority interests and cumulative effect of a change in accounting principle $ 3,436,000 $ 95,887,000 $ 169,972,000 $ 365,051,000 TITLE INSURANCE ORDER COUNTS FROM DIRECT OPERATIONS Title orders opened 264,700 410,000 1,334,100 1,585,400 Title orders closed 229,100 336,700 1,119,900 1,210,200